TRADE ALERT - Retirement Portfolio August 2025

Dear Landlords,

I want to extend a warm welcome to all our new members!

As a reminder, our most recent "Portfolio Review" was shared with the members of High Yield Landlord on July 7th, 2025. You can read it by clicking here.

You can also access our three portfolios on Google Sheets:

New members can start researching positions marked as Strong Buy and Buy while considering the corresponding risk ratings.

============================

TRADE ALERT - Retirement Portfolio August 2025

I was doing some work on industrial REITs recently, and I was surprised to see that EastGroup Properties (EGP) was now trading at a 2x lower valuation multiple than at its peak in early 2022.

I was surprised because I knew that its share price had "only" dropped by 28% since then:

Data by YCharts

The reason why it is now about 50% cheaper is that its FFO per share has risen by 27% during this same time period:

TIKR

It is quite incredible that even a REIT growing at such a rapid pace couldn't escape the bear market.

Best of all, EGP is expected to keep growing at a similar pace in the coming years. Analysts expect its FFO to grow by 8%+ annually through 2030:

TIKR

As we explained in our recent earnings update, EGP's focus on shallow bay, last-mile facilities in the fast-growing Sunbelt region has insulated it from most of the oversupply. Those smaller properties have seen little new construction in recent years:

EastGroup Properties

But while the supply of such properties is limited, we expect the demand for these properties to increase as the AI revolution takes hold. It will only accelerate the two trends that have made these properties so rewarding over the past decade: