Recent developments include strong Q1 2026 financial results with increased net income and FFO, active leasing with significant rental rate growth, ongoing development and acquisitions, and liquidity management through equity offerings and credit facilities.

• EastGroup Properties reported Q1 2026 net income attributable to common stockholders of $94.6 million ($1.77 per diluted share), a 55.3% increase from Q1 2025, driven by higher property net operating income and gains on property sales [N1].
• Funds from operations (FFO) for Q1 2026 were $125.3 million ($2.34 per diluted share), up 8.8% from Q1 2025, reflecting increased PNOI partially offset by higher interest expense [N3].
• The operating portfolio was 96.5% leased and 95.9% occupied as of March 31, 2026, with new and renewal leases signed at an average rental rate increase of 36.8% [N1].
• EastGroup began construction on four development projects totaling 586,000 square feet and transferred two projects to operating properties during Q1 2026 [N2].
• The company acquired a 177,000 square foot operating property in Jacksonville, FL for $38.13 million and sold a 398,000 square foot property in Fresno for $37 million, recognizing a gain of $24.9 million [N2].
• EastGroup raised $69.3 million net proceeds from sales of 365,620 common shares under its ATM offering program and entered into forward equity sale agreements for 252,136 shares during Q1 2026 [N3].

EastGroup Properties benefits from strong demand for industrial distribution space in key U.S. growth markets, supporting high occupancy and rental rate increases, as evidenced by a 36.8% average rental rate increase on new and renewal leases in Q1 2026. The company’s disciplined development and value-add pipeline, combined with strategic acquisitions, contribute to portfolio expansion and income growth. Its robust liquidity position and upgraded credit rating provide financial strength to capitalize on market opportunities. The company’s lease structures that pass through operating expenses and include scheduled rent escalations help protect margins against inflation. Effective risk management and governance frameworks, including cybersecurity oversight, support operational resilience.

Risks to EastGroup Properties include potential adverse impacts from inflation and rising interest rates, which could increase operating and financing costs that are not fully passed through to tenants. Economic uncertainty, geopolitical conflicts, and supply chain disruptions may affect tenant demand and leasing activity. The company’s exposure to lease expirations, although managed, could lead to occupancy or rental rate pressures if market conditions deteriorate. Development and acquisition activities carry execution risks, including leasing risk for projects under construction. Changes in regulatory or economic environments could also impact operations. Cybersecurity threats pose operational risks despite governance controls.

EastGroup Properties’ moat is supported by its focus on industrial distribution properties located in supply-constrained, high-growth markets near major transportation infrastructure. This geographic and asset specialization creates barriers to entry and supports pricing power through high occupancy and rental rate growth. The company’s portfolio scale, with over 65 million square feet across 12 states, and its active development and acquisition programs further enhance its competitive position. Additionally, EastGroup’s lease structures, which pass through operating expenses to tenants and include scheduled rent increases, help mitigate inflationary pressures and maintain stable cash flows. The company’s investment-grade credit rating and access to capital markets provide financial flexibility to support growth and portfolio optimization.

• Inflation and Interest Rate Risk: Increased inflation may raise general and administrative expenses and interest rates may increase financing costs, which are not fully passed through to tenants, potentially affecting profitability.
• Economic and Geopolitical Uncertainty: Factors such as tariffs, supply chain disruptions, and geopolitical conflicts may adversely impact tenant demand and leasing activity in the future.
• Lease Expiration and Occupancy Risk: Leases expiring on a significant portion of the portfolio could lead to occupancy or rental rate declines if market conditions weaken.
• Development and Acquisition Execution Risk: Risks exist related to leasing and completing development projects and integrating acquisitions effectively.
• Cybersecurity Risk: Material failures or cyber-attacks on information technology systems could harm business operations despite established governance and oversight.

• EastGroup Properties Inc. is a real estate investment trust focused on developing, acquiring, and operating industrial distribution facilities primarily in the 20,000 to 100,000 square foot range.
• The company’s properties are clustered around major transportation features in supply-constrained submarkets within high-growth markets.
• Core geographic markets include Texas, Florida, California, Arizona, and North Carolina.
• As of March 31, 2026, EastGroup owned 556 industrial properties across 12 states, totaling approximately 65.4 million square feet.
• The portfolio includes 516 business distribution properties (59.5 million sq ft), 19 bulk distribution properties (5.1 million sq ft), and 21 business service properties (0.8 million sq ft).
• During Q1 2026, EastGroup executed new and renewal leases on 2,048,000 square feet, representing 3.3% of the operating portfolio, with average rental rates increasing by 36.8% compared to prior leases on the same spaces.
• The operating portfolio was 96.5% leased and 95.9% occupied as of March 31, 2026, with leases expiring on 8.2% of the portfolio’s annualized base rent during the remainder of 2026, reduced to 7.1% as of April 21, 2026.
• EastGroup’s development and value-add program as of March 31, 2026, consisted of 19 projects totaling 3.5 million square feet in 13 markets, with a projected total investment of $508.1 million and $186.8 million remaining to be invested.
• During Q1 2026, the company began construction on four development projects totaling 586,000 square feet and transferred two projects (562,000 square feet) from development to operating properties.
• EastGroup acquired an operating property in Jacksonville, FL, of 177,000 square feet for $38.13 million during Q1 2026 and sold a 398,000 square foot operating property in Fresno for $37 million, recognizing a gain of $24.9 million.
• The company’s primary revenue source is rental income, with most leases requiring tenants to pay pro rata shares of operating expenses, reducing exposure to inflation-driven cost increases.
• Net income attributable to common stockholders for Q1 2026 was $94.6 million ($1.77 per diluted share), a 55.3% increase from $59.4 million ($1.14 per diluted share) in Q1 2025.
• Funds from operations (FFO) attributable to common stockholders for Q1 2026 were $125.3 million ($2.34 per diluted share), up from $112.0 million ($2.15 per diluted share) in Q1 2025.
• Property net operating income (PNOI) for Q1 2026 was $140.0 million, an 11.0% increase from $126.2 million in Q1 2025, driven by same property operations, development/value-add properties, and acquisitions.
• Same property PNOI excluding income from lease terminations increased 7.5% for Q1 2026 compared to Q1 2025.
• The company’s total assets were $5.49 billion as of March 31, 2026, with total liabilities of $1.91 billion and total equity of $3.58 billion.
• EastGroup’s liquidity as of March 31, 2026, included $31.4 million in cash and cash equivalents and $674.7 million available on unsecured credit facilities, totaling approximately $755.5 million in immediate liquidity.
• During Q1 2026, EastGroup raised $69.3 million net proceeds from sales of 365,620 common shares under its at-the-market (ATM) offering program and entered into forward equity sale agreements for 252,136 shares.
• The company’s unsecured bank credit facilities total $675 million, with no outstanding balance on these facilities as of March 31, 2026.
• Moody’s upgraded EastGroup’s issuer rating to Baa1 with a stable outlook in February 2026, reflecting credit quality.
• Interest expense increased to $9.08 million in Q1 2026 from $8.03 million in Q1 2025, partly due to new unsecured debt obtained in 2025.
• EastGroup’s Board of Directors oversees risk management, including cybersecurity risks, with a Cyber Risk Committee and Audit Committee providing governance and periodic reporting.
• The company monitors inflation, interest rates, geopolitical risks, and economic uncertainty as factors that may impact future operations.
• EastGroup’s leases generally include scheduled rent increases and expense reimbursements, mitigating some inflationary and cost risks.