EastGroup reports high occupancy and faster industrial rent growth

EastGroup Properties, a US specialist in industrial real estate, reported third-quarter diluted earnings per share of 1.46 dollars, up from 1.26 dollars a year earlier. Its 21 October report said funds from operations excluding casualty gains reached 2.45 dollars per share, 7.9 percent above the 2.27 dollars recorded in the same period of 2025.

According to the EastGroup results release, same-property net operating income excluding lease-termination income increased by 7.1 percent on a cash basis. At the end of September, the operating portfolio was 97.3 percent leased and 96.5 percent occupied. Straight-line rent on new and renewal leases rose by an average 36.3 percent; those leases covered 4.6 percent of the operating portfolio's area.

Quarterly property net operating income increased by 10.1 percent, from 134.374 million to 147.890 million dollars. The company bought two operating properties and 107 acres of development land for 164 million dollars, then reported buying another three operating properties and 25 acres after the quarter for 262 million dollars. It also started four development projects and one redevelopment, covering a total 998 thousand square feet with an estimated cost of 162 million dollars.

The report states data in dollars and square feet; 1 acre is approximately 4047 square metres. High occupancy and rent growth may indicate strong demand in the company's markets, but interest costs, dilution from new shares and execution of the developments remain risks. The next important checkpoint is the 2027 leasing and development guidance. Related coverage is available on Prologis quarterly Core FFO and cross-border capital flows in European offices.