EastGroup Properties, Inc. reported a significant increase in financial performance for the first quarter of 2026, with net income attributable to common stockholders rising to $94.6 million, or $1.77 per share, compared to $59.4 million, or $1.14 per share, in the same period of 2025. This represents a 59% increase in net income year-over-year. The company’s total revenues for the quarter reached $190.3 million, up from $174.4 million in the prior year, driven primarily by increased income from real estate operations, which rose to $190.2 million from $172.6 million.
In terms of operational metrics, EastGroup's property net operating income (PNOI) increased by 11% to $140 million, with same property PNOI, excluding income from lease terminations, rising by 7.5%. The company’s operating portfolio was 96.5% leased and 95.9% occupied as of March 31, 2026, compared to 97.3% and 96.5%, respectively, a year earlier. The average rental rates for new and renewal leases increased by 36.8%, reflecting strong demand for the company’s distribution space.
Strategically, EastGroup continued to expand its portfolio, acquiring an operating property in Jacksonville for $38.1 million during the quarter. The company also sold a 398,000 square foot property in Fresno, generating a gain of $24.9 million. As of March 31, 2026, EastGroup owned 556 industrial properties across 12 states, with a total portfolio size of approximately 65.4 million square feet. The company has also initiated construction on four new development projects totaling 586,000 square feet.
Financially, EastGroup's total assets increased to $5.49 billion, up from $5.43 billion at the end of 2025, while total liabilities decreased to $1.91 billion. The company’s equity rose to $3.58 billion, reflecting a strong capital position bolstered by the issuance of common stock under its at-the-market program, which generated $69.3 million in net proceeds during the quarter. The company’s liquidity remains robust, with approximately $755.5 million available from cash, credit facilities, and forward equity sale agreements.
Looking ahead, EastGroup remains optimistic about its growth prospects, citing strong demand for its properties and a favorable leasing environment. The company plans to continue leveraging its financial strength to pursue further acquisitions and development opportunities while managing its debt effectively. The recent upgrade of its credit rating by Moody's to Baa1 is expected to enhance its borrowing capacity and reduce financing costs, supporting its strategic initiatives in the coming quarters.
About EASTGROUP PROPERTIES INC
EastGroup Properties, Inc. is a Maryland-based REIT specializing in the development, acquisition, and operation of industrial properties in major Sunbelt markets across the U.S. It focuses on high-quality distribution facilities near transportation hubs, serving tenants in supply-constrained submarkets. The company emphasizes sustainable building practices, long-term investments, and strategic growth through property management, development, and capital markets activities.
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