Is EGP a good stock to buy? We came across a bullish thesis on EastGroup Properties, Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on EGP. EastGroup Properties, Inc.’s share was trading at $202.48 as of June 9th. EGP’s trailing P/E was 36.04 according to Yahoo Finance.
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EastGroup Properties Inc. (EGP) is benefiting from continued strength in Sunbelt industrial real estate markets, where demand for logistics and distribution facilities remains resilient across high-growth regions such as Florida, Texas, Arizona, California, and North Carolina. The company is an internally managed REIT with a 57-year operating history and has established itself as a leading owner of multi-tenant industrial properties that serve the expanding e-commerce, manufacturing, and supply chain sectors.
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EastGroup owns 551 industrial properties across 12 states and maintains a highly diversified tenant base, with no single tenant contributing more than 1.5% of annualized base rent, reducing concentration risk and supporting stable cash flows. The company delivered strong fourth-quarter results for the period ending December 31, driven by same-property growth, acquisitions, and recently completed development projects. Revenue from real estate operations increased to $187.4 million from $163.8 million in the prior-year period, while funds from operations (FFO) rose 15.4% year-over-year to $124.8 million.
Excluding gains related to involuntary conversion and business interruption claims, FFO per share improved to $2.34 from $2.15 a year earlier. Management remains optimistic about 2026, citing limited new supply, healthy leasing demand for development projects, and a strong balance sheet position.
The company also guided for 2026 FFO per share between $9.40 and $9.60, reinforcing confidence in continued earnings growth. EastGroup has additionally raised its dividend for 15 consecutive years and currently offers a 3.2% dividend yield supported by a healthy 65% payout ratio, positioning the REIT for sustained long-term shareholder returns.
Previously, we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted the company’s resilient industrial REIT platform, strong leasing spreads, disciplined capital recycling strategy, and conservative balance sheet supporting steady FFO growth. STAG’s stock price has appreciated by approximately 14.86% since our coverage. @MoneyShow shares a similar view but emphasizes on EGP’s Sunbelt logistics exposure and dividend growth potential.
EastGroup Properties, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held EGP at the end of the first quarter which was 27 in the previous quarter. While we acknowledge the risk and potential of EGP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EGP and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
