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Eastgroup Properties (EGP)
NYSE:EGP
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Eastgroup Properties
(NYSE:EGP)
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Rating:78Outperform
Price Target:
$202.00
▲(16.07% Upside)
Eastgroup Properties' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a positive trend, though valuation concerns slightly temper the outlook. The company's cautious approach to development amid market challenges is noted but does not significantly detract from its overall strong position.
Positive Factors
Strong Financial Position
Eastgroup Properties' strong financial position, characterized by low leverage and high coverage ratios, enhances its ability to invest in growth opportunities and weather economic fluctuations.
Leasing Metrics
High occupancy rates and strong leasing spreads indicate robust demand for Eastgroup's properties, supporting stable cash flows and potential rent increases.
FFO Growth
Consistent FFO growth reflects Eastgroup's effective management and ability to generate increasing cash flows, supporting dividend payments and reinvestment.
Negative Factors
Delayed Development Pipeline
Slower development pipeline progress may limit Eastgroup's ability to capitalize on market opportunities and expand its property portfolio in the near term.
Challenges in California Market
Persistent challenges in the California market could hinder Eastgroup's leasing performance and growth prospects in this key region.
Limited New Construction Starts
Limited new construction starts due to regulatory hurdles may restrict Eastgroup's capacity to expand its property offerings and meet rising demand.
Eastgroup Properties (EGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.28B
Dividend Yield3.3%
Average Volume (3M)365.54K
Price to Earnings (P/E)37.1
Beta (1Y)0.65
Revenue Growth11.10%
EPS Growth-1.65%
CountryUS
Employees101
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.26
Shares Outstanding53,348,644
10 Day Avg. Volume435,057
30 Day Avg. Volume365,537
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 Cap1.14
Enterprise Value/Revenue15.17
Enterprise Value/Gross Profit26.23
Enterprise Value/Ebitda23.12
Forecast
1Y Price Target
$189.00Price Target Upside8.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
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:Oct 23, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call detailed solid financial performance with growth in FFO and strong leasing metrics, but faced challenges with slower development leasing and difficulties in specific markets like California. The company maintains a strong financial position, but is cautious about the pace of development starts.Q3-2025 Updates
Positive Updates
FFO Growth
Funds from operations (FFO) at $2.27 per share, up 6.6% for the quarter over the prior year, continuing a decade-long trend of exceeding prior year's FFO per share.
Leasing Metrics
Quarter-end leasing was 96.7% with occupancy at 95.9%. Quarterly re-leasing spreads were 36% GAAP and 22% cash for leases signed during the quarter.
Cash Same-Store Growth
Cash same-store rose 6.9% for the quarter and 6.2% year-to-date.
Strong Financial Position
Debt to total market capitalization at 14.1%, unadjusted debt to EBITDA ratio of 2.9 times, and interest and fixed charge coverage increased to 17 times.
Acquisitions and Development
Acquired properties in Raleigh, North Carolina, new development land in Orlando, and new buildings and land in Northeast Dallas market.
Negative Updates
Occupancy Decline
Average quarterly occupancy was 95.7%, down 100 basis points from the third quarter of 2024.
Delayed Development Pipeline
Development pipeline leasing and projected yields are maintained but at a slower pace, lowering development start projections to $200 million from earlier in the year.
Challenges in California Market
Los Angeles market experienced 11 consecutive quarters of negative net absorption, challenging the leasing efforts.
Limited New Construction Starts
Construction starts were historically low, with increasing difficulty in obtaining zoning and permitting, projected starts reduced by $15 million.
Company Guidance
During EastGroup Properties, Inc.'s third quarter 2025 earnings call, CEO Marshall A. Loeb highlighted a 6.6% increase in funds from operations (FFO) per share, reaching $2.27 compared to the previous year. The company's quarter-end leasing stood at 96.7% with an occupancy rate of 95.9%, while average quarterly occupancy was slightly lower at 95.7%, down 100 basis points from the third quarter of 2024. Leasing spreads showed a 36% increase on a GAAP basis and 22% on a cash basis for new leases, with year-to-date results higher at 42% increases. Cash same-store performance improved by 6.9% for the quarter and 6.2% year-to-date. The company also reported a highly diversified rent roll, with the top 10 tenants accounting for just 6.9% of total rent, down 60 basis points from the previous year. Despite a cautious tenant expansion environment impacting the development pipeline, EastGroup remains optimistic about long-term prospects, expecting to reforecast 2025 starts to $200 million and noting that limited supply and increased demand could drive rents up. CFO Brent W. Wood projected FFO guidance for the fourth quarter to be between $2.30 to $2.34 per share, with an annual range of $8.94 to $8.98, marking a 7.3% to 7.9% increase from the prior year.Eastgroup Properties Financial Statement Overview
Summary
Eastgroup Properties demonstrates solid financial health with strong profitability, efficient operations, and a balanced capital structure. The company maintains steady revenue growth and effective cash flow management, positioning it well for future growth in the industrial REIT sector.Income Statement
Eastgroup Properties shows strong profitability with a consistent net profit margin around 35% and a healthy gross profit margin. Revenue growth is steady, with a TTM growth rate of 2.85%, indicating stable expansion. The EBIT and EBITDA margins are robust, reflecting efficient operations.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has improved over time, currently at 0.44, indicating a balanced leverage position. Return on equity is moderate at 7.33%, suggesting reasonable profitability relative to shareholder equity. The equity ratio is stable, reflecting a solid capital structure.78
Positive
Cash Flow
Operating cash flow and free cash flow are strong, with a TTM free cash flow growth rate of 3.52%. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio consistently at 1.0 shows effective cash management.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 696.15M | 638.53M | 566.40M | 487.02M | 409.48M | 363.02M |
| Gross Profit | 402.52M | 464.31M | 412.37M | 353.11M | 294.40M | 259.65M |
| EBITDA | 456.53M | 414.47M | 370.42M | 314.69M | 260.74M | 228.69M |
| Net Income | 248.31M | 227.75M | 200.49M | 186.18M | 157.56M | 108.36M |
Balance Sheet | ||||||
| Total Assets | 5.35B | 5.08B | 4.52B | 4.04B | 3.22B | 2.72B |
| Cash, Cash Equivalents and Short-Term Investments | 2.98M | 17.53M | 40.26M | 56.00K | 4.39M | 21.00K |
| Total Debt | 1.54B | 1.55B | 1.70B | 1.88B | 1.48B | 1.32B |
| Total Liabilities | 1.85B | 1.78B | 1.91B | 2.08B | 1.64B | 1.45B |
| Stockholders Equity | 3.51B | 3.29B | 2.61B | 1.95B | 1.57B | 1.27B |
Cash Flow | ||||||
| Free Cash Flow | 397.23M | 357.30M | 287.09M | 275.65M | 219.83M | 163.15M |
| Operating Cash Flow | 469.88M | 416.59M | 338.20M | 316.50M | 256.49M | 196.28M |
| Investing Cash Flow | -772.70M | -724.34M | -570.06M | -521.15M | -529.26M | -288.26M |
| Financing Cash Flow | 288.85M | 285.02M | 272.06M | 200.31M | 277.14M | 91.77M |
Eastgroup Properties Technical Analysis
Neutral
174.03
Price Trends
169.41
Positive
167.09
Positive
167.09
Positive
Market Momentum
2.66
Positive
50.71
Neutral
37.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGP, the sentiment is Neutral. The current price of 174.03 is below the 20-day moving average (MA) of 174.71, above the 50-day MA of 169.41, and above the 200-day MA of 167.09, indicating a neutral trend. The MACD of 2.66 indicates Positive momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
| ― | $9.28B | 37.14 | 7.83% | 3.30% | 11.10% | -1.65% | |
| ― | $9.65B | 29.95 | 4.03% | 4.12% | 10.27% | 15.25% | |
| ― | $2.82B | 34.41 | 4.15% | 5.67% | 6.64% | 210.89% | |
| ― | $6.02B | 24.01 | 6.85% | 3.41% | 22.17% | 40.80% | |
| ― | $7.03B | 30.17 | 6.89% | 3.95% | 8.56% | 22.20% | |
| ― | $7.60B | 31.41 | 8.97% | 3.06% | 9.66% | -23.17% | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
EGP
Eastgroup Properties
174.03
5.81
3.45%
STAG
Stag Industrial
37.64
1.40
3.86%
TRNO
Terreno Realty
58.29
-1.06
-1.79%
FR
First Industrial Realty
55.67
4.03
7.80%
LXP
LXP Industrial Trust
9.52
0.62
6.97%
REXR
Rexford Industrial Realty
41.47
-0.66
-1.57%
Eastgroup Properties Corporate Events
EastGroup Properties’ Earnings Call Highlights Growth Amid Challenges
Oct 25, 2025
EastGroup Properties’ Recent Earnings Call Reflects Optimism Amid Challenges
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.