Q2 2025 Eastgroup Properties Inc Earnings Call Transcript
Key Points
- Funds from operations (FFO) were $2.21 per share, up 7.8% from the previous year, marking a long-term trend of quarterly FFO growth.
- Quarter-end leasing was strong at 97.1% with occupancy at 96%, demonstrating resilience in the industrial market.
- Cash same-store net operating income (NOI) rose 6.4% for the quarter despite lower occupancy.
- EastGroup Properties Inc (EGP) has a diversified rent roll with the top 10 tenants accounting for only 6.9% of rents, down 90 basis points from last year.
- The company invested $61 million in two new properties, expanding its market ownership in Raleigh to approximately 600,000 square feet.
- Average quarterly occupancy was 95.9%, down 110 basis points from the second quarter of 2024.
- Development pipeline leasing is progressing at a slower pace, impacting projected yields and development start projections.
- Larger square footage decision-making is slower, delaying expansions and affecting leasing momentum.
- The company reduced its 2025 development start projections by $35 million due to slower leasing activity.
- The market uncertainty, particularly related to tariffs, is impacting long-term capital decisions and leasing activity.
Good morning, ladies and gentlemen. And welcome to the EastGroup Properties second-quarter 2025 earnings conference call and webcast conference call. (Operator Instructions) This call is being recorded on Thursday, July 24, 2025. I will now hand over the call to Marshall Loeb, President and CEO, to begin the conference. Please go ahead.
Good morning, and thanks for calling in for our second-quarter 2025 conference call. As always, we appreciate your interest. Brent Wood, our CFO, is also on the call. Since we'll make forward-looking statements, we ask you listen to the following disclaimer.
Please note that our conference call today will contain financial measures such as PNOI and FFO that are non-GAAP measures as defined in Regulation G. Please refer to our most recent financial supplement and our earnings press release, both available on the Investor page of our website. and to our periodic reports
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