EastGroup Properties, Inc. reported a solid financial performance for the fiscal year ending December 31, 2024, with net income attributable to common stockholders reaching $227.8 million, or $4.66 per diluted share, marking a 5.4% increase from $200.5 million, or $4.42 per diluted share, in 2023. The company’s Property Net Operating Income (PNOI) also saw a notable rise, increasing by 12.5% to $465.0 million, driven by a combination of same property operations and contributions from newly developed and acquired properties. The average rental rates for new and renewal leases surged by 53% compared to previous leases, reflecting strong demand in the industrial real estate sector.
In terms of operational metrics, EastGroup's overall occupancy rate decreased to 96.1% at the end of 2024, down from 98.2% in 2023. The company executed leases on 9.4 million square feet of operating properties during the year, which accounted for 15.9% of its total square footage. The company’s portfolio consisted of 536 industrial properties across 12 states, with a total of approximately 63.1 million square feet, of which 97.1% was leased as of December 31, 2024. The company also reported that 10.1% of its operating portfolio's leases were set to expire in 2025.
Strategically, EastGroup expanded its footprint through significant acquisitions and development activities. In 2024, the company acquired 2.5 million square feet of operating properties for $390 million and began construction on 10 new development projects totaling 1.6 million square feet. Additionally, EastGroup transferred seven projects from its development program to real estate properties, with associated costs of $200 million. The company also disposed of properties in Jackson, Mississippi, generating gross sales proceeds of $18.3 million.
The company’s total assets increased to $5.08 billion, up $558 million from the previous year, while total liabilities decreased by $126 million to $1.78 billion. This resulted in a total equity increase of $684 million to $3.29 billion. EastGroup maintained a strong liquidity position with approximately $757 million available, including cash and credit facilities. The company’s credit rating from Moody’s remains stable at Baa2, reflecting its solid financial health and operational performance.
Looking ahead, EastGroup plans to continue leveraging its existing credit facilities and equity offerings to fund future acquisitions and development projects. The company remains vigilant regarding market conditions, particularly concerning inflation and interest rates, which could impact its operational costs and tenant demand. EastGroup's management expressed confidence in its ability to navigate these challenges while maximizing shareholder value through strategic growth initiatives.
About EASTGROUP PROPERTIES INC
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