EGP · EastGroup Properties, Inc.

EastGroup Properties delivered strong Q1 2026 results, with total revenues rising to $190.3 million from $174.4 million year-over-year, driven by $190.2 million in real estate operations income, up from $172.6 million. Property net operating income (PNOI) expanded 11.0% to $140.0 million, reflecting $8.8 million growth from same properties, $2.7 million from developments/value-add, and $2.7 million from acquisitions. Same-property PNOI excluding lease terminations grew 7.5% on a straight-line basis to $132.8 million and 9.2% on cash basis to $129.8 million, supported by 36.8% straight-line rental rate increases on renewals/new leases covering 3.3% of square footage. The operating portfolio achieved 96.5% leased and 95.9% occupied at quarter-end, with average occupancy of 96.1% versus 95.8% last year. FFO per diluted share reached $2.34, up 8.8%, and $2.30 excluding involuntary conversion gains, up 8.5%. Net income benefited from $24.9 million gain on Fresno disposition but was tempered by higher depreciation ($55.5 million) and interest expense ($9.1 million). Balance sheet remains solid with debt-to-EBITDAre at 3.0x and interest coverage at 14.8x; equity raised via $120 million in common stock sales. CEO Marshall Loeb highlighted FFO exceeding expectations and development leasing momentum in high-growth markets, while President Reid Dunbar noted field execution amid uncertainty. Full-year guidance projects EPS $5.66-$5.86 and FFO $9.46-$9.66, signaling confidence. Strategic moves included acquiring a 177,000 sq ft Jacksonville property for $38.1 million (100% leased) and starting 586,000 sq ft developments for $84.1 million projected cost. A $1.55 quarterly dividend was declared, marking 185 consecutive distributions.