EastGroup Properties (EGP) Q4 2024 earnings summary

Executive summary

• FFO per share rose 5.9% for Q4 and 7.9% for the year, excluding involuntary conversions, continuing a decade-long trend of quarterly FFO growth year-over-year.

• Net income attributable to common stockholders was $1.16 per diluted share for Q4 2024 (down from $1.35 in Q4 2023) and $4.66 for 2024 (up from $4.42 in 2023), with prior year periods benefiting from higher gains on real estate sales.

• Year-end leasing was 97.1% with occupancy at 96.1%; average occupancy for 2024 was 96.8%.

• Record square footage leased in the operating portfolio in Q4, with broad-based uptick in prospect activity across markets.

• Portfolio diversification improved, with top 10 tenants now representing 7.2% of rents, down 70 basis points from year-end 2023.

Financial highlights

• Q4 FFO per share was $2.15, up from $2.03 in Q4 2023; full year FFO per diluted share was $8.35, up from $7.79 in 2023.

• Same-Store NOI rose 3.4% for the quarter and 5.6% for the year, despite occupancy declines.

• Quarterly leasing spreads were 47% GAAP and 29% cash; year-end spreads were 53% GAAP and 36% cash.

• Q4 2024 revenues were $164.0M, up from $149.1M in Q4 2023; full year revenues were $640.2M, up from $570.6M in 2023.

• Debt-to-Total Market Capitalization at 15%, Debt-to-EBITDA at 3.4x, and Interest-and-Fixed-Charge Coverage Ratio at 11.5x.

Outlook and guidance

• 2025 FFO guidance: $2.05–$2.13 per share for Q1 and $8.80–$9.00 for the year, midpoints up 5.6% and 7.1% year-over-year, excluding involuntary conversion gains.

• 2025 assumptions: average occupancy midpoint of 96%, Cash Same-Property midpoint of 5.9%, $300M in new development starts, $150M in acquisitions, and $450M in capital proceeds (equity and revolver).

• Incremental NOI from development lease-up in 2025 is expected to be $15.8M, with about half already signed and the rest speculative, mostly in the back half of the year.