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Sep 30, 2024

EastGroup Q3 2024 Earnings Report

EastGroup Properties reported solid performance in Q3 2024, with increased EPS and FFO.

Key Takeaways

EastGroup Properties announced its Q3 2024 results, highlighting an increase in net income attributable to common stockholders to $1.13 per diluted share, compared to $1.07 in Q3 2023. FFO excluding gains on involuntary conversion and business interruption claims increased by 9.2% to $2.13 per share. The operating portfolio was 96.9% leased and 96.5% occupied. Rental rates on new and renewal leases increased an average of 50.9% on a straight-line basis.

Net income attributable to common stockholders was $1.13 per diluted share, up from $1.07 in Q3 2023.

FFO excluding gains on involuntary conversion and business interruption claims increased 9.2% to $2.13 per share.

Same Property Net Operating Income excluding income from lease terminations increased 5.5% on a straight-line basis.

Rental rates on new and renewal leases increased an average of 50.9% on a straight-line basis.

Total Revenue
$163M
Previous year: $147M
+11.2%
EPS
$2.13
Previous year: $1.95
+9.2%
Occupancy
96.5%
Previous year: 97.7%
-1.2%
Leased
96.9%
Previous year: 98.5%
-1.6%
Gross Profit
$119M
Previous year: $106M
+12.2%
Cash and Equivalents
$17M
Previous year: $374K
+4434.0%
Free Cash Flow
$109M
Total Assets
$4.75B
Previous year: $4.35B
+9.2%

EastGroup

EastGroup

Forward Guidance

EastGroup Properties estimates EPS for 2024 to be in the range of $4.64 to $4.68 and FFO per share to be in the range of $8.33 to $8.37.

Positive Outlook

  • FFO per share is projected to increase over the prior year.
  • Same PNOI growth is expected on a cash basis.
  • Average month-end occupancy is anticipated to remain high.
  • Significant capital proceeds are expected.
  • The company anticipates continued development starts.

Challenges Ahead

  • The projections are based on management's current beliefs and assumptions.
  • There are known and unknown risks and uncertainties associated with these projections.
  • Uncollectible rent reserves are anticipated.
  • Potential gains on dispositions are not included in the projections.
  • The company assumes no obligation to update publicly any forward-looking statements.