EastGroup raises dividend 12.9% and lifts FFO outlook as industrial leasing stays strong

EastGroup Properties raised its dividend by nearly 13% and its full-year outlook after a quarter in which the industrial landlord's earnings and occupancy both improved.

Net income attributable to common stockholders rose to $1.46 a diluted share from $1.26 a year earlier, according to the earnings release EastGroup filed with an 8-K on Wednesday. Funds from operations, excluding a gain on an involuntary conversion and business interruption claims, increased 7.9% to $2.45 a share.

The board declared the REIT's 187th consecutive quarterly dividend and raised it by 20 cents, or 12.9%, to $1.75 a share.

Leasing

Rents on new and renewal leases rose an average of 36.3% on a straight-line basis. Same-property net operating income, excluding lease termination income, grew 5.3% on a straight-line basis and 7.1% on a cash basis.

The operating portfolio was 97.3% leased and 96.5% occupied at Sept. 30, and average month-end occupancy rose to 96.1% from 95.7%.

"The leasing environment has been much more stable than headlines would lead one to expect," CEO Marshall Loeb said in the release.

Growth plans

EastGroup raised its 2026 FFO guidance to $9.62 to $9.68 a share from $9.52 to $9.66 in July. President Reid Dunbar said the company lifted planned development starts to $390 million for the year and acquisition guidance to $360 million.

During the quarter, it entered into forward equity sale agreements for about $486 million and acquired two operating properties and 107 acres of development land for about $164 million. After quarter-end it bought three more operating properties and land for about $262 million.

By the numbers

• EPS: $1.46, vs. $1.26
• FFO excluding one-time gains: $2.45, up 7.9%
• Quarterly dividend: $1.75, up 12.9%
• Portfolio leased: 97.3%
• 2026 FFO guidance: $9.62 to $9.68

Sources

1. EastGroup Properties, Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0000049600-26-000047

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