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Jun 30, 2022
EastGroup Q2 2022 Earnings Report
EastGroup reported strong growth in FFO per share, driven by record highs in leasing, occupancy, and same-store net operating income.
Key Takeaways
EastGroup Properties announced strong second-quarter results, with a 17% increase in FFO per share. The company benefited from robust leasing activity, high occupancy rates, and strong same-store net operating income growth. EGP remains cautious about the global economy and rising interest rates but is optimistic about long-term growth prospects.
Net income attributable to common stockholders was $1.09 per diluted share, compared to $0.69 per diluted share in Q2 2021.
Funds from Operations (FFO) was $1.72 per share, a 17.0% increase compared to $1.47 per share in Q2 2021.
Same Property Net Operating Income (excluding income from lease terminations) increased by 9.5% on a cash basis and 7.7% on a straight-line basis.
The operating portfolio was 99.1% leased and 98.5% occupied as of June 30, 2022, with an average occupancy of 98.1% for the quarter.
Forward Guidance
EastGroup estimates its EPS for 2022 to be in the range of $4.03 to $4.15 and FFO per share to be in the range of $6.84 to $6.96.
Positive Outlook
- FFO per share is projected to increase 13.3% over the prior year.
- Same PNOI growth on a cash basis is expected to be between 8.0% and 9.0%.
- Average month-end occupancy for the operating portfolio is projected to be between 97.3% and 98.3%.
- The company anticipates $2.5 million in lease termination fee income.
- Development starts are projected to reach 3.2 million square feet.
Challenges Ahead
- The projections are based on management's current beliefs and assumptions, which are subject to risks and uncertainties.
- Economic conditions and the impact of the COVID-19 pandemic could affect business operations.
- Disruptions in supply and delivery chains may impact development costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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