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1. Company Snapshot

1.a. Company Description

EastGroup 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.

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1.b. Last Insights on EGP

EastGroup Properties' recent performance was driven by solid Q4 results, with earnings per share (EPS) of $1.16 slightly beating expectations. The company's high occupancy rates, demonstrated consistent funds from operations (FFO) growth, and strong balance sheet with low debt-to-EBITDA support its growth potential. Additionally, EastGroup's recent acquisitions and high-demand, supply-constrained Sunbelt markets position the company for resilience and growth. The company's 3.6% dividend yield also makes it an attractive buy-and-hold investment.

1.c. Company Highlights

2. EastGroup Properties' Q3 2025 Earnings: A Resilient Industrial REIT

EastGroup Properties, Inc. reported its third-quarter 2025 earnings, with funds from operation (FFO) at $2.27 per share, slightly missing estimates of $2.28 per share. The company's portfolio quality is demonstrated by its quarter-end leasing of 96.7% and occupancy of 95.9%. Cash same-store rose 6.9% for the quarter and 6.2% year-to-date, indicating a strong growth trajectory. The company's actual EPS was not explicitly stated, but the FFO per share growth was 6.6% from the prior year.

Publication Date: Oct -26

📋 Highlights
  • FFO Growth: Funds from operations (FFO) rose 6.6% to $2.27 per share, driven by strong portfolio performance.
  • Occupancy Rates: Achieved 95.7% average quarterly occupancy, with quarter-end leasing at 96.7%, reflecting industrial market resilience.
  • Rent Roll Diversification: Top 10 tenants account for 6.9% of rent, down 60 basis points, lowering concentration risk.
  • 2025 Guidance: Raised FFO per share outlook to $8.94–$8.98 annually, a 7.3–7.9% increase over 2024.
  • Debt Metrics: Maintained low leverage with debt-to-EBITDA at 2.9x and debt-to-market cap at 14.1%, supporting capital flexibility.

Financial Performance and Guidance

The company updated its 2025 guidance, estimating FFO per share for the fourth quarter to be in the range of $2.30 to $2.34 per share and for the year in the range of $8.94 to $8.98, representing increases of 7.9% to 7.3% compared to the prior year. The company's debt to total market capitalization was 14.1%, and the unadjusted debt to EBITDA ratio was 2.9 times, indicating a healthy balance sheet. EastGroup Properties' management believes that if demand remains steady, it could lead to another leg up in rents, citing a "cost to waiting on leases."

Operational Highlights

The company's most diversified rent roll in its sector, with its top 10 tenants falling to 6.9% of rent, down 60 basis points from last year, reduces tenant concentration risk. The Eastern Region, particularly Florida, has been a strong market, while Texas is also performing well, with the company 100% leased in Dallas. Arizona is another market where the company is seeing strength, with 100% occupancy in Phoenix and Tucson.

Valuation and Growth Prospects

With a P/E Ratio of 37.94 and an EV/EBITDA of 24.08, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 9.0%. The company's ROE of 7.33% and Dividend Yield of 3.24% make it an attractive investment opportunity for income-seeking investors. EastGroup Properties' development pipeline is leasing and maintaining projected yields but at a slower pace, which has lowered development start projections from earlier in the year to $200 million.

Market Outlook and Strategy

The company is cautiously optimistic about larger prospects, with improved activity in these spaces. Construction costs have come down by 10 to 12%, and the company is underwriting development projects on today's rents, not forecasting any growth. EastGroup Properties feels good about its capital position and ability to tap into debt markets, and it is excited about opportunities to put capital to work in accretive ways for shareholders.

3. NewsRoom

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CUZ vs. EGP: Which Stock Is the Better Value Option?

Nov -28

Source: zacks.com

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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B&I Capital AG Sells 1,370 Shares of EastGroup Properties, Inc. $EGP

Nov -27

Source: defenseworld.net

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CUZ or EGP: Which Is the Better Value Stock Right Now?

Nov -12

Source: zacks.com

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The End Of The REIT Bear Market Is Likely Near

Nov -11

Source: seekingalpha.com

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Best REITs For Potential Upside To Buy Now

Nov -08

Source: seekingalpha.com

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Ethic Inc. Has $247,000 Stock Holdings in EastGroup Properties, Inc. $EGP

Oct -31

Source: defenseworld.net

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EastGroup Properties (EGP)'s Technical Outlook is Bright After Key Golden Cross

Oct -28

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.01%)

6. Segments

Real Estate

Expected Growth: 12%

EastGroup Properties, Inc.'s 12% growth in Real Estate is driven by increasing demand for industrial properties, e-commerce growth, and limited supply in key markets. Additionally, the company's strategic acquisitions, development projects, and strong operating performance contribute to its growth. Furthermore, the rising need for last-mile delivery facilities and cold storage spaces also supports the segment's growth.

Other Revenue

Expected Growth: 14%

EastGroup Properties' 14% Other Revenue growth is driven by increased lease termination fees, higher utility reimbursements, and growing demand for value-added services such as storage and parking. Additionally, the company's strategic acquisitions and expansions into high-growth markets have contributed to the revenue surge.

7. Detailed Products

Industrial Properties

EastGroup Properties, Inc. owns and operates a portfolio of industrial properties, including warehouses, distribution centers, and light industrial facilities.

Business Distribution Centers

EastGroup Properties, Inc. offers business distribution centers that provide flexible and efficient space for companies to manage their supply chain and logistics operations.

Freezer and Cooler Facilities

EastGroup Properties, Inc. provides specialized freezer and cooler facilities for companies requiring temperature-controlled storage and distribution of perishable goods.

Last-Mile Delivery Facilities

EastGroup Properties, Inc. offers last-mile delivery facilities that enable fast and efficient delivery of goods to customers.

Build-to-Suit Facilities

EastGroup Properties, Inc. develops build-to-suit facilities tailored to meet the specific needs of companies, including customized design, layout, and features.

8. EastGroup Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EastGroup Properties, Inc. operates in the industrial real estate market, which has a moderate threat of substitutes. While there are alternative options for customers, such as owning their own facilities, the convenience and flexibility of leasing from EastGroup Properties, Inc. mitigate this threat.

Bargaining Power Of Customers

EastGroup Properties, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's properties are often located in areas with high demand, giving it an upper hand in negotiations.

Bargaining Power Of Suppliers

EastGroup Properties, Inc. has a strong financial position, which gives it bargaining power over its suppliers. The company can negotiate favorable terms and prices for materials and services.

Threat Of New Entrants

The industrial real estate market has significant barriers to entry, including high capital requirements and regulatory hurdles. This limits the threat of new entrants and gives EastGroup Properties, Inc. a competitive advantage.

Intensity Of Rivalry

The industrial real estate market is competitive, with several established players. However, EastGroup Properties, Inc. has a strong market position and a diversified portfolio, which helps it to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.41%
Debt Cost 3.95%
Equity Weight 60.59%
Equity Cost 8.80%
WACC 6.89%
Leverage 65.04%

11. Quality Control: EastGroup Properties, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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National Storage

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Value: 5.3

Growth: 5.4

Quality: 7.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

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STAG Industrial

A-Score: 6.1/10

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Quality: 7.2

Yield: 7.0

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First Industrial Realty Trust

A-Score: 5.9/10

Value: 2.5

Growth: 5.6

Quality: 8.0

Yield: 6.0

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Terreno Realty

A-Score: 5.8/10

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Quality: 7.4

Yield: 6.0

Momentum: 4.0

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EastGroup Properties

A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

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A-Score: 5.7/10

Value: 3.0

Growth: 6.2

Quality: 5.9

Yield: 8.0

Momentum: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

180.24$

Current Price

180.24$

Potential

-0.00%

Expected Cash-Flows