EastGroup Properties, Inc. (NYSE: EGP) (the “Company”, “we”, “our”, “us” or “EastGroup”) announced today its recent business activity.
Commenting on the Company’s activity, Marshall Loeb, CEO, stated, “We continue to be pleased by the resiliency of the shallow bay industrial market. Occupancy and leasing trends are in line to slightly ahead of our expectations. We look forward to speaking with many of you next week at Nareit’s investor conference and for those we’ll miss, we’re available for any questions.”
In May 2025, EastGroup acquired an office complex on 66 acres in the I-75 East Tampa submarket, known by the Company as Bell Creek Logistics Center Land, for approximately $32,000,000. The Company plans to demolish the existing buildings to allow for the future phased development of five industrial buildings totaling approximately 553,000 square feet. Once complete, along with the development of two other properties under construction, the Company’s ownership of operating properties in Tampa will increase to approximately 5,413,000 square feet.
As of May 28, 2025, EastGroup’s portfolio was 96.8% leased and 95.7% occupied. During the second quarter of 2025 to date, rental rate increases on new and renewal leases signed during the period averaged 41.7% on a straight-line basis and 28.6% on a cash basis.
During the second quarter of 2025 to date, the Company has executed four leases on development properties totaling approximately 144,000 square feet.
Also during the second quarter of 2025 to date, the Company settled outstanding forward equity sale agreements that were previously entered into under its continuous common equity offering program by issuing 416,067 shares of common stock in exchange for net proceeds of approximately $74,098,000. As of May 28, 2025, EastGroup had 627,804 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from February to March 2026, for approximate net proceeds of $113,005,000, based on a weighted average forward price of $180.00 per share.
In May 2025, Moody’s Ratings affirmed EastGroup’s issuer rating of Baa2 and changed its rating outlook from stable to positive. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.
Management is scheduled to present at Nareit’s REITweek: 2025 Investor Conference on Wednesday, June 4, 2025 at 1:15 p.m. Eastern Time. The presentation will be broadcast live and is accessible through a registration link on the Company’s website at www.eastgroup.net. An online replay of the webcast will be available at the same location. During the conference, EastGroup executives may discuss the Company’s transaction activity, leasing environment, market trends and conditions, financial matters and other business that may be affecting the Company. Presentation materials that may be referenced during the EastGroup presentation are available on the “Investor Relations” page of the Company’s website.
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