EastGroup Properties has delivered a compelling third-quarter performance marked by record funds from operations growth alongside strategic operational adjustments. The industrial REIT narrowly missed earnings per share projections while exceeding revenue forecasts, presenting investors with a nuanced financial picture. Concurrently, the company is moderating its development pipeline—a move market observers are analyzing for strategic implications.
Financial Performance Highlights
The real estate investment trust demonstrated significant operational strength with FFO per share reaching $2.27, representing a 6.6% year-over-year increase. Revenue figures came in at $182.14 million, surpassing market expectations. However, the company’s earnings per share of $2.27 fell just short of the $2.28 consensus estimate among analysts.
Portfolio metrics remained robust, with leased occupancy standing at 96.7% and occupied occupancy at 95.9%. The REIT achieved substantial pricing power on new and renewal leases, recording an average rental rate increase of 35.9%.
Development Strategy Adjustment
A notable development in EastGroup’s outlook involves revised projections for development starts. The company has downwardly adjusted its 2025 development start forecast from $215 million to $200 million, attributing this moderation to a measured leasing pace for new developments.
Should investors sell immediately? Or is it worth buying EastGroup Properties?
Despite this adjustment, management expressed confidence in the company’s positioning. “We have seen an increase in prospect activity,” company leadership noted, emphasizing that their strategic focus on Sunbelt markets continues to present significant growth opportunities.
Technical Indicators and Market Performance
From a technical perspective, EastGroup’s shares are displaying bullish signals:
- Closing price of $175.93, reflecting a 0.80% gain
- Golden Cross formation confirmed with 50-day average ($170.87) above 200-day average ($168.22)
- Immediate resistance identified at $176.12 with support at $168.17
Forward-Looking Projections
Looking ahead, EastGroup Properties maintains optimistic guidance. Full-year 2025 projections anticipate FFO growth of 7.3%, with the fourth quarter expected to deliver the strongest performance at 7.9% growth. The company forecasts achieving its highest occupancy rate of the year during the final quarter, suggesting continued operational momentum despite moderated development activity.
Ad
EastGroup Properties Stock: Buy or Sell?! New EastGroup Properties Analysis from February 3 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 February 3.
EastGroup Properties: Buy or sell? Read more here...
