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JACKSON, MS-EastGroup Properties Inc., a leading developer of distribution space for small businesses in the 5,000-sf to 50,000-sf range, has closed the books on first quarter operations, showing a hefty balance sheet, the company reports.

The Mississippi-based REIT posted funds from operations of $15.7 million or 71 cents per share, up 10.9% from 64 cents in the comparable 2005 period. Net income was $5.5 million or 25 cents per share.

EastGroup president and CEO David H. Hoster II says in a prepared statement the first quarter included gains of $649,000 or three cents per share from land sales. FFO also increased due to higher property net operating income of $2.38 million, an 11.2% increase. Hoster attributes the increase in PNOI primarily to $1 million from 2005 acquisitions; $584,000 from newly developed properties; and $784,000 from same property growth.