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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)

Rating:76Outperform
Price Target:
$188.00
â–²(13.10%Upside)
EastGroup Properties presents a strong financial foundation with solid growth potential, supported by robust earnings growth and a strong balance sheet. While the technical analysis indicates some short-term challenges, and the valuation suggests a potential overvaluation, the positive earnings call and dividend yield contribute to an overall favorable outlook.
Positive Factors
Acquisition Guidance
EastGroup Properties has raised its acquisition guidance to $160 million from $150 million, indicating potential growth opportunities.
Cost of Equity
EastGroup Properties continues to take advantage of a favorable cost of equity with leverage improved as debt maturities were paid off with equity.
Earnings and Guidance
EGP's 2Q25 result was highlighted by a FFOps beat and '25 guidance raise above consensus, rising occupancy, and accelerating Cash SSNOI.
Negative Factors
Development Start Reduction
Development start guide was lowered to $215m from $250m, indicating potential slowdown in new projects.
Occupancy Decline
Investors may focus on the expected occupancy decline and the reduction in development starts guidance, suggesting slower leasing activity on the development pipeline.
Stock Performance
EGP is down -7.4% in the past month, underperforming compared to the VNQ, which is down -3%.

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

Eastgroup Properties Business Overview & Revenue Model

Company DescriptionEastGroup Properties (EGP) is a publicly traded real estate investment trust (REIT) that specializes in the development, acquisition, and operation of industrial properties in major Sunbelt markets throughout the United States. The company focuses on providing state-of-the-art distribution facilities to a diverse range of tenants, primarily targeting the supply chain and logistics sectors. EastGroup Properties primarily serves businesses that require efficient warehousing and distribution solutions for their operations.
How the Company Makes MoneyEastGroup Properties generates revenue primarily through the leasing of its industrial properties to a wide array of tenants in the logistics and supply chain sectors. The company's business model revolves around acquiring, developing, and managing strategically located industrial properties that are in high demand. Key revenue streams include rental income from long-term leases with tenants and property appreciation. The company also benefits from economies of scale and cost efficiencies gained by clustering properties in key markets, which enhances its ability to attract and retain tenants. Additionally, EastGroup Properties may engage in strategic partnerships and joint ventures to expand its portfolio and market reach, further contributing to its revenue generation.

Eastgroup Properties Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: -1.97%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced perspective with significant achievements in FFO growth, leasing rates, and diversification, countered by challenges in occupancy decline, development leasing slowdowns, and market-specific issues. Despite macroeconomic uncertainties, the company maintains a strong financial position and strategic focus.
Q2-2025 Updates
Positive Updates
Funds from Operations Growth
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 FFO per share exceeding the prior year's same quarter results for over a decade.
Strong Leasing and Occupancy Rates
Quarter-end leasing was 97.1% with occupancy at 96%. Average quarterly occupancy was 95.9%, which, although historically strong, is down 110 basis points from the second quarter of 2024.
Re-leasing Spreads and Cash Same-Store NOI
Quarterly re-leasing spreads were 44% GAAP, 30% cash, with cash same-store NOI rising 6.4% for the quarter despite lower occupancy.
Diversified Rent Roll
Diversification efforts resulted in the top 10 tenants representing only 6.9% of rents, down 90 basis points from last year.
Investment in Growth Markets
Invested $61 million in 2 new properties, expanding market ownership in Raleigh to roughly 600,000 square feet.
Negative Updates
Occupancy Decline
Average quarterly occupancy decreased by 110 basis points from the second quarter of 2024.
Slower Development Leasing
Development leasing slowed, impacting development start projections, which were reduced to $215 million with a lean towards the back end of the year.
Challenges in Southern California
The Los Angeles market experienced 10 consecutive quarters of negative absorption, leading to aggressive rent and concession strategies.
Macroeconomic Uncertainty Impact
The tariff discussions and macroeconomic uncertainty impacted larger space leasing, delaying expansions and elongating decision-making times.
Company Guidance
During the EastGroup Properties Second Quarter 2025 Earnings Conference Call, the company provided various forward-looking metrics and guidance for the remainder of the year. Funds from Operations (FFO) per share for the second quarter was $2.21, marking a 7.8% increase over the prior year, and the company anticipates FFO for the third quarter to be between $2.22 and $2.30 per share. Average month-end occupancy is forecasted to range from 95.3% to 96.1%, with full-year FFO per share expected to be between $8.89 and $9.03, reflecting a midpoint increase of $0.02 per share compared to previous guidance. The company also revised its guidance for cash same-store growth, increasing the midpoint by 20 basis points to 6.5%, while noting a slight decrease in average occupancy by 10 basis points, primarily due to development project conversions prior to reaching full occupancy. Additionally, EastGroup updated its development start projections for 2025 to $215 million, with a focus on the latter half of the year, and highlighted its strong balance sheet, with debt to total market capitalization at 14.2% and an interest coverage ratio of 16x.

Eastgroup Properties Financial Statement Overview

Summary
EastGroup Properties shows a robust financial position with strong revenue growth and improved profit margins. The balance sheet is exceptionally strong with no debt, reducing financial risk significantly. Cash flows are solid, although there is some volatility in investing cash flows.
Income Statement
85
Very Positive
Eastgroup Properties demonstrates strong revenue growth with a notable increase in total revenue from $487.0M in 2022 to $488.5M in TTM (Trailing-Twelve-Months), indicating a positive growth trend. The gross profit margin remains robust at 63.8% in TTM, coupled with an impressive EBITDA margin of 115.8%. However, the net profit margin improved significantly to 34.6% in TTM, showing effective cost management and profitability improvement.
Balance Sheet
90
Very Positive
The balance sheet is exceptionally strong, reflected by a debt-free position in TTM, which significantly reduces financial risk. The equity ratio stands at a healthy 65.5%, indicating a strong equity base. The return on equity is impressive at 5.1%, showcasing effective utilization of shareholder funds to generate profits.
Cash Flow
78
Positive
The cash flow position is solid with a high operating cash flow to net income ratio of 2.56 in TTM, suggesting strong cash generation relative to net income. Free cash flow also shows positive growth, increasing to $413.4M in TTM. However, fluctuations in cash flow from investing activities could suggest potential volatility in capital investments.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue640.23M570.59M487.02M409.48M363.02M
Gross Profit466.02M416.56M353.11M294.40M259.65M
EBITDA444.62M399.22M337.41M278.82M245.53M
Net Income227.75M200.49M186.18M123.78M73.49M
Balance Sheet
Total Assets5.08B4.52B4.04B3.22B2.72B
Cash, Cash Equivalents and Short-Term Investments17.53M40.26M56.00K4.39M21.00K
Total Debt1.55B1.70B1.88B1.48B1.32B
Total Liabilities1.78B1.91B2.08B1.64B1.45B
Stockholders Equity3.29B2.61B1.95B1.57B1.27B
Cash Flow
Free Cash Flow416.59M338.20M275.65M223.19M163.15M
Operating Cash Flow416.59M338.20M316.50M256.49M196.28M
Investing Cash Flow-724.34M-570.06M-521.15M-529.26M-288.26M
Financing Cash Flow285.02M272.06M200.31M277.14M91.77M

Eastgroup Properties Technical Analysis

Technical Analysis Sentiment
Negative
Last Price166.22
Price Trends
50DMA
168.01
Negative
100DMA
167.65
Negative
200DMA
167.91
Negative
Market Momentum
MACD
-0.59
Positive
RSI
44.32
Neutral
STOCH
60.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGP, the sentiment is Negative. The current price of 166.22 is below the 20-day moving average (MA) of 166.84, below the 50-day MA of 168.01, and below the 200-day MA of 167.91, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$8.89B28.313.74%4.51%13.66%11.34%
77
Outperform
$6.84B24.5110.33%3.27%9.66%-4.60%
76
Outperform
$8.87B36.577.66%3.37%11.22%-3.16%
76
Outperform
$6.78B27.437.15%4.18%8.81%33.30%
76
Outperform
$5.91B28.925.33%3.44%22.17%4.34%
66
Neutral
$2.41B42.572.98%6.56%5.68%358.78%
64
Neutral
$6.87B15.19-1.99%6.97%4.50%-23.97%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EGP
Eastgroup Properties
164.52
-16.56
-9.15%
STAG
Stag Industrial
35.64
-3.16
-8.14%
TRNO
Terreno Realty
57.04
-9.25
-13.95%
FR
First Industrial Realty
49.83
-2.76
-5.25%
LXP
LXP Industrial Trust
8.07
-1.65
-16.98%
REXR
Rexford Industrial Realty
37.58
-9.70
-20.52%

Eastgroup Properties Corporate Events

Executive/Board ChangesShareholder Meetings
EastGroup Properties Confirms Board and Auditor Decisions
Neutral
May 27, 2025

On May 22, 2025, EastGroup Properties, Inc. held its annual meeting of shareholders, where the election of seven directors to the Board was confirmed, KPMG LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and the compensation of the Company’s named executive officers was approved on a non-binding advisory basis. These decisions reflect the company’s commitment to maintaining strong governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (EGP) stock is a Hold with a $175.00 price target. To see the full list of analyst forecasts on Eastgroup Properties stock, see the EGP Stock Forecast page.

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 25, 2025