EastGroup Properties reports Q3 FFO $1.95 ex items, consensus $1.93

Reports Q3 revenue $146.53M, consensus $142.38M. Q3 FFO excludes gain on involuntary conversion and business interruption claims of 5c per share. Same Property Net Operating Income for the same property pool excluding income from lease terminations increased 6.0% on a straight-line basis and 6.9% on a cash basis for Q3 compared to the same period in 2022. Commenting on EastGroup’s performance, Marshall Loeb, CEO, stated, “Our team’s strong performance continues as evidenced by third quarter FFO per share rising 13%. The day-to-day industrial market remains resilient, producing a number of strong metrics such as our percent leased, quarterly releasing spreads and same store net operating income growth. We’re pleased with our operational results, especially given continued global economic unease and capital markets dislocation. This uncertainty is creating several outcomes such as greater leasing deliberations among our customers along with four consecutive quarters of materially declining market construction starts. We remain judicious with capital allocation and incremental risk, particularly in this continuing uncertain economic climate, which is one of the primary reasons we continually work to strengthen our balance sheet. Longer term, I remain bullish on the continuing external secular trends which benefit our shallow bay, last mile Sunbelt market portfolio.”