EastGroup Properties Announces Fourth Quarter and Full Year 2025 Results

Quarter Highlights

Year Highlights

JACKSON, Miss., Feb. 4, 2026 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and twelve months ended December 31, 2025.

Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "I'm pleased with how we ended the year in terms of FFO per share exceeding our expectations, as well as the development leases we signed. Looking ahead, I'm excited with our recent wave of promotions. Creating the roles of President and Chief Operating Officer position us to capitalize on growth opportunities we believe the market will present. With limited supply and anticipated growing demand, we are excited about our pathway. Looking beyond this environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."

Reid Dunbar, President, added, "I'm excited for the opportunity to support Marshall and collaborate with our executive team as we continue to expand EastGroup's platform. With an exceptional team, a strong balance sheet, best-in-class portfolio and strategic land holdings, we are well positioned to capitalize on future growth opportunities across our markets."

EARNINGS PER SHARE

Three Months Ended December 31, 2025

On a diluted per share basis, earnings per common share ("EPS") were $1.27 for the three months ended December 31, 2025, compared to $1.16 for the same period of 2024. The increase in EPS was primarily due to the following:

The increase in EPS was partially offset by the following:

Twelve Months Ended December 31, 2025

Diluted EPS for the twelve months ended December 31, 2025 was $4.87 compared to $4.66 for the same period of 2024. The increase in EPS was primarily due to the following:

The increase in EPS was partially offset by the following:

FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME

Three Months Ended December 31, 2025

For the three months ended December 31, 2025, funds from operations attributable to common stockholders ("FFO") were $2.34 per diluted share compared to $2.15 per diluted share during the same period of 2024, an increase of 8.8%.

PNOI increased by $17,742,000, or 14.7%, during the three months ended December 31, 2025, compared to the same period of 2024. PNOI increased $9,518,000 due to same property operations (based on the same property pool), $5,123,000 due to 2024 and 2025 acquisitions, and $3,227,000 due to newly developed and value-add properties.

Same PNOI, Excluding Income from Lease Terminations, increased 8.5% on a straight-line basis for the three months ended December 31, 2025, compared to the same period of 2024; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.4%.

On a straight-line basis, rental rates on new and renewal leases signed during the three months ended December 31, 2025 (representing 3.7% of our total square footage) increased an average of 34.6%.

Twelve Months Ended December 31, 2025

FFO for the twelve months ended December 31, 2025, was $8.98 per diluted share compared to $8.35 per diluted share during the same period of 2024, an increase of 7.5%.

FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $8.95 per diluted share for the twelve months ended December 31, 2025, compared to $8.31 per diluted share for the same period of 2024, an increase of 7.7%.

PNOI increased by $63,350,000, or 13.6%, during the twelve months ended December 31, 2025, compared to the same period of 2024. PNOI increased $29,889,000 due to same property operations (based on the same property pool), $23,178,000 due to 2024 and 2025 acquisitions, and $11,504,000 due to newly developed and value-add properties.

Same PNOI, Excluding Income from Lease Terminations, increased 7.0% on a straight-line basis for the twelve months ended December 31, 2025, compared to the same period of 2024; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 6.7%.

On a straight-line basis, rental rates on new and renewal leases signed during the twelve months ended December 31, 2025 (representing 15.1% of our total square footage) increased an average of 40.1%.

The same property pool for the three and twelve months ended December 31, 2025 includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through December 31, 2025; this pool is comprised of properties containing 54,721,000 square feet.

FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."

ACQUISITIONS AND DISPOSITIONS

As previously announced, in December 2025, EastGroup acquired a recently developed building, known as EastGroup Point at Cheyenne, in the North Las Vegas submarket for $21,134,000. The building contains 101,000 square feet, is currently 100% leased to one tenant, and increases the Company's ownership in Las Vegas to 1,497,000 square feet, which is currently 100% leased.

Also, as previously announced, the Company is under contract to acquire a property in Jacksonville, located in the Southside industrial submarket, which includes two buildings totaling 177,000 square feet. The closing, originally expected in December 2025, is now anticipated to occur in the first half of 2026.

During the three months ended December 31, 2025, as detailed in a previous announcement, the Company closed on the acquisition of the following development land in two different markets:

In aggregate, during 2025, EastGroup acquired 739,000 square feet of operating properties for $143,099,000 and 300 acres of development land for $118,584,000.

In February 2026, the Company is scheduled to close on the disposition of a property containing six buildings totaling 398,000 square feet in Fresno, California, representing the Company's exit from the Fresno market as it continues to recycle capital into markets that better align with its portfolio and long-term strategy. The property is being sold for approximately $37,000,000 resulting in a gain of approximately $25,000,000, which is expected to be recorded in the first quarter of 2026. Gains on sales of real estate investments are excluded from FFO.

DEVELOPMENT AND VALUE-ADD PROPERTIES

During the fourth quarter of 2025, EastGroup began construction of three new development projects containing 547,000 square feet located in Atlanta and Orlando, with projected total costs of $72,500,000.

The development projects started during the twelve months ended December 31, 2025 are detailed in the table below:

Development Projects Started in 2025

Location

Size

Anticipated Conversion

Date

Projected Total

Costs

(Square feet)

(In thousands)

Dominguez(1)

Los Angeles, CA

262,000

11/2026

9,200

Horizon West 9

Orlando, FL

113,000

08/2026

15,900

Greenway 100 & 200

Atlanta, GA

289,000

04/2027

34,200

McKinney 5 & 6

Dallas, TX

161,000

08/2027

27,000

Station 24 1 & 2

Nashville, TN

180,000

08/2027

35,700

Braselton 1

Atlanta, GA

205,000

12/2027

23,500

North Ridge Trail

Orlando, FL

229,000

12/2027

33,100

Total Development Projects Started

1,439,000

178,600

(1) Represents a redevelopment project.

At December 31, 2025, EastGroup's development and value-add program consisted of 17 projects (3,473,000 square feet) in 12 markets. The projects, which were collectively 19% leased as of February 3, 2026, have a projected total cost of $499,900,000, of which $161,317,000 remained to be invested as of December 31, 2025.

During the fourth quarter of 2025, EastGroup transferred one project, known as Horizon West 5, to the operating portfolio. The Company transfers projects to the portfolio at the earlier of 90% occupancy or one year after completion. The project, which is located in Orlando, contains 85,000 square feet.

The development projects transferred to the operating portfolio during the twelve months ended December 31, 2025 are detailed in the table below:

Development and Value-Add Properties Transferred to

the Operating Portfolio in 2025

Location

Size

Conversion Date

Cumulative Cost as of

12/31/25

Percent Leased as

of 2/3/26

(Square feet)

(In thousands)

SunCoast 9

Fort Myers, FL

111,000

02/2025

16,385

Northeast Trade Center 1

San Antonio, TX

264,000

03/2025

28,814

100

Horizon West 6

Orlando, FL

87,000

04/2025

12,321

100

Basswood 3-5

Fort Worth, TX

351,000

05/2025

50,018

Crossroads 1

Tampa, FL

124,000

05/2025

19,350

100

Eisenhauer Point 10-12

San Antonio, TX

223,000

05/2025

28,642

Braselton 3

Atlanta, GA

115,000

07/2025

15,027

100

Gateway South Dade 1 & 2

Miami, FL

169,000

07/2025

34,511

Riverside 1 & 2

Atlanta, GA

284,000

07/2025

34,128

100

Cass White 1 & 2

Atlanta, GA

296,000

09/2025

34,614

Horizon West 5

Orlando, FL

85,000

12/2025

10,531

Total Projects Transferred

2,109,000

284,341

Projected Stabilized Yield(1)

7.2 %

(1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.

DIVIDENDS

EastGroup declared a cash dividend of $1.55 per share of common stock in the fourth quarter of 2025, which was paid on January 15, 2026. This was the Company's 184th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 3.4% based on the closing stock price of $180.11 on February 3, 2026.

FINANCIAL STRENGTH AND FLEXIBILITY

EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.7% at December 31, 2025. The Company's interest and fixed charge coverage ratio was 15.3x and 15.8x for the three and twelve months ended December 31, 2025, respectively. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x and 3.2x for the three and twelve months ended December 31, 2025, respectively. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.

In October 2025, EastGroup repaid two senior unsecured notes totaling $75,000,000 at maturity with a weighted average fixed interest rate of 3.98%. During the twelve months ended December 31, 2025, the Company repaid maturing debt totaling $145,000,000 with a weighted average effectively fixed interest rate of 3.13%.

During November 2025, as previously announced, the Company closed $250,000,000 senior unsecured term loans separated into two tranches with a weighted average effectively fixed interest rate of 4.13%. Tranche A provides a $100,000,000 unsecured term loan with a maturity date of April 30, 2030. Tranche B provides a $150,000,000 unsecured term loan with a maturity date of March 14, 2031. The loans require interest only payments, bearing interest at the annual rate of Daily Secured Overnight Financing Rate plus an applicable margin (0.85% as of February 3, 2026) based on the Company's senior unsecured long-term debt rating. The Company entered into interest rate swap agreements to convert the floating interest rate component to an effectively fixed interest rate for the entire term of the loans.

In January 2025, EastGroup refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%. In November 2025, the Company also entered into amendments related to five senior unsecured term loans totaling $475,000,000, which reduced the credit spread by 10 basis points on each loan.

During the fourth quarter of 2025, the Company did not have any sale or issuance transactions related to its continuous equity offering program. During the year ended December 31, 2025, the Company received gross proceeds of $267,010,000 from the program. As of February 3, 2026, EastGroup has $1,000,000,000 capacity available to issue shares through its equity offering program.

EXECUTIVE LEADERSHIP CHANGES

As previously announced, the following promotions became effective January 1, 2026:

Mr. Loeb stated, "With a combined EastGroup tenure of nearly 70 years, Reid, Staci, Brent and Michelle represent the exceptional talent we have at EastGroup, and their promotions reflect our confidence in their ability to grow and drive shareholder value. We've experienced meaningful growth and believe we are well positioned to continue executing our strategy and capitalizing on the strength of our portfolio."

An estimate of the impact to general and administrative expense has been included in the 2026 guidance as noted below.

OUTLOOK FOR 2026

We estimate EPS for 2026 to be in the range of $4.93 to $5.13 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.40 to $9.60. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.

EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.

The following table presents the guidance range for 2026:

Low Range

High Range

Q1 2026

Y/E 2026

Q1 2026

Y/E 2026

(In thousands, except per share data)

Net income attributable to common stockholders

62,946

263,432

67,214

274,110

Depreciation and amortization

56,928

238,167

56,928

238,167

Funds from operations attributable to common stockholders*

119,874

501,599

124,142

512,277

Weighted average shares outstanding — Diluted

53,351

53,387

53,351

53,387

Per share data (diluted):

Net income attributable to common stockholders

1.18

4.93

1.26

5.13

Funds from operations attributable to common stockholders

2.25

9.40

2.33

9.60

*This is a non-GAAP financial measure. Please refer to Definitions.

The following assumptions were used for the mid-point:

Metrics

Initial Guidance for Year

2026

Actual for Year 2025

FFO per share

$9.40 - $9.60

$8.98

FFO per share increase over prior year

5.8 %

7.5 %

FFO per share, excluding gain on involuntary conversion and business

interruption claims

$9.40 - $9.60

$8.95

FFO per share increase over prior year, excluding gain on involuntary

conversion and business interruption claims

6.1 %

7.7 %

Same PNOI growth: cash basis (1)

5.6% - 6.6% (2)

6.7 %

Average month-end occupancy — Operating portfolio

95.0% - 96.0%(3)

95.9 %

Average month-end occupancy — Same property pool

95.8% - 96.8% (2)

96.5 %

Development starts:

Square feet

1.7 million

1.4 million

Projected total investment

$250 million

$179 million

Operating property acquisitions

$160 million

$143 million

Operating property dispositions

(Potential gains on dispositions are not included in the projections)

$70 million

$4 million

Gross capital proceeds (4)

$300 million

$517 million

General and administrative expense (5)

$27.0 million

$24.0 million

(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.

(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,315,000 square feet.

(3) Represents estimated average month-end occupancy from January-December 2026. Average month-end occupancy for January-March 2026 is estimated to be between 95.2%-96.2%.

(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on the unsecured bank credit facilities.

(5) Approximately 32% of the estimated annual general and administrative expense is expected to be incurred in the first quarter of 2026, primarily due to accelerated expense for employees who are retirement-eligible under our equity incentive plans. Includes approximately $4.0 million related to executive officer transitions announced in the Company's press release dated December 16, 2025.

DEFINITIONS

Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.

FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.

PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup sometimes refers to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land including building and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, hold over rent, and base stop amounts. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.

FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company's financial performance.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.

Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.

The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.

CONFERENCE CALL

EastGroup will host a conference call and webcast to discuss the results of its fourth quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, February 5, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID: EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, February 5, 2026. The telephone replay will be available through February 12, 2026, and can be accessed by dialing 1-888-660-6345 (access code 26761#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.

SUPPLEMENTAL INFORMATION

Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.

COMPANY INFORMATION

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.

The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.

FORWARD-LOOKING STATEMENTS

The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:

All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.

The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.

CONTACT

[email protected]

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

REVENUES

Income from real estate operations

187,428

163,767

719,417

638,035

Other revenue

277

1,919

2,199

187,465

164,044

721,336

640,234

EXPENSES

Expenses from real estate operations

49,116

43,195

192,243

174,212

Depreciation and amortization

57,069

49,662

216,732

189,411

General and administrative

5,109

4,043

23,960

20,619

Indirect leasing costs

206

229

839

785

111,500

97,129

433,774

385,027

OTHER INCOME (EXPENSE)

Interest expense

(8,713)

(9,192)

(32,113)

(38,956)

Gain on sales of real estate investments

—

8,751

Other

499

931

2,009

2,805

NET INCOME

67,751

58,654

257,458

227,807

Net income attributable to noncontrolling interest in joint ventures

(14)

(56)

NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

67,737

58,640

257,402

227,751

Other comprehensive income (loss) — Interest rate swaps

(394)

8,013

(13,596)

(2,935)

TOTAL COMPREHENSIVE INCOME

67,343

66,653

243,806

224,816

BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

1.27

1.17

4.88

4.67

Weighted average shares outstanding — Basic

53,259

50,241

52,723

48,803

DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

1.27

1.16

4.87

4.66

Weighted average shares outstanding — Diluted

53,383

50,339

52,814

48,911

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

67,737

58,640

257,402

227,751

Depreciation and amortization

57,069

49,662

216,732

189,411

Company's share of depreciation from unconsolidated investment

124

125

Depreciation and amortization attributable to noncontrolling interest

(1)

(5)

Gain on sales of real estate investments

—

(8,751)

Gain on sales of non-operating real estate

—

(140)

—

(362)

FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS*

124,836

108,192

474,253

408,169

Gain on involuntary conversion and business interruption claims

—

(1,763)

(1,708)

FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS*

124,836

108,192

472,490

406,461

NET INCOME

67,751

58,654

257,458

227,807

Interest expense (1)

8,713

9,192

32,113

38,956

Depreciation and amortization

57,069

49,662

216,732

189,411

Company's share of depreciation from unconsolidated investment

124

125

EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")

133,564

117,539

506,427

456,299

Gain on sales of real estate investments

—

(8,751)

Gain on sales of non-operating real estate

—

(140)

—

(362)

EBITDA FOR REAL ESTATE ("EBITDAre")*

133,564

117,399

506,427

447,186

Debt

1,627,275

1,503,562

1,627,275

1,503,562

Debt-to-EBITDAre ratio*

3.0

3.2

3.4

EBITDAre*

133,564

117,399

506,427

447,186

Interest expense (1)

8,713

9,192

32,113

38,956

Interest and fixed charge coverage ratio*

15.3

12.8

15.8

11.5

DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS

Net income attributable to common stockholders

1.27

1.16

4.87

4.66

FFO attributable to common stockholders*

2.34

2.15

8.98

8.35

FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims*

2.34

2.15

8.95

8.31

Weighted average shares outstanding for EPS and FFO purposes — Diluted

53,383

50,339

52,814

48,911

(1) Net of capitalized interest of $5,841 and $5,026 for the three months ended December 31, 2025 and 2024, respectively; and $21,730 and $19,823 for the twelve months ended December 31, 2025 and 2024, respectively.

*This is a non-GAAP financial measure. Please refer to Definitions.

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)

(IN THOUSANDS)

(UNAUDITED)

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

NET INCOME

67,751

58,654

257,458

227,807

Gain on sales of real estate investments

—

(8,751)

Gain on sales of non-operating real estate

—

(140)

—

(362)

Interest income

(217)

(512)

(900)

(1,334)

Other revenue

(37)

(277)

(1,919)

(2,199)

Indirect leasing costs

206

229

839

785

Depreciation and amortization

57,069

49,662

216,732

189,411

Company's share of depreciation from unconsolidated investment

124

125

Interest expense (1)

8,713

9,192

32,113

38,956

General and administrative expense (2)

5,109

4,043

23,960

20,619

Noncontrolling interest in PNOI of consolidated joint ventures

(16)

(15)

(62)

PROPERTY NET OPERATING INCOME ("PNOI")*

138,609

120,867

528,345

464,995

PNOI from 2024 and 2025 acquisitions

(9,195)

(4,072)

(31,330)

(8,152)

PNOI from 2024 and 2025 development and value-add properties

(7,832)

(4,605)

(26,096)

(14,592)

PNOI from 2024 and 2025 operating property dispositions

—

(51)

(40)

(380)

Other PNOI

161

1,089

208

SAME PNOI (Straight-Line Basis)*

121,743

112,225

471,968

442,079

Lease termination fee income from same properties

(288)

(235)

(1,181)

(2,192)

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS

(Straight-Line Basis)*

121,455

111,990

470,787

439,887

Straight-line rent adjustments for same properties

(2,381)

(1,966)

(9,659)

(7,345)

Acquired leases — Market rent adjustment amortization for same properties

(410)

(513)

(1,849)

(2,179)

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS

(Cash Basis)*

118,664

109,511

459,279

430,363

(2) Net of capitalized development costs of $2,064 and $2,023 for the three months ended December 31, 2025 and 2024, respectively; and $7,451 and $8,181 for the twelve months ended December 31, 2025 and 2024, respectively.

*This is a non-GAAP financial measure. Please refer to Definitions.

SOURCE EastGroup Properties