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Mar 31
EastGroup Q1 2025 Earnings Report
EastGroup Properties reported solid financial performance in Q1 2025 with strong leasing momentum and growth in adjusted earnings.
Key Takeaways
EastGroup Properties delivered a stable Q1 2025 with notable leasing activity, strong growth in adjusted FFO per share, and positive rental rate increases across its portfolio.
EPS was $1.14, slightly down due to lack of property sales this quarter.
Adjusted EPS (FFO) increased to $2.12 per diluted share, up from $1.98 last year.
Same-property NOI grew 5.3% on a straight-line basis and 5.2% on a cash basis.
Leasing activity surged, with rental rates on new/renewal leases increasing by 46.9%.
EastGroup
EastGroup
Forward Guidance
EastGroup projects continued growth in FFO per share for 2025, supported by development activities and high occupancy expectations.
Positive Outlook
- Projected FFO per share for 2025 is $8.84 to $9.04, up from $8.35 in 2024.
- Same-property NOI growth expected at 5.8% to 6.8% (cash basis).
- Strong average month-end occupancy projected between 95.6% and 96.6%.
- Development starts projected at 1.8 million square feet with $250M investment.
- Capital proceeds expected to reach $260M for the year.
Challenges Ahead
- General and administrative expenses projected to rise to $22.8M, up from $20.6M.
- Lower expected operating property acquisitions ($150M vs $390M in 2024).
- Operating property dispositions projected to increase slightly to $20M.
- Development starts reduced from initial guidance of 2.5M sq ft to 1.8M sq ft.
- Global trade uncertainty may impact leasing and capital market activity.