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Jun 30
EastGroup Q2 2025 Earnings Report
EastGroup reported solid Q2 2025 results with strong FFO growth and record rental rate increases despite slight occupancy declines.
Key Takeaways
EastGroup delivered $177.3 million in revenue and $63.3 million in net income for Q2 2025. EPS increased to $1.20, while FFO rose to $2.21 per share. Leasing activity remained robust with a 44.4% rental rate increase on new and renewal leases.
Net income attributable to common stockholders rose to $63.3 million, or $1.20 per diluted share:contentReference[oaicite:0]{index=0}
Funds from operations (FFO) increased 7.8% year-over-year to $2.21 per diluted share:contentReference[oaicite:1]{index=1}
Operating portfolio was 97.1% leased and 96.0% occupied at quarter-end:contentReference[oaicite:2]{index=2}
Rental rates on new and renewal leases increased 44.4% on a straight-line basis:contentReference[oaicite:3]{index=3}
EastGroup
EastGroup
Forward Guidance
EastGroup reaffirmed 2025 guidance, expecting EPS between $4.76 and $4.90 and FFO per share between $8.89 and $9.03, supported by strong rental growth and high occupancy.
Positive Outlook
- Strong rental rate growth projected to continue
- FFO growth of 7.3% expected for 2025
- Average operating portfolio occupancy projected between 95.6% and 96.4%
- Robust pipeline of development projects totaling 1.7 million square feet for 2025
- Healthy balance sheet with low debt-to-EBITDAre ratio of 2.9x
Challenges Ahead
- Slight year-over-year decline in average occupancy
- Macroeconomic uncertainty affecting new and expansion leasing
- Higher depreciation and amortization expenses impacting EPS
- Increased general and administrative expenses expected for 2025
- Potential delays in development and lease-up due to economic conditions