EastGroup Properties Announces Third Quarter 2026 Results
EASTGROUP PROPERTIES INC (EGP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 EastGroup Properties Announces Third Quarter 2026 Results Quarter Highlights • Net Income Attributable to Common Stockholders of $1.46 Per Diluted Share for Third Quarter 2026 Compared to $1.26 Per Diluted Share for Third Quarter 2025 • Funds from Operations (“FFO”),
How this was made
The 30-second read
Why it matters
The raised acquisition and development guidance signals stronger growth, likely supporting the stock price in the short term.
Market read
First‑time disclosure of higher guidance provides fresh material for traders; the news is likely to move EGP today.
What to watch
Potential interest‑rate pressure could increase financing costs for the planned acquisitions.
EastGroup Properties Announces Third Quarter 2026 Results
Third-quarter diluted EPS rose to $1.46 from $1.26 and FFO per diluted share rose 7.9% to $2.45, supported by 10.1% PNOI growth, 5.3% straight-line Same PNOI growth excluding lease terminations, 97.3% leased operating portfolio occupancy, and raised 2026 development-start and acquisition targets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $199.4M | – | – |
| Income from real estate operations, three months ended September 30, 2026GAAP | $199.4M | – | – |
| Other revenue, three months ended September 30, 2026GAAP | $37K | – | – |
| Expenses from real estate operations, three months ended September 30, 2026GAAP | $51.82M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $58.21M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $6.25M | – | – |
| Indirect leasing costs, three months ended September 30, 2026GAAP | $251K | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$9.62M | – | – |
| Net income, three months ended September 30, 2026GAAP | $78.38M | – | – |
| Net income attributable to EastGroup Properties, Inc. common stockholders, three months ended September 30, 2026GAAP | $78.38M | – | – |
| Net income attributable to common stockholders per diluted share, three months ended September 30, 2026GAAP | $1.46 | – | – |
| Weighted average shares outstanding, diluted, three months ended September 30, 2026GAAP | 53,844 | – | – |
| FFO attributable to common stockholders, three months ended September 30, 2026non-GAAP | $131.9M | – | – |
| FFO attributable to common stockholders per diluted share, three months ended September 30, 2026non-GAAP | $2.45 | – | 7.9% |
| FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims, three months ended September 30, 2026non-GAAP | $131.9M | – | – |
| FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims, per diluted share, three months ended September 30, 2026non-GAAP | $2.45 | – | 7.9% |
| Property net operating income, three months ended September 30, 2026non-GAAP | $147.9M | – | 10.1% |
| Same PNOI, straight-line basis, three months ended September 30, 2026non-GAAP | $136.1M | – | – |
| Same PNOI excluding income from lease terminations, straight-line basis, three months ended September 30, 2026non-GAAP | $136.0M | – | 5.3% |
| Same PNOI excluding income from lease terminations, cash basis, three months ended September 30, 2026non-GAAP | $133.0M | – | 7.1% |
| Same property average occupancy, three months ended September 30, 2026other | 96.9% | – | – |
| Same property average rental rate, three months ended September 30, 2026other | $9.46 | – | – |
| Rental rates on new and renewal leases, straight-line basis, three months ended September 30, 2026other | increased an average of 36.3% | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $583.0M | – | – |
| Income from real estate operations, nine months ended September 30, 2026GAAP | $582.9M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $248.5M | – | – |
| Net income attributable to EastGroup Properties, Inc. common stockholders, nine months ended September 30, 2026GAAP | $248.5M | – | – |
| Net income attributable to common stockholders per diluted share, nine months ended September 30, 2026GAAP | $4.63 | – | – |
| FFO attributable to common stockholders, nine months ended September 30, 2026non-GAAP | $383.9M | – | – |
| FFO attributable to common stockholders per diluted share, nine months ended September 30, 2026non-GAAP | $7.15 | – | 7.7% |
| FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims, nine months ended September 30, 2026non-GAAP | $382.0M | – | – |
| FFO attributable to common stockholders, excluding gain on involuntary conversion and business interruption claims, per diluted share, nine months ended September 30, 2026non-GAAP | $7.11 | – | 7.6% |
| Property net operating income, nine months ended September 30, 2026non-GAAP | $430.8M | – | 10.5% |
| Same PNOI excluding income from lease terminations, straight-line basis, nine months ended September 30, 2026non-GAAP | $401.9M | – | 6.3% |
| Same PNOI excluding income from lease terminations, cash basis, nine months ended September 30, 2026non-GAAP | $393.4M | – | 8.2% |
| Debt, September 30, 2026other | $1.81B | – | – |
| Debt-to-EBITDAre ratio, annualized, three months ended September 30, 2026non-GAAP | 3.2 | – | – |
| Interest and fixed charge coverage ratio, three months ended September 30, 2026non-GAAP | 14.7 | – | – |
| Debt-to-total market capitalization, September 30, 2026other | 14.6% | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Year 2026 outlook
- NoteNet income attributable to common stockholders: $322,757 to $325,991
- NoteNet income attributable to common stockholders per diluted share: $5.99 to $6.05
- NoteFunds from operations attributable to common stockholders: $518,194 to $521,428
- NoteFunds from operations attributable to common stockholders per diluted share: $9.62 to $9.68
- NoteQ4 2026 net income attributable to common stockholders per diluted share: $1.36 to $1.42
- NoteQ4 2026 funds from operations attributable to common stockholders per diluted share: $2.47 to $2.53
- NoteFFO per share, excluding gain on involuntary conversion and business interruption claims: $9.58 - $9.64
- NoteSame PNOI growth, cash basis: 7.2% - 7.8%
- NoteAverage month-end occupancy, operating portfolio: 95.6% - 96.2%
- NoteAverage month-end occupancy, same property pool: 96.7% - 97.3%
- NoteDevelopment starts: 2.5 million square feet; $390 million projected total investment
- NoteOperating property acquisitions: $360 million
- NoteOperating property dispositions: $44 million
- NoteGross capital proceeds: $625 million
- NoteGeneral and administrative expense: $26.8 million
Capital returns
- Declared a cash dividend of $1.75 per share of common stock in the third quarter of 2026.
- The dividend represented a 12.9% increase over the previous quarter’s dividend.
- The third quarter dividend was paid on October 15, 2026.
- The dividend was the Company’s 187th consecutive quarterly cash distribution to shareholders.
- The annualized dividend rate was $7.00 per share.
What drove it
- PNOI increased $6,809,000 due to same property operations, $4,156,000 due to newly developed and value-add properties, and $3,213,000 due to 2025 and 2026 acquisitions during the third quarter.
- The operating portfolio was 97.3% leased and 96.5% occupied as of September 30, 2026.
- Average month-end occupancy of the operating portfolio was 96.1% for the third quarter of 2026 compared to 95.7% for the third quarter of 2025.
- Rental rates on new and renewal leases increased an average of 36.3% on a straight-line basis.
- During the third quarter, EastGroup began construction of four development projects and one redevelopment project totaling 998,000 square feet, with projected total costs of $162,200,000.
- The development and value-add program consisted of 21 projects totaling 4,061,000 square feet in 14 markets, collectively 25% leased as of October 20, 2026.
- The Company acquired two operating properties containing 531,000 square feet and 107 acres of development land for approximately $164 million during the quarter.
Concerns
- Depreciation and amortization expense was $58,206,000 for the third quarter of 2026 compared to $54,131,000 for the third quarter of 2025.
- Interest expense was $9,617,000 for the third quarter of 2026 compared to $7,685,000 for the third quarter of 2025.
- Weighted average shares outstanding increased by 580,000 shares on a diluted basis for the third quarter of 2026 compared to the same period of 2025.
- Debt-to-EBITDAre ratio was 3.2 for the three months ended September 30, 2026 compared to 2.9 for the same period of 2025.
- Interest and fixed charge coverage ratio was 14.7 for the three months ended September 30, 2026 compared to 16.8 for the same period of 2025.
What to watch
- Execution against the 2026 development-start target of 2.5 million square feet and $390 million of projected total investment.
- Execution against the $360 million operating-property acquisition target following approximately $262 million of acquisitions subsequent to quarter-end.
- Leasing progress across the 21-project development and value-add program, which was 25% leased as of October 20, 2026.
- Settlement timing of forward equity agreements, with 3,443,388 shares available for settlement prior to applicable expirations ranging from February 2027 to February 2028.
- Same PNOI growth, occupancy, and rent growth relative to the 2026 outlook ranges.
Balance sheet and cash flow
- Debt was $1,806,556 at September 30, 2026.
- Debt-to-total market capitalization was 14.6% at September 30, 2026.
- The Company entered into forward equity sale agreements with respect to 2,402,931 shares at an initial weighted average forward price of $202.06 per share, totaling approximately $485,531,000 based on the initial forward price.
- The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into the forward equity sale agreements.
- As of October 20, 2026, 3,443,388 shares were available for settlement for anticipated net sales of approximately $685,234,000, based on a weighted average forward price of $199.00 per share.
- Subsequent to September 30, 2026, the Company repaid a $100,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.98%.
- Operating cash flow and free cash flow were not reported.
Analysis
EastGroup reported a stronger third quarter, with GAAP net income attributable to common stockholders per diluted share of $1.46 compared with $1.26 in the prior-year quarter. FFO per diluted share was $2.45, up 7.9% from $2.27, while PNOI increased 10.1% to $147,890,000. For the first nine months, diluted EPS was $4.63 compared with $3.60 and FFO per diluted share was $7.15 compared with $6.64.
Underlying property operations remained firm. Same PNOI excluding lease terminations increased 5.3% on a straight-line basis and 7.1% on a cash basis in the quarter. Same-property average occupancy was 96.9%, compared with 96.7%, and the operating portfolio was 97.3% leased and 96.5% occupied at September 30. New and renewal lease rental rates increased an average of 36.3% on a straight-line basis, while same-property average rental rate was $9.46 compared with $8.99 per square foot.
Growth also came from external investment and development. PNOI benefited from same-property operations, newly developed and value-add properties, and 2025 and 2026 acquisitions. EastGroup acquired two operating properties and development land for approximately $164 million during the quarter, then acquired three operating properties and development land for approximately $262 million subsequent to quarter-end. The Company started four development projects and one redevelopment project totaling 998,000 square feet during the quarter, and its development and value-add program totaled 4,061,000 square feet, with 25% leased as of October 20, 2026.
Capital allocation expanded alongside a balance sheet supported by debt-to-total market capitalization of 14.6%. The Company entered forward equity sale agreements totaling approximately $485,531,000 based on the initial forward price and subsequently repaid a $100,000,000 senior unsecured term loan. It increased the quarterly dividend by $0.20 per share, or 12.9%, to $1.75 per share. Interest expense and depreciation increased from the prior-year quarter, while debt-to-EBITDAre increased to 3.2 from 2.9 and interest and fixed charge coverage declined to 14.7 from 16.8.
The 2026 outlook calls for net income attributable to common stockholders of $5.99 to $6.05 per diluted share and FFO of $9.62 to $9.68 per diluted share. The Company raised development starts to $390 million and operating-property acquisitions to $360 million. Guidance also calls for cash-basis Same PNOI growth of 7.2% to 7.8%, operating-portfolio average month-end occupancy of 95.6% to 96.2%, and same-property-pool average month-end occupancy of 96.7% to 97.3%.
Management, verbatim
The team and the portfolio performed ahead of expectations this quarter and so far this year. The leasing environment has been much more stable than headlines would lead one to expect. This activity is exciting as we begin to turn the page into 2027. Looking beyond the current environment, I remain bullish on the continuing external trends benefitting our shallow bay, last mile, high-growth market portfolio.
Marshall Loeb, CEO
Continued leasing momentum gave us the confidence to raise our development starts again, to $390 million for the year, and attractive opportunities allowed us to increase our acquisition guidance to $360 million. Supported by our strong balance sheet, we remain focused on deploying capital with discipline and creating long-term value for our shareholders.
Reid Dunbar, President
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Revenue guidance was not reported.
- Prior-quarter comparisons for reported operating metrics were not reported.
- A separate previous earnings release outlook was not provided for formal actual-versus-prior-guidance comparison.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K Item 2.02 earnings release for EastGroup Properties, a publicly traded REIT (NYSE: EGP).
Ticker impact
EastGroup Properties reported Q3 2026 earnings, raised acquisition guidance to $360M and development spend to $390M.
likely upward pressure as investors price in higher growth spending
The 8‑K filing is the first public disclosure of the new guidance; the raised figures are material for a mid‑cap REIT.
Market effects
Higher acquisition and development spend may boost the REIT sector and related industrial real‑estate peers.
Positive for U.S. commercial real‑estate markets, especially shallow‑bay logistics properties.
Limited to U.S. REIT investors; no broader macro impact.
Counterpoint
If the raised guidance is already priced in, the stock could face disappointment on execution risk.
Key entities
- companyEastGroup Properties, Inc.
NYSE‑listed REIT focused on logistics and industrial properties.
