Recent developments include strong Q1 2026 earnings results, portfolio acquisitions and dispositions, and updates on leasing and development activities.

• EastGroup reported net income attributable to common stockholders of $75.5 million for Q2 2026 and $170.1 million for the six months ended June 30, 2026, with diluted EPS of $1.40 and $3.17 respectively, reflecting growth compared to prior periods [N1][N2].
• Property Net Operating Income (PNOI) increased 10.6% for Q2 2026 compared to Q2 2025, driven by same property operations, development, and acquisitions [N1].
• The company executed new and renewal leases on 4.887 million square feet during the first half of 2026, with average rental rates increasing 35.2% over prior leases [S2].
• EastGroup began construction on six development projects totaling 933,000 square feet in five markets during the first half of 2026 [S2].
• The company acquired an operating property in Jacksonville, Florida, of 177,000 square feet for $38.13 million and sold two properties totaling 444,000 square feet for $44 million, recognizing gains of $30 million [S2][N1].
• Moody's upgraded EastGroup's issuer rating to Baa1 with a stable outlook in February 2026 [S2].
• EastGroup maintains liquidity through cash, unsecured credit facilities, and forward equity sale agreements totaling approximately $917.65 million as of June 30, 2026 [S2].

EastGroup Properties benefits from strong demand for industrial business distribution space in high-growth, supply-constrained markets, supporting rental rate growth and high occupancy. The company's active development and value-add pipeline offers opportunities to increase rentable square footage and generate incremental income. Its diversified portfolio across multiple states and property types reduces concentration risk. The investment-grade credit rating and access to multiple capital sources provide financial flexibility to fund growth initiatives. The company's governance and risk management practices, including cybersecurity oversight, support operational resilience.

EastGroup Properties faces risks from economic uncertainty, including inflation, interest rate volatility, tariffs, supply chain disruptions, and geopolitical conflicts, which could impact tenant demand and operating costs. While most leases pass through operating expenses to tenants, increases in general and administrative expenses and interest costs could pressure profitability. Development projects carry execution and leasing risks, and market conditions could affect property valuations and capital availability. The company's reliance on unsecured debt and equity issuance exposes it to capital market fluctuations. Cybersecurity threats pose operational risks despite governance measures.

EastGroup Properties' moat is based on its strategic focus on industrial business distribution properties located in supply-constrained submarkets within high-growth regions. The clustering of properties around major transportation features enhances location sensitivity and accessibility for tenants. The company's portfolio scale, with over 65 million square feet across 12 states, and its active development and value-add program support its competitive positioning. Long-term leases with tenants that pay pro rata shares of operating expenses and scheduled rent increases provide revenue stability and inflation protection. The company's investment-grade credit rating (Baa1) supports access to capital on favorable terms. These factors collectively contribute to barriers to entry and operational advantages in its target markets.

• Economic and Market Risks: Persistent inflation, interest rate uncertainty, tariffs, supply chain disruptions, and geopolitical conflicts may adversely impact tenant demand, operating expenses, and overall financial performance.
• Development and Leasing Risks: Development and value-add projects carry risks related to construction delays, leasing absorption, and market conditions that could affect returns and capital deployment.
• Capital Market and Liquidity Risks: Dependence on unsecured bank credit facilities, debt issuance, and equity offerings exposes the company to capital market volatility and refinancing risks.
• Cybersecurity Risks: Material failures, interruptions, or cyber-attacks on information technology systems could harm business operations despite established governance and oversight.

• EastGroup Properties Inc. is a self-administered equity real estate investment trust (REIT) focused on providing functional, flexible, and quality business distribution space primarily in the 20,000 to 100,000 square foot range.
• The company develops, acquires, and operates distribution facilities clustered around major transportation features in supply-constrained submarkets in high-growth markets.
• Core markets include Texas, Florida, California, Arizona, and North Carolina.
• As of June 30, 2026, EastGroup owned 557 industrial properties across 12 states, totaling approximately 65.7 million square feet.
• The portfolio includes 517 business distribution properties (59.8 million sq ft), 19 bulk distribution properties (5.1 million sq ft), and 21 business service properties (0.8 million sq ft).
• During the six months ended June 30, 2026, the company executed new and renewal leases on 4.887 million square feet, representing 7.8% of the operating portfolio's total square footage.
• Average rental rates on new and renewal leases increased by 35.2% compared to prior leases on the same spaces during the first half of 2026.
• Operating portfolio occupancy was 95.6% and leased 96.8% as of June 30, 2026, with slight changes as of July 21, 2026.
• Property Net Operating Income (PNOI) increased 10.8% for the six months ended June 30, 2026, compared to the same period in 2025, driven by same property operations, development, acquisitions, partially offset by dispositions.
• Funds From Operations (FFO) attributable to common stockholders increased to $252 million for the six months ended June 30, 2026, from $228 million in the prior year period.
• Net Income Attributable to common stockholders was $170 million for the six months ended June 30, 2026, compared to $123 million for the same period in 2025.
• Diluted EPS was $1.40 for Q2 2026 and $3.17 for the six months ended June 30, 2026.
• The company sold two operating properties totaling 444,000 square feet during the six months ended June 30, 2026, generating gross proceeds of $44 million and recognized gains of $30 million on sales.
• EastGroup began construction on six development projects totaling 933,000 square feet in five markets during the first half of 2026.
• The development and value-add program consisted of 17 projects totaling 3.175 million square feet across 12 markets, with a projected total investment of $486.8 million and $175.1 million remaining to be invested as of June 30, 2026.
• EastGroup acquired an operating property in Jacksonville, Florida, of 177,000 square feet for $38.13 million in early 2026.
• The company funds development and acquisitions primarily through unsecured bank credit facilities totaling $675 million, supplemented by equity issuance and fixed-rate debt.
• Moody's upgraded EastGroup's issuer rating to Baa1 with a stable outlook in February 2026.
• As of June 30, 2026, EastGroup had cash and cash equivalents of $33.38 million and total immediate liquidity of approximately $917.65 million including credit facility availability and forward equity sale agreements.
• The company has a $625 million unsecured bank credit facility and a $50 million unsecured bank credit facility, both maturing in July 2028, with no outstanding balances as of June 30, 2026.
• Interest expense increased in 2026 compared to 2025 due to new unsecured debt obtained in 2025, with effective fixed interest rates due to interest rate swaps.
• Most leases require tenants to pay pro rata shares of operating expenses, including real estate taxes, insurance, and common area maintenance, reducing EastGroup's exposure to inflation-driven expense increases.
• Most leases include scheduled rent increases, providing revenue growth potential.
• EastGroup's Board of Directors oversees risk management, including cybersecurity risks, with a Cyber Risk Committee and Audit Committee involvement.
• The company monitors economic uncertainty factors such as inflation, interest rate uncertainty, tariffs, supply chain disruptions, and geopolitical conflict, which have not significantly impacted operations in the first half of 2026 but may pose future risks.
• EastGroup uses Funds From Operations (FFO) and Property Net Operating Income (PNOI) as key supplemental performance measures, excluding gains/losses on incidental real estate sales and depreciation to better reflect property performance.
• General and administrative expenses increased in 2026 due to additional overhead and personnel costs supporting portfolio growth.
• Weighted average diluted shares outstanding increased slightly in 2026 due to equity issuance under the ATM program.
• The company has an ATM common stock offering program with an aggregate gross sales price capacity of $1 billion, replacing a prior program.
• EastGroup's liquidity sources include operating cash flow, unsecured bank credit facilities, debt financing, and equity issuance.
• The company intends to repay debt obligations through operating cash flows, borrowings, and equity issuance.
• EastGroup's portfolio is concentrated in industrial real estate with a focus on business distribution space in high-growth, supply-constrained submarkets.
• The company manages development risk by limiting land held for development and adjusting start dates based on leasing activity.