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Mar 31, 2021
EastGroup Q1 2021 Earnings Report
EastGroup's Q1 2021 earnings were announced, revealing significant growth and exceeding expectations, driven by a strong performance in their Sunbelt market portfolio.
Key Takeaways
EastGroup Properties reported a strong first quarter in 2021, with net income attributable to common stockholders increasing to $0.69 per diluted share from $0.60 in the same period last year. Funds from Operations (FFO) also saw a significant rise, reaching $1.45 per share compared to $1.31, marking a 10.7% increase. The company experienced notable growth in same property net operating income and maintained high occupancy rates.
Net income attributable to common stockholders increased to $0.69 per diluted share, up from $0.60 in Q1 2020.
Funds from Operations (FFO) rose by 10.7% to $1.45 per share, compared to $1.31 in the previous year.
Same Property Net Operating Income, excluding income from lease terminations, increased by 5.9% on a cash basis and 6.3% on a straight-line basis.
The company maintained high occupancy rates, with 98.3% leased and 97.2% occupied as of March 31, 2021.
EastGroup
EastGroup
Forward Guidance
EastGroup Properties provided its EPS and FFO per share outlook for 2021, with EPS estimated to be in the range of $2.53 to $2.63 and FFO per share estimated to be in the range of $5.74 to $5.84.
Positive Outlook
- FFO per share is projected to increase 7.6% over the prior year.
- The company anticipates development starts of 2.1 million square feet.
- The company is planning value-add property acquisitions with a projected total investment of $35 million.
- Unsecured debt closing in the period is expected to be $250 million at a 2.58% weighted average interest rate.
- Common stock issuances are projected to reach $140 million.
Challenges Ahead
- Reserves for uncollectible rent are estimated at $1.1 million.
- Operating property dispositions are projected at $60 million.
- General and administrative expenses are expected to be $17.8 million.
- Projections are based on management's current beliefs and assumptions, and are subject to risks and uncertainties.
- Potential gains on dispositions are not included in the projections.