EastGroup Properties raises 2026 FFO outlook on strong leasing

Overview

• US industrial REIT's Q2 net income per share rose 17% yr/yr, driven by property gains

• Q2 FFO per share, excluding certain gains, increased 6.8% yr/yr to $2.36

• Same property NOI rose 6.2% on straight-line basis, 8.3% on cash basis in Q2

Outlook

• EastGroup sees 2026 EPS between $5.83 and $5.97

• Company expects 2026 FFO per share between $9.52 and $9.66

• EastGroup projects 2026 development starts of $325 mln

Result Drivers

• SAME PROPERTY GROWTH - Co said higher PNOI was driven by increased income from same property operations, newly developed and value-add properties, and recent acquisitions

• RENTAL RATE INCREASES - Rental rates on new and renewal leases signed in Q2 rose an average of 34.1% on a straight-line basis

• LEASING ENVIRONMENT - Co said leasing environment has normalized, with record leasing activity reflecting continued demand, per CEO and President

Company press release: ID:nPn7qmc6a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Eastgroup Properties Inc is $221.00, about 0.2% below its July 21 closing price of $221.34

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 36 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)