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Jun 30, 2020
EastGroup Q2 2020 Earnings Report
EastGroup reported solid Q2 2020 results, surpassing expectations despite the economic shutdown, with strong occupancy and rental rate growth.
Key Takeaways
EastGroup Properties announced strong second-quarter results, with FFO per share increasing by 9.0% to $1.33 and EPS at $0.60. The company's portfolio remained stable with high leased and occupied percentages. Rental rates on new and renewal leases increased by 13.8%.
Net income attributable to common stockholders was $0.60 per share.
Funds from Operations (FFO) increased by 9.0% to $1.33 per share.
Leased percentage was 97.5% and Occupancy was 97.0% as of June 30, 2020.
Rental rates on new and renewal leases increased an average of 13.8%.
Forward Guidance
EastGroup estimates EPS for 2020 to be in the range of $2.23 to $2.33 and FFO per share to be in the range of $5.23 to $5.33.
Positive Outlook
- FFO per share is projected to increase by 6.0% over the prior year period.
- Same PNOI growth on a cash basis is expected to be between 2.0% and 3.0%.
- The company anticipates closing $275 million in unsecured debt at a weighted average interest rate of 2.56%.
- Projected average month-end occupancy is 96.0%.
- The company plans to issue $110 million in common stock.
Challenges Ahead
- The COVID-19 pandemic has disrupted global, national, and local economies and financial markets.
- The company anticipates a decline in occupancy during the remainder of 2020.
- Future impacts of COVID-19 are largely dependent on the severity and duration of the economic uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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