EastGroup Properties (EGP) Q1 2026 earnings summary

Executive summary

• Net income attributable to common stockholders rose 59% year-over-year to $94.6 million ($1.77 per diluted share) for Q1 2026, driven by higher property NOI and $25 million in gains from real estate sales.

• FFO per diluted share increased 8.8% year-over-year to $2.34, or $2.30 excluding one-time items, with strong portfolio performance and high occupancy rates above 96%.

• Same property NOI rose 9.2% on a cash basis and 7.5% on a straight-line basis, supported by high occupancy and robust leasing spreads.

• Portfolio was 96.5% leased and 95.9% occupied as of March 31, 2026, with rental rates on new and renewal leases up 36.8%.

• Diversified tenant base, with top 10 tenants accounting for 6.7% of annualized base rent.

Financial highlights

• Total revenues for Q1 2026 were $190.3 million, up from $172.6 million in Q1 2025.

• FFO per diluted share was $2.34, up from $2.15 in Q1 2025; FFO excluding certain gains was $2.30, up from $2.12.

• PNOI increased 11% to $140 million, with $8.8 million from same property operations, $2.7 million from new developments, and $2.7 million from acquisitions.

• Moody’s upgraded issuer rating to Baa1 with stable outlook.

• Dividend FFO payout ratio was 64% for Q1 2026.

Outlook and guidance

• 2026 FFO per share guidance midpoint raised to $9.52, a 6.4%–6.5% increase over 2025.

• Same property NOI growth (cash basis) projected at 5.7%–6.7% for 2026.

• Development starts for 2026 expected to total 1.8 million sq ft with $265 million in projected investment.

• Average month-end occupancy for the operating portfolio projected at 95.0%–96.0%.

• Speculative development leasing expected to contribute $0.04 of NOI in 2H 2026.