Eastgroup Properties ( (EGP) ) has released its Q4 earnings. Here is a breakdown of the information Eastgroup Properties presented to its investors.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
EastGroup Properties, Inc. is a real estate investment trust (REIT) focused on the development, acquisition, and operation of industrial properties in major Sunbelt markets throughout the United States, emphasizing the states of Texas, Florida, California, Arizona, and North Carolina.
In its latest earnings report, EastGroup Properties highlighted a mixed performance for the fourth quarter and the full year of 2024. Despite a decline in net income per share for the fourth quarter compared to the previous year, the company demonstrated robust growth in its funds from operations (FFO) and maintained a high occupancy rate across its portfolio.
For the fourth quarter of 2024, EastGroup reported a net income of $1.16 per diluted share, down from $1.35 in the same period of 2023, primarily due to the absence of real estate sales. However, the company’s FFO excluding involuntary conversion and business interruption claims increased by 5.9% to $2.15 per diluted share. The company’s operating portfolio was 97.1% leased, with rental rates on new and renewal leases surging by an average of 46.6% on a straight-line basis. For the full year, net income per share increased to $4.66 from $4.42 in 2023, and FFO grew by 7.9% to $8.31 per diluted share.
EastGroup continued its strategic expansion by acquiring six operating properties and 61.1 acres of development land for approximately $404 million in 2024. It also started construction on ten development projects totaling 1.6 million square feet. The company achieved an average occupancy rate of 96.8% for the year, reflecting strong demand in its markets.
Looking ahead, EastGroup is optimistic about 2025, forecasting an EPS range of $4.71 to $4.91 and projecting FFO per share between $8.80 and $9.00. The company expects to benefit from a recovering industrial market and plans to continue its growth strategy through strategic acquisitions and development projects, supported by a strong balance sheet and favorable market conditions.
