Eastgroup Properties (EGP)
NYSE:EGP
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Eastgroup Properties
(NYSE:EGP)
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Rating:75Outperform
Price Target:
$226.00
â–²(12.52% Upside)
Action:ReiteratedDate:04/23/26
The score is driven primarily by strong underlying fundamentals—especially high-quality and improving cash flows—supported by a constructive uptrend and a positive earnings-call outlook with conservative leverage and durable occupancy. The main constraints are premium valuation (high P/E) and near-term fundamental/operational watch items including the TTM revenue pullback and extended lease-up timelines.
Positive Factors
Strong cash generation and FCF conversion
EastGroup's operating cash flow and free cash flow have materially improved since 2021, with FCF running ~84–87% of net income and operating cash covering net income above 2x since 2023. Durable cash conversion supports dividend coverage, development funding, and debt reduction over the next several months.
Negative Factors
Sharp TTM revenue decline
A ~24% TTM revenue decline signals meaningful near-term headwinds to FFO growth and cash flow momentum. Even with margins resilient, prolonged top-line weakness can impair reinvestment capacity, slow development pacing, and constrain distributable cash over the next 2–6 months if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and FCF conversion
EastGroup's operating cash flow and free cash flow have materially improved since 2021, with FCF running ~84–87% of net income and operating cash covering net income above 2x since 2023. Durable cash conversion supports dividend coverage, development funding, and debt reduction over the next several months.
Read all positive factors
Eastgroup Properties (EGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.76B
Dividend Yield3.15%
Average Volume (3M)330.90K
Price to Earnings (P/E)26.1
Beta (1Y)0.53
Revenue Growth11.31%
EPS Growth20.09%
CountryUS
Employees101
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)5.51
Shares Outstanding53,755,230
10 Day Avg. Volume330,422
30 Day Avg. Volume330,899
Financial Highlights & Ratios
PEG Ratio8.20
Price to Book (P/B)2.71
Price to Sales (P/S)13.15
P/FCF Ratio23.43
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue16.69
Enterprise Value/Gross Profit46.28
Enterprise Value/Ebitda22.77
Forecast
1Y Price Target
$212.38Price Target Upside5.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)5.65
Revenue Forecast (FY)$784.73M
Eastgroup Properties Business Overview & Revenue Model
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 Un...
How the Company Makes Money
EastGroup primarily makes money by leasing industrial properties to tenants and collecting contractual rental income. Its core revenue stream is base rent from long-term operating leases across its portfolio; cash flow is also supported by additio...
Eastgroup Properties Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 2026
Earnings Call Sentiment Positive
The call highlighted durable operating performance (51 consecutive quarters of FFO growth), high occupancy, conservative leverage, attractive development yields (~7%), ample land inventory and a differentiated shallow-bay positioning that has outperformed market vacancy trends. Key challenges discussed included last year’s slower-than-expected starts (planned $300M vs $175M started), longer lease-up times (16–17 months vs peak 6–7 months), permitting and power constraints, tariff/policy uncertainty, and localized land competition from data centers. On balance, the company presented multiple structural strengths and a conservative balance sheet that support optimism, while acknowledging execution and macro risks that management is actively managing.Positive Updates
Long Track Record of FFO and NOI Growth
51 consecutive quarters of FFO growth versus the same quarter prior year and the same streak for same-store NOI; roughly 13 years of positive FFO and positive same-store NOI if extended one more month.
Negative Updates
Slower-Than-Planned Development Starts Last Year
Management planned ~$300 million of starts last year but only began ~$175 million (Liberation Day timing and market pauses contributed); prior peak annual starts were just under ~$400 million.
Read all updates
Q1-2026 Updates
Positive
Negative
Long Track Record of FFO and NOI Growth
51 consecutive quarters of FFO growth versus the same quarter prior year and the same streak for same-store NOI; roughly 13 years of positive FFO and positive same-store NOI if extended one more month.
Read all positive updates
Company Guidance
Management reiterated disciplined 2026 guidance calling for about $250 million of development starts (with upside possible if preleases land), targeting development yields in the low‑to‑mid‑7% range (roughly 150 bps above market cap rates); they highlighted 51 consecutive quarters of year‑over‑year FFO and same‑store NOI growth approaching 13 years of positive FFO/same‑store NOI, portfolio leased at ~97% YE (96.6% as of the Friday update) with 166k SF signed since early February (including a ~100k SF expansion), ~70M SF of product, >1,400 customers, >1,000 acres of land, average tenant size ~35k SF and average building just under 100k SF, recent lease‑up timing stretched to ~16–17 months from peak 6–7 months, market cap rates generally low‑5s (varying upper‑4s to upper‑5s by market) while Southern California runs mid‑to‑upper‑5s, balance sheet metrics include debt/EBITDA ~3x and debt as a percent of market cap ~14%, top‑10 tenant concentration just under 7%, and same‑store NOI growth guidance of about 5.5% for 2027.Eastgroup Properties Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 737.14M | 721.34M | 638.53M | 566.40M | 487.02M | 409.48M |
| Gross Profit | 265.76M | 312.36M | 464.31M | 412.37M | 353.11M | 294.40M |
| EBITDA | 540.21M | 495.38M | 414.47M | 370.42M | 314.69M | 260.74M |
| Net Income | 292.62M | 257.42M | 227.75M | 200.49M | 186.18M | 157.56M |
Balance Sheet | ||||||
| Total Assets | 5.49B | 5.43B | 5.08B | 4.52B | 4.04B | 3.22B |
| Cash, Cash Equivalents and Short-Term Investments | 31.36M | 1.01M | 17.53M | 40.26M | 56.00K | 4.39M |
| Total Debt | 1.67B | 1.75B | 1.55B | 1.70B | 1.88B | 1.48B |
| Total Liabilities | 1.91B | 1.94B | 1.78B | 1.91B | 2.08B | 1.64B |
| Stockholders Equity | 3.58B | 3.50B | 3.29B | 2.61B | 1.95B | 1.57B |
Cash Flow | ||||||
| Free Cash Flow | 417.71M | 404.90M | 357.30M | 287.09M | 275.65M | 219.83M |
| Operating Cash Flow | 489.37M | 480.73M | 416.59M | 338.20M | 316.50M | 256.49M |
| Investing Cash Flow | -572.36M | -576.28M | -724.34M | -570.06M | -521.15M | -529.26M |
| Financing Cash Flow | 93.83M | 79.03M | 285.02M | 272.06M | 200.31M | 277.14M |
Eastgroup Properties Technical Analysis
Positive
200.86
Price Trends
189.11
Positive
184.16
Positive
174.91
Positive
Market Momentum
2.93
Negative
74.54
Negative
91.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EGP, the sentiment is Positive. The current price of 200.86 is above the 20-day moving average (MA) of 188.63, above the 50-day MA of 189.11, and above the 200-day MA of 174.91, indicating a bullish trend. The MACD of 2.93 indicates Negative momentum. The RSI at 74.54 is Negative, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.51B | 13.39 | 12.77% | 2.98% | 8.82% | 28.07% | |
75 Outperform | $10.76B | 26.14 | 8.37% | 3.15% | 11.31% | 20.09% | |
75 Outperform | $6.94B | 14.93 | 10.09% | 3.38% | 24.51% | 104.06% | |
71 Outperform | $7.38B | 27.77 | 6.95% | 4.02% | 9.98% | -2.19% | |
67 Neutral | $3.06B | -2,814.46 | 4.52% | 5.33% | -3.81% | 52.53% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | $8.02B | 20.49 | 2.71% | 4.30% | 2.02% | -23.68% |
* Real Estate Sector Average
EGP
Eastgroup Properties
198.34
37.20
23.09%
STAG
Stag Industrial
37.76
5.33
16.45%
TRNO
Terreno Realty
64.55
9.59
17.46%
FR
First Industrial Realty
61.06
13.85
29.33%
LXP
LXP Industrial Trust
50.62
12.68
33.43%
REXR
Rexford Industrial Realty
35.14
2.49
7.63%
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.