EastGroup Properties, Inc. (NYSE:EGP) Raises Dividend to $1.75 Per Share

Key Points

• EastGroup Properties raised its quarterly dividend 12.9% to $1.75 per share, equivalent to $7.00 annually and a 3.5% yield. The dividend is payable October 15 to shareholders of record September 30.
• The REIT’s current payout ratio is elevated at 117.6%, meaning earnings do not fully cover the dividend; however, analysts expect next year’s earnings to support a lower projected payout ratio of 60.4%.
• EastGroup recently reported adjusted earnings of $1.40 per share, beating estimates of $1.31, while revenue rose 9% year over year to $193.33 million. Institutional investors own approximately 92.14% of the company’s stock.

EastGroup Properties, Inc. (NYSE:EGP - Get Free Report) declared a quarterly dividend on Thursday, August 27th. Stockholders of record on Wednesday, September 30th will be given a dividend of 1.75 per share by the real estate investment trust on Thursday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a 12.9% increase from EastGroup Properties's previous quarterly dividend of $1.55.

EastGroup Properties has increased its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 4 consecutive years. EastGroup Properties has a payout ratio of 117.6% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect EastGroup Properties to earn $10.26 per share next year, which means the company should continue to be able to cover its $6.20 annual dividend with an expected future payout ratio of 60.4%.

EastGroup Properties Stock Performance

NYSE EGP opened at $200.03 on Friday. The firm has a market capitalization of $10.76 billion, a P/E ratio of 35.09, a P/E/G ratio of 2.92 and a beta of 1.02. EastGroup Properties has a 1-year low of $163.10 and a 1-year high of $226.71. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.16 and a quick ratio of 0.16. The business's 50-day simple moving average is $207.62 and its 200-day simple moving average is $199.85.

EastGroup Properties (NYSE:EGP - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The real estate investment trust reported $1.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.31 by $0.09. EastGroup Properties had a net margin of 40.47% and a return on equity of 8.61%. The firm had revenue of $193.33 million during the quarter, compared to the consensus estimate of $193.61 million. During the same quarter in the prior year, the company earned $2.21 EPS. The company's revenue was up 9.0% on a year-over-year basis. EastGroup Properties has set its FY 2026 guidance at 9.520-9.660 EPS. Equities analysts predict that EastGroup Properties will post 9.6 EPS for the current year.

Insider Transactions at EastGroup Properties

In other EastGroup Properties news, Director David Michael Fields sold 504 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $195.77, for a total value of $98,668.08. Following the completion of the sale, the director owned 3,531 shares of the company's stock, valued at $691,263.87. This trade represents a 12.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Cbre Investment Management Listed Real Assets LLC lifted its stake in shares of EastGroup Properties by 5.1% in the fourth quarter. Cbre Investment Management Listed Real Assets LLC now owns 711,109 shares of the real estate investment trust's stock worth $126,677,000 after acquiring an additional 34,515 shares in the last quarter. Corient Private Wealth LLC boosted its holdings in EastGroup Properties by 22.1% in the fourth quarter. Corient Private Wealth LLC now owns 29,516 shares of the real estate investment trust's stock valued at $5,260,000 after purchasing an additional 5,341 shares during the last quarter. California State Teachers Retirement System grew its stake in EastGroup Properties by 22.7% during the 1st quarter. California State Teachers Retirement System now owns 62,095 shares of the real estate investment trust's stock valued at $11,493,000 after purchasing an additional 11,504 shares in the last quarter. Heartland Advisors Inc. grew its stake in EastGroup Properties by 13.7% during the 4th quarter. Heartland Advisors Inc. now owns 42,705 shares of the real estate investment trust's stock valued at $7,607,000 after purchasing an additional 5,160 shares in the last quarter. Finally, SummitTX Capital L.P. increased its holdings in EastGroup Properties by 28.3% during the 1st quarter. SummitTX Capital L.P. now owns 21,577 shares of the real estate investment trust's stock worth $3,994,000 after purchasing an additional 4,758 shares during the last quarter. 92.14% of the stock is owned by institutional investors and hedge funds.

EastGroup Properties Company Profile

EastGroup Properties, Inc NYSE: EGP is a real estate investment trust specializing in the ownership, development and management of industrial properties. Focused primarily on distribution-oriented facilities, the company's portfolio consists of modern warehouse and light manufacturing buildings located in high-growth Sunbelt markets. EastGroup concentrates on delivering strategic logistics solutions to customers requiring proximity to transportation hubs and major population centers across the southern United States.

Since its founding in 1969, EastGroup has pursued a disciplined growth strategy that combines property development, targeted acquisitions and hands-on asset management.

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