Net Income Attributable to Common Stockholders of $1.26 Per Diluted Share for Third Quarter 2025 Compared to $1.13 Per Diluted Share for Third Quarter 2024
Funds from Operations ("FFO") of $2.27 Per Diluted Share for Third Quarter 2025 Compared to $2.13 Per Diluted Share for Third Quarter 2024, an Increase of 6.6%; Increase of 7.3% Year-to-Date
Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 7.7% on a Straight-Line Basis and 6.9% on a Cash Basis for Third Quarter 2025 Compared to the Same Period in 2024
Operating Portfolio was 96.7% Leased and 95.9% Occupied as of September 30, 2025; Average Occupancy of Operating Portfolio was 95.7% for Third Quarter 2025 as Compared to 96.7% for Third Quarter 2024
Rental Rates on New and Renewal Leases Increased an Average of 35.9% on a Straight-Line Basis
Acquired Three Operating Properties, Two in Raleigh and One in Dallas, Containing 638,000 Square Feet for Approximately $122 Million
Started Construction of a Development Project Located in Dallas Containing 161,000 Square Feet with Projected Total Cost of Approximately $27 Million
Transferred Four Development Projects Containing 864,000 Square Feet to the Operating Portfolio
Declared 183rd Consecutive Quarterly Cash Dividend: Increased the Dividend by $0.15 Per Share (10.7%) to $1.55 Per Share
JACKSON, Miss., Oct. 23, 2025 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE:EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and nine months ended September 30, 2025.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "I'm proud of the quarterly results the team created this quarter as well as year-to-date. These results are a testament to our team, our properties and our markets, in that order. We're exceeding our initial guidance in spite of indecisiveness by development prospects throughout much of the year. And now we're in the early stages of seeing those prospect concerns thawing. With limited supply and ever growing demand, we are excited about our pathway. Looking beyond this environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
EARNINGS PER SHARE
Three Months Ended September 30, 2025On a diluted per share basis, earnings per common share ("EPS") were $1.26 for the three months ended September 30, 2025, compared to $1.13 for the same period of 2024. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $134,374,000 ($2.52 per diluted share) for the three months ended September 30, 2025, as compared to $118,990,000 ($2.43 per diluted share) for the same period of 2024, which was an increase of $0.09 per diluted share.
Interest expense was $7,685,000 ($0.14 per diluted share) for the three months ended September 30, 2025, as compared to $9,871,000 ($0.20 per diluted share) for the same period of 2024, which was a decrease of $0.06 per diluted share.
The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $54,131,000 ($1.02 per diluted share) for the three months ended September 30, 2025, as compared to $48,917,000 ($1.00 per diluted share) for the same period of 2024, which was an an increase of $0.02 per diluted share.
Weighted average shares outstanding increased by 4,265,000 on a diluted basis for the three months ended September 30, 2025, as compared to the same period of 2024.
Nine Months Ended September 30, 2025Diluted EPS for the nine months ended September 30, 2025 was $3.60 compared to $3.49 for the same period of 2024. The increase in EPS was primarily due to the following:
PNOI was $389,736,000 ($7.41 per diluted share) for the nine months ended September 30, 2025, as compared to $344,128,000 ($7.10 per diluted share) for the same period of 2024, which was an increase of $0.31 per diluted share.
Interest expense was $23,400,000 ($0.44 per diluted share) for the nine months ended September 30, 2025, as compared to $29,764,000 ($0.61 per diluted share) for the same period of 2024, which was a decrease of $0.17 per diluted share.
The increase in EPS was partially offset by the following:
There were no gains on sales of real estate investments recognized during the nine months ended September 30, 2025. EastGroup recognized gains on sales of real estate investments of $8,751,000 ($0.18 per share) during the nine months ended September 30, 2024.
Depreciation and amortization expense was $159,663,000 ($3.03 per diluted share) for the nine months ended September 30, 2025, as compared to $139,749,000 ($2.89 per diluted share) for the same period of 2024, which was an increase of $0.14 per diluted share.
Weighted average shares outstanding increased by 4,189,000 on a diluted basis for the nine months ended September 30, 2025, as compared to the same period of 2024.
FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended September 30, 2025For the three months ended September 30, 2025, funds from operations attributable to common stockholders ("FFO") were $2.27 per diluted share compared to $2.13 per diluted share during the same period of 2024, an increase of 6.6%.
PNOI increased by $15,384,000, or 12.9%, during the three months ended September 30, 2025, compared to the same period of 2024. PNOI increased $6,911,000 due to same property operations (based on the same property pool), $6,106,000 due to 2024 and 2025 acquisitions, and $2,613,000 due to newly developed and value-add properties, and decreased $51,000 due to operating properties sold in 2024 and 2025.
Same PNOI, Excluding Income from Lease Terminations, increased 7.7% on a straight-line basis for the three months ended September 30, 2025, compared to the same period of 2024; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 6.9%.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended September 30, 2025 (representing 4.0% of our total square footage) increased an average of 35.9%.
Nine Months Ended September 30, 2025FFO for the nine months ended September 30, 2025, was $6.64 per diluted share compared to $6.19 per diluted share during the same period of 2024, an increase of 7.3%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $6.61 per diluted share for the nine months ended September 30, 2025, compared to $6.16 per diluted share for the same period of 2024, an increase of 7.3%.
PNOI increased by $45,608,000, or 13.3%, during the nine months ended September 30, 2025, compared to the same period of 2024. PNOI increased $20,371,000 due to same property operations (based on the same property pool), $18,055,000 due to 2024 and 2025 acquisitions, and $8,277,000 due to newly developed and value-add properties, and decreased $289,000 due to operating properties sold in 2024 and 2025.
Same PNOI, Excluding Income from Lease Terminations, increased 6.5% on a straight-line basis for the nine months ended September 30, 2025, compared to the same period of 2024; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 6.2%.
On a straight-line basis, rental rates on new and renewal leases signed during the nine months ended September 30, 2025 (representing 11.4% of our total square footage) increased an average of 42.1%.
The same property pool for the nine months ended September 30, 2025 includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through September 30, 2025; this pool is comprised of properties containing 54,721,000 square feet.
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS
As previously announced, EastGroup acquired two business distribution buildings in the Raleigh-Durham market located near Research Triangle Park. LifeScience Logistics Center, a 251,000 square foot industrial property which was constructed in 2024, was acquired for $47,150,000. The Company also acquired Lumley Logistics Center for $14,174,000, which contains 67,000 square feet and was constructed in 2023. Both properties are 100% leased, and these acquisitions expand the Company's portfolio in the Raleigh-Durham market to 592,000 square feet, which is 100% leased.
In September 2025, EastGroup acquired McKinney Airport Trade Center, three business distribution buildings totaling 320,000 square feet, for $60,641,000. These buildings, which were developed in 2023, are located in the Northeast Dallas submarket and are currently 100% leased to six tenants. The Company is also under contract to purchase an adjacent land parcel, which is expected to close in October 2025 and will accommodate the future development of five buildings totaling approximately 385,000 square feet.
Also as previously announced, in July 2025, the Company closed on the acquisition of North Ridge Logistics Center Land, which contains approximately 37 acres of development land in the Orlando market for $8,640,000. This site is expected to accommodate the future development of a building containing approximately 230,000 square feet.
In July 2025, the Company closed on the acquisition of approximately 40 acres of development land in the Northeast submarket of Dallas, known as The Ridge Land, for $24,925,000. This site is projected to accommodate the future development of three buildings containing approximately 440,000 square feet.
Subsequent to September 30, 2025, also in the Northeast submarket of Dallas and near the Frisco Park 121 Land acquired in June 2025, EastGroup closed on the acquisition of approximately 16 acres of development land for approximately $10,200,000. This land, known as Frisco 121 East Land, is expected to accommodate the future development of two buildings containing approximately 180,000 square feet.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the third quarter of 2025, EastGroup began construction of one new development project containing 161,000 square feet located in Dallas, with projected total costs of $27,000,000.
The development projects started during the first nine months of 2025 are detailed in the table below:
Development Projects Started in 2025
Location
Size
AnticipatedConversion Date
Projected TotalCosts
(Square feet)
(In thousands)
Dominguez(1)
Los Angeles, CA
262,000
02/2027
$
9,200
Station 24 1 & 2
Nashville, TN
180,000
04/2027
35,700
Greenway 100 & 200
Atlanta, GA
289,000
06/2027
34,200
McKinney 5 & 6
Dallas, TX
161,000
08/2027
27,000
Total Development Projects Started
892,000
$
106,100
(1) Represents a redevelopment project.
At September 30, 2025, EastGroup's development and value-add program consisted of 15 projects (3,011,000 square feet) in 12 markets. The projects, which were collectively 9% leased as of October 22, 2025, have a projected total cost of $436,100,000, of which $137,546,000 remained to be invested as of September 30, 2025.
During the third quarter of 2025, EastGroup transferred four projects to the operating portfolio (at the earlier of 90% occupancy or one year after completion). The projects, which are located in Miami and Atlanta, contain 864,000 square feet and were collectively 55% leased as of October 22, 2025.
The development projects transferred to the operating portfolio during the first nine months of 2025 are detailed in the table below:
Development and Value-Add PropertiesTransferred to the Operating Portfolio in2025
Location
Size
Conversion Date
Cumulative Cost as of 9/30/25
PercentLeased as of 10/22/25
(Square feet)
(In thousands)
SunCoast 9
Fort Myers, FL
111,000
02/2025
$
15,996
32 %
Northeast Trade Center 1
San Antonio, TX
264,000
03/2025
28,866
100 %
Horizon West 6
Orlando, FL
87,000
04/2025
11,970
100 %
Basswood 3-5
Fort Worth, TX
351,000
05/2025
49,992
70 %
Crossroads 1
Tampa, FL
124,000
05/2025
19,428
100 %
Eisenhauer Point 10-12
San Antonio, TX
223,000
05/2025
28,680
48 %
Braselton 3
Atlanta, GA
115,000
07/2025
14,770
33 %
Gateway South Dade 1 & 2
Miami, FL
169,000
07/2025
34,407
28 %
Riverside 1 & 2
Atlanta, GA
284,000
07/2025
34,088
100 %
Cass White 1 & 2
Atlanta, GA
296,000
09/2025
34,616
37 %
Total Projects Transferred
2,024,000
$
272,813
66 %
Projected Stabilized Yield(1)
7.1 %
(1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.
DIVIDENDS
EastGroup declared a cash dividend of $1.55 per share of common stock in the third quarter of 2025, which represented a 10.7% increase over the previous quarter's dividend. The third quarter dividend, which was paid on October 15, 2025, was the Company's 183rd consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 3.4% based on the closing stock price of $180.67 on October 22, 2025.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.1% at September 30, 2025. The Company's interest and fixed charge coverage ratio was 16.8x and 15.9x for the three and nine months ended September 30, 2025, respectively. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 2.9x and 3.0x for the three and nine months ended September 30, 2025, respectively. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
During the third quarter of 2025, EastGroup settled remaining outstanding forward equity sale agreements that were previously entered into under its continuous common equity offering program by issuing 647,758 shares of common stock in exchange for net proceeds of approximately $117,066,000.
In August 2025, EastGroup repaid $20,000,000 senior unsecured notes at maturity with a fixed interest rate of 3.80%. Subsequent to September 30, 2025, the Company repaid maturing debt totaling $75,000,000 with a weighted average fixed interest rate of 3.98%.
OUTLOOK FOR 2025
We now estimate EPS for 2025 to be in the range of $4.85 to $4.89 and FFO per share attributable to common stockholders for 2025 to be in the range of $8.94 to $8.98. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2025, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2025:
Low Range
High Range
Q4 2025
Y/E 2025
Q4 2025
Y/E 2025
(In thousands, except per share data)
Net income attributable to common stockholders
$
66,611
256,276
68,723
258,388
Depreciation and amortization
55,899
215,651
55,899
215,651
