#USA #earnings report #Jackson #EastGroup Properties #Q2 2025

EastGroup Properties Reports Solid Second Quarter Results

JACKSON, Miss., July 23, 2025 – EastGroup Properties, Inc. (NYSE EGP) has unveiled its financial results for the second quarter of 2025, demonstrating significant growth in the face of economic uncertainty. The company experienced a net income attributable to common stockholders of $1.20 per diluted share for this quarter, up from $1.14 per share in the same period last year. This improvement highlights EastGroup's resilience and effective management strategies amidst challenging market conditions.

Financial Highlights

During the second quarter, the observed funds from operations ("FFO"), excluding gains from involuntary conversion and business interruption claims, stood at $2.21 per diluted share, marking an increase of 7.8% year-over-year. This growth not only reflects the strength of EastGroup's portfolio but also indicates the successful execution of its operational strategies.

The overall operating portfolio reported a leasing rate of 97.1% and an occupancy rate of 96.0% by the end of June 2025. Average occupancy for the quarter was 95.9%, which is slightly lower than the previous year’s rate of 97.0%. Notably, rental rates on new and renewal leases surged by an impressive average of 44.4% on a straight-line basis, showcasing a robust demand for EastGroup's properties.

In terms of property performance, the same property net operating income (NOI), excluding income from lease terminations, reflected a healthy increase of 6.6% on a straight-line basis and 6.4% on a cash basis. These statistics reinforce the ongoing positive trend in the company's revenue-generating capabilities.

Strategic Developments

EastGroup has also embarked on two new development projects located in Nashville and Atlanta, totaling 469,000 square feet with projected costs of approximately $70 million. These projects signify EastGroup's commitment to expanding its portfolio and enhancing its footprint in high-growth markets. Additionally, the company successfully transferred four development projects, encompassing 785,000 square feet, into its operating portfolio.

Following the quarter-end, EastGroup made strategic acquisitions, including two operating properties in Raleigh totaling 318,000 square feet, for around $61 million, further diversifying its portfolio and strengthening its presence in key markets.

CEO Marshall Loeb expressed pride in the quarterly results, especially considering the existing economic uncertainties affecting the U.S. market. He noted, “The results are a strong testament to our team, our properties, and our markets, in that order. While we remain cautious about the broader economic environment, our history and planning have prepared us to navigate these waters effectively.”

Outlook for the Future

Looking ahead, EastGroup anticipates that its earnings per share (EPS) for 2025 will be within the range of $4.76 to $4.90, while FFO per share is projected to be between $8.89 and $9.03. These outlook figures are underpinned by the company's robust operating performance and strategic investments.

The strong financial position of EastGroup Properties is evident, with a debt-to-total market capitalization ratio of only 14.2%, illustrating the company’s ability to leverage its assets effectively while maintaining a strong balance sheet.

In summary, EastGroup Properties’ second quarter results illustrate a resilient and strategically sound organization capable of thriving in competitive and uncertain market conditions. As the company continues to grow and adapt, it maintains its focus on providing high-quality distribution spaces in the high-growth submarkets across the U.S.

Conclusion

As EastGroup Properties moves forward, its commitment to excellence and strategic growth will serve as key drivers of success in the real estate sector. Investors and stakeholders alike will be keen to monitor the company’s progress as it navigates the complexities of a shifting economic landscape.