EastGroup Properties (EGP) Q2 2026 earnings summary

Executive summary

• Achieved record leasing activity in Q2 2026, with 3.9 million sq ft signed, strong development leasing momentum, and a portfolio of 65.8 million sq ft as of June 30, 2026, reflecting robust demand and portfolio quality.

• Net income attributable to common stockholders rose 38.7% year-over-year to $75.5M for Q2 2026, with diluted EPS increasing to $1.40, driven by gains on real estate sales and higher property net operating income.

• FFO per share reached $2.36 for Q2 2026, up 6.8% year-over-year and above guidance midpoint; year-to-date FFO per share up 7.6%.

• Portfolio occupancy averaged 95.6%, with 96.8% leased and same-store occupancy at 96.9%; leasing spreads were 34% GAAP and 19% cash.

• Rent roll diversification improved, with top 10 tenants representing 6.6% of rents.

Financial highlights

• Q2 FFO per share of $2.36, a 6.8% increase year-over-year; same property NOI rose 8.3% (cash basis) for the quarter.

• Total revenues for Q2 2026 were $193.3M, up from $177.3M in Q2 2025; PNOI for Q2 was $142.9M, up 10.6% year-over-year.

• Dividend of $1.55 per share declared in Q2 2026, with a payout ratio of 66% and 186 consecutive quarterly dividends.

• Debt to total market capitalization at 12.9%; interest and fixed charge coverage at 15.1x; debt to EBITDA at 3x.

• No balance drawn on unsecured bank credit facility; $675 million available.

Outlook and guidance

• Q3 FFO guidance set at $2.37–$2.45 per share; full-year 2026 FFO midpoint raised to $9.59, up 6.8% over 2025.

• 2026 EPS projected at $5.83–$5.97; same property NOI growth guidance midpoint increased to 6.8% for 2026.

• Projected same property occupancy for 2026 at 96.7%, 30 bps above prior guidance.

• Development starts guidance raised by $60 million to $325 million; acquisitions guidance increased by $55 million to $215 million.

• Development pipeline includes 17 projects in 12 markets, totaling 3.2 million sq ft and $487 million in projected costs.