EastGroup Properties Reports Impressive Fourth Quarter and Year-End 2025 Results
EastGroup Properties, Inc. has recently announced its financial results for the fourth quarter and full year of 2025, showcasing exceptional performance across several key metrics. For the three months ending December 31, 2025, the company reported a net income attributable to common stockholders of $1.27 per diluted share. This marks a notable increase from $1.16 per diluted share in the same period of the previous year. Such growth is attributed to a rise in property net operating income (PNOI), which increased to $138.6 million, compared to $120.9 million in Q4 2024.
Funds from operations (FFO) have also shown a positive trajectory, with an increase of about 8.8%, resulting in $2.34 per diluted share for the fourth quarter. On an annual basis, FFO, excluding gains on involuntary conversions and business interruption claims, reached $8.95 per diluted share, representing a 7.7% growth compared to 2024. The company’s same property net operating income saw an increase of 8.5% on a straight-line basis, showcasing the strength of EastGroup's existing property portfolio.
Furthermore, the operating portfolio's leasing rates remained impressive, with a leasing level of 97.0% as of December 31, 2025. The rental rates for new and renewal leases increased significantly, rising by an average of 34.6% on a straight-line basis, demonstrating a robust rental market and the strength of EastGroup's property offerings.
In terms of growth, EastGroup Properties continues to expand its footprint. The company successfully acquired an operating property in Las Vegas and a considerable amount of development land in Dallas and San Antonio for around $56 million. Notably, construction has commenced on three major development projects located in Atlanta and Orlando, totaling 547,000 square feet with projected costs of approximately $73 million. The commitment to growth did not stop there; EastGroup signed 11 leases on new development properties totaling around 662,000 square feet.
EastGroup’s net income for the year 2025 reached $4.87 per diluted share, compared to $4.66 in 2024. This increase in earnings reflects both improved PNOI, which rose to $528.3 million from $465.0 million in 2024, and a healthy balance between occupancy rates and new property acquisitions.
Additionally, the company demonstrated solid operational management with an average occupancy rate of 95.9% for the year. Despite the increased operational costs, particularly in depreciation and amortization, EastGroup has efficiently managed its expenses to maintain profitability. The company’s total comprehensive income for the year stood at $243.8 million.
An inspiring change in executive leadership positions was announced alongside these impressive results. Reid Dunbar was appointed as the new President of EastGroup, taking over responsibilities to foster strategic growth. Other notable promotions within the executive team were also introduced, emphasizing the firm’s focus on leveraging experienced leadership for future expansion initiatives.
Looking ahead, EastGroup Properties has set optimistic financial targets. For 2026, they estimate earnings per share to range between $4.93 to $5.13 and have projected the FFO per share to be in the range of $9.40 to $9.60. These figures, if met, would indicate a continued growth trajectory and strong market positioning for EastGroup as it navigates through evolving market trends and demands.
In conclusion, EastGroup Properties, Inc. has established a solid foundation for ongoing growth. Their strategic acquisitions, expansion plans, and enhanced operational efficiency have positioned them well in a competitive landscape. Stakeholders can look forward to the next conference call scheduled for February 5, 2026, to gain further insights into the company’s strategic outlook and operational developments for the coming year.
Funds from operations (FFO) have also shown a positive trajectory, with an increase of about 8.8%, resulting in $2.34 per diluted share for the fourth quarter. On an annual basis, FFO, excluding gains on involuntary conversions and business interruption claims, reached $8.95 per diluted share, representing a 7.7% growth compared to 2024. The company’s same property net operating income saw an increase of 8.5% on a straight-line basis, showcasing the strength of EastGroup's existing property portfolio.
Furthermore, the operating portfolio's leasing rates remained impressive, with a leasing level of 97.0% as of December 31, 2025. The rental rates for new and renewal leases increased significantly, rising by an average of 34.6% on a straight-line basis, demonstrating a robust rental market and the strength of EastGroup's property offerings.
In terms of growth, EastGroup Properties continues to expand its footprint. The company successfully acquired an operating property in Las Vegas and a considerable amount of development land in Dallas and San Antonio for around $56 million. Notably, construction has commenced on three major development projects located in Atlanta and Orlando, totaling 547,000 square feet with projected costs of approximately $73 million. The commitment to growth did not stop there; EastGroup signed 11 leases on new development properties totaling around 662,000 square feet.
EastGroup’s net income for the year 2025 reached $4.87 per diluted share, compared to $4.66 in 2024. This increase in earnings reflects both improved PNOI, which rose to $528.3 million from $465.0 million in 2024, and a healthy balance between occupancy rates and new property acquisitions.
Additionally, the company demonstrated solid operational management with an average occupancy rate of 95.9% for the year. Despite the increased operational costs, particularly in depreciation and amortization, EastGroup has efficiently managed its expenses to maintain profitability. The company’s total comprehensive income for the year stood at $243.8 million.
An inspiring change in executive leadership positions was announced alongside these impressive results. Reid Dunbar was appointed as the new President of EastGroup, taking over responsibilities to foster strategic growth. Other notable promotions within the executive team were also introduced, emphasizing the firm’s focus on leveraging experienced leadership for future expansion initiatives.
Looking ahead, EastGroup Properties has set optimistic financial targets. For 2026, they estimate earnings per share to range between $4.93 to $5.13 and have projected the FFO per share to be in the range of $9.40 to $9.60. These figures, if met, would indicate a continued growth trajectory and strong market positioning for EastGroup as it navigates through evolving market trends and demands.
In conclusion, EastGroup Properties, Inc. has established a solid foundation for ongoing growth. Their strategic acquisitions, expansion plans, and enhanced operational efficiency have positioned them well in a competitive landscape. Stakeholders can look forward to the next conference call scheduled for February 5, 2026, to gain further insights into the company’s strategic outlook and operational developments for the coming year.
Topics Business Technology）
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