Eastgroup Properties (EGP) AI Stock Analysis

• Market Cap: $10.47B
• Dividend Yield: 3.15%
• Average Volume (3M): 400.51K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 0.53
• Revenue Growth: 11.10%
• EPS Growth: -1.65%
• Country: US
• Employees: 101
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.27
• Shares Outstanding: 53,334,206
• 10 Day Avg. Volume: 368,037
• 30 Day Avg. Volume: 400,508
• PEG Ratio: 8.20
• Price to Book (P/B): 2.71
• Price to Sales (P/S): 13.15
• P/FCF Ratio: 23.43
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 16.99
• Enterprise Value/Gross Profit: 33.68
• Enterprise Value/Ebitda: 24.83
• 1Y Price Target: $203.94
• Price Target Upside: 3.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 5.12
• Revenue Forecast (FY): $781.73M

• Rating: 74 Outperform
• Price Target: $213.00 ▲(8.50% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is driven primarily by solid fundamentals (profitability, cash-flow growth, and improved leverage) and constructive earnings-call guidance supporting continued FFO/NOI growth. Technicals also support the view with a clear uptrend, though momentum looks somewhat stretched. The main offset is valuation (high P/E), plus monitoring items including 2025 gross-margin compression and execution/refinancing considerations.

Positive Factors

Strong cash generation

Consistent, rising operating cash flow and FCF provide durable internal funding for development, dividends, and debt service. With FCF near $405M in 2025 and historical FCF conversion ~83–87%, the company has tangible capacity to fund growth and absorb near-term execution variability without relying solely on external capital.

High occupancy and leasing momentum

Elevated occupancy (mid-90s) and a recent pickup in development leasing materially increase cash-flow visibility and lower vacancy risk. High occupancy plus broad geographic leasing reduces rollover concentration, supports stable rent rolls and same-store NOI gains, and strengthens medium-term FFO sustainability.

Attractive development economics and land inventory

A sizable, permit-ready land bank plus ~7% development yields vs. low- to mid-5% acquisition cap rates imply a durable spread that can drive accretive, self-funded growth. This structural advantage supports long-term NOI expansion and gives management optionality to prioritize high-return projects.

Negative Factors

Sharp 2025 gross-margin compression

A one-year, large gross-margin decline materially affects reported profitability and could signal changes in cost mix, nonrecurring items, or lower-margin asset mixes. If persistent, margin compression would reduce FFO conversion, limit reinvestment capacity, and pressure dividend coverage over the next several quarters.

Near-term refinancing and capital execution risk

A looming 2026 maturity and contingent $300M issuance create execution and market-timing risk. If credit markets tighten or rates rise, refinancing could increase interest costs or force equity issuance, diluting shareholders and constraining the pace of development and acquisitions in the next 2–6 months.

Uncertainty around sustainability of development leasing

Heavy reliance on a recent leasing surge raises risk that future leasing and starts may revert lower. If development-conversion rates or timing disappoint, projected development starts and associated FFO accretion may be delayed, creating volatility in occupancy, cash flow and near-term growth execution.

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 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.

How the Company Makes Money

Eastgroup Properties generates revenue through multiple streams primarily centered around its real estate assets. The company's main revenue source is rental income from its industrial properties, which is derived from long-term leases with a diverse range of tenants, including logistics companies, retailers, and manufacturers. Additionally, EGP benefits from property management fees and development services associated with its ongoing projects. The company also realizes income from the sale of properties when market conditions are favorable, further enhancing its revenue. Key partnerships with national and regional tenants, along with its strategic focus on high-demand markets, contribute significantly to its earnings stability and growth.

Eastgroup Properties Financial Statement Overview

Summary

Strong multi-year revenue and cash-flow growth with consistently high net margins and improving leverage (lower debt-to-equity). Key watch-outs are the sharp 2025 gross margin compression and some variability in cash conversion versus earnings.

Income Statement

Revenue has grown steadily from $363M (2020) to $721M (2025), though the latest annual growth slowed to 3.6% versus stronger growth in 2021–2023. Profitability remains a clear strength with consistently high net margins (~35–38%) and strong operating profitability, supporting resilient earnings. A notable watch-out is the sharp drop in gross margin in 2025 (to ~43% from ~73% in 2024), which suggests a change in cost mix or one-time impacts that could pressure near-term earnings quality if it persists.

Balance Sheet

Leverage has improved meaningfully: debt-to-equity declined from ~1.04 (2020) to ~0.47 (2024–2025), supported by equity growth (to ~$3.50B in 2025) alongside asset growth (to ~$5.43B). Returns on equity are steady but moderate (~7–10% historically; ~7.4% in 2025), which is solid for a REIT profile but not exceptional. Total debt has also risen in absolute dollars (to ~$1.63B in 2025), so while the balance sheet is healthier relative to equity, the company remains meaningfully debt-funded and sensitive to financing conditions.

Cash Flow

Cash generation is strong and improving: operating cash flow increased from $196M (2020) to $481M (2025), with free cash flow rising to $405M in 2025. Free cash flow has consistently tracked below net income (about 83–87% over time; ~84% in 2025), which is reasonable but implies some earnings are not fully converting to free cash. The ability of operating cash flow to cover net income has been volatile (sub-1x in 2021–2022, then stronger in 2023–2024, and moderating in 2025), indicating some variability in working capital/cash timing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	721.34M	638.53M	566.40M	487.02M	409.48M
Gross Profit	312.36M	464.31M	412.37M	353.11M	294.40M
EBITDA	495.38M	414.47M	370.42M	314.69M	260.74M
Net Income	257.42M	227.75M	200.49M	186.18M	157.56M
Balance Sheet
Total Assets	5.43B	5.08B	4.52B	4.04B	3.22B
Cash, Cash Equivalents and Short-Term Investments	1.01M	17.53M	40.26M	56.00K	4.39M
Total Debt	1.75B	1.55B	1.70B	1.88B	1.48B
Total Liabilities	1.94B	1.78B	1.91B	2.08B	1.64B
Stockholders Equity	3.50B	3.29B	2.61B	1.95B	1.57B
Cash Flow
Free Cash Flow	404.90M	357.30M	287.09M	275.65M	219.83M
Operating Cash Flow	480.73M	416.59M	338.20M	316.50M	256.49M
Investing Cash Flow	-576.28M	-724.34M	-570.06M	-521.15M	-529.26M
Financing Cash Flow	79.03M	285.02M	272.06M	200.31M	277.14M

Eastgroup Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 196.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 196.31 is above the 20-day moving average (MA) of 189.32, above the 50-day MA of 184.89, and above the 200-day MA of 173.36, indicating a bullish trend. The MACD of 2.83 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 81.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EGP.

Eastgroup Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRNO	75 Outperform	$6.88B	16.91	10.28%	3.38%	21.13%	74.37%
EGP	74 Outperform	$10.47B	40.28	7.58%	3.15%	11.10%	-1.65%
STAG	71 Outperform	$7.49B	26.86	7.75%	4.02%	9.62%	31.08%
LXP	68 Neutral	$2.93B	27.26	5.45%	5.33%	6.98%	465.32%
FR	67 Neutral	$8.62B	33.83	9.27%	2.98%	9.66%	-23.17%
REXR	66 Neutral	$8.69B	43.53	2.50%	4.30%	10.27%	15.25%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Eastgroup Properties Corporate Events

EastGroup Properties Announces Executive Leadership Changes

On December 12, 2025, EastGroup Properties’ Board of Directors approved several executive leadership changes effective January 1, 2026, to support the company’s long-term growth. Reid Dunbar will become President, Staci Tyler will assume the role of Chief Financial Officer, Brent Wood will transition to Chief Operating Officer, and Michelle Rayner will become Chief Accounting Officer. These appointments are part of EastGroup’s strategy to enhance operational alignment and continue executing its growth strategy. Additionally, John F. Coleman announced his retirement effective June 30, 2026, with Todd Johnson set to succeed him as Executive Vice President of the Eastern Region. These leadership changes reflect EastGroup’s confidence in its team to drive shareholder value and capitalize on growth opportunities.

The most recent analyst rating on (EGP) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Eastgroup Properties stock, see the EGP Stock Forecast page.

Eastgroup Properties Announces New $1 Billion Stock Offering

On December 5, 2025, EastGroup Properties, Inc. entered into a new sales agency financing agreement with several financial institutions to offer and sell up to $1 billion in common stock through at-the-market offerings. This move replaces a previous program and allows the company to use the proceeds for general corporate purposes, including working capital and property development, thereby potentially enhancing its financial flexibility and market positioning.

The most recent analyst rating on (EGP) stock is a Hold with a $172.00 price target. To see the full list of analyst forecasts on Eastgroup Properties stock, see the EGP Stock Forecast page.

Eastgroup Properties Secures $250 Million Term Loan Agreement

On November 19, 2025, EastGroup Properties, Inc. and its subsidiary entered into a $250 million Term Loan Agreement with PNC Bank and other financial institutions, divided into two tranches with maturity dates in 2030 and 2031. Additionally, the company amended several of its credit facilities to remove a 0.10% interest rate adjustment for SOFR loans, potentially improving its financial flexibility and cost of borrowing.

The most recent analyst rating on (EGP) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Eastgroup Properties stock, see the EGP Stock Forecast page.