JACKSON, Miss. – EastGroup Properties, Inc. (NYSE: EGP), a REIT with a market capitalization of nearly $8 billion, has reported significant activity in its industrial real estate portfolio, with recent acquisitions in Texas and Arizona and substantial equity sales. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, reflecting strong operational performance and strategic growth initiatives.
In November, EastGroup expanded its presence near the Dallas-Fort Worth Airport with the purchase of DFW Global Logistics Centre 5-8, comprising four multi-tenant business distribution buildings totaling 492,000 square feet, for approximately $76 million. This acquisition brings the company's total ownership in the DFW Airport submarket to about 2.68 million square feet with a 99.3% lease rate. The company's aggressive expansion aligns with its impressive 14.75% revenue growth over the last twelve months.
The company's growth continued in December with the acquisition of Akimel Gateway in Southeast Phoenix, which includes four industrial buildings totaling 519,000 square feet, for approximately $83 million. Developed in 2022, the property is fully leased to four tenants, increasing EastGroup's operating properties in Phoenix to approximately 3.52 million square feet with a 98.6% lease rate.
Marshall Loeb, CEO of EastGroup, expressed satisfaction with the expansion, noting the strategic clustering of assets to support tenant growth needs.
EastGroup also disclosed its equity sales performance for the fourth quarter of 2024 to date. The company sold 914,780 shares of common stock at an average price of $174.23 per share, yielding net proceeds of about $158 million. Additionally, forward equity sale agreements were entered into for approximately 690,953 shares at an initial weighted average forward price of $175.05 per share, equating to roughly $121 million in gross sales proceeds. Settlements of outstanding forward equity sale agreements resulted in the issuance of 1.7 million shares for net proceeds of approximately $305.5 million.
EastGroup, a self-administered equity real estate investment trust, focuses on developing, acquiring, and operating industrial properties in Sunbelt markets across the United States. The company is a member of the S&P Mid-Cap 400 and Russell 2000 Indexes and aims to maximize shareholder value by providing quality business distribution space.
This report is based on a press release statement issued by EastGroup Properties, Inc.
In other recent news, EastGroup Properties, a real estate investment trust, has been upgraded to a Strong Buy by Raymond (NS:RYMD) James, citing an attractive valuation and a promising outlook for the company. This comes as EastGroup Properties reported a 9.2% increase in funds from operations per share in Q3 2024, with a strong occupancy rate of 96.5%. The company also launched a sales agency financing agreement with a potential to sell up to $1 billion worth of shares, with proceeds intended for debt repayment and property acquisition or development.
These recent developments underscore EastGroup's strategic positioning within the industrial real estate market. Raymond James' upgrade reflects confidence in the company's potential for sustained growth and resilience against industry headwinds. The company is also set to acquire Hays (LON:HAYS) Commerce Center in South Austin and is considering additional acquisitions.
EastGroup Properties is exploring potential data center asset conversions in key markets while maintaining a focus on industrial development. The company's financial stability and capacity for external growth activities are seen as positive indicators. In terms of future expectations, EastGroup Properties expects FFO per share of $2.13 to $2.17 for Q4 and $8.33 to $8.37 for the full year.
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