East Properties-EastGroup Acquires Atlanta Property, Sees Healthy Leasing Activity

Acquisition and Expansion - EastGroup Properties acquired Riverpoint Industrial Park in Atlanta for approximately $88 million, adding 779,000 square feet of fully leased industrial space to its portfolio [1] - The company's total ownership in Atlanta now stands at 2,246,000 square feet with a 98.1% lease rate [1] - EastGroup is set to close on a property in Dallas consisting of four fully leased industrial buildings for around$ 77 million [2] - The company purchased 26 acres of development land in Nashville for $10.1 million, planned for future construction of four buildings totaling 350,000 square feet [2] Portfolio Performance - EastGroup's portfolio shows a 96.3% lease rate and 95.7% occupancy rate as of November 13, 2024 [3] - The company signed 1.21 million square feet of new and renewal leases in Q4 2024, with average rental rate growth of 53.1% on a straight-line basis and 30.9% on a cash basis [3] Market Strategy and Outlook - EastGroup focuses on industrial properties in major Sunbelt markets, particularly Florida, Texas, Arizona, California, and North Carolina [5] - The company targets functional, flexible, and quality business distribution spaces in the 20,000-100,000 square foot range [5] - EastGroup's strategy emphasizes owning high-quality distribution facilities near major transportation features [6] Industry Context - The industrial real estate market faces challenges with choppy demand and high supply [6] - EastGroup's stock has declined 0.2% in the month, outperforming the industry's 2.4% decline [6] Peer Comparison - Iron Mountain Incorporated and Cousins Properties are better-ranked REITs, each carrying a Zacks Rank 2 (Buy) [6] - The Zacks Consensus Estimate for Iron Mountain's 2024 FFO per share has been raised to$ 4.49 [7] - The Zacks Consensus Estimate for Cousins Properties' 2024 FFO per share has increased to $2.68 [7]