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Sep 30
EastGroup Q3 2025 Earnings Report
EastGroup Properties reported solid Q3 2025 results with strong rental rate growth and higher occupancy levels.
Key Takeaways
EastGroup Properties delivered strong Q3 2025 results, reporting net income of $66.9 million ($1.26 per share) and funds from operations (FFO) of $121.1 million ($2.27 per share), representing a 6.6% year-over-year increase. The company maintained high occupancy levels and achieved significant rent increases on new and renewal leases, reflecting continued demand across its high-growth industrial markets.
Net income attributable to common stockholders was $66.9 million ($1.26 per diluted share), up from $55.2 million ($1.13 per share) in Q3 2024.
Funds from operations (FFO) rose 6.6% year-over-year to $2.27 per diluted share.
Same property net operating income increased 7.7% on a straight-line basis and 6.9% on a cash basis.
Rental rates on new and renewal leases increased an average of 35.9% on a straight-line basis.
EastGroup
EastGroup
Forward Guidance
For FY2025, EastGroup expects EPS between $4.85 and $4.89 and FFO per share between $8.94 and $8.98, implying continued strong growth driven by stable occupancy and development activity.
Positive Outlook
- Projected FFO growth of approximately 7.3% year-over-year.
- Same property NOI expected to grow between 6.4% and 7.0% on a cash basis.
- Occupancy expected to remain high between 95.6% and 96.2%.
- Strong balance sheet with low debt-to-EBITDA ratio of 2.9x.
- Ongoing development pipeline totaling 3.0 million square feet.
Challenges Ahead
- Potential moderation in development starts compared to prior year.
- Higher construction and financing costs could impact margins.
- Limited property dispositions projected for FY2025.
- Macroeconomic uncertainty may affect tenant expansion plans.
- Lower acquisition volume versus FY2024 guidance.