EastGroup Properties announced strong second-quarter 2025 financial results, with FFO per diluted share increasing 5.7% to $2.21 compared to $2.09 in Q2 2024. FFO excluding gain on involuntary conversion and business interruption claims rose 7.8% to $2.21 per diluted share. For the first six months of 2025, FFO per diluted share increased 7.4% to $4.37.
Property Net Operating Income (PNOI) increased 13.5% to $15,409,000 in Q2 2025, and Same PNOI excluding lease termination income grew 6.4% on a cash basis. Rental rates on new and renewal leases signed during the quarter averaged a 44.4% increase on a straight-line basis. The company's balance sheet remains robust, with debt-to-total market capitalization at 14.2% and a debt to EBITDAre ratio of 3.0x at June 30, 2025.
EastGroup acquired Bell Creek Logistics Center Land in Tampa for $32,433,000 and Frisco Park 121 Land in Dallas for $17,795,000 for future development. Subsequent to quarter-end, the company acquired two fully leased business distribution buildings in Raleigh-Durham for a total of $61,400,000, expanding its presence in the Research Triangle Park area. The company also raised its full-year 2025 FFO per share guidance to a range of $8.89 to $9.03, representing a 7.3% increase over 2024 at the midpoint.
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