Eastgroup Properties (EGP)
NYSE:EGP
Top Page
Eastgroup Properties
(NYSE:EGP)
Select Model
Select Model
Rating:74Outperform
Price Target:
$213.00
â–²(16.01% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Eastgroup Properties (EGP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.81B
Dividend Yield3.15%
Average Volume (3M)351.84K
Price to Earnings (P/E)36.9
Beta (1Y)0.55
Revenue Growth11.10%
EPS Growth-1.65%
CountryUS
Employees101
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.27
Shares Outstanding53,334,206
10 Day Avg. Volume342,236
30 Day Avg. Volume351,844
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 Cap1.18
Enterprise Value/Revenue16.05
Enterprise Value/Gross Profit31.81
Enterprise Value/Ebitda23.45
Forecast
1Y Price Target
$206.87Price Target Upside12.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.09
Revenue Forecast (FY)$782.94M
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 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 dive...
Eastgroup Properties Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operational and financial picture: strong FFO growth, elevated occupancy, notable Q4 development leasing momentum, healthy same-store NOI gains, low leverage and ample liquidity, and positive 2026 guidance. Key risks include uncertainty around the sustainability and timing of the recent development leasing pickup, limited evidence of broad rent growth to date, a near-term debt maturity requiring refinancing, and one-time transition costs. On balance the company highlighted multiple strengths and actionable growth levers while acknowledging manageable execution and market-timing risks.Positive Updates
Strong FFO Performance
Q4 FFO per share of $2.34 (reported as up 8.8% versus the prior quarter) and full-year FFO per share of $8.98, representing 7.7% growth year-over-year (excluding certain gains). Q4 and annual results met or topped the upper end of guidance.
Negative Updates
Uncertainty on Sustainability of Development Leasing Momentum
Q4 development leasing surge drove a large share of annual activity, but management stressed cautious optimism about sustainability; conversion rates of current prospects remain uncertain and conversion timing could be uneven across quarters.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong FFO Performance
Q4 FFO per share of $2.34 (reported as up 8.8% versus the prior quarter) and full-year FFO per share of $8.98, representing 7.7% growth year-over-year (excluding certain gains). Q4 and annual results met or topped the upper end of guidance.
Read all positive updates
Company Guidance
EastGroup's 2026 guidance calls for Q1 FFO of $2.25–$2.33/sh and full‑year FFO of $9.40–$9.60/sh (midpoints ≈ +8% and +6.1% vs. prior year, excl. insurance gains), a cash same‑property NOI midpoint of 6.1% with expected same‑property occupancy of 96.3%, $250M of development starts and $160M of operating acquisitions (including a Jacksonville deal under contract), about $0.07/sh of speculative development leasing assumed in the budget, projected uncollectible accounts of 30–35 bps of revenue, 2026 G&A of $27M (including $4M, ≈ $0.07/sh, for executive transitions) with ~32% of G&A front‑loaded into Q1, $140M of unsecured debt maturing in Q4 2026 and a plan to fund maturities/new investments with bank capacity (> $650M available at year‑end with ~$19M drawn) plus contemplated $300M of new debt issuance (with flexibility to use equity), and a balance‑sheet backdrop of 14.7% debt to market cap, ~3x annualized debt/EBITDA and interest/fixed‑charge coverage >15x.Eastgroup Properties Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| 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
Negative
183.60
Price Trends
187.64
Negative
183.69
Negative
175.39
Positive
Market Momentum
-1.37
Positive
39.73
Neutral
17.70
Positive
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 183.6 is below the 20-day moving average (MA) of 189.76, below the 50-day MA of 187.64, and above the 200-day MA of 175.39, indicating a neutral trend. The MACD of -1.37 indicates Positive momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 17.70 is Positive, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.42B | 14.93 | 10.09% | 3.38% | 21.13% | 74.37% | |
74 Outperform | $9.81B | 36.86 | 7.48% | 3.15% | 11.10% | -1.65% | |
71 Outperform | $6.87B | 25.24 | 7.85% | 4.02% | 9.62% | 31.08% | |
71 Outperform | $7.96B | 24.05 | 9.32% | 2.98% | 9.66% | -23.17% | |
68 Neutral | $2.72B | 25.58 | 5.49% | 5.33% | 6.98% | 465.32% | |
66 Neutral | $7.76B | 42.45 | 2.44% | 4.30% | 10.27% | 15.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
EGP
Eastgroup Properties
183.60
10.22
5.89%
STAG
Stag Industrial
35.98
1.60
4.67%
TRNO
Terreno Realty
61.66
-0.17
-0.28%
FR
First Industrial Realty
58.29
5.28
9.97%
LXP
LXP Industrial Trust
46.10
3.78
8.92%
REXR
Rexford Industrial Realty
33.45
-5.14
-13.32%
Eastgroup Properties Corporate Events
Business Operations and StrategyExecutive/Board Changes
EastGroup Properties Announces Executive Leadership Changes
Positive
Dec 16, 2025
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 assu...
Business Operations and StrategyPrivate Placements and Financing
Eastgroup Properties Announces New $1 Billion Stock Offering
Positive
Dec 5, 2025
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 previo...
Private Placements and Financing
Eastgroup Properties Secures $250 Million Term Loan Agreement
Positive
Nov 25, 2025
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 c...
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.