EastGroup Properties (EGP) Q1 2025 earnings summary

Executive summary

• FFO per share excluding involuntary conversions was $2.12, up 7.1% year-over-year, continuing a decade-long trend of annual growth.

• Operating portfolio was 97.3% leased and 96.5% occupied at quarter-end, with average quarterly occupancy at 95.8%, down from 97.5% in Q1 2024.

• Rental rates on new and renewal leases increased an average of 46.9% on a straight-line basis; 30% more square feet of leases signed compared to Q1 2024.

• Owned 536 industrial properties totaling 63.1 million sq. ft. in 12 states as of March 31, 2025, focusing on high-growth, supply-constrained markets.

• Management is focused on maintaining occupancy and balance sheet flexibility amid tariff-related and macroeconomic uncertainty.

Financial highlights

• FFO per diluted share was $2.15, up 8.6% from $1.98 year-over-year; FFO excluding involuntary conversion and business interruption claims was $2.12, up 7.1%.

• Net income attributable to common stockholders was $59.4M ($1.14 per diluted share), down from $58.6M ($1.22) year-over-year, primarily due to fewer asset sales.

• Property Net Operating Income (PNOI) rose 13.3% to $126.2M; same property PNOI excluding lease terminations increased 5.3%.

• Debt-to-total market capitalization was 13.7%; debt-to-EBITDA was 3x; interest and fixed charge coverage was 15x.

• Issued common shares for $6M and settled forward share agreements for $67M, with $45M settled after quarter-end.

Outlook and guidance

• 2025 FFO per share guidance is $8.84–$9.04, with midpoint implying a 7.1% increase over 2024.

• Same property NOI growth (cash basis) projected at 5.4%–6.4% for 2025; average month-end occupancy expected at 95.5%–96.5%.

• Development starts projected at 1.8M–2.5M sq ft with $250M–$300M investment.

• Operating property acquisitions and dispositions projected at $150M and $20M, respectively.

• Management expects current cash, operating cash flows, and credit facilities to be adequate for all short- and long-term needs.