EastGroup Properties, Inc. (NYSE: EGP) closed a $38.2 million acquisition of Legend Point in Jacksonville, Florida, adding 177,000 sq ft of fully leased shallow‑bay distribution space to its portfolio. The transaction expands the company’s presence in a high‑growth Sunbelt market and adds a 20,000–100,000‑sq‑ft asset that is fully leased, reinforcing EastGroup’s focus on high‑occupancy, supply‑constrained facilities.
In the same transaction, EastGroup sold a Fresno, California portfolio of six buildings totaling 398,000 sq ft for $37 million, realizing a $25 million gain. The Fresno assets were classified as non‑core, and the sale frees capital that can be deployed into higher‑growth markets or returned to shareholders.
The combined effect of the acquisition and disposition strengthens EastGroup’s balance sheet, increases liquidity, and reinforces its disciplined asset‑allocation strategy. The company’s debt‑to‑market‑cap ratio was 14.7% at December 31 2025, and the cash generated from the Fresno sale will support future development in Sunbelt markets while maintaining a strong dividend policy.
EastGroup’s Q4 2025 results, released February 4 2026, showed diluted EPS of $1.27 versus a consensus of $1.30, a miss of $0.03, while revenue of $187.5 million beat expectations of $185.29 million. The company guided for 2026 FFO of $9.40–$9.60 per share, up from the prior year, and for Q1 2026 EPS of $2.250–$2.330, reflecting confidence in continued demand. CEO Marshall Loeb said, "We are pleased to see the occupancy and leasing trends we experienced late last year continuing thus far into 2026. Occupancy is trending in line to slightly ahead of our forecast." President Reid Dunbar added, "As I transition into my new role, I've had the opportunity to spend time touring EastGroup's markets and I'm encouraged by what I’ve seen across our portfolio and development pipeline."
The transaction and strong earnings outlook were well received by the market. Moody’s upgraded EastGroup’s issuer rating to Baa1 with a stable outlook, and the company’s 96.6% leased and 96.0% occupied rates as of February 25 2026 underscore its robust operational performance.
Overall, the acquisition of Legend Point and the sale of the Fresno portfolio represent a strategic portfolio realignment that enhances EastGroup’s focus on high‑growth, shallow‑bay markets while improving liquidity and supporting future expansion.
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