JACKSON, Miss., April 22, 2019 /PRNewswire/ --
First Quarter 2019 Results
- Net Income Attributable to Common Stockholders of
$0.62 Per Share for First Quarter
2019 Compared to $0.83 Per Share for
First Quarter 2018 (2019 Included Gains on Sales of Real Estate
Investments and Non-Operating Real Estate of $2.3 Million, or $0.06 Per Share, Compared to $10.3 Million, or $0.30 Per Share, in First Quarter 2018)
- Funds from Operations of $1.20
Per Share for First Quarter 2019 Compared to $1.14* Per Share for First Quarter 2018, an
Increase of 5.3%
- Same Property Net Operating Income for the Annual Same
Property Pool (Excluding Income From Lease Terminations) for First
Quarter 2019 Increased 3.7% on a Straight-Line Basis and 4.5% on a
Cash Basis Compared to First Quarter 2018
- 97.7% Leased and 96.9% Occupied as of March 31, 2019; Average Occupancy of 96.9% for
the Quarter
- Rental Rates on New and Renewal Leases Increased an Average
of 14.2% on a Straight-Line Basis
- Started Construction of Five Development Projects Containing
650,000 Square Feet with Projected Total Costs of $65 Million
- Transferred Three 100% Leased Development and Value-Add
Projects (421,000 Square Feet) to the Real Estate
Portfolio
- Development and Value-Add Program Consisted of 19 Projects
(2.5 Million Square Feet) at March 31,
2019 with a Projected Total Investment of $232 Million
- Sold an Operating Property Containing 51,000 Square Feet for
$3.8 Million (Gain of $2.3 Million Was Not Included in FFO)
- Declared 157th Consecutive Quarterly Cash
Dividend: $0.72 Per Share
- Issued 232,205 Shares of Common Stock Pursuant to the
Company's Continuous Common Equity Program at an Average Price of
$107.66 During the Quarter with Gross
Proceeds of $25.0 Million
- Closed $80 Million of Senior
Unsecured Private Placement Notes with a Fixed Interest Rate of
4.27%
* See Funds from Operations
section on page 2 for discussion of adjustment from previously
reported FFO of $1.16 per share for
the First Quarter of 2018.
EastGroup Properties, Inc. (NYSE: EGP) (the "Company") announced
today the results of its operations for the three months ended
March 31, 2019.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "Our first quarter
results demonstrate the strength and depth of our team, the quality
of our portfolio and the continued health within the broad
industrial market. We are reaping the rewards from both a strong
economy and the persistent favorable evolution within the last mile
logistics market. The advancing shift for distribution to be closer
to the consumer and ideally, a growing consumer base is an
affirmation of our in-fill, shallow bay, Sunbelt operating
strategy."
EARNINGS PER SHARE
On a diluted per share basis,
earnings per common share ("EPS") was $0.62 for the three months
ended March 31, 2019, compared to $0.83 for the same period of 2018. The Company's
property net operating income ("PNOI") increased by $4,945,000 ($0.14
per share) for the three months ended March 31, 2019, as
compared to the same period of 2018. EastGroup recognized gains on
sales of real estate investments and non-operating real estate of
$2,325,000 ($0.06 per share) during the three months ended
March 31, 2019, as compared to $10,308,000 ($0.30
per diluted share) during the same period of 2018. In addition,
depreciation and amortization expense increased by $2,061,000 ($0.06
per diluted share) during the first quarter of 2019 as compared to
the same period of 2018.
FUNDS FROM OPERATIONS
For the quarter ended
March 31, 2019, funds from operations attributable to common
stockholders ("FFO") was $1.20 per
share compared to $1.14 per share for
the same quarter of 2018, an increase of 5.3%. The Company
initially reported FFO of $1.16 per
share during the first quarter of 2018. In connection with the
Company's adoption of the Nareit Funds from Operations White Paper
- 2018 Restatement, the Company now excludes from FFO the gains and
losses on sales of non-operating real estate and assets incidental
to the Company's business and therefore adjusted the prior year
results, including the Company's FFO for 2018, to conform to the
updated definition of FFO.
PNOI increased by $4,945,000, or
9.6%, during the quarter ended March 31, 2019, compared to the
same period of 2018. PNOI increased $2,492,000 from newly developed and value-add
properties, $1,852,000 from same
property operations (based on the annual same property pool) and
$822,000 from 2018 acquisitions; PNOI
decreased $276,000 from operating
properties sold in 2018 and 2019.
The annual same property pool PNOI (excluding income from lease
terminations) increased 3.7% for the quarter ended March 31,
2019, compared to the same quarter in 2018; on a cash basis
(excluding straight-line rent adjustments and amortization of
above/below market rent intangibles), same PNOI increased 4.5%. The
annual same property pool for the first quarter of 2019 includes
properties which were included in the operating portfolio for the
entire period from January 1, 2018
through March 31, 2019; this pool is
comprised of properties containing 36,948,000 square feet.
Rental rates on new and renewal leases (4.1% of total square
footage) increased an average of 14.2% for the first quarter.
FFO, PNOI and Same PNOI are non-GAAP financial measures, which
are defined under Definitions later in this
release. Reconciliations of Net Income to PNOI and Net
Income Attributable to EastGroup Properties, Inc. Common
Stockholders to FFO are presented in the attached schedule
"Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
In January, EastGroup
completed the sale of World Houston 5 for $3.8 million. The 51,000 square foot,
single-tenant building was constructed in 1993. The Company
recognized a gain on the sale of $2.3
million, which is included in Gain on sales of real estate
investments; this gain is excluded from FFO.
EastGroup is under contract to acquire Logistics Center 6 &
7, which contains a total of 142,000 square feet of multi-tenant
distribution space in two buildings in Dallas. The buildings, which are located in a
master-planned park on DFW International Airport-owned property
with a 40-year ground lease, were developed in 2018 and are
currently 19% leased. EastGroup anticipates closing the
$13 million acquisition in late
April, and the Company estimates its total investment in the
property, including improvements during the lease-up phase, will be
approximately $15 million.
The Company has exercised an option to re-purchase Interstate
Commons Distribution Center in the southwest submarket of
Phoenix for $9.2 million. Through eminent domain procedures,
the Company previously sold the property to the Arizona Department
of Transportation in 2016. The two multi-tenant distribution
buildings, which are located adjacent to existing EastGroup assets,
contain 142,000 square feet and will be re-developed by the Company
with a projected total investment of $12
million. The value-add acquisition is expected to close
during the second quarter of 2019.
EastGroup is under contract to acquire, with a joint venture
partner, 7 acres of land in the central submarket of San Diego for $13
million; the Company will be a 95% partner in the venture.
The Company expects the land acquisition to close during the second
quarter of 2019. The land is currently leased to a company that
operates a parking lot on the site. In the future, EastGroup and
its joint venture partner plan to develop a distribution building
containing approximately 125,000 square feet.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the first
quarter, EastGroup began construction of five development projects
in five different cities, all of which are located in existing
EastGroup parks. The buildings will contain a total of 650,000
square feet and have projected total costs of $65 million.
The development projects started during the first three months
of 2019 are detailed in the table below:
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Development
Projects Started in 2019
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Location
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Size
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Anticipated
Conversion
Date
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Projected
Total Costs
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(Square
feet)
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(In
thousands)
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Gateway 5
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Miami, FL
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187,000
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08/2020
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$
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22,400
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Parc North
6
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Dallas, TX
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96,000
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09/2020
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8,900
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Steele Creek
IX
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Charlotte,
NC
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125,000
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10/2020
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9,800
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Eisenhauer Point
9
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San Antonio,
TX
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82,000
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12/2020
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6,400
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World Houston
45
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Houston,
TX
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160,000
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12/2020
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17,600
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Total Development Projects
Started
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650,000
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$
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65,100
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At March 31, 2019, EastGroup's development and value-add
program consisted of 19 projects (2,493,000 square feet) in 10
cities. The projects, which were collectively 50% leased as of
April 19, 2019, have a projected
total cost of $232 million.
During the first quarter, EastGroup transferred (at the earlier
of 90% occupied or one year after completion) three development
projects, Siempre Viva in San
Diego, CreekView 121 3 & 4 in Dallas, and Horizon VI in Orlando, to the real estate portfolio. The
three fully-occupied projects contain a total of 421,000 square
feet.
The development and value-add properties transferred to the real
estate portfolio during the first three months of 2019 are detailed
in the table below.
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Development and
Value-Add
Properties Transferred to Real
Estate Properties in 2019
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Location
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Size
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Conversion
Date
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Cumulative
Cost as of
3/31/19
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Percent
Leased as
of 4/19/19
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(Square
feet)
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(In
thousands)
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Siempre
Viva
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San Diego,
CA
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115,000
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01/2019
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$
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14,142
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100%
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CreekView 121 3 &
4
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Dallas, TX
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158,000
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03/2019
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15,539
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100%
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Horizon VI
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Orlando,
FL
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148,000
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03/2019
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12,234
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100%
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Total Projects
Transferred
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421,000
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$
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41,915
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100%
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Subsequent to quarter-end, the Company began construction of two
development projects: SunCoast 6, an 81,000 square foot
multi-tenant distribution building in Ft. Myers with a projected
total cost of $8 million, and World
Houston 43, an 86,000 square foot multi-tenant distribution
building in Houston with a
projected total cost of $7
million.
DIVIDENDS
EastGroup declared cash dividends of $0.72 per share in the first quarter of 2019. The
first quarter dividend, which was paid on April 15, 2019, was the Company's
157th consecutive quarterly cash distribution to
shareholders. The Company has increased or maintained
its dividend for 26 consecutive years and has increased it 23 years
over that period, including increases in each of the last seven
years. The annualized dividend rate of $2.88 per share yielded 2.6% on the closing stock
price of $110.69 on April 18, 2019.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance
sheet. Debt-to-total market capitalization was 21.5% at
March 31, 2019. For the first quarter, the Company
had interest and fixed charge coverage ratios of 5.97x and a debt
to earnings before interest, taxes, depreciation and amortization
for real estate ("EBITDAre") ratio of 5.30x.
During the first quarter, EastGroup issued and sold 232,205
shares of common stock under its continuous equity program at an
average price of $107.66 per share,
providing gross proceeds to the Company of $25.0 million.
In March, the Company closed $80
million of senior unsecured private placement notes with an
insurance company. The notes have a 10-year term and a fixed
interest rate of 4.27% with semi-annual interest payments. The
notes will not be and have not been registered under the Securities
Act of 1933, as amended, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements.
Subsequent to quarter-end, EastGroup repaid a mortgage loan with
a balance of $46.0 million, an
interest rate of 7.5% and an original maturity date of May 5, 2019.
OUTLOOK FOR 2019
EPS for 2019 is now estimated to be
in the range of $2.31 to $2.41. Estimated FFO per share
attributable to common stockholders for 2019 is now estimated to be
in the range of $4.84 to $4.94. The Company raised the mid-point of FFO
guidance from $4.84 to $4.89. The table below reconciles projected net
income attributable to common stockholders to projected FFO. The
estimated net income attributable to common stockholders is not a
projection and is provided solely to satisfy the disclosure
requirements of the U.S. Securities and Exchange Commission.
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Low
Range
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High
Range
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Q2
2019
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Y/E
2019
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Q2
2019
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Y/E
2019
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(In thousands,
except per share data)
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Net income
attributable to common stockholders
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$
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19,150
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85,894
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20,628
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89,608
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Depreciation and
amortization
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24,049
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95,960
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24,049
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95,960
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Gain on sales of real
estate investments
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—
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(2,325)
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—
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(2,325)
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Funds from operations
attributable to common stockholders
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$
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43,199
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179,529
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44,677
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183,243
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Diluted
shares
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36,939
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37,131
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36,939
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37,131
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Per share data
(diluted):
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Net
income attributable to common stockholders
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$
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0.52
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2.31
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0.56
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2.41
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Funds from operations attributable
to common stockholders
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1.17
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4.84
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1.21
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4.94
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The following assumptions were used for the
mid-point:
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Metrics
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Revised
Guidance for
Year 2019
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Initial
Guidance for
Year 2019
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Actual for
Year 2018
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FFO per
share
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$4.84 -
$4.94
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$4.79 -
$4.89
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$4.66
(1)
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FFO per share
increase over prior year period (1)
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4.9%
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3.9%
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9.6%
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Same PNOI growth
(excluding income from lease terminations):
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Straight-line basis — annual same
property pool
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2.9% - 3.9%
(2)
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2.4% - 3.4%
(2)
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3.8%
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Cash
basis — annual same property pool (3)
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3.8% - 4.8%
(2)
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3.5% - 4.5%
(2)
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4.3%
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Average month-end
occupancy
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96.4%
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96.2%
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96.1%
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Lease termination fee
income
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$765,000
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$450,000
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$294,000
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Reserves for
uncollectible rent
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$800,000
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$900,000
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$784,000
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Development
starts:
|
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Square feet
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1.7
million
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1.5
million
|
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1.7
million
|
Projected total
investment
|
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$160
million
|
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$141
million
|
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$148
million
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Value-add property
acquisitions
|
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$55
million
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None
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$14
million
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Operating property
acquisitions
|
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$50
million
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$50
million
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$57
million
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Operating property
dispositions
(Potential gains on dispositions are
not included in the
projections)
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$45
million
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$47
million
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$23
million
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Unsecured debt
closing in period
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$160 million at
4.5% weighted
average interest
rate
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$140 million at
4.8% weighted
average interest
rate
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$60 million
at 3.93%
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Common stock
issuances
|
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$145
million
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$60
million
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$159
million
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General and
administrative expense
|
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$15.6
million
|
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$14.4
million
|
|
$13.8
million
|
|
(1) The Company initially
reported FFO of $4.67 for the year 2018. In connection with the
Company's adoption of the Nareit Funds from Operations White Paper
- 2018 Restatement, the Company now excludes from FFO the gains and
losses on sales of non-operating real estate and assets incidental
to the Company's business and therefore adjusted the prior year
results, including the Company's FFO for 2018, to conform to the
updated definition of FFO.
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(2) Includes properties
which have been in the operating portfolio since 1/1/18 and are
projected to be in the operating portfolio through 12/31/19 (annual
same property pool); includes 36,762,000 square
feet.
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(3) Cash basis excludes
straight-line rent adjustments and amortization of above/below
market rent intangibles.
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DEFINITIONS
The Company's chief decision makers use two primary measures of
operating results in making decisions: (1) property net
operating income ("PNOI"), defined as Income from real estate
operations less Expenses from real estate operations (including
market-based internal management fee expense) plus the Company's
share of income and property operating expenses from its
less-than-wholly-owned real estate investments, and (2) funds from
operations attributable to common stockholders
("FFO").
FFO is computed in accordance with standards established by the
National Association of Real Estate Investment Trusts
("Nareit"). In December 2018,
Nareit issued the "Nareit Funds from Operations White Paper - 2018
Restatement" (the "2018 White Paper"), which reaffirmed, and in
some cases refined, Nareit's prior determinations concerning FFO.
The guidance in the 2018 White Paper allows preparers an option as
it pertains to whether gains or losses on sale, or impairment
charges, on real estate assets incidental to a REIT's business are
excluded from the calculation of FFO. EastGroup has made the
election to exclude activity related to such assets that are
incidental to our business. The Company has revised prior periods
to reflect this guidance. FFO is calculated as net income (loss)
attributable to common stockholders computed in accordance with
U.S. generally accepted accounting principles ("GAAP"), excluding
gains and losses from sales of real estate property (including
other assets incidental to the Company's business) and impairment
losses, adjusted for real estate related depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures.
PNOI and FFO are supplemental industry reporting measurements
used to evaluate the performance of the Company's investments in
real estate assets and its operating results. The Company believes
that the exclusion of depreciation and amortization in the
industry's calculations of PNOI and FFO provides supplemental
indicators of the properties' performance since real estate values
have historically risen or fallen with market
conditions. PNOI and FFO as calculated by the Company
may not be comparable to similarly titled but differently
calculated measures for other real estate investment trusts
("REITs"). Investors should be aware that items excluded
from or added back to FFO are significant components in
understanding and assessing the Company's financial
performance.
EastGroup sometimes refers to PNOI from Same Properties as "Same
PNOI" in this press release and the accompanying reconciliation.
The Company presents Same PNOI as a property-level supplemental
measure of performance used to evaluate the performance of the
Company's investments in real estate assets and its operating
results on a same property basis. Same Properties is defined as
operating properties owned during the entire current period and
prior year reporting period. Properties developed or acquired are
excluded until held in the operating portfolio for both the current
and prior year reporting periods. Properties sold during the
current or prior year reporting periods are also excluded.
The Company's chief decision makers also use Earnings Before
Interest, Taxes, Depreciation and Amortization for Real Estate
("EBITDAre") in making decisions. EBITDAre is defined as Net
Income, adjusted for gains and losses from sales of real estate
investments, non-operating real estate and other assets incidental
to the Company's business, interest expense, income tax expense,
depreciation and amortization. EBITDAre is a non-GAAP financial
measure used to measure the Company's operating performance and its
ability to meet interest payment obligations and pay quarterly
stock dividends on an unleveraged basis.
EastGroup's chief decision makers also use its Debt-to-EBITDAre
ratio, a non-GAAP financial measure calculated by dividing the
Company's debt by its EBITDAre, in analyzing the financial
condition and operating performance of the Company relative to its
leverage.
The Company's interest and fixed charge coverage ratios are
non-GAAP financial measures calculated by dividing the Company's
EBITDAre by its interest expense. These ratios provide a basis for
analysis of the Company's leverage, operating performance, and its
ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the
results of its first quarter and review the Company's current
operations on Tuesday, April 23,
2019, at 11:00 a.m. Eastern
Time. A live broadcast of the conference call is
available by dialing 1-877-876-9173 (conference ID: EastGroup) or
by webcast through a link on the Company's website at
www.eastgroup.net. If you are unable to listen to the
live conference call, a telephone and webcast replay will be
available until Tuesday, April 30,
2019. The telephone replay can be accessed by dialing
1-800-723-0389, and the webcast replay can be accessed through a
link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly
Results in the Investor Relations section of the Company's website
at www.eastgroup.net or upon request by calling the Company at
601-354-3555.
COMPANY INFORMATION
EastGroup Properties, Inc. is a self-administered equity real
estate investment trust focused on the development, acquisition and
operation of industrial properties in major Sunbelt markets
throughout the United States with
an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The
Company's goal is to maximize shareholder value by being a leading
provider in its markets of functional, flexible and quality
business distribution space for location sensitive customers
(primarily in the 15,000 to 70,000 square foot
range). The Company's strategy for growth is based on
ownership of premier distribution facilities generally clustered
near major transportation features in supply-constrained
submarkets. EastGroup's portfolio, including development
projects and value-add acquisitions in lease-up and under
construction, currently includes approximately 42.3 million square
feet. EastGroup Properties, Inc. press releases are
available on the Company's website at www.eastgroup.net.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this
press release, which can be identified by the use of
forward-looking terminology such as "believes," "expects," "may,"
"should," "intends," "plans," "estimates" or "anticipates" and
variations of such words or similar expressions or the negative of
such words, constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are subject to the safe harbors created thereby. These
forward-looking statements reflect the Company's current views
about its plans, intentions, expectations, strategies and
prospects, which are based on the information currently available
to the Company and on assumptions it has made. Although the Company
believes that its plans, intentions, expectations, strategies and
prospects as reflected in or suggested by those forward-looking
statements are reasonable, the Company can give no assurance that
such plans, intentions, expectations or strategies will be attained
or achieved. Furthermore, these forward-looking statements should
be considered as subject to the many risks and uncertainties that
exist in the Company's operations and business environment. Such
risks and uncertainties could cause actual results to differ
materially from those projected. These uncertainties include, but
are not limited to:
- changes in general economic conditions;
- the extent of customer defaults or of any early lease
terminations;
- the Company's ability to lease or re-lease space at current or
anticipated rents;
- the availability of financing;
- failure to maintain credit ratings with rating agencies;
- changes in the supply of and demand for industrial/warehouse
properties;
- increases in interest rate levels;
- increases in operating costs;
- natural disasters, terrorism, riots and acts of war, and the
Company's ability to obtain adequate insurance;
- changes in governmental regulation, tax rates and similar
matters;
- attracting and retaining key personnel;
- other risks associated with the development and acquisition of
properties, including risks that development projects may not be
completed on schedule, development or operating costs may be
greater than anticipated or acquisitions may not close as
scheduled; and
- other risks detailed in the sections of the Company's most
recent Forms 10-K and 10-Q filed with the SEC titled "Risk
Factors."
The Company assumes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
|
|
|
|
|
|
|
|
|
EASTGROUP
PROPERTIES, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
(IN THOUSANDS,
EXCEPT PER SHARE DATA)
|
(UNAUDITED)
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2019
|
|
2018
|
REVENUES
|
|
|
|
|
Income from real
estate operations
|
|
$
|
78,637
|
|
|
72,120
|
|
Other
revenue
|
|
161
|
|
|
83
|
|
|
|
78,798
|
|
|
72,203
|
|
EXPENSES
|
|
|
|
|
|
|
Expenses from real
estate operations
|
|
22,302
|
|
|
20,676
|
|
Depreciation and
amortization
|
|
23,746
|
|
|
21,685
|
|
General and
administrative
|
|
3,844
|
|
|
3,463
|
|
Indirect leasing
costs
|
|
93
|
|
|
—
|
|
|
|
49,985
|
|
|
45,824
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
Interest
expense
|
|
(8,846)
|
|
|
(8,607)
|
|
Gain on sales of real
estate investments
|
|
2,325
|
|
|
10,222
|
|
Other
|
|
242
|
|
|
754
|
|
NET INCOME
|
|
22,534
|
|
|
28,748
|
|
Net income
attributable to noncontrolling interest in joint
ventures
|
|
(5)
|
|
|
(35)
|
|
NET INCOME
ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
|
|
22,529
|
|
|
28,713
|
|
Other comprehensive
income (loss) - cash flow hedges
|
|
(2,313)
|
|
|
3,606
|
|
TOTAL COMPREHENSIVE
INCOME
|
|
$
|
20,216
|
|
|
32,319
|
|
|
|
|
|
|
BASIC PER COMMON
SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
0.62
|
|
|
0.83
|
|
Weighted average
shares outstanding
|
|
36,465
|
|
|
34,689
|
|
DILUTED PER COMMON
SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
0.62
|
|
|
0.83
|
|
Weighted average
shares outstanding
|
|
36,526
|
|
|
34,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EASTGROUP
PROPERTIES, INC. AND SUBSIDIARIES
|
RECONCILIATIONS OF
GAAP TO NON-GAAP MEASURES
|
(IN THOUSANDS,
EXCEPT PER SHARE DATA)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
NET
INCOME
|
|
$
|
22,534
|
|
|
28,748
|
|
(Gain) on sales of
real estate investments
|
|
(2,325)
|
|
|
(10,222)
|
|
(Gain) on sales of
non-operating real estate
|
|
—
|
|
|
(86)
|
|
(Gain) on sales of
other
|
|
—
|
|
|
(427)
|
|
Interest
income
|
|
(33)
|
|
|
(55)
|
|
Other
revenue
|
|
(161)
|
|
|
(83)
|
|
Indirect leasing
costs
|
|
93
|
|
|
—
|
|
Depreciation and
amortization
|
|
23,746
|
|
|
21,685
|
|
Company's share of
depreciation from unconsolidated investment
|
|
35
|
|
|
31
|
|
Interest expense
(1)
|
|
8,846
|
|
|
8,607
|
|
General and
administrative expense (2)
|
|
3,844
|
|
|
3,463
|
|
Noncontrolling
interest in PNOI of consolidated 80% joint ventures
|
|
(52)
|
|
|
(79)
|
|
PROPERTY NET
OPERATING INCOME (PNOI)
|
|
56,527
|
|
|
51,582
|
|
PNOI from 2018
Acquisitions
|
|
(822)
|
|
|
—
|
|
PNOI from 2018 and
2019 Development Properties
|
|
(3,314)
|
|
|
(822)
|
|
PNOI from 2018 and
2019 Operating Property Dispositions
|
|
(23)
|
|
|
(299)
|
|
Other PNOI
|
|
47
|
|
|
102
|
|
SAME
PNOI
|
|
52,415
|
|
|
50,563
|
|
Net lease termination
fee (income) from same properties
|
|
(140)
|
|
|
(131)
|
|
SAME PNOI
EXCLUDING INCOME FROM LEASE TERMINATIONS
|
|
$
|
52,275
|
|
|
50,432
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
|
|
$
|
22,529
|
|
|
28,713
|
|
Depreciation and
amortization
|
|
23,746
|
|
|
21,685
|
|
Company's share of
depreciation from unconsolidated investment
|
|
35
|
|
|
31
|
|
Depreciation and
amortization from noncontrolling interest
|
|
(47)
|
|
|
(44)
|
|
(Gain) on sales of
real estate investments
|
|
(2,325)
|
|
|
(10,222)
|
|
(Gain) on sales of
non-operating real estate
|
|
—
|
|
|
(86)
|
|
(Gain) on sales of
other
|
|
—
|
|
|
(427)
|
|
FUNDS FROM
OPERATIONS (FFO) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
|
$
|
43,938
|
|
|
39,650
|
|
|
|
|
|
|
NET
INCOME
|
|
$
|
22,534
|
|
|
28,748
|
|
Interest expense
(1)
|
|
8,846
|
|
|
8,607
|
|
Depreciation and
amortization
|
|
23,746
|
|
|
21,685
|
|
Company's share of
depreciation from unconsolidated investment
|
|
35
|
|
|
31
|
|
EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(EBITDA)
|
|
55,161
|
|
|
59,071
|
|
(Gain) on sales of
real estate investments
|
|
(2,325)
|
|
|
(10,222)
|
|
(Gain) on sales of
non-operating real estate
|
|
—
|
|
|
(86)
|
|
(Gain) on sales of
other
|
|
—
|
|
|
(427)
|
|
EBITDA for Real
Estate (EBITDAre)
|
|
$
|
52,836
|
|
|
48,336
|
|
DILUTED PER COMMON
SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
|
|
|
|
|
|
|
Net income
attributable to common stockholders
|
|
$
|
0.62
|
|
|
0.83
|
|
Funds from operations
(FFO) attributable to common stockholders
|
|
$
|
1.20
|
|
|
1.14
|
(3)
|
Weighted average
shares outstanding for EPS and FFO purposes
|
|
36,526
|
|
|
34,736
|
|
|
|
|
|
|
(1) Net of capitalized interest
of $2,036 and $1,602 for the three months ended March 31, 2019 and
2018, respectively.
|
|
|
|
|
|
(2) Net of capitalized development
costs of $1,571 and $1,123 for the three months ended March 31,
2019 and 2018, respectively.
|
|
|
|
|
|
(3) The Company initially
reported FFO of $1.16 per share during the first quarter of 2018.
In connection with the Company's adoption of the Nareit Funds from
Operations White Paper - 2018 Restatement, the Company now excludes
from FFO the gains and losses on sales of non-operating real estate
and assets incidental to the Company's business and therefore
adjusted the prior year results, including the Company's FFO for
2018, to conform to the updated definition of FFO.
|
400 W. Parkway Place, Suite 100,
Ridgeland, MS 39157 | TEL:
601-354-3555 | FAX: 601-352-1441 | EastGroup.net
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SOURCE EastGroup Properties