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Eastgroup Properties (EGP)
NYSE:EGP
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Eastgroup Properties (EGP) AI Stock Analysis

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EGP

Eastgroup Properties

(NYSE:EGP)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
$243.00
â–²(14.03% Upside)
Action:Reiterated
Date:07/23/26
EGP scores well due to strong and improving fundamentals (notably cash flow growth and improving leverage) and supportive technical momentum, reinforced by a positive earnings call with raised guidance and record leasing. The main offset is valuation risk from a high P/E, with secondary watch-outs around margin variability and development/timing delays.
Positive Factors
Cash generation strength
Consistently rising operating and free cash flow provides durable internal funding for dividends, development and opportunistic buys without reliance on constant external financing. Strong cash conversion (FCF roughly 84%–87% of net income) improves resilience through cycles and supports capital allocation over months.
Negative Factors
Material absolute debt level
Although leverage ratios improved, the absolute $1.6B debt stock leaves the REIT exposed to higher financing costs or harder credit conditions. In a rising-rate or weaker leasing environment, substantial outstanding debt can amplify cash-flow pressure and constrain capital deployment over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Consistently rising operating and free cash flow provides durable internal funding for dividends, development and opportunistic buys without reliance on constant external financing. Strong cash conversion (FCF roughly 84%–87% of net income) improves resilience through cycles and supports capital allocation over months.
Read all positive factors

Eastgroup Properties (EGP) vs. SPDR S&P 500 ETF (SPY)

Eastgroup Properties Business Overview & Revenue Model

Company Description
EastGroup Properties, Inc. (NYSE: EGP), a self-administered equity real estate investment trust and an S&P MidCap 400 company, specializes in the development, acquisition, and management of industrial properties. The company concentrates its effor...
How the Company Makes Money
EastGroup primarily makes money by leasing industrial properties to tenants under contractual lease agreements and collecting recurring rental income. Key revenue streams include (1) base rent from occupied industrial space across its portfolio, (...

Eastgroup Properties Earnings Call Summary

Earnings Call Date:Jul 22, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call conveyed broad operational momentum — record leasing, strong same-store NOI growth (8.3% quarterly), rising development activity and improved guidance midpoints — supported by a strong balance sheet and diversified rent roll. Challenges cited were mostly timing- and market-specific (permitting/equipment delays, Bay Area softness, competitive acquisition market) and manageable in context. Given the preponderance of positive operating metrics, raised guidance and record leasing activity versus primarily tactical or timing-related lowlights, the overall tone is constructive.
Positive Updates
FFO Outperformance and Growth
FFO per share of $2.36 for the quarter exceeded guidance midpoint and rose 6.8% year-over-year for the quarter; year-to-date FFO per share up 7.6%; 2026 FFO guidance midpoint raised to $9.59 (up $0.03), which represents a 6.8% increase over 2025 actuals.
Negative Updates
Occupancy Slightly Down vs. Prior Year
Average quarterly occupancy was 95.6%, down 30 basis points from Q2 2025; management noted comparisons and comps in the back half of the year are difficult due to high prior-year occupancy (approx. 97% in back half 2025).
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Q2-2026 Updates
Negative
FFO Outperformance and Growth
FFO per share of $2.36 for the quarter exceeded guidance midpoint and rose 6.8% year-over-year for the quarter; year-to-date FFO per share up 7.6%; 2026 FFO guidance midpoint raised to $9.59 (up $0.03), which represents a 6.8% increase over 2025 actuals.
Read all positive updates
Company Guidance
Management raised and tightened 2026 guidance after a strong Q2: FFO was $2.36 (+$0.02 vs. prior midpoint; +6.8% Q/Q) with YTD FFO per share +7.6%; Q3 FFO is guided $2.37–$2.45 (mid $2.41) and the 2026 FFO midpoint was nudged to $9.59 (+$0.03, +6.8% vs. 2025). Same‑property NOI midpoint was increased to 6.8% (+60 bps) with expected same‑property occupancy 96.7% (average month‑end occupancy 95.7%, +20 bps vs. prior); quarter‑end leasing 96.8% and overall occupancy 95.6% (avg Q = 95.6%, -30 bps YoY; same‑store occupancy 96.9%). Leasing strength: record 3.9M sq ft signed in Q2 (1.1M first‑generation/development); re‑leasing spreads 34% GAAP / 19% cash (Q), YTD 35% / 19%; cash same‑store NOI +8.3% Q / +8.8% YTD. Development starts were raised to $325M (up $60M) with YTD starts $123M and $202M assumed in H2; acquisitions guidance up $55M to $215M (YTD $150M closed/under contract + $65M assumed Q4); gross capital proceeds $300M; spec‑development FFO remaining in guidance ~$0.01. Balance sheet: $0 drawn on secured facility with $675M available, debt/market cap 12.9%, annualized debt/EBITDA ~3x, interest & fixed‑charge coverage 15.1x; conversion yield on transfers 9.4% (lease‑up ~7.1%, under construction ~7.5%); top‑10 tenants = 6.6% of rent (down 30 bps).

Eastgroup Properties Financial Statement Overview

Summary
Strong operating fundamentals: revenue and net income have risen meaningfully through TTM, and cash generation is a standout with robust and growing operating cash flow/free cash flow. Balance sheet leverage has improved (lower debt-to-equity), though absolute debt remains material for a rate-sensitive REIT and profitability shows some margin variability.
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue753.19M721.34M638.53M566.40M487.02M409.48M
Gross Profit332.67M312.36M464.31M412.37M353.11M294.40M
EBITDA557.80M495.38M414.47M370.42M314.69M260.74M
Net Income304.84M257.42M227.75M200.49M186.18M157.56M
Balance Sheet
Total Assets5.52B5.43B5.08B4.52B4.04B3.22B
Cash, Cash Equivalents and Short-Term Investments33.38M1.01M17.53M40.26M56.00K4.39M
Total Debt1.67B1.75B1.55B1.70B1.88B1.48B
Total Liabilities1.95B1.94B1.78B1.91B2.08B1.64B
Stockholders Equity3.57B3.50B3.29B2.61B1.95B1.57B
Cash Flow
Free Cash Flow500.96M404.90M357.30M287.09M275.65M219.83M
Operating Cash Flow647.94M480.73M416.59M338.20M316.50M256.49M
Investing Cash Flow-587.05M-576.28M-724.34M-570.06M-521.15M-529.26M
Financing Cash Flow-30.07M79.03M285.02M272.06M200.31M277.14M

Eastgroup Properties Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price213.10
Price Trends
50DMA
206.29
Negative
100DMA
200.22
Positive
200DMA
189.83
Positive
Market Momentum
MACD
-1.13
Positive
RSI
34.05
Neutral
STOCH
4.41
Positive
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 213.1 is above the 20-day moving average (MA) of 212.03, above the 50-day MA of 206.29, and above the 200-day MA of 189.83, indicating a neutral trend. The MACD of -1.13 indicates Positive momentum. The RSI at 34.05 is Neutral, neither overbought nor oversold. The STOCH value of 4.41 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$11.24B36.608.61%2.91%10.80%22.88%
75
Outperform
$9.02B23.9413.42%2.82%8.44%34.29%
73
Outperform
$7.62B17.569.21%2.86%20.19%105.93%
71
Outperform
$7.38B29.436.94%3.70%9.63%3.17%
71
Outperform
$3.57B60.423.23%4.56%-4.21%-28.11%
67
Neutral
$8.42B-20.64-4.75%4.44%0.58%-234.18%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EGP
Eastgroup Properties
200.62
42.72
27.06%
STAG
Stag Industrial
36.80
3.21
9.56%
TRNO
Terreno Realty
68.15
15.34
29.04%
FR
First Industrial Realty
63.39
16.60
35.49%
LXP
LXP Industrial Trust
60.55
22.34
58.47%
REXR
Rexford Industrial Realty
36.50
1.25
3.53%

Eastgroup Properties Corporate Events

Executive/Board ChangesShareholder Meetings
EastGroup Properties Shareholders Reaffirm Board and Governance Direction
Positive
May 26, 2026
At its May 21, 2026 annual meeting, EastGroup Properties’ shareholders re-elected all seven director nominees, including President and CEO Marshall A. Loeb, with strong support, reinforcing continuity in the company’s board leadership....
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.Date of analysis: Jul 23, 2026