Eastgroup Properties Reports Significant Increase in Net Income and FFO

By Bobby Samwell • Wednesday, July 24 06:06 • Permanent Link

Eastgroup Properties, Inc. has reported its second-quarter 2024 results, revealing a notable increase in net income attributable to common stockholders. The company's net income per diluted share for the quarter was $1.14, a considerable rise from the $0.97 per diluted share reported for the same period in 2023.

Funds from operations (FFO) also showed a significant increase, excluding gain on involuntary conversion and business interruption claims. FFO per share for the second quarter of 2024 stood at $2.05, marking an 8.5% increase from the $1.89 per share reported in the second quarter of 2023.

The company's same property net operating income (NOI), excluding income from lease terminations, experienced a solid 5.3% increase both on a straight-line basis and on a cash basis for the second quarter of 2024 compared to the same period in 2023. Furthermore, the operating portfolio maintained a high level of occupancy, standing at 97.4% leased and 97.1% occupied as of June 30, 2024.

Rental rates on new and renewal leases also saw a substantial average increase of 59.7% on a straight-line basis during the quarter. Eastgroup Properties, Inc. expanded its portfolio by acquiring a 274,000 square foot property in Raleigh for approximately $53 million and commenced construction on a development project totaling 85,000 square feet with projected total costs of approximately $13 million.

For the six months ended June 30, 2024, diluted EPS was reported at $2.37, compared to $1.99 for the same period in 2023. FFO for the same period also exhibited an 8.5% increase, reaching $4.03 per share, compared to $3.71 per share for the same period in 2023.

Eastgroup Properties, Inc. declared a cash dividend of $1.27 per share in the second quarter of 2024 and has maintained or increased its dividend for 31 consecutive years, including 28 years of consecutive increases.

The company's financial strength and flexibility were underscored by its debt-to-total market capitalization of 16.9% at June 30, 2024, and its interest and fixed charge coverage ratio of 11.27x and 10.85x for the three and six months ended June 30, 2024, respectively.

Eastgroup Properties, Inc. also provided an outlook for 2024, estimating EPS to be in the range of $4.63 to $4.73 and FFO per share attributable to common stockholders to be in the range of $8.28 to $8.38.

Today the company's shares have moved -0.7% to a price of $189.95. Check out the company's full 8-K submission here.

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