EastGroup Properties Reports Strong Third Quarter 2025 Performance with Solid Increases in Earnings and Operational Metrics

EastGroup Properties Reports Strong Third Quarter 2025 Performance

EastGroup Properties, Inc. (NYSE: EGP) has unveiled its financial results for the third quarter of 2025, marking a notable improvement over the same period last year. Under the leadership of CEO Marshall Loeb, the company has demonstrated resilience amidst market fluctuactions, reporting a net income attributable to common stockholders of $1.26 per diluted share, compared to $1.13 per diluted share in the third quarter of 2024.

Key Financial Performance

The company achieved a Funds from Operations (FFO) of $2.27 per diluted share for the quarter, reflecting a solid increase of 6.6% year-over-year, while year-to-date FFO rose by 7.3%. The same property net operating income also showed strength, increasing 7.7% on a straight-line basis and 6.9% on a cash basis from the previous year. The overall operating portfolio status at the end of September 2025 highlighted a leasing rate of 96.7% and an occupancy of 95.9%.

Rental Rates and Lease Dynamics

EastGroup witnessed dramatic increases in rental rates, averaging an increase of 35.9% on new and renewal leases signed in the quarter, significantly enhancing the company’s revenue potential. The continuous demand for prime distribution space, particularly in high-growth regions, has contributed to this positive trend.

Acquisitions and Developments

During this quarter, EastGroup acquired three operational properties—two located in Raleigh and one in Dallas—adding a new total of 638,000 square feet to its portfolio for approximately $122 million. Additionally, they initiated construction on a new development project in Dallas, expecting to provide 161,000 square feet of distribution space for an estimated cost of $27 million.

The company’s strategies include transferring four development projects, totaling 864,000 square feet, into the operating portfolio. These additions align with their long-term growth objectives targeting high-demand submarkets across the U.S.

Dividend Increase and Shareholder Value

Reflecting its strong performance and commitment to shareholder returns, EastGroup declared its 183rd consecutive quarterly cash dividend, increasing it to $1.55 per share—a significant rise of 10.7% from the previous quarter. This increment not only underscores the robust financial health of the company but also its long-standing commitment to enhancing shareholder value, having increased dividends for 33 consecutive years.

Financial Stability and Future Outlook

Looking forward, EastGroup anticipates an EPS for the full year 2025 in the range of $4.85 to $4.89 and a projected FFO between $8.94 and $8.98 per share, indicating sustained growth. The company's strong balance sheet, characterized by a low debt-to-total market capitalization ratio of 14.1%, equips it with favorable flexibility to navigate the evolving market.

In summary, EastGroup Properties showcased an impressive operational and financial quarter, marking a positive trajectory with a strong focus on strategic acquisitions and developments in the industrial real estate market. CEO Marshall Loeb's statement reflects optimism, citing clear signs of market demand and limited supply, positioning EastGroup favorably for future growth.