Fourth Quarter 2022 Results
- Net Income Attributable to Common Stockholders of
$0.89 Per Diluted Share for Fourth
Quarter 2022 Compared to $1.75 Per
Diluted Share for Fourth Quarter 2021 (Gains on Sales of Real
Estate Investments Were $39 Million,
or $0.95 Per Diluted Share, for
Fourth Quarter 2021; There Were No Sales in Fourth Quarter
2022)
- Funds from Operations of $1.82
Per Share for Fourth Quarter 2022 Compared to $1.62 Per Share for Fourth Quarter 2021, an
Increase of 12.3%
- Same Property Net Operating Income for the Same Property
Pool Excluding Income From Lease Terminations Increased 7.1% on a
Straight-Line Basis and 8.7% on a Cash Basis for Fourth Quarter
2022 Compared to the Same Period in 2021
- Operating Portfolio was 98.7% Leased and 98.3% Occupied as
of December 31, 2022; Average
Occupancy of Operating Portfolio was 98.4% for Fourth Quarter 2022
as Compared to 97.3% for Fourth Quarter 2021
- Rental Rates on New and Renewal Leases Increased an Average
of 49.2% on a Straight-Line Basis
- Acquired 170.3 Acres of Development Land for Approximately
$46 Million
- Started Construction of One Development Project Containing
351,000 Square Feet with Projected Total Costs of Approximately
$45 Million
- Transferred Eight Development and Value-Add Projects
Totaling 1,304,000 Square Feet to the Operating Portfolio, Which
Are Collectively 100% Leased
- Development and Value-Add Program Consisted of 20 Projects
in 12 Cities (4.0 Million Square Feet) at December 31, 2022 with a Projected Total
Investment of Approximately $494
Million
- Declared 172nd Consecutive Quarterly Cash Dividend:
$1.25 Per Share
- Closed $150 Million of Senior
Unsecured Debt: $75 Million has an
11-Year Term and a Fixed Interest Rate of 4.90% and $75 Million has a 12-Year Term and a Fixed
Interest Rate of 4.95%
- Agreed to Terms on a $100
Million Senior Unsecured Term Loan with a Fixed Interest
Rate of 5.27% and a 7-Year Term
- Agreed to Terms to Expand the Borrowing Capacity of the
Unsecured Bank Credit Facilities from $475
Million to $675
Million
Year 2022 Results
- Net Income Attributable to Common Stockholders of
$4.36 Per Diluted Share for 2022
Compared to $3.90 Per Diluted Share
for 2021
- Funds from Operations of $7.00
Per Share for 2022 Compared to $6.09
Per Share for 2021, an Increase of 14.9%
- Same Property Net Operating Income for the Same Property
Pool Excluding Income From Lease Terminations for 2022 Increased
7.2% on a Straight-Line Basis and 8.9% on a Cash Basis Compared to
2021
- Average Occupancy of the Operating Portfolio was 98.0% for
2022 as Compared to 97.1% for 2021
- Rental Rates on New and Renewal Leases Increased an Average
of 39.0% on a Straight-Line Basis
- Acquired Tulloch Corporation, the Owner of an Industrial
Real Estate Portfolio Located within the San Francisco and Sacramento Markets,
Comprised of 14 Properties Totaling Approximately 1.7 Million
Square Feet and Two Land Parcels Totaling 10.5 Acres for
Approximately $366 Million
- Acquired 1,044,000 Square Feet of Value-Add Properties for
Approximately $123 Million
- Acquired 456.3 Acres of Development Land for Approximately
$124 Million
- Started Construction of 14 Development Projects Containing
2,668,000 Square Feet with Projected Total Costs of $329 Million
- Transferred 19 Development and Value-Add Projects Totaling
3,638,000 Square Feet to the Real Estate Portfolio, Which are
Collectively 99% Leased
- Sold Three Operating Properties Totaling 287,000 Square Feet
for Approximately $52 Million (Gains
of $41 Million Not Included in
FFO)
- Closed $525 Million of
Unsecured Debt with a Weighted Average Effective Fixed Interest
Rate of 3.82%
- Repaid a $75 Million Unsecured
Term Loan with a Fixed Interest Rate of 3.03%
- Refinanced a $100 Million
Senior Unsecured Term Loan with Five Years Remaining, Reducing the
Effective Fixed Interest Rate by 60 basis points to 1.80%
- Issued 393,406 Shares of Common Stock Pursuant to the
Company's Continuous Common Equity Offering Program at an Average
Price of $194.17 Per Share for
Aggregate Net Proceeds of approximately $75
Million
JACKSON,
Miss., Feb. 7, 2023 /PRNewswire/ -- EastGroup
Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or
"EastGroup") announced today the results of its operations for the
three and twelve months ended December 31,
2022.
![EastGroup Properties, Inc. logo. (PRNewsFoto/EAST GROUP PROPERTIES, INC.) (PRNewsFoto/) (PRNewsFoto/) EastGroup Properties, Inc. logo. (PRNewsFoto/EAST GROUP PROPERTIES, INC.) (PRNewsFoto/) (PRNewsFoto/)](https://mma.prnewswire.com/media/325470/east_group_properties__inc__logo.jpg)
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "Our team continues
delivering solid, consistent results as evidenced by fourth quarter
growth in FFO per share of more than 12%. Further, our annual FFO
per share growth was approximately 15%, which comes on top of last
year's record results. The day-to-day industrial market remains
strong as evidenced by a number of metrics such as our percent
leased, percent occupied, record quarterly and annual releasing
spreads and same store net operating income growth. And while we're
proud of these operational results, we remain mindful of the global
economic unease. As a result, we're being judicious with capital
allocation and incremental risk. This type of economic climate is
one of the primary reasons we've brought our overall leverage and
floating rate debt ratios down the past few years. Longer term, I
remain bullish on the continued growth prospects for our shallow
bay, last mile Sunbelt market portfolio."
EARNINGS PER SHARE
Three Months Ended December 31, 2022
On a diluted
per share basis, earnings per common share ("EPS") were
$0.89 for the three months ended
December 31, 2022, compared to
$1.75 for the same period of 2021.
The Company's property net operating income ("PNOI") increased by
$16,779,000 ($0.38 per share) for the three months ended
December 31, 2022, as compared to the
same period of 2021. EastGroup recognized no gains on sales of real
estate investments in the three months ended December 31, 2022, compared to $38,859,000 ($0.95
per share) for the three months ended December 31, 2021. Depreciation and amortization
expense increased by $7,385,000
($0.17 per share) during the three
months ended December 31, 2022, as
compared to the same period of 2021.
Twelve Months Ended December 31, 2022
Diluted EPS
for the twelve months ended December 31, 2022 were
$4.36 compared to $3.90 for the same period of 2021. PNOI increased
by $58,798,000 ($1.38 per share) for the twelve months ended
December 31, 2022, as compared to the same period of 2021.
EastGroup recognized gains on sales of real estate investments of
$40,999,000 ($0.96 per share) during the twelve months ended
December 31, 2022, compared to $38,859,000 ($0.96
per share) during the same period of 2021. Depreciation and
amortization expense increased by $26,539,000 ($0.62
per share) during the twelve months ended December 31, 2022,
as compared to the same period of 2021.
FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING
INCOME
Three Months Ended December 31, 2022
For the
three months ended December 31, 2022,
funds from operations attributable to common stockholders ("FFO")
were $1.82 per share compared to
$1.62 per share during the same
period of 2021, an increase of 12.3%.
PNOI increased by $16,779,000, or
21.5%, during the three months ended December 31, 2022,
compared to the same period of 2021. PNOI increased $8,476,000 from newly developed and value-add
properties, $4,942,000 from same
property operations (based on the same property pool), and
$4,198,000 from 2021 and 2022
acquisitions; PNOI decreased $678,000
from operating properties sold in 2021 and 2022.
Same PNOI Excluding Income from Lease Terminations increased
7.1% on a straight-line basis for the three months ended
December 31, 2022, compared to the same period of 2021; on a
cash basis (excluding straight-line rent adjustments and
amortization of above/below market rent intangibles), Same PNOI
increased 8.7%.
On a straight-line basis, rental rates on new and renewal leases
(3.7% of total square footage) increased an average of 49.2% during
the three months ended December 31, 2022.
Twelve Months Ended December 31, 2022
FFO for the
twelve months ended December 31, 2022, was $7.00 per share compared to $6.09 per share during the same period of 2021,
an increase of 14.9%.
PNOI increased by $58,798,000, or
19.9%, during the twelve months ended December 31, 2022,
compared to the same period of 2021. PNOI increased $27,392,000 from newly developed and value-add
properties, $20,084,000 from same
property operations (based on the same property pool), and
$14,894,000 from 2021 and 2022
acquisitions; PNOI decreased $3,026,000 from operating properties sold in 2021
and 2022.
Same PNOI Excluding Income from Lease Terminations increased
7.2% on a straight-line basis for the twelve months ended
December 31, 2022, compared to the same period of 2021; on a
cash basis (excluding straight-line rent adjustments and
amortization of above/below market rent intangibles), Same PNOI
increased 8.9%.
On a straight-line basis, rental rates on new and renewal leases
(17.7% of total square footage) increased an average of 39.0%
during the twelve months ended December 31, 2022.
The same property pool for the three and twelve months ended
December 31, 2022 includes properties which were included in
the operating portfolio for the entire period from January 1, 2021 through December 31, 2022;
this pool is comprised of properties containing 43,349,000 square
feet.
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 Same 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
During the three months ended December 31, 2022, the
Company closed on the acquisition of development land in four
different markets:
- Greenway Land – 60.9 acres of land in Atlanta, acquired for $5,785,000, that will accommodate the future
development of five buildings containing approximately 739,000
square feet. In the Atlanta
market, the Company owns 1,312,000 square feet of operating
properties, which are 100% leased as of February 6, 2023.
- Cameron Land – 87.5 acres of
land in Austin, acquired for
$30,776,000, that will accommodate
the future development of seven buildings containing approximately
1,007,000 square feet. In the Austin market, the Company owns 1,322,000
square feet of operating properties, which are 97.8% leased as of
February 6, 2023.
- Eisenhauer Point 13-14 Land –
11.2 acres of land in San Antonio,
acquired for $2,742,000, that will
accommodate the future development of two buildings containing
approximately 156,000 square feet. This land is adjacent to the
Company's existing Eisenhauer Point
development, which consists of 958,000 square feet and is 100%
leased as of February 6, 2023.
- MCO Logistics Center Land – 10.7 acres of land in Orlando, acquired for $6,769,000, that will accommodate the future
development of a building totaling approximately 167,000 square
feet. This acquisition is adjacent to the Orlando International Airport and supports the
Company's effort to further expand its presence in Southeast Orlando.
Also in the three months ended December 31, 2022, the
Company acquired the 1% noncontrolling partnership interest in
Speed Distribution Center in San
Diego for $18,599,000.
EastGroup owns and now controls 100% of the property.
In aggregate, during 2022, EastGroup acquired 1,706,000 square
feet of operating properties for $359,130,000, 1,044,000 square feet of value-add
properties for $122,921,000, 456.3
acres of development land for $123,717,000, and the 1% noncontrolling
partnership interest in Speed Distribution Center for $18,599,000.
Also during the year ended December 31, 2022, the Company
sold three operating properties totaling 287,000 square feet, for
$52,410,000. The sales generated
gains of $40,999,000, which are
included in Gain on sales of real estate investments; the
gains are excluded from FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the fourth quarter of 2022, EastGroup began construction
of one new development project in Fort
Worth, which will contain a total of 351,000 square feet and
has projected total costs of $45,000,000.
The development projects started during 2022 are detailed in the
table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development Projects Started in
2022
|
|
Location
|
|
Size
|
|
Actual or Anticipated
Conversion Date
|
|
Projected Total
Costs
|
|
|
|
|
|
(Square feet)
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
World Houston
47
|
|
Houston, TX
|
|
139,000
|
|
|
11/2022
|
|
$
|
18,600
|
|
|
Horizon West
4
|
|
Orlando, FL
|
|
295,000
|
|
|
12/2022
|
|
29,500
|
|
|
SunCoast 11
|
|
Fort Myers,
FL
|
|
79,000
|
|
|
04/2023
|
|
9,900
|
|
|
Arlington Tech
3
|
|
Fort Worth,
TX
|
|
77,000
|
|
|
02/2024
|
|
10,300
|
|
|
Gateway 2
|
|
Miami, FL
|
|
133,000
|
|
|
02/2024
|
|
23,700
|
|
|
Hillside 1
|
|
Greenville,
SC
|
|
122,000
|
|
|
02/2024
|
|
11,600
|
|
|
Horizon West
1
|
|
Orlando, FL
|
|
97,000
|
|
|
03/2024
|
|
13,200
|
|
|
Steele Creek 11 &
12
|
|
Charlotte,
NC
|
|
241,000
|
|
|
04/2024
|
|
25,900
|
|
|
Springwood 1 &
2
|
|
Houston, TX
|
|
292,000
|
|
|
05/2024
|
|
33,300
|
|
|
Stonefield 35
1-3
|
|
Austin, TX
|
|
274,000
|
|
|
06/2024
|
|
35,300
|
|
|
SunCoast 10
|
|
Fort Myers,
FL
|
|
100,000
|
|
|
06/2024
|
|
13,600
|
|
|
Basswood 3-5
|
|
Fort Worth,
TX
|
|
351,000
|
|
|
08/2024
|
|
45,000
|
|
|
McKinney 1 &
2
|
|
Dallas, TX
|
|
172,000
|
|
|
08/2024
|
|
27,300
|
|
|
Cass White 1 &
2
|
|
Atlanta, GA
|
|
296,000
|
|
|
10/2024
|
|
31,900
|
|
|
Total
Development Projects Started
|
|
|
|
2,668,000
|
|
|
|
|
$
|
329,100
|
|
|
At December 31, 2022, EastGroup's
development and value-add program consisted of 20 projects
(3,981,000 square feet) in 12 cities. The projects, which were
collectively 38% leased as of February 6,
2023, have a projected total cost of $494,100,000, of which $169,269,000 remained to be funded as of
December 31, 2022.
During the fourth quarter of 2022, EastGroup transferred eight
projects to the operating portfolio (at the earlier of 90%
occupancy or one year after completion/value-add acquisition date).
The projects, which are located in seven different cities, contain
1,304,000 square feet and were collectively 100% leased as of
February 6, 2023.
The development and value-add properties transferred to the
operating portfolio during 2022 are detailed in the table
below:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development and Value-Add Properties
Transferred to the Operating Portfolio in
2022
|
|
Location
|
|
Size
|
|
Conversion Date
|
|
Cumulative Cost as of
12/31/22
|
|
Percent Leased as
of 2/6/23
|
|
|
|
|
(Square feet)
|
|
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Access Point 1
(1)
|
|
Greenville,
SC
|
|
156,000
|
|
|
01/2022
|
|
$
|
13,046
|
|
|
100 %
|
Speed Distribution
Center
|
|
San Diego,
CA
|
|
519,000
|
|
|
03/2022
|
|
72,428
|
|
|
100 %
|
Access Point 2
(1)
|
|
Greenville,
SC
|
|
159,000
|
|
|
05/2022
|
|
12,336
|
|
|
100 %
|
Grand Oaks 75
3
|
|
Tampa, FL
|
|
136,000
|
|
|
06/2022
|
|
11,644
|
|
|
100 %
|
Siempre Viva 3-6
(1)
|
|
San Diego,
CA
|
|
547,000
|
|
|
06/2022
|
|
133,246
|
|
|
100 %
|
Steele Creek
8
|
|
Charlotte,
NC
|
|
72,000
|
|
|
07/2022
|
|
8,291
|
|
|
100 %
|
CreekView 9 &
10
|
|
Dallas, TX
|
|
145,000
|
|
|
08/2022
|
|
16,176
|
|
|
100 %
|
Gateway 3
|
|
Miami, FL
|
|
133,000
|
|
|
08/2022
|
|
18,456
|
|
|
100 %
|
Ridgeview 3
|
|
San Antonio,
TX
|
|
88,000
|
|
|
08/2022
|
|
9,400
|
|
|
100 %
|
Americas Ten
2
|
|
El Paso, TX
|
|
169,000
|
|
|
09/2022
|
|
14,403
|
|
|
100 %
|
Horizon West 2 &
3
|
|
Orlando, FL
|
|
210,000
|
|
|
09/2022
|
|
18,860
|
|
|
83 %
|
Mesa Gateway
(1)
|
|
Phoenix, AZ
|
|
147,000
|
|
|
11/2022
|
|
18,946
|
|
|
100 %
|
World Houston
47
|
|
Houston, TX
|
|
139,000
|
|
|
11/2022
|
|
17,263
|
|
|
100 %
|
45 Crossing
|
|
Austin, TX
|
|
177,000
|
|
|
12/2022
|
|
25,302
|
|
|
100 %
|
Basswood 1 &
2
|
|
Fort Worth,
TX
|
|
237,000
|
|
|
12/2022
|
|
23,980
|
|
|
100 %
|
Horizon West
4
|
|
Orlando, FL
|
|
295,000
|
|
|
12/2022
|
|
25,308
|
|
|
100 %
|
SunCoast 12
|
|
Fort Myers,
FL
|
|
79,000
|
|
|
12/2022
|
|
8,335
|
|
|
100 %
|
Tri-County Crossing
5
|
|
San Antonio,
TX
|
|
106,000
|
|
|
12/2022
|
|
11,151
|
|
|
100 %
|
Tri-County Crossing
6
|
|
San Antonio,
TX
|
|
124,000
|
|
|
12/2022
|
|
10,373
|
|
|
100 %
|
Total
Projects Transferred
|
|
|
|
3,638,000
|
|
|
|
|
$
|
468,944
|
|
|
99 %
|
|
|
|
|
|
|
|
|
|
|
|
Projected Stabilized Yield (2)
|
|
7.1 %
|
|
|
|
|
|
|
|
|
1
|
Represents value-add
acquisitions.
|
2
|
Weighted average
yield based on projected stabilized annual property net operating
income on a straight-line basis at 100% occupancy divided by
projected total costs.
|
Subsequent to quarter-end, EastGroup began construction of two
additional projects. Riverside 1
& 2 in Atlanta will contain
284,000 square feet and has a projected total cost of approximately
$34,000,000. In Orlando, Horizon West 10, which will contain
357,000 square feet, has a projected total cost of approximately
$45,000,000.
DIVIDENDS
EastGroup declared a cash dividend of $1.25 per share in the fourth quarter of 2022.
The fourth quarter dividend, which was paid on January 13, 2023, was the Company's 172nd
consecutive quarterly cash distribution to shareholders. The
Company has increased or maintained its dividend for 30 consecutive
years and has increased it 27 years over that period, including
increases in each of the last 11 years. The annualized
dividend rate of $5.00 per share
yielded 2.9% on the closing stock price of $171.62 on February 6,
2023.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance
sheet. Debt-to-total market capitalization was 22.4% at
December 31, 2022. The
Company's interest and fixed charge coverage ratio was 7.81x and
8.77x for the three and twelve months ended December 31, 2022, respectively. The Company's
ratio of debt to earnings before interest, taxes, depreciation and
amortization for real estate ("EBITDAre") was 5.12x and 5.52x for
the three and twelve months ended December
31, 2022, respectively. EBITDAre and the Company's interest
and fixed charge coverage ratio are non-GAAP financial measures
defined under Definitions later in this release.
Reconciliations of Net Income to EBITDAre and the Company's
interest and fixed charge coverage ratio are presented in the
attached schedule "Reconciliations of GAAP to Non-GAAP
Measures."
During the fourth quarter, EastGroup issued and sold 1,500
shares of common stock under its continuous common equity offering
program at an average price of $163.33 per share, providing aggregate net
proceeds to the Company of approximately $186,000. During the twelve months ended
December 31, 2022, EastGroup issued
and sold 393,406 shares of common stock under the continuous common
equity offering program at an average price of $194.17 per share, providing aggregate net
proceeds to the Company of approximately $75,375,000. EastGroup also issued 1,868,809
shares of the Company's common stock in connection with the
acquisition of real estate during the twelve months ended
December 31, 2022.
As previously announced, the Company and a group of lenders
agreed to terms on the private placement of two senior unsecured
notes totaling $150,000,000. One note
for $75,000,000 has an 11-year term
and a fixed interest rate of 4.90% with semi-annual interest-only
payments. The other $75,000,000 note
has a 12-year term and a fixed interest rate of 4.95% with
semi-annual interest-only payments. The notes, dated August 16, 2022, were issued and sold on
October 12, 2022. 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.
During the fourth quarter, the Company agreed to terms on a
$100,000,000 senior unsecured term
loan with interest only payments, bearing interest at the annual
rate of SOFR plus an applicable margin based on the Company's
senior unsecured long-term debt rating. The loan closed and funded
in January 2023 and has a seven-year
term. The Company also entered into an interest rate swap agreement
to convert the loan's SOFR rate component to a fixed interest rate
for the entire term of the loan, providing a total effective fixed
interest rate of 5.27%.
During the three months ended December 31, 2022, EastGroup
and a group of banks agreed to expand the capacity on its unsecured
bank credit facilities from $475
million to $675 million
effective January 2023. In
conjunction with the amendment, LIBOR was replaced by SOFR as the
benchmark interest rate. The maturity date remains July 30, 2025.
During the twelve months ended December 31, 2022, the
Company closed a total of $525,000,000 in unsecured debt with a weighted
average interest rate of 3.82%. Also during 2022, EastGroup repaid
a maturing $75,000,000 senior
unsecured term loan with an effective fixed interest rate of 3.03%.
The Company also refinanced a $100,000,000 senior unsecured term loan with five
years remaining and reduced the effective fixed interest rate by 60
basis points to 1.80% during 2022.
COMPANY UPDATES
David H. Hoster II, Chairman of
the Company's Board of Directors (the "Board"), and Hayden C. Eaves III, a member of the Board, will
not be standing for re-election at the Company's upcoming 2023
Annual Meeting of Shareholders. Mr. Hoster has served as Chairman
of the Board since 2016 and as a director since 1993. He also
served as the Company's Chief Executive Officer from 1997 to 2015
and President from 1993 to 2015. Mr. Eaves has served as a director
since 2002, and he currently serves on the Board's Compensation
Committee.
Mr. Loeb stated, "I would like to thank David and Hayden for
their leadership, guidance and service to the Company over the
years. As CEO and later as Chairman, David led the Company through
various economic cycles and periods of growth, while helping build
the positive culture we enjoy today. His leadership and industrial
real estate knowledge and expertise have been valuable to the
Company and the Board. Hayden has made significant contributions to
the Board through his years of experience in the real estate
market, including real estate development and operations. Both
David and Hayden have played important roles in the success of the
Company, and we thank them both for their contributions."
OUTLOOK FOR 2023
EPS for 2023 is estimated to be in the range of $3.22 to $3.42. FFO per share attributable to
common stockholders for 2023 is estimated to be in the range of
$7.30 to $7.50. The table below reconciles projected net
income attributable to common stockholders to projected FFO. The
Company is providing a projection of estimated net income
attributable to common stockholders solely to satisfy the
disclosure requirements of the U.S. Securities and Exchange
Commission.
EastGroup's projections are based on management's current
beliefs and assumptions about our business, the industry and the
markets in which we operate; there are known and unknown risks and
uncertainties associated with these projections. We assume no
obligation to update publicly any forward-looking statements,
including our outlook for 2023, whether as a result of new
information, future events or otherwise. Please refer to the
"Forward-Looking Statements" disclosures included in this earnings
release and "Risk Factors" disclosed in our annual and quarterly
reports filed with the Securities and Exchange Commission for more
information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low Range
|
|
High Range
|
|
|
Q1 2023
|
|
Y/E 2023
|
|
Q1 2023
|
|
Y/E 2023
|
|
|
(In thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders
|
|
$
|
33,789
|
|
|
141,496
|
|
|
37,279
|
|
|
150,276
|
|
Depreciation and
amortization
|
|
42,466
|
|
|
179,162
|
|
|
42,466
|
|
|
179,162
|
|
Funds from operations
attributable to common stockholders*
|
|
$
|
76,255
|
|
|
320,658
|
|
|
79,745
|
|
|
329,438
|
|
|
|
|
|
|
|
|
|
|
Diluted
shares
|
|
43,628
|
|
|
43,902
|
|
|
43,628
|
|
|
43,902
|
|
Per share data
(diluted):
|
|
|
|
|
|
|
|
|
Net
income attributable to common stockholders
|
|
$
|
0.77
|
|
|
3.22
|
|
|
0.85
|
|
|
3.42
|
|
Funds
from operations attributable to common stockholders
|
|
1.75
|
|
|
7.30
|
|
|
1.83
|
|
|
7.50
|
|
|
*This is a non-GAAP
financial measure. Please refer to Definitions.
|
The following
assumptions were used for the mid-point:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metrics
|
|
|
|
Initial Guidance for Year 2023
|
|
|
|
Actual for Year 2022
|
FFO per
share
|
|
|
|
$7.30 -
$7.50
|
|
|
|
$7.00
|
FFO per share increase
over prior year
|
|
|
|
5.7 %
|
|
|
|
14.9 %
|
Same PNOI growth: cash
basis(1)
|
|
|
|
5.5% -
6.5%(2)
|
|
|
|
8.9 %
|
Average month-end
occupancy - operating portfolio
|
|
|
|
96.7% -
97.7%
|
|
|
|
98.0 %
|
Lease termination fee
income
|
|
|
|
$1.0 million
|
|
|
|
$2.7 million
|
Reserves of
uncollectible rent
(Currently no identified bad debt for
2023)
|
|
|
|
$2.0 million
|
|
|
|
$138,000
|
Development
starts:
|
|
|
|
|
|
|
|
|
Square feet
|
|
|
|
2.7 million
|
|
|
|
2.7 million
|
Projected total
investment
|
|
|
|
$330 million
|
|
|
|
$329 million
|
Value-add property
acquisitions (Projected total investment)
|
|
|
|
none
|
|
|
|
$135 million
|
Operating property
acquisitions
|
|
|
|
$50 million
|
|
|
|
$378 million
|
Operating property
dispositions
(Potential gains on dispositions are not
included in the projections)
|
|
|
|
$70 million
|
|
|
|
$52 million
|
Unsecured debt closing
in period
|
|
|
|
$350 million at 5.00%
weighted
average interest rate
|
|
|
|
$525 million at 3.82%
weighted
average interest rate
|
Common stock
issuances
|
|
|
|
$100 million
|
|
|
|
$75 million
|
General and
administrative expense
|
|
|
|
$17.4
million
|
|
|
|
$16.4
million
|
1
|
Excludes
straight-line rent adjustments, amortization of market rent
intangibles for acquired leases and income from lease
terminations.
|
2
|
Includes properties
which have been in the operating portfolio since 1/1/22 and are
projected to be in the operating portfolio through 12/31/23;
includes 46,583,000 square feet.
|
DEFINITIONS
The Company's chief decision makers use two primary measures of
operating results in making decisions: (1) funds from operations
attributable to common stockholders ("FFO") and (2) property net
operating income ("PNOI"), as defined below.
FFO is computed in accordance with standards established by the
National Association of Real Estate Investment Trusts, Inc.
("Nareit"). Nareit's guidance allows preparers an option as
it pertains to whether gains or losses on sale, or impairment
charges, on real estate assets incidental to a real estate
investment trust's ("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. 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 is 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. EastGroup sometimes refers to PNOI from
Same Properties as "Same PNOI" in this press release and the
accompanying reconciliation; the Company also presents Same PNOI
Excluding Income from Lease Terminations. The Company presents Same
PNOI and Same PNOI Excluding Income from Lease Terminations 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. The Company
believes it is useful to evaluate Same PNOI Excluding Income from
Lease Terminations on both a straight-line and cash basis. The
straight-line basis is calculated by averaging the customers' rent
payments over the lives of the leases; GAAP requires the
recognition of rental income on a straight-line basis. The cash
basis excludes adjustments for straight-line rent and amortization
of market rent intangibles for acquired leases; cash basis is an
indicator of the rents charged to customers by the Company during
the periods presented and is useful in analyzing the embedded rent
growth in the Company's portfolio. "Same Properties" is defined as
operating properties owned during the entire current period and
prior year reporting period. Operating properties are stabilized
real estate properties (land including building and improvements)
that make up the Company's operating portfolio. Properties
developed or acquired are excluded from the same property pool
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.
FFO and PNOI 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 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.
The Company's chief decision makers also use Earnings Before
Interest, Taxes, Depreciation and Amortization for Real Estate
("EBITDAre") in making decisions. EBITDAre is computed in
accordance with standards established by Nareit and 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 ratio is a
non-GAAP financial measure calculated by dividing the Company's
EBITDAre by its interest expense. We believe this ratio is useful
to investors because it provides 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 fourth quarter, review the Company's current
operations, and present its earnings outlook for 2023 on
Wednesday, February 8, 2023, at
11:00 a.m. Eastern Time. A live
broadcast of the conference call is available by dialing
1-888-346-0688 (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 Wednesday, February 15, 2023. The telephone
replay can be accessed by dialing 1-877-344-7529 (access code
5810289), 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. (NYSE: EGP), a member of the S&P
Mid-Cap 400 and Russell 1000 Indexes, 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 20,000 to 100,000
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. The Company's portfolio, including development
projects and value-add acquisitions in lease-up and under
construction, currently includes approximately 56.6 million square
feet. EastGroup Properties, Inc. press releases are available
on the Company's website at www.eastgroup.net.
The Company announces information about the Company and its
business to investors and the public using the Company's website
(eastgroup.net), including the investor relations website
(investor.eastgroup.net), filings with the Securities and Exchange
Commission, press releases, public conference calls, and webcasts.
The Company also uses social media to communicate with its
investors and the public. While not all the information that the
Company posts to the Company's website or on the Company's social
media channels is of a material nature, some information could be
deemed to be material. Therefore, the Company encourages investors,
the media, and others interested in the Company to review the
information that it posts on the social media channels, including
Facebook (facebook.com/eastgroupproperties), Twitter
(twitter.com/eastgroupprop), and LinkedIn
(linkedin.com/company/eastgroup-properties-inc). The list of social
media channels that the company uses may be updated on its investor
relations website from time to time. The information contained on,
or that may be accessed through, our website or any of our social
media channels is not incorporated by reference into, and is not a
part of, this document.
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 "may," "will," "seek,"
"expects," "anticipates," "believes," "targets," "intends,"
"should," "estimates," "could," "continue," "assume," "projects,"
"goals," or "plans" 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:
- international, national, regional and local economic
conditions;
- disruption in supply and delivery chains;
- construction costs could increase as a result of inflation
impacting the costs to develop properties;
- availability of financing and capital, increase in interest
rates, and ability to raise equity capital on attractive
terms;
- financing risks, including the risks that our cash flows from
operations may be insufficient to meet required payments of
principal and interest, and we may be unable to refinance our
existing debt upon maturity or obtain new financing on attractive
terms or at all;
- our ability to retain our credit agency ratings;
- our ability to comply with applicable financial covenants;
- the competitive environment in which the Company operates;
- fluctuations of occupancy or rental rates;
- potential defaults (including bankruptcies or insolvency) on or
non-renewal of leases by tenants, or our ability to lease space at
current or anticipated rents, particularly in light of impacts of
inflation;
- potential changes in the law or governmental regulations and
interpretations of those laws and regulations, including changes in
real estate laws or REIT or corporate income tax laws, and
potential increases in real property tax rates;
- our ability to maintain our qualification as a REIT;
- acquisition and development risks, including failure of such
acquisitions and development projects to perform in accordance with
projections;
- natural disasters such as fires, floods, tornadoes, hurricanes
and earthquakes;
- pandemics, epidemics or other public health emergencies, such
as the coronavirus pandemic;
- the terms of governmental regulations that affect us and
interpretations of those regulations, including the costs of
compliance with those regulations, changes in real estate and
zoning laws and increases in real property tax rates;
- credit risk in the event of non-performance by the
counterparties to our interest rate swaps;
- the discontinuation of London Interbank Offered Rate;
- lack of or insufficient amounts of insurance;
- litigation, including costs associated with prosecuting or
defending claims and any adverse outcomes;
- our ability to attract and retain key personnel;
- risks related to the failure, inadequacy or interruption of our
data security systems and processes;
- potentially catastrophic events such as acts of war, civil
unrest and terrorism; and
- environmental liabilities, including costs, fines or penalties
that may be incurred due to necessary remediation of contamination
of properties presently owned or previously owned by us.
All forward-looking statements should be read in light of the
risks identified in Part I, Item 1A. Risk Factors within the
Company's most recent Annual Report on Form 10-K and in its
subsequent Quarterly Reports on Form 10-Q.
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
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUES
|
|
|
|
|
|
|
|
|
Income from real estate
operations
|
|
$
|
129,797
|
|
|
107,349
|
|
|
486,817
|
|
|
409,412
|
|
Other
revenue
|
|
43
|
|
|
23
|
|
|
208
|
|
|
63
|
|
|
|
129,840
|
|
|
107,372
|
|
|
487,025
|
|
|
409,475
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
Expenses from real
estate operations
|
|
35,272
|
|
|
29,557
|
|
|
133,915
|
|
|
115,078
|
|
Depreciation and
amortization
|
|
40,559
|
|
|
33,174
|
|
|
153,638
|
|
|
127,099
|
|
General and
administrative
|
|
3,859
|
|
|
3,623
|
|
|
16,362
|
|
|
15,704
|
|
Indirect leasing
costs
|
|
136
|
|
|
103
|
|
|
546
|
|
|
700
|
|
|
|
79,826
|
|
|
66,457
|
|
|
304,461
|
|
|
258,581
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(11,648)
|
|
|
(8,072)
|
|
|
(38,499)
|
|
|
(32,945)
|
|
Gain on sales of real
estate investments
|
|
—
|
|
|
38,859
|
|
|
40,999
|
|
|
38,859
|
|
Other
|
|
322
|
|
|
209
|
|
|
1,210
|
|
|
830
|
|
NET INCOME
|
|
38,688
|
|
|
71,911
|
|
|
186,274
|
|
|
157,638
|
|
Net income attributable
to noncontrolling interest in joint ventures
|
|
(17)
|
|
|
(22)
|
|
|
(92)
|
|
|
(81)
|
|
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS
|
|
38,671
|
|
|
71,889
|
|
|
186,182
|
|
|
157,557
|
|
Other comprehensive
income (loss) - interest rate swaps
|
|
(4,757)
|
|
|
3,778
|
|
|
35,069
|
|
|
12,054
|
|
TOTAL COMPREHENSIVE INCOME
|
|
$
|
33,914
|
|
|
75,667
|
|
|
221,251
|
|
|
169,611
|
|
|
|
|
|
|
|
|
|
|
BASIC PER COMMON SHARE DATA FOR NET INCOME
ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders
|
|
$
|
0.89
|
|
|
1.76
|
|
|
4.37
|
|
|
3.91
|
|
Weighted average shares
outstanding
|
|
43,472
|
|
|
40,844
|
|
|
42,599
|
|
|
40,255
|
|
DILUTED PER COMMON SHARE DATA FOR NET INCOME
ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders
|
|
$
|
0.89
|
|
|
1.75
|
|
|
4.36
|
|
|
3.90
|
|
Weighted average shares
outstanding
|
|
43,593
|
|
|
41,011
|
|
|
42,712
|
|
|
40,377
|
|
|
|
|
|
|
|
|
|
|
EASTGROUP PROPERTIES, INC. AND
SUBSIDIARIES
|
RECONCILIATIONS OF GAAP TO NON-GAAP
MEASURES
|
(IN THOUSANDS, EXCEPT PER SHARE
DATA)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS
|
|
$
|
38,671
|
|
|
71,889
|
|
|
186,182
|
|
|
157,557
|
|
Depreciation and
amortization
|
|
40,559
|
|
|
33,174
|
|
|
153,638
|
|
|
127,099
|
|
Company's share of
depreciation from unconsolidated investment
|
|
31
|
|
|
34
|
|
|
124
|
|
|
136
|
|
Depreciation and
amortization from noncontrolling interest
|
|
(3)
|
|
|
—
|
|
|
(17)
|
|
|
—
|
|
Gain on sales of real
estate investments
|
|
—
|
|
|
(38,859)
|
|
|
(40,999)
|
|
|
(38,859)
|
|
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
|
$
|
79,258
|
|
|
66,238
|
|
|
298,928
|
|
|
245,933
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
38,688
|
|
|
71,911
|
|
|
186,274
|
|
|
157,638
|
|
Interest expense
(1)
|
|
11,648
|
|
|
8,072
|
|
|
38,499
|
|
|
32,945
|
|
Depreciation and
amortization
|
|
40,559
|
|
|
33,174
|
|
|
153,638
|
|
|
127,099
|
|
Company's share of
depreciation from unconsolidated investment
|
|
31
|
|
|
34
|
|
|
124
|
|
|
136
|
|
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION ("EBITDA")
|
|
90,926
|
|
|
113,191
|
|
|
378,535
|
|
|
317,818
|
|
Gain on sales of real
estate investments
|
|
—
|
|
|
(38,859)
|
|
|
(40,999)
|
|
|
(38,859)
|
|
EBITDA FOR REAL ESTATE
("EBITDAre")
|
|
$
|
90,926
|
|
|
74,332
|
|
|
337,536
|
|
|
278,959
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
1,861,744
|
|
|
1,451,778
|
|
|
1,861,744
|
|
|
1,451,778
|
|
Debt-to-EBITDAre ratio
|
|
5.12
|
|
|
4.88
|
|
|
5.52
|
|
|
5.20
|
|
DILUTED PER COMMON SHARE DATA FOR NET INCOME
ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders
|
|
$
|
0.89
|
|
|
1.75
|
|
|
4.36
|
|
|
3.90
|
|
FFO attributable to
common stockholders
|
|
$
|
1.82
|
|
|
1.62
|
|
|
7.00
|
|
|
6.09
|
|
Weighted average shares
outstanding for EPS and FFO purposes
|
|
43,593
|
|
|
41,011
|
|
|
42,712
|
|
|
40,377
|
|
|
|
|
|
|
|
|
|
|
(1) Net of
capitalized interest of $3,878 and $2,342 for the three months
ended December 31, 2022 and 2021, respectively; and $12,393
and $9,028 for the twelve months ended December 31, 2022 and
2021, respectively.
|
EASTGROUP PROPERTIES, INC. AND
SUBSIDIARIES
|
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(Continued)
|
(IN THOUSANDS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
38,688
|
|
|
71,911
|
|
|
186,274
|
|
|
157,638
|
|
Gain on sales of real
estate investments
|
|
—
|
|
|
(38,859)
|
|
|
(40,999)
|
|
|
(38,859)
|
|
Interest
income
|
|
(58)
|
|
|
—
|
|
|
(100)
|
|
|
(6)
|
|
Other
revenue
|
|
(43)
|
|
|
(23)
|
|
|
(208)
|
|
|
(63)
|
|
Indirect leasing
costs
|
|
136
|
|
|
103
|
|
|
546
|
|
|
700
|
|
Depreciation and
amortization
|
|
40,559
|
|
|
33,174
|
|
|
153,638
|
|
|
127,099
|
|
Company's share of
depreciation from unconsolidated investment
|
|
31
|
|
|
34
|
|
|
124
|
|
|
136
|
|
Interest expense
(1)
|
|
11,648
|
|
|
8,072
|
|
|
38,499
|
|
|
32,945
|
|
General and
administrative expense (2)
|
|
3,859
|
|
|
3,623
|
|
|
16,362
|
|
|
15,704
|
|
Noncontrolling interest
in PNOI of consolidated joint ventures
|
|
(21)
|
|
|
(15)
|
|
|
(105)
|
|
|
(61)
|
|
PROPERTY NET OPERATING INCOME
("PNOI")
|
|
94,799
|
|
|
78,020
|
|
|
354,031
|
|
|
295,233
|
|
PNOI from 2021 and 2022
acquisitions
|
|
(5,712)
|
|
|
(1,514)
|
|
|
(17,146)
|
|
|
(2,252)
|
|
PNOI from 2021 and 2022
development and value-add properties
|
|
(12,306)
|
|
|
(3,830)
|
|
|
(37,329)
|
|
|
(9,937)
|
|
PNOI from 2021 and 2022
operating property dispositions
|
|
—
|
|
|
(678)
|
|
|
(237)
|
|
|
(3,263)
|
|
Other PNOI
|
|
102
|
|
|
(57)
|
|
|
323
|
|
|
(223)
|
|
SAME PNOI (Straight-Line Basis)
|
|
76,883
|
|
|
71,941
|
|
|
299,642
|
|
|
279,558
|
|
Net lease termination
fee income from same properties
|
|
(311)
|
|
|
(464)
|
|
|
(1,426)
|
|
|
(1,411)
|
|
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS
(Straight-Line Basis)
|
|
76,572
|
|
|
71,477
|
|
|
298,216
|
|
|
278,147
|
|
Straight-line rent
adjustments for same properties
|
|
(362)
|
|
|
(1,331)
|
|
|
(1,926)
|
|
|
(5,744)
|
|
Acquired leases -
market rent adjustment amortization for same properties
|
|
(106)
|
|
|
(121)
|
|
|
(437)
|
|
|
(662)
|
|
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS
(Cash Basis)
|
|
$
|
76,104
|
|
|
70,025
|
|
|
295,853
|
|
|
271,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of
capitalized interest of $3,878 and $2,342 for the three months
ended December 31, 2022 and 2021, respectively; and $12,393
and $9,028 for the twelve months ended December 31, 2022 and
2021, respectively.
|
(2) Net of
capitalized development costs of $2,511 and $2,402 for the three
months ended December 31, 2022 and 2021, respectively; and
$9,985 and $7,713 for the twelve months ended December 31,
2022 and 2021, respectively.
|
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SOURCE EastGroup Properties