EastGroup Properties Q4: Another Reason To Own This Industrial REIT

2025-03-20 09:22:42 ET

Summary

• EastGroup Properties, Inc. is a high performing industrial REIT with proven growth strategy.
• Q4 2024 results showed growth in FFO and acquisitions, with a 97.1% leased portfolio, indicating strong future income and dividend potential.
• EGP has a proven strategy, outperforming the S&P 500 Index over 10 years, with a current 3.12% yield and a history of rising dividends.
• In this article, I explain how EGP has developed a winning strategy for growth making the REIT a long term buy and hold for both income and capital appreciation.

I rate EastGroup Properties, Inc. (NYSE: EGP ) a Hold, for long-term investors interested in real estate investment trusts ((REITs)). Since the last time I covered the REIT , it has increased +15.3%, suggesting it is priced at the premium end of valuations. EGP just posted their Fourth quarter results, which did not disappoint. This is a very consistent performer, in my view, that held for the long term has the ability to outperform not only real estate sector benchmarks, but also equity benchmarks such as the S&P 500 Index (SP500), with dividends reinvested. EGP’s well developed strategy consists of annual increases in property square footage, as well as increases in the dividend payout long term....

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