One-glance verdict
Within fair range
$154.70 our estimate vs market $201.52
Wall Street consensus: $227.90 (47.3% higher than our fair-value estimate)
30% above our estimate
Fundamentals snapshot
EastGroup Properties, Inc.
EGP · NYQ · Real Estate · REIT - Industrial
Current price
$201.52
52-week range
$166.11 - $226.71
Market cap
$10.84B
Balance sheet
Watch
9.82x Adequate
Net debt $1.60B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.4% last year.
- Reward Returns 8.7% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Forward P/E (36.3x) is higher than trailing (35.4x) - earnings are expected to drop.
What this company does
EastGroup Properties, Inc.
EastGroup Properties is a special type of company called a real estate investment trust (a company that owns buildings and pays out most of its profit to investors), which makes money by developing and renting out warehouses in fast-growing states like Texas and Florida. By placing these buildings near major transportation hubs where it's hard to build new ones, EastGroup attracts businesses that need to ship goods quickly. This strategy helps create a steady stream of rental income for the company and its shareholders.
How the company got here
EastGroup Properties started in 1969 as a type of company called a real estate investment trust (REIT), which allows people to invest in a portfolio of properties. Initially, it invested in real estate in the northeastern United States. A major turning point came in 1983 when new management took over, changed the name to EastGroup Properties, and shifted the company's focus to industrial properties in the Sunbelt region of the U.S. Over the years, EastGroup has grown by acquiring other real estate companies and developing its own properties, concentrating on warehouses and distribution centers in states like Texas, Florida, California, Arizona, and North Carolina.
What it actually does
EastGroup Properties is in the business of owning and managing industrial buildings that are essential for the storage and distribution of goods. Think of them as a landlord for companies that need warehouse space. Their properties are typically located in fast-growing cities in the southern United States, often near major transportation hubs like highways and airports. The spaces they offer are flexible and cater to businesses that need between 20,000 and 100,000 square feet, which is a common size for local and regional distribution centers.
Industrial Properties
This is EastGroup's one and only business segment, making it a focused company. They make money by leasing their industrial buildings to a variety of businesses. These tenants pay rent to use the space for their operations, which could include storing products before they are shipped to stores or directly to customers (a key part of the supply chain, the journey of a product from the manufacturer to the consumer). Because EastGroup focuses on what are called 'triple net leases', the tenants are also responsible for paying most of the operating expenses of the property, such as real estate taxes and insurance, which helps provide a steady income stream for EastGroup.
What management is betting on now
EastGroup's current strategy is centered on developing new industrial properties in their target markets and acquiring existing ones. They focus on areas where there is high demand for warehouse space and it's difficult for competitors to build new properties, which they refer to as supply-constrained submarkets. The company is also focused on 'capital recycling' (selling older or less strategic properties and using the money to invest in new developments and acquisitions in higher-growth areas). This approach allows them to continuously upgrade the quality of their portfolio and focus on markets with strong economic and population growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$108.52M
FY2024 Q4
$43.89M
FY2025 Q1
$113.91M
FY2025 Q2
$119.17M
FY2025 Q3
$120.26M
FY2025 Q4
$51.57M
FY2026 Q1
$126.72M
FY2026 Q2
$146.20M
Revenue
$193.33M
Net income
—
Diluted EPS
1.40
Operating cash flow
$159.59M
Free cash flow
$146.20M
Fetching…
Sources
Revenue
$190.26M
Net income
—
Diluted EPS
1.77
Operating cash flow
$142.35M
Free cash flow
$126.72M
Fetching…
Sources
Revenue
$187.47M
Net income
—
Diluted EPS
1.27
Operating cash flow
$64.75M
Free cash flow
$51.57M
Fetching…
Sources
Revenue
$182.14M
Net income
—
Diluted EPS
1.26
Operating cash flow
$138.91M
Free cash flow
$120.26M
Fetching…
Sources
Revenue
$177.29M
Net income
—
Diluted EPS
1.20
Operating cash flow
$143.37M
Free cash flow
$119.17M
Fetching…
Sources
Revenue
$174.45M
Net income
—
Diluted EPS
1.14
Operating cash flow
$133.71M
Free cash flow
$113.91M
Fetching…
Sources
Revenue
$164.04M
Net income
—
Diluted EPS
1.17
Operating cash flow
$53.89M
Free cash flow
$43.89M
Fetching…
Sources
Revenue
$162.88M
Net income
—
Diluted EPS
1.13
Operating cash flow
$122.93M
Free cash flow
$108.52M
Fetching…
Sources
Is it cheap or expensive?
Fair value $154.70 vs current price $201.52
Wall Street consensus is the average analyst price target: $227.90 (47.3% higher than our fair-value estimate).
Our most-likely fair value is $154.70 a share — about 23.2% away from today's price of $201.52, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.6B. Interest coverage 9.8x.
Net debt
$1.60B
Interest coverage
9.82x
EastGroup Properties, Inc.'s profit covers its interest bill about 9.8 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
EGP
BASELINE
EastGroup Properties, Inc.
Total debt $1.65B Interest coverage 9.82x This is the baseline the peer rows are being compared against.
Total debt $37.09B Interest coverage 3.51x -64% vs EGP Carries about 2.8x less debt cushion than EGP.
Total debt $3.27B Interest coverage 3.63x -63% vs EGP Carries about 2.7x less debt cushion than EGP.
Total debt $2.58B Interest coverage 3.62x -63% vs EGP Carries about 2.7x less debt cushion than EGP.
Total debt $3.48B Interest coverage 2.42x -75% vs EGP Carries about 4.1x less debt cushion than EGP.
Total debt $948.29M Interest coverage 5.86x -40% vs EGP Carries about 1.7x less debt cushion than EGP.
What you should know
The case for and against EGP
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.4% last year.
-
Returns 8.7% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Forward P/E (36.3x) is higher than trailing (35.4x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
35.42x
Forward P/E
36.29x
P/B
3.00x
P/S
14.42x
EV/EBITDA
25.27x
PEG ratio
8.42x
Profitability
How much profit each dollar creates
Gross margin
73.6%
Operating margin
40.8%
Net margin
40.6%
ROE
8.7%
ROA
3.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.46x
Current ratio
0.41x
Quick ratio
0.36x
Total debt
$1.65B
Total cash
$47.35M
Growth
How the business has been compounding
Revenue TTM
$753.19M
Revenue 5Y CAGR
15.2%
EPS TTM
5.69
EPS 5Y CAGR
3.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$505.59M
Free CF TTM
$404.90M
FCF margin
53.8%
Dividend
Shareholder payout
Yield
3.5%
Payout ratio
109.0%
Last ex-div date
2026-09-30