EastGroup Properties Announces Recent Business Activity and Participation in Upcoming Conferences
EastGroup reports high leasing spreads, expands its industrial development pipeline, and adds forward equity capacity for potential future capital needs.
Rhea-AI Summary
EastGroup Properties (EGP) reported strong third‑quarter 2026 operating and investment activity as of August 31, 2026, highlighted by high occupancy and active development and acquisition pipelines.
The portfolio was 97.1% leased and 96.1% occupied, with 1,944,000 square feet of new and renewal leases signed in July–August, achieving average rental rate increases of 38.9% on a straight‑line basis and 23.1% on a cash basis. Eight leases totaling about 280,000 square feet were executed on development and first‑generation assets. EastGroup started three development projects and one redevelopment totaling 772,000 square feet with projected costs of about $119 million, including a 100% pre‑leased build‑to‑suit in San Diego, and transferred a fully leased 113,000 square foot Orlando project to its operating portfolio.
The company closed the $83 million acquisition of Harris Ridge Business Center in Austin (388,000 square feet, 95% leased), acquired 70 acres of land near Dallas for about $38 million to expand its Frisco Park 121 plan to 11 buildings totaling ~1,000,000 square feet, and bought 30 acres near Tampa for about $12 million to grow Crossroads Logistics Park to five buildings totaling ~850,000 square feet. During the quarter to date, EastGroup entered forward equity sale agreements for 532,460 shares at an initial weighted average forward price of $203.96 per share, representing potential gross proceeds of about $108.6 million, and had 1,572,917 shares under forward equity agreements outstanding with possible gross proceeds of roughly $318.2 million based on an initial weighted average forward price of $202.30. Management plans to participate in three real estate conferences in September 2026.
Positive
- Portfolio 97.1% leased and 96.1% occupied as of August 31, 2026
- New and renewal leases on 1,944,000 sq. ft. with rent up 38.9% straight-line and 23.1% cash
- New development and redevelopment starts of 772,000 sq. ft. with projected costs of about $119 million
- Acquisition of Harris Ridge Business Center for about $83 million, adding 388,000 sq. ft. that is 95% leased
- Dallas land purchase for about $38 million expands Frisco Park 121 plan to ~1,000,000 sq. ft. across 11 buildings
- Tampa land purchase for about $12 million grows Crossroads Logistics Park plan to ~850,000 sq. ft. across five buildings
- Forward equity agreements provide potential gross proceeds of about $108.6 million this quarter and a total of about $318.2 million outstanding
Negative
- Forward equity sale agreements cover up to 1,572,917 shares of common stock available for future settlement
News Explained
The forward equity agreements did not provide
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Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We are pleased with the strength of our portfolio outperforming our expectations quarter to date. The leasing velocity we enjoyed earlier in the year continues and is reflected in our results. We look forward to seeing many of you at the upcoming conferences. And for any we may miss, we are available for your questions."
As of August 31, 2026, EastGroup's portfolio was
During the third quarter of 2026 to date, the Company executed eight leases on active development and first generation properties totaling approximately 280,000 square feet.
The Company began construction of three development projects and one redevelopment project totaling 772,000 square feet with projected total costs of approximately
The Company transferred a
As previously announced and since EastGroup's earnings release dated July 22, 2026, the Company closed on the acquisition of Harris Ridge Business Center in Austin for approximately
In August, the Company acquired 70 acres of development land in the
Also, in September, the Company acquired 30 acres of development land, known as Crossroads Logistics Park Phase II Land, for approximately
During the third quarter of 2026 to date, EastGroup entered into forward equity sale agreements with respect to 532,460 shares of common stock with an initial weighted average forward price of
Management is scheduled to participate in three upcoming conferences:
- 18th Annual Evercore Real Estate Conference scheduled for Wednesday, September 9, 2026 through Thursday, September 10, 2026;
- Bank of America Securities Global Real Estate Conference scheduled for Wednesday, September 16, 2026. Management is scheduled to present at 4:30 p.m. Eastern Time. The presentation will be broadcast live and is accessible through a registration link on the Company's website at www.eastgroup.net. An online replay of the webcast will be available at the same location; and
- Mizuho REIT Conference scheduled for Tuesday, September 29, 2026.
During the conferences, EastGroup executives may discuss the Company's transaction activity, leasing environment, market trends and conditions, financial matters and other business that may be affecting the Company. Presentation materials that may be referenced during the EastGroup presentation are available on the "Investor Relations" page of the Company's website.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 66.8 million square feet. EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
Forward-Looking Information
The statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "expects," "anticipates," "believes," "targets," "intends," "should," "estimates," "could," "continue," "assume," "projects," "goals," "plans" or variations of such words and similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: international, national, regional and local economic conditions; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing uncertainty around interest rates, tariffs and general economic conditions; disruption in supply and delivery chains; increased construction and development costs, including as a result of tariffs or the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust ("REIT") or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes, or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms; financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company's most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company's periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: investor@eastgroup.net
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SOURCE EastGroup Properties