EastGroup Properties (EGP) Investor presentation summary

Company overview and strategy

• Focuses on industrial real estate in high-growth U.S. markets, especially Florida, Texas, Arizona, California, and North Carolina, with a portfolio of 65.5 million square feet including development projects and value-add acquisitions.

• Emphasizes multi-tenant, infill, shallow bay industrial properties in supply-constrained submarkets, targeting location-sensitive customers needing 20,000–100,000 square feet.

• Growth strategy includes targeted development, acquisitions, capital recycling, and internal growth, with a demonstrated track record of value creation and risk management.

• Portfolio is diversified geographically, with Texas, Florida, and California representing the largest shares of annualized base rent.

• Maintains a diversified tenant base, with the top 10 customers accounting for only 6.7% of annualized base rent as of March 31, 2026.

Market trends and operating environment

• Operates in markets with GDP growth rates 37% higher than the U.S. average, providing economic cycle diversification.

• Industrial vacancy rates for small-bay properties remain lower than big-box, with the gap widening to nearly double the historical average.

• Development pipeline is stabilizing at levels similar to 2018/2019, with small-bay product representing about a fifth of the total pipeline.

• Preleasing rates for under-construction product reached 37.6%, the highest since 2021.

• The sub-100,000 square foot segment is the largest by inventory share and maintains the lowest vacancy rates in the industrial sector.

Financial performance and capital management

• Achieved a 9.2% increase in same property results (cash basis) and an 8.8% increase in FFO per diluted share for the quarter ended March 31, 2026.

• Portfolio was 96.5% leased as of March 31, 2026.

• Fixed rate debt totals $1.6 billion at an average rate of 3.43%, with shareholders' market equity at $9.9 billion.

• Declared its 185th consecutive quarterly cash dividend ($1.55/share), with increases or maintenance for 33 consecutive years and increases in 30 of the past 33 years.

• Dividend FFO payout ratio has remained in the 57–67% range over the past decade.