EASTGROUP PROPERTIES INC
For the period ended Jun 30, 2025. Filed Jul 23, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 23, 2025
EGP$193.81-0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-23.
0000049600-25-000065
Item 2. Management’s Discussion and Analysis of Financial Conditionand Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-23.
0000049600-25-000100
Item 2. Management’s Discussion and Analysis of Financial Conditionand Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 153 previous paragraphs and 161 current paragraphs.
71 unchanged; 75 reworded; 12 added; 3 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
During the six months ended June 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000. The Company did not recognize a gain or loss on this disposition.
Current report
For the six months ended June 30, 2025, PNOI increased by $30,224,000, or 13.4%, as compared to the same period in 2024. PNOI increased $13,460,000 due to same property operations, $11,949,000 due to 2024 acquisitions and $5,664,000 due to newly developed and value-add properties; PNOI decreased $238,000 due to operating properties sold in 2024 and 2025.
Current report
During the six months ended June 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000. The Company did not recognize a gain or loss on this disposition.
Current report
Other Assets, Net
Current report
•PNOI was $129,184,000 ($2.46 per diluted share) for the three months ended June 30, 2025, compared to $113,775,000 ($2.35 per diluted share) during the same period of 2024, which was an increase of $0.11 per diluted share. PNOI increased $7,303,000 due to same property operations, $5,618,000 due to 2024 acquisitions and $2,987,000 due to newly developed and value-add properties; PNOI decreased $65,000 due to operating properties sold in 2024 and 2025. Income recognized from straight-lining of rent increased by $1,532,000 for the three months ended June 30, 2025, as compared to the same period of 2024.
Current report
PNOI was $255,362,000 ($4.88 per diluted share) for the six months ended June 30, 2025, compared to $225,138,000 ($4.68 per diluted share) during the same period of 2024, which was an increase of $0.20 per diluted share. PNOI increased $13,460,000 due to same property operations, $11,949,000 due to 2024 acquisitions and $5,664,000 due to newly developed and value-add properties; PNOI decreased $238,000 due to operating properties sold in 2024 and 2025. Income recognized from straight-lining of rent increased by $2,872,000 for the six months ended June 30, 2025, as compared to the same period of 2024.
Current report
SUPPLEMENTAL U.S. FEDERAL INCOME TAX CONSIDERATIONS
Current report
The following discussion supplements and updates the disclosures under the heading “Certain United States Federal Income Tax Considerations” in the prospectus dated December 16, 2022, contained in our Registration Statement on Form S-3 (File No. 333-268821) filed with the Securities and Exchange Commission (the “SEC”) on December 16, 2022, (the “S-3 Tax Disclosure”) and as supplemented by the disclosures under the heading “Supplemental U.S. Federal Income Tax Considerations” in our Annual Report on Form 10-K filed with the SEC on February 12, 2025 (together with the S-3 Tax Disclosure, the “Existing Tax Disclosure”). Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in the Existing Tax Disclosure.
Current report
On July 4, 2025, H.R. 1, informally known as the One Big Beautiful Bill Act (the “OBBB”), was enacted. The OBBB makes major changes to the Code, including some provisions of the Code that affect the taxation of REITs and their investors. In particular:
Current report
•For taxable years beginning on or after January 1, 2026, the OBBB relaxed the REIT asset test requirement with respect to taxable REIT subsidiaries, providing that not more than 25% (relaxed from 20%) of the gross value of a REIT’s assets may be represented by securities of one or more taxable REIT subsidiaries.
Current report
•The OBBB permanently extended the section 199A pass-through qualified business income deduction, generally allowing certain individuals, trusts and estates to deduct 20% of the aggregate amount of qualified REIT dividends distributed by a REIT. This deduction was due to expire for tax years beginning after December 31, 2025.
Current report
To the extent the information set forth in the Existing Tax Disclosure is inconsistent with this supplemental information, this supplemental information supersedes the information in the Existing Tax Disclosure. This supplemental information is provided on the same basis and subject to the same qualifications as are set forth in the first six paragraphs of the S-3 Tax Disclosure as if those paragraphs were set forth in this Quarterly Report on Form 10-Q.
Removed paragraphs (3)
Previous report
During the three months ended March 31, 2025, the Company did not acquire any development land or value-add properties.
Previous report
Other Assets
Previous report
•PNOI was $126,178,000 ($2.43 per diluted share) for the three months ended March 31, 2025, compared to $111,363,000 ($2.32 per diluted share) during the same period of 2024. PNOI increased $6,331,000 due to 2024 acquisitions, $6,161,000 due to same property operations and $2,677,000 due to newly developed and value-add properties; PNOI decreased $177,000 due to operating properties sold in 2024. Straight-lining of rent increased Income from real estate operations by $3,564,000 and $2,224,000 for the three months ended March 31, 2025 and 2024, respectively.
Reworded paragraphs (75)
Previous wording
•international, national, regional and local economic conditions;
Current wording
•international, national, regional and local economic conditions and conflicts;
Previous wording
As of March 31, 2025, EastGroup owned 536 industrial properties in 12 states. As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 63,100,000 square feet consisting of 497 business distribution properties containing 57,800,000 square feet, 17 bulk distribution properties containing 4,400,000 square feet, and 22 business service properties containing 900,000 square feet.
Current wording
As of June 30, 2025, EastGroup owned 539 industrial properties in 12 states. As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 63,600,000 square feet consisting of 501 business distribution properties containing 58,300,000 square feet, 17 bulk distribution properties containing 4,400,000 square feet, and 21 business service properties containing 900,000 square feet.
Previous wording
During the three months ended March 31, 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions, and geopolitical conflict. While these factors did not have a significant adverse impact on EastGroup during the three months ended March 31, 2025, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company's leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor inflation and interest rates, as well as the uncertainty resulting from the overall regulatory and economic environment.
Current wording
During the six months ended June 30, 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions, and geopolitical conflict. While these factors did not have a significant adverse impact on EastGroup during the six months ended June 30, 2025, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company's leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor inflation and interest rates, as well as the uncertainty resulting from the overall regulatory and economic environment.
Previous wording
During the three months ended March 31, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.
Current wording
During the six months ended June 30, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.
Previous wording
During the three months ended March 31, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,043,871 shares of common stock with an initial weighted average forward price of $182.02 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time we entered into forward equity sale agreements. Also during the three months ended March 31, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into by issuing 385,253 shares of common stock in exchange for net proceeds of approximately $66,902,000.
Current wording
During the six months ended June 30, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time we entered into forward equity sale agreements. Also during the six months ended June 30, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into by issuing 801,320 shares of common stock in exchange for net proceeds of approximately $141,000,000.
Previous wording
The Company’s primary source of revenue is rental income. During the three months ended March 31, 2025, EastGroup executed new and renewal leases on 2,594,000 square feet (representing 4.4% of the operating portfolio’s total square footage of 59,101,000). For new and renewal leases signed during the first three months of 2025, average rental rates increased by 46.9%, as compared to the former leases on the same spaces.
Current wording
The Company’s primary source of revenue is rental income. During the six months ended June 30, 2025, EastGroup executed new and renewal leases on 4,532,000 square feet (representing 7.6% of the operating portfolio’s total square footage of 59,873,000). For new and renewal leases signed during the first six months of 2025, average rental rates increased by 45.8%, as compared to the former leases on the same spaces.
Previous wording
On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $1.14 for the three months ended March 31, 2025, compared to $1.22 for the same period of 2024, a 6.6% decrease. See the Company’s analysis of performance trends below for further details.
Current wording
On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $2.35 for the six months ended June 30, 2025, compared to $2.37 for the same period of 2024, a 0.8% decrease. See the Company’s analysis of performance trends below for further details.
Previous wording
Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire period from January 1, 2024 through March 31, 2025), increased 5.3% for the three months ended March 31, 2025, as compared to the same period in 2024.
Current wording
Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2024 through June 30, 2025), increased 5.9% for the six months ended June 30, 2025, as compared to the same period in 2024.
Previous wording
EastGroup’s operating portfolio was 97.3% leased and 96.5% occupied as of March 31, 2025, compared to 98.0% and 97.7%, respectively, at March 31, 2024. As of April 22, 2025, the operating portfolio was 96.9% leased and 95.9% occupied. As of March 31, 2025, leases approximating 6.9% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2025. This percentage was reduced to 5.8% as of April 22, 2025.
Current wording
EastGroup’s operating portfolio was 97.1% leased and 96.0% occupied as of June 30, 2025, compared to 97.4% and 97.1%, respectively, at June 30, 2024. As of July 22, 2025, the operating portfolio was 96.6% leased and 95.3% occupied. As of June 30, 2025, leases approximating 4.6% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2025. This percentage was reduced to 3.4% as of July 22, 2025.
Previous wording
During the three months ended March 31, 2025, EastGroup began construction of a redevelopment project, containing 262,000 square feet in Los Angeles. EastGroup also transferred two development projects (375,000 square feet) in two markets from Development and value-add properties to Real estate properties, with costs of $43,018,000 at the date of transfer. As of March 31, 2025, EastGroup’s development and value-add program consisted of 20 projects (4,030,000 square feet) located in 14 markets. The projected total investment for the development projects, which were collectively 25.2% leased as of April 22, 2025, is $573,200,000, of which $142,876,000 remained to be invested as of March 31, 2025.
Current wording
During the six months ended June 30, 2025, EastGroup acquired 94.5 acres of development land in two markets for $50,228,000. The Company also began construction of a redevelopment project and two development projects containing 731,000 square feet in three markets. EastGroup also transferred six development projects (1,160,000 square feet) in five markets from Development and value-add properties to Real estate properties, with costs of $151,928,000 at the date of transfer. As of June 30, 2025, EastGroup’s development and value-add program consisted of 18 projects (3,714,000 square feet) located in 13 markets. The projected total investment for the development projects, which were collectively 16.3% leased as of July 22, 2025, is $531,400,000, of which $157,835,000 remained to be invested as of June 30, 2025.
Previous wording
There were no operating property acquisitions, value-add property acquisitions or dispositions during the three months ended March 31, 2025.
Current wording
There were no operating property or value-add property acquisitions during the six months ended June 30, 2025.
Previous wording
The Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed in Liquidity and Capital Resources). As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. Moody’s Investors Service has assigned EastGroup an issuer rating of Baa2 with a stable outlook. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. For future debt issuances, the Company intends to issue primarily unsecured fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt or convertible bond markets in the future as a means to raise capital.
Current wording
The Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed in Liquidity and Capital Resources). As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. In May 2025, Moody’s Ratings affirmed EastGroup’s issuer rating of Baa2 and changed its rating outlook from stable to positive. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. For future debt issuances, the Company intends to issue primarily unsecured fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt or convertible bond markets in the future as a means to raise capital.
Previous wording
FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is not considered as an alternative to net income
Current wording
FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is not considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, nor is it a measure of the Company’s liquidity or indicative of funds available to provide for the Company’s cash needs, including its ability to make distributions. The Company’s key drivers affecting FFO are changes in PNOI (as discussed below), interest rates, the amount of leverage the Company employs and general and administrative expenses.
Previous wording
EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”; the Company also presents Same PNOI Excluding Income from Lease Terminations. Same Properties is defined as operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. For the three months ended March 31, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through March 31, 2025. The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.
Current wording
EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”; the Company also presents Same PNOI, Excluding Income from Lease Terminations. Same Properties is defined as operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. For the three and six months ended June 30, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through June 30, 2025. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.
Previous wording
The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three months ended March 31, 2025 and 2024.
Current wording
The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and six months ended June 30, 2025 and 2024.
Previous wording
PNOI was calculated as follows for the three months ended March 31, 2025 and 2024.
Current wording
PNOI was calculated as follows for the three and six months ended June 30, 2025 and 2024.
Previous wording
The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three months ended March 31, 2025 and 2024.
Current wording
The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended June 30, 2025 and 2024.
Previous wording
•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three months ended March 31, 2025 was $59,423,000 ($1.14 per basic and diluted share), compared to $58,644,000 ($1.23 per basic and $1.22 per diluted share) for the same period in 2024. See Results of Operations for further analysis.
Current wording
•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three and six months ended June 30, 2025 was $63,299,000 ($1.21 per basic and $1.20 per diluted share) and $122,722,000 ($2.35 per basic and diluted share), respectively, compared to $55,287,000 ($1.15 per basic and $1.14 per diluted share) and $113,931,000 ($2.37 per basic and diluted share) for the same periods in 2024. See Results of Operations for further analysis.
Previous wording
•The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. For the three months ended March 31, 2025, FFO was $2.15 per share compared
Current wording
•The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. For the three months ended June 30, 2025, FFO was $2.21 per diluted share compared with $2.09 per diluted share for the same period of 2024, an increase of 5.7%. For the six months ended June 30, 2025, FFO was $4.37 per diluted share compared with $4.07 per diluted share for the same period of 2024, an increase of 7.4%. FFO increased during the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to the increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense.
Previous wording
•For the three months ended March 31, 2025, PNOI increased by $14,815,000, or 13.3%, as compared to the same period in 2024. PNOI increased $6,331,000 due to 2024 acquisitions, $6,161,000 due to same property operations and $2,677,000 due to newly developed and value-add properties; PNOI decreased $177,000 due to operating properties sold in 2024.
Current wording
•For the three months ended June 30, 2025, PNOI increased by $15,409,000, or 13.5%, as compared to the same period in 2024. PNOI increased $7,303,000 due to same property operations, $5,618,000 due to 2024 acquisitions and $2,987,000 due to newly developed and value-add properties; PNOI decreased $65,000 due to operating properties sold in 2024 and 2025.
Previous wording
•The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2024 through March 31, 2025. Same PNOI, excluding income from lease terminations, increased 5.3% for the three months ended March 31, 2025, as compared to the same period in 2024.
Current wording
•The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2024 through June 30, 2025. Same PNOI, excluding income from lease terminations, increased 6.6% and 5.9% for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024.
Previous wording
•Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through March 31, 2025). Same property average occupancy was 96.0% for the three months ended March 31, 2025, compared to 97.5% for the same period of 2024.
Current wording
•Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through June 30, 2025). Same property average occupancy was 96.3% for the three months ended June 30, 2025, compared to 97.1% for the same period of 2024. Same property average occupancy was 96.2% for the six months ended June 30, 2025, compared to 97.3% for the same period of 2024.
Previous wording
•The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through March 31, 2025). The same property average rental rate was $8.55 per square foot for the three months ended March 31, 2025, compared to $8.08 per square foot for the same period of 2024.
Current wording
•The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through June 30, 2025). The same property average rental rate was $8.73 and $8.64 per square foot for the three and six months ended June 30, 2025, respectively, compared to $8.21 and $8.15 per square foot for the same periods of 2024.
Previous wording
•Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at March 31, 2025 was 96.5%. Quarter-end occupancy ranged from 96.1% to 97.7% over the previous four quarters ended March 31, 2024 to December 31, 2024.
Current wording
•Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at June 30, 2025 was 96.0%. Quarter-end occupancy ranged from 96.1% to 97.1% over the previous four quarters ended June 30, 2024 to March 31, 2025.
Previous wording
•Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (4.4% of the operating portfolio’s total square footage) averaged 46.9% for the three months ended March 31, 2025.
Current wording
•Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (3.2% of the operating portfolio’s total square footage) averaged 44.4% for the three months ended June 30, 2025. For the six months ended June 30, 2025, rental rate increases on new and renewal leases (7.6% of the operating portfolio’s total square footage) averaged 45.8%.
Previous wording
EastGroup’s Total Assets were $5,107,978,000 at March 31, 2025, an increase of $30,502,000 from December 31, 2024. Total Liabilities decreased $22,111,000 to $1,762,821,000, and Total Equity increased $52,613,000 to $3,345,157,000 during the same period. The following paragraphs explain these changes in additional detail.
Current wording
EastGroup’s Total Assets were $5,189,608,000 at June 30, 2025, an increase of $112,132,000 from December 31, 2024. Total Liabilities decreased $2,435,000 to $1,782,497,000, and Total Equity increased $114,567,000 to $3,407,111,000 during the same period. The following paragraphs explain these changes in additional detail.
Previous wording
Real estate properties increased $62,320,000 during the three months ended March 31, 2025, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) capital improvements at the Company’s properties; and (iii) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.
Current wording
Real estate properties increased $191,507,000 during the six months ended June 30, 2025, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) capital improvements at the Company’s properties; and (iii) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below. The increases were partially offset by the sale of an operating property.
Previous wording
There were no operating property acquisitions or dispositions during the three months ended March 31, 2025.
Current wording
There were no operating property acquisitions during the six months ended June 30, 2025.
Previous wording
During the three months ended March 31, 2025, the Company made capital improvements of $20,253,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $1,698,000 on development and value-add properties subsequent to transfer to Real estate properties; the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.
Current wording
During the six months ended June 30, 2025, the Company made capital improvements of $38,700,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $3,239,000 on development and value-add properties subsequent to transfer to Real estate properties; the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.
Previous wording
-28- investment in Development and value-add propertiesat March 31, 2025 was $686,102,000 compared to $674,472,000 at December 31, 2024. Total capital invested for development during the first three months of 2025 was $56,346,000, which consisted of improvement costs of $54,648,000 on development and value-add properties and costs of $1,698,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).
Current wording
EastGroup’s investment in Development and value-add propertiesat June 30, 2025 consisted of projects in lease-up and under construction of $373,565,000 and prospective development (primarily land) of $304,448,000. The Company’s total investment in Development and value-add propertiesat June 30, 2025 was $678,013,000 compared to $674,472,000 at December 31, 2024. Total capital invested for development during the first six months of 2025 was $158,709,000, which consisted of improvement costs of $105,242,000 on development and value-add properties, 50,228,000 for new land investments and costs of $3,239,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).
Previous wording
The Company capitalized internal development costs of $1,954,000 for the three months ended March 31, 2025, compared to $2,223,000 for the same period of 2024. The decrease was due to variations in timing and volume of development projects started in the three months ended March 31, 2025, as compared to the same period of 2024.
Current wording
The Company capitalized internal development costs of $1,717,000 and $3,671,000 for the three and six months ended June 30, 2025, respectively, compared to $2,032,000 and $4,255,000 for the same periods of 2024. The decrease was due to variations in timing and volume of development projects under construction.
Previous wording
The increases to Development and value-add properties were offset by the transfer of two development and value-add projects to Real estate properties during the three months ended March 31, 2025 with a total investment of $43,018,000 as of the date of transfer.
Current wording
During the six months ended June 30, 2025, the Company acquired 94.5 acres of development land in two markets for $50,228,000. Costs associated with this acquisition are included in the Development and Value-Add Properties table. The increases to Development and value-add properties were offset by the transfer of six development and value-add projects to Real estate properties during the six months ended June 30, 2025 with a total investment of $151,928,000 as of the date of transfer.
Previous wording
A summary of the Company's Development and Value-Add Properties for the three months ended March 31, 2025 follows:
Current wording
A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2025 follows:
Previous wording
(1) Represents cumulative costs at the date of transfer.
Current wording
(1)Represents cumulative costs at the date of transfer.
Previous wording
Accumulated depreciation on real estate, development and value-add properties increased $40,980,000 during the three months ended March 31, 2025, primarily due to depreciation expense of $42,308,000 offset by write-offs of assets.
Current wording
Accumulated depreciation on real estate, development and value-add properties increased $82,972,000 during the six months ended June 30, 2025, primarily due to depreciation expense of $85,401,000 partially offset by write-offs of assets.
Previous wording
Other assets decreased $5,407,000 during the three months ended March 31, 2025. See Note 9 in the Notes to Consolidated Financial Statements for further details.
Current wording
Other assets, net decreased $14,965,000 during the six months ended June 30, 2025. See Note 9 in the Notes to Consolidated Financial Statements for further details.
Previous wording
Unsecured bank credit facilities, net of debt issuance costs increased $250,000 during the three months ended March 31, 2025, mainly due to borrowings of $12,406,000, offset by repayments of $12,406,000, and debt issuance cost activity during the period. The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources.
Current wording
Unsecured bank credit facilities, net of debt issuance costs increased $503,000 during the six months ended June 30, 2025, mainly due to borrowings of $22,851,000, offset by repayments of $22,851,000, and debt issuance cost activity during the period. The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources.
Previous wording
Unsecured debt, net of debt issuance costs decreased $49,874,000 during the three months ended March 31, 2025, primarily due to the repayment of a $50,000,000 term loan and debt issuance cost activity during the period. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.
Current wording
Unsecured debt, net of debt issuance costs decreased $49,686,000 during the six months ended June 30, 2025, primarily due to the repayment of a $50,000,000 term loan and debt issuance cost activity during the period. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.
Previous wording
Accounts payable and accrued expenses increased $30,045,000 during the three months ended March 31, 2025. Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.
Current wording
Accounts payable and accrued expenses increased $53,163,000 during the six months ended June 30, 2025. Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.
Previous wording
Other liabilities decreased $2,532,000 during the three months ended March 31, 2025. Refer to Note 12 in the Notes to Consolidated Financial Statements for further details.
Current wording
Other liabilities decreased $6,415,000 during the six months ended June 30, 2025. Refer to Note 12 in the Notes to Consolidated Financial Statements for further details.
Showing the first 40 of 75 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•Weighted average shares outstanding increased by 4,234,000 shares on a diluted basis for the three months ended June 30, 2025, as compared to the same period of 2024. Weighted average shares outstanding increased by 4,151,000 shares on a diluted basis for the six months ended June 30, 2025, as compared to the same period of 2024.
Current report — wording carried from elsewhere
EastGroup entered into 74 leases with certain rent concessions on 2,087,000 square feet during the six months ended June 30, 2025, with total rent concessions of $4,796,000 over the terms of the leases. During the same period of 2024, the Company entered into 64 leases with certain rent concessions on 2,654,000 square feet with total rent concessions of $5,798,000 over the terms of the leases.
Current report — wording carried from elsewhere
-38- financing terms for similar properties. The cost of the properties acquired may be adjusted based on indebtedness assumed from the seller that is determined to be above or below market rates.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
(determined in accordance with GAAP) as an indication of the Company’s financial performance, nor is it a measure of the Company’s liquidity or indicative of funds available to provide for the Company’s cash needs, including its ability to make distributions. The Company’s key drivers affecting FFO are changes in PNOI (as discussed below), interest rates, the amount of leverage the Company employs and general and administrative expenses.
Previous report — wording carried elsewhere
-27- with $1.98 per share for the same period of 2024, an increase of 8.6%. FFO increased during the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to the increase in PNOI, the decrease in interest expense, and an increase in gain on involuntary conversion, partially offset by an increase in general and administrative expense.
Previous report — wording carried elsewhere
EastGroup’s investment in Development and value-add propertiesat March 31, 2025 consisted of projects in lease-up and under construction of $430,324,000 and prospective development (primarily land) of $255,778,000. The Company’s total
Previous report — wording carried elsewhere
March 31, 2025, which includes dividends payable on unvested restricted stock of $1,087,000, which are subject to continued service and will be paid upon vesting in future periods.