Warehouse landlords are raising rents, cutting deals, and collecting checks while most investors overlook the industrial corner of the REIT market. Four names stand out, but one carries a risk hiding behind its highest yield.
EastGroup Properties (NYSE:EGP) reported third-quarter results on October 21. Funds from operations (FFO) came in at $2.45 per diluted share, up 7.9% year over year, and the quarterly dividend went up 12.9% to $1.75. Warehouse landlords are setting the price again, and three things are driving demand. The first is e-commerce. The second is advanced manufacturing moving back to the U.S. The third is inventory: Prologis (NYSE:PLD) says its customers are running lean on inventory and have mostly used up spare capacity, so as their business grows, they need more space. All four REITs below are equity REITs, meaning they own warehouses and collect rent. Mortgage REITs lend against property and take on interest rate and credit risk, so they don’t belong on this list. The safety check for each dividend is FFO coverage: how much of a REIT’s cash earnings (net income with real estate depreciation added back) goes out as dividends.
EastGroup Properties Raised Its Dividend After Beating Its Own Forecast
EastGroup owns smaller warehouses (shallow-bay, last-mile buildings) in fast-growing U.S. markets, mostly in the Sunbelt. California makes up 14% of total NOI. As of September 30, the operating portfolio was 97.3% leased and 96.5% occupied. Rents on new and renewal leases rose 36.3% on a straight-line basis, same-property cash NOI grew 7.1%, and tenant retention was 78.8%. Leasing tied to data centers made up about 15% of new-lease activity so far this year. Chief executive Marshall Loeb said Phoenix is “100% leased.”
Yield and coverage: The annualized dividend is $7.00. With shares at $200.61, that works out to about 3.5%. The new $1.75 payout used about 71% of third-quarter FFO. The $7.00 annual rate equals about 73% of the $9.65 full-year FFO guidance midpoint. Debt is modest: 3.2 times annualized EBITDA, with interest and fixed charges covered 14.7 times.
Bull case: This was EastGroup’s 187th consecutive quarterly dividend. Management also said quarterly FFO per share has exceeded the same quarter of the prior year “for over a decade.” Full-year guidance rose to $9.62-$9.68 per share, up from $8.98 in 2025. “The leasing environment has been much more stable than headlines would lead one to expect,” Loeb said.
Risk: EastGroup pays for much of its growth by selling new shares. It has $695 million in forward equity agreements outstanding at roughly $202 per share, and its capital plan assumes issuing about 3 million shares in Q4 2026. If the new buildings and acquisitions earn less than expected, the larger share count will pull down per-share growth.
Prologis Has Years of Rent Increases Built Into Its Leases, Plus a Data Center Business
Prologis owns or has stakes in about 1.3 billion square feet across 20 countries, rented to roughly 6,500 customers. In the third quarter, Core FFO was $1.60 per diluted share, up 7.4% from a year earlier. Occupancy ended the quarter at 95.6%. The company signed 55.9 million square feet of new leases at a 38.0% net effective rent increase (23.4% on a cash basis). Cash same-store NOI grew 5.9%. The data center pipeline has reached 5.8 gigawatts of power.
Yield and coverage: The annualized dividend is $4.28. With shares at $126.05, the yield is about 3.4%. The third-quarter dividend of $1.07 used about 67% of Core FFO. The annual rate equals about 68% of the $6.25 to $6.29 full-year guidance. The quarterly dividend has grown from $0.79 in 2022 to $1.07 in 2026. About 95% of debt carries fixed rates, with an average of roughly 8 years left before it comes due.
Bull case: Prologis’s leases are on average 16% below current market rents. That gap adds up to roughly $780 million of extra annual NOI it can collect as old leases roll over. Management also says market rents would need to rise 27% before new construction pays off, which holds back new supply. Customers in the data center supply chain made up 17% of new U.S. leasing.
Risk: The pending SEGRO combination could close on different terms or a different timeline than proposed. Closing is expected in the first half of 2027, and Prologis has already raised $2.4 billion of new common equity toward the deal. The stock has slipped from $131.29 at the time of the report to $126.05.
First Industrial Has the Lowest Payout Ratio of the Four, and Its Shares Fell on Results
First Industrial Realty Trust (NYSE:FR) owns about 72.9 million square feet of large distribution buildings, all in the U.S. and focused on 15 target metro areas. It also develops new warehouses. Cash rents on new and renewal leases rose 52% in the third quarter, and cash same-store NOI grew 5.6%. In-service occupancy slipped to 94.1% from 94.9%, though that beat the 93.5% the company had forecast. The shares fell 6.91% to $55.30 on the day of the earnings call.
Yield and coverage: The annualized dividend is $2.00, for a yield of about 3.6%. The quarterly dividend went up from $0.445 to $0.50 this year. The third-quarter payout used about 63% of FFO of $0.80 per share. The annual rate equals about 64% of the NAREIT FFO guidance range of $3.11 to $3.15. That is the widest margin of any REIT here.
Bull case: First Industrial has already handled 94% of the leases expiring in 2026, at a 38% cash rent increase. It has also handled 45% of 2027 expirations at a 16% increase. Chief executive Peter Baccile said the company isn’t cutting rents to keep tenants: “We definitely are not buying leases.”
Risk: Occupancy is heading the wrong way. Lower average occupancy partially offset rental rate growth this quarter, and a 324,000-square-foot building in the Inland Empire is still empty.
Rexford Industrial Pays the Highest Yield, but Southern California Rents Are Still Falling
Rexford Industrial Realty (NYSE:REXR) owns only infill Southern California industrial property, meaning buildings inside built-up urban areas. It has not yet reported third-quarter results. Its latest second-quarter results showed Core FFO of $0.63 per diluted share and a GAAP net loss of $506.9 million. The loss came from a $624.75 million non-cash write-down on assets the company plans to sell sooner than intended. Average same-property occupancy was 95.7% and same-property cash NOI rose 1.5%.
Yield and coverage: The annualized dividend is $1.74. With shares at $36.03, the yield is about 4.8%, making Rexford the group’s high-yield option. The $0.435 quarterly dividend used about 69% of second-quarter Core FFO, and management said the dividend is safe. Dividend growth has slowed sharply, though: the quarterly payout went from $0.38 in 2023 to $0.4175 in 2024, $0.43 in 2025, and $0.435 in 2026. Debt is 99.6% fixed at a weighted average effective rate of 3.725%. Rexford also has $1.019 billion coming due in 2027.
Bull case: New construction in Southern California is at multi-decade lows. Prologis and EastGroup both reported positive net absorption in the region, meaning more space was leased than vacated. A new $1.0 billion buyback program, funded by asset sales, could lift FFO per share.
Risk: Rents are still rolling down. Cash rents on releases fell 11.3%, and new-lease cash rents dropped 19.5% as leases signed at the market peak expired.
Rent Check Scorecard
REIT
Annualized Dividend
Yield
Latest-Quarter Dividend as % of FFO
EastGroup Properties
$7.00
3.5%
71%
Prologis
$4.28
3.4%
67%
First Industrial
$2.00
3.6%
63%
Rexford Industrial
$1.74
4.8%
69% (Q2)
EastGroup ranks first for its decade-long FFO growth run, fresh dividend increase, and modest debt. Prologis is second, with comfortable Core FFO coverage and years of rent increases built into its leases. First Industrial is third: its payout margin is the widest, but occupancy has to stop falling. Rexford is last because its higher yield comes from shrinking rents, and its third-quarter report will record whether Southern California has stopped dragging on results.
Contact [email protected] for any questions or corrections.
EastGroup Properties, Inc. ( EGP ) Q3 2026 Earnings Call October 22, 2026 10:00 AM EDT Company Participants Casey Edgecombe Marshall Loeb - CEO & Director R. Dunbar - President Staci Tyler - Executive VP, CFO & Treasurer Brent Wood - Executive VP & Chief Operating Officer Conference Call Participants Blaine Heck - Wells Fargo Securities, LLC, Research Division Craig Mailman - Citigroup Inc., Research Division Samir Khanal - BofA Securities, Research Division Michael Mueller - JPMorgan Chase & Co, Research Division Todd Thomas - KeyBanc Capital Markets Inc., Research Division William Catherwood - BTIG, LLC, Research Division Nicholas Thillman - Robert W.
REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts ApproachEastGroup Properties NYSE: EGP raised its full-year funds-from-operations guidance after reporting third-quarter results that exceeded its prior outlook, supported by stronger same-property net operating income, occupancy and leasing activity.
CEO Marshall Loeb said third-quarter FFO was $2.45 per share, $0.04 above the midpoint of the company’s guidance and 7.9% higher than the third quarter of 2025. Year-to-date FFO per share increased 7.7%, he said.
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After Earnings Results, Markets Love Prologis Stock “Our quarterly results demonstrate the portfolio’s quality and the resiliency within the industrial market,” Loeb said, citing continued tenant demand across the company’s markets and property types.
Occupancy, Leasing Spreads and Same-Store Growth
Quarter-end leasing stood at 97.3%, while physical occupancy was 96.5%. Same-store occupancy ended the quarter at 97%. The company completed 2.9 million square feet of second-generation leasing during the quarter, a company record, according to President Reid Dunbar.
Leases signed in the third quarter produced re-leasing spreads of 36% on a GAAP basis and 21% on a cash basis. Through the first nine months of the year, re-leasing spreads were also 36% GAAP and 20% cash.
Cash same-property net operating income rose 7.1% from a year earlier, above the company’s expectations. CFO Staci Tyler said the result beat EastGroup’s internal projection by 170 basis points, while average same-property occupancy of 96.9% exceeded projections by 50 basis points.
Tyler attributed the occupancy outperformance primarily to leasing volume, including new and renewal leases signed during the quarter. Some tenants also remained in place briefly after their lease expiration dates, contributing roughly 10 to 15 basis points of the occupancy outperformance, she said.
Tenant retention has remained elevated, reaching nearly 79% year-to-date, according to Loeb. He said EastGroup generally prioritizes keeping occupancy high while seeking market rents across its portfolio.
Management said rental growth has been strongest in markets including the Carolinas, Georgia, Texas and Arizona. California has improved from prior periods but remains uneven, with certain markets still experiencing flat to negative absorption. Loeb said California represents about 14% of EastGroup’s net operating income.
Guidance Raised as Development Activity Expands
EastGroup increased its 2026 FFO guidance midpoint by $0.06 to $9.65 per share, representing projected growth of 7.5% from 2025 actual results. Fourth-quarter FFO is projected at $2.47 to $2.53 per share, with a midpoint of $2.50, $0.02 above the company’s prior projection.
The company raised the midpoint of its full-year cash same-property NOI growth outlook by 70 basis points to 7.5%. It now expects same-property occupancy of 97% for the year, 30 basis points higher than its previous forecast, and average month-end occupancy for the operating portfolio of 95.9%, up 20 basis points.
EastGroup also increased planned development starts by $65 million to $390 million for 2026. The company had started $285 million of projects through the first nine months and expects to begin another $105 million during the fourth quarter.
Dunbar said development leasing totaled 500,000 square feet in the third quarter and approximately 2 million square feet year-to-date, exceeding the company’s full-year development leasing totals in each of the prior three years. Management described the increase in starts as largely demand-driven, including one pre-leased building and continued leasing progress at existing developments.
Loeb said rising construction costs, including costs for steel, diesel and labor, are affecting the development environment. He added that those higher costs should support future rental growth, while making it more difficult for merchant developers to underwrite speculative projects and eventual asset sales.
Acquisitions and Capital Position
The company acquired five projects during the third quarter and through October, representing total investment of $320 million. EastGroup raised its full-year acquisitions guidance by $145 million to $360 million.
Management said the acquisitions deepen EastGroup’s presence in existing markets and generally fit within the top tier of its portfolio. Reid said assets acquired year-to-date are expected to generate stabilized straight-line yields in the mid-6% range, with some properties offering upside from leasing vacant space.
Loeb said the company has observed cap rates increase by approximately 20 to 30 basis points in some transactions, although conditions vary by market. He said the company has benefited from situations where other potential buyers did not complete transactions, allowing EastGroup to purchase assets while maintaining underwriting discipline.
To fund investment activity, EastGroup entered into $485 million of forward equity share agreements during the third quarter. Including agreements from earlier in the year, the company had $695 million of forward equity agreements outstanding at a weighted average price of approximately $202 per share.
At quarter-end, EastGroup had $195 million outstanding under its $675 million unsecured bank credit facilities. Tyler said the company plans to settle forward equity agreements and repay borrowings as it funds recent acquisitions, land purchases, expanded development activity and $140 million of fourth-quarter unsecured debt maturities.
Debt to total market capitalization was 14.6% at quarter-end, while annualized debt-to-EBITDA was 3.2 times and interest and fixed-charge coverage was 14.7 times.
Data Centers Remain a Demand Tailwind
Management said data center-related tenants accounted for about 135,000 square feet of leasing in the quarter and about 15% of new leasing activity year-to-date. Those tenants are generally suppliers and service providers rather than data center operators themselves.
Loeb said EastGroup is not constructing specialized buildings specifically for data center demand. Instead, the company’s traditional shallow-bay industrial properties have attracted businesses such as HVAC contractors and electrical firms serving the sector.
Dunbar said data center demand is one of several demand drivers, alongside e-commerce, advanced manufacturing and the company’s core customer base serving local economies. He added that Amazon’s reported Project Mercury initiative, which has been described as requiring facilities in the 100,000- to 200,000-square-foot range in infill locations, could align with EastGroup’s portfolio strategy.
Loeb said management’s principal concerns heading toward 2027 include broader consumer and economic conditions, as well as retaining the company’s operating team. He said EastGroup remains focused on FFO-per-share growth, portfolio quality and maintaining a strong balance sheet through changing market conditions.
About EastGroup Properties (NYSE:EGP)EastGroup Properties, Inc NYSE: EGP is a self-administered and self-managed real estate investment trust that owns, develops, acquires and operates industrial properties. The company primarily focuses on functional, flexible warehouse and distribution facilities designed to serve local and regional businesses, including light manufacturing, service and last-mile distribution users.
Founded in 1969 and headquartered in Jackson, Mississippi, EastGroup concentrates its portfolio in major Sun Belt markets.
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REIT rent growth could accelerate significantly starting in 2027. Falling construction activity could give landlords stronger pricing power. Some heavily discounted REITs could offer substantial upside as growth recovers.
EastGroup Properties (EGP - Free Report) came out with quarterly funds from operations (FFO) of $2.45 per share, beating the Zacks Consensus Estimate of $2.43 per share. This compares to FFO of $2.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +0.82%. A quarter ago, it was expected that this real estate investment trust would post FFO of $2.37 per share when it actually produced FFO of $2.36, delivering a surprise of -0.42%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
EastGroup Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $199.44 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.76%. This compares to year-ago revenues of $182.14 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
EastGroup Properties shares have added about 13% since the beginning of the year versus the S&P 500's gain of 12.7%.
What's Next for EastGroup Properties?While EastGroup Properties has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for EastGroup Properties was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.47 on $202.15 million in revenues for the coming quarter and $9.60 on $782.76 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Apple Hospitality REIT (APLE - Free Report) , has yet to report results for the quarter ended September 2026. The results are expected to be released on November 5.
This hotel-owning real estate investment trust is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of +7.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Apple Hospitality REIT's revenues are expected to be $386.17 million, up 3.3% from the year-ago quarter.
Net Income Attributable to Common Stockholders of $1.46 Per Diluted Share for Third Quarter 2026 Compared to $1.26 Per Diluted Share for Third Quarter 2025 Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.45 Per Diluted Share for Third Quarter 2026 Compared to $2.27 Per Diluted Share for Third Quarter 2025, an Increase of 7.9% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 5.3% on a Straight-Line Basis and 7.1% on a Cash Basis for Third Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 97.3% Leased and 96.5% Occupied as of September 30, 2026; Average Month-End Occupancy of Operating Portfolio was 96.1% for Third Quarter 2026 as Compared to 95.7% for Third Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 36.3% on a Straight-Line Basis Entered into Forward Equity Sale Agreements for Approximately $486 Million at an Initial Weighted Average Forward Price of $202.06 Per Share Transferred a 100% Leased Development Project in Orlando Containing 113,000 Square Feet to the Operating Portfolio Started Construction of Four Development Projects and One Redevelopment Project Totaling 998,000 Square Feet with Projected Total Costs of Approximately $162 Million Signed 11 Leases on Active Development and First Generation Development Properties From July 1, 2026 through October 20, 2026, Totaling Approximately 503,000 Square Feet Acquired Two Operating Properties Containing 531,000 Square Feet and 107 Acres of Development Land for Approximately $164 Million Subsequent to Quarter-End, Acquired Three Operating Properties Containing 1,031,000 Square Feet and 25 Acres of Development Land for Approximately $262 Million Declared 187th Consecutive Quarterly Cash Dividend: Increased the Dividend by $0.20 Per Share (12.9%) to $1.75 Per Share , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us", "our" or "EastGroup") announced today the results of its operations for the three and nine months ended September 30, 2026.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "The team and the portfolio performed ahead of expectations this quarter and so far this year. The leasing environment has been much more stable than headlines would lead one to expect. This activity is exciting as we begin to turn the page into 2027. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
Reid Dunbar, President, added, "Continued leasing momentum gave us the confidence to raise our development starts again, to $390 million for the year, and attractive opportunities allowed us to increase our acquisition guidance to $360 million. Supported by our strong balance sheet, we remain focused on deploying capital with discipline and creating long-term value for our shareholders."
EARNINGS PER SHARE
Three Months Ended September 30, 2026
On a diluted per share basis, earnings per common share ("EPS") were $1.46 for the three months ended September 30, 2026, compared to $1.26 for the same period of 2025. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $147,890,000 ($2.75 per diluted share) for the three months ended September 30, 2026, as compared to $134,374,000 ($2.52 per diluted share) for the same period of 2025, which was an increase of $0.23 per diluted share. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the three months ended September 30, 2026. There were no land sales during the three months ended September 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $58,206,000 ($1.08 per diluted share) for the three months ended September 30, 2026, as compared to $54,131,000 ($1.02 per diluted share) for the same period of 2025, which was an increase of $0.06 per diluted share. Interest expense was $9,617,000 ($0.18 per diluted share) for the three months ended September 30, 2026, as compared to $7,685,000 ($0.14 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. Weighted average shares outstanding increased by 580,000 shares on a diluted basis for the three months ended September 30, 2026, as compared to the same period of 2025. Nine Months Ended September 30, 2026
EPS for the nine months ended September 30, 2026 were $4.63 per diluted share, as compared to $3.60 per diluted share for the same period of 2025. The increase in EPS was primarily due to the following:
PNOI was $430,826,000 ($8.02 per diluted share) for the nine months ended September 30, 2026, as compared to $389,736,000 ($7.41 per diluted share) for the same period of 2025, which was an increase of $0.61 per diluted share. EastGroup recognized gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the nine months ended September 30, 2026. There were no sales during the nine months ended September 30, 2025. EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the nine months ended September 30, 2026. There were no land sales during the nine months ended September 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $170,109,000 ($3.17 per diluted share) for the nine months ended September 30, 2026, as compared to $159,663,000 ($3.03 per diluted share) for the same period of 2025, which was an increase of $0.14 per diluted share. Interest expense was $27,686,000 ($0.52 per diluted share) for the nine months ended September 30, 2026, as compared to $23,400,000 ($0.44 per diluted share) for the same period of 2025, which was an increase of $0.08 per diluted share. Weighted average shares outstanding increased by 1,100,000 shares on a diluted basis for the nine months ended September 30, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended September 30, 2026
For the three months ended September 30, 2026, both funds from operations attributable to common stockholders ("FFO") and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $2.45 per diluted share compared to $2.27 per diluted share during the same period of 2025, an increase of 7.9%.
PNOI increased by $13,516,000, or 10.1%, during the three months ended September 30, 2026, compared to the same period of 2025. PNOI increased $6,809,000 due to same property operations (based on the same property pool), $4,156,000 due to newly developed and value-add properties, and $3,213,000 due to 2025 and 2026 acquisitions. PNOI decreased $634,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 5.3% on a straight-line basis for the three months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 7.1%. Same property average occupancy was 96.9% for the three months ended September 30, 2026, compared to 96.7% for the same period of 2025. The same property average rental rate was $9.46 for the three months ended September 30, 2026, compared to $8.99 per square foot for the same period of 2025.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended September 30, 2026 (representing 4.6% of the operating portfolio's square footage) increased an average of 36.3%.
Nine Months Ended September 30, 2026
FFO for the nine months ended September 30, 2026, were $7.15 per diluted share compared to $6.64 per diluted share during the same period of 2025, an increase of 7.7%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $7.11 per diluted share for the nine months ended September 30, 2026, compared to $6.61 per diluted share for the same period of 2025, an increase of 7.6%.
PNOI increased by $41,090,000, or 10.5%, during the nine months ended September 30, 2026, compared to the same period of 2025. PNOI increased $23,236,000 due to same property operations (based on the same property pool), $10,426,000 due to newly developed and value-add properties, and $8,836,000 due to 2025 and 2026 acquisitions. PNOI decreased $1,677,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 6.3% on a straight-line basis for the nine months ended September 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.2%. Same property average occupancy was 97.0% for the nine months ended September 30, 2026, compared to 96.4% for the same period of 2025. The same property average rental rate was $9.36 per square foot for the nine months ended September 30, 2026, compared to $8.81 per square foot for the same period of 2025.
On a straight-line basis, rental rates on new and renewal leases signed during the nine months ended September 30, 2026 (representing 12.3% of the operating portfolio's square footage) increased an average of 35.6%.
The same property pool for the three and nine months ended September 30, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through September 30, 2026; this pool is comprised of properties containing 58,047,000 square feet. Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026). The same property average rental rate calculated on a straight-line basis represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026).
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
As previously announced, in July 2026, EastGroup acquired Airgate Mesa Corporate Center in Phoenix for $27,688,000. The 143,000 square foot industrial building was developed in 2022 and is 100% leased to a single tenant. Also in July 2026, as previously announced, the Company acquired Harris Ridge Business Center in Austin for $82,268,000. The property is comprised of 5 buildings containing 388,000 square feet and is currently 95% leased to 10 tenants.
In August 2026, as previously announced, the Company acquired 69.5 acres of development land in the Northeast Dallas submarket for $38,049,000. The land, known as Frisco Park 121 Phase 2 Land, is adjacent to the Company's previously acquired Frisco Park 121 Land and expands the existing development plan from 4 buildings totaling approximately 350,000 square feet to 11 buildings totaling approximately 1,000,000 square feet.
Also as previously announced, in September 2026, EastGroup acquired 30.3 acres of development land, known as Crossroads Logistics Park Phase 2 Land, for $13,266,000. This land acquisition expands EastGroup's existing park located in the East Tampa submarket, increasing the existing development plan from three buildings totaling approximately 500,000 square feet to five buildings totaling approximately 850,000 square feet.
Also, in September 2026, the Company acquired 7.5 acres of development land in the space coast market in Melbourne, FL, known as Crane Creek Commerce Center Land, for $2,781,000. This site is expected to accommodate the future development of a 69,000 square foot building.
Subsequent to September 30, 2026, EastGroup closed on the acquisition of a property in the Northeast submarket of Dallas for approximately $89,000,000. The property, which was constructed in 2025, includes three business distribution buildings containing 375,000 square feet, which are currently 91% leased to three tenants.
Also in October 2026, the Company closed on the acquisition of a business distribution building containing 202,000 square feet in the Dallas-Fort Worth International Airport submarket for approximately $30,000,000. The building, subject to a ground lease, was built in 2023 and is 100% leased to a single tenant.
Also subsequent to September 30, 2026, EastGroup closed on the acquisition of three business distribution buildings in the North Denver submarket for approximately $95,000,000. The buildings, which contain 454,000 square feet, were constructed in 2025 and are 100% leased to four tenants.
Also in October 2026, the Company acquired 24.9 acres of development land in Miami for approximately $48,000,000. This site is expected to accommodate the future development of two buildings containing approximately 371,000 square feet.
As previously announced, in July 2026, the Company sold a 6.9 acre parcel of land in Miami for $14,250,000. A gain of $4,709,000 was recognized during the three months ended September 30, 2026; this gain is excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the third quarter of 2026, EastGroup began construction of four development projects and one redevelopment project totaling 998,000 square feet, with projected total costs of $162,200,000. The development and redevelopment projects started during the nine months ended September 30, 2026 are detailed in the table below:
Development and Redevelopment Projects Started
During the Nine Months Ended September 30, 2026
Location
Size
Anticipated
Transfer Date
Projected
Total Costs
(Square feet)
(In thousands)
Country Club 5 Expansion (1)
Tucson, AZ
101,000
05/2027
$
9,800
Crossroads 3
Tampa, FL
156,000
10/2027
26,900
Oak Creek 1 (2)
Tampa, FL
222,000
10/2027
4,200
Grand West Crossing 3 & 4
Houston, TX
128,000
02/2028
18,900
World Houston 48
Houston, TX
191,000
03/2028
18,800
Skyway 3
Charlotte, NC
156,000
04/2028
20,400
Brightstar 100
Atlanta, GA
196,000
05/2028
21,700
Miramar Business Center
San Diego, CA
60,000
05/2028
53,100
Schertz Summit Park 1 & 2
San Antonio, TX
202,000
07/2028
27,700
Basswood 6 & 7
Fort Worth, TX
294,000
09/2028
40,600
Bell Creek 1 & 2
Tampa, FL
226,000
10/2028
42,600
Total Development Projects Started
1,932,000
$
284,700
(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.
(2) Represents a redevelopment project.
Subsequent to September 30, 2026, the Company began construction of Gateway Interchange C, D & E in Phoenix, which is anticipated to accommodate the future development of three buildings containing approximately 295,000 square feet, with projected total costs of $54,300,000.
At September 30, 2026, EastGroup's development and value-add program consisted of 21 projects (4,061,000 square feet) in 14 markets. The projects, which were collectively 25% leased as of October 20, 2026, have a projected total cost of $636,700,000, of which $251,460,000 remained to be invested as of September 30, 2026.
During the third quarter of 2026, EastGroup transferred one project in Orlando to the operating portfolio. The Company transfers projects to the operating portfolio at the earlier of 90% occupancy or one year after completion. The project contains 113,000 square feet and was 100% leased as of October 20, 2026.
The development projects transferred to the operating portfolio during the nine months ended September 30, 2026 are detailed in the table below:
Development, Redevelopment and Value-
Add Properties Transferred to the
Operating Portfolio During the Nine
Months Ended September 30, 2026
Location
Size
Transfer Date
Cumulative Cost
as of 9/30/26
Percent Leased
as of 10/20/26
(Square feet)
(In thousands)
Denton 35 Exchange 1 & 2
Dallas, TX
244,000
02/2026
$
33,604
100
%
Skyway 1 & 2
Charlotte, NC
318,000
03/2026
38,781
79
%
Grand West Crossing 2
Houston, TX
97,000
04/2026
11,854
100
%
Texas Avenue 1 & 2
Austin, TX
129,000
04/2026
21,772
83
%
World Houston 46
Houston, TX
181,000
04/2026
17,047
100
%
Dominguez (1)
Los Angeles, CA
262,000
06/2026
7,867
100
%
Horizon West 9
Orlando, FL
113,000
08/2026
14,819
100
%
Total Projects Transferred
1,344,000
$
145,744
94
%
Projected Stabilized Yield (2)
9.4 %
(1) Represents a redevelopment project.
(2) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs. The projected stabilized yield excluding the redevelopment project is 7.7%.
DIVIDENDS
EastGroup declared a cash dividend of $1.75 per share of common stock in the third quarter of 2026, which represented a 12.9% increase over the previous quarter's dividend. The third quarter dividend, which was paid on October 15, 2026, was the Company's 187th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 34 consecutive years and has increased it 31 years over that period, including increases in each of the last 15 years. The annualized dividend rate of $7.00 per share represents a dividend yield of 3.5% based on the closing stock price of $201.25 on October 20, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.6% at September 30, 2026. The Company's interest and fixed charge coverage ratio was 14.7x and 14.9x for the three and nine months ended September 30, 2026, respectively. The Company's annualized ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.2x and 3.3x for the three and nine months ended September 30, 2026, respectively. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
During the three months ended September 30, 2026, the Company entered into forward equity sale agreements with respect to 2,402,931 shares of common stock with an initial weighted average forward price of $202.06 per share totaling approximately $485,531,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of October 20, 2026, EastGroup had 3,443,388 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from February 2027 to February 2028, for anticipated net sales of approximately $685,234,000, based on a weighted average forward price of $199.00 per share.
Subsequent to September 30, 2026, EastGroup repaid a $100,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.98%.
OUTLOOK FOR 2026
We now estimate EPS for 2026 to be in the range of $5.99 to $6.05 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.62 to $9.68. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2026:
Low Range
High Range
Q4 2026
Y/E 2026
Q4 2026
Y/E 2026
(In thousands, except per share data)
Net income attributable to common stockholders
$
74,230
322,757
77,464
325,991
Depreciation and amortization
60,019
230,220
60,019
230,220
Gain on sales of real estate investments and non-operating
real estate
—
(34,783)
—
(34,783)
Funds from operations attributable to common stockholders*
$
134,249
518,194
137,483
521,428
Weighted average shares outstanding — Diluted
54,394
53,892
54,394
53,892
Per share data (diluted):
Net income attributable to common stockholders
$
1.36
5.99
1.42
6.05
Funds from operations attributable to common stockholders*
2.47
9.62
2.53
9.68
*This is a non-GAAP financial measure. Please refer to Definitions.
The following assumptions were used for the mid-point:
Metrics
Revised Guidance
for Year 2026
July Earnings
Release Guidance
for Year 2026
Actual for Year
2025
FFO per share for the year
(see Q4 projections in the table above)
$9.62 - $9.68
$9.52 - $9.66
$8.98
FFO per share increase over prior year
7.5 %
6.8 %
7.5 %
FFO per share, excluding gain on involuntary conversion and
business interruption claims
$9.58 - $9.64
$9.48 - $9.62
$8.95
FFO per share increase over prior year, excluding gain on
involuntary conversion and business interruption claims
7.4 %
6.7 %
7.7 %
Same PNOI growth: cash basis (1)
7.2% - 7.8% (2)
6.3% - 7.3% (2)
6.7 %
Average month-end occupancy — Operating portfolio
95.6% - 96.2% (3)
95.3% - 96.1%
95.9 %
Average month-end occupancy — Same property pool
96.7% - 97.3% (2)
96.3% - 97.1% (2)
96.5 %
Development starts:
Square feet
2.5 million
2.2 million
1.4 million
Projected total investment
$390 million
$325 million
$179 million
Operating property acquisitions
$360 million
$215 million
$143 million
Operating property dispositions
(Potential gains or losses on dispositions are not included in the projections)
$44 million
$75 million
$4 million
Gross capital proceeds (4)
$625 million (5)
$300 million
$517 million
General and administrative expense
$26.8 million
$26.7 million
$24.0 million
(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.
(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,047,000 square feet.
(3) Represents estimated average month-end operating portfolio occupancy from January-December 2026.
(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on unsecured bank credit facilities.
(5) Assumes issuance of approximately 3,000,000 shares under the continuous common equity program, including direct common stock issuance and settlement of outstanding forward equity agreements, during the three months ended December 31, 2026.
DEFINITIONS
Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.
PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup may refer to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land, buildings and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, additional rent charged when a tenant remains in occupancy after lease expiration, and amounts paid by tenants for operating expenses above the levels established in their leases. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or included in FFO are significant components in understanding and assessing the Company's financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its annualized EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its third quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, October 22, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, October 22, 2026. The telephone replay will be available through Thursday, October 29, 2026, and can be accessed by dialing 1-888-660-6345 (access code 87577#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 68.3 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the Company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends are subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:
international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or an inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of armed conflicts in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.
The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.
CONTACT
[email protected]
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
REVENUES
Income from real estate operations
$
199,400
182,089
582,926
531,989
Other revenue
37
47
98
1,882
199,437
182,136
583,024
533,871
EXPENSES
Expenses from real estate operations
51,818
48,004
153,025
143,127
Depreciation and amortization
58,206
54,131
170,109
159,663
General and administrative
6,251
5,607
21,074
18,851
Indirect leasing costs
251
199
707
633
116,526
107,941
344,915
322,274
OTHER INCOME (EXPENSE)
Interest expense
(9,617)
(7,685)
(27,686)
(23,400)
Gain on sales of real estate investments
—
—
30,074
—
Other income
5,086
447
8,030
1,510
NET INCOME
78,380
66,957
248,527
189,707
Net income attributable to noncontrolling interest in joint ventures
—
(14)
—
(42)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
78,380
66,943
248,527
189,665
Other comprehensive income (loss) — Interest rate swaps
9,527
(2,139)
14,932
(13,202)
TOTAL COMPREHENSIVE INCOME
$
87,907
64,804
263,459
176,463
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.64
3.61
Weighted average shares outstanding — Basic
53,675
53,159
53,599
52,544
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.63
3.60
Weighted average shares outstanding — Diluted
53,844
53,264
53,724
52,624
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS
$
78,380
66,943
248,527
189,665
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
Depreciation and amortization attributable to noncontrolling interest
—
(2)
(1)
(4)
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON
STOCKHOLDERS*
131,908
121,103
383,945
349,417
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN
ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION
CLAIMS*
$
131,908
121,103
381,995
347,654
NET INCOME
$
78,380
66,957
248,527
189,707
Interest expense (1)
9,617
7,685
27,686
23,400
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION ("EBITDA")
146,234
128,804
446,415
372,863
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
EBITDA FOR REAL ESTATE ("EBITDAre")*
$
141,525
128,804
411,632
372,863
Debt
$
1,806,556
1,479,819
1,806,556
1,479,819
Debt-to-EBITDAre ratio* (Annualized)
3.2
2.9
3.3
3.0
EBITDAre*
$
141,525
128,804
411,632
372,863
Interest expense (1)
9,617
7,685
27,686
23,400
Interest and fixed charge coverage ratio*
14.7
16.8
14.9
15.9
DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES,
INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.46
1.26
4.63
3.60
FFO attributable to common stockholders*
$
2.45
2.27
7.15
6.64
FFO attributable to common stockholders, excluding gain on involuntary conversion
and business interruption claims*
$
2.45
2.27
7.11
6.61
Weighted average shares outstanding for EPS and FFO purposes — Diluted
53,844
53,264
53,724
52,624
(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2026
2025
2026
2025
NET INCOME
$
78,380
66,957
248,527
189,707
Gain on sales of real estate investments
—
—
(30,074)
—
Gain on sales of non-operating real estate
(4,709)
—
(4,709)
—
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
Interest income
(100)
(174)
(539)
(683)
Other
(37)
(47)
(98)
(119)
Indirect leasing costs
251
199
707
633
Depreciation and amortization
58,206
54,131
170,109
159,663
Company's share of depreciation from unconsolidated investment
31
31
93
93
Interest expense (1)
9,617
7,685
27,686
23,400
General and administrative expense (2)
6,251
5,607
21,074
18,851
Noncontrolling interest in PNOI of consolidated joint ventures
—
(15)
—
(46)
PROPERTY NET OPERATING INCOME ("PNOI")*
147,890
134,374
430,826
389,736
PNOI from 2025 and 2026 acquisitions
(4,253)
(1,040)
(9,876)
(1,040)
PNOI from 2025 and 2026 development and value-add properties
(7,803)
(3,647)
(19,142)
(8,716)
PNOI from 2025 and 2026 operating property dispositions
—
(634)
(363)
(2,040)
Other PNOI
244
216
660
929
SAME PNOI (Straight-Line Basis)*
136,078
129,269
402,105
378,869
Lease termination fee income from same properties
(69)
(101)
(164)
(833)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS
(Straight-Line Basis)*
136,009
129,168
401,941
378,036
Straight-line rent adjustments for same properties
(1,702)
(3,489)
(4,537)
(9,875)
Acquired leases — Market rent adjustment amortization for same properties
(1,287)
(1,466)
(3,979)
(4,553)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash
Basis)*
$
133,020
124,213
393,425
363,608
(1) Net of capitalized interest of $6,044 and $5,389 for the three months ended September 30, 2026 and 2025, respectively; and $17,616 and $15,889 for the nine months ended September 30, 2026 and 2025, respectively.
(2) Net of capitalized development costs of $2,644 and $1,716 for the three months ended September 30, 2026 and 2025, respectively; and $6,768 and $5,387 for the nine months ended September 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Sunstone Hotel Investors (SHO) and EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks?
Warehouses handling every online order and factory shipment are back in high demand, and five industrial REITs are converting that traffic into growing dividend checks. Which one offers the fattest yield, and which hides a rent problem that could catch…
Industrial and logistics REITs own the warehouses, distribution centers and last-mile buildings that every online order, factory part and data center component passes through, and demand for that space is growing again. U.S. net absorption reached 66 million square feet in the second quarter, the highest level since 2022, and market vacancy fell to 7.2%, according to Prologis management. All five names below are equity REITs that own physical buildings. None is a mortgage REIT, so none carries the interest rate and credit risk that comes with lending against property. Dividend safety is measured on funds from operations (FFO), which adds depreciation back to earnings, and each section leads with that coverage figure.
Prologis Pairs Global Scale With a Data Center Kicker Prologis (NYSE:PLD) is the largest industrial and logistics REIT in the world, with a market cap of roughly $121.3B. Its third-quarter results, reported October 15, 2026, showed Core FFO of $1.60 per diluted share, revenue of $2.39B (+7.8% YoY), average occupancy of 95.1% and cash same-store NOI growth of 5.9%. Net effective rent change on new leases came in at 38.0%. The company’s chief executive, Daniel S. Letter, described the demand backdrop this way: “Customers are running lean on inventory, and excess capacity within their networks has largely cleared. We see healthy demand supported by e-commerce, advanced manufacturing and the build-out of the data center supply chain.”
Yield: The quarterly dividend is $1.07, or $4.28 annualized. At $127.88, that works out to about 3.35%. The payout has risen from $0.53 per quarter in 2019.
Coverage: Prologis narrowed and raised its 2026 Core FFO guidance to $6.25 to $6.29 per share. The annualized dividend uses about 68.3% of the midpoint, which leaves plenty of room to cover the payout and fund development.
Bull case: The data center power pipeline is 5.8 GW, and the $2.1B of data center development starts so far this year are 100% pre-leased. Management estimates that “each $1 trillion of data center capex will generate 30 to 40 million square feet of incremental logistics demand.”
Risk: The pending SEGRO combination has shareholder approval but still has to close, and it would add to currency exposure that already spans 20 countries. Shares slipped 1.98% on the day the results came out.
First Industrial Pushed Through a Double-Digit Dividend Raise First Industrial Realty Trust (NYSE:FR) owns logistics facilities in top U.S. markets and has a market cap of about $7.70B. In-service occupancy finished the second quarter at 94.9%, up from 94.2% a year earlier. Cash same-store NOI grew 6.7%, and signed 2026 leases carry a cash rental rate increase of 39%. A full-building lease on a 708,000 sq ft Central Pennsylvania facility came with a cash increase of over 60%.
Yield: The dividend went up 12.4% this year, from $0.445 to $0.50 per quarter ($2.00 annualized). At $58.19, the yield is about 3.44%. The next payment lands on October 19, 2026.
Coverage: 2026 NAREIT FFO guidance is $3.08 to $3.16 per share, and that range already absorbs proxy-fight costs. The dividend uses about 64.1% of the midpoint. Second-quarter FFO was $0.82 per share, compared with $0.76 a year earlier.
Bull case: Big buildings are scarce. Activity for spaces above 1.2 million square feet rose 117%, and management added that “tenants have fewer choices, and they have to make decisions quicker.” A $131M Phoenix land sale and a $250M buyback program give the company more capital to work with.
Risk: Guidance assumes in-service occupancy will “dip to around 93.5% at the end of 3Q”, with a recovery that depends on development leasing landing mostly in the fourth quarter. A contested proxy campaign has also cost $5.6M in advisory fees.
EastGroup Just Raised Its Payout Again EastGroup Properties (NYSE:EGP) owns shallow-bay, last-mile industrial buildings across the Sunbelt and has a market cap of about $10.37B. The operating portfolio was 96.8% leased at the end of the second quarter, with average occupancy of 95.6%. Cash same-property NOI rose 8.3%, and signed leases totaled a record 3.9 million square feet. Chief executive Marshall Loeb said “the leasing environment has normalized compared to the protracted decision making we experienced much of last year.”
Yield: EastGroup paid $1.75 per share on October 15, 2026, up from $1.55, a 12.9% raise. The forward annual rate is now $7.00, for a yield of about 3.63% at $192.91. The second-quarter payment was its 186th consecutive quarterly distribution.
Coverage: 2026 FFO guidance has a midpoint of $9.59, and the new dividend uses about 73.0% of it. That is the highest share in this group, mostly because of the fresh raise. The balance sheet backs it up: debt to EBITDA is 3 times, nothing is drawn on the credit facility and Moody’s upgraded the company to Baa1.
Bull case: Data center suppliers have become a new tenant group, accounting for about 40% of first-quarter development leasing and 20% in the second quarter. Development start guidance went up to $325M.
Risk: Management named consumer weakness as the main thing that could go wrong, through softer tenant demand, tenant credit problems and slower leasing decisions.
STAG Industrial Swapped Monthly Checks for Quarterly Ones STAG Industrial (NYSE:STAG) owns single-tenant warehouses across the country and has a market cap of about $6.91B. Operating occupancy stood at 95.5% in the second quarter. Same-store cash NOI rose 3.4%, and cash leasing spreads were 19.8%. Core FFO came in at $0.65 per share, up 3.2%.
Yield: Retirees who planned around monthly checks should note the change. STAG paid $0.124167 per month through December 2025 and has paid $0.3875 per quarter since March 2026. The annualized rate is $1.55, which yields about 4.32% at $35.87.
Coverage: 2026 Core FFO guidance is $2.61 to $2.65 per share, and the dividend uses only about 58.9% of the midpoint. That is the widest cushion on this list. Net debt to adjusted EBITDAre is 5.2x, and refinanced term loans now mature in January 2032.
Bull case: The acquisition pipeline holds $4.0B of deals. STAG has also leased 2.3 million square feet to data center-related tenants since the start of last year, at lease terms of about seven years and with rents rolled up 33%.
Risk: Internal growth trails its peers. Cash same-store guidance is 3% to 3.5%, while interest expense rose to $37.5M from $33.6M. The stock is up just 1.53% over the past year.
Rexford’s Top Yield Comes With a Southern California Discount Rexford Industrial Realty (NYSE:REXR) owns only infill Southern California industrial property and has a market cap of about $8.29B. Its second-quarter GAAP net loss of $506.9M, or ($2.26) per share, came from a $624.75M non-cash impairment on assets flagged for sale. Core FFO actually rose 6.8% to $0.63. Average same-property occupancy was 95.7%, but comparable cash rental rates fell 11.3%.
Yield: The quarterly dividend is $0.435 ($1.74 annualized), for a yield of about 4.68% at $37.21. That is the highest yield in the group, and it reflects a lower share price: the stock is down 27.55% over five years. This year’s raise was small, from $0.43 to $0.435.
Coverage: 2026 Core FFO guidance was raised to $2.38 to $2.43, and the dividend uses about 72.3% of the midpoint. The payout is covered, with less room than at STAG or First Industrial.
Bull case: Rexford plans to sell about $2 billion of non-core assets, has authorized a $1.0B buyback and is keeping a pipeline worth about $50 million of annualized NOI. 99.6% of its debt is fixed-rate. Chief executive Laura Clark said the sales “will further strengthen our portfolio, enhance cash flow durability and increase financial flexibility.”
Risk: Rents keep resetting lower. The portfolio’s cash mark-to-market is about negative 4%, and management said releasing spreads “will stay under pressure for a bit.”
How the Five Rent Checks Compare Each of these five REITs covers its dividend from FFO with room to spare. STAG has the widest cushion, and EastGroup and First Industrial have the fastest recent dividend growth. Rexford pays the highest yield because the market is pricing in Southern California rent rollbacks, and its fourth-quarter dispositions will show whether that discount is deserved. The next things to watch are First Industrial’s third-quarter occupancy dip and whether Prologis closes the SEGRO deal.
Contact [email protected] for any questions or corrections.
, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company" or "EastGroup") announced today that Bethany Logan Ropa and Robyn R. Werner have been appointed to the EastGroup board of directors (the "Board") effective October 1, 2026. Their appointments expand the Company's Board to nine directors, eight of whom are independent.
Since 2025, Ms. Ropa has served as Chief Financial Officer of JE Dunn Construction Group ("JE Dunn"), a privately held general contractor focused on building large commercial projects across the United States. She previously served on JE Dunn's board of directors from 2021 to 2024, including serving as Chair of the Nominating and Governance Committee. From 2008 to 2025, Ms. Ropa worked at UBS in the Real Estate, Lodging and Leisure investment banking group, most recently serving as Managing Director and Head of Americas.
Ms. Werner, a Certified Public Accountant, was an Assurance Partner with Ernst & Young LLP ("EY") from 2008 until her retirement in 2025. During her time with EY, she focused on the real estate, hospitality and construction industry and served as the lead partner or quality partner for audits of numerous public real estate investment trusts. Ms. Werner held a variety of leadership roles at EY, including National Real Estate, Hospitality and Construction Assurance Leader; Regional Real Estate, Hospitality and Construction Assurance Leader; and Regional Market Co-leader for the industry sector.
Donald F. Colleran, Chairman of the Board, commented, "On behalf of the Board, I am pleased to announce the appointments of Bethany Ropa and Robyn Werner as directors of the Company. With Bethany and Robyn joining the Board, we are excited to expand the Board's skillsets, and we welcome the varied industry knowledge and expertise that each brings to EastGroup's Board, its executive team, and our shareholders."
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 67.0 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Sunstone Hotel Investors (SHO - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Sunstone Hotel Investors has a Zacks Rank of #2 (Buy), while EastGroup Properties has a Zacks Rank of #3 (Hold) right now. This means that SHO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SHO currently has a forward P/E ratio of 11.44, while EGP has a forward P/E of 21.11. We also note that SHO has a PEG ratio of 2.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EGP currently has a PEG ratio of 2.95.
Another notable valuation metric for SHO is its P/B ratio of 1.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 3.05.
These metrics, and several others, help SHO earn a Value grade of B, while EGP has been given a Value grade of D.
SHO has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that SHO is the superior option right now.
, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "our", "us", or "EastGroup") announced today that it will hold its Third Quarter 2026 Earnings Conference Call and Webcast on Thursday, October 22, 2026, at 10:00 a.m. Eastern Time. On the call, senior management will discuss the Company's third quarter results, current operations, and earnings outlook for 2026.
EastGroup plans to release financial results for the quarter after the market closes on Wednesday, October 21, 2026. The earnings release and supplemental information package will be posted on the Company's website, www.eastgroup.net, at that time.
A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, October 22, 2026. The telephone replay will be available through Thursday, October 29, 2026, and can be accessed by dialing 1-888-660-6345 (access code 87577#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 66.8 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
EastGroup Properties, Inc. (EGP) BofA NY Global Real Estate Conference 2026 September 16, 2026 4:30 PM EDT
Company Participants
R. Dunbar - President
Staci Tyler - Executive VP, CFO & Treasurer
Marshall Loeb - CEO & Director
Conference Call Participants
Samir Khanal - BofA Securities, Research Division
Andrew Berger - BofA Securities, Research Division
Presentation
Samir Khanal
BofA Securities, Research Division
Maybe on the operational side, I mean, where do you stand today as it relates to the leasing pipeline? Talk about kind of demand that you're seeing out there in the market. Let's compare that to 2Q, for example.
R. Dunbar
President
Okay. Yes. So starting with Q2, that was a record quarter for us on leasing overall. We leased 3.9 million square feet. That's about 1.5 million of development leasing through the Q2 period, which, to put in perspective, that was more than what we leased in development all last year. And so if you heard us talk about the business in 2025, we talked a lot about inconsistencies where we'd see a really good quarter followed by a weaker quarter.
What we've now seen really starting in Q4 of last year is some consistent demand. And that consistent demand has really been a big driver for us, both on the development side, where we've -- through Q3 and our update we provided the other day, we've leased 280,000 square feet of additional development leasing. That's allowed us to increase our development starts throughout the year. We're now at $325 million. And it feels like there's probably more upward pressure on that number as we sit today.
Our occupancy numbers have also outpaced in July and August. We're sitting right at 96.1%, which is ahead of our plan that we had in Q1. So the demand trends seem to be there. We're seeing that
Nykredit A S bought a new position in EastGroup Properties, Inc. (NYSE:EGP – Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The firm bought 3,780 shares of the real estate investment trust’s stock, valued at approximately $766,000.
A number of other large investors have also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of EastGroup Properties during the second quarter valued at about $1,553,186,000. Norges Bank bought a new stake in EastGroup Properties during the 4th quarter valued at approximately $281,054,000. Deutsche Bank AG bought a new stake in EastGroup Properties during the 2nd quarter valued at approximately $114,775,000. Bank of America Corp DE purchased a new position in shares of EastGroup Properties during the 2nd quarter worth approximately $94,505,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of EastGroup Properties during the 2nd quarter worth approximately $93,282,000. Institutional investors own 92.14% of the company’s stock.
Wall Street Analyst Weigh In A number of research analysts have recently commented on EGP shares. Citigroup raised their target price on EastGroup Properties from $235.00 to $250.00 and gave the company a “buy” rating in a research note on Friday, July 24th. Morgan Stanley increased their price objective on EastGroup Properties from $215.00 to $231.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 27th. JPMorgan Chase & Co. raised their price objective on EastGroup Properties from $210.00 to $231.00 and gave the company a “neutral” rating in a research report on Friday, July 24th. Wells Fargo & Company boosted their target price on shares of EastGroup Properties from $221.00 to $232.00 and gave the company an “overweight” rating in a report on Tuesday, September 1st. Finally, Royal Bank Of Canada upped their target price on shares of EastGroup Properties from $208.00 to $220.00 and gave the stock a “sector perform” rating in a research report on Monday, August 3rd. Twelve analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $221.68.
View Our Latest Stock Analysis on EastGroup Properties EastGroup Properties Trading Up 0.1% EastGroup Properties stock opened at $198.77 on Tuesday. EastGroup Properties, Inc. has a 12 month low of $163.10 and a 12 month high of $226.71. The company has a market capitalization of $10.69 billion, a price-to-earnings ratio of 34.87, a price-to-earnings-growth ratio of 2.89 and a beta of 1.01. The business’s fifty day simple moving average is $206.86 and its two-hundred day simple moving average is $200.26. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.45.
EastGroup Properties (NYSE:EGP – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The real estate investment trust reported $1.40 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.09. The firm had revenue of $193.33 million during the quarter, compared to the consensus estimate of $193.61 million. EastGroup Properties had a return on equity of 8.61% and a net margin of 40.47%.The company’s revenue was up 9.0% on a year-over-year basis. During the same period last year, the company earned $2.21 earnings per share. EastGroup Properties has set its FY 2026 guidance at 9.520-9.660 EPS. As a group, equities analysts predict that EastGroup Properties, Inc. will post 9.6 earnings per share for the current fiscal year.
EastGroup Properties Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a $1.75 dividend. This represents a $7.00 annualized dividend and a yield of 3.5%. This is a boost from EastGroup Properties’s previous quarterly dividend of $1.55. The ex-dividend date of this dividend is Wednesday, September 30th. EastGroup Properties’s dividend payout ratio is presently 108.77%.
EastGroup Properties Profile (Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
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, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "our", "us" or "EastGroup") announced today its recent business activity and participation in upcoming conferences.
Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We are pleased with the strength of our portfolio outperforming our expectations quarter to date. The leasing velocity we enjoyed earlier in the year continues and is reflected in our results. We look forward to seeing many of you at the upcoming conferences. And for any we may miss, we are available for your questions."
As of August 31, 2026, EastGroup's portfolio was 97.1% leased and 96.1% occupied. During July and August, 1,944,000 square feet of new and renewal leases were signed with rental rate increases averaging 38.9% on a straight-line basis and 23.1% on a cash basis.
During the third quarter of 2026 to date, the Company executed eight leases on active development and first generation properties totaling approximately 280,000 square feet.
The Company began construction of three development projects and one redevelopment project totaling 772,000 square feet with projected total costs of approximately $119,000,000. One of the development projects is a 100% pre-leased build-to-suit in San Diego.
The Company transferred a 100% leased, 113,000 square foot development project in Orlando to the operating portfolio.
As previously announced and since EastGroup's earnings release dated July 22, 2026, the Company closed on the acquisition of Harris Ridge Business Center in Austin for approximately $83,000,000. The property includes five buildings containing 388,000 square feet and is currently 95% leased to ten tenants.
In August, the Company acquired 70 acres of development land in the Northeast Dallas submarket for approximately $38,000,000. The land, known as Frisco Park 121 Phase II Land, is adjacent to the Company's previously acquired Frisco Park 121 Land and expands the existing development plan from 4 buildings totaling approximately 350,000 square feet to 11 buildings totaling approximately 1,000,000 square feet.
Also, in September, the Company acquired 30 acres of development land, known as Crossroads Logistics Park Phase II Land, for approximately $12,000,000. This land acquisition expands EastGroup's existing park located in the East Tampa submarket, increasing the existing development plan from three buildings totaling approximately 500,000 square feet to five buildings totaling approximately 850,000 square feet.
During the third quarter of 2026 to date, EastGroup entered into forward equity sale agreements with respect to 532,460 shares of common stock with an initial weighted average forward price of $203.96 per share and approximate gross sales proceeds of $108,600,000, based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of September 2, 2026, the Company has 1,572,917 shares of forward equity sales agreements available for settlement prior to the expiration of the applicable settlement periods ranging from March 2027 through February 2028, for approximate gross sales proceeds of $318,200,000, based on an initial weighted average forward price of $202.30 per share.
Management is scheduled to participate in three upcoming conferences:
18th Annual Evercore Real Estate Conference scheduled for Wednesday, September 9, 2026 through Thursday, September 10, 2026; Bank of America Securities Global Real Estate Conference scheduled for Wednesday, September 16, 2026. Management is scheduled to present at 4:30 p.m. Eastern Time. The presentation will be broadcast live and is accessible through a registration link on the Company's website at www.eastgroup.net. An online replay of the webcast will be available at the same location; and Mizuho REIT Conference scheduled for Tuesday, September 29, 2026. During the conferences, EastGroup executives may discuss the Company's transaction activity, leasing environment, market trends and conditions, financial matters and other business that may be affecting the Company. Presentation materials that may be referenced during the EastGroup presentation are available on the "Investor Relations" page of the Company's website.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 66.8 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
Forward-Looking Information
The statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: international, national, regional and local economic conditions; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes, or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Investors in EastGroup Properties, Inc. (EGP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $10 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for EastGroup Properties shares, but what is the fundamental picture for the company? Currently, EastGroup Properties is a Zacks Rank #3 (Hold) in the REIT and Equity Trust – Other industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter declined from $2.43 per share to $2.42 in that period.
Given the way analysts feel about EastGroup Properties right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
National Storage REIT (OTCMKTS:NTSGF – Get Free Report) and EastGroup Properties (NYSE:EGP – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Earnings and Valuation This table compares National Storage REIT and EastGroup Properties”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio National Storage REIT N/A N/A N/A N/A N/A EastGroup Properties $721.34 million 14.90 $257.40 million $5.70 35.07 EastGroup Properties has higher revenue and earnings than National Storage REIT. Profitability This table compares National Storage REIT and EastGroup Properties’ net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets National Storage REIT N/A N/A N/A EastGroup Properties 40.47% 8.61% 5.59% Analyst Recommendations This is a summary of recent ratings and recommmendations for National Storage REIT and EastGroup Properties, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score National Storage REIT 0 0 0 0 0.00 EastGroup Properties 0 6 12 0 2.67 EastGroup Properties has a consensus target price of $221.11, suggesting a potential upside of 10.61%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, analysts plainly believe EastGroup Properties is more favorable than National Storage REIT.
Insider and Institutional Ownership 92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary EastGroup Properties beats National Storage REIT on 9 of the 9 factors compared between the two stocks.
(Get Free Report)
National Storage is the largest self-storage provider in Australia and New Zealand, with over 225 centres providing tailored storage solutions to over 90,000 residential and commercial customers. NSR is the first independent, internally managed and fully integrated owner and operator of self-storage centres to be listed on the Australian Securities Exchange (ASX).
About EastGroup Properties (Get Free Report)
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.
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, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company" or "EastGroup") announced today that its Board of Directors approved a 12.9% increase in its quarterly dividend, raising it to $1.75 per share from $1.55 per share. The dividend is payable on October 15, 2026, to shareholders of record of Common Stock on September 30, 2026. This dividend is the 187th consecutive quarterly cash distribution to EastGroup's shareholders and represents an annualized dividend rate of $7.00 per share. EastGroup has increased or maintained its dividend for 34 consecutive years. The Company has increased it 31 years over that period, including increases in each of the last 15 years.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 66.5 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
In this article series, I summarize dividend announcements of the past week. This week, 9 stocks announced dividend increases, including 3 stocks I own. INTU stands out for its robust safety metrics, 15% dividend hike, low payout ratios, and a forward-looking 16.16% dividend growth rate, though fair value estimates diverge. LRCX delivered the largest increase (26.92%) and boasts the highest Quality Score, but its yield is minimal at 0.44% and valuation appears stretched.
EastGroup Properties offers a compelling GARP opportunity with robust leasing demand and a niche focus on shallow-bay industrial assets in high-growth Sunbelt markets. EGP posted strong Q2 results underpinned by record leasing and high re-leasing spreads. At a forward P/FFO of 20.9 and a 3.1% yield, EGP trades below its 10-year average, with analysts projecting 7–8% annual FFO/share growth over the next three years.
First Trust Advisors LP raised its holdings in EastGroup Properties, Inc. (NYSE:EGP – Free Report) by 79.4% in the 1st quarter, according to the company in its most recent filing with the SEC. The firm owned 23,160 shares of the real estate investment trust’s stock after acquiring an additional 10,250 shares during the quarter. First Trust Advisors LP’s holdings in EastGroup Properties were worth $4,287,000 as of its most recent SEC filing.
Other hedge funds also recently modified their holdings of the company. Westpac Banking Corp grew its stake in shares of EastGroup Properties by 1.4% in the first quarter. Westpac Banking Corp now owns 14,110 shares of the real estate investment trust’s stock worth $2,612,000 after purchasing an additional 194 shares during the last quarter. PNC Financial Services Group Inc. raised its position in EastGroup Properties by 4.7% during the 1st quarter. PNC Financial Services Group Inc. now owns 4,880 shares of the real estate investment trust’s stock worth $903,000 after purchasing an additional 221 shares during the last quarter. Convergence Investment Partners LLC raised its position in EastGroup Properties by 13.2% during the 1st quarter. Convergence Investment Partners LLC now owns 7,594 shares of the real estate investment trust’s stock worth $1,406,000 after purchasing an additional 884 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in EastGroup Properties by 3.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 799,996 shares of the real estate investment trust’s stock worth $148,070,000 after buying an additional 26,727 shares during the period. Finally, Parallel Advisors LLC lifted its holdings in EastGroup Properties by 42.0% during the 1st quarter. Parallel Advisors LLC now owns 990 shares of the real estate investment trust’s stock worth $183,000 after buying an additional 293 shares during the period. Institutional investors and hedge funds own 92.14% of the company’s stock.
EastGroup Properties Trading Down 2.2% EGP opened at $203.99 on Wednesday. The company has a fifty day moving average price of $207.15 and a two-hundred day moving average price of $197.56. EastGroup Properties, Inc. has a 1-year low of $159.37 and a 1-year high of $226.71. The company has a market cap of $10.97 billion, a P/E ratio of 35.79, a price-to-earnings-growth ratio of 3.12 and a beta of 1.02. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.45.
EastGroup Properties (NYSE:EGP – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The real estate investment trust reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.09. EastGroup Properties had a net margin of 40.47% and a return on equity of 8.61%. The company had revenue of $193.33 million for the quarter, compared to analysts’ expectations of $193.61 million. During the same quarter in the prior year, the firm earned $2.21 EPS. The business’s revenue was up 9.0% on a year-over-year basis. EastGroup Properties has set its FY 2026 guidance at 9.520-9.660 EPS. Analysts predict that EastGroup Properties, Inc. will post 9.6 EPS for the current fiscal year.
EastGroup Properties Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $1.55 per share. This represents a $6.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Tuesday, June 30th. EastGroup Properties’s dividend payout ratio is presently 108.77%.
Analyst Upgrades and Downgrades Several equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. increased their price target on EastGroup Properties from $210.00 to $231.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Robert W. Baird set a $221.00 target price on EastGroup Properties in a report on Friday. BTIG Research raised their price target on shares of EastGroup Properties from $218.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $235.00 price objective on shares of EastGroup Properties in a research note on Monday, July 27th. Finally, Citigroup lifted their target price on shares of EastGroup Properties from $235.00 to $250.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Twelve equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $221.11.
View Our Latest Research Report on EastGroup Properties
Insider Buying and Selling at EastGroup Properties In related news, Director David Michael Fields sold 504 shares of EastGroup Properties stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $195.77, for a total value of $98,668.08. Following the completion of the sale, the director owned 3,531 shares of the company’s stock, valued at approximately $691,263.87. This trade represents a 12.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.00% of the stock is owned by insiders.
About EastGroup Properties (Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
Read More Five stocks we like better than EastGroup Properties System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding EGP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for EastGroup Properties, Inc. (NYSE:EGP – Free Report).
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California State Teachers Retirement System boosted its stake in EastGroup Properties, Inc. (NYSE:EGP – Free Report) by 22.7% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 62,095 shares of the real estate investment trust’s stock after acquiring an additional 11,504 shares during the quarter. California State Teachers Retirement System owned 0.12% of EastGroup Properties worth $11,493,000 as of its most recent SEC filing.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. Renaissance Group LLC boosted its position in shares of EastGroup Properties by 3.9% during the fourth quarter. Renaissance Group LLC now owns 1,437 shares of the real estate investment trust’s stock worth $256,000 after buying an additional 54 shares during the period. Fifth Third Wealth Advisors LLC raised its position in EastGroup Properties by 4.1% in the 1st quarter. Fifth Third Wealth Advisors LLC now owns 1,520 shares of the real estate investment trust’s stock valued at $281,000 after buying an additional 60 shares during the last quarter. Azzad Asset Management Inc. ADV raised its position in EastGroup Properties by 2.6% in the 4th quarter. Azzad Asset Management Inc. ADV now owns 2,423 shares of the real estate investment trust’s stock valued at $432,000 after buying an additional 62 shares during the last quarter. Cetera Investment Advisers lifted its stake in EastGroup Properties by 1.9% in the 2nd quarter. Cetera Investment Advisers now owns 3,668 shares of the real estate investment trust’s stock valued at $613,000 after acquiring an additional 68 shares in the last quarter. Finally, Larson Financial Group LLC lifted its stake in EastGroup Properties by 35.6% in the 4th quarter. Larson Financial Group LLC now owns 263 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 69 shares in the last quarter. 92.14% of the stock is owned by institutional investors and hedge funds.
EastGroup Properties Stock Performance NYSE EGP opened at $208.22 on Tuesday. The company has a current ratio of 0.16, a quick ratio of 0.16 and a debt-to-equity ratio of 0.45. The firm’s fifty day moving average price is $207.21 and its two-hundred day moving average price is $197.43. EastGroup Properties, Inc. has a 1 year low of $159.37 and a 1 year high of $226.71. The firm has a market capitalization of $11.20 billion, a P/E ratio of 36.53, a price-to-earnings-growth ratio of 3.13 and a beta of 1.02.
EastGroup Properties (NYSE:EGP – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The real estate investment trust reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.09. EastGroup Properties had a net margin of 40.47% and a return on equity of 8.61%. The company had revenue of $193.33 million for the quarter, compared to analyst estimates of $193.61 million. During the same period in the previous year, the business earned $2.21 EPS. EastGroup Properties’s revenue for the quarter was up 9.0% compared to the same quarter last year. EastGroup Properties has set its FY 2026 guidance at 9.520-9.660 EPS. As a group, research analysts anticipate that EastGroup Properties, Inc. will post 9.6 EPS for the current year.
EastGroup Properties Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a $1.55 dividend. This represents a $6.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend was Tuesday, June 30th. EastGroup Properties’s dividend payout ratio (DPR) is presently 108.77%.
Insider Activity at EastGroup Properties In other news, Director David Michael Fields sold 504 shares of EastGroup Properties stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $195.77, for a total transaction of $98,668.08. Following the completion of the transaction, the director directly owned 3,531 shares in the company, valued at approximately $691,263.87. The trade was a 12.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 1.00% of the company’s stock.
Analyst Ratings Changes Several equities analysts have recently weighed in on EGP shares. KeyCorp raised their price target on shares of EastGroup Properties from $210.00 to $220.00 and gave the stock an “overweight” rating in a research note on Monday, July 13th. Truist Financial boosted their price objective on shares of EastGroup Properties from $215.00 to $230.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Morgan Stanley increased their target price on shares of EastGroup Properties from $215.00 to $231.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 27th. Wells Fargo & Company raised their target price on shares of EastGroup Properties from $213.00 to $221.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Finally, Cantor Fitzgerald reiterated an “overweight” rating and issued a $235.00 price target on shares of EastGroup Properties in a research note on Monday, July 27th. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $221.11.
Read Our Latest Report on EastGroup Properties
About EastGroup Properties (Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
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Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Alpine Income (PINE - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Alpine Income is sporting a Zacks Rank of #2 (Buy), while EastGroup Properties has a Zacks Rank of #3 (Hold). This means that PINE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PINE currently has a forward P/E ratio of 9.59, while EGP has a forward P/E of 22.21. We also note that PINE has a PEG ratio of 1.37. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 3.20.
Another notable valuation metric for PINE is its P/B ratio of 1.01. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 3.2.
Based on these metrics and many more, PINE holds a Value grade of B, while EGP has a Value grade of D.
PINE has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that PINE is the superior option right now.
EastGroup Properties, Inc. (EGP) Q2 2026 Earnings Call July 23, 2026 10:00 AM EDT
Company Participants
Marshall Loeb - CEO & Director
R. Dunbar - President
Staci Tyler - Executive VP, CFO & Treasurer
Brent Wood - Executive VP & Chief Operating Officer
Conference Call Participants
Nicholas Joseph - Citigroup Inc., Research Division
Samir Khanal - BofA Securities, Research Division
Blaine Heck - Wells Fargo Securities, LLC, Research Division
Alexander Goldfarb - Piper Sandler & Co., Research Division
Michael Griffin - Evercore ISI Institutional Equities, Research Division
Brendan Lynch - Barclays Bank PLC, Research Division
Michael Carroll - RBC Capital Markets, Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Todd Thomas - KeyBanc Capital Markets Inc., Research Division
Richard Anderson - Cantor Fitzgerald & Co., Research Division
David Rodgers - Raymond James & Associates, Inc., Research Division
Nicholas Thillman - Robert W. Baird & Co. Incorporated, Research Division
John Kim - BMO Capital Markets Equity Research
Ronald Kamdem - Morgan Stanley, Research Division
Vikram Malhotra - Mizuho Securities USA LLC, Research Division
Omotayo Okusanya - Deutsche Bank AG, Research Division
Presentation
Operator
Good morning, ladies and gentlemen, and welcome to the EastGroup Properties Second Quarter 2026 Conference Call and Webcast Conference Call. [Operator Instructions] This call is being recorded on Thursday, July 23, 2026.
I would now like to turn the conference over to Marshall Loeb, the CEO. Please go ahead.
Marshall Loeb
CEO & Director
Good morning, and thanks for calling in for our second quarter 2026 conference call. As always, we appreciate your interest. I'm happy to say that joining me on this morning's call are Reid Dunbar, our President; Staci Tyler, our CFO; and Brent Wood, our COO. Since we'll make forward-looking statements, we ask that you listen to the following disclaimer.
Unknown Executive
Please note that our conference call today will contain financial measures such as PNOI and
REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts ApproachEastGroup Properties NYSE: EGP reported a stronger-than-expected second quarter, with executives pointing to record leasing activity, resilient occupancy and rising development demand across its industrial portfolio.
Chief Executive Officer Marshall Loeb said the company’s second-quarter funds from operations were $2.36 per share, $0.02 above the midpoint of guidance and up 6.8% from the same quarter a year earlier. Year-to-date FFO per share increased 7.6%, continuing what Loeb described as a more than decade-long trend of quarterly FFO per share exceeding the prior-year quarter.
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After Earnings Results, Markets Love Prologis Stock “We had a strong quarter as well as first half of the year,” Loeb said, citing the quality of the company’s portfolio and strength in industrial markets.
Leasing Hits Quarterly Record President Reid Dunbar said signed leases totaled 3.9 million square feet during the second quarter, a new quarterly record for EastGroup. Development and first-generation leasing also reached a record, at nearly 1.1 million square feet.
Dunbar said customers are increasingly looking past geopolitical and macroeconomic uncertainty and focusing on longer-term space requirements. He said demand remains positive across EastGroup’s markets and that the company’s “high-quality infill portfolio” is positioned to generate organic growth.
At quarter-end, EastGroup’s portfolio was 96.8% leased and 95.6% occupied. Average quarterly occupancy was 95.6%, down 30 basis points from the second quarter of 2025. Same-store occupancy at quarter-end was 96.9%.
The company reported leasing spreads of 34% on a GAAP basis and 19% on a cash basis for leases signed during the quarter. Year-to-date leasing spreads were similar, at 35% GAAP and 19% cash. Cash same-store net operating income increased 8.3% for the quarter and 8.8% year to date.
Loeb also highlighted EastGroup’s tenant diversification, saying its top 10 tenants accounted for 6.6% of rents, down 30 basis points from last year. He said the company targets both geographic and tenant diversity as a way to stabilize earnings through different economic environments.
Guidance Raised on Same-Property Strength and Development Starts Chief Financial Officer Staci Tyler said second-quarter FFO outperformance was primarily driven by higher-than-projected same-property net operating income, largely due to higher occupancy than expected.
For the third quarter, EastGroup expects FFO of $2.37 to $2.45 per share, with a midpoint of $2.41. The company raised the midpoint of its full-year 2026 FFO guidance by $0.03 to $9.59 per share, representing a 6.8% increase over 2025 actual results.
EastGroup also raised several operating and investment assumptions:
Cash same-property NOI growth guidance was increased by 60 basis points to 6.8% for the year. Expected same-property occupancy was raised to 96.7%, 30 basis points above prior guidance. Average month-end portfolio occupancy guidance increased to 95.7%. Projected 2026 development starts were increased by $60 million to $325 million. Acquisition guidance was increased by $55 million to $215 million. Tyler said the company has started $123 million of development projects year to date and now assumes another $202 million of starts in the second half. She said the increase reflects strong development leasing year to date and the current leasing pipeline.
On the balance sheet, Tyler said EastGroup ended the quarter with no balance drawn on its unsecured bank credit facility, leaving $675 million of available capacity. Debt to total market capitalization was 12.9%, the annualized debt-to-EBITDA ratio was 3 times, and interest and fixed charge coverage was 15.1 times.
Development and Acquisitions Expand Dunbar said EastGroup transferred four development projects in Houston, Austin and Los Angeles to the operating portfolio during the quarter. The projects totaled 669,000 square feet and were 100% leased.
Subsequent to quarter-end, EastGroup acquired a 143,000-square-foot building in the southeast Phoenix submarket. In Austin, the company is under contract to acquire a five-building portfolio in the northeast submarket totaling 388,000 square feet.
Dunbar said development remains the company’s preferred external growth channel from a risk-adjusted return perspective. He said EastGroup has land holdings in more than 20 submarkets, giving it flexibility to pursue additional development if leasing activity continues.
Loeb said the acquisition market remains competitive, with strong private buyer interest in high-quality industrial properties. He said EastGroup has been a “strategic” acquirer rather than an opportunistic one, given the market conditions.
Data Centers, Texas and Infill Demand in Focus During the question-and-answer session, Loeb said data center-related tenants accounted for about 40% of first-quarter development leasing and 20% of second-quarter development leasing. He characterized the demand driver as early-stage and said EastGroup is leasing to suppliers serving data centers rather than building tenant-specific data center space.
Loeb said markets including Dallas, Phoenix and Atlanta have substantial planned data center capacity relative to current capacity, adding that EastGroup has land presence in markets where that demand may grow.
Executives also pointed to strength in Texas. Dunbar said Dallas and Houston were among EastGroup’s strongest markets at midyear. He said Texas demand is broader than energy and includes data center activity, population growth and corporate relocations.
Loeb said higher diesel prices have not affected leasing decisions in the short term. However, he said sustained higher transportation costs could make last-mile industrial locations more valuable over time, particularly in markets with heavy traffic and growing populations.
Executives Cite Consumer Demand as Key Risk Asked where weakness could emerge, Loeb said the company is most focused on the consumer. He said higher interest rates and fuel costs could pressure businesses and ultimately affect tenant demand or credit quality.
Chief Operating Officer Brent Wood said supply could typically be a concern in an improving market, but he said supply is currently “in check” across EastGroup’s markets, particularly in smaller, multi-tenant industrial buildings. He said the company has land, buildings and permits positioned to respond if demand continues to improve.
Loeb closed by saying market demand has been gaining momentum for several consecutive quarters. He said EastGroup’s goals remain driving FFO per share growth while improving portfolio quality, which he said should continue to create net asset value growth for shareholders.
About EastGroup Properties (NYSE:EGP)EastGroup Properties, Inc NYSE: EGP is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company's portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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EastGroup Properties (EGP - Free Report) came out with quarterly funds from operations (FFO) of $2.36 per share, missing the Zacks Consensus Estimate of $2.37 per share. This compares to FFO of $2.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of -0.42%. A quarter ago, it was expected that this real estate investment trust would post FFO of $2.29 per share when it actually produced FFO of $2.34, delivering a surprise of +2.18%.
Over the last four quarters, the company has surpassed consensus FFO estimates two times.
EastGroup Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $193.33 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $177.29 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
EastGroup Properties shares have added about 24.3% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for EastGroup Properties?While EastGroup Properties has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for EastGroup Properties was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.42 on $196.25 million in revenues for the coming quarter and $9.59 on $780.11 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, National Health Investors (NHI - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.
This health care real estate investment trust is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of +3.3%. The consensus EPS estimate for the quarter has been revised 8.4% lower over the last 30 days to the current level.
National Health Investors' revenues are expected to be $118 million, up 30.2% from the year-ago quarter.
Net Income Attributable to Common Stockholders of $1.40 Per Diluted Share for Second Quarter 2026 Compared to $1.20 Per Diluted Share for Second Quarter 2025 (Gains on Sales of Real Estate Investments were $5 Million, or $0.10 Per Diluted Share, in Second Quarter 2026; There Were No Sales in Second Quarter 2025) Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.36 Per Diluted Share for Second Quarter 2026 Compared to $2.21 Per Diluted Share for Second Quarter 2025, an Increase of 6.8% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 6.2% on a Straight-Line Basis and 8.3% on a Cash Basis for Second Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 96.8% Leased and 95.6% Occupied as of June 30, 2026; Average Month-End Occupancy of Operating Portfolio was 95.6% for Second Quarter 2026 as Compared to 95.9% for Second Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 34.1% on a Straight-Line Basis Raised Approximately $160 Million Pursuant to the Company's Continuous Common Equity Offering Program at a Weighted Average Price of $203.15 Transferred Four Development Projects Containing 669,000 Square Feet which are 100% Leased to the Operating Portfolio Started Construction of Two Development Projects Located in Charlotte and Houston Totaling 347,000 Square Feet with Projected Total Costs of Approximately $39 Million Signed 16 Leases on Active Development and First Generation Development Properties From April 1, 2026 through July 21, 2026, Totaling Approximately 1,101,000 Square Feet Subsequent to Quarter-End, Acquired an Operating Property in Phoenix Containing 143,000 Square Feet for Approximately $28 Million and Under Contract to Acquire an Operating Property in Austin Containing Five Multi-Tenant Buildings Totaling 388,000 Square Feet for Approximately $83 Million , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and six months ended June 30, 2026.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "The team and the portfolio have performed ahead of expectations this year. The leasing environment has 'normalized' compared to the protracted decision making we experienced much of last year. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
Reid Dunbar, President, added, "Record leasing activity this quarter reflects the continued strength of demand across our markets and has enabled us to steadily increase our full-year development guidance, and we are now projecting $325 million of starts for 2026. As we have said before, our developments are pulled by market demand, and the leasing progress we are seeing today supports both near-term execution and long-term value creation."
EARNINGS PER SHARE
Three Months Ended June 30, 2026
On a diluted per share basis, earnings per common share ("EPS") were $1.40 for the three months ended June 30, 2026, compared to $1.20 for the same period of 2025. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $142,916,000 ($2.66 per diluted share) for the three months ended June 30, 2026, as compared to $129,184,000 ($2.46 per diluted share) for the same period of 2025, which was an increase of $0.20 per diluted share. EastGroup recognized gains on sales of real estate investments of $5,189,000 ($0.10 per diluted share) during the three months ended June 30, 2026. There were no sales during the three months ended June 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $56,406,000 ($1.05 per diluted share) for the three months ended June 30, 2026, as compared to $53,012,000 ($1.01 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. General and administrative expense was $7,207,000 ($0.13 per diluted share) for the three months ended June 30, 2026, as compared to $5,290,000 ($0.10 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share. Interest expense was $8,990,000 ($0.17 per diluted share) for the three months ended June 30, 2026, as compared to $7,690,000 ($0.15 per diluted share) for the same period of 2025, which was an increase of $0.02 per diluted share. Weighted average shares outstanding increased by 1,204,000 shares on a diluted basis for the three months ended June 30, 2026, as compared to the same period of 2025. Six Months Ended June 30, 2026
EPS for the six months ended June 30, 2026 were $3.17 per diluted share, as compared to $2.35 per diluted share for the same period of 2025. The increase in EPS was primarily due to the following:
PNOI was $282,936,000 ($5.27 per diluted share) for the six months ended June 30, 2026, as compared to $255,362,000 ($4.88 per diluted share) for the same period of 2025, which was an increase of $0.39 per diluted share. EastGroup recognized gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the six months ended June 30, 2026. There were no sales during the six months ended June 30, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $111,903,000 ($2.09 per diluted share) for the six months ended June 30, 2026, as compared to $105,532,000 ($2.02 per diluted share) for the same period of 2025, which was an increase of $0.07 per diluted share. Interest expense was $18,069,000 ($0.34 per diluted share) for the six months ended June 30, 2026, as compared to $15,715,000 ($0.30 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. General and administrative expense was $14,823,000 ($0.28 per diluted share) for the six months ended June 30, 2026, as compared to $13,244,000 ($0.25 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share. Weighted average shares outstanding increased by 1,361,000 shares on a diluted basis for the six months ended June 30, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended June 30, 2026
For the three months ended June 30, 2026, funds from operations attributable to common stockholders ("FFO") and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $2.36 per diluted share compared to $2.21 per diluted share during the same period of 2025, an increase of 6.8%.
PNOI increased by $13,732,000, or 10.6%, during the three months ended June 30, 2026, compared to the same period of 2025. PNOI increased $7,644,000 due to same property operations (based on the same property pool), $3,561,000 due to newly developed and value-add properties, and $2,965,000 due to 2025 and 2026 acquisitions. PNOI decreased $671,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 6.2% on a straight-line basis for the three months ended June 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.3%.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended June 30, 2026 (representing 4.5% of the operating portfolio's square footage) increased an average of 34.1%.
Six Months Ended June 30, 2026
FFO for the six months ended June 30, 2026, were $4.70 per diluted share compared to $4.37 per diluted share during the same period of 2025, an increase of 7.6%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $4.66 per diluted share for the six months ended June 30, 2026, compared to $4.33 per diluted share for the same period of 2025, an increase of 7.6%.
PNOI increased by $27,574,000, or 10.8%, during the six months ended June 30, 2026, compared to the same period of 2025. PNOI increased $16,434,000 due to same property operations (based on the same property pool), $6,264,000 due to newly developed and value-add properties, and $5,623,000 due to 2025 and 2026 acquisitions. PNOI decreased $1,043,000 due to operating properties sold in 2025 and 2026.
Same PNOI, Excluding Income from Lease Terminations, increased 6.8% on a straight-line basis for the six months ended June 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.8%.
On a straight-line basis, rental rates on new and renewal leases signed during the six months ended June 30, 2026 (representing 7.8% of the operating portfolio's square footage) increased an average of 35.2%.
The same property pool for the three and six months ended June 30, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through June 30, 2026; this pool is comprised of properties containing 58,269,000 square feet.
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
Subsequent to June 30, 2026, EastGroup closed on the acquisition of Airgate in Phoenix for approximately $28,000,000. The industrial building contains 143,000 square feet, which is 100% leased to a single tenant. This acquisition expands the Company's portfolio in the Phoenix market to 3,661,000 square feet.
EastGroup is under contract to acquire a property in the Northeast submarket of Austin for approximately $83,000,000. The property includes five buildings containing 388,000 square feet, is currently 92% leased to nine tenants, and increases the Company's ownership in Austin to 2,273,000 square feet. The closing is expected to occur in the third quarter of 2026.
As previously announced, in April 2026, the Company closed on the disposition of Beach Commerce Center, a 46,000 square foot building in Jacksonville. The property was sold for $7,000,000 resulting in a gain of $5,189,000. Gains on sales of real estate investments are excluded from FFO.
Subsequent to quarter-end, the Company sold a 6.9 acre parcel of land in Miami for approximately $14,000,000. A gain of approximately $5,000,000 is expected to be recognized during the three months ended September 30, 2026; this gain will be excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the second quarter of 2026, EastGroup began construction of two development projects containing 347,000 square feet located in Charlotte and Houston, with projected total costs of $39,200,000.
The development projects started during the six months ended June 30, 2026 are detailed in the table below:
Development Projects Started During the Six Months Ended
June 30, 2026
Location
Size
Anticipated
Conversion Date
Projected Total
Costs
(Square feet)
(In thousands)
Country Club 5 Expansion (1)
Tucson, AZ
100,000
04/2027
$
10,600
Crossroads 3
Tampa, FL
156,000
10/2027
26,900
Grand West Crossing 3 & 4
Houston, TX
128,000
02/2028
18,900
Skyway 3
Charlotte, NC
156,000
03/2028
20,400
World Houston 48
Houston, TX
191,000
03/2028
18,800
Schertz Summit Park 1 & 2
San Antonio, TX
202,000
07/2028
27,700
Total Development Projects Started
933,000
$
123,300
(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.
At June 30, 2026, EastGroup's development and value-add program consisted of 17 projects (3,175,000 square feet) in 12 markets. The projects, which were collectively 22% leased as of July 21, 2026, have a projected total cost of $486,800,000, of which $175,105,000 remained to be invested as of June 30, 2026.
During the second quarter of 2026, EastGroup transferred four projects to the operating portfolio (at the earlier of 90% occupancy or one year after completion). The projects, which are located in Houston, Austin and Los Angeles, contain 669,000 square feet and were collectively 100% leased as of July 21, 2026.
The development projects transferred to the operating portfolio during the six months ended June 30, 2026 are detailed in the table below:
Development and Value-Add Properties
Transferred to the Operating Portfolio During the
Six Months Ended June 30, 2026
Location
Size
Conversion Date
Cumulative Cost as
of 6/30/26
Percent Leased as
of 7/21/26
(Square feet)
(In thousands)
Denton 35 Exchange 1 & 2
Dallas, TX
244,000
02/20]26
$
33,194
100
%
Skyway 1 & 2
Charlotte, NC
318,000
03/2026
37,783
79
%
Grand West Crossing 2
Houston, TX
97,000
04/2026
11,183
100
%
Texas Avenue 1 & 2
Austin, TX
129,000
04/2026
21,770
100
%
World Houston 46
Houston, TX
181,000
04/2026
17,062
100
%
Dominguez (1)
Los Angeles, CA
262,000
06/2026
7,834
100
%
Total Projects Transferred
1,231,000
$
128,826
95
%
Projected Stabilized Yield (2)
9.4 %
(1) Represents a redevelopment project.
(2) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs. The projected stabilized yield excluding the redevelopment project is 7.6%.
DIVIDENDS
EastGroup declared a cash dividend of $1.55 per share of common stock in the second quarter of 2026, which was paid on July 15, 2026. This was the Company's 186th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 2.8% based on the closing stock price of $221.34 on July 21, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 12.9% at June 30, 2026. The Company's interest and fixed charge coverage ratio was 15.1x and 14.9x for the three and six months ended June 30, 2026, respectively. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x for both the three and six months ended June 30, 2026. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
During the three months ended June 30, 2026, the Company entered into forward equity sale agreements with respect to 788,321 shares of common stock with an initial weighted average forward price of $203.15 per share and approximate gross sales proceeds of $160,144,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of July 21, 2026, EastGroup had 1,040,457 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from March to June 2027, for approximate net proceeds of $207,051,000, based on a weighted average forward price of $199.00 per share.
OUTLOOK FOR 2026
We now estimate EPS for 2026 to be in the range of $5.83 to $5.97 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.52 to $9.66. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2026:
Low Range
High Range
Q3 2026
Y/E 2026
Q3 2026
Y/E 2026
(In thousands, except per share data)
Net income attributable to common stockholders
$
70,130
313,100
74,432
320,622
Depreciation and amortization
57,586
228,280
57,586
228,280
Gain on sales of real estate investments and non-operating
real estate
—
(30,074)
—
(30,074)
Funds from operations attributable to common stockholders*
$
127,716
511,306
132,018
518,828
Weighted average shares outstanding — Diluted
53,786
53,726
53,786
53,726
Per share data (diluted):
Net income attributable to common stockholders
$
1.30
5.83
1.38
5.97
Funds from operations attributable to common stockholders
2.37
9.52
2.45
9.66
*This is a non-GAAP financial measure. Please refer to Definitions.
The following assumptions were used for the mid-point:
Metrics
Revised Guidance for
Year 2026
April Earnings Release
Guidance for Year
2026
Actual for Year 2025
FFO per share
$9.52 - $9.66
$9.46 - $9.66
$8.98
FFO per share increase over prior year
6.8 %
6.5 %
7.5 %
FFO per share, excluding gain on involuntary conversion and business
interruption claims
$9.48 - $9.62
$9.42 - $9.62
$8.95
FFO per share increase over prior year, excluding gain on involuntary
conversion and business interruption claims
6.7 %
6.4 %
7.7 %
Same PNOI growth: cash basis (1)
6.3% - 7.3% (2)
5.7% - 6.7% (2)
6.7 %
Average month-end occupancy — Operating portfolio
95.3% - 96.1%(3)
95.0% - 96.0%
95.9 %
Average month-end occupancy — Same property pool
96.3% - 97.1% (2)
95.9% - 96.9% (2)
96.5 %
Development starts:
Square feet
2.2 million
1.8 million
1.4 million
Projected total investment
$325 million
$265 million
$179 million
Operating property acquisitions
$215 million
$160 million
$143 million
Operating property dispositions
(Potential gains on dispositions are not included in the projections)
$75 million
$75 million
$4 million
Gross capital proceeds (4)
$300 million
$300 million
$517 million
General and administrative expense
$26.7 million
$26.3 million
$24.0 million
(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.
(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,047,000 square feet.
(3) Represents estimated average month-end occupancy from January-December 2026. Average month-end occupancy for July-September 2026 is estimated to be between 95.2%-96.0%.
(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on unsecured bank credit facilities.
DEFINITIONS
Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.
PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup sometimes refers to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land including building and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, hold over rent, and base stop amounts. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company's financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its second quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, July 23, 2026. The telephone replay will be available through Thursday, July 30, 2026, and can be accessed by dialing 1-888-660-6345 (access code 27874#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65.8 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the Company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:
international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.
The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.
CONTACT
[email protected]
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
REVENUES
Income from real estate operations
$
193,292
177,256
383,526
349,900
Other revenue
39
30
61
1,835
193,331
177,286
383,587
351,735
EXPENSES
Expenses from real estate operations
50,684
48,363
101,207
95,123
Depreciation and amortization
56,406
53,012
111,903
105,532
General and administrative
7,207
5,290
14,823
13,244
Indirect leasing costs
231
171
456
434
114,528
106,836
228,389
214,333
OTHER INCOME (EXPENSE)
Interest expense
(8,990)
(7,690)
(18,069)
(15,715)
Gain on sales of real estate investments
5,189
—
30,074
—
Other income
521
553
2,944
1,063
NET INCOME
75,523
63,313
170,147
122,750
Net income attributable to noncontrolling interest in joint ventures
—
(14)
—
(28)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
75,523
63,299
170,147
122,722
Other comprehensive income (loss) — Interest rate swaps
3,426
(4,136)
5,405
(11,063)
TOTAL COMPREHENSIVE INCOME
$
78,949
59,163
175,552
111,659
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP
PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.41
1.21
3.18
2.35
Weighted average shares outstanding — Basic
53,672
52,508
53,562
52,237
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP
PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.40
1.20
3.17
2.35
Weighted average shares outstanding — Diluted
53,783
52,579
53,665
52,304
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
$
75,523
63,299
170,147
122,722
Depreciation and amortization
56,406
53,012
111,903
105,532
Company's share of depreciation from unconsolidated investment
31
31
62
62
Depreciation and amortization attributable to noncontrolling interest
—
(1)
(1)
(2)
Gain on sales of real estate investments
(5,189)
—
(30,074)
—
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS*
126,771
116,341
252,037
228,314
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN ON
INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS*
$
126,771
116,341
250,087
226,551
NET INCOME
$
75,523
63,313
170,147
122,750
Interest expense (1)
8,990
7,690
18,069
15,715
Depreciation and amortization
56,406
53,012
111,903
105,532
Company's share of depreciation from unconsolidated investment
31
31
62
62
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")
140,950
124,046
300,181
244,059
Gain on sales of real estate investments
(5,189)
—
(30,074)
—
EBITDA FOR REAL ESTATE ("EBITDAre")*
$
135,761
124,046
270,107
244,059
Debt
$
1,609,488
1,454,379
1,609,488
1,454,379
Debt-to-EBITDAre ratio*
3.0
2.9
3.0
3.0
EBITDAre*
$
135,761
124,046
270,107
244,059
Interest expense (1)
8,990
7,690
18,069
15,715
Interest and fixed charge coverage ratio*
15.1
16.1
14.9
15.5
DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
Net income attributable to common stockholders
$
1.40
1.20
3.17
2.35
FFO attributable to common stockholders*
$
2.36
2.21
4.70
4.37
FFO attributable to common stockholders, excluding gain on involuntary conversion and business
interruption claims*
$
2.36
2.21
4.66
4.33
Weighted average shares outstanding for EPS and FFO purposes — Diluted
53,783
52,579
53,665
52,304
(1) Net of capitalized interest of $5,649 and $5,340 for the three months ended June 30, 2026 and 2025, respectively; and $11,572 and $10,500 for the six months ended June 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
NET INCOME
$
75,523
63,313
170,147
122,750
Gain on sales of real estate investments
(5,189)
—
(30,074)
—
Gain on involuntary conversion and business interruption claims
—
—
(1,950)
(1,763)
Interest income
(244)
(277)
(439)
(509)
Other
(39)
(30)
(61)
(72)
Indirect leasing costs
231
171
456
434
Depreciation and amortization
56,406
53,012
111,903
105,532
Company's share of depreciation from unconsolidated investment
31
31
62
62
Interest expense (1)
8,990
7,690
18,069
15,715
General and administrative expense (2)
7,207
5,290
14,823
13,244
Noncontrolling interest in PNOI of consolidated joint ventures
—
(16)
—
(31)
PROPERTY NET OPERATING INCOME ("PNOI")*
142,916
129,184
282,936
255,362
PNOI from 2025 and 2026 acquisitions
(2,965)
—
(5,623)
—
PNOI from 2025 and 2026 development and value-add properties
(6,138)
(2,577)
(10,625)
(4,361)
PNOI from 2025 and 2026 operating property dispositions
(5)
(676)
(363)
(1,406)
Other PNOI
222
455
417
713
SAME PNOI (Straight-Line Basis)*
134,030
126,386
266,742
250,308
Lease termination fee income from same properties
(52)
(193)
(95)
(732)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Straight-Line Basis)*
133,978
126,193
266,647
249,576
Straight-line rent adjustments for same properties
(1,274)
(3,391)
(2,813)
(6,386)
Acquired leases — Market rent adjustment amortization for same properties
(1,323)
(1,520)
(2,692)
(3,087)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash Basis)*
$
131,381
121,282
261,142
240,103
(1) Net of capitalized interest of $5,649 and $5,340 for the three months ended June 30, 2026 and 2025, respectively; and $11,572 and $10,500 for the six months ended June 30, 2026 and 2025, respectively.
(2) Net of capitalized development costs of $1,785 and $1,717 for the three months ended June 30, 2026 and 2025, respectively; and $4,124 and $3,671 for the six months ended June 30, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both DiamondRock Hospitality (DRH) and EastGroup Properties (EGP). But which of these two stocks presents investors with the better value opportunity right now?
Shares of EastGroup Properties, Inc. (NYSE:EGP – Get Free Report) have received a consensus recommendation of “Moderate Buy” from the sixteen research firms that are covering the stock, MarketBeat.com reports. Five analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $200.1765.
EGP has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft cut shares of EastGroup Properties from a “buy” rating to a “hold” rating and set a $185.00 target price on the stock. in a research note on Monday, January 5th. Citigroup upped their target price on shares of EastGroup Properties from $210.00 to $220.00 and gave the company a “buy” rating in a research note on Wednesday, February 11th. Truist Financial boosted their price target on shares of EastGroup Properties from $203.00 to $205.00 and gave the company a “buy” rating in a research report on Tuesday, February 17th. Cantor Fitzgerald boosted their price target on shares of EastGroup Properties from $200.00 to $210.00 and gave the company an “overweight” rating in a research report on Friday, February 6th. Finally, Royal Bank Of Canada boosted their price target on shares of EastGroup Properties from $183.00 to $195.00 and gave the company a “sector perform” rating in a research report on Wednesday, February 18th.
Check Out Our Latest Report on EastGroup Properties
Hedge Funds Weigh In On EastGroup Properties Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Aptus Capital Advisors LLC boosted its position in EastGroup Properties by 15.1% in the third quarter. Aptus Capital Advisors LLC now owns 54,849 shares of the real estate investment trust’s stock valued at $9,284,000 after buying an additional 7,212 shares in the last quarter. Principal Financial Group Inc. boosted its position in EastGroup Properties by 43.5% in the third quarter. Principal Financial Group Inc. now owns 1,985,543 shares of the real estate investment trust’s stock valued at $336,076,000 after buying an additional 602,253 shares in the last quarter. Nordea Investment Management AB lifted its position in shares of EastGroup Properties by 13.4% during the third quarter. Nordea Investment Management AB now owns 82,533 shares of the real estate investment trust’s stock worth $13,912,000 after purchasing an additional 9,776 shares in the last quarter. Citigroup Inc. lifted its position in shares of EastGroup Properties by 38.3% during the third quarter. Citigroup Inc. now owns 61,461 shares of the real estate investment trust’s stock worth $10,403,000 after purchasing an additional 17,009 shares in the last quarter. Finally, APG Asset Management US Inc. lifted its position in shares of EastGroup Properties by 11.9% during the third quarter. APG Asset Management US Inc. now owns 300,159 shares of the real estate investment trust’s stock worth $51,660,000 after purchasing an additional 31,805 shares in the last quarter. 92.14% of the stock is currently owned by institutional investors and hedge funds.
EastGroup Properties Stock Performance NYSE EGP opened at $189.58 on Wednesday. The stock has a market cap of $10.11 billion, a P/E ratio of 38.93, a PEG ratio of 3.07 and a beta of 1.09. The company’s 50-day simple moving average is $188.36 and its 200 day simple moving average is $181.75. EastGroup Properties has a twelve month low of $137.67 and a twelve month high of $197.95. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 0.47.
EastGroup Properties Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be given a $1.55 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $6.20 dividend on an annualized basis and a yield of 3.3%. EastGroup Properties’s payout ratio is 127.31%.
About EastGroup Properties (Get Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
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EastGroup Properties (NYSE:EGP – Get Free Report) is expected to issue its Q1 2026 results after the market closes on Wednesday, April 22nd. Analysts expect the company to announce earnings of $1.27 per share and revenue of $193.8390 million for the quarter. Investors can check the company’s upcoming Q1 2026 earning summary page for the latest details on the call scheduled for Thursday, April 23, 2026 at 10:00 AM ET.
EastGroup Properties Price Performance Shares of EGP stock opened at $195.18 on Wednesday. The stock has a market cap of $10.49 billion, a price-to-earnings ratio of 40.08, a PEG ratio of 3.14 and a beta of 1.09. The business’s fifty day moving average is $189.72 and its 200 day moving average is $182.68. EastGroup Properties has a twelve month low of $152.53 and a twelve month high of $197.95. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 0.47.
EastGroup Properties Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a $1.55 dividend. This represents a $6.20 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Tuesday, March 31st. EastGroup Properties’s dividend payout ratio is presently 127.31%.
Analysts Set New Price Targets Several equities research analysts recently weighed in on EGP shares. Robert W. Baird set a $203.00 price target on EastGroup Properties in a research note on Wednesday, February 11th. Deutsche Bank Aktiengesellschaft cut EastGroup Properties from a “buy” rating to a “hold” rating and set a $185.00 price target on the stock. in a research note on Monday, January 5th. Cantor Fitzgerald upped their price target on EastGroup Properties from $200.00 to $210.00 and gave the stock an “overweight” rating in a research note on Friday, February 6th. KeyCorp upped their price target on EastGroup Properties from $200.00 to $205.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 10th. Finally, Truist Financial upped their price target on EastGroup Properties from $203.00 to $205.00 and gave the stock a “buy” rating in a research note on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $200.18.
Read Our Latest Research Report on EGP
Institutional Trading of EastGroup Properties Several hedge funds and other institutional investors have recently made changes to their positions in EGP. Alyeska Investment Group L.P. grew its stake in shares of EastGroup Properties by 98.4% in the 4th quarter. Alyeska Investment Group L.P. now owns 566,295 shares of the real estate investment trust’s stock worth $100,880,000 after buying an additional 280,819 shares during the last quarter. Corient Private Wealth LLC grew its stake in shares of EastGroup Properties by 623.9% in the 4th quarter. Corient Private Wealth LLC now owns 174,997 shares of the real estate investment trust’s stock worth $31,174,000 after buying an additional 150,822 shares during the last quarter. Invesco Ltd. grew its stake in shares of EastGroup Properties by 14.9% in the 4th quarter. Invesco Ltd. now owns 1,024,829 shares of the real estate investment trust’s stock worth $182,563,000 after buying an additional 132,878 shares during the last quarter. Balyasny Asset Management L.P. grew its stake in shares of EastGroup Properties by 112.8% in the 4th quarter. Balyasny Asset Management L.P. now owns 172,090 shares of the real estate investment trust’s stock worth $30,656,000 after buying an additional 91,231 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. purchased a new stake in shares of EastGroup Properties in the 2nd quarter worth approximately $13,791,000. Hedge funds and other institutional investors own 92.14% of the company’s stock.
About EastGroup Properties (Get Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
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EastGroup Properties, Inc. (NYSE:EGP – Get Free Report)’s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $203.60 and last traded at $202.0080, with a volume of 406866 shares trading hands. The stock had previously closed at $203.11.
Analyst Ratings Changes A number of research analysts have issued reports on the stock. Morgan Stanley upped their price target on shares of EastGroup Properties from $205.00 to $215.00 and gave the company an “equal weight” rating in a research note on Thursday, April 16th. Royal Bank Of Canada upped their price target on shares of EastGroup Properties from $183.00 to $195.00 and gave the company a “sector perform” rating in a research note on Wednesday, February 18th. Citigroup upped their price objective on shares of EastGroup Properties from $210.00 to $220.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. Robert W. Baird set a $203.00 price objective on shares of EastGroup Properties in a report on Wednesday, February 11th. Finally, Piper Sandler upped their price objective on shares of EastGroup Properties from $220.00 to $230.00 and gave the company an “overweight” rating in a report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $200.76.
Read Our Latest Analysis on EGP
EastGroup Properties Price Performance The firm’s fifty day moving average price is $190.80 and its 200 day moving average price is $183.71. The firm has a market capitalization of $10.86 billion, a PE ratio of 41.48, a P/E/G ratio of 3.31 and a beta of 1.09. The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 0.47.
EastGroup Properties Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a $1.55 dividend. This represents a $6.20 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Tuesday, March 31st. EastGroup Properties’s dividend payout ratio is 127.31%.
Institutional Trading of EastGroup Properties Hedge funds have recently added to or reduced their stakes in the company. True Wealth Design LLC boosted its holdings in EastGroup Properties by 159.7% during the third quarter. True Wealth Design LLC now owns 161 shares of the real estate investment trust’s stock worth $27,000 after buying an additional 99 shares in the last quarter. State of Wyoming purchased a new stake in EastGroup Properties during the second quarter worth $27,000. MAI Capital Management boosted its holdings in EastGroup Properties by 83.7% during the third quarter. MAI Capital Management now owns 180 shares of the real estate investment trust’s stock worth $31,000 after buying an additional 82 shares in the last quarter. Steigerwald Gordon & Koch Inc. purchased a new stake in EastGroup Properties during the third quarter worth $34,000. Finally, Mather Group LLC. purchased a new stake in EastGroup Properties during the third quarter worth $35,000. 92.14% of the stock is owned by hedge funds and other institutional investors.
EastGroup Properties Company Profile (Get Free Report)
EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company’s portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.
Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.
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Net Income Attributable to Common Stockholders of $1.77 Per Diluted Share for First Quarter 2026 Compared to $1.14 Per Diluted Share for First Quarter 2025 (Gains on Sales of Real Estate Investments were $25 Million, of $0.46 Per Diluted Share, in First Quarter 2026; There Were No Sales in First Quarter 2025) Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.30 Per Diluted Share for First Quarter 2026 Compared to $2.12 Per Diluted Share for First Quarter 2025, an Increase of 8.5% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 7.5% on a Straight-Line Basis and 9.2% on a Cash Basis for First Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 96.5% Leased and 95.9% Occupied as of March 31, 2026; Average Occupancy of Operating Portfolio was 96.1% for First Quarter 2026 as Compared to 95.8% for First Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 36.8% on a Straight-Line Basis Acquired an Operating Property in Jacksonville Containing 177,000 Square Feet for Approximately $38 Million Sold an Operating Property in Fresno Totaling 398,000 Square Feet for Approximately $37 Million (Gains of $25 Million Not Included in FFO) Raised Approximately $120 Million Pursuant to the Company's Continuous Common Equity Offering Program at a Weighted Average Price of $194.25 Transferred Two Development Projects Containing 562,000 Square Feet to the Operating Portfolio Started Construction of Four Development Projects, Including an Expansion of a Current Building, Totaling 586,000 Square Feet with Projected Total Costs of Approximately $84 Million Signed 11 Leases on Active Development and First Generation Development Properties From January 1, 2026 through April 21, 2026, Totaling Approximately 813,000 Square Feet , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three months ended March 31, 2026.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "I'm pleased with how we began the year in terms of FFO per share exceeding our expectations, as well as the development leases we signed. With limited supply and anticipated growing demand, we are excited about our pathway. Looking beyond this environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio."
Reid Dunbar, President, added, "Our solid first quarter results reflect the strength and focus of our teams in the field, who continued to execute at a high level amid ongoing global uncertainty. Executive leadership transitions are progressing smoothly, and we are pleased with the momentum we've built to start the year."
EARNINGS PER SHARE
Three Months Ended March 31, 2026
On a diluted per share basis, earnings per common share ("EPS") were $1.77 for the three months ended March 31, 2026, compared to $1.14 for the same period of 2025. The increase in EPS was primarily due to the following:
The Company's property net operating income ("PNOI") was $140,020,000 ($2.61 per diluted share) for the three months ended March 31, 2026, as compared to $126,178,000 ($2.43 per diluted share) for the same period of 2025, which was an increase of $0.18 per diluted share. EastGroup recognized gains on sales of real estate investments of $24,885,000 ($0.46 per diluted share) during the three months ended March 31, 2026. There were no sales during the three months ended March 31, 2025. The increase in EPS was partially offset by the following:
Depreciation and amortization expense was $55,497,000 ($1.04 per diluted share) for the three months ended March 31, 2026, as compared to $52,520,000 ($1.01 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share. Interest expense was $9,079,000 ($0.17 per diluted share) for the three months ended March 31, 2026, as compared to $8,025,000 ($0.15 per diluted share) for the same period of 2025, which was an increase of $0.02 per diluted share. Weighted average shares outstanding increased by 1,518,000 shares on a diluted basis for the three months ended March 31, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended March 31, 2026
For the three months ended March 31, 2026, funds from operations attributable to common stockholders ("FFO") were $2.34 per diluted share compared to $2.15 per diluted share during the same period of 2025, an increase of 8.8%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $2.30 per diluted share for the three months ended March 31, 2026, compared to $2.12 per diluted share for the same period of 2025, an increase of 8.5%.
PNOI increased by $13,842,000, or 11.0%, during the three months ended March 31, 2026, compared to the same period of 2025. PNOI increased $8,783,000 due to same property operations (based on the same property pool), $2,703,000 due to newly developed and value-add properties, and $2,658,000 due to 2025 and 2026 acquisitions.
Same PNOI, Excluding Income from Lease Terminations, increased 7.5% on a straight-line basis for the three months ended March 31, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 9.2%.
On a straight-line basis, rental rates on new and renewal leases signed during the three months ended March 31, 2026 (representing 3.3% of our total square footage) increased an average of 36.8%.
The same property pool for the three months ended March 31, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through March 31, 2026; this pool is comprised of properties containing 58,315,000 square feet.
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
As previously announced, in February 2026, the Company closed on the acquisition of Legend Point Logistics Crossing 2 & 3 in Jacksonville for $38,130,000. The property includes two buildings totaling 177,000 square feet which are 100% leased to five tenants.
Also, as previously announced, in February 2026, the Company closed on the disposition of Shaw Commerce Center in Fresno, California containing six buildings totaling 398,000 square feet, representing the Company's exit from the Fresno market. The property was sold for $37,000,000 resulting in a gain of $24,885,000.
Subsequent to March 31, 2026, EastGroup sold Beach Commerce Center, a 46,000 square foot building in Jacksonville. The property was sold for approximately $7,000,000 resulting in a gain of approximately $5,200,000, which will be recorded in the second quarter of 2026.
Gains on sales of real estate investments are excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the first quarter of 2026, EastGroup began construction of four new development projects containing 586,000 square feet located in four markets, with projected total costs of $84,100,000.
The development projects started during the three months ended March 31, 2026 are detailed in the table below:
Development Projects Started in the
First Quarter of 2026
Location
Size
Anticipated
Conversion
Date
Projected
Total
Costs
(Square feet)
(In thousands)
Country Club 5 Expansion (1)
Tucson, AZ
100,000
04/2027
$
10,600
Crossroads 3
Tampa, FL
156,000
10/2027
26,900
Grand West Crossing 3 & 4
Houston, TX
128,000
02/2028
18,900
Schertz Summit Park 1 & 2
San Antonio, TX
202,000
04/2028
27,700
Total Development Projects Started
586,000
$
84,100
(1) 100% pre-leased expansion of an existing building that currently contains 305,000 square feet.
Subsequent to March 31, 2026, the Company began construction of Skyway 3 in Charlotte, which is anticipated to contain 156,000 square feet, with projected total costs of $20,400,000.
At March 31, 2026, EastGroup's development and value-add program consisted of 19 projects (3,497,000 square feet) in 13 markets. The projects, which were collectively 30% leased as of April 21, 2026, have a projected total cost of $508,100,000, of which $186,807,000 remained to be invested as of March 31, 2026.
During the first quarter of 2026, EastGroup transferred two projects to the operating portfolio. The Company transfers projects to the portfolio at the earlier of 90% occupancy or one year after completion.
The development projects transferred to the operating portfolio during the three months ended March 31, 2026 are detailed in the table below:
Development and Value-Add
Properties Transferred to the
Operating Portfolio in the First
Quarter of 2026
Location
Size
Conversion
Date
Cumulative
Cost as of
3/31/26
Percent
Leased as of
4/21/26
(Square feet)
(In thousands)
Denton 35 Exchange 1 & 2
Dallas, TX
244,000
02/2026
$
32,998
47
%
Skyway 1 & 2
Charlotte, NC
318,000
03/2026
36,304
54
%
Total Projects Transferred
562,000
$
69,302
51
%
Projected Stabilized Yield (1)
7.3 %
(1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.
Subsequent to March 31, 2026, the Company transferred three development projects (407,000 square feet) in Houston and Austin, which were collectively 91% leased as of April 21, 2026, to the operating portfolio.
DIVIDENDS
EastGroup declared a cash dividend of $1.55 per share of common stock in the first quarter of 2026, which was paid on April 15, 2026. This was the Company's 185th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 3.1% based on the closing stock price of $201.79 on April 21, 2026.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 14.0% at March 31, 2026. The Company's interest and fixed charge coverage ratio was 14.8x for the three months ended March 31, 2026. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x for the three months ended March 31, 2026. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
As previously announced, in February 2026, Moody's Ratings upgraded EastGroup's issuer rating to Baa1, outlook stable from Baa2, outlook positive. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.
During the first quarter of 2026, EastGroup sold 365,620 shares of common stock directly through its sales agents under its continuous common equity offering program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of approximately $69,300,000.
Also during the three months ended March 31, 2026, the Company entered into forward equity sale agreements with respect to 252,136 shares of common stock with an initial weighted average forward price of $196.16 per share and approximate gross sales proceeds of $49,459,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of April 21, 2026, EastGroup had 252,136 shares of common stock available for settlement prior to the expiration of the applicable settlement periods in March 2027, for approximate net proceeds of $48,914,000, based on a weighted average forward price of $194.00 per share.
COMPANY UPDATE
The Company is pleased to announce the hiring of Jim Traynor as Executive Vice President, Central Region, effective April 27, 2026. Mr. Traynor brings more than 15 years of experience in real estate. Prior to joining the Company, he most recently served as Managing Director and Partner at Foundry Commercial, where he was responsible for all development and investments throughout Dallas-Fort Worth. In his role as head of EastGroup's Central Region, Mr. Traynor will be responsible for the Company's operations in our Texas, Louisiana and Tennessee markets. He is a graduate of the University of Central Florida and also graduated from the Hough Graduate School of Business at the University of Florida with a master's degree in real estate.
OUTLOOK FOR 2026
We estimate EPS for 2026 to be in the range of $5.66 to $5.86 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.46 to $9.66. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
The following table presents the guidance range for 2026:
Low Range
High Range
Q2 2026
Y/E 2026
Q2 2026
Y/E 2026
(In thousands, except per share data)
Net income attributable to common stockholders
$
66,801
303,997
71,101
314,741
Depreciation and amortization
56,641
228,812
56,641
228,812
Gain on sales of real estate investments and non-operating
real estate
—
(24,885)
—
(24,885)
Funds from operations attributable to common stockholders*
$
123,442
507,924
127,742
518,668
Weighted average shares outstanding — Diluted
53,743
53,717
53,743
53,717
Per share data (diluted):
Net income attributable to common stockholders
$
1.24
5.66
1.32
5.86
Funds from operations attributable to common stockholders
2.30
9.46
2.38
9.66
*This is a non-GAAP financial measure. Please refer to Definitions.
The following assumptions were used for the mid-point:
Metrics
Revised
Guidance for
Year 2026
Initial Guidance
for Year 2026
Actual for Year
2025
FFO per share
$9.46 - $9.66
$9.40 - $9.60
$8.98
FFO per share increase over prior year
6.5 %
5.8 %
7.5 %
FFO per share, excluding gain on involuntary conversion
and business interruption claims
$9.42 - $9.62
$9.40 - $9.60
$8.95
FFO per share increase over prior year, excluding gain on
involuntary conversion and business interruption claims
6.4 %
6.1 %
7.7 %
Same PNOI growth: cash basis (1)
5.7% - 6.7% (2)
5.6% - 6.6% (2)
6.7 %
Average month-end occupancy — Operating portfolio
95.0% - 96.0%(3)
95.0% - 96.0%
95.9 %
Average month-end occupancy — Same property pool
95.9% - 96.9% (2)
95.8% - 96.8% (2)
96.5 %
Development starts:
Square feet
1.8 million
1.7 million
1.4 million
Projected total investment
$265 million
$250 million
$179 million
Operating property acquisitions
$160 million
$160 million
$143 million
Operating property dispositions
(Potential gains on dispositions are not included in the projections)
$75 million
$70 million
$4 million
Gross capital proceeds (4)
$300 million
$300 million
$517 million
General and administrative expense
$26.3 million
$27.0 million
$24.0 million
(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.
(2) Includes properties which have been in the operating portfolio since 1/1/25 and are projected to be in the operating portfolio through 12/31/26; includes 58,269,000 square feet.
(3) Represents estimated average month-end occupancy from January-December 2026. Average month-end occupancy for April-June 2026 is estimated to be between 94.6%-95.6%.
(4) Gross capital proceeds includes proceeds raised from external sources, such as new long-term debt or equity issuances; excludes borrowings on the unsecured bank credit facilities.
DEFINITIONS
Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.
PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup sometimes refers to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land including building and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, hold over rent, and base stop amounts. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company's financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its first quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, April 23, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, April 23, 2026. The telephone replay will be available through April 30, 2026, and can be accessed by dialing 1-888-660-6345 (access code 76507#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65.5 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:
international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as escalation or expansion of the war in the Middle East, other acts of war, civil unrest or terrorism; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC.
The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise.
CONTACT
[email protected]
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
March 31,
2026
2025
REVENUES
Income from real estate operations
$
190,234
172,644
Other revenue
22
1,805
190,256
174,449
EXPENSES
Expenses from real estate operations
50,523
46,760
Depreciation and amortization
55,497
52,520
General and administrative
7,616
7,954
Indirect leasing costs
225
263
113,861
107,497
OTHER INCOME (EXPENSE)
Interest expense
(9,079)
(8,025)
Gain on sales of real estate investments
24,885
—
Other income
2,423
510
NET INCOME
94,624
59,437
Net income attributable to noncontrolling interest in joint ventures
—
(14)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
94,624
59,423
Other comprehensive income (loss) — Interest rate swaps
1,979
(6,927)
TOTAL COMPREHENSIVE INCOME
$
96,603
52,496
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP
PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.77
1.14
Weighted average shares outstanding — Basic
53,451
51,965
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP
PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.77
1.14
Weighted average shares outstanding — Diluted
53,546
52,028
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
March 31,
2026
2025
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
$
94,624
59,423
Depreciation and amortization
55,497
52,520
Company's share of depreciation from unconsolidated investment
31
31
Depreciation and amortization attributable to noncontrolling interest
(1)
(1)
Gain on sales of real estate investments
(24,885)
—
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS*
125,266
111,973
Gain on involuntary conversion and business interruption claims
(1,950)
(1,763)
FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN ON INVOLUNTARY
CONVERSION AND BUSINESS INTERRUPTION CLAIMS*
$
123,316
110,210
NET INCOME
$
94,624
59,437
Interest expense (1)
9,079
8,025
Depreciation and amortization
55,497
52,520
Company's share of depreciation from unconsolidated investment
31
31
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")
159,231
120,013
Gain on sales of real estate investments
(24,885)
—
EBITDA FOR REAL ESTATE ("EBITDAre")*
$
134,346
120,013
Debt
$
1,608,956
1,453,938
Debt-to-EBITDAre ratio*
3.0
3.0
EBITDAre*
$
134,346
120,013
Interest expense (1)
9,079
8,025
Interest and fixed charge coverage ratio*
14.8
15.0
DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders
$
1.77
1.14
FFO attributable to common stockholders*
$
2.34
2.15
FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims*
$
2.30
2.12
Weighted average shares outstanding for EPS and FFO purposes — Diluted
53,546
52,028
(1) Net of capitalized interest of $5,923 and $5,160 for the three months ended March 31, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued)
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended
March 31,
2026
2025
NET INCOME
$
94,624
59,437
Gain on sales of real estate investments
(24,885)
—
Gain on involuntary conversion and business interruption claims
(1,950)
(1,763)
Interest income
(195)
(232)
Other
(22)
(42)
Indirect leasing costs
225
263
Depreciation and amortization
55,497
52,520
Company's share of depreciation from unconsolidated investment
31
31
Interest expense (1)
9,079
8,025
General and administrative expense (2)
7,616
7,954
Noncontrolling interest in PNOI of consolidated joint ventures
—
(15)
PROPERTY NET OPERATING INCOME ("PNOI")*
140,020
126,178
PNOI from 2025 and 2026 acquisitions
(2,658)
—
PNOI from 2025 and 2026 development and value-add properties
(4,487)
(1,784)
PNOI from 2025 and 2026 operating property dispositions
(269)
(634)
Other PNOI
195
258
SAME PNOI (Straight-Line Basis)*
132,801
124,018
Lease termination fee income from same properties
(43)
(539)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Straight-Line Basis)*
132,758
123,479
Straight-line rent adjustments for same properties
(1,541)
(2,998)
Acquired leases — Market rent adjustment amortization for same properties
(1,369)
(1,567)
SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash Basis)*
$
129,848
118,914
(1) Net of capitalized interest of $5,923 and $5,160 for the three months ended March 31, 2026 and 2025, respectively.
(2) Net of capitalized development costs of $2,339 and $1,954 for the three months ended March 31, 2026 and 2025, respectively.
*This is a non-GAAP financial measure. Please refer to Definitions.
EastGroup Properties (EGP - Free Report) came out with quarterly funds from operations (FFO) of $2.34 per share, beating the Zacks Consensus Estimate of $2.29 per share. This compares to FFO of $2.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +2.18%. A quarter ago, it was expected that this real estate investment trust would post FFO of $2.33 per share when it actually produced FFO of $2.34, delivering a surprise of +0.43%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
EastGroup Properties, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $190.26 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.4%. This compares to year-ago revenues of $174.45 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
EastGroup Properties shares have added about 13.3% since the beginning of the year versus the S&P 500's gain of 3.2%.
What's Next for EastGroup Properties?While EastGroup Properties has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for EastGroup Properties was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.39 on $194.12 million in revenues for the coming quarter and $9.54 on $782.25 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Digital Realty Trust (DLR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 23.
This real estate investment trust is expected to post quarterly earnings of $1.94 per share in its upcoming report, which represents a year-over-year change of +9.6%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.
Digital Realty Trust's revenues are expected to be $1.61 billion, up 14.3% from the year-ago quarter.
Industrial REITs, led by Prologis and EastGroup, offer durable moats, strong balance sheets, and resilient growth amid evolving supply chain dynamics. PLD and EGP delivered robust Q1 results, raising full-year guidance and reinforcing their sector leadership; PLD is attractive on pullback, and EGP offers steady 12–15% return potential. REXR presents a value opportunity through asset recycling and share repurchases but faces higher regulatory and political risk due to its California concentration.
Investors might want to bet on EastGroup Properties (EGP - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for EastGroup Properties basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For EastGroup Properties, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for EastGroup PropertiesThis real estate investment trust is expected to earn $9.56 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for EastGroup Properties. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of EastGroup Properties to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
EastGroup Properties (EGP - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this real estate investment trust a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for EastGroup Properties is 10.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 6.4% this year, crushing the industry average, which calls for EPS growth of 3.1%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for EastGroup Properties is 13.7%, which is higher than many of its peers. In fact, the rate compares to the industry average of 3.4%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 16.1% over the past 3-5 years versus the industry average of 9%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for EastGroup Properties. The Zacks Consensus Estimate for the current year has surged 0.6% over the past month.
Bottom LineEastGroup Properties has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions EastGroup Properties well for outperformance, so growth investors may want to bet on it.
EastGroup Properties is rated a strong buy, driven by robust portfolio growth, high occupancy, and sector-leading fundamentals. EGP's 5-year FFO CAGR of 10.7% outpaces peers, with upgraded FY26 FFO guidance and resilient EBITDA margin trends supporting future cash flow growth. Balance sheet strength is underscored by a 0.46 D/E ratio, investment-grade Moody's rating, and low tenant/geographic concentration risk.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company" or "EastGroup") announced today that its Board of Directors declared a quarterly cash dividend of $1.55 per share payable on July 15, 2026, to shareholders of record of Common Stock on June 30, 2026. This dividend is the 186th consecutive quarterly distribution to EastGroup's shareholders and represents an annualized dividend rate of $6.20 per share. EastGroup has increased or maintained its dividend for 33 consecutive years. The Company has increased it 30 years over that period, including increases in each of the last 14 years.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65.5 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "our", "us" or "EastGroup") announced today its recent business activity.
Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We are pleased with the strength of our portfolio outperforming our expectations thus far into the year. Development leasing is continuing at what feels like a more normalized pace. We look forward to meeting with many of you at the Nareit investor conference. For those we miss, we are available for your questions."
Reid Dunbar, President, added, "Activity across our markets remains encouraging, both geographically and by industry. Consistent with our strategy of aligning development starts with demand, we're excited to begin construction of the final phase in our World Houston park following the successful transfer of two fully leased properties in April. We hope to see demand continue and look forward to discussing the broader market landscape further at the conference."
As of May 27, 2026, EastGroup's portfolio was 96.5% leased and 95.7% occupied. During the second quarter of 2026 to date, 1,361,000 square feet of new and renewal leases were signed with rental rate increases averaging 33.6% on a straight-line basis and 18.1% on a cash basis.
Since EastGroup's earnings release dated April 22, 2026, the Company executed two leases on active development and first generation development properties totaling approximately 72,000 square feet. In total, during the second quarter of 2026 to date, the Company executed six leases on active development and first generation development properties totaling approximately 470,000 square feet.
During the second quarter of 2026 to date, EastGroup entered into forward equity sale agreements with respect to 706,038 shares of common stock with an initial weighted average forward price of $202.82 per share and approximate gross sales proceeds of $143,200,000, based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of May 27, 2026, the Company has 958,174 shares of forward equity sales agreements available for settlement prior to the expiration of the applicable settlement periods ranging from March 2027 through May 2027, for approximate gross sales proceeds of $192,600,000, based on an initial weighted average forward price of $201.01 per share.
As previously announced, in April, the Company began construction of a 156,000 square foot development project in Charlotte, with projected total costs of approximately $20,400,000. In addition, during the second quarter of 2026, the Company will begin construction of a 191,000 square foot development project in Houston, with projected total costs of approximately $18,800,000.
Management is scheduled to present at Nareit's REITweek: 2026 Investor Conference on Wednesday, June 3, 2026 at 1:15 p.m. Eastern Time. The presentation will be broadcast live and is accessible through a registration link on the Company's website at www.eastgroup.net. An online replay of the webcast will be available at the same location. During the conference, EastGroup executives may discuss the Company's transaction activity, leasing environment, market trends and conditions, financial matters and other business that may be affecting the Company. Presentation materials that may be referenced during the EastGroup presentation are available on the "Investor Relations" page of the Company's website.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona, 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 20,000 to 100,000 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 65.7 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
Forward-Looking Information
The statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: international, national, regional and local economic conditions; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes, or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
On June 01, 2026, EastGroup Properties Inc (EGP) shares fell 3.5% to $194.83, continuing a downward trend observed over the past week and month. The stock has f
EastGroup Properties and Realty Income faced similar cost of capital challenges post-2022 but adopted sharply contrasting strategies. O maintained aggressive acquisition targets, pivoting to private funds and new asset classes to sustain volume despite diminished spreads and flat FFO/share growth. EGP exercised discipline, pausing acquisitions when spreads disappeared, focusing on development and organic growth to drive superior FFO/share performance.
, /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company" or "EastGroup") announced today that it will hold its Second Quarter 2026 Earnings Conference Call and Webcast on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time. On the call, senior management will discuss the Company's second quarter results, current operations, and earnings outlook for 2026.
EastGroup plans to release financial results for the quarter after the market closes on Wednesday, July 22, 2026. The earnings release and supplemental information package will be posted on the Company's website, www.eastgroup.net, at that time.
A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, July 23, 2026. The telephone replay will be available through Thursday, July 30, 2026, and can be accessed by dialing 1-888-660-6345 (access code 27874#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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 65.7 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
