Financial Data and Key Metrics Changes - Funds from operations (FFO) were $2.34 per share, up 8.8% quarter-over-quarter, and for the year, FFO per share growth was 7.7% [7] - Quarterly occupancy was 96.5%, with average quarterly occupancy at 96.2%, an increase of 40 basis points from Q4 2024 [7] - Same-store occupancy reached 97.4%, with cash same-store rental line rising 8.4% for the quarter and 6.7% for the year [8][14] Business Line Data and Key Metrics Changes - Development leasing accounted for 52% of the annual total square footage in Q4, marking the best quarter of overall leasing in over three years [10] - Quarterly re-leasing spreads were 35% GAAP and 19% cash for leases signed during the quarter, with annual results at 40% and 25% respectively [8] - Average lease size in Q4 increased to over 60,000 sq ft, indicating a positive trend in leasing activity [29] Market Data and Key Metrics Changes - The company noted a flight to quality in the market, with its portfolio occupancy outperforming broader markets [10] - The construction pipeline is at a 7-8 year low, which is expected to lead to upward pressure on rents as demand stabilizes [11][36] - The company is focusing on geographic and tenant diversity to stabilize earnings regardless of economic conditions [8] Company Strategy and Development Direction - The company plans to capitalize on development opportunities based on its experience, balance sheet strength, and existing tenant expansion needs [11] - A forecast of $250 million in new development starts for 2026 was provided, with an emphasis on maintaining projected yields [11] - The company is modernizing its portfolio and expanding its footprint in key markets like Las Vegas and San Antonio [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market demand picking up momentum, with expectations for sustainable growth [19] - The company is confident in its high-quality portfolio and the ability to execute in a steadily improving environment [18] - Management acknowledged potential challenges in the operating environment but remains focused on driving FFO per share growth and enhancing portfolio quality [19] Other Important Information - The company ended the year with $19 million drawn on its unsecured bank credit facility, leaving over $650 million in available capacity [15] - Projected G&A expenses for 2026 are $27 million, including costs related to executive team transitions [17] - The company has $140 million in unsecured debt maturing during Q4 2026, with plans to fund repayments and new investments through bank credit facilities and new debt issuance [18] Q&A Session Summary Question: Development leasing trends and prospect activity - Management noted that the uptick in development leasing was primarily due to long-term decision-making resuming after a volatile year, with a mix of expansions and new tenants [25][26] Question: Market rent growth expectations - Management indicated that while demand has picked up, it has not yet translated into significant rent growth, but optimism remains due to low construction pipeline levels [36][37] Question: Competitive supply and lender appetite - Management expressed confidence in the current competitive supply situation, noting that obtaining permits and land remains challenging for private developers [47][48] Question: Guidance and capital allocation - Management discussed the flexibility in capital allocation between debt and equity, emphasizing a balanced approach based on market conditions [60][62] Question: Development lease-up assumptions - Management indicated that development lease-up is expected to be back-end weighted, with significant activity anticipated in the latter half of the year [68][69]

分组1 - EastGroup Properties (EGP) reported quarterly funds from operations (FFO) of $2.34 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and up from $2.15 per share a year ago, representing an FFO surprise of +0.30% [1] - The company achieved revenues of $187.47 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.79%, compared to year-ago revenues of $164.04 million [2] - Over the last four quarters, EastGroup Properties has surpassed consensus FFO estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future FFO expectations [3] - The current consensus FFO estimate for the coming quarter is $2.26 on revenues of $188.44 million, and for the current fiscal year, it is $9.51 on revenues of $773.96 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was $2.27, representing a 6.6% increase compared to the same quarter last year [7][13] - Quarter-end leasing was at 96.7% with occupancy at 95.9%, while average quarterly occupancy was 95.7%, down 100 basis points from Q3 2024 [7][8] - Cash same store revenue rose by 6.9% for the quarter and 6.2% year to date [8] - The company has a diversified rent roll, with the top 10 tenants accounting for only 6.9% of rents, down 60 basis points from the previous year [8] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 36% GAAP and 22% cash for leases signed during the quarter, with year-to-date results slightly higher at 42.7% GAAP and cash respectively [7][8] - The retention rate for tenants rose to almost 80%, indicating a cautious nature among tenants [10] Market Data and Key Metrics Changes - The market remains somewhat bifurcated, with improved activity in smaller spaces (50,000 square feet and below) but larger spaces experiencing delays in leasing [9][10] - The company is reforecasting 2025 starts to 200,000,000 due to current demand levels and a decline in the supply pipeline [11] Company Strategy and Development Direction - The company aims to capitalize on development opportunities earlier than private peers, leveraging its balance sheet strength and existing tenant expansion needs [12] - The focus is on geographic and tenant diversity as strategic paths to stabilize earnings regardless of economic conditions [8] - The company is excited about acquiring properties in Raleigh, North Carolina, and new development land in Orlando [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about macroeconomic conditions improving, which could strengthen consumer and corporate confidence [16] - The company is positioned to benefit from long-term trends such as population migration and evolving logistics chains [18] - Management noted that while construction costs have come down, demand remains a critical factor for development starts [33] Other Important Information - The company has a strong balance sheet with a debt to total market capitalization of 14.1% and an unadjusted debt to EBITDA ratio of 2.9 times [14] - Tenant collections remain healthy, with uncollectible rents estimated to be in the 35 to 40 basis point range as a percentage of revenues [15] Q&A Session Summary Question: Can you expand on leasing and the development pipeline? - Management noted that conversations regarding leasing have improved since May, with a high retention rate benefiting the portfolio [22][24] Question: How have construction costs trended recently? - Construction pricing has come down by about 10% to 12%, but demand remains the primary constraint on starting new projects [31][33] Question: What is the outlook for releasing spreads? - Management believes they can maintain releasing spreads in the mid-30s, with low supply and high demand expected to drive future rent increases [48][50] Question: How are different regional markets performing? - The Eastern Region, particularly Florida and Raleigh, has shown strength, while California and Denver have been slower markets [58][60] Question: What is the current status of bad debt and tenant watch lists? - Bad debt remains low at around 30 to 35 basis points relative to total revenue, with no significant changes in the tenant watch list [84] Question: What interest rate would prompt a change in leverage levels? - Management indicated that they are monitoring interest rates and equity opportunities, with plans to potentially issue $200,000,000 to $250,000,000 in unsecured term loans [85][86]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on real estate investment trusts (REITs) [1] - He has a background in IT analysis for Fortune 500 companies and experience in financial services with Charles Schwab [1] - Anthony is launching a book on REITs in 2025 and manages his own equities research firm remotely [1] Background and Experience - Albert Anthony has over 1,000 followers on Seeking Alpha and writes for various financial platforms [1] - He has participated in numerous business and innovation conferences in the EU and has a degree from Drew University [1] - Currently enrolled in the CMSA certification program at the Corporate Finance Institute in Vancouver [1] Media and Digital Presence - Anthony is active in digital media, including a YouTube channel focused on REITs [1] - He has appeared in regional media channels in Croatia and has had extra roles in over five productions [1] - The author does not engage with non-publicly traded companies or small-cap stocks [1]

Core Viewpoint - EastGroup Properties reported strong Q2 2025 results, exceeding revenue and FFO estimates, but showed early signs of caution in certain markets despite continued demand for logistics assets [1][5][9]. Financial Performance - GAAP revenue for Q2 2025 was $177.3 million, surpassing estimates of $175.19 million, and up 11.4% from $159.1 million in Q2 2024 [2]. - Non-GAAP FFO per share reached $2.21, exceeding analyst expectations and reflecting a 7.8% increase from $2.05 in the same quarter last year [2][5]. - Same property net operating income increased by 6.4% on a cash basis, reaching $113.2 million [2][5]. Portfolio and Occupancy - The operating portfolio average occupancy was 95.9%, down 1.1 percentage points from the previous year [2][6]. - The portfolio remained 97.1% leased and 96.0% physically occupied as of June 30, 2025, indicating strong demand despite slight occupancy decline [6]. Development and Strategic Focus - The company has a measured approach to development, with only two new projects totaling 469,000 square feet started in Q2 2025, while four projects totaling 785,000 square feet transitioned to operations [7]. - A significant development pipeline exists, with 18 projects underway across 13 markets, although management has adopted a cautious stance due to economic uncertainties [7][14]. Financial Discipline - EastGroup maintained conservative leverage ratios, with a debt-to-total market capitalization of 14.2% and a fixed charge coverage ratio of 16.1 times [8]. - Recent equity raises of $74.1 million in Q2 2025 and $117.1 million post-quarter end enhanced liquidity [8]. Dividend Consistency - The company declared its 182nd consecutive quarterly dividend of $1.40 per share, translating to a $5.60 annualized rate and a 3.3% yield [10]. Market Context and Risks - The company emphasized tenant diversification, with no single tenant accounting for more than 1.6% of annualized base rent [4]. - Market-specific challenges were noted, particularly in Los Angeles, where rent growth and absorption lagged behind other regions [9][13]. Future Guidance - For FY2025, management maintained GAAP EPS guidance of $4.76 to $4.90 and adjusted FFO per share guidance to $8.89 to $9.03 [15]. - The outlook for same property net operating income growth was revised upward to 6.0%–7.0% for FY2025, with average operating portfolio occupancy expected to be in the 95.6%–96.4% range [15].

Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, including thousands of hours and over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time insights into his REIT portfolio and transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and direct access to Jussi and his team for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that consults various investment entities on REIT investing [2]

Group 1 - The iREIT® Tracker provides comprehensive data on over 250 tickers, including quality scores, buy targets, and trim targets, focusing on REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The investment group iREIT®+HOYA Capital is led by experienced analysts with a combined 100+ years in the industry, including backgrounds in hedge funds, due diligence, and military service [1] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions [2]

Group 1 - The article discusses the challenges of timing investments and the tendency for market sell-offs to disrupt cash accumulation plans [1] - High Yield Landlord is highlighted as a significant real estate investment community on Seeking Alpha, providing exclusive research and resources for its members [2] - The focus of the investment strategy is on high-quality dividend growth stocks aimed at generating a stable and growing passive income stream [2] Group 2 - The analyst has disclosed a beneficial long position in several stocks, indicating a personal investment strategy aligned with the discussed themes [3] - Seeking Alpha emphasizes that past performance does not guarantee future results, highlighting the importance of individual investor assessment [4]

Group 1 - STAG Industrial, Inc. (NYSE: STAG) is rated a Buy for income-focused investors interested in real estate investment trusts (REITs) [1] - The market price of STAG was negatively impacted during the post-April tariff war but has been on the rise since then [1] Group 2 - The author, David A. Johnson, has over 30 years of investment experience and holds advanced degrees in finance and business administration [1]

Group 1 - The investing group iREIT®+HOYA Capital is led by Brad and HOYA Capital, focusing on REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives [1] - The team of analysts has over 100 years of combined experience, including diverse backgrounds such as a former hedge fund manager and a military veteran [1] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions [2] Group 2 - Brad Thomas has been featured in major media outlets like Barron's, Bloomberg, and Fox Business, and is the author of four books, including "REITs For Dummies" [2] - The article emphasizes that past performance is not indicative of future results, and no specific investment recommendations are provided [5]