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Sep 30, 2023
EastGroup Q3 2023 Earnings Report
EastGroup reported strong third-quarter results, with FFO per share increasing by 13% and Same Property Net Operating Income rising by 6.0% on a straight-line basis.
Key Takeaways
EastGroup Properties announced strong third-quarter results, driven by a resilient industrial market and strategic capital allocation. FFO per share increased by 13%, and the company made significant acquisitions and developments.
Net Income Attributable to Common Stockholders was $1.07 Per Diluted Share, compared to $0.87 Per Diluted Share for Third Quarter 2022.
Funds from Operations (FFO) was $2.00 Per Share, up 13.0% from $1.77 Per Share in Q3 2022.
Operating Portfolio was 98.5% Leased and 97.7% Occupied as of September 30, 2023.
Rental Rates on New and Renewal Leases Increased an Average of 55.4% on a Straight-Line Basis.
Forward Guidance
EastGroup estimates EPS for 2023 to be in the range of $4.11 to $4.15 and FFO per share to be in the range of $7.73 to $7.77.
Positive Outlook
- FFO per share is projected to increase 10.7% over the prior year.
- Same PNOI growth is expected to be between 7.3% and 8.3% on a cash basis.
- Average month-end occupancy for the operating portfolio is projected to be between 97.6% and 98.2%.
- Development starts are projected to be around 2.7 million square feet.
- Common stock issuances are estimated at $585 million.
Challenges Ahead
- Reserves of uncollectible rent are estimated at $1.7 million.
- Potential gains on dispositions are not included in the projections.
- General and administrative expenses are projected to be $17.3 million.
- The projections are based on management's current beliefs and assumptions, which are subject to risks and uncertainties.
Historical Earnings Impact
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