| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 20 | 34.8x | 17.8x | Bottom tier | |
Growth | 67 | 11.0% | 7.1% | Top tier | |
Quality | 56 | 5.1% | 4.5% | Around median | |
Safety | 67 | 3.2x | 2.6x | Top tier | |
Capital Return | 68 | 3.13% | 2.12% | Top tier | |
Momentum | 69 | 21.5% | 2.9% | Top tier | |
Sentiment | 75 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
EastGroup Properties owns and develops a portfolio of industrial properties located primarily in infill locations near population centers, with a focus on small-bay and last-mile distribution buildings. It generates income from leasing existing space, repricing leases upon renewal, and leasing new development projects, while using acquisitions and ground-up development to expand the portfolio. The company aims to diversify revenue geographically and across tenants; the share of its ten largest tenants declined to 6.6% of rent in fiscal Q2 2026, down 30 basis points year over year.
In fiscal Q2 2026, revenue was $193.3 million, net income was $75.5 million, and earnings per share were $1.40, equivalent to a calculated net income margin of approximately 39.1%. Funds from operations were $2.36 per share, exceeding the midpoint of the company's guidance by $0.02 and rising 6.8% from the comparable quarter, while funds from operations per share increased 7.6% during the first half. For the annual comparison, fiscal 2025 recorded revenue of $721.3 million, net income of $257.4 million, and earnings per share of $4.87.
The operating performance mix was supported by both the existing portfolio and development: quarter-end leasing was 96.8%, occupancy was 95.6%, and same-property occupancy was 96.9%. Same-property cash net operating income increased 8.3% during the quarter, while re-leasing spreads reached 34% on a straight-line basis and 19% on a cash basis. On the growth side, the company signed a record 3.9 million square feet of leases, including approximately 1.1 million square feet of development and first-generation leasing, and transferred four projects totaling 669 thousand square feet and 100% occupancy to the operating portfolio.
The average analyst price target is $230.45, compared with a wide target range of $206 to $268, and the average is only approximately 1.6% above the 52-week high of $226.71. The “Neutral” consensus reflects a balance between funds from operations growth and record leasing on one hand, and the delayed contribution of new leases, difficult occupancy comparisons, and acquisition pricing on the other.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
EastGroup recorded revenue of $193.3 million, net income of $75.5 million, and earnings per share of $1.40. Funds from operations were $2.36 per share, $0.02 above the midpoint of guidance and up 6.8% from the comparable quarter. The outperformance was primarily driven by higher-than-expected same-property net operating income, supported by occupancy that exceeded expectations. Same-property cash net operating income also increased 8.3% during the quarter.
EastGroup does not lease data centers themselves, but instead leases space to suppliers serving these facilities. These suppliers accounted for approximately 40% of development leasing in fiscal Q1 2026 and approximately 20% in Q2, equivalent to roughly one-quarter of activity during the first half according to management's estimate. Management cited Dallas, Phoenix, and Atlanta among the markets that could experience significant expansion in data center capacity. It also emphasized that the buildings are not designed for tenant-specific use, limiting re-leasing risk if data center suppliers vacate.
The company raised its development-start guidance to $325 million, an increase of $60 million from its previous forecast. It started $123 million of projects during the first half and assumes an additional $202 million of project starts in the second half. In fiscal Q2 2026, it signed development and first-generation leases totaling approximately 1.1 million square feet and transferred four projects totaling 669 thousand square feet at full occupancy to operations. Management expected yields slightly above 7% for typical projects after excluding the impact of the higher-yielding Dominguez project in Los Angeles.
Automated analysis for informational purposes only — not investment advice.
New leases require time before tenants begin paying rent because of build-out work and permits, which can take two to five months depending on the space. Management estimated that occupancy of all leases signed in July 2026 would have added $0.03 to fiscal 2026 funds from operations. Therefore, a larger portion of the impact from fiscal Q2 2026 leases is expected to appear in fiscal 2027. Nevertheless, the company raised the midpoint of its fiscal 2026 guidance to $9.59 per share from $9.50 at the beginning of the year.
Management believes consumer weakness could slow tenant demand and subsequently lead to credit pressure, particularly with elevated interest rates and fuel prices. Permit difficulties and long lead times for steel, switchgear, and transformers could also delay project deliveries by several months. Geographically, the Bay Area remained slower than most markets, the Arista project in Denver was delayed, and pockets of oversupply exist on the outskirts of Austin. In addition, re-leasing spreads may decline from previous exceptional levels after reaching 19% on a cash basis in fiscal Q2 2026.
EastGroup ended fiscal Q2 2026 with no borrowings on its $675 million unsecured credit facility, with debt equal to 12.9% of total market capitalization and interest and fixed-charge coverage of 15.1 times. The average analyst price target is $230.45 within a range of $206 to $268, compared with a 52-week high of $226.71. The consensus stands at “Neutral” despite increased guidance for funds from operations, development, and acquisitions. The wide target range indicates a clear divergence in assessments of operating growth versus execution risks, slowing comparisons, and the pricing of acquired properties.
