Net Income Attributable to Common Stockholders of $1.77 Per Diluted Share for First Quarter 2026 Compared to $1.14 Per Diluted Share for First Quarter 2025 (Gains on Sales of Real Estate Investments were $25 Million, of $0.46 Per Diluted Share, in First Quarter 2026; There Were No Sales in First Quarter 2025)
Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.30 Per Diluted Share for First Quarter 2026 Compared to $2.12 Per Diluted Share for First Quarter 2025, an Increase of 8.5%
Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 7.5% on a Straight-Line Basis and 9.2% on a Cash Basis for First Quarter 2026 Compared to the Same Period in 2025
Operating Portfolio was 96.5% Leased and 95.9% Occupied as of March 31, 2026; Average Occupancy of Operating Portfolio was 96.1% for First Quarter 2026 as Compared to 95.8% for First Quarter 2025
Rental Rates on New and Renewal Leases Increased an Average of 36.8% on a Straight-Line Basis
Acquired an Operating Property in Jacksonville Containing 177,000 Square Feet for Approximately $38 Million
Sold an Operating Property in Fresno Totaling 398,000 Square Feet for Approximately $37 Million (Gains of $25 Million Not Included in FFO)
Raised Approximately $120 Million Pursuant to the Company's Continuous Common Equity Offering Program at a Weighted Average Price of $194.25
Transferred Two Development Projects Containing 562,000 Square Feet to the Operating Portfolio
Started Construction of Four Development Projects, Including an Expansion of a Current Building, Totaling 586,000 Square Feet with Projected Total Costs of Approximately $84 Million
Signed 11 Leases on Active Development and First Generation Development Properties From January 1, 2026 through April 21, 2026, Totaling Approximately 813,000 Square Feet
JACKSON, Miss., April 22, 2026 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE:EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three months ended March 31, 2026.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "I'm pleased with how we began the year in terms of FFO per share exceeding our expectations, as well as the development leases we signed. With limited supply and anticipated growing demand, we are excited about our pathway. Looking beyond this environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
Reid Dunbar, President, added, "Our solid first quarter results reflect the strength and focus of our teams in the field, who continued to execute at a high level amid ongoing global uncertainty. Executive leadership transitions are progressing smoothly, and we are pleased with the momentum we've built to start the year."
EARNINGS PER SHARE
Three Months Ended March 31, 2026On a diluted per share basis, earnings per common share ("EPS") were $1.77 for the three months ended March 31, 2026, compared to $1.14 for the same period of 2025. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $140,020,000 ($2.61 per diluted share) for the three months ended March 31, 2026, as compared to $126,178,000 ($2.43 per diluted share) for the same period of 2025, which was an increase of $0.18 per diluted share.
EastGroup recognized gains on sales of real estate investments of $24,885,000 ($0.46 per diluted share) during the three months ended March 31, 2026. There were no sales during the three months ended March 31, 2025.
The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $55,497,000 ($1.04 per diluted share) for the three months ended March 31, 2026, as compared to $52,520,000 ($1.01 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share.
Interest expense was $9,079,000 ($0.17 per diluted share) for the three months ended March 31, 2026, as compared to $8,025,000 ($0.15 per diluted share) for the same period of 2025, which was an increase of $0.02 per diluted share.
Weighted average shares outstanding increased by 1,518,000 shares on a diluted basis for the three months ended March 31, 2026, as compared to the same period of 2025.
FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended March 31, 2026For the three months ended March 31, 2026, funds from operations attributable to common stockholders ("FFO") were $2.34 per diluted share compared to $2.15 per diluted share during the same period of 2025, an increase of 8.8%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $2.30 per diluted share for the three months ended March 31, 2026, compared to $2.12 per diluted share for the same period of 2025, an increase of 8.5%.
PNOI increased by $13,842,000, or 11.0%, during the three months ended March 31, 2026, compared to the same period of 2025. PNOI increased $8,783,000 due to same property operations (based on the same property pool), $2,703,000 due to newly developed and value-add properties, and $2,658,000 due to 2025 and 2026 acquisitions.
Same PNOI, Excluding Income from Lease Terminations, increased 7.5% on a straight-line basis for the three months ended March 31, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 9.2%.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended March 31, 2026 (representing 3.3% of our total square footage) increased an average of 36.8%.
The same property pool for the three months ended March 31, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through March 31, 2026; this pool is comprised of properties containing 58,315,000 square feet.
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
As previously announced, in February 2026, the Company closed on the acquisition of Legend Point Logistics Crossing 2 & 3 in Jacksonville for $38,130,000. The property includes two buildings totaling 177,000 square feet which are 100% leased to five tenants.
Also, as previously announced, in February 2026, the Company closed on the disposition of Shaw Commerce Center in Fresno, California containing six buildings totaling 398,000 square feet, representing the Company's exit from the Fresno market. The property was sold for $37,000,000 resulting in a gain of $24,885,000.
Subsequent to March 31, 2026, EastGroup sold Beach Commerce Center, a 46,000 square foot building in Jacksonville. The property was sold for approximately $7,000,000 resulting in a gain of approximately $5,200,000, which will be recorded in the second quarter of 2026.
Gains on sales of real estate investments are excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the first quarter of 2026, EastGroup began construction of four new development projects containing 586,000 square feet located in four markets, with projected total costs of $84,100,000.
The development projects started during the three months ended March 31, 2026 are detailed in the table below:
Development Projects Started in the First Quarter of 2026
Location
Size
Anticipated Conversion Date
Projected Total Costs
(Square feet)
(In thousands)
Country Club 5 Expansion (1)
Tucson, AZ
100,000
04/2027
$
10,600
Crossroads 3
Tampa, FL
156,000
10/2027
26,900
Grand West Crossing 3 & 4
Houston, TX
128,000
02/2028
18,900
Schertz Summit Park 1 & 2
San Antonio, TX
202,000
04/2028
27,700
Total Development Projects Started
586,000
$
84,100
(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.
Subsequent to March 31, 2026, the Company began construction of Skyway 3 in Charlotte, which is anticipated to contain 156,000 square feet, with projected total costs of $20,400,000.
At March 31, 2026, EastGroup's development and value-add program consisted of 19 projects (3,497,000 square feet) in 13 markets. The projects, which were collectively 30% leased as of April 21, 2026, have a projected total cost of $508,100,000, of which $186,807,000 remained to be invested as of March 31, 2026.
During the first quarter of 2026, EastGroup transferred two projects to the operating portfolio. The Company transfers projects to the portfolio at the earlier of 90% occupancy or one year after completion.
The development projects transferred to the operating portfolio during the three months ended March 31, 2026 are detailed in the table below:
Development and Value-Add Properties Transferred to the Operating Portfolio in the First Quarter of 2026
Location
Size
Conversion Date
Cumulative Cost as of 3/31/26
Percent Leased as of 4/21/26
(Square feet)
(In thousands)
Denton 35 Exchange 1 & 2
Dallas, TX
244,000
02/2026
$
32,998
47
%
Skyway 1 & 2
Charlotte, NC
318,000
03/2026
36,304
54
%
Total Projects Transferred
562,000
$
69,302
51
%
Projected Stabilized Yield (1)
7.3 %
(1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.
Subsequent to March 31, 2026, the Company transferred three development projects (407,000 square feet) in Houston and Austin, which were collectively 91% leased as of April 21, 2026, to the operating portfolio.
DIVIDENDS
EastGroup declared a cash dividend of $1.55 per share of common stock in the first quarter of 2026, which was paid on April 15, 2026. This was the Company's 185th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 3.1% based on the closing stock price of $201.79 on April 21, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.0% at March 31, 2026. The Company's interest and fixed charge coverage ratio was 14.8x for the three months ended March 31, 2026. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x for the three months ended March 31, 2026. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
As previously announced, in February 2026, Moody's Ratings upgraded EastGroup's issuer rating to Baa1, outlook stable from Baa2, outlook 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.
During the first quarter of 2026, EastGroup sold 365,620 shares of common stock directly through its sales agents under its continuous common equity offering program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of approximately $69,300,000.
Also during the three months ended March 31, 2026, the Company entered into forward equity sale agreements with respect to 252,136 shares of common stock with an initial weighted average forward price of $196.16 per share and approximate gross sales proceeds of $49,459,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of April 21, 2026, EastGroup had 252,136 shares of common stock available for settlement prior to the expiration of the applicable settlement periods in March 2027, for approximate net proceeds of $48,914,000, based on a weighted average forward price of $194.00 per share.
COMPANY UPDATE
The Company is pleased to announce the hiring of Jim Traynor as Executive Vice President, Central Region, effective April 27, 2026. Mr. Traynor brings more than 15 years of experience in real estate. Prior to joining the Company, he most recently served as Managing Director and Partner at Foundry Commercial, where he was responsible for all development and investments throughout Dallas-Fort Worth. In his role as head of EastGroup's Central Region, Mr. Traynor will be responsible for the Company's operations in our Texas, Louisiana and Tennessee markets. He is a graduate of the University of Central Florida and also graduated from the Hough Graduate School of Business at the University of Florida with a master's degree in real estate.
OUTLOOK FOR 2026
We estimate EPS for 2026 to be in the range of $5.66 to $5.86 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.46 to $9.66. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2026:
Low Range
High Range
Q2 2026
Y/E 2026
Q2 2026
