EarningsQ3 2026 Earnings Report
MX:EGP Q3 2026 EPS Results
Actual EPS$27.43
Consensus EPS$25.59
Beat/MissBeat by +$1.84
One Year Ago EPS$23.67
MX:EGP Q3 2026 Revenue Results
Actual Revenue$3.75B
Expected Revenue$3.71B
Beat/MissBeat by +$36.16M
YoY Revenue Growth+9.50%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
MX:EGP Upcoming Earnings
Eastgroup Properties's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:EGP Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. EastGroup reported FFO growth, record second-generation leasing, high occupancy, strong same-store NOI growth, improved rent growth, increased development and acquisition activity, and multiple upward revisions to 2026 guidance. Management also highlighted a strong balance sheet and broad-based demand. The principal challenges were rising construction costs, higher cap rates, difficult year-over-year comparisons, weaker California markets, and general economic and demand risks, but these did not outweigh the operational and financial strengths discussed.Company Guidance
FFO Growth and Guidance Increase
Third-quarter funds from operations were $2.45 per share, $0.04 above the guidance midpoint and up 7.9% from the third quarter of 2025. Year-to-date FFO per share increased 7.7%, and quarterly FFO per share has exceeded the same quarter of the prior year for over a decade. The company raised the midpoint of 2026 FFO guidance by $0.06 to $9.65 per share, representing a 7.5% increase over 2025 actual results.
Strong Occupancy and Leasing Metrics
Quarter-end leasing was 97.3%, occupancy was 96.5%, and quarter-end same-store occupancy was 97%. Average month-end same-property occupancy was 96.9%, while average month-end portfolio occupancy was 96.1%; both exceeded projections by 50 basis points. The company increased its projected 2026 same-property occupancy to 97%, 30 basis points above prior guidance, and projected average month-end operating portfolio occupancy to 95.9%, 20 basis points above prior guidance.
Record Second-Generation Leasing and Re-Leasing Spreads
The company completed a record 2.9 million square feet of second-generation leases in the third quarter. Quarterly re-leasing spreads were 36% on a GAAP basis and 21% on a cash basis, while year-to-date spreads were 36% GAAP and 20% cash. Tenant retention was almost 79% year-to-date, compared with a typical 70%-75% retention range cited by management.
Cash Same-Store NOI Outperformance
Third-quarter cash same-property NOI growth was 7.1%, exceeding projections by 170 basis points, and year-to-date growth was 8.2%. The company raised its 2026 cash same-property NOI guidance midpoint by 70 basis points to 7.5% and increased its fourth-quarter same-store growth projection by 100 basis points over prior guidance.
Broad-Based Industrial Demand
Industrial demand remained steady and the operating environment was described as healthy, with demand broad-based across tenants and markets. Key demand tailwinds included e-commerce, advanced manufacturing, data center-related uses, population migration, and servicing local economies. Management said tenants increasingly want modern, functional buildings near end consumers, which aligns with EastGroup's portfolio.
Development Starts Raised to a Record Level
The company increased projected 2026 development starts by $65 million to $390 million, which would be a new EastGroup record. Year-to-date development starts totaled $285 million, with $105 million planned for the fourth quarter. The increase was attributed to development leasing strength and the current leasing environment, including 500,000 square feet of development leases signed in the quarter and approximately 2 million square feet year-to-date versus approximately 1.3 million square feet for all of the prior year.
Strategic Land Acquisitions
EastGroup acquired three land sites during the quarter. Two will expand development in existing parks, and the third will support a new development in South Florida, identified as one of the company's key growth markets.
Acquisition Activity and Higher Guidance
During the third quarter and through October, the company acquired five projects for a total investment of $320 million. Acquisition guidance was increased by $145 million to $360 million for 2026. Management said the acquisitions deepen its presence in existing markets, fit the top third or top quartile of the portfolio, and are immediately accretive; year-to-date acquired assets are expected to produce a stabilized straight-line yield of approximately 6.5%.
Strong Balance Sheet and Capital Flexibility
Debt to total market capitalization was 14.6% at quarter-end, the annualized third-quarter debt-to-EBITDA ratio was 3.2x, and interest and fixed-charge coverage was 14.7x. The company had $195 million outstanding on its $675 million unsecured bank credit facilities. Management said its financial position enabled it to pursue development and acquisition opportunities during a period of tighter capital-market liquidity.
Capital Raised to Fund Investment Activity
EastGroup entered into forward equity share agreements totaling $485 million during the third quarter. Including agreements outstanding from earlier in the year, total forward equity share agreements were $695 million at a weighted average price of approximately $202 per share. Gross capital proceeds guidance for 2026 was increased from $300 million to $625 million to support increased investment activity, including acquisitions, land, development starts, and $140 million of fourth-quarter unsecured debt maturities.
Positive Fourth-Quarter Outlook
Fourth-quarter FFO guidance is $2.47-$2.53 per share, with a midpoint of $2.50, which is $0.02 above the previous fourth-quarter projection. Management expects strong cash same-property NOI results to continue, supported by rental rate increases on in-place and budgeted leases and expected same-property occupancy of 97%.
Data Center Supplier Leasing Contribution
The company signed approximately 135,000 square feet of data center-related leases in the third quarter. Data center-related activity represented approximately 15% of overall new leasing activity year-to-date, and management said the supplier network in key markets such as Dallas, Houston, Atlanta, Phoenix, and the Carolinas could continue to expand.
Rent Growth Across Most Markets
Management cited year-to-date rent growth of approximately mid-single digits in markets including the Carolinas, Georgia, Texas, and Arizona, with expectations for higher rent growth next year due to demand and rising construction costs. Management estimated that approximately 90% of the portfolio has the ability to push rents, and said the best markets could reach low double-digit growth next year while the weakest markets may be fairly flat.
Stable Collections and Bad Debt
Rent collections remained healthy, and the tenant watch list was steady. Bad debt remained in line with the historical average of approximately 30-35 basis points of revenue, with no deterioration or specific tenant industry or geographic concern detected.
Portfolio Diversification Improved
The company's top 10 tenants represented 6.5% of rents, down 40 basis points from the third quarter of last year. Management emphasized geographic and tenant diversity as strategic paths to stabilize earnings across economic environments.
Strategic Use of Ground Leases
More than 95% of the portfolio is fee simple. Where EastGroup uses ground leases, management said they are concentrated in strategic, difficult-to-replace locations such as the DFW Airport and tribal land in Arizona, with the DFW ground lease payment currently serving as a substitute for taxes and often being lower than the tax rate.
MX:EGP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed