East Properties(EGP) - 2025 Q4 - Annual Report

Financial Performance - EastGroup's Net Income Attributable to Common Stockholders increased by 4.5% to $4.87 per share for the year ended December 31, 2025, compared to $4.66 in 2024[107]. - Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for 2025 was $257,402,000, an increase of 13.0% from $227,751,000 in 2024[146]. - FFO attributable to common stockholders per diluted share increased by 7.5% to $8.98 in 2025 from $8.35 in 2024[146]. - PNOI for the year ended December 31, 2025, was $528,345,000 ($10.00 per diluted share), an increase from $464,995,000 ($9.51 per diluted share) in 2024, representing a growth of approximately 13.8%[148]. - PNOI increased by $63,350,000, or 13.6%, compared to 2024, with Same PNOI, excluding income from lease terminations, increasing by 7.0%[129]. Property Operations - Property Net Operating Income (PNOI) increased by 7.0% for 2025 compared to 2024, reaching $528,345,000[108]. - Average rental rates for new and renewal leases signed during 2025 increased by 40.1% compared to previous leases on the same spaces[106]. - The operating portfolio was 97.0% leased at December 31, 2025, slightly down from 97.1% at the end of 2024[109]. - Average occupancy for the operating portfolio was 96.5% at December 31, 2025, compared to 96.1% at the end of 2024[147]. - Average rental rate for same properties increased to $8.81 per square foot in 2025 from $8.25 in 2024, reflecting a rental rate increase of 6.8%[129]. Development and Acquisitions - EastGroup purchased 300.4 acres of land for $118,584,000 and began construction on six development projects totaling 1,439,000 square feet in 2025[111]. - EastGroup's development and value-add program consisted of 17 projects totaling 3,473,000 square feet, with a projected total cost of $499,900,000 as of December 31, 2025[111]. - The Company acquired operating properties totaling 739,000 square feet for $143,099,000 in 2025[130]. - Capital improvements on existing and acquired properties amounted to $75,653,000 during 2025[131]. - Total real estate improvements for 2025 amounted to $75,653,000, up from $58,128,000 in 2024, indicating a year-over-year increase of approximately 30.3%[156]. Debt and Liquidity - The Company closed $250,000,000 of unsecured debt with a weighted average fixed interest rate of 4.13% during 2025[105]. - As of December 31, 2025, total immediate liquidity was approximately $654,574,000, consisting of $1,007,000 in cash and cash equivalents and $653,567,000 available on unsecured bank credit facilities[162]. - As of December 31, 2025, the total unsecured debt amounts to $1,615,000,000 with a weighted average interest rate of 3.43%[165]. - The company has a $625,000,000 unsecured bank credit facility with an interest rate of 4.451% and no outstanding balance as of December 31, 2025[170]. - Scheduled principal payments on long-term debt include $100,000,000 due in October 2026 and $300,000,000 due in 2030[165]. Shareholder Distributions - The company distributed $302,507,000 in common stock dividends during 2025[163]. - Distributions in excess of earnings increased by $55,781,000 due to dividends on common stock exceeding net income[144]. - The company generated aggregate net proceeds of $6,005,000 from the sale of 33,120 shares of common stock at a weighted average price of $183.15 per share[103]. - During the year ended December 31, 2025, the company issued 1,449,078 shares of common stock under its ATM programs, generating net proceeds of approximately $258,066,000[174]. - As of February 11, 2026, $1,000,000,000 of common stock remains available to be sold under the Current ATM Program[175]. Economic Conditions - EastGroup's financial results are influenced by general economic conditions in the markets where its properties are located[189]. - Economic downturns may lead to increased vacancy rates and reduced rental income from re-leasing properties[189]. - The ability to renew leases or re-lease space may be adversely affected by economic conditions[189]. - Existing tenants' inability to make lease payments could result in uncollectible rent, impacting income from real estate operations[189]. - Overall cash flows of EastGroup could be negatively impacted by adverse economic changes[189].