Eastgroup Properties, Inc. · NYSE:EGP
Eastgroup Properties — Q2 2025 Earnings Presentation
39 slides from Eastgroup Properties's earnings presentation, Jul 24, 2025
Slide 1: July 2025
July 2025 Basswood 35 Fort Worth, TX
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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,”
Slide 3: Company Profile
Company Profile EastGroup Properties, Inc. (NYSE: EGP), 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 St
Slide 4: Company Highlights
Company Highlights • Multi-Tenant Urban Distribution Property Focus • High-Growth Markets • Four-Pronged Growth Strategy • Demonstrated Track Record Riverside 1 & 2 Atlanta, GA 4
Slide 5: Industrial Real Estate
Industrial Real Estate • Stability • Limited Capital Requirements • Lack of Obsolescence • Flexibility • Location Mesa Gateway Phoenix, AZ 5
Slide 6: Geographic Focus
Geographic Focus • High-Growth Markets • Emphasis in Local Economies Growing Faster than the U.S. Economy • Economic Cycle Diversification Sacramento San Francisco Fresno Denver Las Vegas Raleigh LOS ANGELES Charlotte Nashville San Diego Greenville JACKSON Phoenix ATLANTA Tucson DALLAS/FT. WORTH El
Slide 7: 5 Year GDP Growth (2020-2024): U.S. Average versus EGP Markets
5 Year GDP Growth (2020-2024) U.S. Average versus EGP Market Weighted Average 20% 19% 18% 16% 14% 12% 12% 10% 8% 6% 4% 2% 0% US EGP EGP Growth Rate is 58% Greater than the U.S. Average Source: AVANT by Avison Young; 7 Oxford Economics
Slide 8: Portfolio by State
Portfolio by State (Annualized base rent, quarter ended 6/30/25) • Texas 35% • Florida 25% • California 16% • Arizona 8% • North Carolina 5% • Other 11% Northeast Trade Center San Antonio, TX 8
Slide 9: Property Focus
Property Focus • 63.9 Million Square Feet Under Ownership • Multi-tenant • Infill Sites/Supply Constrained Submarkets • Last Mile E-commerce Locations • Shallow Bay Industrial • Competitive Protection Through Location Gateway Commerce Park Miami, FL 9
Slide 10: Vacancy & Availability (in %)
Shallow Bay Historically Lower Vacancy & Availability Rates 16% 14% 13.9% 12% 11.3% Vacancy & Availability (in %) 10% 9.0% 8% 6.9% 6% 4% 2% 0% Shallow Bay – Buildings from 20K to 140K SF Larger Box – Buildings 140K SF and above 10 Source: AVANT by Avison Young; CoStar
Slide 11: Total Under Construction (in m sf)
Shallow Bay Development as a Percent of Existing Stock is Historically Lower 400m sf 12% 10.5% 350m sf Total Under Construction (in m sf) 10% 300m sf 8% 250m sf 200m sf 6% 150m sf 4% 3.8% 100m sf 1.7% 2% 50m sf 1.1% 0m sf 0% Shallow Bay – Buildings from 20K to 140K SF Larger Box – Buildings 140K SF
Slide 12: Inventory Square Footage Growth Since 2020
Inventory Square Footage Growth Since 2020 40.0% 35.3% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 7.1% 5.0% 0.0% 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Shallow Bay Larger
Slide 13: Improved Weather Leads to a Pickup in Starts in Q2
Improved Weather Leads to a Pickup in Starts in Q2 117.1 113.5 110.5 99.8 100.2 94.5 85.8 67.2 68.2 65.9 51.2 47.8 46.3 45.6 43.3 36.1 36.7 38.1 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Constructio
Slide 14: Customer Focus
Customer Focus • Location-Sensitive Customers • Compete on Location Not Rent • Users in the Broadest Portion of the Market – 20,000 to 100,000 Square Feet • Diversified Tenant Base – Top 10 Customers Represent Only 6.9% of Annualized Base Rent as of June 30, 2025 • 75% of Revenue is Generated from T
Slide 15: The State of the U.S. Industrial & Logistics Market
The State of the U.S. Industrial & Logistics Market U.S. Industrial Vacancy Rate by Size Segment 10% 9.8% 9.5% 9.5% 8.4% 8% 7.7% 7.1% 6.6% 6% 5.7% 4.7% 4.1% 4% 3.3% 2.1%2.3% 2% 1.7% 0% Under 25K SF 25-100K SF 100-300K SF 300-700K SF 700-1,200K SF 1,200K+ SF Total SF Q2 2024 Vacancy Rate Q2 2025 Vaca
Slide 16: Property Selection
Property Selection • Specifications Keyed to Local Sub-Markets • Maximum Customer Flexibility • Clustering of Properties Around Transportation Features in High Growth Areas Skyway Logistics Park Charlotte, NC 16 16
Slide 17: Growth Strategy
Growth Strategy • Targeted Development • Acquisitions – Operating, Value-Add, Redevelopment • Recycling of Capital • Internal Growth Rocky Point Distribution Center San Diego, CA 17
Slide 18: Targeted Development
Targeted Development Development in Markets Where EastGroup Already Has a Presence Benefits: • We Build Park Settings • Creates Sense of Place • Properties Designed to EGP Specifications for Functionality and Sustainability • Increased Returns with Lower Risks • Meet Customer Needs • Creates Long Te
Slide 19: Steele Creek Commerce Park, Charlotte, NC
Steele Creek Commerce Park Charlotte, NC 19
Slide 20: Sky Harbor Business Park, Phoenix, AZ
Sky Harbor Business Park Phoenix, AZ 20
Slide 21: Southwest Commerce Center, Las Vegas, NV
Southwest Orlando, FL Commerce Center Las Vegas, NV 21
Slide 22: Eisenhauer Point, San Antonio, TX
Eisenhauer Point 22 San Antonio, TX 22
Slide 23: Development History
Development History (Through 6/30/25) • 50% of Portfolio • 271 Properties – Since 1996 • 31.7 Million Square Feet • $3.3 Billion Investment Gilbert Crossroads Phoenix, AZ 23 23
Slide 24: Value-Add
Value-Add In Markets Where EastGroup Already Has a Presence Benefits: • In-fill locations • Higher return than market value for calculated leasing risk • Creates long term value for shareholders Broadmoor Commerce Park Atlanta, GA 24
Slide 25: Access Point, Greenville, SC
Access Point Greenville, SC 25
Slide 26: Current Development and Value-Add Program
Current Development and Value-Add Program (As of 6/30/25) • 18 Projects Located in 13 Markets • 3.7 Million Square Feet • Projected Total Costs of $531 Million Country Club Commerce Center Tucson, AZ 26
Slide 27: Recycling of Capital
Recycling of Capital • Sales of Assets with Lower Upside Potential • Reinvestment of Capital into Higher-Growth Opportunities Kyrene 202 Business Park Phoenix, AZ 27
Slide 28: Operating Property Acquisitions
Operating Property Acquisitions • 2025 to-date - $61 Million - 318,000 Square Feet in 1 Market • 2024 - $390 Million - 2,474,000 Square Feet in 6 Market • 2023 - $165 Million - 987,000 Square Feet in 4 Markets • 2022 - $359 Million - 1,706,000 Square Feet in 2 Markets • 2021 - $108 Million - 760,000
Slide 29: Operating Results – Three Months Ended 6/30/25
Operating Results – Three Months Ended 6/30/25 • Increase in Same Property Results (Cash Basis): 6.4% • FFO per Diluted Share Increase: 5.7% • Leased at June 30, 2025: 97.1% Steele Creek Commerce Park Charlotte, NC 29
Slide 30: Capitalization
Capitalization (as of 6/30/25) Fixed Rate Debt $1.5 Billion, Average Rate of 3.38% 14% 86% Shareholders’ Market Equity $8.82 Billion (common @ $167.12 per share) 30
Slide 31: Dividend Growth
Dividend Growth (Through 6/30/25) • Declared 182nd Consecutive Quarterly Cash Dividend – $1.40 per Share • Increased or Maintained Dividend for 32 Consecutive Years • Dividend Has Increased 29 of the Past 32 Years – Increased Each of the Last 13 Years Horizon Commerce Park Orlando, FL 31
Slide 32: Dividend FFO Payout Ratio
Dividend FFO Payout Ratio 80% 70% 67% 64% 64% 65% 64% 65% 63% 61% 59% 58% 59% 57% 59% 60% 50% 40% 30% 20% 10% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 2Q25 Dividend Payout 32
Slide 33: Our Priorities
Our Priorities EastGroup operates on the premise that good corporate governance is fundamental to our business and core values. We believe our corporate governance policies and practices are well aligned with the interests of stakeholders. Honesty and integrity of the Company’s management and Board
Slide 34: Our Culture
Our Culture EastGroup is recognized in the marketplace for its unique culture — one that is family-oriented, employee-focused and promotes an entrepreneurial spirit. Our do-the-right-thing approach—one that relies on accountability, respect and trust—has been the foundation of our success. EastGroup
Slide 35: Human Capital Matters
Human Capital Matters We believe our culture supports our employees and creates a positive, professional environment that encourages longevity for our team members. EastGroup provides generous employee benefits, including a robust 401(k) matching program, an employee equity award program, paid time
Slide 36: Environmental Stewardship
Environmental Stewardship EastGroup places heavy focus on incorporating sustainable design features in our development properties, allowing us to integrate energy efficient systems and eco-friendly design into our buildings and enabling our tenants to benefit from operating within a highly efficient
Slide 37: Environmental Stewardship
Environmental Stewardship Several of our properties and property managers have been recognized by the Building Owners and Managers Association (“BOMA”) in various award categories. In 2025, our Gateway Commerce Park property was named The Outstanding Building of the Year (“TOBY”) in the industrial o
Slide 38: EastGroup Properties
EastGroup Properties Things to Remember: • Track Record • Product Type • Growth Markets • Value Creation • Financial Strength • Dividend History 38 38
Slide 39: Resources
Resources www.EastGroup.net Tel: 601-354-3555 investor@eastgroup.net 400 W. Parkway Place Suite 100 Ridgeland, MS 39157 39 39