Core Viewpoint - EastGroup Properties, Inc. reported strong quarterly results despite economic uncertainty, highlighting the resilience of its team, properties, and markets, while maintaining a focus on a strong balance sheet and tenant diversity for long-term growth [3]. Financial Performance - Earnings per share (EPS) for Q2 2025 were $1.20, up from $1.14 in Q2 2024, while EPS for the first half of 2025 was $2.35, slightly down from $2.37 in the same period of 2024 [4][7]. - Funds from operations (FFO) for Q2 2025 were $2.21 per diluted share, an increase of 5.7% from $2.09 in Q2 2024 [5][6]. - Property net operating income (PNOI) for Q2 2025 was $129.2 million, up from $113.8 million in Q2 2024, reflecting a $0.11 increase per diluted share [8]. Operational Highlights - Same property net operating income increased by 6.6% on a straight-line basis and 6.4% on a cash basis for Q2 2025 compared to Q2 2024 [10]. - The operating portfolio was 97.1% leased and 96.0% occupied as of June 30, 2025, with an average occupancy of 95.9% for Q2 2025 [7]. - Rental rates on new and renewal leases increased by an average of 44.4% on a straight-line basis during Q2 2025 [10]. Development and Acquisitions - The company started construction on two development projects totaling 469,000 square feet in Nashville and Atlanta, with projected costs of approximately $70 million [7][21]. - Subsequent to Q2 2025, EastGroup acquired two operating properties in Raleigh for approximately $61 million, expanding its portfolio in the area [7][18]. Dividend and Shareholder Returns - EastGroup declared a cash dividend of $1.40 per share in Q2 2025, marking the 182nd consecutive quarterly cash distribution to shareholders [25]. - The annualized dividend rate of $5.60 per share represents a dividend yield of 3.3% based on the closing stock price of $167.78 on July 22, 2025 [25]. Financial Strength - The company's debt-to-total market capitalization was 14.2% as of June 30, 2025, with an interest coverage ratio of 16.1x for Q2 2025 [26]. - The ratio of debt to earnings before interest, taxes, depreciation, and amortization for real estate (EBITDAre) was 2.9x for Q2 2025 [26]. Outlook - The company estimates EPS for 2025 to be in the range of $4.76 to $4.90 and FFO per share to be in the range of $8.89 to $9.03 [29][31].
EastGroup Properties Announces Second Quarter 2025 Results