EastGroup Q4 2021 Earnings Report
Key Takeaways
EastGroup Properties reported a strong fourth quarter in 2021, with net income attributable to common stockholders increasing to $1.75 per diluted share, up from $0.94 in Q4 2020. Funds from Operations (FFO) also saw a substantial increase, rising to $1.62 per share compared to $1.38 in the previous year. The company's operating portfolio remained highly leased and occupied, and rental rates on new and renewal leases increased significantly.
Net income attributable to common stockholders was $1.75 per diluted share, compared to $0.94 for Q4 2020.
Funds from Operations (FFO) increased by 17.4% to $1.62 per share, compared to $1.38 for Q4 2020.
The operating portfolio was 98.7% leased and 97.4% occupied as of December 31, 2021.
Rental rates on new and renewal leases increased an average of 31.5% on a straight-line basis.
EastGroup
EastGroup
Forward Guidance
EastGroup Properties estimates the EPS for 2022 to be in the range of $3.19 to $3.33 and the FFO per share to be in the range of $6.56 to $6.70.
Positive Outlook
- FFO per share increase over prior year is expected to be 8.9%.
- Same PNOI growth on a cash basis is projected to be between 5.1% and 6.1%.
- Average month-end occupancy for the operating portfolio is expected to be between 96.5% and 97.5%.
- Development starts are projected to be around 2.3 million square feet.
- Unsecured debt closing in the period is expected to be $375 million at a weighted average interest rate of 3.20%.
Challenges Ahead
- Lease termination fee income is estimated at $1.1 million.
- Recoveries (reserves) for uncollectible rent are projected at -$1.5 million.
- Value-add property acquisitions are projected to have a total investment of $46 million.
- Operating property dispositions are projected at $70 million.
- Common stock issuances are expected to be $120 million.