Eastgroup Properties Inc (EGP)

Price$198.62Cached quoteAs of 2026-09-05 16:53 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong property performance already carries a demanding price tag.

At the observed quote, EastGroup trades at about 21 times the midpoint of management's 2026 funds-from-operations guidance. Funds from operations is a property-earnings measure that adds back real-estate depreciation and removes property-sale gains. The annual dividend equals roughly 3.1% of the market value, while guided funds from operations rises about 6.8% from 2025. That is a solid but not bargain setup: continued mid-single-digit growth is already required, while strong leasing and low leverage keep the valuation from looking clearly excessive.

Big pictureRevenue and operating cash have grown steadily, showing durable performance through changing property cycles.

The supplied SEC history shows revenue rising from $363 million in 2020 to $721 million in 2025, while operating cash flow, meaning cash generated by normal business operations, climbed from $196 million to $481 million. Net income more than doubled to $257 million. The pattern continued in 2026: first-half operating cash flow was about $302 million, and first-half funds from operations per share increased 7.6%. This durability matters because EastGroup invests heavily in new industrial buildings and needs recurring cash to fund dividends, construction and debt service.

Business strengthA conservative balance sheet supports growth, although repeated share issuance has diluted each owner's stake.

At June 2026, debt was about $1.62 billion against $5.52 billion of assets, and management reported debt at only 3.0 times real-estate operating earnings before interest, taxes, depreciation and amortization. Interest and fixed charges were covered about 15 times, and both unsecured bank lines were unused. The trade-off is dilution: shares outstanding rose from 39.7 million in 2020 to 53.8 million by June 2026. EastGroup also raised about $160 million through equity agreements during the second quarter, so new projects must earn enough to offset the larger share count.

What could change the storyThe valuation works if leasing stays strong; slower development absorption would quickly weaken the case.

The bull case is occupancy near 96%, cash property income from comparable buildings growing 8.8% in the first half, and new or renewed lease rates rising more than 35% after spreading scheduled rent evenly across each lease term. The bear case sits in development: 17 projects totaling 3.2 million square feet were only 22% leased, with roughly $175 million still to invest, while planned 2026 development starts rose to $325 million. If leasing stays brisk, growth can justify the premium; occupancy below about 95% or sharply slower rent growth would make roughly 21 times guided property earnings harder to defend.

AI: News

Second-quarter resultsSecond-quarter leasing stayed strong and management increased development plans, supporting continued growth expectations.

On July 22, EastGroup reported second-quarter funds from operations of $2.36 per diluted share, up 6.8% from a year earlier. Comparable-property cash operating income rose 8.3%, the operating portfolio was 95.6% occupied, and new or renewed lease rates increased 34.1% after spreading scheduled rent evenly across each lease term. Management narrowed full-year funds-from-operations guidance to $9.52-$9.66 per share and raised planned development starts to $325 million. Those figures support future cash growth, although higher development spending also raises leasing and capital-allocation risk.

Leasing and share fundingStrong leasing arrived alongside fresh share issuance, showing both demand strength and the cost of funding growth.

On May 28, EastGroup said its portfolio was 96.5% leased and 95.7% occupied as of May 27. It had signed 1.36 million square feet of second-quarter leases to date, with cash rent increases averaging 18.1%. The company also entered agreements covering about 706,000 shares for roughly $143 million of expected proceeds. Strong leasing supports future rent and development returns; selling shares for funding preserves borrowing capacity but increases the eventual share count, so property growth must outpace dilution to create per-share value.

First-quarter momentumFirst-quarter property income and leasing beat expectations, strengthening the case for resilient industrial demand.

On April 22, EastGroup reported first-quarter funds from operations excluding unusual insurance-related gains of $2.30 per diluted share, up 8.5% year over year. Comparable-property cash operating income increased 9.2%, occupancy averaged 96.1%, and new or renewed lease rates rose 36.8% after spreading scheduled rent evenly across each lease term. The company also raised about $120 million by selling shares and started four development projects costing roughly $84 million. The results improved growth visibility, while continued share issuance remained the main offset for existing owners.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$721.3M	$640.2M	$570.6M	$487.0M	$409.5M	$363.0M	$331.4M	$300.4M	$274.1M	$253.0M	$235.0M	$219.8M	$202.2M	$185.8M	$173.2M	$172.0M	$172.4M	$168.5M
Operating expenses	$433.8M	$385.0M	$342.4M	$304.5M	$258.6M	$234.8M	$214.8M	$191.8M	$179.0M	$165.7M	$155.9M	$146.0M	$135.6M	$124.9M	$116.6M	$118.8M	$113.3M	$107.0M
Operating income	$287.6M	$255.2M	$228.1M	$182.6M	$150.9M	$128.2M	$116.6M	$108.6M	$95.2M	$87.4M	$79.1M	$73.8M	$66.6M	$60.9M	$56.6M	$53.2M	$59.1M	$61.6M
Operating margin	39.87%	39.86%	39.98%	37.49%	36.85%	35.32%	35.18%	36.14%	34.72%	34.53%	33.64%	33.56%	32.93%	32.79%	32.66%	30.91%	34.27%	36.53%
EBITDA	$504.3M	$444.6M	$399.2M	$336.2M	$278.0M	$244.6M	$221.3M	$200.3M	$179.1M	$165.3M	$152.4M	$144.1M	$132.4M	$122.3M	$113.3M	$111.0M	$113.0M	$112.7M
EBITDA margin	69.91%	69.45%	69.97%	69.03%	67.89%	67.38%	66.78%	66.67%	65.32%	65.33%	64.83%	65.55%	65.47%	65.80%	65.43%	64.52%	65.58%	66.88%
Net income	$257.5M	$227.8M	$200.5M	$186.3M	$157.6M	$108.4M	$123.3M	$88.6M	$83.6M	$96.1M	$48.4M	$48.5M	$33.2M	$32.9M	$22.8M	$18.3M	$26.7M	$34.1M
Net profit margin	35.69%	35.58%	35.15%	38.25%	38.50%	29.86%	37.22%	29.51%	30.49%	37.97%	20.59%	22.05%	16.43%	17.70%	13.19%	10.66%	15.47%	20.26%
Basic EPSper basic share	$4.88	$4.67	$4.43	$4.37	$3.91	$2.77	$3.25	$2.50	$2.45	$2.93	$1.49	$1.53	$1.08	$1.13	$0.83	$0.68	$1.04	$1.31
Diluted EPSper diluted share	$4.87	$4.66	$4.42	$4.36	$3.90	$2.76	$3.24	$2.49	$2.44	$2.93	$1.49	$1.52	$1.08	$1.13	$0.83	$0.68	$1.04	$1.30

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

14.26%of listed shares

BlackRock, Inc.7.67M shares · Jun 30, 2026

View holders

Top 20 reported holders of EGP
Holder	% owned
BlackRock, Inc.	14.26%7.67M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	8.66%4.66M shares
COHEN & STEERS, INC.	6.97%3.75M shares
STATE STREET CORP	4.85%2.61M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.52%2.43M shares
PRINCIPAL FINANCIAL GROUP INC	4.30%2.31M shares
PRICE T ROWE ASSOCIATES INC /MD/	2.99%1.61M shares
NORGES BANK	2.78%1.49M shares
Boston Partners	2.49%1.34M shares
GEODE CAPITAL MANAGEMENT, LLC	2.12%1.14M shares
MORGAN STANLEY	2.07%1.11M shares
Nuveen, LLC	2.00%1.07M shares
Daiwa Securities Group Inc.	1.57%842.27K shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.57%841.82K shares
CBRE INVESTMENT MANAGEMENT LISTED REAL ASSETS LLC	1.52%819.32K shares
DIMENSIONAL FUND ADVISORS LP	1.49%801.28K shares
Invesco Ltd.	1.44%775.01K shares
NORTHERN TRUST CORP	1.42%762.26K shares
T. Rowe Price Investment Management, Inc.	1.41%757.59K shares
MILLENNIUM MANAGEMENT LLC	1.28%686.82K shares

Percentages use 53.76M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)4$1.06M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 4, 2026Form 4	Fields David MichaelDirector	SellCommon Stock	504	$195.77	$98.7K	3.5K
Nov 5, 2025Form 4	Dunbar Richard ReidExecutive Vice President	SellCommon Stock	2.0K	$175.00	$350.0K	20.6K
Sep 12, 2024Form 4	WOOD BRENTExecutive Vice President & CFO	SellCommon Stock	1.7K	$184.42	$308.0K	110.9K
Sep 12, 2024Form 4	Dunbar Richard ReidSenior Vice President	SellCommon Stock	1.6K	$183.99	$303.6K	20.1K

Review ownership filings at SEC.gov ↗

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Eastgroup Properties Inc (EGP)

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