Dividend Power of EastGroup Properties for Passive Retirement Income

For retirees seeking reliable passive income, real estate investment trusts (REITs) like EastGroup Properties (EGP) offer a compelling blend of stability and growth. With a 4.53% dividend yield and a track record of robust FFO (Funds From Operations) growth, EastGroup stands out as a strategic option for investors aiming to generate consistent $100/month in retirement income. This analysis examines the company's financial performance, industrial sector positioning, and dividend sustainability to build a case for its long-term appeal.

FFO Growth: A Foundation for Dividend Sustainability

EastGroup's financial resilience is underscored by its strong FFO growth. For the full year 2024, the company reported a 7.9% increase in FFO per diluted share, excluding gains on involuntary conversions and business interruption claims, reaching $8.31 per share. This growth was driven by a 4.8% rise in same-property net operating income on a straight-line basis and a 5.6% increase on a cash basis. More recently, the third quarter of 2025 saw a 6.6% year-over-year increase in FFO per diluted share, with $2.27 per share reported. Year-to-date, FFO grew by 7.3% for the nine months ending September 30, 2025.

Such consistent FFO growth is critical for REITs, as it directly supports dividend payouts. EastGroup's ability to outperform industry benchmarks reflects its strategic focus on high-growth Sunbelt markets and shallow bay industrial properties, which cater to evolving logistics and e-commerce demands.

Industrial Sector Positioning: High-Demand Exposure

EastGroup's portfolio is deeply aligned with sectors experiencing structural demand. As of September 30, 2025, the company reported an industrial occupancy rate of 95.9%, with the operating portfolio averaging 95.7% occupancy for the quarter. This resilience is fueled by the growing need for last-mile distribution centers and e-commerce-ready facilities, particularly in Sunbelt regions like Texas, Florida, and Georgia.

The company's 63.9 million square feet of industrial space as of Q2 2025 is increasingly sought after by tenants requiring modern infrastructure. Features such as energy-efficient LED lighting and EV charging stations further enhance tenant retention and rental income. With e-commerce projected to drive long-term industrial demand, EastGroup's portfolio is well-positioned to sustain occupancy and rental growth.

Dividend Yield and Investment Requirements

To generate $100/month in passive income ($1,200/year) from EastGroup's dividends, an investor would need to calculate the required investment based on its 4.53% yield. As of November 26, 2025, EastGroup's stock closed at $181.18, with an annual dividend of $2.79 per share. Using the formula:

$$\text{Required Investment} = \frac{\text{Desired Annual Income}}{\text{Dividend Yield}} = \frac{1,200}{0.0453} \approx \$26,489$$

This calculation assumes the dividend yield remains stable, a reasonable assumption given EastGroup's historical FFO growth and strong occupancy rates. For context, a $26,500 investment at $181.18 per share would require approximately 146 shares, yielding $100/month in dividends.

### Conclusion: A Pillar of Income-Driven Portfolios
EastGroup Properties exemplifies the ideal characteristics of a dividend-focused REIT: strong FFO growth, high occupancy rates, and strategic alignment with high-demand industrial sectors. Its 4.53% yield, combined with a $2.79 annual dividend, provides a clear pathway for retirees to generate $100/month in passive income. While market conditions can fluctuate, EastGroup's emphasis on modern, e-commerce-ready properties and its dominance in Sunbelt markets suggest a durable income stream for long-term investors.

For retirees prioritizing income consistency and capital preservation, EastGroup Properties offers a compelling case to anchor a diversified retirement portfolio.