EastGroup Properties Q2 EPS rises

Overview

• EastGroup Q2 EPS rises to $1.20, driven by higher PNOI and lower interest expenses

• FFO for Q2 increases 7.8% yr/yr, reflecting strong operational performance

• Co starts construction on new projects and acquires properties, expanding portfolio

Outlook

• EastGroup projects 2025 EPS between $4.76 and $4.90

• Company expects 2025 FFO per share between $8.89 and $9.03

• Economic uncertainty impacts leasing activities, says EastGroup

• EastGroup remains optimistic about long-term market trends

Result Drivers

• HIGHER RENTAL RATES - Rental rates on new and renewal leases increased an average of 44.4% on a straight-line basis

• PROPERTY INCOME GROWTH - Same property net operating income increased 6.6% on a straight-line basis

• STRATEGIC EXPANSION - Co started construction of development projects in Nashville and Atlanta totaling 469,000 square feet

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Eastgroup Properties Inc is $182.50, about 8.1% above its July 22 closing price of $167.78

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release: ID:nPn5Q0qG7a