EastGroup Properties: 2Q26 In Line; Low End of 2026 Guidance Raised

研报英文原文证据摘录

EastGroup Properties: 2Q26 In Line; Low End of 2026 Guidance Raised

Deutsche Bank

Research

Rating Company Date

Hold EastGroup Properties 23 July 2026

North America Reuters Bloomberg Rating Hold

United States EGP.N EGP US Price target (USD) 185.00 Price at 22 Jul 26 216.33

52-week range 223.38 – 158.00

Financial

REITs Valuation & Risks

2Q26 In Line; Low End of 2026 Guidance

Raised OmotayoResearch OkusanyaAnalyst

+1-212-250-9284

Key Takeaway: Good Results But May Be Overshadowed By Peers

EGP reported 2Q26 FFO/sh of $2.36 (excluding involuntary conversions and

business interruption claims), which was in-line with consensus and DBe. Like

PLD and FR which reported earlier, underlying operating results were generally

solid, as the industrial warehouse sector moves beyond the overhang from tariffs

and so far, does not seem to be impacted by the war with Iran and other US-

related geopolitical tensions. EGP reported a record leasing quarter with 2.84M

sq ft, highlighted by a nice rebound in new leasing (834K sq ft vs. 368K sq ft in

1Q26 and 620K sq ft in 4Q25), as well as 1.1M sq feet of development leasing

signed between April 1st and July 21st, 2026. In other positive news, Cash SS NOI

growth remained solid at 8.7% in 1Q26 vs. 9.2% in 1Q26 and 8.4% in 4Q25.

That said, the stock is up 21.5% YTD, and trading at 21.7x P/FFO which is a slight

premium to the Industrial REIT group average. The bar is thus high, and we worry

somewhat that investors may nitpick at occupancy declining yet again to 95.6%

from 95.9% in 1Q26 from 96.5% in 4Q25. Blended cash mark-to-market also

slowed slightly to 18.7% in 2Q26 from 20.3% in 1Q26 and 19.1% in 4Q25 and

remains a big step down from 30%+ a year ago.

Management is clearly feeling more confident about the earnings outlook for the