EastGroup Properties (EGP) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with FFO per share up 8.8% for the quarter and 7.7% for the year, reflecting portfolio quality and resilience in the industrial sector.

• Net income per diluted share rose to $1.27 in Q4 2025 from $1.16 in Q4 2024 and to $4.87 for 2025 from $4.66 in 2024, driven by higher property net operating income and lower interest expense.

• Leasing momentum improved significantly in Q4, with development leasing accounting for 52% of annual total square footage, marking the best quarter in over three years.

• Portfolio occupancy ended at 96.5%, with same-store occupancy at 97.4% and average quarterly occupancy up 40 bps year-over-year.

• Rent roll diversification increased, with top 10 tenants now representing only 6.8% of rents.

Financial highlights

• Q4 FFO per share was $2.34, and full-year FFO per share reached $8.98, both at the upper end of guidance and excluding gains on involuntary conversion.

• Q4 2025 net income attributable to common stockholders was $67.7 million; full year was $257.4 million.

• Q4 2025 PNOI was $138.6 million, up 14.7% year-over-year; full year PNOI was $528.3 million, up 13.6%.

• Dividend increased by $0.15 per share (10.7%) to $1.55 per quarter, annualized to $6.20 per share.

• Net interest expense savings achieved through lower credit facility balances and favorable rates on new $250M unsecured term loans at 4.13%.

Outlook and guidance

• 2026 FFO guidance: $2.25–$2.33 per share for Q1 and $9.40–$9.60 per share for the year, representing 8% and 6.1% growth at midpoints, excluding insurance gains.

• 2026 EPS guidance is $4.93–$5.13; same property net operating income growth expected at 5.6%–6.6% (cash basis); average occupancy projected at 95.0%–96.0%.

• Projecting strong cash same-property NOI growth of 6.1% for 2026, with expected same-property occupancy of 96.3%.

• Guidance assumes $250M in new development starts and $160M in acquisitions, including a Jacksonville property under contract.

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