EastGroup Properties (EGP) posted earnings growth of 6.8% in the last year, coming in below its 14.3% per year average over the past five years. Net profit margins slipped to 35.7% from 37% in the previous year, while the shares are trading at $177.2, well below an estimated fair value of $230.46 by discounted cash flow. With earnings growth projected at 10.3% annually and revenue expected to rise 9.7% per year, investors will note the company’s continued profitability and attractive dividend, but may also weigh its premium valuation against peers and recent moderation in profit growth.
See our full analysis for EastGroup Properties.
The next section puts these results head-to-head with the most widely followed narratives for EastGroup Properties, highlighting where the numbers confirm or challenge investor sentiment.
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Net profit margin slipped to 35.7%, down from 37% last year, but analysts project an increase to 36.9% over the next three years as revenue and earnings scale up.
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Analysts’ consensus view highlights that persistent demand for logistics space in Sunbelt markets, coupled with limited new supply, underpins continued pricing power and potential for further margin recovery.
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Margin expansion is expected to benefit from structural migration to high-growth states. This supports net operating income stability even as certain regional assets face headwinds.
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Consensus narrative notes that the company’s focus on infill, last-mile logistics keeps occupancy high and reinforces robust rental growth that earns back some margin lost in recent periods.
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To see how both margin resilience and local headwinds shape analyst views, see where the consensus stands for EastGroup Properties. 📊 Read the full EastGroup Properties Consensus Narrative.
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EastGroup trades at a price-to-earnings ratio of 38x, notably higher than the sector average of 16.7x and the peer average of 29.2x, despite recent moderation in earnings growth.
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Analysts’ consensus view contends that while pricing could appear stretched, the company’s robust balance sheet and land bank provide the opportunity to pursue new developments if capital access improves.
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Consensus expects future PE to rise further, reaching 45.3x on projected 2028 figures. This remains well above the US Industrial REITs industry and validates a premium only if multi-year growth is maintained.
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Still, valuation upside rests on EastGroup sustaining high occupancy and rental spreads amid forecasts for share count dilution and evolving capital markets.
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