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Jun 30, 2025
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}
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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