Core Viewpoint - Federal Realty Investment Trust reported strong Q2 2025 results, with notable growth in revenue and non-GAAP EPS, although part of the performance was influenced by a one-time tax credit transaction [1][5][12] Financial Performance - Non-GAAP EPS (NAREIT FFO per diluted share) was $1.91, up 13% from $1.69 in Q2 2024 [2][12] - GAAP revenue reached $311.5 million, a 5.2% increase from $296.1 million in Q2 2024 [2][5] - Comparable property operating income (POI) grew by 4.9% year-over-year [2][6] - Portfolio occupancy at the end of the period was 93.6%, up from 93.1% in Q2 2024 [2][6] Strategic Focus - The trust focuses on high-traffic, affluent urban and suburban locations, primarily through open-air shopping centers and mixed-use developments [3] - The company aims for steady growth via strategic reinvestment, disciplined acquisitions, and careful capital management [4] Leasing and Tenant Management - The trust signed 119 comparable retail leases for 643,810 square feet, with a 10% increase in cash rent on expiring leases [6] - Tenant diversification is a key strategy, with the largest tenant accounting for only 2.6% of annualized base rent [7] Transactions and Developments - The trust acquired Town Center Plaza and Town Center Crossing for $289 million and sold two California properties for $143 million [8] - Ground broke on a 258-unit residential project at Santana Row, with an expected investment of approximately $145 million [8][9] Capital Structure and Dividends - The company maintained strong liquidity with over $1.5 billion in total liquidity and a net debt of $4.31 billion [10] - The quarterly dividend was increased by approximately 3% to $1.13 per share, marking the 58th consecutive annual increase [11][15] Guidance and Outlook - Management raised its full-year guidance for GAAP earnings per diluted share to a range of $3.91 to $4.01 [13] - Full-year FFO per share guidance increased to $7.16 to $7.26, including the one-time tax credit [13] - Comparable property operating income growth guidance is now anticipated to be between 3.25% and 4.0% for the full year [13][14]

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].