EastGroup Properties (EGP) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in Q4 and full year 2025, with FFO per share up 8.8% for the quarter and 7.7% for the year, and net income per diluted share rising to $4.87 for 2025, driven by higher property net operating income and lower interest expense.

• Maintained high occupancy and leasing activity, with quarter-end leasing at 97%, occupancy at 96.5%, and average quarterly occupancy increasing 40 basis points year-over-year.

• Rental rates on new and renewal leases increased 40.1% (straight-line) and 25.3% (cash basis) for 2025, with robust development pipeline and strategic acquisitions supporting long-term growth.

• Same-store occupancy reached 97.4%, with a highly diversified rent roll; top 10 tenants accounted for only 6.8% of rents.

• Continued expansion in key markets, including Las Vegas, San Antonio, and Northeast Dallas, and planned exit from Fresno to modernize the portfolio.

Financial highlights

• FFO per share was $2.34 for Q4 and $8.98 for 2025, both at the upper end of guidance, representing 7.7% annual growth, excluding gains on involuntary conversion.

• Net income attributable to common stockholders for 2025 was $257.4 million, up from $224.8 million in 2024.

• Same property PNOI (cash basis) increased 6.7% year-over-year; Q4 PNOI was $138.6 million, up 14.7% year-over-year.

• Dividend payout ratio was 66% of FFO, with a 3.3%–3.4% dividend yield and annualized dividend of $6.20 per share.

• Net interest expense savings achieved through lower bank credit facility balances and a favorable 4.13% rate on new $250 million unsecured term loans.

Outlook and guidance

• 2026 FFO per share guidance is $9.40–$9.60, representing 6.1% growth at the midpoint over 2025, with Q1 guidance at $2.25–$2.33 per share.

• Same property NOI growth projected at 5.6%–6.6% (cash basis); average occupancy expected between 95.0%–96.3%.

• Development starts projected at 1.7 million square feet with $250 million investment; $160 million in acquisitions and $70 million in dispositions planned.

• G&A expenses for 2026 are projected at $27 million, including $4 million in executive transition costs.

• $140 million in unsecured debt matures in Q4 2026, with plans to fund repayments and investments via bank facilities and $300 million in new debt issuance.