EastGroup Properties Reports Q1 2025 Financial Results with Increased Revenues and Decreased Earnings per Share

EastGroup Properties, Inc. reported its financial results for the first quarter of 2025, revealing a net income attributable to common stockholders of $59.4 million, or $1.14 per share, compared to $58.6 million, or $1.23 per share, for the same period in 2024. This represents a decrease of 6.6% in earnings per share year-over-year. The company’s total revenues increased to $174.4 million, up from $154.2 million in the prior year, driven primarily by a rise in income from real estate operations, which reached $172.6 million, compared to $154.1 million in the previous year. The increase in revenue was attributed to higher rental income and variable lease income, which rose to $130.1 million and $42.6 million, respectively.

In terms of operational performance, EastGroup's property net operating income (PNOI) increased by 13.3% to $126.2 million, reflecting strong performance from both newly acquired properties and same-property operations. The company’s operating portfolio was 97.3% leased and 96.5% occupied as of March 31, 2025, compared to 98.0% and 97.7% in the same period last year. The average rental rate for new and renewal leases increased significantly by 46.9%, indicating strong demand for its properties. However, the company noted that occupancy rates have slightly declined, with 6.9% of the operating portfolio's leases set to expire in 2025.

EastGroup's total assets as of March 31, 2025, were reported at $5.1 billion, an increase from $5.08 billion at the end of 2024. The company’s total liabilities decreased to $1.76 billion, down from $1.78 billion, primarily due to the repayment of unsecured debt. Stockholders' equity increased to $3.34 billion, reflecting a rise in additional paid-in capital from common stock offerings. The company raised approximately $6 million through its at-the-market common stock offering program during the quarter, selling 33,120 shares at an average price of $183.15.

Strategically, EastGroup did not engage in any property acquisitions during the quarter but continued to focus on its development and value-add projects. The company transferred two projects totaling 375,000 square feet from development to real estate properties, with a total investment of $43 million. As of March 31, 2025, EastGroup had 20 development projects in progress, totaling 4.03 million square feet, with a projected total investment of $573.2 million. The company remains committed to its strategy of maximizing shareholder value through the development and acquisition of quality business distribution space in high-growth markets.

Looking ahead, EastGroup anticipates that its current cash flow and access to credit facilities will support its operations and growth initiatives. The company is closely monitoring economic conditions, including inflation and interest rates, which could impact its operational performance. Despite the challenges posed by economic uncertainty, EastGroup remains optimistic about its ability to generate revenue and maintain occupancy levels in its properties.