EastGroup Properties (EGP) Q3 2024 earnings summary

Executive summary

• Net income attributable to common stockholders rose 23.4% year-over-year to $169.1M for the nine months ended September 30, 2024, with diluted EPS up 14.1% to $3.49 per share.

• FFO per share for Q3 2024 was $2.13, up 9.2% year-over-year, excluding involuntary conversions, and FFO per diluted share for the nine months was $6.19, a 7.7% increase.

• Portfolio occupancy was 96.5% at quarter-end, with 96.9% leased and average quarterly occupancy at 96.7%, slightly down from the prior year.

• Property net operating income (PNOI) increased 13.4% year-over-year, driven by higher same property operations, new developments, and acquisitions.

• The company continues to focus on value creation through rent increases, acquisitions, and development, supported by geographic and revenue diversity.

Financial highlights

• Q3 2024 net income attributable to common stockholders was $55.2 million, up from $48.9 million in Q3 2023.

• FFO per share for Q3 was $2.13, up from $2.00 in Q3 2023, and FFO for the nine months ended September 30, 2024, was $6.16 per share, up 8.8% year-over-year.

• Cash same-store NOI rose 5.9% for the quarter and 6.3% year-to-date; same property PNOI excluding lease terminations grew 5.2% for the nine months.

• Quarterly re-leasing spreads were 51% GAAP and 35% cash; year-to-date spreads were 56% GAAP and 38% cash.

• Total revenues for the nine months ended September 30, 2024, were $474.3M, up from $417.2M year-over-year.

Outlook and guidance

• FFO per share guidance for Q4 is $2.13–$2.17, and $8.33–$8.37 for the year, a 2-cent per share increase from prior guidance.

• Full-year FFO midpoint guidance represents a 7.9% increase year-over-year, excluding insurance-related gains.

• Development starts for 2024 projected at $230–$260 million, with 1.6 to 1.9 million sq ft, focused on demand-driven projects.

• Average month-end occupancy for 2024 projected at 96.7% to 97.3%.

• Management expects liquidity sources and needs in the coming year to be consistent with the nine months ended September 30, 2024.