East Properties(EGP) - 2025 Q1 - Quarterly Report

Portfolio Overview - As of March 31, 2025, EastGroup owned 536 industrial properties across 12 states, with a total portfolio of approximately 63.1 million square feet[109]. - The operating portfolio was 97.3% leased and 96.5% occupied as of March 31, 2025, compared to 98.0% and 97.7% respectively at March 31, 2024[119]. - Development and value-add properties totaled $686,102,000 as of March 31, 2025, compared to$674,472,000 at December 31, 2024[144]. Financial Performance - Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $1.14 per diluted share for the three months ended March 31, 2025, a decrease of 6.6$1.22 in the same period of 2024[117]. - Net Income attributable to EastGroup Properties, Inc. for Q1 2025 was $59,423,000 ($1.14 per share), a slight increase from $58,644,000 ($1.23 per share) in Q1 2024[156]. - Funds from Operations (FFO) attributable to Common Stockholders increased to $111,973,000 in Q1 2025, up from$94,870,000 in Q1 2024, reflecting a growth of 18.1%[137]. - Property Net Operating Income (PNOI) for Q1 2025 was $126,178,000, an increase of$14,815,000 or 13.3% compared to Q1 2024[143]. - Same Property Net Operating Income (PNOI) excluding income from lease terminations increased by 5.3% year-over-year, reaching $113,639,000 in Q1 2025[143]. Leasing Activity - During the three months ended March 31, 2025, EastGroup executed new and renewal leases on 2,594,000 square feet, representing 4.4$8.55 per square foot in Q1 2025, compared to $8.08 per square foot in Q1 2024, marking a rise of 5.8$573.2 million, with $142.9 million remaining to be invested as of March 31, 2025[121]. Capital and Financing - EastGroup's financing and equity issuances are supported by$675 million in unsecured bank credit facilities[123]. - The Company has a $625,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, and an interest rate of 5.160$50,000,000 unsecured bank credit facility with the same maturity date, with an interest rate of 5.235% as of March 31, 2025[175]. - The $625,000,000 facility includes a sustainability-linked pricing component, reducing the interest rate margin by four basis points to 73.5 basis points for the three months ended March 31, 2025[177]. - EastGroup had total immediate liquidity of approximately$882,933,000 as of March 31, 2025, including $20,515,000 in cash and cash equivalents[169]. Debt and Interest - Total Liabilities decreased by$22,111,000 to $1,762,821,000 during the same period[139]. - Scheduled principal payments on long-term unsecured debt total$1,460,000,000, with a weighted average interest rate of 3.38%[172]. - Total interest expense decreased to $8,025,000 in Q1 2025 from$10,061,000 in Q1 2024, primarily due to reduced unsecured debt activity[159]. - Average borrowings on unsecured bank credit facilities decreased to $820,000 in Q1 2025 from$2,704,000 in Q1 2024, with a weighted average variable interest rate of 5.24%[160]. - The weighted average interest rate for the Company's variable rate unsecured bank credit facilities was 5.20% as of March 31, 2025[196]. Shareholder Activity - During the three months ended March 31, 2025, EastGroup sold 33,120 shares of common stock at a weighted average price of $183.15 per share, generating net proceeds of$6,005,000[112]. - The Company entered into forward equity sale agreements for 1,043,871 shares at an initial weighted average forward price of $182.02 per share during the same period[182]. - As of April 22, 2025, approximately$523,593,000 of common stock remains available to be sold under the Current ATM Program[184]. Economic and Compliance Factors - The Company’s financial results are influenced by general economic conditions, which could affect tenants' ability to make lease payments and overall cash flows[201]. - The Company was in compliance with all financial debt covenants as of March 31, 2025[178].