EastGroup Properties announced its first-quarter 2025 financial results, reporting FFO per diluted share of $2.15, an 8.6% increase from $1.98 in the first quarter of 2024. FFO excluding gain on involuntary conversion and business interruption claims rose 7.1% to $2.12 per diluted share. Property Net Operating Income (PNOI) increased 13.3% to $14,815,000, driven by acquisitions and same property operations.
Same PNOI excluding income from lease terminations increased 5.2% on a cash basis, and rental rates on new and renewal leases averaged a 46.9% increase on a straight-line basis. The company's balance sheet remains strong, with debt-to-total market capitalization at 13.7% and a debt to EBITDAre ratio of 3.0x as of March 31, 2025. EastGroup refinanced a $100,000,000 term loan in January 2025, reducing its credit spread by 30 basis points, and repaid a $50,000,000 term loan in March 2025.
EastGroup revised its full-year 2025 FFO per share guidance to a range of $8.84 to $9.04, an increase from the initial guidance of $8.80 to $9.00. The company also adjusted its projected development starts for 2025 downward to $250 million from $300 million, reflecting a cautious approach to new construction. During the quarter, EastGroup began construction on a 262,000 square foot redevelopment project in Los Angeles with a projected cost of $7,700,000.
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