EastGroup Properties Inc. has announced its third-quarter results for 2026, reflecting a robust performance that highlights its resilience in the competitive real estate investment trust (REIT) sector. The company reported a net income attributable to common stockholders of $1.46 per diluted share, up from $1.26 per diluted share in the same quarter last year. This increase underscores EastGroup's effective management and strategic positioning in a challenging market.
In the filing dated October 21, 2026, EastGroup also reported that funds from operations (FFO), excluding gains on involuntary conversions and business interruption claims, rose to $2.45 per diluted share, marking a 7.9% increase from $2.27 per diluted share in the third quarter of 2025. These figures indicate a strong operational performance and a healthy growth trajectory for the company.
As of September 30, 2026, EastGroup's operating portfolio was 97.3% leased and 96.5% occupied, with an average month-end occupancy of 96.1% for the third quarter, compared to 95.7% in the same period last year. This stability in occupancy rates reflects the company's ability to attract and retain tenants in a competitive landscape.
Marshall Loeb, CEO of EastGroup, expressed optimism about the company's performance, stating, "The team and the portfolio performed ahead of expectations this quarter and so far this year. The leasing environment has been much more stable than headlines would lead one to expect." He emphasized the positive trends benefiting EastGroup's portfolio, which focuses on shallow bay and last-mile logistics.
Reid Dunbar, President, added that the company is confident in its development plans, raising its development starts guidance to $390 million for the year. He also noted an increase in acquisition guidance to $360 million, supported by a strong balance sheet. This proactive approach to capital deployment aims to create long-term value for shareholders.
EastGroup's quarterly highlights include a 5.3% increase in same property net operating income on a straight-line basis and a 7.1% increase on a cash basis compared to the same period last year. The company also reported an average rental rate increase of 36.3% on new and renewal leases, showcasing its ability to command higher rents in a competitive market.
Additionally, EastGroup announced that it entered into forward equity sale agreements for approximately $486 million at an initial weighted average forward price of $202.06 per share. This strategic move is expected to enhance the company's financial flexibility and support its growth initiatives.
In terms of acquisitions, EastGroup acquired two operating properties containing 531,000 square feet and 107 acres of development land for approximately $164 million. Subsequent to the quarter-end, the company acquired three more operating properties totaling 1,031,000 square feet and 25 acres of development land for approximately $262 million.
Furthermore, EastGroup declared its 187th consecutive quarterly cash dividend, increasing the dividend by $0.20 per share (12.9%) to $1.75 per share. This commitment to returning value to shareholders reinforces the company's strong financial position and operational success.
Looking ahead, EastGroup's management remains focused on leveraging its strengths to navigate the evolving real estate landscape. The filing does not specify what happens next, but the positive results and strategic initiatives suggest a promising outlook for the company.