Net Income Attributable to Common Stockholders of $1.27 Per Diluted Share for Fourth Quarter 2025 Compared to $1.16 Per Diluted Share for Fourth Quarter 2024
Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.34 Per Diluted Share for Fourth Quarter 2025 Compared to $2.15 Per Diluted Share for Fourth Quarter 2024, an Increase of 8.8%
Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 8.5% on a Straight-Line Basis and 8.4% on a Cash Basis for Fourth Quarter 2025 Compared to the Same Period in 2024
Operating Portfolio was 97.0% Leased and 96.5% Occupied as of December 31, 2025; Average Occupancy of Operating Portfolio was 96.2% for Fourth Quarter 2025 as Compared to 95.8% for Fourth Quarter 2024
Rental Rates on New and Renewal Leases Increased an Average of 34.6% on a Straight-Line Basis
Acquired an Operating Property in Las Vegas Containing 101,000 Square Feet and 129 Acres of Development Land in Dallas and San Antonio for Approximately $56 Million
Started Construction of Three Development Projects Located in Atlanta and Orlando Totaling 547,000 Square Feet with Projected Total Costs of Approximately $73 Million
Signed 11 Leases on Development Properties Totaling Approximately 662,000 Square Feet
Closed $250 Million Senior Unsecured Term Loans With a Weighted Average Effectively Fixed Interest Rate of 4.13%
Year Highlights
Net Income Attributable to Common Stockholders of $4.87 Per Diluted Share for 2025 Compared to $4.66 Per Diluted Share for 2024 (There Were No Gains on Sales of Real Estate Investments in 2025 as Compared to $9 Million, or $0.18 Per Diluted Share, in 2024)
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $8.95 Per Diluted Share for 2025 Compared to $8.31 Per Diluted Share for 2024, an Increase of 7.7%
Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 7.0% on a Straight-Line Basis and 6.7% on a Cash Basis for 2025 Compared to 2024
Average Occupancy of Operating Portfolio was 95.9% for 2025 as Compared to 96.8% for 2024
Rental Rates on New and Renewal Leases Increased an Average of 40.1% on a Straight-Line Basis
Acquired Four Operating Properties Containing 739,000 Square Feet and 300 Acres of Development Land for Approximately $262 Million
Started Construction of Seven Development Projects Totaling 1,439,000 Square Feet with Projected Total Costs of Approximately $179 Million
Transferred 11 Development Projects Containing 2,109,000 Square Feet to the Operating Portfolio
Increased the Quarterly Dividend by $0.15 Per Share (10.7%) to $1.55 Per Share
JACKSON, Miss., Feb. 4, 2026 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE:EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and twelve months ended December 31, 2025.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "I'm pleased with how we ended the year in terms of FFO per share exceeding our expectations, as well as the development leases we signed. Looking ahead, I'm excited with our recent wave of promotions. Creating the roles of President and Chief Operating Officer position us to capitalize on growth opportunities we believe the market will present. With limited supply and anticipated 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."
Reid Dunbar, President, added, "I'm excited for the opportunity to support Marshall and collaborate with our executive team as we continue to expand EastGroup's platform. With an exceptional team, a strong balance sheet, best-in-class portfolio and strategic land holdings, we are well positioned to capitalize on future growth opportunities across our markets."
EARNINGS PER SHARE
Three Months Ended December 31, 2025On a diluted per share basis, earnings per common share ("EPS") were $1.27 for the three months ended December 31, 2025, compared to $1.16 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 $138,609,000 ($2.60 per diluted share) for the three months ended December 31, 2025, as compared to $120,867,000 ($2.40 per diluted share) for the same period of 2024, which was an increase of $0.20 per diluted share.
Interest expense was $8,713,000 ($0.16 per diluted share) for the three months ended December 31, 2025, as compared to $9,192,000 ($0.18 per diluted share) for the same period of 2024, which was a decrease of $0.02 per diluted share.
The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $57,069,000 ($1.07 per diluted share) for the three months ended December 31, 2025, as compared to $49,662,000 ($0.99 per diluted share) for the same period of 2024, which was an increase of $0.08 per diluted share.
Weighted average shares outstanding increased by 3,044,000 on a diluted basis for the three months ended December 31, 2025, as compared to the same period of 2024.
Twelve Months Ended December 31, 2025Diluted EPS for the twelve months ended December 31, 2025 was $4.87 compared to $4.66 for the same period of 2024. The increase in EPS was primarily due to the following:
PNOI was $528,345,000 ($10.00 per diluted share) for the twelve months ended December 31, 2025, as compared to $464,995,000 ($9.51 per diluted share) for the same period of 2024, which was an increase of $0.49 per diluted share.
Interest expense was $32,113,000 ($0.61 per diluted share) for the twelve months ended December 31, 2025, as compared to $38,956,000 ($0.80 per diluted share) for the same period of 2024, which was a decrease of $0.19 per diluted share.
The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $216,732,000 ($4.10 per diluted share) for the twelve months ended December 31, 2025, as compared to $189,411,000 ($3.87 per diluted share) for the same period of 2024, which was an increase of $0.23 per diluted share.
There were no gains on sales of real estate investments recognized during the twelve months ended December 31, 2025. EastGroup recognized gains on sales of real estate investments of $8,751,000 ($0.18 per diluted share) during the twelve months ended December 31, 2024.
Weighted average shares outstanding increased by 3,903,000 on a diluted basis for the twelve months ended December 31, 2025, as compared to the same period of 2024.
FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended December 31, 2025For the three months ended December 31, 2025, funds from operations attributable to common stockholders ("FFO") were $2.34 per diluted share compared to $2.15 per diluted share during the same period of 2024, an increase of 8.8%.
PNOI increased by $17,742,000, or 14.7%, during the three months ended December 31, 2025, compared to the same period of 2024. PNOI increased $9,518,000 due to same property operations (based on the same property pool), $5,123,000 due to 2024 and 2025 acquisitions, and $3,227,000 due to newly developed and value-add properties.
Same PNOI, Excluding Income from Lease Terminations, increased 8.5% on a straight-line basis for the three months ended December 31, 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 8.4%.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended December 31, 2025 (representing 3.7% of our total square footage) increased an average of 34.6%.
Twelve Months Ended December 31, 2025FFO for the twelve months ended December 31, 2025, was $8.98 per diluted share compared to $8.35 per diluted share during the same period of 2024, an increase of 7.5%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $8.95 per diluted share for the twelve months ended December 31, 2025, compared to $8.31 per diluted share for the same period of 2024, an increase of 7.7%.
PNOI increased by $63,350,000, or 13.6%, during the twelve months ended December 31, 2025, compared to the same period of 2024. PNOI increased $29,889,000 due to same property operations (based on the same property pool), $23,178,000 due to 2024 and 2025 acquisitions, and $11,504,000 due to newly developed and value-add properties.
Same PNOI, Excluding Income from Lease Terminations, increased 7.0% on a straight-line basis for the twelve months ended December 31, 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 6.7%.
On a straight-line basis, rental rates on new and renewal leases signed during the twelve months ended December 31, 2025 (representing 15.1% of our total square footage) increased an average of 40.1%.
The same property pool for the three and twelve months ended December 31, 2025 includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through December 31, 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 AND DISPOSITIONS
As previously announced, in December 2025, EastGroup acquired a recently developed building, known as EastGroup Point at Cheyenne, in the North Las Vegas submarket for $21,134,000. The building contains 101,000 square feet, is currently 100% leased to one tenant, and increases the Company's ownership in Las Vegas to 1,497,000 square feet, which is currently 100% leased.
Also, as previously announced, the Company is under contract to acquire a property in Jacksonville, located in the Southside industrial submarket, which includes two buildings totaling 177,000 square feet. The closing, originally expected in December 2025, is now anticipated to occur in the first half of 2026.
During the three months ended December 31, 2025, as detailed in a previous announcement, the Company closed on the acquisition of the following development land in two different markets:
Frisco Park 121 East Land - 16 acres in the Northeast Dallas submarket for $10,305,000. This site is expected to accommodate the future development of two buildings containing approximately 180,000 square feet.
McKinney Airport Trade Center Land - 34 acres in the Northeast Dallas submarket for $15,025,000, which is adjacent to the three industrial buildings acquired by the Company during the third quarter of 2025. This site is expected to accommodate the future development of five buildings totaling approximately 385,000 square feet.
Schertz Station 3009 Land - 78 acres in the Northeast San Antonio submarket for $9,461,000. The site is expected to accommodate the future development of eight buildings totaling approximately 900,000 square feet.
In aggregate, during 2025, EastGroup acquired 739,000 square feet of operating properties for $143,099,000 and 300 acres of development land for $118,584,000.
In February 2026, the Company is scheduled to close on the disposition of a property containing six buildings totaling 398,000 square feet in Fresno, California, representing the Company's exit from the Fresno market as it continues to recycle capital into markets that better align with its portfolio and long-term strategy. The property is being sold for approximately $37,000,000 resulting in a gain of approximately $25,000,000, which is expected to be recorded in the first quarter of 2026. Gains on sales of real estate investments are excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the fourth quarter of 2025, EastGroup began construction of three new development projects containing 547,000 square feet located in Atlanta and Orlando, with projected total costs of $72,500,000.
The development projects started during the twelve months ended December 31, 2025 are detailed in the table below:
Development Projects Started in 2025
Location
Size
Anticipated ConversionDate
Projected TotalCosts
(Square feet)
(In thousands)
Dominguez(1)
Los Angeles, CA
262,000
11/2026
$
9,200
Horizon West 9
Orlando, FL
113,000
08/2026
15,900
Greenway 100 & 200
Atlanta, GA
289,000
04/2027
34,200
McKinney 5 & 6
Dallas, TX
161,000
08/2027
27,000
Station 24 1 & 2
Nashville, TN
180,000
08/2027
35,700
Braselton 1
Atlanta, GA
205,000
12/2027
23,500
North Ridge Trail
Orlando, FL
229,000
12/2027
33,100
Total Development Projects Started
1,439,000
$
178,600
(1) Represents a redevelopment project.
At December 31, 2025, EastGroup's development and value-add program consisted of 17 projects (3,473,000 square feet) in 12 markets. The projects, which were collectively 19% leased as of February 3, 2026, have a projected total cost of $499,900,000, of which $161,317,000 remained to be invested as of December 31, 2025.
During the fourth quarter of 2025, EastGroup transferred one project, known as Horizon West 5, to the operating portfolio. The Company transfers projects to the portfolio at the earlier of 90% occupancy or one year after completion. The project, which is located in Orlando, contains 85,000 square feet.
The development projects transferred to the operating portfolio during the twelve months ended December 31, 2025 are detailed in the table below:
Development and Value-Add Properties Transferred tothe Operating Portfolio in 2025
Location
Size
Conversion Date
Cumulative Cost as of12/31/25
Percent Leased asof 2/3/26
(Square feet)
(In thousands)
SunCoast 9
Fort Myers, FL
111,000
02/2025
$
16,385
64
%
Northeast Trade Center 1
San Antonio, TX
264,000
03/2025
28,814
100
%
Horizon West 6
Orlando, FL
87,000
04/2025
12,321
100
%
Basswood 3-5
Fort Worth, TX
351,000
05/2025
50,018
70
%
Crossroads 1
Tampa, FL
124,000
05/2025
19,350
100
%
Eisenhauer Point 10-12
San Antonio, TX
223,000
05/2025
28,642
48
%
Braselton 3
Atlanta, GA
115,000
07/2025
15,027
100
%
Gateway South Dade 1 & 2
Miami, FL
169,000
07/2025
34,511
46
%
Riverside 1 & 2
Atlanta, GA
284,000
07/2025
34,128
100
%
Cass White 1 & 2
Atlanta, GA
296,000
09/2025
34,614
48
%
Horizon West 5
Orlando, FL
85,000
12/2025
10,531
0
%
Total Projects Transferred
2,109,000
$
284,341
72
%
Projected Stabilized Yield(1)
7.2 %
(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 fourth quarter of 2025, which was paid on January 15, 2026. This was the Company's 184th 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 $180.11 on February 3, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.7% at December 31, 2025. The Company's interest and fixed charge coverage ratio was 15.3x and 15.8x for the three and twelve months ended December 31, 2025, respectively. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x and 3.2x for the three and twelve months ended December 31, 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.
In October 2025, EastGroup repaid two senior unsecured notes totaling $75,000,000 at maturity with a weighted average fixed interest rate of 3.98%. During the twelve months ended December 31, 2025, the Company repaid maturing debt totaling $145,000,000 with a weighted average effectively fixed interest rate of 3.13%.
During November 2025, as previously announced, the Company closed $250,000,000 senior unsecured term loans separated into two tranches with a weighted average effectively fixed interest rate of 4.13%. Tranche A provides a $100,000,000 unsecured term loan with a maturity date of April 30, 2030. Tranche B provides a $150,000,000 unsecured term loan with a maturity date of March 14, 2031. The loans require interest only payments, bearing interest at the annual rate of Daily Secured Overnight Financing Rate plus an applicable margin (0.85% as of February 3, 2026) based on the Company's senior unsecured long-term debt rating. The Company entered into interest rate swap agreements to convert the floating interest rate component to an effectively fixed interest rate for the entire term of the loans.
In January 2025, EastGroup refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%. In November 2025, the Company also entered into amendments related to five senior unsecured term loans totaling $475,000,000, which reduced the credit spread by 10 basis points on each loan.
During the fourth quarter of 2025, the Company did not have any sale or issuance transactions related to its continuous equity offering program. During the year ended December 31, 2025, the Company received gross proceeds of $267,010,000 from the program. As of February 3, 2026, EastGroup has $1,000,000,000 capacity available to issue shares through its equity offering program.
EXECUTIVE LEADERSHIP CHANGES
As previously announced, the following promotions became effective January 1, 2026:
Reid Dunbar, former Head of EastGroup's Central Region, became President of the Company,
Staci Tyler, former Chief Administrative Officer and Chief Accounting Officer, became Chief Financial Officer,
Brent Wood, former Chief Financial Officer, assumed the newly created position of Chief Operating Officer, and
Michelle Rayner, former Controller, assumed the role of Chief Accounting Officer.
Mr. Loeb stated, "With a combined EastGroup tenure of nearly 70 years, Reid, Staci, Brent and Michelle represent the exceptional talent we have at EastGroup, and their promotions reflect our confidence in their ability to grow and drive shareholder value. We've experienced meaningful growth and believe we are well positioned to continue executing our strategy and capitalizing on the strength of our portfolio."
An estimate of the impact to general and administrative expense has been included in the 2026 guidance as noted below.
OUTLOOK FOR 2026
We estimate EPS for 2026 to be in the range of $4.93 to $5.13 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.40 to $9.60. 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 in order to meet 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 2026, 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 2026:
Low Range
High Range
Q1 2026
Y/E 2026
Q1 2026
Y/E 2026
(In thousands, except per share data)
Net income attributable to common stockholders
$
62,946
263,432
