Industrial real estate investment trust EastGroup Properties has declared a substantial 10.7% increase to its quarterly dividend, underscoring robust financial health and positive growth momentum. The company’s board of directors approved a raise to $1.55 per share, signaling strong confidence in sustained cash flow generation and operational stability.
Robust Financial and Operational Metrics
This dividend increase follows a period of exceptional operational performance, with second-quarter 2025 results exceeding expectations. EastGroup reported Funds from Operations (FFO) of $2.21 per diluted share, representing a 7.8% year-over-year increase. Revenue climbed 11.4% to $177.29 million, reflecting strong portfolio performance.
Key operational indicators demonstrated significant strength:
* Same Property NOI Growth: +6.6%
* Occupancy Rate: 96.0% with 97.1% leased
* Rental Rate Increases on New and Renewal Leases: +44.4%
This marks the company’s 183rd consecutive quarterly dividend distribution, highlighting its longstanding commitment to shareholder returns.
Should investors sell immediately? Or is it worth buying EastGroup Properties?
Strategic Expansion in Key Markets
The company continues to execute its expansion strategy across high-growth Sun Belt markets, maintaining a portfolio totaling 63.9 million square feet concentrated in Texas, Florida, California, Arizona, and North Carolina.
Recent strategic moves include:
* Acquisition of two industrial properties in Raleigh totaling 318,000 square feet for $61 million
* Commencement of two new development projects in Nashville and Atlanta encompassing 469,000 square feet with projected costs of $70 million
* $35 million upward adjustment to 2025 development project allocations to optimize capital deployment
Solid Financial Foundation Supporting Growth
EastGroup maintains a strong balance sheet with a debt-to-EBITDA ratio of 3.0x and $675 million in available capacity on its credit facility, providing ample financial flexibility to pursue additional growth opportunities.
Third-quarter 2025 guidance reinforces the positive outlook, with projected FFO per share between $2.22 and $2.30 and occupancy rates expected to remain above 95%. The new quarterly dividend translates to an annualized distribution rate of $6.20 per share, representing a dividend yield of approximately 3.7%.
Ad
EastGroup Properties Stock: Buy or Sell?! New EastGroup Properties Analysis from January 11 delivers the answer:
The latest EastGroup Properties figures speak for themselves: Urgent action needed for EastGroup Properties investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 11.
EastGroup Properties: Buy or sell? Read more here...
