olivlawolivlaw

olivLaw · US equity research

EastGroup Properties, Inc. EGP

Real Estate Investment Trusts · SIC 6798 · Vertical: Real Estate Investment Trusts (SIC 6798)

201.00USD+0.39% · 1 dayClose 04 Nov 2026

EastGroup Properties is a REIT that owns and develops industrial distribution properties concentrated in Texas, Florida, California, Arizona and North Carolina, with shallow bay buildings for location-sensitive tenants. Amid demand for industrial space in a period of inflation and market volatility, the company reported higher FFO in the first nine months of 2026 and raised its dividend by 12.9%. Its operating portfolio stood at 550 properties at the end of 2025.

At the close of 04 Nov 2026, EastGroup Properties, Inc. (EGP) stock was 201.00 USD (+0.39% on the day), with market capitalisation 10.8 bn USD, P/E 34.1 on diluted EPS of 5.90 USD over the last 12 months, dividend yield 3.18%, beta 0.57, 52-week range 174.49–223.38 USD. Latest reported quarter (Q3 2026): revenue of 199.4 m USD (+9.5% YoY), net income of 78.4 m USD (+17.1% YoY), diluted EPS 1.46 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
10.8 bn USD
shares as of 20 Oct 2026
P/E (TTM)
34.1
Diluted EPS TTM 5.90 · TTM to 30 Sept 2026
E/P (TTM)
2.93%
TTM to 30 Sept 2026
Dividend yield
3.18%
DPS 12m 6.40
Beta (2y)
0.57
Volatility (1y) 17%
52-week range
174.49223.38

Price history

Loading chart…

Technical reading

RSI (14)
54.5
neutral
Bollinger (20, 2)
192.81 – 203.75
in the upper half of the band · %B 0.75 · band width 5.5%
SMA 50 / 200
198.73 / 198.39
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.44 / 0.05
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+2.6%−1.1%+3.7 pp—
3 months−0.8%−0.5%−0.4 pp—
6 months−1.0%+4.4%−5.4 pp—
Year to date+12.8%+12.3%+0.5 pp—
1 year+14.8%+13.5%+1.3 pp+7.5%
3 years+18.1%+76.4%−58.3 pp+19.0%
5 years+0.9%+63.7%−62.8 pp—
Max drawdown (1y)
−14.7%
16 Jul 2026 → 07 Oct 2026
Max drawdown (5y)
−39.6%
29 Dec 2021 → 07 Oct 2022
Compound annual growth (5y)
+0.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
199.4 m USD
+9.5% YoY
Net income
78.4 m USD
+17.1% YoY
Diluted EPS
1.46
+15.9% YoY
net / operating
39.3% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue164.0 m174.4 m177.3 m182.1 m187.5 m190.3 m193.3 m199.4 m
Depreciation & amortisation49.7 m52.5 m53.0 m54.1 m57.1 m55.5 m56.4 m58.2 m
Interest expense9.2 m8.0 m7.7 m7.7 m8.7 m9.1 m9.0 m9.6 m
Net income58.7 m59.4 m63.3 m67.0 m67.8 m94.6 m75.5 m78.4 m
Diluted EPS1.17 ≈1.141.201.261.27 ≈1.771.401.46
Operating cash flow53.9 m133.7 m143.4 m ≈138.9 m ≈64.7 m142.3 m159.6 m ≈176.1 m ≈
Dividends paid68.8 m73.2 m73.1 m ≈73.7 m ≈82.6 m83.7 m83.2 m ≈83.2 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 23 percentile of its own 40-quarter history (min 25.2, median 38.4, max 58.5; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue300.4 m331.4 m363.0 m409.5 m487.0 m570.6 m640.2 m721.3 m
Revenue YoY+9.6%+10.3%+9.5%+12.8%+18.9%+17.2%+12.2%+12.7%
Net income88.6 m123.3 m108.4 m157.6 m186.3 m200.5 m227.8 m257.5 m
Net income YoY+6.0%+39.2%−12.1%+45.4%+18.2%+7.7%+13.6%+13.0%
Diluted EPS2.493.242.763.904.364.424.664.87
Diluted EPS YoY+2.0%+30.1%−14.8%+41.3%+11.8%+1.4%+5.4%+4.5%
net %29.5%37.2%29.9%38.5%38.2%35.1%35.6%35.7%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
1.0 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
3.5 bn USD
Total assets
5.4 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
7.6%
ROA
4.9%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
570.6 m
2024
640.2 m
2025
721.3 m

SEC (XBRL)· 11 Feb 2026verified

Depreciation & amortisation
2023
171.1 m
2024
189.4 m
2025
216.7 m

SEC (XBRL)· 11 Feb 2026verified

Interest expense
2023
48.0 m
2024
39.0 m
2025
32.1 m

SEC (XBRL)· 11 Feb 2026verified

Net income
2023
200.5 m
2024
227.8 m
2025
257.5 m

SEC (XBRL)· 11 Feb 2026verified

Diluted EPS
2023
4.42
2024
4.66
2025
4.87

SEC (XBRL)· 11 Feb 2026verified

Weighted average diluted shares
2023
45.3 m
2024
48.9 m
2025
52.8 m

SEC (XBRL)· 11 Feb 2026verified

Dividend per share
2023
5.04
2024
5.34
2025
5.90

SEC (XBRL)· 11 Feb 2026verified

Balance sheet · USD

Cash
2023
40.3 m
2024
17.5 m
2025
1.0 m

SEC (XBRL)· 22 Apr 2026verified

Goodwill
2023
990.0 k
2024
990.0 k
2025
990.0 k

SEC (XBRL)· 11 Feb 2026verified

Intangibles (excl. goodwill)
2023
20.2 m
2024
38.7 m
2025
36.5 m

SEC (XBRL)· 11 Feb 2026verified

Total assets
2023
4.5 bn
2024
5.1 bn
2025
5.4 bn

SEC (XBRL)· 11 Feb 2026verified

Long-term debt
2023
1.7 bn
2024
1.5 bn
2025
—

SEC (XBRL)· 23 Apr 2025verified

Total liabilities
2023
1.9 bn
2024
1.8 bn
2025
1.9 bn

SEC (XBRL)· 11 Feb 2026verified

Equity
2023
2.6 bn
2024
3.3 bn
2025
3.5 bn

SEC (XBRL)· 11 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
338.2 m
2024
416.6 m
2025
480.7 m

SEC (XBRL)· 11 Feb 2026verified

Investing cash flow
2023
-570.1 m
2024
-724.3 m
2025
-576.3 m

SEC (XBRL)· 11 Feb 2026verified

Financing cash flow
2023
272.1 m
2024
285.0 m
2025
79.0 m

SEC (XBRL)· 11 Feb 2026verified

Dividends paid
2023
225.6 m
2024
252.8 m
2025
302.5 m

SEC (XBRL)· 11 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
12.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
14.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
14.7%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
13.0%
computed by olivLawFY 2025
Net income CAGR 3Y
11.4%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
18.9%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
4.5%
computed by olivLawFY 2025
EPS CAGR 3Y
3.8%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
12.0%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
41.0%
computed by olivLawTTM to 30 Sept 2026
FCF margin
unavailable
input data missing

Returns

ROE
8.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
5.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
108.5%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
1.6 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.5x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
unavailable
input data missing
Cash ratio
unavailable
input data missing

Cash

Operating cash flow
542.8 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
Cash conversion
unavailable
input data missing

Market and valuation

Market capitalisation
10.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
12.4 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
34.2x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
34.1x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
2.9%
computed by olivLawTTM to 30 Sept 2026
P/B
3.0x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
14.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
16.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
3.2%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
3.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

9 indicators that do not apply to the sector.

Valuation

olivLaw classification

Unattractive profile

Score: 38 / 100

A scoring methodology on indicators and valuation, not investment advice.

score < 40 · (margin_of_safety <= -0.25 & agreement in ['high', 'medium'])

Closing price

201.00 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 10.8 bn USD

Key indicators

Market capitalisation
10.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
34.1x
computed by olivLawTTM to 30 Sept 2026
P/B
3.0x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
8.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
41.0%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
12.7%
computed by olivLawFY 2025
Dividend yield
3.2%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

18/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 20 Oct 2026
Source: SEC (XBRL)published 21 Oct 2026
verified 1761derived 135

Score by group

  • Returns18
  • Growth100
  • Valuation28
  • Quality63

Estimated value range

Low
74.83
USD per share
Mid
107.37
USD per share
High
146.67
USD per share
Price: 201.00 USD
The price is above the range
Potential to the central value: -46.6% (value / price − 1)
Margin of safety: -87.2% (1 − price / value)
Agreement between methods: high · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 72.14 – 189.07 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Net asset value (NAV)unavailable · input data missing
  • Dividend discount (DDM)77.53 – 104.27 (Mid 88.93)
  • Peers: P/B72.14 – 189.07 (Mid 125.81)
    32 companies used · median multiple 1.9x · quartiles 1.1x – 2.8x
    AKR, ALX, BRX, CHCT, COLD, DLR, DOC, EPR, ESS, EXR, FPI, FRT, GNL, HST, IRT, JBGS, KIM, LXP, NHI, O, PLD, PSA, RLJ, SELF, SITC, SLG, STAG, UDR, VICI, VMRK, VTR, WELL
Multiple comparisons use the SIC vertical: Real Estate Investment Trusts (SIC 6798)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Unattractive profile · Score 38/100

FactorValueScoreWeight used
ROE · Quality8.9%63 (vs peers)10%
EBITDA margin · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth14.0%100 (on a fixed band)14%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
P/B · Valuation3.0x24 (vs peers)31%
P/E (TTM) · Valuation34.1x38 (vs peers)14%
Dividend yield · Returns3.2%18 (vs peers)24%
Payout ratio (EPS) · Returns108.5%16 (on a fixed band)7%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partialunavailable · 0/2 factors with a value
  • Growth100/100 · 1/1 factors with a value
  • Quality· partial63/100 · 1/2 factors with a value
  • Returns18/100 · 2/2 factors with a value
  • Valuation28/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

EASTGROUP PROPERTIES, INC. (EGP). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 721.3 m USD in 2025; YoY growth 12.7%; net margin 41.0%; ROE 8.9%.

The estimated value range is 74.83–146.67 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 107.37 USD, the price of 201.00 USD leaves a potential of -46.6% (value / price − 1) and a margin of safety of -87.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 38/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, quality. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 14.0%

What contradicts it

  • P/B: 3.0x
  • Dividend yield: 3.2%
  • Payout ratio (EPS): 108.5%
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): EBITDA margin, Net debt / EBITDA, Interest coverage.

Versus the vertical median

Real Estate Investment Trusts (SIC 6798) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
34.1x
vertical median 28.8x
above median (+18.5%)
EV/EBITDA
—
vertical median 15.8x
P/S
14.0x
vertical median 6.9x
above median (+103.5%)
P/B
3.0x
vertical median 2.0x
above median (+51.6%)
ROE
8.9%
vertical median 7.6%
above median (+17.4%)
Net margin
41.0%
vertical median 22.8%
above median (+80.1%)
EBIT margin
—
vertical median 37.9%
Revenue YoY
12.7%
vertical median 4.7%
above median (+171.2%)
Net debt/EBITDA
—
vertical median 4.8x
Dividend yield
3.2%
vertical median 4.5%
below median (−29.7%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
WELLWelltower Inc.181.9 bn106.24.0%12.7%+35.6%+19% / +178%
PLDPrologis, Inc.122.5 bn33.17.1%42.5%+7.2%+2% / +14%
EQIXEquinix Inc104.3 bn63.311.5%16.4%+5.4%+40% / +29%
AMTAmerican Tower Corporation90.4 bn27.390.6%30.7%+5.1%+7% / −7%
DLRDigital Realty Trust, Inc.65.0 bn48.36.2%21.7%+10.0%+15% / +33%
PSAPublic Storage64.0 bn34.916.0%37.8%+2.7%+25% / +32%
ORealty Income Corporation56.3 bn40.83.6%22.9%+9.1%+3% / +10%
VTRVentas, Inc.47.2 bn167.81.9%4.0%+18.5%+11% / +95%
CCICrown Castle Inc.39.2 bn48.6—20.1%−4.4%+1% / −21%
IRMIron Mountain Inc35.3 bn84.0—5.7%+12.2%+37% / +85%
EXRExtra Space Storage Inc.33.6 bn32.77.9%29.9%+3.7%+21% / +24%
VICIVICI Properties Inc.27.8 bn11.68.3%56.5%+4.1%−12% / −16%
VMRKVivmark Residential23.9 bn27.98.1%—+4.8%+3% / +12%
SBACSba Communications Corporation20.7 bn21.1—34.5%+5.1%+1% / −21%
HSTHost Hotels & Resorts, Inc.17.9 bn17.515.8%16.5%+7.6%+48% / +49%
ESSEssex Property Trust, Inc.17.5 bn41.78.0%22.7%+6.4%+3% / +27%
KIMKimco Realty Corporation17.4 bn28.65.8%27.8%+5.1%+25% / +34%
DOCHealthpeak Properties, Inc.13.9 bn37.14.9%12.3%+4.5%+10% / +16%
UDRUDR, Inc.11.8 bn17.521.8%40.8%+2.4%+2% / +11%
EGPEastgroup Properties, Inc.10.8 bn34.18.9%41.0%+12.7%+15% / +18%
FRTFederal Realty Investment Trust9.9 bn19.915.6%38.6%+6.4%+16% / +20%
BRXBrixmor Property Group Inc.9.3 bn22.014.2%30.0%+6.7%+16% / +40%
STAGSTAG Industrial, Inc.7.3 bn27.17.6%29.9%+10.1%−4% / +6%
EPREpr Properties4.7 bn16.812.7%38.8%+2.9%+16% / +36%
COLDAmericold Realty Trust, Inc.4.3 bn—-16.5%-17.4%−2.4%+40% / −46%

1- and 3-year price returns: for EGP from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
129.75
Total return -33% · Per year -33%
228.43
Total return 17% · Per year 17%
342.77
Total return 75% · Per year 75%
3 years
151.09
Total return -17% · Per year -6%
296.81
Total return 59% · Per year 17%
485.31
Total return 156% · Per year 37%
5 years
175.93
Total return 2% · Per year 0%
385.66
Total return 114% · Per year 16%
687.11
Total return 271% · Per year 30%
What moves the 3-year price the most
  • Exit P/E± 74.20
  • Net margin± 51.94
  • Annual revenue growth± 39.08
  • Annual dilution± 4.36

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

EastGroup Properties is a REIT that owns and develops industrial distribution properties concentrated in Texas, Florida, California, Arizona and North Carolina, with shallow bay buildings for location-sensitive tenants. Amid demand for industrial space in a period of inflation and market volatility, the company reported higher FFO in the first nine months of 2026 and raised its dividend by 12.9% 3. Its operating portfolio stood at 550 properties at the end of 2025 1.

SWOT

Strengths

  • A portfolio concentrated in high-growth markets, with very high occupancy and steady growth in same-property income 13.
  • A funding structure built on unsecured credit facilities and access to equity issuance, supported by an investment grade rating 1.
  • Rents on new and renewal leases rose markedly, indicating pricing power with tenants 3.

Weaknesses

  • High geographic concentration in a few states and urban markets, which exposes the company to regional economic downturns 1.
  • Reliance on external financing for development and acquisitions, which makes the cost of capital important to results 1.
  • Development budgets are large and some projects are still lightly leased, which delays the return on investment 1.

Opportunities

  • Demand for small and mid-sized industrial space near transport routes could support new developments and acquisitions 3.
  • If financing becomes cheaper, the company could accelerate acquisitions and development programs 3.
  • Growing markets in the South and West offer room to extend the portfolio into new submarkets 1.

Threats

  • An oversupply of industrial space in an area could reduce rents and occupancy 1.
  • Tariffs and rising construction costs could weigh on margins of development projects 1.
  • Climate events and energy efficiency rules could raise costs or reduce the appeal of certain properties 1.

Risks

  • Geographic concentrationhigh

    Most properties sit in a few states, so an economic downturn in those regions could weigh heavily on income 1.

  • Debt refinancingmedium

    Some loans carry large balloon payments at maturity, and the company might not be able to refinance them on equally favorable terms 1.

  • Development costsmedium

    Tariffs, material costs and permitting delays can raise project budgets and postpone income 1.

  • Climate and environmental risksmedium

    Storms, floods and environmental rules could cause damage or added compliance costs for properties 1.

  • Partial insurance coveragelow

    Insurance does not fully cover certain losses, so if they occur the company could lose invested capital and future income 1.

Investment thesis

What would need to be true (bull case)

  • If demand for industrial space in growing markets holds and rents keep rising, income from the existing portfolio could support higher FFO and dividends 3.
  • High occupancy and leases with rent escalators could provide a stable income base even during economic uncertainty 13.
  • If financing remains accessible, the company could expand its acquisition and development programs, potentially adding future income 3.

What would break the thesis

  • If the economy slows in key states, demand for industrial space could fall, reducing rents and occupancy.
  • Financing and construction costs could stay high, which might slow developments and reduce returns on new projects 1.
  • If competition for acquisitions intensifies, property prices could rise and yields could fall 1.

What to watch

  • Trend in occupancy and new lease rentsQ4 2026
  • Actual pace of developments and acquisitions versus the revised guidance2027
  • Refinancing terms and cost of newly issued debtnext 10-K
  • Size of lease expirations scheduled for 2026Q1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

EastGroup is an internally managed equity REIT first organized in 1969 that develops, acquires and operates industrial distribution properties in high-growth regions 1. Its strategy centers on premier facilities near major transportation routes in supply-constrained submarkets. The company trades on the NYSE under the symbol EGP 1.

Rental income is its primary revenue source, and its tenants are largely businesses seeking spaces of 20,000 to 100,000 square feet 1. Leases generally require tenants to pay their share of operating expenses and often include scheduled rent increases, which limits exposure to cost inflation 1. Development and acquisition programs are funded mainly through unsecured bank credit facilities, with longer-term debt intended to be primarily fixed rate 1.

As of September 30, 2026, the portfolio included 527 business distribution properties, 20 bulk distribution properties and 22 business service properties 2. During 2026 the company began construction on four development projects and one redevelopment project, and it intends to hold its properties as long-term investments 3.

Segments

Business distribution

The largest segment, with 527 properties as of September 30, 2026, serving mid-sized tenants that want flexibility and well-connected locations 2.

Bulk distribution

Larger facilities, with 20 properties as of September 30, 2026, for operators needing expansive space; fewer in number but a meaningful part of the portfolio 2.

Business service

A smaller segment of 22 properties oriented toward tenants combining storage and service activities 2.

Market context

The U.S. industrial distribution space market is competitive: competition comes from existing nearby properties and new development, and institutional owners, other REITs and local operators own most assets 1. Demand remains supported by population and economic growth in the South and West, although a local oversupply could reduce rents.

For the listed company, a relevant indicator is occupancy, at 97.3% for the operating portfolio as of September 30, 2026 3. If occupancy stays high and rents keep rising, income from the existing portfolio could support further development.

Trends

  • Rising rents on new leasestailwind

    Rents on new and renewal leases rose significantly in 2025 and 2026, suggesting solid demand for well-located space 13. If this continues, rent per square foot could grow faster than costs.

  • Construction costs and tariffsheadwind

    Tariffs and rising materials and labor costs can increase development budgets, which could reduce returns on new projects 1. The company explicitly names these as risks.

  • Cost of financingmixed

    High or persistent interest rates raise the cost of borrowing and refinancing, while the company relies on bank credit and debt issuance 12. The effect depends on rate levels and the debt structure.

  • Demand in high-growth marketsmixed

    A concentration in Texas, Florida, California, Arizona and North Carolina can support demand but exposes the company to regional economic downturns 1. Over time this profile is both an opportunity and a concentration risk.

Competitive position

The company competes for tenants with other owners of space nearby and with new developments, and for acquisitions with REITs, pension funds, private funds and other institutional investors 1. It notes that no single competitor dominates its current markets.

Competition may force landlords to offer concessions or pay for tenant improvements, which could affect operating results 1. The ability to buy properties at reasonable prices depends on how active rivals are in the same markets.

  • Other industrial REITs

    Investors competing for the same properties and tenants, referenced generically in the annual report 1.

  • Pension funds and institutional investors

    Compete for industrial property acquisitions and real estate investment capital 1.

  • Private real estate investment funds

    Take part in buying industrial assets and may offer competitive prices in transactions 1.

  • Local industrial property owners

    Competitors in local markets, mainly for small and mid-sized tenants 1.

News & filings

In the press

No news in our archive over the last 180 days.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / EastGroup Properties, Inc. · 11 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-09-30 · SEC / EastGroup Properties, Inc. · 21 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / EastGroup Properties, Inc. · 21 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.