EastGroup Properties Inc. (EGP) is an internally managed REIT with a 57-year history. The trust is a leading provider of multi-tenant distribution and logistics facilities primarily in Sunbelt markets, such as Florida, Texas, Arizona, California, and North Carolina, highlights Ben Reynolds, editor of Top 10 REITs.
The REIT owns 551 industrial properties in 12 states, with no single tenant accounting for more than 1.5% of the total annualized base rent (ABR). EastGroup has a $10.4 billion market cap.
EastGroup Properties Inc. (EGP)
On Feb. 4, EastGroup reported its Q4 results for the period ending Dec. 31. For the quarter, revenues from real estate operations totaled $187.4 million, up from $163.8 million in the prior-year period. Growth stemmed from same-property gains, acquisitions, and recently delivered development projects.
Funds from operations (FFO) of $124.8 million increased 15.4% year-over-year. Excluding gains on involuntary conversion and business interruption claims, FFO per share was $2.34 versus $2.15 in Q4 2024.
Management expressed confidence in the company’s positioning heading into 2026, citing limited new supply, strong development leasing activity, and a well-capitalized balance sheet. The company provided initial 2026 FFO-per-share guidance in the range of $9.40 to $9.60.
EastGroup has raised its dividend for 15 consecutive years and is offering a 3.2% dividend yield. Given its healthy payout ratio of 65% and consistent growth trajectory, we believe the REIT will continue raising its dividend for many years.
Recommended Action: Buy EGP.
