EastGroup Properties, Inc. (EGP) Stock Analysis

EastGroup Properties’ primary competitive advantage lies in its focused strategy of owning and developing shallow-bay, multi-tenant industrial properties in high-growth Sunbelt markets. Approximately 75% of revenue is derived from tenants leasing under 100,000 square feet, a segment with limited new supply and high demand for last-mile distribution. As of Q3 2025, EGP’s operating portfolio was 96.7% leased, with average rental rate increases on new and renewal leases of 35.9%—well above sector averages.

EGP’s geographic concentration in Texas, Florida, California, Arizona, and North Carolina positions it in regions with above-average GDP and population growth. This focus has produced a five-year market-weighted GDP growth rate of 19%, outpacing the U.S. average by 58%. The company’s infill locations near major transportation nodes further enhance tenant retention and pricing power.

Development expertise is another differentiator. EGP self-develops roughly half its portfolio, enabling above-average yields (recent development yields: 7–8%) and cost control. In contrast, larger peers such as Prologis and Duke Realty have greater exposure to big-box logistics and more volatile build-to-suit projects.

Customer concentration risk is low; the top 10 tenants account for less than 7% of annualized base rent. EGP’s conservative balance sheet (debt/total market cap: 14%) and a 33-year record of growing or maintaining dividends reinforce its reputation for stability and prudent management.