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Dec 31, 2020
EastGroup Q4 2020 Earnings Report
EastGroup's Q4 2020 performance exceeded expectations, with FFO per share above pre-COVID forecast and a record high percentage leased.
Key Takeaways
EastGroup Properties reported a net income of $0.94 per diluted share for Q4 2020, compared to $1.28 per diluted share for Q4 2019. Funds from Operations (FFO) were $1.38 per share, an 8.7% increase from Q4 2019. The company's portfolio was 98.0% leased and 97.3% occupied as of December 31, 2020, with average occupancy of 96.9% for the quarter. Rental rates on new and renewal leases increased an average of 15.4% on a straight-line basis.
Net income attributable to common stockholders was $0.94 per diluted share, compared to $1.28 per diluted share for Q4 2019.
Funds from Operations (FFO) increased by 8.7% to $1.38 per share compared to $1.27 per share for Q4 2019.
Leased percentage reached 98.0% and occupancy was 97.3% as of December 31, 2020.
Rental rates on new and renewal leases increased by 15.4% on a straight-line basis.
Forward Guidance
EastGroup estimates EPS for 2021 to be in the range of $2.52 to $2.62 and FFO per share to be in the range of $5.63 to $5.73.
Positive Outlook
- FFO per share increase over prior year 5.6%
- Same PNOI growth: cash basis 3.5% - 4.5%
- Average month-end occupancy 95.9% - 96.9%
- Lease termination fee income $585,000
- Unsecured debt closing in period $250 million at 2.70% weighted average interest rate
Challenges Ahead
- International, national, regional and local economic conditions
- The duration and extent of the impact of coronavirus disease (COVID-19) on our business and the businesses of our tenants (including their ability to timely make rent payments) and the economy generally
- The general level of interest rates and ability to raise equity capital on attractive terms
- Financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all
Historical Earnings Impact
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Avg. Return Before/After Earnings
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