EastGroup Properties Reports Robust Portfolio Activity and Upcoming Conference Participation

EastGroup Properties Reports Business Developments

EastGroup Properties, Inc. (NYSE: EGP) has made notable strides in its operations and developments as of December 8, 2025. The company’s portfolio currently boasts a leasing success rate of 97% and an occupancy rate of 96.2%. This performance reflects a robust demand in the industrial market, paving the way for future business prospects.

Recent Business Activity

In the fourth quarter of 2025, EastGroup reported that it has signed a total of 1,057,000 square feet in new and renewal leases. Remarkably, these leases come with an average rental rate increase of 31.1% on a straight-line basis and 17.1% on a cash basis, showing an impressive surge in market value.

Additionally, the company expanded its footprint with development leases across six different markets, totaling approximately 454,000 square feet. This is a significant increase compared to the 115,000 square feet leased in the previous quarter, indicating a strategic move to capitalize on increasing demand.

Another noteworthy development is EastGroup's initiation of a project in Orlando, where a building measuring about 113,000 square feet is set to commence construction. The project is fully pre-leased, with an estimated total expenditure of about $16 million.

Executive Commentary

Marshall Loeb, CEO of EastGroup, expressed satisfaction with the company's progress in the current quarter, which aligns with or slightly exceeds their expectations. He highlights that the industrial market is showing gradual improvements, contributing to the company's optimistic outlook. The strategic placement of debt this quarter is anticipated to further bolster growth initiatives, including new premium investments planned in Las Vegas and Jacksonville.

Financial Insights

In November, EastGroup successfully secured $250 million in senior unsecured term loans divided into two tranches, featuring an average fixed interest rate of 4.13%. The breakdown of these loans includes a $100 million loan with a maturity date in April 2030 and a $150 million loan maturing in March 2031, emphasizing the company’s long-term financial strategy.

As part of their growth strategy, the company plans to close deals on two recently developed properties within mid-December, which will add a total of three industrial buildings, all fully leased. One property located in Jacksonville contains two buildings comprising 177,000 square feet, while the other situated in North Las Vegas includes a single building of 101,000 square feet.

Moreover, EastGroup's property acquisitions in October included the procurement of 16 acres in Dallas for $10 million, designed for future developments totaling approximately 180,000 square feet, and another acquisition of 34 acres for $15 million to allow for five future buildings totaling around 385,000 square feet.

Anticipated Conference Participation

Management is set to participate in the Nareit's REITworld 2025 Annual Conference held in Dallas from December 9-10, 2025. During this conference, executives will engage in discussions addressing transaction activity, market trends, and financial conditions associated with the company's performance. Those interested in the conference can register through the Nareit's website, and presentation materials will be available on EastGroup's Investor Relations webpage.

Company Overview

EastGroup Properties operates as a self-managed equity real estate investment trust (REIT), focusing primarily on the development and operation of industrial properties situated within high-growth markets, mainly across Texas, Florida, California, Arizona, and North Carolina. The firm targets significant distribution spaces tailored for location-sensitive customers, supporting approximately 64.5 million square feet in its portfolio, which encompasses a blend of development projects and completed acquisitions.

In summary, EastGroup's recent leasing successes coupled with strategic expansions affirm its commitment to enhancing shareholder value through high-quality industrial properties, thus positioning itself favorably within a competitive market landscape.