EastGroup Properties (EGP) Q4 2024 earnings summary

Executive summary

• FFO per share rose 5.9% for Q4 and 7.9% for the year, excluding involuntary conversions, continuing a decade-long trend of year-over-year growth and reflecting strong operational performance.

• Net income attributable to common stockholders was $1.16 per diluted share for Q4 2024 (down from $1.35 in Q4 2023) and $4.66 for 2024 (up from $4.42 in 2023), with prior year periods benefiting from higher gains on real estate sales.

• Year-end leasing reached 97.1% with occupancy at 96.1%; average quarterly occupancy was 95.8%, and average occupancy for 2024 was 96.8%.

• Record square footage leased in the operating portfolio in Q4, with broad-based uptick in prospect activity across markets.

• Portfolio diversification improved, with top 10 tenants now representing 7.2% of rents, down 70 basis points from prior year.

Financial highlights

• FFO per share for Q4 was $2.15, up from $2.03 in Q4 2023; full year FFO per diluted share was $8.35, up from $7.79 in 2023.

• Same-Store NOI increased 3.4% for Q4 and 5.6% for the year, despite occupancy declines; Q4 PNOI was $120.9M, up 9.9% year-over-year; full year PNOI was $465.0M, up 12.5%.

• Quarterly leasing spreads were 47% GAAP and 29% cash; year-end spreads were 53% GAAP and 36% cash.

• Q4 2024 revenues were $164.0M, up from $149.1M in Q4 2023; full year revenues were $640.2M, up from $570.6M in 2023.

• Q4 2024 interest expense was $9.2M, down from $11.1M in Q4 2023; full year interest expense was $39.0M, down from $48.0M.

Outlook and guidance

• 2025 FFO guidance: $2.05–$2.13 per share for Q1 and $8.80–$9.00 for the year, midpoints up 5.6% and 7.1% year-over-year, excluding involuntary conversion gains.

• Average occupancy for 2025 projected at 95.5%–96.5%.

• Cash Same-Property NOI midpoint of 5.9% for 2025; growth expected at 5.4%–6.4%.

• $300 million in new development starts and $150 million in strategic acquisitions planned for 2025; dispositions expected at $15M.

• Capital proceeds of $450 million expected from equity issuance and revolver use.