East Properties-EastGroup Properties Announces First Quarter 2025 Results

Core Insights - EastGroup Properties, Inc. reported a decrease in earnings per share (EPS) to $1.14 for Q1 2025, down from$ 1.22 in Q1 2024, primarily due to various operational factors [4][12] - Funds from operations (FFO) attributable to common stockholders increased by 8.6% to $2.15 per diluted share compared to$ 1.98 in the same period last year [4][5] - The company experienced a 13.3% increase in property net operating income (PNOI), amounting to $126.18 million for Q1 2025, compared to$ 111.36 million in Q1 2024 [6][13] Financial Performance - EPS for Q1 2025 was $1.14, a decrease from$ 1.22 in Q1 2024 [4][12] - FFO per diluted share was $2.15, up from$ 1.98, marking an 8.6% increase [4][5] - PNOI increased by $14.82 million, or 13.3%, driven by acquisitions and same property operations [6][13] Operational Highlights - The operating portfolio was 97.3% leased and 96.5% occupied as of March 31, 2025, compared to an average occupancy of 95.8% in Q1 2024 [12] - Rental rates on new and renewal leases increased by an average of 46.9% during Q1 2025 [7][12] - The company signed 30% more square feet of operating portfolio leases in Q1 2025 compared to the same period in 2024 [12] Development and Value-Add Projects - EastGroup began construction on a 262,000 square foot redevelopment project in Los Angeles, with a projected cost of$ 7.7 million [10] - As of March 31, 2025, the development and value-add program included 20 projects totaling 4.03 million square feet, with a projected total cost of $573.2 million [11] Dividend and Shareholder Returns - A cash dividend of$ 1.40 per share was declared for Q1 2025, marking the 181st consecutive quarterly cash distribution [16] - The annualized dividend rate of $5.60 per share represents a dividend yield of 3.5% based on the closing stock price of$ 158.87 on April 22, 2025 [16] Financial Strength and Flexibility - The debt-to-total market capitalization ratio was 13.7% as of March 31, 2025, indicating a strong balance sheet [17] - The interest and fixed charge coverage ratio was 15.0x for Q1 2025, reflecting the company's ability to meet its financial obligations [17] - EastGroup refinanced a $100 million senior unsecured term loan, reducing the effective interest rate to 4.97% [18]