East Properties(US:EGP)2025-10-23 20:07Property Portfolio and Operations - As of September 30, 2025, EastGroup owned 546 industrial properties across 12 states, with a total portfolio of approximately 64.4 million square feet[112]. - During the nine months ended September 30, 2025, EastGroup executed new and renewal leases on 6,997,000 square feet, representing 11.4% of the operating portfolio, with average rental rates increasing by 42.1% compared to previous leases[119]. - The operating portfolio was 96.7% leased and 95.9% occupied as of September 30, 2025, with leases approximating 2.4% of the operating portfolio scheduled to expire during the remainder of 2025[122]. - Average occupancy for same properties was 96.6% for Q3 2025, slightly down from 96.9% in Q3 2024[144]. - The average rental rate for same properties was $8.91 per square foot for Q3 2025, compared to $8.30 per square foot in Q3 2024, reflecting a rental rate increase of 7.3%[144]. Financial Performance - Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $3.60 per diluted share for the nine months ended September 30, 2025, a 3.2% increase from $3.49 in the same period of 2024[120]. - Net Income attributable to EastGroup Properties, Inc. Common Stockholders for Q3 2025 was $66,943,000 ($1.26 per diluted share), up from $55,180,000 ($1.13 per diluted share) in Q3 2024, representing a 21.3% increase[140]. - For the nine months ended September 30, 2025, PNOI increased by $45,608,000, or 13.3%, compared to the same period in 2024, driven by same property operations and acquisitions[139]. - PNOI for the nine months ended September 30, 2025 was $389,736,000 ($7.41 per diluted share), up from $344,128,000 ($7.10 per diluted share) in the same period of 2024, reflecting a $0.31 increase per diluted share[158]. - FFO attributable to common stockholders for Q3 2025 was $121,103,000 ($2.27 per diluted share), an increase of 6.6% from $104,127,000 ($2.13 per diluted share) in Q3 2024[138]. Development and Acquisitions - EastGroup acquired 171.8 acres of development land for $83,793,000 and began construction on projects totaling 892,000 square feet during the nine months ended September 30, 2025[124]. - EastGroup acquired operating properties totaling 638,000 square feet for $121,965,000 during the nine months ended September 30, 2025[143]. - Total capital invested for development during the first nine months of 2025 was $242,121,000, including $152,569,000 for improvement costs on development and value-add properties and $83,793,000 for new land investments[147]. Capital and Financing - EastGroup's financing strategy includes utilizing its $675,000,000 unsecured bank credit facilities and intends to issue primarily unsecured fixed-rate debt in the future[126]. - The Company has a $625,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, and as of September 30, 2025, had $45,000,000 of variable rate borrowings at an interest rate of 4.998%[177][180]. - The Company also has a $50,000,000 unsecured bank credit facility with no outstanding balance as of September 30, 2025, and an interest rate of 5.035%[178]. - Scheduled principal payments on long-term debt as of September 30, 2025, total $1,440,000,000 with a weighted average interest rate of 3.37%[175]. - Interest expense recognized for the nine months ended September 30, 2025 was $23,400,000 ($0.44 per diluted share), down from $29,764,000 ($0.61 per diluted share) in the same period of 2024[162]. Stock and Dividends - EastGroup sold 33,120 shares of common stock under its at-the-market program at a weighted average price of $183.15 per share, generating net proceeds of $6,005,000[115]. - The Company distributed $219,955,000 in common stock dividends during the nine months ended September 30, 2025[173]. - The Company entered into forward equity sale agreements for 1,063,825 shares at an initial weighted average forward price of $181.89 per share, settling previous agreements for 1,449,078 shares with net proceeds of approximately $258,066,000[116]. Liquidity and Cash Flow - As of September 30, 2025, total immediate liquidity was approximately $630,393,000, consisting of $2,981,000 in cash and $627,412,000 available on unsecured credit facilities[172]. - Net cash provided by operating activities was $415,986,000 for the nine months ended September 30, 2025[173]. - Cash and cash equivalents decreased by $14,548,000 during the nine months ended September 30, 2025[150]. Ratings and Market Conditions - Moody's Ratings affirmed the Company's issuer rating of Baa2 and changed its outlook from stable to positive in May 2025, based on strong credit metrics[179]. - Most leases include scheduled rent increases and require tenants to pay a share of operating expenses, which mitigates the Company's exposure to inflation-related cost increases[199].