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EastGroup Properties is an equity real estate investment trust (REIT) located mainly in the southern and western regions of the U.S. Eighty percent of EGP’s portfolio is made up of multi-tenant “business distribution buildings.” EGP acquires, develops and operates mainly industrial properties. Specifically, it owns approximately 300 industrial properties and one office building.
The most exceptional aspects of EGP are how steady its capital structure is and how stable its stock price is. It has kept its equity-to-assets ratio at roughly 35 percent for at least the last 7 – 8 years. This is probably why its price also tends to be very steady.
In all other ways, we consider its financial strength to be only average. And its growth prospects are also not remarkable. EGP has a very generous dividend. And that dividend appears to be safe. It has a Dividend/Cash Flow from Operations ratio of 0.613. This is a little higher than we would like, but it is still below 1.0. This is not a bad stock. But we believe it warrants only a Hold rating.
Stat Sheet – EastGroup Properties
|Industry||Real Estate Operations|
|Market Cap||$ 1,940|
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