Download PDF

1. Company Snapshot

1.a. Company Description

EastGroup Properties, Inc.(NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina.The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range).


The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets.EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.

Show Full description

1.b. Last Insights on EGP

EastGroup Properties' recent performance was driven by solid Q4 results, with earnings per share (EPS) of $1.16 slightly beating expectations. The company's high occupancy rates, demonstrated consistent funds from operations (FFO) growth, and strong balance sheet with low debt-to-EBITDA support its growth potential. Additionally, EastGroup's recent acquisitions and high-demand, supply-constrained Sunbelt markets position the company for resilience and growth. The company's 3.6% dividend yield also makes it an attractive buy-and-hold investment.

1.c. Company Highlights

2. EastGroup Properties Delivers Strong Q4 Results

EastGroup Properties reported a robust fourth quarter with funds from operations (FFO) of $2.34 per share, surpassing estimates of $2.33 per share. The company's FFO per share growth was 7.7% for the year, driven by a strong leasing performance, with quarter-end leasing at 97% and occupancy at 96.5%. The average quarterly occupancy was 96.2%, up 40 basis points from the fourth quarter of 2024. Quarterly re-leasing spreads were 35% GAAP and 19% cash for leases signed during the quarter.

Publication Date: Feb -08

📋 Highlights
  • FFO Growth:: FFO per share reached $2.34 in Q4 2025, up 8.8% quarter-over-quarter and 7.7% annually, with annual FFO at $8.98 per share.
  • Leasing Performance:: 97% quarter-end occupancy, 96.5% overall occupancy, and 35% GAAP re-leasing spreads for Q4 2025, with 52% of annual development leasing volume in Q4.
  • Development Momentum:: 2026 development leasing guidance projects $0.07 per share (speculative), with activity back-end weighted to Q3/Q4, leveraging 1,000+ acres of land bank.
  • Balance Sheet Strength:: $650 million in available credit, 14.7% debt-to-market cap, 3x debt-to-EBITDA, and $19 million drawn on credit facilities at year-end.
  • 2026 Guidance:: FFO per share projected at $2.25–$2.33 for Q1 2026 and $9.40–$9.60 annually, reflecting 8% QoQ and 6.1% YoY growth (excluding insurance gains).

Operational Highlights

The company's development leasing accounted for 52% of its annual total square footage in the fourth quarter, marking its best quarter of overall leasing in over three years. EastGroup Properties continues to benefit from a "flight to quality," with its portfolio occupancy outperforming broader markets. The company's development pipeline is leasing and maintaining projected yields, albeit at a slower pace, which has lowered development start projections from earlier in the year.

Guidance and Outlook

Looking ahead to 2026, EastGroup Properties has provided guidance for FFO per share in the range of $9.40 to $9.60 per share, representing a growth rate of 6.1% compared to the prior year. The company's guidance assumes $300 million in debt issuance and $0.07 of spec development leasing in 2026, which is back-end weighted. Analysts estimate next year's revenue growth at 9.2%.

Valuation and Metrics

With a P/E Ratio of 40.66 and a P/B Ratio of 2.88, the market appears to be pricing in a certain level of growth for EastGroup Properties. The company's dividend yield of 3.11% and free cash flow yield of 3.92% may be attractive to income-focused investors. The company's return on equity (ROE) of 7.33% and return on invested capital (ROIC) of 7.43% indicate a reasonable level of profitability.

Management Insights

According to Marshall Loeb, the CEO, "Market demand is picking up momentum, and we're hopeful it's sustainable." The company's management team is confident in its ability to drive FFO per share growth and raise portfolio quality, which should contribute to NAV growth for shareholders. As Brent Wood noted, "We're poised to move quickly and could accelerate our development starts" if market conditions continue to improve.

3. NewsRoom

Card image cap

Head-To-Head Contrast: Four Corners Property Trust (NYSE:FCPT) and EastGroup Properties (NYSE:EGP)

Feb -09

Source: defenseworld.net

Card image cap

From Silicon To Steel: The Value Trade Returns

Feb -08

Source: seekingalpha.com

Card image cap

EastGroup Properties, Inc. (EGP) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

Card image cap

Here's What Key Metrics Tell Us About EastGroup Properties (EGP) Q4 Earnings

Feb -05

Source: zacks.com

Card image cap

EastGroup Properties (EGP) Surpasses Q4 FFO and Revenue Estimates

Feb -05

Source: zacks.com

Card image cap

EastGroup Properties Announces Fourth Quarter and Full Year 2025 Results

Feb -04

Source: prnewswire.com

Card image cap

AE Wealth Management LLC Acquires 24,873 Shares of EastGroup Properties, Inc. $EGP

Jan -30

Source: defenseworld.net

Card image cap

Comparing Empire State Realty Trust (NYSE:ESRT) & EastGroup Properties (NYSE:EGP)

Jan -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.01%)

6. Segments

Real Estate

Expected Growth: 12%

EastGroup Properties, Inc.'s 12% growth in Real Estate is driven by increasing demand for industrial properties, e-commerce growth, and limited supply in key markets. Additionally, the company's strategic acquisitions, development projects, and strong operating performance contribute to its growth. Furthermore, the rising need for last-mile delivery facilities and cold storage spaces also supports the segment's growth.

Other Revenue

Expected Growth: 14%

EastGroup Properties' 14% Other Revenue growth is driven by increased lease termination fees, higher utility reimbursements, and growing demand for value-added services such as storage and parking. Additionally, the company's strategic acquisitions and expansions into high-growth markets have contributed to the revenue surge.

7. Detailed Products

Industrial Properties

EastGroup Properties, Inc. owns and operates a portfolio of industrial properties, including warehouses, distribution centers, and light industrial facilities.

Business Distribution Centers

EastGroup Properties, Inc. offers business distribution centers that provide flexible and efficient space for companies to manage their supply chain and logistics operations.

Freezer and Cooler Facilities

EastGroup Properties, Inc. provides specialized freezer and cooler facilities for companies requiring temperature-controlled storage and distribution of perishable goods.

Last-Mile Delivery Facilities

EastGroup Properties, Inc. offers last-mile delivery facilities that enable fast and efficient delivery of goods to customers.

Build-to-Suit Facilities

EastGroup Properties, Inc. develops build-to-suit facilities tailored to meet the specific needs of companies, including customized design, layout, and features.

8. EastGroup Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EastGroup Properties, Inc. operates in the industrial real estate market, which has a moderate threat of substitutes. While there are alternative options for customers, such as owning their own facilities, the convenience and flexibility of leasing from EastGroup Properties, Inc. mitigate this threat.

Bargaining Power Of Customers

EastGroup Properties, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's properties are often located in areas with high demand, giving it an upper hand in negotiations.

Bargaining Power Of Suppliers

EastGroup Properties, Inc. has a strong financial position, which gives it bargaining power over its suppliers. The company can negotiate favorable terms and prices for materials and services.

Threat Of New Entrants

The industrial real estate market has significant barriers to entry, including high capital requirements and regulatory hurdles. This limits the threat of new entrants and gives EastGroup Properties, Inc. a competitive advantage.

Intensity Of Rivalry

The industrial real estate market is competitive, with several established players. However, EastGroup Properties, Inc. has a strong market position and a diversified portfolio, which helps it to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.41%
Debt Cost 3.95%
Equity Weight 60.59%
Equity Cost 8.80%
WACC 6.89%
Leverage 65.04%

11. Quality Control: EastGroup Properties, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.5/10

Value: 3.3

Growth: 5.4

Quality: 6.5

Yield: 7.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
National Storage

A-Score: 6.4/10

Value: 5.7

Growth: 5.3

Quality: 7.1

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Terreno Realty

A-Score: 6.2/10

Value: 2.5

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
EastGroup Properties

A-Score: 6.2/10

Value: 1.8

Growth: 6.1

Quality: 6.6

Yield: 6.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
First Industrial Realty Trust

A-Score: 6.2/10

Value: 2.1

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 7.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
CubeSmart

A-Score: 6.0/10

Value: 3.4

Growth: 6.2

Quality: 5.7

Yield: 9.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

192.15$

Current Price

192.15$

Potential

-0.00%

Expected Cash-Flows