Overview

• U.S. industrial REIT's Q1 net income per share rose, driven by property sale gains

• FFO per share excluding certain gains increased 8.5% yr/yr in Q1

• Company guides 2026 FFO per share to $9.46-$9.66

Outlook

• EastGroup sees 2026 EPS between $5.66 and $5.86 and FFO per share between $9.46 and $9.66

• Company raises 2026 FFO per share guidance to $9.46-$9.66 from $9.40-$9.60 previously

• EastGroup expects 2026 same property NOI growth of 5.7%-6.7% on a cash basis

Result Drivers

• SAME PROPERTY GROWTH - Same property net operating income excluding lease terminations rose 7.5% on a straight-line basis and 9.2% on a cash basis yr/yr, reflecting higher rents and stable occupancy

• RENTAL RATE INCREASES - Rental rates on new and renewal leases increased an average of 36.8% on a straight-line basis

• NEW DEVELOPMENTS AND ACQUISITIONS - PNOI growth was also driven by newly developed and value-add properties and 2025-2026 acquisitions

Company press release: ID:nPn36LHm8a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$1.77
Q1 Net Income		$94.62 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $210.00, about 4.1% above its April 21 closing price of $201.79

• The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 34 three months ago

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