EastGroup Properties Surpasses Revenue Expectations Amid Economic Uncertainty

EastGroup Properties reported Q2 revenue of $177.29 million, exceeding the consensus estimate of $176.01 million. CEO Marshall Loeb attributed the success to the team's efforts, quality properties, and strategic market positioning. Despite global trade concerns, Loeb expressed confidence in the company's long-term prospects and diversified tenant base. Wall Street analysts forecast an average target price of $186.81 with an upside of 10.17% from the current price.

EastGroup Properties (EGP) has reported robust second-quarter (Q2) earnings, exceeding analysts' expectations. The company reported $177.29 million in revenue for the quarter ended June 2025, a year-over-year increase of 11.4% [1]. This performance was a surprise of +0.99% over the Zacks Consensus Estimate of $175.54 million. The company's earnings per share (EPS) for the period were $2.21, up from $1.14 a year ago, representing a surprise of +0.45% over the consensus estimate of $2.20 [1].

CEO Marshall Loeb attributed the company's success to the team's efforts, quality properties, and strategic market positioning. Despite global trade concerns, Loeb expressed confidence in the company's long-term prospects and diversified tenant base [2]. The company's balance sheet remains strong, with a debt-to-total market capitalization ratio of 14.2% and an unadjusted debt-to-EBITDA ratio of 3.0x [3].

Wall Street analysts forecast an average target price of $186.81, with an upside of 10.17% from the current price [1]. The company's shares have returned -3.4% over the past month versus the Zacks S&P 500 composite's +5.9% change [1].

Key Metrics:

- Revenue: $177.29 million, up 11.4% year-over-year, exceeding the average estimate of $175.22 million [1].
- Other Revenue: $0.01 million, down 99.3% year-over-year, compared to the average estimate of $0.13 million [1].
- Net Earnings Per Share (Diluted): $1.20, up from the average estimate of $1.19 [1].
- Occupancy: 96% at the end of Q2, down 110 basis points from Q2 2024 [3].
- Development Starts: $215 million for 2025, down from $250 million in Q1 [3].

Outlook:

EastGroup Properties estimates FFO per share for the third quarter to be in the range of $2.22 to $2.30 per share, with an average month-end occupancy range of 95.3% to 96.1% [3]. For the year, the company estimates FFO per share in a range of $8.89 to $9.03, with the midpoint up $0.02 per share from the previous guidance [3].

References:

[1] https://www.nasdaq.com/articles/eastgroup-properties-egp-reports-q2-earnings-what-key-metrics-have-say
[2] https://eastgroup.net/eastgroup-properties-announces-second-quarter-2025-results/
[3] https://seekingalpha.com/news/4471703-eastgroup-outlines-215m-in-2025-development-starts-as-leasing-slows-balance-sheet-remains