EastGroup Properties reported second-quarter 2026 results with diluted EPS of $1.40 and FFO of $2.36 per diluted share, up from $1.20 and $2.21 respectively a year earlier. Property net operating income (PNOI) for the quarter was $142.9 million and same-property PNOI, excluding lease termination income, rose 6.2% on a straight-line basis and 8.3% on a cash basis year-over-year. The company also completed dispositions and acquisitions, transferred four development projects into operations, and raised equity under its continuous offering program.

Financial Highlights

  • Diluted earnings per share (EPS): $1.40 for Q2 2026, up from $1.20 in Q2 2025; six-month EPS $3.17 vs. $2.35 prior year.
  • Funds from operations (FFO) attributable to common stockholders: $2.36 per diluted share for Q2 2026 versus $2.21 in Q2 2025; six-month FFO $4.70 vs. $4.37.
  • Property Net Operating Income (PNOI): $142,916,000 for Q2 2026 and $282,936,000 for the six months ended June 30, 2026.
  • Gain on sales of real estate investments: $5.189 million recognized in Q2 2026 (excluded from FFO); six-month gains of $30.074 million.
  • Balance sheet and coverage metrics: debt-to-total market capitalization 12.9% at June 30, 2026; interest and fixed charge coverage ratios of 15.1x (Q2) and 14.9x (six months); debt-to-EBITDAre ~3.0x.

Business Highlights

  • Leasing and portfolio performance: Operating portfolio 96.8% leased and 95.6% occupied as of June 30, 2026; average month-end occupancy for Q2 2026 was 95.6% (95.9% in Q2 2025).
  • Rent growth: Rental rates on new and renewal leases increased an average of 34.1% on a straight-line basis for leases signed in Q2 2026 (representing 4.5% of portfolio sq. ft.).
  • Development activity: Transferred four development projects (669,000 sq. ft., collectively 100% leased as of July 21) into the operating portfolio; started construction on two projects in Charlotte and Houston totaling 347,000 sq. ft. with projected costs of ~$39.2 million.
  • Pipeline and starts: Development and value-add program comprised 17 projects (3.175 million sq. ft.) across 12 markets, 22% leased as of July 21, with projected total cost of $486.8 million and $175.1 million remaining to invest as of June 30.
  • Transactions and capital activity: Raised approximately $160 million via forward equity agreements under continuous offering (initial weighted average forward price $203.15); subsequent acquisition—143,000 sq. ft. Phoenix property for ~$28 million; under contract for ~388,000 sq. ft. in Austin for ~$83 million.

Original SEC Filing:

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