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Sep 30, 2020
EastGroup Q3 2020 Earnings Report
EastGroup reported strong Q3 2020 results, surpassing expectations despite global turbulence, with significant increases in FFO and PNOI.
Key Takeaways
EastGroup Properties announced a strong third quarter with FFO per share increasing by 6.3% to $1.36 and EPS at $0.62. The company's portfolio performance exceeded expectations, with same property net operating income increasing by 3.0% on a cash basis. EGP also increased the dividend by $0.04 per share (5.3%) to $0.79 per share.
FFO increased to $1.36 per share, a 6.3% increase year-over-year.
EPS increased to $0.62, compared to $0.60 for the same period of 2019.
Same Property Net Operating Income increased by 3.0% on a cash basis.
The company's portfolio was 97.8% leased and 96.4% occupied as of September 30, 2020.
Forward Guidance
EastGroup estimates EPS for 2020 to be in the range of $2.40 to $2.44 and FFO per share to be in the range of $5.33 to $5.37.
Positive Outlook
- FFO per share is projected to increase 7.4% over the prior year.
- Same PNOI growth on a cash basis is expected to be between 2.5% and 3.5%.
- Average month-end occupancy is anticipated to be 96.5%.
- Development starts are projected to be 825,000 square feet.
- Unsecured debt closing in the period is expected to be $275 million at a weighted average interest rate of 2.56%.
Challenges Ahead
- The COVID-19 pandemic has disrupted global, national, and local economies and the financial markets.
- The future impact of COVID-19 on the Company is largely dependent on the severity and duration of the economic uncertainty and its effect on EastGroup’s customers
- It is difficult to predict the future impact on our business, financial condition, results of operations and cash flows.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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