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EastGroup (EGP) Increases Dividend by 13.6%: Worth a Look?
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EastGroup Properties (EGP - Free Report) announced a hike of 13.6% in its quarterly dividend, raising it to $1.25 per share from $1.10. It will be paid out on Oct 14 to shareholders on record as of Sep 30, 2022.
Based on the increase, the annual dividend rate now comes to $5.00 a share, resulting in an annualized yield of 2.97%, considering EastGroup’s closing price of $168.43 on Aug 26.
Solid dividend payouts remain the biggest enticements for REIT investors, and quite encouragingly, EastGroup Properties is committed to boosting shareholder wealth. The company has hiked its dividend in each of the last 11 years, the recent one marking its 171st consecutive quarterly distribution to shareholders. Further, EGP increased or maintained its dividend for 30 consecutive years and hiked it for 27 years during this period.
The stock looks attractive based on the regular rise in dividend income amid a challenging environment. Now let’s check out EastGroup Properties’ fundamentals and financial performance before taking any investment decision.
This industrial REIT focuses on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States. With its focus on the ownership of premier distribution facilities usually clustered near major transportation features in supply-constrained submarkets, EastGroup has a well-leased industrial portfolio.
The company’s operating portfolio was 99.1% leased and 98.5% occupied as of Jun 30, 2022. Also, the average occupancy of the operating portfolio was 98.1% for the second quarter of 2022.
EastGroup has a decent performance, beating the Zacks Consensus Estimate in all the trailing four quarters, on a funds from operations (FFO) per share basis, the average surprise being 3.19%. Moreover, EastGroup Properties’ return on equity (“ROE”) is 12.77%, significantly higher than the industry’s ROE of 3.76%.
Over the next five years, the company’s FFO per share is projected to grow at a rate of 7.9%. The favorable estimate revision for the ongoing year reflects an upbeat outlook for the company. It has moved 1.02% upward in the past month to $6.92, indicating 13.63% year-over-year growth.
This industrial REIT churns cash flow of $7.00 per share compared to the industry average of $1.77. Its projected sales growth of 18.41% is higher than the industry average of 8.76%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
Apart from the fast adoption of e-commerce, industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including EastGroup, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
Particularly for EastGroup, we believe such deployment activity highlights the company’s operational strength and commitment to rewarding its shareholders handsomely. The latest hike reflects the company’s ability to generate solid cash flow growth through its operating platform and high-quality portfolio.
Investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on. Such moves will boost investors’ confidence in the stock.
The company’s shares have rallied 9.2%, outperforming the industry’s growth of 5.1%, so far in the quarter.
Prologis carries a Zacks Rank of 2 at present. Prologis’ long-term growth rate is projected at 9.8%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations per share has been revised marginally upward in the past two months.
Rexford Industrial Realty has a Zacks Rank of 3 (Hold) at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 36.9% year over year. REXR’s long-term growth rate is projected at 11.3%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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EastGroup (EGP) Increases Dividend by 13.6%: Worth a Look?
EastGroup Properties (EGP - Free Report) announced a hike of 13.6% in its quarterly dividend, raising it to $1.25 per share from $1.10. It will be paid out on Oct 14 to shareholders on record as of Sep 30, 2022.
Based on the increase, the annual dividend rate now comes to $5.00 a share, resulting in an annualized yield of 2.97%, considering EastGroup’s closing price of $168.43 on Aug 26.
Solid dividend payouts remain the biggest enticements for REIT investors, and quite encouragingly, EastGroup Properties is committed to boosting shareholder wealth. The company has hiked its dividend in each of the last 11 years, the recent one marking its 171st consecutive quarterly distribution to shareholders. Further, EGP increased or maintained its dividend for 30 consecutive years and hiked it for 27 years during this period.
The stock looks attractive based on the regular rise in dividend income amid a challenging environment. Now let’s check out EastGroup Properties’ fundamentals and financial performance before taking any investment decision.
This industrial REIT focuses on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States. With its focus on the ownership of premier distribution facilities usually clustered near major transportation features in supply-constrained submarkets, EastGroup has a well-leased industrial portfolio.
The company’s operating portfolio was 99.1% leased and 98.5% occupied as of Jun 30, 2022. Also, the average occupancy of the operating portfolio was 98.1% for the second quarter of 2022.
EastGroup has a decent performance, beating the Zacks Consensus Estimate in all the trailing four quarters, on a funds from operations (FFO) per share basis, the average surprise being 3.19%. Moreover, EastGroup Properties’ return on equity (“ROE”) is 12.77%, significantly higher than the industry’s ROE of 3.76%.
Over the next five years, the company’s FFO per share is projected to grow at a rate of 7.9%. The favorable estimate revision for the ongoing year reflects an upbeat outlook for the company. It has moved 1.02% upward in the past month to $6.92, indicating 13.63% year-over-year growth.
This industrial REIT churns cash flow of $7.00 per share compared to the industry average of $1.77. Its projected sales growth of 18.41% is higher than the industry average of 8.76%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. This is aiding the industrial real estate market to prosper.
Apart from the fast adoption of e-commerce, industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including EastGroup, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
Particularly for EastGroup, we believe such deployment activity highlights the company’s operational strength and commitment to rewarding its shareholders handsomely. The latest hike reflects the company’s ability to generate solid cash flow growth through its operating platform and high-quality portfolio.
Investors are always on the lookout for companies with a track record of consistent and incremental dividend payments to put their money on. Such moves will boost investors’ confidence in the stock.
The company’s shares have rallied 9.2%, outperforming the industry’s growth of 5.1%, so far in the quarter.
Image Source: Zacks Investment Research
EastGroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prologis carries a Zacks Rank of 2 at present. Prologis’ long-term growth rate is projected at 9.8%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations per share has been revised marginally upward in the past two months.
Rexford Industrial Realty has a Zacks Rank of 3 (Hold) at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 36.9% year over year. REXR’s long-term growth rate is projected at 11.3%.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.