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Eastgroup Properties (EGP)
:EGP
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Eastgroup Properties
(NYSE:EGP)
Select Model
Select Model
Rating:77Outperform
Price Target:
$191.00
â–²(11.60% Upside)
Eastgroup Properties demonstrates strong financial performance and strategic growth, supported by a robust balance sheet and efficient operations. While the valuation suggests a potential overvaluation, the company's stable technical indicators and positive earnings call insights contribute to a favorable outlook.
Positive Factors
Revenue Growth
Consistent revenue growth indicates robust demand for EGP's industrial properties, reinforcing its market position and supporting long-term financial stability.
Leasing Performance
High leasing rates and occupancy demonstrate strong demand for EGP's properties, ensuring steady cash flow and reinforcing its competitive advantage in the logistics sector.
Diversified Tenant Base
A diversified tenant base reduces risk and enhances revenue stability, providing resilience against economic fluctuations and tenant-specific issues.
Negative Factors
Decreased Development Starts
Reduced development starts may limit future growth opportunities, impacting EGP's ability to expand its property portfolio and capitalize on market demand.
Slower Large Space Leasing
Slower leasing of large spaces could hinder revenue growth and occupancy rates, affecting EGP's ability to maximize property utilization and profitability.
Impact of Tariff Uncertainty
Tariff-related uncertainties can disrupt tenant expansion plans and delay leasing decisions, potentially affecting EGP's revenue and growth prospects in the near term.
Eastgroup Properties (EGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.13B
Dividend Yield3.36%
Average Volume (3M)376.59K
Price to Earnings (P/E)36.9
Beta (1Y)0.65
Revenue Growth11.22%
EPS Growth-3.16%
CountryUS
Employees101
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.20
Shares Outstanding53,334,393
10 Day Avg. Volume351,374
30 Day Avg. Volume376,592
Financial Highlights & Ratios
PEG Ratio6.35
Price to Book (P/B)2.38
Price to Sales (P/S)12.27
P/FCF Ratio18.80
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue15.17
Enterprise Value/Gross Profit23.27
Enterprise Value/Ebitda22.95
Forecast
1Y Price Target
$188.38Price Target Upside10.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Eastgroup Properties Business Overview & Revenue Model
Company DescriptionEastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.
How the Company Makes MoneyEastgroup Properties generates revenue primarily through rental income derived from leasing its industrial properties to a diverse range of tenants, including logistics firms and e-commerce companies. The company's revenue model is bolstered by long-term lease agreements, which provide stable cash flow. Additionally, EGP benefits from property appreciation and strategic acquisitions that enhance its portfolio value. The company may also engage in development projects that create new properties for lease, further expanding its revenue streams. Key partnerships with logistics and distribution companies help ensure a steady demand for its properties, while its focus on high-growth markets supports sustained occupancy rates and rental growth.
Eastgroup Properties Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong financial performance with record FFO per share and solid leasing metrics. However, challenges such as slower development starts, elongated leasing decision-making for larger spaces, and market uncertainty due to tariffs were highlighted. The company's strong balance sheet and strategic investments in high-growth areas like Raleigh were key positives.Q2-2025 Updates
Positive Updates
Record FFO Per Share
Funds from operations were $2.21 per share, up 7.8% for the quarter over the prior year, excluding involuntary conversions. This marks a long-term trend of over a decade where quarterly FFO per share has consistently exceeded the prior year's same quarter.
Strong Leasing Performance
Quarter-end leasing was 97.1% with occupancy at 96%. Average quarterly occupancy was 95.9%, despite a 110 basis points decrease from the second quarter of 2024. Re-leasing spreads were 44% GAAP and 30% cash, indicating strong lease renewals.
Diversified Tenant Base
The company has the most diversified rent roll in its sector with the top 10 tenants accounting for only 6.9% of rents, down 90 basis points from last year.
Solid Balance Sheet
Debt to total market capitalization was 14.2%, with an unadjusted debt-to-EBITDA ratio of 3.0x. The interest and fixed charge coverage increased to 16x, indicating strong financial health.
Strategic Investments
Invested $61 million in 2 new properties, raising market ownership in Raleigh to roughly 600,000 square feet, all near the growing Research Triangle Park.
Negative Updates
Decreased Development Starts
Lower development start projections from earlier in the year, reforecasting 2025 starts to $215 million with a lean towards the back end of the year.
Slower Large Space Leasing
Leasing of larger spaces has slowed, with prospects present but decision-making time elongated.
Impact of Tariff Uncertainty
Market uncertainty due to tariff discussions has delayed expansions and affected development leasing.
Occupancy Decrease
Average quarterly occupancy was down 110 basis points from the second quarter of 2024.
Company Guidance
During the EastGroup Properties Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and insights into their performance and future expectations. Funds from operations (FFO) were reported at $2.21 per share, marking a 7.8% increase over the previous year, excluding involuntary conversions. The quarter-end leasing rate was 97.1% with occupancy at 96%, and average quarterly occupancy stood at 95.9%, although this was a decrease of 110 basis points compared to the second quarter of 2024. Re-leasing spreads achieved were 44% on a GAAP basis and 30% on a cash basis. Cash same-store net operating income (NOI) rose by 6.4% for the quarter. The company has diversified its rent roll, with its top 10 tenants now accounting for only 6.9% of rents, down 90 basis points from the previous year. Guidance for the third quarter projects FFO per share in the range of $2.22 to $2.30, with a year-end estimate of $8.89 to $9.03. The guidance includes assumptions of an average month-end occupancy between 95.3% to 96.1% and anticipates cash same-store growth of 6.5%, with a slight decrease in average occupancy due to the conversion of some development projects. The company also highlighted its strategic focus on leasing to maintain occupancy despite market uncertainties and its readiness to capitalize on development opportunities as demand stabilizes.Eastgroup Properties Financial Statement Overview
Summary
Eastgroup Properties exhibits strong financial health with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company manages its leverage well and generates robust cash flows, positioning it favorably within the REIT - Industrial sector.Income Statement
Eastgroup Properties has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.66%. The company maintains strong profitability metrics, with a TTM gross profit margin of 65.3% and a net profit margin of 34.85%. The EBIT and EBITDA margins are also robust at 39.57% and 69.69%, respectively, indicating efficient operations and cost management.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44, showing moderate leverage. The return on equity is 7.35%, which is reasonable for the industry. The equity ratio stands at 65.67%, indicating a solid equity base relative to total assets.78
Positive
Cash Flow
Eastgroup Properties has shown strong cash flow performance, with a TTM free cash flow growth rate of 9.81%. The operating cash flow to net income ratio is 2.08, and the free cash flow to net income ratio is 1.0, reflecting efficient cash generation relative to earnings.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 676.89M | 638.53M | 566.40M | 487.02M | 409.48M | 363.02M |
| Gross Profit | 441.23M | 464.31M | 412.37M | 353.11M | 294.40M | 259.65M |
| EBITDA | 447.33M | 414.47M | 370.42M | 314.69M | 260.74M | 228.69M |
| Net Income | 236.54M | 227.75M | 200.49M | 186.18M | 157.56M | 108.36M |
Balance Sheet | ||||||
| Total Assets | 5.19B | 5.08B | 4.52B | 4.04B | 3.22B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 32.92M | 17.53M | 40.26M | 56.00K | 4.39M | 21.00K |
| Total Debt | 1.49B | 1.55B | 1.70B | 1.88B | 1.48B | 1.32B |
| Total Liabilities | 1.78B | 1.78B | 1.91B | 2.08B | 1.64B | 1.45B |
| Stockholders Equity | 3.41B | 3.29B | 2.61B | 1.95B | 1.57B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 453.91M | 416.59M | 338.20M | 275.65M | 223.19M | 163.15M |
| Operating Cash Flow | 453.91M | 416.59M | 338.20M | 316.50M | 256.49M | 196.28M |
| Investing Cash Flow | -661.26M | -724.34M | -570.06M | -521.15M | -529.26M | -288.26M |
| Financing Cash Flow | 200.87M | 285.02M | 272.06M | 200.31M | 277.14M | 91.77M |
Eastgroup Properties Technical Analysis
Positive
171.15
Price Trends
164.48
Positive
165.53
Positive
165.38
Positive
Market Momentum
1.49
Negative
60.21
Neutral
79.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGP, the sentiment is Positive. The current price of 171.15 is above the 20-day moving average (MA) of 166.36, above the 50-day MA of 164.48, and above the 200-day MA of 165.38, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGP.
Eastgroup Properties Risk Analysis
Eastgroup Properties disclosed 31 risk factors in its most recent earnings report. Eastgroup Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eastgroup Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.13B | 36.91 | 7.66% | 3.36% | 11.22% | -3.16% | |
76 Outperform | $5.99B | 23.10 | 6.85% | 3.43% | 22.17% | 40.80% | |
76 Outperform | $9.86B | 30.99 | 3.74% | 4.10% | 13.66% | 11.34% | |
74 Outperform | $7.06B | 25.28 | 10.33% | 3.30% | 9.66% | -4.60% | |
73 Outperform | $6.91B | 28.68 | 6.89% | 4.10% | 8.56% | 22.20% | |
69 Neutral | $2.77B | 33.83 | 4.15% | 5.77% | 6.64% | 210.89% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
EGP
Eastgroup Properties
171.15
-0.82
-0.48%
STAG
Stag Industrial
36.24
0.32
0.89%
TRNO
Terreno Realty
58.03
-5.01
-7.95%
FR
First Industrial Realty
51.70
-0.69
-1.32%
LXP
LXP Industrial Trust
9.36
0.27
2.97%
REXR
Rexford Industrial Realty
41.67
-3.73
-8.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.