EastGroup Properties, Inc. EGP
EastGroup Properties remains a high-quality Sunbelt industrial REIT with revenue growing 13.0% to $721M in 2025 and a just-announced 12.9% dividend increase to $1.75 per share, signaling management confidence. However, 2025 gross margin compressed sharply to 43.3% from 72.7% in 2024 with operating income falling to $288M from $443M, even as net income rose 13% to $257M — suggesting earnings quality is increasingly reliant on non-operating items.
At 35.0x earnings versus a peer median of 22.5x (a 55.5% premium) and 14.3x sales versus 8.0x (a 79.0% premium), the stock prices in sustained outperformance that the deteriorating operating margins do not currently support, keeping the call at hold despite the recent pullback to $200 and near-oversold RSI of 37.8.
What could go wrong
- Operating margin compression. 2025 operating margin fell to 39.9% from 69.4% in 2024, with operating income declining to $288M from $443M; if this trend persists into 2026, the premium valuation becomes increasingly difficult to justify.
- Valuation premium. EGP trades at 35.0x P/E, 14.3x P/S, and 22.2x EV/EBITDA — premiums of 55.5%, 79.0%, and 41.8% respectively versus peer medians — leaving limited margin for execution missteps.
- Insider net selling value. Over the trailing 24 months, insider transactions show net positive share accumulation of 71,124 shares but net negative value of approximately $10.2M, indicating larger-dollar dispositions offsetting smaller grant-based acquisitions.
- Sunbelt industrial cycle risk. Concentration in Florida, Texas, Arizona, California, and North Carolina exposes EGP to regional demand cycles; any slowdown in Sunbelt industrial leasing could pressure re-leasing spreads and occupancy.
What would change my mind
Where this comes from: FMP annual fundamentals FY2025; derived_metrics FY2025 · FMP annual fundamentals FY2025 vs FY2024; derived_metrics · peer_relative composite · PRNewsWire news article 2026-08-27. Orin's read on EGP; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All EGP filings| Form | Filed | What it says | Read |
|---|---|---|---|
| 10-Q | 22 Jul | EastGroup Properties, Inc. | read |
| 8-K | 22 Jul | EastGroup Properties, Inc. | read |
| 8-K | 26 May | EastGroup Properties, Inc. | read |
| 13G/A | 15 May | — | on file |
| 13G | 29 Apr | — | on file |
| 13G | 29 Apr | — | on file |
| 10-Q | 22 Apr | EastGroup Properties, Inc. | read |
| 8-K | 22 Apr | EastGroup Properties, Inc. | read |
Largest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Portfolio Management | $943.3M | 0.0% of fund |
| State Street | $532.1M | 0.0% of fund |
| Vanguard Capital Management | $491.9M | 0.0% of fund |
| Price T Rowe Associates /Md/ | $325.4M | 0.0% of fund |
| Norges Bank | $302.5M | 0.0% of fund |
| Geode Capital Management | $230.3M | 0.0% of fund |
74 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 87 Form 4 filings, net −$10.2M. Of the 50 on hand, 0 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about EGP
Orin answers questions about EGP from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 35.5× | — | 56.8× |
| EV/EBITDA | 22.5× | — | — |
| P/S | 14.46× | — | — |
| P/B | 3.0× | — | — |
11.7%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.4B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$230
$200 – $268 · +14% against today's price
- 16 buy or overweight
- 17 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| EGPEastGroup Properties, Inc. | $11B | 35.5× | 22.5× | 44.2% | 40.5% | 9% |
| AREAlexandria Real Estate Equities, Inc. | $9B | — | 50.2× | 69.5% | -30.6% | -6% |
| CUBECubeSmart | $9B | 26.1× | 17.3× | 17.4% | 29.4% | 12% |
| FRFirst Industrial Realty Trust, Inc. | $8B | 22.2× | 15.5× | 47.7% | 48.0% | 13% |
| FRTFederal Realty Investment Trust | $9B | 21.8× | 13.9× | 54.0% | 32.7% | 13% |
| LINELineage, Inc. | $8B | — | 11.9× | 11.0% | -3.1% | -2% |
| REXRRexford Industrial Realty, Inc. | $9B | — | — | 61.0% | -39.7% | -5% |
| STAGSTAG Industrial, Inc. | $7B | 28.3× | 14.8× | 62.0% | 28.0% | 7% |
The median is of the 4 peers listed above and nothing else — check it against the column. This company trades 46.8% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.