EGP

Interested in EastGroup Properties, Inc.? Here are five stocks we like better. EastGroup Properties beat Q2 expectations with FFO of $2.36 per share, while year-to-date FFO per share rose 7.6% and management raised full-year 2026 FFO guidance to $9.59 per share. Executives said the results were driven by stronger-than-expected same-property NOI and higher occupancy. Leasing activity set records in the quarter, including 3.9 million square feet of signed leases and nearly 1.1 million square feet of development and first-generation leasing. The portfolio ended the quarter 96.8% leased and 95.6% occupied, with GAAP leasing spreads of 34% and cash spreads of 19%. Management turned more optimistic on growth, lifting guidance for same-property NOI, occupancy, development starts and acquisitions. EastGroup also highlighted a strong balance sheet, with no borrowings on its credit facility and $675 million of available capacity. REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts Approach EastGroup Properties (NYSE:EGP) reported a stronger-than-expected second quarter, with executives pointing to record leasing activity, resilient occupancy and rising development demand across its industrial portfolio. Chief Executive Officer Marshall Loeb said the company’s second-quarter funds from operations were $2.36 per share, $0.02 above the midpoint of guidance and up 6.8% from the same quarter a year earlier. Year-to-date FFO per share increased 7.6%, continuing what Loeb described as a more than decade-long trend of quarterly FFO per share exceeding the prior-year quarter. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? After Earnings Results, Markets Love Prologis Stock “We had a strong quarter as well as first half of the year,” Loeb said, citing the quality of the company’s portfolio and strength in industrial markets. President Reid Dunbar said signed leases totaled 3.9 million square feet during the second quarter, a new quarterly record for EastGroup. Development and first-generation leasing also reached a record, at nearly 1.1 million square feet. → 3 Photonics Companies Making Quantum Tech Possible Dunbar said customers are increasingly looking past geopolitical and macroeconomic uncertainty and focusing on longer-term space requirements. He said demand remains positive across EastGroup’s markets and that the company’s “high-quality infill portfolio” is positioned to generate organic growth. At quarter-end, EastGroup’s portfolio was 96.8% leased and 95.6% occupied. Average quarterly occupancy was 95.6%, down 30 basis points from the second quarter of 2025. Same-store occupancy at quarter-end was 96.9%. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off The company reported leasing spreads of 34% on a GAAP basis and 19% on a cash basis for leases signed during the quarter. Year-to-date leasing spreads were similar, at 35% GAAP and 19% cash. Cash same-store net operating income increased 8.3% for the quarter and 8.8% year to date. Loeb also highlighted EastGroup’s tenant diversification, saying its top 10 tenants accounted for 6.6% of rents, down 30 basis points from last year. He said the company targets both geographic and tenant diversity as a way to stabilize earnings through different economic environments. Chief Financial Officer Staci Tyler said second-quarter FFO outperformance was primarily driven by higher-than-projected same-property net operating income, largely due to higher occupancy than expected. For the third quarter, EastGroup expects FFO of $2.37 to $2.45 per share, with a midpoint of $2.41. The company raised the midpoint of its full-year 2026 FFO guidance by $0.03 to $9.59 per share, representing a 6.8% increase over 2025 actual results. EastGroup also raised several operating and investment assumptions: Cash same-property NOI growth guidance was increased by 60 basis points to 6.8% for the year. Expected same-property occupancy was raised to 96.7%, 30 basis points above prior guidance. Average month-end portfolio occupancy guidance increased to 95.7%. Projected 2026 development starts were increased by $60 million to $325 million. Acquisition guidance was increased by $55 million to $215 million. Tyler said the company has started $123 million of development projects year to date and now assumes another $202 million of starts in the second half. She said the increase reflects strong development leasing year to date and the current leasing pipeline. On the balance sheet, Tyler said EastGroup ended the quarter with no balance drawn on its unsecured bank credit facility, leaving $675 million of available capacity. Debt to total market capitalization was 12.9%, the annualized debt-to-EBITDA ratio was 3 times, and interest and fixed charge coverage was 15.1 times. Dunbar said EastGroup transferred four development projects in Houston, Austin and Los Angeles to the operating portfolio during the quarter. The projects totaled 669,000 square feet and were 100% leased. Subsequent to quarter-end, EastGroup acquired a 143,000-square-foot building in the southeast Phoenix submarket. In Austin, the company is under contract to acquire a five-building portfolio in the northeast submarket totaling 388,000 square feet. Dunbar said development remains the company’s preferred external growth channel from a risk-adjusted return perspective. He said EastGroup has land holdings in more than 20 submarkets, giving it flexibility to pursue additional development if leasing activity continues. Loeb said the acquisition market remains competitive, with strong private buyer interest in high-quality industrial properties. He said EastGroup has been a “strategic” acquirer rather than an opportunistic one, given the market conditions. During the question-and-answer session, Loeb said data center-related tenants accounted for about 40% of first-quarter development leasing and 20% of second-quarter development leasing. He characterized the demand driver as early-stage and said EastGroup is leasing to suppliers serving data centers rather than building tenant-specific data center space. Loeb said markets including Dallas, Phoenix and Atlanta have substantial planned data center capacity relative to current capacity, adding that EastGroup has land presence in markets where that demand may grow. Executives also pointed to strength in Texas. Dunbar said Dallas and Houston were among EastGroup’s strongest markets at midyear. He said Texas demand is broader than energy and includes data center activity, population growth and corporate relocations. Loeb said higher diesel prices have not affected leasing decisions in the short term. However, he said sustained higher transportation costs could make last-mile industrial locations more valuable over time, particularly in markets with heavy traffic and growing populations. Asked where weakness could emerge, Loeb said the company is most focused on the consumer. He said higher interest rates and fuel costs could pressure businesses and ultimately affect tenant demand or credit quality. Chief Operating Officer Brent Wood said supply could typically be a concern in an improving market, but he said supply is currently “in check” across EastGroup’s markets, particularly in smaller, multi-tenant industrial buildings. He said the company has land, buildings and permits positioned to respond if demand continues to improve. Loeb closed by saying market demand has been gaining momentum for several consecutive quarters. He said EastGroup’s goals remain driving FFO per share growth while improving portfolio quality, which he said should continue to create net asset value growth for shareholders. EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company's portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States. Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EastGroup Properties Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Funds From Operations (FFO): $2.36 per share, up 6.8% quarter-over-quarter and 7.6% year-to-date. Quarter-end Leasing: 96.8% with occupancy at 95.6%. Quarterly Releasing Spreads: 34% GAAP and 19% cash. Cash Same-Store NOI in Hawaii: Increased 8.3% for the quarter and 8.8% year-to-date. Debt-to-Total Market Capitalization: 12.9% at quarter end. Debt-to-EBITDA Ratio: 3 times. Interest and Fixed Charge Coverage: 15.1 times. Development Starts Guidance: Increased to $325 million for the year. Acquisitions Guidance: Increased by $55 million to $215 million. FFO Guidance for 2026: Midpoint increased by $0.03 to $9.59 per share. Same-Property Occupancy Guidance: 96.7%, 30 basis points ahead of prior guidance. Warning! GuruFocus has detected 8 Warning Sign with EGP. Is EGP fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EastGroup Properties Inc (NYSE:EGP) reported a strong quarter with funds from operations (FFO) of $2.36 per share, exceeding the guidance midpoint and showing a 6.8% increase quarter-over-quarter. Leasing momentum reached a new quarterly record with 3.9 million square feet of signed leases, indicating strong demand across markets. Development and first-generation leasing also hit a quarterly record with 1.1 million square feet signed, reflecting robust growth potential. The company increased its full-year guidance for development starts to $325 million, highlighting confidence in continued demand. EastGroup Properties Inc (NYSE:EGP) maintains a strong balance sheet with no balance drawn on its unsecured bank credit facility, providing flexibility for future growth opportunities. Average quarterly occupancy was 95.6%, down 30 basis points from the second quarter of 2025, indicating a slight decline in occupancy rates. Some development projects experienced delays due to longer permitting and construction timelines, impacting the timing of revenue recognition. The acquisition market remains competitive, with cap rates close to risk-free rates, making strategic acquisitions challenging. The San Francisco market showed weaker pricing power compared to other regions, with a notable drop in leasing spreads. Despite strong leasing activity, the timing of tenant occupancy delays the immediate impact on FFO, pushing some benefits into future quarters. Q: Can you quantify the impact of data center-related demand on your leasing activities? A: Marshall Loeb, CEO: Approximately 40% of our first-quarter development leasing was data center-related tenants, and 20% in the second quarter. This represents a new demand driver for us, particularly in markets like Dallas, Phoenix, and Atlanta, where data center capacity is expected to grow significantly. Q: There were some projects that got pushed out. Can you provide more details on the delays? A: Marshall Loeb, CEO: The process of getting sites planned and permitted has become more time-consuming post-COVID. Construction delays, particularly in obtaining steel and electrical equipment, have also contributed to the timeline extensions. Q: With the increase in development starts and acquisitions guidance, where do you see the best risk-reward profile between buying and developing? A: R. Reid Dunbar, President: Development typically adds the most value for us on a risk-adjusted return basis. Our development platform is robust, with diversified landholdings in over 20 submarkets, allowing us to lean into future development opportunities. Q: Are rising diesel costs impacting leasing, and is there increased demand in Texas due to energy production? A: Marshall Loeb, CEO: Diesel costs have not impacted leasing decisions. While Dallas and Houston are strong markets, the demand is driven more by advanced manufacturing and economic growth rather than energy production. Q: Can you expand on the normalized demand from customers and its impact on leasing? A: Marshall Loeb, CEO: Decision-making has become more time-frame normalized, with an increase in expansions and new leasing. This trend has contributed to our strong development starts and leasing activities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a quarterly record of 3.9 million square feet in signed leases, signaling that customers are looking past macro uncertainty to secure long-term space. Attributed FFO outperformance to higher-than-projected same-property occupancy, which reached 96.9% at quarter-end. Identified data center suppliers as a significant new demand driver, accounting for approximately 40% of first-quarter and 20% of second-quarter development leasing. Maintained a highly diversified rent roll with the top 10 tenants representing only 6.6% of rents to stabilize earnings across economic cycles. Reported that the 'gestation period' for deal-making has normalized as prospects move past the 'analysis paralysis' observed in previous quarters. Benefited from long-term secular trends including population migration to the Sunbelt, near-shoring, and evolving last-mile logistics requirements. Noted that while the acquisition market remains competitive with tight cap rates, the company successfully expanded its footprint in Phoenix and Austin. Increased full-year development starts guidance to $325 million, reflecting consistent demand and a robust pipeline of 20 different submarkets. Raised 2026 FFO guidance midpoint to $9.59 per share, supported by higher same-property NOI and occupancy projections. Anticipates that record development leasing signed in Q2 will primarily impact 2027 earnings due to the 2-5 month lead time required for tenant build-outs. Assumes a more difficult year-over-year comparison in the second half of 2026 due to the exceptionally high 97% occupancy levels achieved in late 2025. Expects continued upward pressure on rents due to municipal pushback and zoning challenges that are slowing down new supply deliveries across the sector. Flagged extended lead times for critical electrical equipment like switchgear and transformers, which can delay project deliveries by several months. Cited the San Francisco Bay Area as a lagging market due to tech-sector slowness, contrasting with strength in Southern California and Texas. Identified consumer weakness and sustained high interest rates as the primary risks that could eventually impact tenant credit and demand. Noted that while cash re-leasing spreads have moderated from post-pandemic peaks, they remain healthy at 19% as the market enters a new phase of the cycle. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified they are leasing to the suppliers of data centers rather than the centers themselves, which avoids specialized, high-risk build-outs. The company believes it is in the 'early second inning' of this trend, with significant capacity growth planned in Dallas, Phoenix, and Atlanta. Development remains the preferred growth engine as it offers higher risk-adjusted returns compared to the current 'opportunistic' acquisition market. Management noted that private buyers are currently bidding cap rates into the high 4% range, suggesting aggressive assumptions for future rental growth. The process of permitting and planning sites is described as 'much longer and more arduous' than pre-COVID levels due to community pushback against industrial projects. These supply-side constraints are expected to act as a natural governor on overbuilding in the current cycle. Texas markets (Dallas and Houston) are outperforming due to diverse drivers including advanced manufacturing and corporate relocations. Southern California is showing signs of bottoming with record leasing activity in June, though EastGroup maintains limited exposure (5-6%) to mitigate regional volatility.

Quarter Highlights Net Income Attributable to Common Stockholders of $1.40 Per Diluted Share for Second Quarter 2026 Compared to $1.20 Per Diluted Share for Second Quarter 2025 (Gains on Sales of Real Estate Investments were $5 Million, or $0.10 Per Diluted Share, in Second Quarter 2026; There Were No Sales in Second Quarter 2025) Funds from Operations ("FFO"), Excluding Gain on Involuntary Conversion and Business Interruption Claims, of $2.36 Per Diluted Share for Second Quarter 2026 Compared to $2.21 Per Diluted Share for Second Quarter 2025, an Increase of 6.8% Same Property Net Operating Income for the Same Property Pool, Excluding Income From Lease Terminations, Increased 6.2% on a Straight-Line Basis and 8.3% on a Cash Basis for Second Quarter 2026 Compared to the Same Period in 2025 Operating Portfolio was 96.8% Leased and 95.6% Occupied as of June 30, 2026; Average Month-End Occupancy of Operating Portfolio was 95.6% for Second Quarter 2026 as Compared to 95.9% for Second Quarter 2025 Rental Rates on New and Renewal Leases Increased an Average of 34.1% on a Straight-Line Basis Raised Approximately $160 Million Pursuant to the Company's Continuous Common Equity Offering Program at a Weighted Average Price of $203.15 Transferred Four Development Projects Containing 669,000 Square Feet which are 100% Leased to the Operating Portfolio Started Construction of Two Development Projects Located in Charlotte and Houston Totaling 347,000 Square Feet with Projected Total Costs of Approximately $39 Million Signed 16 Leases on Active Development and First Generation Development Properties From April 1, 2026 through July 21, 2026, Totaling Approximately 1,101,000 Square Feet Subsequent to Quarter-End, Acquired an Operating Property in Phoenix Containing 143,000 Square Feet for Approximately $28 Million and Under Contract to Acquire an Operating Property in Austin Containing Five Multi-Tenant Buildings Totaling 388,000 Square Feet for Approximately $83 Million JACKSON, Miss., July 22, 2026 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and six months ended June 30, 2026. Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "The team and the portfolio have performed ahead of expectations this year. The leasing environment has 'normalized' compared to the protracted decision making we experienced much of last year. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio." Reid Dunbar, President, added, "Record leasing activity this quarter reflects the continued strength of demand across our markets and has enabled us to steadily increase our full-year development guidance, and we are now projecting $325 million of starts for 2026. As we have said before, our developments are pulled by market demand, and the leasing progress we are seeing today supports both near-term execution and long-term value creation." EARNINGS PER SHARE Three Months Ended June 30, 2026On a diluted per share basis, earnings per common share ("EPS") were $1.40 for the three months ended June 30, 2026, compared to $1.20 for the same period of 2025. The increase in EPS was primarily due to the following: The Company's property net operating income ("PNOI") was $142,916,000 ($2.66 per diluted share) for the three months ended June 30, 2026, as compared to $129,184,000 ($2.46 per diluted share) for the same period of 2025, which was an increase of $0.20 per diluted share. EastGroup recognized gains on sales of real estate investments of $5,189,000 ($0.10 per diluted share) during the three months ended June 30, 2026. There were no sales during the three months ended June 30, 2025. The increase in EPS was partially offset by the following: Depreciation and amortization expense was $56,406,000 ($1.05 per diluted share) for the three months ended June 30, 2026, as compared to $53,012,000 ($1.01 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. General and administrative expense was $7,207,000 ($0.13 per diluted share) for the three months ended June 30, 2026, as compared to $5,290,000 ($0.10 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share. Interest expense was $8,990,000 ($0.17 per diluted share) for the three months ended June 30, 2026, as compared to $7,690,000 ($0.15 per diluted share) for the same period of 2025, which was an increase of $0.02 per diluted share. Weighted average shares outstanding increased by 1,204,000 shares on a diluted basis for the three months ended June 30, 2026, as compared to the same period of 2025. Six Months Ended June 30, 2026EPS for the six months ended June 30, 2026 were $3.17 per diluted share, as compared to $2.35 per diluted share for the same period of 2025. The increase in EPS was primarily due to the following: PNOI was $282,936,000 ($5.27 per diluted share) for the six months ended June 30, 2026, as compared to $255,362,000 ($4.88 per diluted share) for the same period of 2025, which was an increase of $0.39 per diluted share. EastGroup recognized gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the six months ended June 30, 2026. There were no sales during the six months ended June 30, 2025. The increase in EPS was partially offset by the following: Depreciation and amortization expense was $111,903,000 ($2.09 per diluted share) for the six months ended June 30, 2026, as compared to $105,532,000 ($2.02 per diluted share) for the same period of 2025, which was an increase of $0.07 per diluted share. Interest expense was $18,069,000 ($0.34 per diluted share) for the six months ended June 30, 2026, as compared to $15,715,000 ($0.30 per diluted share) for the same period of 2025, which was an increase of $0.04 per diluted share. General and administrative expense was $14,823,000 ($0.28 per diluted share) for the six months ended June 30, 2026, as compared to $13,244,000 ($0.25 per diluted share) for the same period of 2025, which was an increase of $0.03 per diluted share. Weighted average shares outstanding increased by 1,361,000 shares on a diluted basis for the six months ended June 30, 2026, as compared to the same period of 2025. FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME Three Months Ended June 30, 2026For the three months ended June 30, 2026, funds from operations attributable to common stockholders ("FFO") and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $2.36 per diluted share compared to $2.21 per diluted share during the same period of 2025, an increase of 6.8%. PNOI increased by $13,732,000, or 10.6%, during the three months ended June 30, 2026, compared to the same period of 2025. PNOI increased $7,644,000 due to same property operations (based on the same property pool), $3,561,000 due to newly developed and value-add properties, and $2,965,000 due to 2025 and 2026 acquisitions. PNOI decreased $671,000 due to operating properties sold in 2025 and 2026. Same PNOI, Excluding Income from Lease Terminations, increased 6.2% on a straight-line basis for the three months ended June 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.3%. On a straight-line basis, rental rates on new and renewal leases signed during the three months ended June 30, 2026 (representing 4.5% of the operating portfolio's square footage) increased an average of 34.1%. Six Months Ended June 30, 2026FFO for the six months ended June 30, 2026, were $4.70 per diluted share compared to $4.37 per diluted share during the same period of 2025, an increase of 7.6%. FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, were $4.66 per diluted share for the six months ended June 30, 2026, compared to $4.33 per diluted share for the same period of 2025, an increase of 7.6%. PNOI increased by $27,574,000, or 10.8%, during the six months ended June 30, 2026, compared to the same period of 2025. PNOI increased $16,434,000 due to same property operations (based on the same property pool), $6,264,000 due to newly developed and value-add properties, and $5,623,000 due to 2025 and 2026 acquisitions. PNOI decreased $1,043,000 due to operating properties sold in 2025 and 2026. Same PNOI, Excluding Income from Lease Terminations, increased 6.8% on a straight-line basis for the six months ended June 30, 2026, compared to the same period of 2025; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 8.8%. On a straight-line basis, rental rates on new and renewal leases signed during the six months ended June 30, 2026 (representing 7.8% of the operating portfolio's square footage) increased an average of 35.2%. The same property pool for the three and six months ended June 30, 2026 includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through June 30, 2026; this pool is comprised of properties containing 58,269,000 square feet. FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI, and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures." ACQUISITIONS AND DISPOSITIONS Subsequent to June 30, 2026, EastGroup closed on the acquisition of Airgate in Phoenix for approximately $28,000,000. The industrial building contains 143,000 square feet, which is 100% leased to a single tenant. This acquisition expands the Company's portfolio in the Phoenix market to 3,661,000 square feet. EastGroup is under contract to acquire a property in the Northeast submarket of Austin for approximately $83,000,000. The property includes five buildings containing 388,000 square feet, is currently 92% leased to nine tenants, and increases the Company's ownership in Austin to 2,273,000 square feet. The closing is expected to occur in the third quarter of 2026. As previously announced, in April 2026, the Company closed on the disposition of Beach Commerce Center, a 46,000 square foot building in Jacksonville. The property was sold for $7,000,000 resulting in a gain of $5,189,000. Gains on sales of real estate investments are excluded from FFO. Subsequent to quarter-end, the Company sold a 6.9 acre parcel of land in Miami for approximately $14,000,000. A gain of approximately $5,000,000 is expected to be recognized during the three months ended September 30, 2026; this gain will be excluded from FFO. DEVELOPMENT AND VALUE-ADD PROPERTIES During the second quarter of 2026, EastGroup began construction of two development projects containing 347,000 square feet located in Charlotte and Houston, with projected total costs of $39,200,000. The development projects started during the six months ended June 30, 2026 are detailed in the table below: At June 30, 2026, EastGroup's development and value-add program consisted of 17 projects (3,175,000 square feet) in 12 markets. The projects, which were collectively 22% leased as of July 21, 2026, have a projected total cost of $486,800,000, of which $175,105,000 remained to be invested as of June 30, 2026. During the second quarter of 2026, EastGroup transferred four projects to the operating portfolio (at the earlier of 90% occupancy or one year after completion). The projects, which are located in Houston, Austin and Los Angeles, contain 669,000 square feet and were collectively 100% leased as of July 21, 2026. The development projects transferred to the operating portfolio during the six months ended June 30, 2026 are detailed in the table below: DIVIDENDS EastGroup declared a cash dividend of $1.55 per share of common stock in the second quarter of 2026, which was paid on July 15, 2026. This was the Company's 186th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 33 consecutive years and has increased it 30 years over that period, including increases in each of the last 14 years. The annualized dividend rate of $6.20 per share represents a dividend yield of 2.8% based on the closing stock price of $221.34 on July 21, 2026. FINANCIAL STRENGTH AND FLEXIBILITY EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 12.9% at June 30, 2026. The Company's interest and fixed charge coverage ratio was 15.1x and 14.9x for the three and six months ended June 30, 2026, respectively. The Company's ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate ("EBITDAre") was 3.0x for both the three and six months ended June 30, 2026. EBITDAre and the Company's interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule "Reconciliations of GAAP to Non-GAAP Measures" attached for the calculation of the Company's interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre. During the three months ended June 30, 2026, the Company entered into forward equity sale agreements with respect to 788,321 shares of common stock with an initial weighted average forward price of $203.15 per share and approximate gross sales proceeds of $160,144,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of July 21, 2026, EastGroup had 1,040,457 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from March to June 2027, for approximate net proceeds of $207,051,000, based on a weighted average forward price of $199.00 per share. OUTLOOK FOR 2026 We now estimate EPS for 2026 to be in the range of $5.83 to $5.97 and FFO per share attributable to common stockholders for 2026 to be in the range of $9.52 to $9.66. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders in order to meet the disclosure requirements of the U.S. Securities and Exchange Commission. EastGroup's projections are based on management's current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2026, whether as a result of new information, future events or otherwise. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information. The following table presents the guidance range for 2026: The following assumptions were used for the mid-point: DEFINITIONS Net income is used by the Company's management as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders ("FFO"), including FFO as adjusted as described below, and (2) property net operating income ("PNOI"), as defined below. FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). Nareit's guidance allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a real estate investment trust's ("REIT's") business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods. PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup sometimes refers to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI, Excluding Income from Lease Terminations, on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. "Same Properties" is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land including building and improvements) that make up the Company's operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. A key component of the change in PNOI is the rental rate change on new and renewal leases. The Company calculates rental rate changes on new and renewal leases on a cash basis and straight-line basis. The cash basis rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease's term and the annualized base rent of the rent due the last month of the former lease's term, for leases signed during the reporting period. If free rent, discounts, or premiums are in the lease terms, then the first full rent value is used. The straight-line basis rental changes are calculated as the difference, weighted by square feet, of the average rent over the life of the new lease and the average rent over the life of the former lease, for leases signed during the reporting period. Rent amounts exclude amortization of market rent intangibles for acquired leases, hold over rent, and base stop amounts. These calculations exclude leases with terms of less than 12 months and leases for first generation space on properties acquired or developed by EastGroup. FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company's financial performance. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") is also used by the Company's management as a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used by the Company's management to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis. Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company's debt by its EBITDAre, and is used by the Company's management in analyzing the financial condition and operating performance of the Company relative to its leverage. The Company's interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company's EBITDAre by its interest expense. The Company believes this ratio is useful to investors because it provides a basis for analysis of the Company's leverage, operating performance and its ability to service the interest payments due on its debt. CONFERENCE CALL EastGroup will host a conference call and webcast to discuss the results of its second quarter, review the Company's current operations, and present its earnings outlook for 2026 on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, July 23, 2026. The telephone replay will be available through Thursday, July 30, 2026, and can be accessed by dialing 1-888-660-6345 (access code 27874#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net. SUPPLEMENTAL INFORMATION Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net. COMPANY INFORMATION EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 65.8 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net. The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the Company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document. FORWARD-LOOKING STATEMENTS The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company's Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: international, national, regional and local economic conditions and conflicts; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2026, whether as a result of new information, future events or otherwise. CONTACT [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/eastgroup-properties-announces-second-quarter-2026-results-302832547.html

JACKSON, Miss., June 11, 2026 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) (the "Company" or "EastGroup") announced today that it will hold its Second Quarter 2026 Earnings Conference Call and Webcast on Thursday, July 23, 2026, at 10:00 a.m. Eastern Time. On the call, senior management will discuss the Company's second quarter results, current operations, and earnings outlook for 2026. EastGroup plans to release financial results for the quarter after the market closes on Wednesday, July 22, 2026. The earnings release and supplemental information package will be posted on the Company's website, www.eastgroup.net, at that time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available on Thursday, July 23, 2026. The telephone replay will be available through Thursday, July 30, 2026, and can be accessed by dialing 1-888-660-6345 (access code 27874#). The webcast replay can be accessed through a link on the Company's website at www.eastgroup.net. About EastGroup Properties, Inc.EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona 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 20,000 to 100,000 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 65.7 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net. Contact: [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/eastgroup-properties-announces-second-quarter-2026-earnings-conference-call-and-webcast-302798476.html

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. EastGroup Properties (EGP) is back on investors' radar after first quarter 2026 earnings came in well above expectations, prompting analysts to lift earnings estimates and highlight stronger near term growth prospects. See our latest analysis for EastGroup Properties. The strong first quarter update comes after a period of steady momentum, with a 30 day share price return of 7.48% and year to date share price return of 13.34%. The 1 year total shareholder return of 26.39% points to gains that extend beyond the latest results. If the recent move in EastGroup has you rethinking where growth could come from next, it may be worth scanning for other potential opportunities using the 36 power grid technology and infrastructure stocks With the stock up strongly over the past year and trading only about 5% below the average analyst price target of US$213.63, the key question now is whether EastGroup still offers a buying opportunity or if the market is already pricing in future growth. At a last close of $203.89 versus a narrative fair value of $207.37, EastGroup Properties is framed as modestly undervalued, with that gap grounded in detailed growth and margin forecasts. Read the complete narrative. Want to see what justifies paying up for an industrial REIT with only moderate earnings growth and slightly lower margins, yet a rich future earnings multiple baked in? The full narrative outlines how revenue, profitability and the required return of 8.55% work together to support that fair value target. Result: Fair Value of $207.37 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, concentrated exposure to select Sunbelt and West Coast markets, along with reliance on steady access to affordable capital, could quickly challenge this modest undervaluation story. Find out about the key risks to this EastGroup Properties narrative. The narrative-based fair value points to a small 2% undervaluation, but the P/E ratio tells a different story. At 37.4x earnings versus a fair ratio of 34.2x, the stock screens as expensive. It also trades well above the global Industrial REITs average of 16.2x and a 27x peer average. Is the market paying up for quality, or just stretching on price? See what the numbers say about this price — find out in our valuation breakdown. The mix of upside and risk around EastGroup can feel finely balanced, so it helps to move quickly, review the numbers, and decide where you stand by weighing its 3 key rewards and 1 important warning sign If EastGroup has sharpened your focus, do not stop here. Use targeted stock lists to quickly surface other opportunities that fit your style and risk comfort. Target resilient cash generators by scanning companies on the solid balance sheet and fundamentals stocks screener (44 results) that pair financial strength with consistent fundamentals. Hunt for potential value gaps by reviewing the 51 high quality undervalued stocks built to highlight stocks where quality and pricing may be out of sync. Spot earlier stage potential by checking the 25 elite penny stocks with strong financials that meet strict financial filters rather than relying on hype. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EGP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

FFO beat and strong operating results: EastGroup reported Q1 FFO of $2.30 (up 8.5% YoY), with high occupancy (quarter-end 95.9%), sizable re-leasing spreads (37% GAAP, 20% cash) and a 9.2% increase in cash same-store NOI. Raised guidance and stronger balance sheet: Management raised full-year FFO midpoint to $9.52 and Q2 FFO to $2.30–$2.38, while Moody’s upgraded the issuer rating to Baa1 and the company ended the quarter with $675M of undrawn bank capacity and low leverage (debt/market cap 14%, debt/EBITDA ~3x). Development pipeline and new demand sources: EastGroup increased 2026 development starts to $265M, began multiple projects (27% pre-leased) and said roughly half of YTD development leasing (~685k sq ft) was from data center–related users, even as infill site sourcing and entitlements remain challenging. Interested in EastGroup Properties, Inc.? Here are five stocks we like better. REITs Set for a 2026 Rebound? 7 Top Picks as Rate Cuts Approach EastGroup Properties (NYSE:EGP) reported first-quarter 2026 results that management said highlighted the “quality and resiliency” of its industrial portfolio, with funds from operations (FFO) exceeding the midpoint of company guidance and leasing spreads remaining strong. CEO Marshall Loeb said EastGroup generated FFO of $2.30 per share in the first quarter, excluding gains on involuntary conversion. He said that figure was up 8.5% from the prior-year quarter and continued a streak in which quarterly FFO per share has exceeded the same quarter of the prior year for more than a decade. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting After Earnings Results, Markets Love Prologis Stock Loeb pointed to solid occupancy and leasing conditions. Quarter-end leasing was 96.5%, with occupancy at 95.9%, while average quarterly occupancy was 96.1%, up 30 basis points from the first quarter of 2025. Quarter-end same-store occupancy was 97.4%. EastGroup also reported sizable re-leasing spreads. Loeb said re-leasing spreads for leases signed during the quarter were 37% on a GAAP basis and 20% on a cash basis. Cash same-store NOI increased 9.2% in the quarter, which Loeb tied to high same-store occupancy. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand Loeb also emphasized tenant diversification, stating that EastGroup’s top 10 tenants represented 6.7% of rents at quarter end, down 40 basis points from the prior year. He said the company targets geographic and tenant diversity “as strategic paths to stabilize earnings regardless of the economic environment.” President Reid Dunbar said development leasing continued a trend seen in the fourth quarter, noting that year-to-date development leasing had already reached 54% of last year’s total. Still, he said decision cycles “continue to remain extended” as businesses operate amid “headline volatility.” → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? During the Q&A, Dunbar told Citigroup’s Craig Mailman that the company is “actually seeing some tenants move a little bit quicker,” pointing to an example in an Atlanta project where competition for space helped EastGroup sign a 107,000-square-foot lease faster than expected. Dunbar added that as demand picks up and supply tightens, the company anticipates decision cycles will shorten. Dunbar also quantified remaining availability in “first-gen” space—projects delivered last year that were “under leased”—at about 775,000 square feet. Management highlighted an emerging driver within development leasing: data center-related users. Loeb said EastGroup is seeing demand tied to data centers largely on the supply side, including HVAC, racking equipment, and other suppliers. Dunbar added that of the company’s 685,000 square feet of development leasing signed year to date, “about half of that was related to data center-related type users.” Loeb characterized data center-related demand as a “new source of demand,” comparing it to e-commerce’s impact in prior years, while noting EastGroup does not plan to become a data center developer. EastGroup increased its 2026 development starts guidance to $265 million. Dunbar said the company commenced construction on four projects totaling 586,000 square feet during the first quarter, with 27% pre-leased. CFO Staci Tyler added that EastGroup began construction on four projects in the first quarter and one in April, totaling $105 million, and projected the remaining starts for the second half of the year. Dunbar said sourcing new infill development sites remains challenging, and zoning and entitlements remain “difficult and time-consuming.” He said tighter competing supply and stabilizing demand could “place upward pressure on rents.” On investment activity, Dunbar said EastGroup acquired two Class A buildings in Jacksonville totaling 177,000 square feet. Subsequent to quarter end, the company sold a 46,000-square-foot building in Jacksonville and completed its previously announced exit from the Fresno market totaling 398,000 square feet. Tyler said first-quarter outperformance was “primarily driven by lower than anticipated G&A expense and higher than projected property net operating income,” reflecting what she called continued strong performance of EastGroup’s 62 million-square-foot operating portfolio. Tyler also highlighted a Moody’s Ratings upgrade of EastGroup’s issuer rating to Baa1 with a stable outlook. She said the company ended the quarter with no balance drawn on its unsecured bank credit facility, leaving $675 million of available capacity. Tyler cited balance sheet metrics including debt to total market capitalization of 14% at quarter end, first-quarter annualized debt-to-EBITDA of 3x, and interest and fixed charge coverage of 14.8x. EastGroup guided to second-quarter FFO of $2.30 to $2.38 per share. For full-year 2026, Tyler said the company raised the midpoint of its FFO guidance to $9.52 per share, excluding gains on involuntary conversion, representing a 6.4% increase over 2025 actual results and 30 basis points above initial guidance. The company also raised the midpoint of its cash same-property NOI growth assumption by 10 basis points to 6.2% and increased its expected same-property occupancy assumption by 10 basis points to 96.4%. Tyler explained that EastGroup’s guidance assumes $0.04 of NOI contribution from speculative development leasing in the second half of the year, with none assumed for the second quarter and a ramp through the third and fourth quarters. She described the $0.04 as “more as an opportunity,” contingent on additional leasing. Regarding capital plans, Tyler said the company’s gross capital proceeds guidance remained $300 million, but the mix shifted from 100% debt to a mix of debt and equity after EastGroup accessed the equity market in the first quarter. She said EastGroup issued $70 million of common stock through its equity offering program at over $191 per share and has an additional $50 million in forward equity sale agreements available for issuance at over $196 per share. In response to Barclays’ Brendan Lynch about leverage flexibility following the Moody’s upgrade, Tyler said EastGroup has “a lot of runway” to increase leverage on a measured basis and cited a target range of roughly 4.5x to “sub-5x” debt to EBITDA. She noted $140 million of debt maturities later in the year and said the company would remain flexible in sourcing the remaining proceeds implied in guidance. While first-quarter occupancy was strong, Tyler said EastGroup’s full-year average occupancy guidance assumes a decline as the year progresses, reflecting suite-by-suite renewal probabilities and downtime assumptions rather than known move-outs the company expects to be unable to backfill. She said the company typically runs at about 75% customer retention, and noted first-quarter retention was in the 83% range. She added that early in the second quarter, the company was tracking ahead of projections. COO Brent Wood noted one known vacancy: a 222,000-square-foot tenant in Tampa expected to vacate around the end of the second quarter into the third quarter. He also said the 775,000 square feet of first-generation space creates more variability in leasing assumptions compared to renewing existing tenants. Loeb also addressed executive team changes, saying he was “excited to welcome Jim Trainor” and thanked John Coleman, who will retire June 30. Looking ahead, Loeb said the company’s goals remain driving FFO per share growth while improving portfolio quality, which he said supports net asset value growth. He cited secular tailwinds including population migration, nearshoring and onshoring, evolving logistics chains, and historically lower shallow-bay vacancy levels. EastGroup Properties, Inc (NYSE: EGP) is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company's portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States. Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management. The article "EastGroup Properties Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Funds from Operations (FFO): $2.30 per share, up 8.5% quarter-over-quarter. Quarter-end Leasing: 96.5% with occupancy at 95.9%. Average Quarterly Occupancy: 96.1%, up 30 basis points from Q1 2025. Same-Store Occupancy: 97.4% at quarter end. Re-leasing Spreads: 37% GAAP and 20% cash for leases signed during the quarter. Cash Same-Store NOI: Increased by 9.2%. Top 10 Tenants: 6.7% of rents, down 40 basis points from prior year. Development Leasing: Reached 54% of last year's total year-to-date. Development Starts Guidance: Increased to $265 million for the year. New Investments: Acquisition of two Class A buildings totaling 177,000 square feet. FFO Guidance for 2026: Midpoint increased to $9.52 per share, a 6.4% increase over 2025. Projected Same-Property Occupancy: 96.4%, 10 basis points ahead of initial guidance. Equity Offering: $70 million in common stock issued at over $191 per share. Debt to Total Market Capitalization: 14% at quarter end. Debt-to-EBITDA Ratio: 3 times. Interest and Fixed Charge Coverage: 14.8 times. Warning! GuruFocus has detected 5 Warning Sign with EGP. Is EGP fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EastGroup Properties Inc (NYSE:EGP) reported a strong increase in funds from operations (FFO) of $2.30 per share, up 8.5% quarter-over-quarter. Quarter-end leasing was robust at 96.5%, with occupancy at 95.9%, demonstrating portfolio resilience. Quarterly cash same-store net operating income (NOI) rose by 9.2%, reflecting high same-store occupancy. The company has a diversified rent roll, with the top 10 tenants accounting for only 6.7% of rents, down 40 basis points from the prior year. Moody's upgraded EGP's issuer rating to Baa1 with a stable outlook, highlighting the strength of its balance sheet. Development leasing is taking longer than expected, with decision cycles remaining extended due to market volatility. New development sites are challenging to source, with entitlements and zoning being difficult and time-consuming. The company anticipates a decline in occupancy as the year progresses, projecting a year average of 96.4%, down from the first quarter's 97.3%. Speculative development leasing is projected to contribute only $0.04 of NOI in the second half of the year, indicating potential risk if leasing does not meet expectations. The company faces challenges in sourcing new investments, with increased competition leading to downward pressure on cap rates. Q: Could you talk about the gestation period on the deals that got done and whether tenants are moving quicker now? A: Reid Dunbar, President: We are seeing some tenants move quicker than before. For example, in Atlanta, we had two users competing for space, which led to a quicker-than-expected lease of 107,000 square feet. As demand picks up and supply tightens, we anticipate decision cycles will shorten. Q: How much speculative development leasing is assumed in guidance for the rest of the year? A: Staci Tyler, CFO: We have about $0.04 of NOI from speculative development leasing in the second half of the year, with no assumptions for the second quarter. We see this as an opportunity, particularly if development leasing remains strong. Q: What are you seeing from customers regarding decision-making amid macro volatility? A: Marshall Loeb, CEO: Despite macro volatility, we are seeing strong development leasing and expansions. Customers seem to be adapting to volatile headlines and are focused on running their businesses. We feel better about this year compared to our last call. Q: Can you quantify the demand from data center suppliers and advanced manufacturing? A: Marshall Loeb, CEO: We've seen demand from data center suppliers, particularly in Phoenix and Dallas. About half of our 685,000 square feet of development leasing year-to-date is related to data center users. This new demand source is beneficial for our portfolio. Q: How does the Moody's upgrade affect your leverage flexibility and willingness to increase it? A: Staci Tyler, CFO: The Moody's upgrade to Baa1 gives us significant flexibility to increase leverage without risking our rating. We aim to maintain a debt-to-EBITDA ratio in the 4.5 to 5 times range and remain flexible in accessing both debt and equity markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

First quarter performance was characterized by portfolio resiliency, with FFO per share increasing 8.5% year-over-year driven by strong property NOI and lower G&A expenses. Management attributed the 9.2% cash same-store NOI growth to high occupancy levels and the successful execution of rental rate increases on in-place and budgeted leases. The company is observing a notable shift in demand drivers, with approximately half of year-to-date development leasing coming from data center suppliers and advanced manufacturing users. Strategic geographic and tenant diversification remains a core focus, with the top 10 tenants now representing only 6.7% of total rents to stabilize earnings across economic cycles. Management noted that while the operating portfolio remains well-leased, development leasing cycles remain extended as businesses navigate headline volatility and macro uncertainty. The 'pull' development model continues to prioritize infill locations where supply is tightening due to increasing challenges in sourcing sites and navigating complex entitlement processes. The 2026 FFO guidance midpoint was raised to $9.52 per share, reflecting confidence in the operating portfolio's ability to maintain high occupancy and capture rent growth. Guidance assumes a 'stair-step' earnings ramp throughout the year, with a $0.04 per share NOI contribution from speculative development leasing projected for the second half of 2026. Development starts guidance was increased to $265 million, driven by a 100,000 square foot pre-leased expansion and the acceleration of projects originally slated for later in the year. Management anticipates that as market supply continues to tighten and demand stabilizes, users will be forced to accelerate decision-making, potentially shortening current leasing cycles. Capital allocation strategy remains flexible, with plans to fund the remaining $180 million in capital needs through a mix of debt and opportunistic equity issuance. Moody's upgraded the company's issuer rating to Baa1, providing significant 'dry powder' to increase leverage on a measured basis for future growth opportunities. The company is undergoing an executive transition with the retirement of John Coleman and the addition of Jim Trainer to the management team. Portfolio modernization efforts included the acquisition of two Class A buildings in Jacksonville and a strategic exit from the Fresno market. Management flagged rising gas and diesel prices as a potential risk to consumer balance sheets, though they believe this reinforces the value of 'last mile' logistics locations. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported a significant ramp in activity since February, noting that competition for space in certain markets is beginning to shorten decision timelines. There is currently 775,000 square feet of 'first generation' development space available, which management views as a primary opportunity for near-term upside. Data center demand is primarily coming from suppliers of HVAC, racking equipment, and construction services rather than direct data center operators. This new demand source is 'crowding the field,' which management expects will lead to incremental demand for flexible shallow-bay industrial space. The projected occupancy decline in the second half of the year is a result of suite-by-suite budgeting rather than known large move-outs. Management characterized the current guidance as a 'baseline' or 'floor,' noting that April performance is already tracking ahead of internal projections. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.