$EGP · EASTGROUP PROPERTIES INC

EastGroup Properties reported Q3 2026 results with FFO of $2.45 per diluted share, up 7.9% from $2.27 in Q3 2025. Same Property NOI rose 5.3% straight-line and 7.1% cash basis. The portfolio was 97.3% leased with rental rate spreads averaging 36.3% on new and renewal leases. The company raised its quarterly dividend 12.9% to $1.75 per share and entered forward equity sale agreements for approximately $486 million at $202.06 per share. Full-year 2026 FFO guidance was raised to $9.62–$9.68.

Extended-hours last trade at $203.90 (+0.30% vs regular close of $203.30), a muted reaction to a strong quarter. The $486M forward equity raise at $202.06 may be capping upside enthusiasm despite the 7.9% FFO growth and 12.9% dividend hike.

Industrial REIT delivering accelerating fundamentals — 36.3% rent spreads, 7.1% cash NOI growth, and a 12.9% dividend hike — while raising $486M in forward equity to fund a growing development and M&A

Industrial REITs continue to benefit from tight shallow-bay, last-mile logistics markets. EastGroup's 36.3% straight-line rent spreads and 97.3% leased portfolio reflect sustained pricing power in Sun Belt markets.

Forward equity agreements on 3.44M shares (~$685M anticipated net proceeds) create dilution risk; weighted average shares already increased 580K YoY in Q3. Development pipeline of $636.7M total cost with $251.5M remaining to fund adds execution risk.