0000049600false00000496002025-02-062025-02-06
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 6, 2025
EASTGROUP PROPERTIES, INC.
(Exact Name of Registrant as Specified in its Charter)
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| | Maryland | | 1-07094 | | 13-2711135 |
| | (State or Other Jurisdiction
of Incorporation) | | (Commission File Number) | | (IRS Employer
Identification No.) |
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157
(Address of Principal Executive Offices, including zip code)
(601) 354-3555
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common stock, $0.0001 par value per share | EGP | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 Results of Operations and Financial Condition
On February 6, 2025, EastGroup Properties, Inc. (the "Company") furnished the following documents: (i) a press release relating to its results of operations for the quarter ended December 31, 2024 and related matters; and (ii) quarterly supplemental financial information for the fiscal quarter ended December 31, 2024. A copy of the press release as well as a copy of the supplemental financial information are made available on the Company's website and are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
The information furnished in this Item 2.02 and in the attached Exhibits 99.1 and 99.2 is deemed to be "furnished" and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference into any filing under the Exchange Act or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filing.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits.
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| Exhibit No. | | Description | |
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| | Press Release dated February 6, 2025. |
| | Quarterly Supplemental Information for the Quarter Ended December 31, 2024. |
| | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 6, 2025
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| | EASTGROUP PROPERTIES, INC. |
| | |
| | By: /s/ BRENT W. WOOD |
| | Brent W. Wood
Executive Vice President, Chief Financial Officer and Treasurer |
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| EastGroup Properties Announces |
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Fourth Quarter and Full Year 2024 Results |
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Fourth Quarter 2024 Highlights
•Net Income Attributable to Common Stockholders of $1.16 Per Diluted Share for Fourth Quarter 2024 Compared to $1.35 Per Diluted Share for Fourth Quarter 2023 (Gains on Sales of Real Estate Investments Were $13 Million, or $0.28 Per Diluted Share, in Fourth Quarter 2023; There Were No Sales in Fourth Quarter 2024)
•Funds from Operations (“FFO”) Excluding Gain on Involuntary Conversion and Business Interruption Claims of $2.15 Per Diluted Share for Fourth Quarter 2024 Compared to $2.03 Per Diluted Share for Fourth Quarter 2023, an Increase of 5.9%
•Same Property Net Operating Income for the Same Property Pool Excluding Income From Lease Terminations Increased 3.6% on a Straight-Line Basis and 3.4% on a Cash Basis for Fourth Quarter 2024 Compared to the Same Period in 2023
•Operating Portfolio was 97.1% Leased and 96.1% Occupied as of December 31, 2024; Average Occupancy of Operating Portfolio was 95.8% for Fourth Quarter 2024 as Compared to 98.1% for Fourth Quarter 2023
•Rental Rates on New and Renewal Leases Increased an Average of 46.6% on a Straight-Line Basis
•Acquired Three Operating Properties Containing 1,790,000 Square Feet and 26.8 Acres of Development Land for Approximately $257 Million
•Started Construction of Five Development Projects Totaling 802,000 Square Feet with Projected Total Costs of Approximately $125 Million
•Transferred One Development Project Containing 357,000 Square Feet to the Operating Portfolio
Full Year 2024 Highlights
•Net Income Attributable to Common Stockholders of $4.66 Per Diluted Share for 2024 Compared to $4.42 Per Diluted Share for 2023 (Gains on Sales of Real Estate Investments Were $9 Million, or $0.18 Per Diluted Share, in 2024 Compared to $18 Million, or $0.40 Per Diluted Share, in 2023)
•FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims of $8.31 Per Diluted Share for 2024 Compared to $7.70 Per Diluted Share for 2023, an Increase of 7.9%
•Same Property Net Operating Income for the Same Property Pool Excluding Income From Lease Terminations Increased 4.8% on a Straight-Line Basis and 5.6% on a Cash Basis for 2024 Compared to 2023
•Average Occupancy of Operating Portfolio was 96.8% for 2024 as Compared to 98.0% for 2023
•Rental Rates on New and Renewal Leases Increased an Average of 53.0% on a Straight-Line Basis
•Acquired Six Operating Properties Containing 2,474,000 Square Feet and 61.1 Acres of Development Land for Approximately $404 Million
•Started Construction of 10 Development Projects Totaling 1,585,000 Square Feet with Projected Total Costs of Approximately $230 Million
•Transferred Seven Development Projects Containing 1,519,000 Square Feet to the Operating Portfolio
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastroup.net
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JACKSON, MISSISSIPPI, February 6, 2025 - EastGroup Properties, Inc. (NYSE: EGP) (the “Company”, “we”, “us” or “EastGroup”) announced today the results of its operations for the three and twelve months ended December 31, 2024.
Commenting on EastGroup’s performance, Marshall Loeb, CEO, stated, “Our consistent, positive performance continues as evidenced by FFO per share excluding gain on involuntary conversion and business interruption claims rising 5.9% for the quarter and 7.9% for the year. The industrial market remains resilient as supported by our Company’s record amount of square footage leased last quarter. Further, the operating landscape is improving with a materially shrinking industrial supply pipeline, while customer demand is showing early signs of recovery. In addition to our operational progress, we made strides to strengthen our balance sheet during the year. Long term, I remain bullish on the continuing external secular trends which benefit our shallow bay, last mile Sunbelt market portfolio.”
EARNINGS PER SHARE
Three Months Ended December 31, 2024
On a diluted per share basis, earnings per common share (“EPS”) were $1.16 for the three months ended December 31, 2024, compared to $1.35 for the same period of 2023. The decrease in EPS was primarily due to the following:
•EastGroup recognized gains on sales of real estate investments of $13,156,000 ($0.28 per share) during the three months ended December 31, 2023. There were no sales during the three months ended December 31, 2024.
•Depreciation and amortization expense was $49,662,000 ($0.99 per diluted share) for the three months ended December 31, 2024, as compared to $45,248,000 ($0.96 per diluted share) for the same period of 2023.
•Weighted average shares increased by 3,359,000 on a diluted basis during the three months ended December 31, 2024, as compared to the same period of 2023.
The decrease in EPS was partially offset by the following:
•The Company’s property net operating income (“PNOI”) was $120,867,000 ($2.40 per diluted share) for the three months ended December 31, 2024, as compared to $109,952,000 ($2.34 per diluted share) for the same period of 2023.
•Interest expense was $9,192,000 ($0.18 per diluted share) for the three months ended December 31, 2024, as compared to $11,108,000 ($0.24 per diluted share) for the same period of 2023.
Twelve Months Ended December 31, 2024
Diluted EPS for the twelve months ended December 31, 2024 was $4.66 compared to $4.42 for the same period of 2023. The increase in EPS was primarily due to the following:
•PNOI was $464,995,000 ($9.51 per diluted share) for the twelve months ended December 31, 2024, as compared to $413,321,000 ($9.12 per diluted share) for the same period of 2023.
•Interest expense was $38,956,000 ($0.80 per diluted share) for the twelve months ended December 31, 2024, as compared to to $47,996,000 ($1.06 per diluted share) for the same period of 2023.
The increase in EPS was partially offset by the following:
•Depreciation and amortization expense was $189,411,000 ($3.87 per diluted share) for the twelve months ended December 31, 2024, as compared to $171,078,000 ($3.77 per diluted share) for the same period of 2023.
•EastGroup recognized gains on sales of real estate investments of $8,751,000 ($0.18 per share) during the twelve months ended December 31, 2024, compared to $17,965,000 ($0.40 per share) during the twelve months ended December 31, 2023.
•Weighted average shares increased by 3,580,000 on a diluted basis during the twelve months ended December 31, 2024, as compared to the same period of 2023.
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended December 31, 2024
For the three months ended December 31, 2024, funds from operations attributable to common stockholders (“FFO”) were $2.15 per diluted share compared to $2.03 per diluted share during the same period of 2023, an increase of 5.9%.
PNOI increased by $10,915,000, or 9.9%, during the three months ended December 31, 2024, compared to the same period of 2023. PNOI increased $4,816,000 from 2023 and 2024 acquisitions, $3,555,000 from newly developed and value-add properties, and $3,396,000 from same property operations (based on the same property pool), and decreased $686,000 from operating properties sold in 2023 and 2024.
Same PNOI Excluding Income from Lease Terminations increased 3.6% on a straight-line basis for the three months ended December 31, 2024, compared to the same period of 2023; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 3.4%.
On a straight-line basis, rental rates on new and renewal leases (representing 4.7% of our total square footage) increased an average of 46.6% during the three months ended December 31, 2024.
Twelve Months Ended December 31, 2024
FFO for the twelve months ended December 31, 2024, was $8.35 per diluted share compared to $7.79 per diluted share during the same period of 2023, an increase of 7.2%.
FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims was $8.31 per diluted share for the twelve months ended December 31, 2024, compared to $7.70 per diluted share for the same period of 2023, an increase of 7.9%.
PNOI increased by $51,674,000, or 12.5%, during the twelve months ended December 31, 2024, compared to the same period of 2023. PNOI increased $20,089,000 from same property operations (based on the same property pool), $18,354,000 from newly developed and value-add properties, and $15,915,000 from 2023 and 2024 acquisitions, and decreased $2,642,000 from operating properties sold in 2023 and 2024.
Same PNOI Excluding Income from Lease Terminations increased 4.8% on a straight-line basis for the twelve months ended December 31, 2024, compared to the same period of 2023; on a cash basis (excluding straight-line rent adjustments and amortization of above/below market rent intangibles), Same PNOI increased 5.6%.
On a straight-line basis, rental rates on new and renewal leases (representing 15.9% of our total square footage) increased an average of 53.0% during the twelve months ended December 31, 2024.
The same property pool for the three and twelve months ended December 31, 2024 includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through December 31, 2024; this pool is comprised of properties containing 51,668,000 square feet.
FFO, FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims, PNOI and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims are presented in the attached schedule “Reconciliations of GAAP to Non-GAAP Measures.”
ACQUISITIONS AND DISPOSITIONS
As previously announced, during the three months ended December 31, 2024, EastGroup acquired three operating properties containing 1,790,000 square feet for approximately $246,426,000.
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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In November, the Company acquired three business distribution buildings, known as Riverpoint Industrial Park, totaling 779,000 square feet, in Atlanta for approximately $87,576,000. This property, which was developed in 2020, is 100% leased to six tenants, and increased the Company’s ownership in Atlanta to approximately 2,246,000 square feet.
Also in November, EastGroup acquired DFW Global Logistics Centre 5-8, four multi-tenant business distribution buildings totaling 492,000 square feet, for approximately $75,852,000. These buildings are located near the Dallas-Fort Worth Airport and are currently 100% leased to 13 tenants.
In December, the Company acquired Akimel Gateway, which contains four business distribution buildings totaling 519,000 square feet in Southeast Phoenix, for approximately $82,998,000. This property was developed in 2022 and is 100% leased to four tenants.
EastGroup also acquired 26.8 acres of development land in the Nashville market for approximately $10,460,000 during the fourth quarter. The site, known as Station 24 Commerce Center Land, is expected to accommodate the future development of four buildings totaling approximately 350,000 square feet.
In aggregate, during the twelve months ended December 31, 2024, EastGroup acquired 2,474,000 square feet of operating properties for $390,011,000 and 61.1 acres of development land for $13,762,000.
For the twelve months ended December 31, 2024, the Company sold a portfolio of properties in the Jackson, MS market totaling 159,000 square feet, for $14,050,000. The sale generated a gain of $8,751,000, which is included in Gain on sales of real estate investments; the gain is excluded from FFO. During the twelve months ended December 31, 2024, EastGroup also sold two land parcels, containing 5.4 acres, for $4,261,000. The land sales generated gains of $362,000, which are not included in FFO.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the fourth quarter of 2024, EastGroup began construction of five new development projects in four markets, which are expected to contain a total of 802,000 square feet and have projected total costs of $124,700,000.
The development projects started during 2024 are detailed in the table below:
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Development Projects Started in 2024 | | Location | | Size | | Anticipated Conversion Date | | Projected Total Costs | |
| | | | (Square feet) | | | | (In thousands) | |
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| Horizon West 5 | | Orlando, FL | | 85,000 | | | 12/2025 | | $ | 12,800 | | |
| Northeast Trade Center 1 | | San Antonio, TX | | 264,000 | | | 04/2025 | | 32,100 | |
| Crossroads 1 | | Tampa, FL | | 124,000 | | | 06/2025 | | 20,000 | |
| Texas Avenue 1 & 2 | | Austin, TX | | 129,000 | | | 05/2026 | | 22,500 | |
| World Houston 46 | | Houston, TX | | 181,000 | | | 06/2026 | | 17,900 | |
| Crossroads 2 | | Tampa, FL | | 203,000 | | | 07/2026 | | 32,300 | |
| Grand West Crossing 2 | | Houston, TX | | 97,000 | | | 08/2026 | | 12,900 | |
| Hillside 2 | | Greenville, SC | | 141,000 | | | 10/2026 | | 15,300 | |
| Gateway Interchange A & B | | Phoenix, AZ | | 137,000 | | | 01/2027 | | 26,200 | |
| Gateway Interchange F & G | | Phoenix, AZ | | 224,000 | | | 01/2027 | | 38,000 | |
| Total Development Projects Started | | | | 1,585,000 | | | | | $ | 230,000 | | |
At December 31, 2024, EastGroup’s development and value-add program consisted of 21 projects (4,143,000 square feet) in 14 markets. The projects, which were collectively 22% leased as of February 5, 2025, have a projected total cost of $608,700,000, of which $184,632,000 remained to be funded as of December 31, 2024.
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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During the fourth quarter of 2024, EastGroup transferred one project, known as Horizon West 10, to the operating portfolio. The Company transfers projects to the portfolio at the earlier of 90% occupancy or one year after completion. The project, which is located in Orlando, contains 357,000 square feet and is 100% leased as of February 5, 2025.
The development projects transferred to the operating portfolio during 2024 are detailed in the table below:
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| Development and Value-Add Properties Transferred to the Operating Portfolio in 2024 | | Location | | Size | | Conversion Date | | Cumulative Cost as of 12/31/24 | | Percent Leased as of 2/5/25 |
| | | | (Square feet) | | | | (In thousands) | | |
| | | | | | | | | | |
| Gateway 2 | | Miami, FL | | 133,000 | | | 02/2024 | | $ | 22,426 | | | 100% |
| Hillside 1 | | Greenville, SC | | 122,000 | | | 04/2024 | | 13,184 | | | 100% |
| McKinney 1 & 2 | | Dallas, TX | | 172,000 | | | 06/2024 | | 27,522 | | | 100% |
| MCO Logistics Center | | Orlando, FL | | 167,000 | | | 07/2024 | | 24,712 | | | 100% |
| Stonefield 35 1-3 | | Austin, TX | | 276,000 | | | 08/2024 | | 36,997 | | | 56% |
| Springwood 1 & 2 | | Houston, TX | | 292,000 | | | 09/2024 | | 34,837 | | | 93% |
| Horizon West 10 | | Orlando, FL | | 357,000 | | | 10/2024 | | 42,370 | | | 100% |
| Total Projects Transferred | | | | 1,519,000 | | | | | $ | 202,048 | | | 91% |
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Projected Stabilized Yield(1) | | 7.8% | | | | | | | | |
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(1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy
divided by projected total costs.
DIVIDENDS
EastGroup declared a cash dividend of $1.40 per share of common stock in the fourth quarter of 2024. The fourth quarter dividend, which was paid on January 15, 2025, was the Company’s 180th consecutive quarterly cash distribution to shareholders. The Company has increased or maintained its dividend for 32 consecutive years and has increased it 29 years over that period, including increases in each of the last 13 years. The annualized dividend rate of $5.60 per share represents a dividend yield of 3.3% based on the closing stock price of $172.00 on February 5, 2025.
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was 15.4% at December 31, 2024. The Company’s interest and fixed charge coverage ratio was 12.77x and 11.48x for the three and twelve months ended December 31, 2024, respectively. The Company’s ratio of debt to earnings before interest, taxes, depreciation and amortization for real estate (“EBITDAre”) was 3.20x and 3.36x for the three and twelve months ended December 31, 2024, respectively. EBITDAre and the Company’s interest and fixed charge coverage ratio are non-GAAP financial measures defined under Definitions later in this release. Refer to the schedule “Reconciliations of GAAP to Non-GAAP Measures” attached for the calculation of the Company’s interest and fixed charge coverage ratio, the debt to EBITDAre ratio, and the reconciliation of Net Income to EBITDAre.
In December, EastGroup repaid two senior unsecured notes totaling $120,000,000 at maturity with a weighted average fixed interest rate of 3.47%. For the twelve months ended December 31, 2024, the Company repaid maturing debt totaling $170,000,000 with a weighted average effectively fixed interest rate of 3.65%.
The Company did not enter into any new secured or unsecured debt agreements during the three and twelve months ended December 31, 2024. The Company also had minimal draws on its unsecured credit facilities, with a weighted average balance of $715,000 and $1,776,000 for the three and twelve months ended December 31, 2024, and no borrowings on the facilities as of December 31, 2024.
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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Subsequent to year end, EastGroup refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%. The loan, which previously had five years remaining, now has a three-year maturity with two one-year extension options at the Company’s election.
During the fourth quarter, EastGroup sold 914,780 shares of common stock directly through its sales agents under its continuous common equity offering program at a weighted average price of $174.23 per share, providing aggregate net proceeds to the Company of approximately $157,787,000. During the twelve months ended December 31, 2024, the Company sold 1,373,459 shares of common stock directly through its sales agents under its continuous common equity offering program at a weighted average price of $174.30 per share, providing aggregate net proceeds to the Company of approximately $236,996,000.
During the fourth quarter, EastGroup settled outstanding forward equity sale agreements that were previously entered into under its continuous common equity offering program by issuing 1,704,863 shares of common stock in exchange for net proceeds of approximately $305,517,000. Subsequent to quarter-end, the Company settled additional outstanding forward equity sale agreements by issuing 214,138 shares of common stock in exchange for approximate net proceeds of $37,005,000.
During the three months ended December 31, 2024, the Company entered into forward equity sale agreements with respect to 690,953 shares of common stock with an initial weighted average forward price of $175.05 per share and approximate gross sales proceeds of $120,954,000 based on the initial forward price. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements. As of February 5, 2025, EastGroup had 171,115 shares of common stock available for settlement prior to the expiration of the applicable settlement period in November 2025, for approximate net proceeds of $29,688,000, based on a weighted average forward price of $173.50 per share.
OUTLOOK FOR 2025
We estimate EPS for 2025 to be in the range of $4.71 to $4.91 and FFO per share attributable to common stockholders for 2025 to be in the range of $8.80 to $9.00. The table below reconciles projected net income attributable to common stockholders to projected FFO. The Company is providing a projection of estimated net income attributable to common stockholders solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission.
EastGroup’s projections are based on management’s current beliefs and assumptions about our business, the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections. We assume no obligation to update publicly any forward-looking statements, including our Outlook for 2025, whether as a result of new information, future events or otherwise. Please refer to the “Forward-Looking Statements” disclosures included in this earnings release and “Risk Factors” disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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The following table presents the guidance range for 2025:
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| | Low Range | | High Range |
| | Q1 2025 | | Y/E 2025 | | Q1 2025 | | Y/E 2025 |
| | (In thousands, except per share data) |
| | | | | | | | |
| Net income attributable to common stockholders | | $ | 55,378 | | | 248,094 | | | 59,544 | | | 258,632 | |
| Depreciation and amortization | | 51,353 | | | 215,768 | | | 51,353 | | | 215,768 | |
| Funds from operations attributable to common stockholders* | | $ | 106,731 | | | 463,862 | | | 110,897 | | | 474,400 | |
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| Weighted average shares outstanding - Diluted | | 52,070 | | | 52,686 | | | 52,070 | | | 52,686 | |
| Per share data (diluted): | | | | | | | | |
| Net income attributable to common stockholders | | $ | 1.06 | | | 4.71 | | | 1.14 | | | 4.91 | |
| Funds from operations attributable to common stockholders | | 2.05 | | | 8.80 | | | 2.13 | | | 9.00 | |
*This is a non-GAAP financial measure. Please refer to Definitions.
The following assumptions were used for the mid-point:
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| Metrics | | | | | | Initial Guidance for Year 2025 | | Actual for Year 2024 |
| FFO per share | | | | | | $8.80 - $9.00 | | $8.35 |
| FFO per share increase over prior year | | | | | | 6.6% | | 7.2% |
FFO per share increase over prior year excluding gain on
involuntary conversion and business interruption claims | | | | | | 7.1% | | 7.9% |
Same PNOI growth: cash basis (1) | | | | | | 5.4% - 6.4% (2) | | 5.6% |
| Average month-end occupancy - operating portfolio | | | | | | 95.5% - 96.5% | | 96.8% |
| Development starts: | | | | | | | | |
| Square feet | | | | | | 2.5 million | | 1.6 million |
| Projected total investment | | | | | | $300 million | | $230 million |
| Operating property acquisitions | | | | | | $150 million | | $390 million |
Operating property dispositions (Potential gains on dispositions are not included in the projections) | | | | | | $15 million | | $14 million |
| Capital proceeds | | | | | | $450 million | | $724 million |
General and administrative expense (3) | | | | | | $21.1 million | | $20.6 million |
(1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations.
(2) Includes properties which have been in the operating portfolio since 1/1/24 and are projected to be in the operating portfolio through 12/31/25; includes 54,633,000 square feet.
(3) Approximately 37% of the estimated annual general and administrative expense is expected to be incurred in the first quarter of 2025, primarily due to accelerated expense for employees who are retirement-eligible under our equity incentive plans.
DEFINITIONS
The Company’s chief decision maker uses Net income as the primary measure of operating results in making decisions. Investor and industry analysts primarily utilize two supplemental operating performance measures in analyzing operating results, which include: (1) funds from operations attributable to common stockholders (“FFO”), including FFO as adjusted as described below, and (2) property net operating income (“PNOI”), as defined below.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. (“Nareit”). Nareit’s guidance allows preparers an option as it pertains to whether gains or losses on
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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sale, or impairment charges, on real estate assets incidental to a real estate investment trust’s (“REIT’s”) business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims is calculated as FFO (as defined above), adjusted to exclude gains on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance across periods.
PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company’s share of income and property operating expenses from its less-than-wholly-owned real estate investments. EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI” in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI Excluding Income from Lease Terminations on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers’ rent payments over the lives of the leases; GAAP requires the recognition of rental income on a straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company’s portfolio. “Same Properties” is defined as operating properties owned during the entire current period and prior year reporting period. Operating properties are stabilized real estate properties (land including building and improvements) that make up the Company’s operating portfolio. Properties developed or acquired are excluded from the same property pool until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company’s investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry’s calculations of PNOI and FFO provides supplemental indicators of the properties’ performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs. Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company’s financial performance.
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) is also a key performance measure. EBITDAre is computed in accordance with standards established by Nareit and defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company’s business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used to measure the Company’s operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
Debt-to-EBITDAre ratio is a non-GAAP financial measure calculated by dividing the Company’s debt by its EBITDAre, and is used in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company’s interest and fixed charge coverage ratio is a non-GAAP financial measure calculated by dividing the Company’s EBITDAre by its interest expense. We believe this ratio is useful to investors because it provides a
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
Page 8
basis for analysis of the Company’s leverage, operating performance and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its fourth quarter, review the Company’s current operations, and present its earnings outlook for 2025 on Friday, February 7, 2025, at 11:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-800-836-8184 (conference ID: EastGroup) or by webcast through a link on the Company’s website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available through Friday, February 14, 2025. The telephone replay can be accessed by dialing 1-888-660-6345 (access code 93780#), and the webcast replay can be accessed through a link on the Company’s website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company’s website at www.eastgroup.net or upon request by calling the Company at 601-354-3555.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company’s portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 63.1 million square feet. EastGroup Properties, Inc. press releases are available on the Company’s website at www.eastgroup.net.
The Company announces information about the Company and its business to investors and the public using the Company's website (eastgroup.net), including the investor relations website (investor.eastgroup.net), filings with the Securities and Exchange Commission, press releases, public conference calls, and webcasts. The Company also uses social media to communicate with its investors and the public. While not all the information that the Company posts to the Company's website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Therefore, the Company encourages investors, the media, and others interested in the Company to review the information that it posts on the social media channels, including Facebook (facebook.com/eastgroupproperties), LinkedIn (linkedin.com/company/eastgroup-properties-inc), and X (X.com/eastgroupprop). The list of social media channels that the company uses may be updated on its investor relations website from time to time. The information contained on, or that may be accessed through, our website or any of our social media channels is not incorporated by reference into, and is not a part of, this document.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “expects,” “anticipates,” “believes,” “targets,” “intends,” “should,” “estimates,” “could,” “continue,” “assume,” “projects,” “goals,” “plans” or variations of such words and similar expressions or the negative of such words, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company’s Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations,
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company’s operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to:
•international, national, regional and local economic conditions;
•the competitive environment in which the Company operates;
•fluctuations of occupancy or rental rates;
•potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing interest rate uncertainty;
•disruption in supply and delivery chains;
•increased construction and development costs, including as a result of the recent inflationary environment;
•acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all;
•potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, REIT or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance;
•our ability to maintain our qualification as a REIT;
•natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies;
•the availability of financing and capital, increases in or long-term elevated interest rates, and our 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;
•our ability to retain our credit agency ratings;
•our ability to comply with applicable financial covenants;
•credit risk in the event of non-performance by the counterparties to our interest rate swaps;
•how and when pending forward equity sales may settle;
•lack of or insufficient amounts of insurance;
•litigation, including costs associated with prosecuting or defending claims and any adverse outcomes;
•our ability to attract and retain key personnel or lack of adequate succession planning;
•risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks;
•pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic;
•potentially catastrophic events such as acts of war, civil unrest and terrorism; and
•environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.
All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company’s most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company’s periodic filings and current reports filed with the SEC.
The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2025, whether as a result of new information, future events or otherwise.
CONTACT
Investor@eastgroup.net
400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | www.eastgroup.net
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
| (IN THOUSANDS, EXCEPT PER SHARE DATA) |
| (UNAUDITED) |
| | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| REVENUES | | | | | | | | |
| Income from real estate operations | | $ | 163,767 | | | 149,026 | | | 638,035 | | | 566,179 | |
| Other revenue | | 277 | | | 123 | | | 2,199 | | | 4,412 | |
| | | 164,044 | | | 149,149 | | | 640,234 | | | 570,591 | |
| EXPENSES | | | | | | | | |
| Expenses from real estate operations | | 43,195 | | | 39,368 | | | 174,212 | | | 154,030 | |
| Depreciation and amortization | | 49,662 | | | 45,248 | | | 189,411 | | | 171,078 | |
| General and administrative | | 4,043 | | | 3,740 | | | 20,619 | | | 16,757 | |
| Indirect leasing costs | | 229 | | | 146 | | | 785 | | | 582 | |
| | | 97,129 | | | 88,502 | | | 385,027 | | | 342,447 | |
| | | | | | | | |
| OTHER INCOME (EXPENSE) | | | | | | | | |
| Interest expense | | (9,192) | | | (11,108) | | | (38,956) | | | (47,996) | |
| Gain on sales of real estate investments | | — | | | 13,156 | | | 8,751 | | | 17,965 | |
| Other | | 931 | | | 774 | | | 2,805 | | | 2,435 | |
| NET INCOME | | 58,654 | | | 63,469 | | | 227,807 | | | 200,548 | |
| Net income attributable to noncontrolling interest in joint ventures | | (14) | | | (14) | | | (56) | | | (57) | |
| NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | | 58,640 | | | 63,455 | | | 227,751 | | | 200,491 | |
| Other comprehensive income (loss) — interest rate swaps | | 8,013 | | | (17,200) | | | (2,935) | | | (11,483) | |
| TOTAL COMPREHENSIVE INCOME | | $ | 66,653 | | | 46,255 | | | 224,816 | | | 189,008 | |
| | | | | | | | |
| BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | | | | | | | | |
| Net income attributable to common stockholders | | $ | 1.17 | | | 1.35 | | | 4.67 | | | 4.43 | |
| Weighted average shares outstanding — Basic | | 50,241 | | | 46,831 | | | 48,803 | | | 45,224 | |
| DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | | | | | | | | |
| Net income attributable to common stockholders | | $ | 1.16 | | | 1.35 | | | 4.66 | | | 4.42 | |
| Weighted average shares outstanding — Diluted | | 50,339 | | | 46,980 | | | 48,911 | | | 45,331 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES |
| RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES |
| (IN THOUSANDS, EXCEPT PER SHARE DATA) |
| (UNAUDITED) |
| | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | | |
| NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | | $ | 58,640 | | | 63,455 | | | 227,751 | | | 200,491 | |
| Depreciation and amortization | | 49,662 | | | 45,248 | | | 189,411 | | | 171,078 | |
| Company’s share of depreciation from unconsolidated investment | | 31 | | | 31 | | | 125 | | | 124 | |
| Depreciation and amortization attributable to noncontrolling interest | | (1) | | | (1) | | | (5) | | | (5) | |
| Gain on sales of real estate investments | | — | | | (13,156) | | | (8,751) | | | (17,965) | |
| Gain on sales of non-operating real estate | | (140) | | | — | | | (362) | | | (446) | |
| | | | | | | | |
| | | | | | | | |
FUNDS FROM OPERATIONS (“FFO”) ATTRIBUTABLE TO COMMON STOCKHOLDERS* | | 108,192 | | | 95,577 | | | 408,169 | | | 353,277 | |
| Gain on involuntary conversion and business interruption claims | | — | | | — | | | (1,708) | | | (4,187) | |
FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS - EXCLUDING GAIN ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS* | | $ | 108,192 | | | 95,577 | | | 406,461 | | | 349,090 | |
| | | | | | | | |
| NET INCOME | | $ | 58,654 | | | 63,469 | | | 227,807 | | | 200,548 | |
Interest expense (1) | | 9,192 | | | 11,108 | | | 38,956 | | | 47,996 | |
| Depreciation and amortization | | 49,662 | | | 45,248 | | | 189,411 | | | 171,078 | |
| Company’s share of depreciation from unconsolidated investment | | 31 | | | 31 | | | 125 | | | 124 | |
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (“EBITDA”) | | 117,539 | | | 119,856 | | | 456,299 | | | 419,746 | |
| Gain on sales of real estate investments | | — | | | (13,156) | | | (8,751) | | | (17,965) | |
| Gain on sales of non-operating real estate | | (140) | | | — | | | (362) | | | (446) | |
| | | | | | | | |
EBITDA FOR REAL ESTATE (“EBITDAre”)* | | $ | 117,399 | | | 106,700 | | | 447,186 | | | 401,335 | |
| | | | | | | | |
| Debt | | $ | 1,503,562 | | | 1,674,827 | | | 1,503,562 | | | 1,674,827 | |
Debt-to-EBITDAre ratio* | | 3.20 | | | 3.92 | | | 3.36 | | | 4.17 | |
| | | | | | | | |
EBITDAre* | | $ | 117,399 | | | 106,700 | | | 447,186 | | | 401,335 | |
Interest expense (1) | | 9,192 | | | 11,108 | | | 38,956 | | | 47,996 | |
Interest and fixed charge coverage ratio* | | 12.77 | | | 9.61 | | | 11.48 | | | 8.36 | |
| | | | | | | | |
| DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | | | | | | | | |
| Net income attributable to common stockholders | | $ | 1.16 | | | 1.35 | | | 4.66 | | | 4.42 | |
FFO attributable to common stockholders* | | $ | 2.15 | | | 2.03 | | | 8.35 | | | 7.79 | |
FFO attributable to common stockholders - excluding gain on involuntary conversion and business interruption claims* | | $ | 2.15 | | | 2.03 | | | 8.31 | | | 7.70 | |
| Weighted average shares outstanding for EPS and FFO purposes - Diluted | | 50,339 | | | 46,980 | | | 48,911 | | | 45,331 | |
| | | | | | | | |
| | | | | | | | |
(1) Net of capitalized interest of $5,026 and $4,371 for the three months ended December 31, 2024 and 2023, respectively; and $19,823 and $16,235 for the twelve months ended December 31, 2024 and 2023, respectively. |
*This is a non-GAAP financial measure. Please refer to Definitions. | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES |
| RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued) |
| (IN THOUSANDS) |
| (UNAUDITED) |
| | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | | |
| NET INCOME | | $ | 58,654 | | | 63,469 | | | 227,807 | | | 200,548 | |
| Gain on sales of real estate investments | | — | | | (13,156) | | | (8,751) | | | (17,965) | |
| Gain on sales of non-operating real estate | | (140) | | | — | | | (362) | | | (446) | |
| | | | | | | | |
| | | | | | | | |
| Interest income | | (512) | | | (496) | | | (1,334) | | | (879) | |
| Other revenue | | (277) | | | (123) | | | (2,199) | | | (4,412) | |
| Indirect leasing costs | | 229 | | | 146 | | | 785 | | | 582 | |
| | | | | | | | |
| Depreciation and amortization | | 49,662 | | | 45,248 | | | 189,411 | | | 171,078 | |
| Company’s share of depreciation from unconsolidated investment | | 31 | | | 31 | | | 125 | | | 124 | |
Interest expense (1) | | 9,192 | | | 11,108 | | | 38,956 | | | 47,996 | |
General and administrative expense (2) | | 4,043 | | | 3,740 | | | 20,619 | | | 16,757 | |
| | | | | | | | |
| Noncontrolling interest in PNOI of consolidated joint ventures | | (15) | | | (15) | | | (62) | | | (62) | |
PROPERTY NET OPERATING INCOME (“PNOI”)* | | 120,867 | | | 109,952 | | | 464,995 | | | 413,321 | |
| PNOI from 2023 and 2024 acquisitions | | (6,888) | | | (2,072) | | | (19,249) | | | (3,334) | |
| PNOI from 2023 and 2024 development and value-add properties | | (9,361) | | | (5,806) | | | (31,544) | | | (13,190) | |
| PNOI from 2023 and 2024 operating property dispositions | | — | | | (686) | | | (177) | | | (2,819) | |
| Other PNOI | | 85 | | | (81) | | | 208 | | | 166 | |
SAME PNOI (Straight-Line Basis)* | | 104,703 | | | 101,307 | | | 414,233 | | | 394,144 | |
| Lease termination fee income from same properties | | (235) | | | (488) | | | (2,192) | | | (1,020) | |
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Straight-Line Basis)* | | 104,468 | | | 100,819 | | | 412,041 | | | 393,124 | |
| Straight-line rent adjustments for same properties | | (1,521) | | | (1,152) | | | (4,560) | | | (6,429) | |
| Acquired leases — market rent adjustment amortization for same properties | | (324) | | | (441) | | | (1,400) | | | (2,045) | |
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash Basis)* | | $ | 102,623 | | | 99,226 | | | 406,081 | | | 384,650 | |
| | | | | | | | |
| | | | | | | | |
(1) Net of capitalized interest of $5,026 and $4,371 for the three months ended December 31, 2024 and 2023, respectively; and $19,823 and $16,235 for the twelve months ended December 31, 2024 and 2023, respectively. |
(2) Net of capitalized development costs of $2,023 and $2,489 for the three months ended December 31, 2024 and 2023, respectively; and $8,181 and $10,472 for the twelve months ended December 31, 2024 and 2023, respectively. |
*This is a non-GAAP financial measure. Please refer to Definitions. | | | | | | | | |
Page 1 of 24 Table of Contents Conference Call 800-836-8184 | ID – EastGroup February 7, 2025 11:00 a.m. Eastern Time webcast available at EastGroup.net M CO L og is tic s Ce nt er , O rla nd o, F lo rid a SUPPLEMENTAL INFORMATION December 31, 2024 400 West Parkway Place, Suite 100 Ridgeland, MS 39157 (601) 354-3555
Page 2 of 24 Table of Contents Financial Information: Consolidated Balance Sheets ................................................................................ 3 Consolidated Statements of Income and Comprehensive Income ......................... 4 Reconciliations of GAAP to Non-GAAP Measures ................................................. 5 Consolidated Statements of Cash Flows ................................................................ 7 Same Property Portfolio Analysis ........................................................................... 8 Additional Financial Information ............................................................................. 9 Financial Statistics ................................................................................................. 10 Capital Deployment: Development and Value-Add Properties Summary ................................................ 11 Development and Value-Add Properties Transferred to Real Estate Properties ..... 12 Acquisitions and Dispositions ................................................................................. 13 Real Estate Improvements and Leasing Costs ....................................................... 14 Property Information: Leasing Statistics and Occupancy Summary ......................................................... 15 Core Market Operating Statistics ........................................................................... 16 Lease Expiration Summary .................................................................................... 17 Top 10 Customers by Annualized Base Rent ......................................................... 18 Capitalization: Debt and Equity Market Capitalization ................................................................... 19 Continuous Common Equity Program .................................................................... 20 Debt-to-EBITDAre Ratios ....................................................................................... 21 Other Information: Outlook for 2025 .................................................................................................... 22 Glossary of REIT Terms ........................................................................................ 23 FORWARD-LOOKING STATEMENTS The statements and certain other information contained herein, which can be identified by the use of forward-looking terminology such as “may,” “will,” “seek,” “expects,” “anticipates,” “believes,” “targets,” “intends,” “should,” “estimates,” “could,” “continue,” “assume,” “projects,” “goals” “plans” or variations of such words and similar expressions or the negative of such words, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the current views of EastGroup Properties, Inc. (the “Company” or “EastGroup”) about its plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to the Company and on assumptions it has made. For instance, the amount, timing and frequency of future dividends is subject to authorization by the Company’s Board of Directors and will be based upon a variety of factors. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations, or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company’s operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: international, national, regional and local economic conditions; the competitive environment in which the Company operates; fluctuations of occupancy or rental rates; potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing interest rate uncertainty; disruption in supply and delivery chains; increased construction and development costs, including as a result of the recent inflationary environment; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, Real Estate Investment Trust (“REIT”) or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; our ability to maintain our qualification as a REIT; natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes, or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; the availability of financing and capital, increases in or long-term elevated interest rates, and our 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; our ability to retain our credit agency ratings; our ability to comply with applicable financial covenants; credit risk in the event of non-performance by the counterparties to our interest rate swaps; how and when pending forward equity sales may settle; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to attract and retain key personnel or lack of adequate succession planning; risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks; pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; potentially catastrophic events such as acts of war, civil unrest and terrorism; and environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company’s most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company’s periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2025, whether as a result of new information, future events or otherwise.
Page 3 of 24 Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) December 31, 2024 December 31, 2023 ASSETS Real estate properties 5,503,444$ 4,853,548 Development and value-add properties 674,472 639,647 6,177,916 5,493,195 Less accumulated depreciation (1,415,576) (1,273,723) 4,762,340 4,219,472 Unconsolidated investment 7,448 7,539 Cash and cash equivalents 17,529 40,263 Other assets 290,159 251,939 TOTAL ASSETS 5,077,476$ 4,519,213 LIABILITIES AND EQUITY LIABILITIES Unsecured bank credit facilities, net of debt issuance costs (3,595)$ (1,520) Unsecured debt, net of debt issuance costs 1,507,157 1,676,347 Accounts payable and accrued expenses 147,342 146,337 Other liabilities 134,028 89,415 Total Liabilities 1,784,932 1,910,579 EQUITY Stockholders' Equity: Common shares; $0.0001 par value; 70,000,000 shares authorized; 51,825,798 shares issued and outstanding at December 31, 2024 and 47,700,432 at December 31, 2023 5 5 Excess shares; $0.0001 par value; 30,000,000 shares authorized; no shares issued - - Additional paid-in capital 3,673,393 2,949,907 Distributions in excess of earnings (403,172) (366,473) Accumulated other comprehensive income 21,953 24,888 Total Stockholders' Equity 3,292,179 2,608,327 Noncontrolling interest in joint ventures 365 307 Total Equity 3,292,544 2,608,634 TOTAL LIABILITIES AND EQUITY 5,077,476$ 4,519,213
Page 4 of 24 Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data) (Unaudited) 2024 2023 2024 2023 REVENUES Income from real estate operations 163,767$ 149,026 638,035 566,179 Other revenue 277 123 2,199 4,412 164,044 149,149 640,234 570,591 EXPENSES Expenses from real estate operations 43,195 39,368 174,212 154,030 Depreciation and amortization 49,662 45,248 189,411 171,078 General and administrative 4,043 3,740 20,619 16,757 Indirect leasing costs 229 146 785 582 97,129 88,502 385,027 342,447 OTHER INCOME (EXPENSE) Interest expense (9,192) (11,108) (38,956) (47,996) Gain on sales of real estate investments - 13,156 8,751 17,965 Other 931 774 2,805 2,435 NET INCOME 58,654 63,469 227,807 200,548 Net income attributable to noncontrolling interest in joint ventures (14) (14) (56) (57) NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS 58,640 63,455 227,751 200,491 Other comprehensive income (loss) - interest rate swaps 8,013 (17,200) (2,935) (11,483) TOTAL COMPREHENSIVE INCOME 66,653$ 46,255 224,816 189,008 BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders 1.17$ 1.35 4.67 4.43 Weighted average shares outstanding - Basic 50,241 46,831 48,803 45,224 DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders 1.16$ 1.35 4.66 4.42 Weighted average shares outstanding - Diluted 50,339 46,980 48,911 45,331 Twelve Months Ended December 31,December 31, Three Months Ended
Page 5 of 24 Reconciliations of GAAP to Non-GAAP Measures (In thousands, except per share data) (Unaudited) 2024 2023 2024 2023 NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS 58,640$ 63,455 227,751 200,491 Depreciation and amortization 49,662 45,248 189,411 171,078 Company's share of depreciation from unconsolidated investment 31 31 125 124 Depreciation and amortization attributable to noncontrolling interest (1) (1) (5) (5) Gain on sales of real estate investments - (13,156) (8,751) (17,965) Gain on sales of non-operating real estate (140) - (362) (446) FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS* 108,192 95,577 408,169 353,277 Gain on involuntary conversion and business interruption claims - - (1,708) (4,187) FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS - EXCLUDING GAIN ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS* 108,192$ 95,577 406,461 349,090 NET INCOME 58,654$ 63,469 227,807 200,548 Interest expense (1) 9,192 11,108 38,956 47,996 Depreciation and amortization 49,662 45,248 189,411 171,078 Company's share of depreciation from unconsolidated investment 31 31 125 124 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") 117,539 119,856 456,299 419,746 Gain on sales of real estate investments - (13,156) (8,751) (17,965) Gain on sales of non-operating real estate (140) - (362) (446) EBITDA FOR REAL ESTATE ("EBITDAre")* 117,399$ 106,700 447,186 401,335 DILUTED PER COMMON SHARE DATA FOR EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders 1.16$ 1.35 4.66 4.42 FFO attributable to common stockholders* 2.15$ 2.03 8.35 7.79 FFO attributable to common stockholders - excluding gain on involuntary conversion and business interruption claims* 2.15$ 2.03 8.31 7.70 Weighted average shares outstanding for EPS and FFO purposes - Diluted 50,339 46,980 48,911 45,331 December 31, * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. Three Months Ended December 31, Twelve Months Ended (1) Net of capitalized interest of $5,026 and $4,371 for the three months ended December 31, 2024 and 2023, respectively; and $19,823 and $16,235 for the twelve months ended December 31, 2024 and 2023, respectively.
Page 6 of 24 Reconciliations of GAAP to Non-GAAP Measures (Continued) (In thousands) (Unaudited) 2024 2023 2024 2023 NET INCOME 58,654$ 63,469 227,807 200,548 Gain on sales of real estate investments - (13,156) (8,751) (17,965) Gain on sales of non-operating real estate (140) - (362) (446) Interest income (512) (496) (1,334) (879) Other revenue (277) (123) (2,199) (4,412) Indirect leasing costs 229 146 785 582 Depreciation and amortization 49,662 45,248 189,411 171,078 Company's share of depreciation from unconsolidated investment 31 31 125 124 Interest expense (1) 9,192 11,108 38,956 47,996 General and administrative expense (2) 4,043 3,740 20,619 16,757 Noncontrolling interest in PNOI of consolidated joint ventures (15) (15) (62) (62) PROPERTY NET OPERATING INCOME ("PNOI")* 120,867 109,952 464,995 413,321 PNOI from 2023 and 2024 acquisitions (6,888) (2,072) (19,249) (3,334) PNOI from 2023 and 2024 development and value-add properties (9,361) (5,806) (31,544) (13,190) PNOI from 2023 and 2024 operating property dispositions - (686) (177) (2,819) Other PNOI 85 (81) 208 166 SAME PNOI (Straight-Line Basis)* 104,703 101,307 414,233 394,144 Lease termination fee income from same properties (235) (488) (2,192) (1,020) SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Straight-Line Basis)* 104,468 100,819 412,041 393,124 Straight-line rent adjustments for same properties (1,521) (1,152) (4,560) (6,429) Acquired leases — market rent adjustment amortization for same properties (324) (441) (1,400) (2,045) SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash Basis)* 102,623$ 99,226 406,081 384,650 * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. Twelve Months Ended December 31, December 31, (1) Net of capitalized interest of $5,026 and $4,371 for the three months ended December 31, 2024 and 2023, respectively; and $19,823 and $16,235 for the twelve months ended December 31, 2024 and 2023, respectively. (2) Net of capitalized development costs of $2,023 and $2,489 for the three months ended December 31, 2024 and 2023, respectively; and $8,181 and $10,472 for the twelve months ended December 31, 2024 and 2023, respectively. Three Months Ended
Page 7 of 24 Consolidated Statements of Cash Flows (In thousands) (Unaudited) 2024 2023 OPERATING ACTIVITIES Net income 227,807$ 200,548 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 189,411 171,078 Stock-based compensation expense 10,476 8,965 Gain on sales of real estate investments (8,751) (17,965) Gain on sales of non-operating real estate (362) (446) Gain on involuntary conversion and business interruption claims (1,708) (4,187) Changes in operating assets and liabilities: Accrued income and other assets (13,410) (15,415) Accounts payable, accrued expenses and prepaid rent 11,130 (5,922) Other 1,994 1,546 NET CASH PROVIDED BY OPERATING ACTIVITIES 416,587 338,202 INVESTING ACTIVITIES Development and value-add properties (245,033) (388,213) Purchases of real estate (390,011) (165,116) Real estate improvements (59,288) (51,116) Net proceeds from sales of real estate investments and non-operating real estate 17,659 41,539 Leasing commissions (32,154) (32,004) Proceeds from involuntary conversion on real estate assets 2,450 5,029 Changes in accrued development costs (17,170) 12,163 Changes in other assets and other liabilities (795) 7,660 NET CASH USED IN INVESTING ACTIVITIES (724,342) (570,058) FINANCING ACTIVITIES Proceeds from unsecured bank credit facilities 64,968 471,624 Repayments on unsecured bank credit facilities (64,968) (641,624) Proceeds from unsecured debt - 100,000 Repayments on unsecured debt (170,000) (115,000) Repayments on secured debt - (1,970) Debt issuance costs (3,178) (1,818) Distributions paid to stockholders (not including dividends accrued) (252,794) (225,625) Proceeds from common stock offerings 717,659 692,312 Common stock offering related costs (507) (834) Other (6,159) (5,002) NET CASH PROVIDED BY FINANCING ACTIVITIES 285,021 272,063 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (22,734) 40,207 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 40,263 56 CASH AND CASH EQUIVALENTS AT END OF YEAR 17,529$ 40,263 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest, net of amounts capitalized of $19,823 and $16,235 for 2024 and 2023, respectively 37,185$ 47,228 Cash paid for operating lease liabilities 2,406 2,042 NON-CASH OPERATING ACTIVITY Operating lease liabilities arising from obtaining right of use assets 21,836$ 2,379 Twelve Months Ended December 31,
Page 8 of 24 Same Property Portfolio Analysis (In thousands) (Unaudited) 2024 2023 % Change 2024 2023 % Change Same Property Portfolio (1) Square feet as of period end 51,668 51,668 51,668 51,668 Average occupancy 95.6% 98.3% -2.7% 96.7% 98.2% -1.5% Occupancy as of period end 95.9% 98.5% -2.6% 95.9% 98.5% -2.6% Same Property Portfolio Analysis (Straight-Line Basis) (1) * Income from real estate operations 143,316$ 138,165 3.7% 573,588$ 540,804 6.1% Less cash received for lease terminations (235) (488) (2,192) (1,020) Income excluding lease termination income 143,081 137,677 3.9% 571,396 539,784 5.9% Expenses from real estate operations (38,613) (36,858) 4.8% (159,355) (146,660) 8.7% PNOI excluding income from lease terminations 104,468$ 100,819 3.6% 412,041$ 393,124 4.8% Same Property Portfolio Analysis (Cash Basis) (1) * Income from real estate operations 141,471$ 136,572 3.6% 567,628$ 532,330 6.6% Less cash received for lease terminations (235) (488) (2,192) (1,020) Income excluding lease termination income 141,236 136,084 3.8% 565,436 531,310 6.4% Expenses from real estate operations (38,613) (36,858) 4.8% (159,355) (146,660) 8.7% PNOI excluding income from lease terminations 102,623$ 99,226 3.4% 406,081$ 384,650 5.6% (1) Includes properties which were included in the operating portfolio for the entire period of 1/1/23 through 12/31/24. * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. December 31, December 31, Three Months Ended Twelve Months Ended
Page 9 of 24 Additional Financial Information (In thousands) (Unaudited) 2024 2023 2024 2023 Lease income - operating leases 124,512$ 112,534 477,647 424,063 Variable lease income (1) 39,255 36,492 160,388 142,116 Income from real estate operations 163,767 149,026 638,035 566,179 Straight-line rent income adjustment 3,114 3,144 11,450 11,289 Stock-based compensation expense (2,199) (2,130) (10,476) (8,965) Debt issuance costs amortization (472) (479) (1,914) (1,943) Gain on involuntary conversion and business interruption claims (2) - - 1,708 4,187 Acquired leases - market rent adjustment amortization 1,151 628 2,916 2,483 2024 2023 2024 2023 WEIGHTED AVERAGE COMMON SHARES Weighted average common shares - Basic 50,241 46,831 48,803 45,224 BASIC SHARES FOR EARNINGS PER SHARE ("EPS") 50,241 46,831 48,803 45,224 Potential common shares: Effect of dilutive securities 98 149 108 107 DILUTED SHARES FOR EPS AND FFO 50,339 46,980 48,911 45,331 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. (2) Included in Other revenue on the Consolidated Statements of Income and Comprehensive Income; included in FFO. December 31, Three Months Ended Three Months Ended December 31, Twelve Months Ended December 31, Twelve Months Ended December 31, SELECTED INCOME STATEMENT INFORMATION (Items below represent increases or (decreases) in FFO)
Page 10 of 24 Financial Statistics ($ in thousands, except per share data) (Unaudited) 2024 2023 2022 2021 2020 ASSETS/MARKET CAPITALIZATION Assets 5,077,476$ 4,519,213 4,035,837 3,215,336 2,720,803 Equity Market Capitalization 8,317,522 8,754,937 6,451,794 9,403,107 5,477,783 Total Market Capitalization (Debt and Equity) (1) 9,827,522 10,434,937 8,318,835 10,859,473 6,791,879 Shares Outstanding - Common 51,825,798 47,700,432 43,575,539 41,268,846 39,676,828 Price per share 160.49$ 183.54 148.06 227.85 138.06 FFO CHANGE* FFO per diluted share 8.35$ 7.79 7.00 6.09 5.38 Change compared to same period prior year 7.2% 11.3% 14.9% 13.2% 8.0% COMMON DIVIDEND PAYOUT RATIO* Dividend distribution 5.34$ 5.04 4.70 3.58 3.08 FFO per diluted share 8.35 7.79 7.00 6.09 5.38 Dividend payout ratio 64% 65% 67% 59% 57% COMMON DIVIDEND YIELD Dividend distribution 5.34$ 5.04 4.70 3.58 3.08 Price per share 160.49 183.54 148.06 227.85 138.06 Dividend yield 3.33% 2.75% 3.17% 1.57% 2.23% FFO MULTIPLE* FFO per diluted share 8.35$ 7.79 7.00 6.09 5.38 Price per share 160.49 183.54 148.06 227.85 138.06 Multiple 19.22 23.56 21.15 37.41 25.66 INTEREST & FIXED CHARGE COVERAGE RATIO* EBITDAre 447,186$ 401,335 337,536 278,959 245,669 Interest expense 38,956 47,996 38,499 32,945 33,927 Interest and fixed charge coverage ratio 11.48 8.36 8.77 8.47 7.24 DEBT-TO-EBITDAre RATIO* Debt 1,503,562$ 1,674,827 1,861,744 1,451,778 1,310,895 EBITDAre 447,186 401,335 337,536 278,959 245,669 Debt-To-EBITDAre ratio 3.36 4.17 5.52 5.20 5.34 Adjusted debt-to-pro forma EBITDAre ratio 2.29 3.23 4.48 3.83 4.43 DEBT-TO-TOTAL MARKET CAPITALIZATION (1) 15.4% 16.1% 22.4% 13.4% 19.3% ISSUER RATINGS (2) Issuer Rating Outlook Moody's Investors Service Baa2 Stable (1) Before deducting unamortized debt issuance costs. (2) A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. Years Ended
Page 11 of 24 Development and Value-Add Properties Summary ($ in thousands) (Unaudited) Cumulative Anticipated Costs at Projected Conversion % Leased Square Feet (SF) 12/31/24 Total Costs Date (1) 2/5/25 Lease-Up SunCoast 9 Fort Myers, FL 111,000 15,630$ 17,100 02/25 0% Horizon West 6 Orlando, FL 87,000 11,739 12,700 04/25 52% Basswood 3-5 Fort Worth, TX 351,000 47,422 50,000 05/25 67% Eisenhauer Point 10-12 San Antonio, TX 223,000 28,314 30,000 05/25 33% Braselton 3 Atlanta, GA 115,000 13,759 14,300 07/25 0% Gateway South Dade 1 & 2 Miami, FL 169,000 33,213 34,900 07/25 0% Riverside 1 & 2 Atlanta, GA 284,000 31,526 33,700 07/25 44% Cass White 1 & 2 Atlanta, GA 296,000 32,604 33,900 09/25 0% Horizon West 5 Orlando, FL 85,000 9,682 12,800 12/25 0% Total Lease-up 1,721,000 223,889 239,400 28% Wgt Avg % Under Construction Northeast Trade Center 1 San Antonio, TX 264,000 25,002 32,100 04/25 100% Crossroads 1 Tampa, FL 124,000 16,634 20,000 06/25 100% Skyway 1 & 2 Charlotte, NC 318,000 31,693 37,200 01/26 0% Denton 35 Exchange 1 & 2 Dallas, TX 244,000 28,063 34,600 02/26 14% Arista 36 1-3 Denver, CO 360,000 44,796 80,300 05/26 0% Texas Avenue 1 & 2 Austin, TX 129,000 14,126 22,500 05/26 0% World Houston 46 Houston, TX 181,000 9,949 17,900 06/26 0% Crossroads 2 Tampa, FL 203,000 11,744 32,300 07/26 0% Grand West Crossing 2 Houston, TX 97,000 2,863 12,900 08/26 0% Hillside 2 Greenville, SC 141,000 2,934 15,300 10/26 0% Gateway Interchange A & B Phoenix, AZ 137,000 4,742 26,200 01/27 0% Gateway Interchange F & G Phoenix, AZ 224,000 7,633 38,000 01/27 0% Total Under Construction 2,422,000 200,179 369,300 17% Wgt Avg % Total Lease-Up and Under Construction 4,143,000 424,068$ 608,700 22% Wgt Avg % Projected Stabilized Yields (2) Yield Lease-Up 6.6% Under Construction 7.5% Lease-Up and Under Construction 7.1% Prospective Development Acres Projected SF Phoenix, AZ 33 419,000 10,935$ Sacramento, CA 4 78,000 2,664 Fort Myers, FL 20 210,000 4,270 Miami, FL 24 313,000 26,271 Orlando, FL 33 357,000 13,293 Tampa, FL 70 617,000 16,451 Atlanta, GA 138 1,406,000 17,243 Charlotte, NC 113 828,000 13,141 Greenville, SC 65 523,000 6,772 Nashville, TN 27 370,000 10,584 Austin, TX 132 1,583,000 52,672 Dallas, TX 12 160,000 4,729 Fort Worth, TX 121 1,312,000 33,518 Houston, TX 78 1,131,000 26,690 San Antonio, TX 46 612,000 11,171 Total Prospective Development 916 9,919,000 250,404 Total Development and Value-Add Properties 916 14,062,000 674,472$ (1) Development properties will transfer to the operating portfolio at the earlier of 90% occupancy or one year after shell completion. (2) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.
Page 12 of 24 Development and Value-Add Properties Transferred to Real Estate Properties ($ in thousands) (Unaudited) Cumulative Costs at Conversion % Leased Square Feet (SF) 12/31/24 Date 2/5/25 1st Quarter Gateway 2 Miami, FL 133,000 22,426$ 02/24 100% 133,000 22,426 2nd Quarter Hillside 1 Greenville, SC 122,000 13,184 04/24 100% McKinney 1 & 2 Dallas, TX 172,000 27,522 06/24 100% 294,000 40,706 3rd Quarter MCO Logistics Center Orlando, FL 167,000 24,712 07/24 100% Stonefield 35 1-3 Austin, TX 276,000 36,997 08/24 56% Springwood 1 & 2 Houston, TX 292,000 34,837 09/24 93% 735,000 96,546 4th Quarter Horizon West 10 Orlando, FL 357,000 42,370 10/24 100% 357,000 42,370 Total Transferred to Real Estate Properties 1,519,000 202,048$ 91% Wgt Avg % Projected Stabilized Yield (1) 7.8% (1) Weighted average yield based on projected stabilized annual property net operating income on a straight-line basis at 100% occupancy divided by projected total costs.
Page 13 of 24 Acquisitions and Dispositions Through December 31, 2024 ($ in thousands) (Unaudited) Date Property Name Location Size Purchase Price (1) 1st Quarter 01/18/24 Brightstar Land Atlanta, GA 34.3 Acres 3,302$ 01/23/24 Spanish Ridge Industrial Park Las Vegas, NV 231,000 SF 54,859 2nd Quarter 05/03/24 147 Exchange Raleigh, NC 274,000 SF 52,945 3rd Quarter 08/19/24 Hays Commerce Center 3 & 4 Austin, TX 179,000 SF 35,781 4th Quarter Various (2) Station 24 Commerce Center Land Nashville, TN 26.8 Acres 10,460 11/12/24 Riverpoint Industrial Park Atlanta, GA 779,000 SF 87,576 11/21/24 DFW Global Logistics Centre 5-8 Dallas, TX 492,000 SF 75,852 12/26/24 Akimel Gateway Phoenix, AZ 519,000 SF 82,998 2,474,000 SF Total Acquisitions 61.1 Acres 403,773$ Date Property Name Location Size Gross Sales Price 1st Quarter 03/01/24 Hercules Land San Francisco, CA 3.9 Acres 4,000$ 222 (3) 03/05/24 Interchange Business Park and Metro Jackson, MS 159,000 SF 14,050 8,751 (4) Airport Commerce Center 2nd Quarter None 3rd Quarter None 4th Quarter 10/18/24 Skyway Logistics Park Land Charlotte, NC 1.5 Acres 261 140 (3) 159,000 SF Total Dispositions 5.4 Acres 18,311$ 9,113 (2) The Station 24 Land was acquired in two separate transactions during the fourth quarter of 2024. (4) Included in Gain on sales of real estate investments on the Consolidated Statements of Income and Comprehensive Income; not included in FFO. DISPOSITIONS ACQUISITIONS (1) Represents acquisition price plus closing costs. Realized Gain (3) Included in Other on the Consolidated Statements of Income and Comprehensive Income; not included in FFO.
Page 14 of 24 Real Estate Improvements and Leasing Costs (In thousands) (Unaudited) REAL ESTATE IMPROVEMENTS 2024 2023 2024 2023 Upgrade on acquisitions 19$ 1,181 1,435 1,892 Tenant improvements: New tenants 4,388 2,483 18,540 16,352 Renewal tenants 553 992 2,964 3,503 Other: Building improvements 2,342 1,358 13,006 8,085 Roofs 1,359 1,929 12,940 17,386 Parking lots 1,451 2,016 4,763 4,824 Other 833 537 4,480 1,508 TOTAL REAL ESTATE IMPROVEMENTS (1) 10,945$ 10,496 58,128 53,550 CAPITALIZED LEASING COSTS (Principally Commissions) Development and value-add 425$ 2,192 7,117 9,597 New tenants 5,826 1,684 16,478 9,379 Renewal tenants 2,934 3,957 11,318 12,696 TOTAL CAPITALIZED LEASING COSTS (2)(3) 9,185$ 7,833 34,913 31,672 (1) Reconciliation of Total Real Estate Improvements to Real Estate Improvements on the Consolidated Statements of Cash Flows: 2024 2023 Total Real Estate Improvements 58,128$ 53,550 Change in real estate property payables (719) (527) Change in construction in progress 1,879 (1,907) 59,288$ 51,116 (2) Included in Other Assets on the Consolidated Balance Sheets. (3) Reconciliation of Total Capitalized Leasing Costs to Leasing Commissions on the Consolidated Statements of Cash Flows: 2024 2023 Total Capitalized Leasing Costs 34,913$ 31,672 Change in leasing commissions payables (2,759) 332 32,154$ 32,004 Twelve Months Ended December 31, Leasing Commissions on the Consolidated Statements of Cash Flows December 31, Real Estate Improvements on the Consolidated Statements of Cash Flows Twelve Months Ended December 31, Twelve Months EndedThree Months Ended December 31,
Page 15 of 24 Leasing Statistics and Occupancy Summary (Unaudited) Three Months Ended Number of Square Feet Weighted Rental Change Rental Change PSF Tenant PSF Leasing PSF Total December 31, 2024 Leases Signed Signed Average Term Straight-Line Basis (1) Cash Basis (1) Improvement (2) Commission (2) Leasing Cost (2) (In Thousands) (In Years) New Leases (3) 36 1,161 6.8 50.8% 32.5% 5.78$ 5.03$ 10.81$ Renewal Leases 54 1,606 4.3 43.0% 26.3% 1.16 1.94 3.10 Total/Weighted Average 90 2,767 5.4 46.6% 29.2% 3.10$ 3.23$ 6.33$ Per Year 0.57$ 0.60$ 1.17$ Weighted Average Retention (4) 77.5% Twelve Months Ended Number of Square Feet Weighted Rental Change Rental Change PSF Tenant PSF Leasing PSF Total December 31, 2024 Leases Signed Signed Average Term Straight-Line Basis (1) Cash Basis (1) Improvement (2) Commission (2) Leasing Cost (2) (In Thousands) (In Years) New Leases (3) 136 3,621 5.8 60.3% 42.9% 4.80$ 4.43$ 9.23$ Renewal Leases 205 5,763 4.4 48.1% 30.7% 0.94 1.95 2.89 Total/Weighted Average 341 9,384 4.9 53.0% 35.6% 2.43$ 2.91$ 5.34$ Per Year 0.49$ 0.59$ 1.08$ Weighted Average Retention (4) 67.2% 12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 Percentage Leased 97.1% 96.9% 97.4% 98.0% 98.7% Percentage Occupied 96.1% 96.5% 97.1% 97.7% 98.2% (1) Rental Change is reported for leases signed during the periods presented. (2) Per square foot (PSF) amounts represent total amounts for the life of the lease, except as noted for the Per Year amounts. (3) Does not include leases with terms less than 12 months and leases for first generation space. (4) Calculated as SF of renewal leases signed during the quarter / SF of leases expiring during the quarter plus early renewals signed (not including early terminations or bankruptcies).
Page 16 of 24 Core Market Operating Statistics December 31, 2024 (Unaudited) Total % of Total Square Feet Annualized % Straight-Line Cash Straight-Line Cash Straight-Line Cash Straight-Line Cash of Properties Base Rent (1) Leased 2025 (2) 2026 Basis Basis (4) Basis Basis (4) Basis Basis (4) Basis Basis (4) Texas Dallas 6,108,000 10.8% 98.7% 389,000 612,000 13.7% 13.4% 10.2% 9.7% 70.2% 51.4% 70.0% 50.2% Houston 7,108,000 10.0% 97.3% 595,000 1,520,000 5.6% 4.0% 4.8% 5.5% 28.0% 14.0% 31.7% 15.2% San Antonio 4,411,000 6.6% 94.0% 396,000 923,000 -1.5% -0.6% 1.6% 3.0% 23.5% 12.6% 28.6% 15.1% Austin 1,756,000 3.6% 89.7% 200,000 193,000 4.7% 6.4% 6.9% 10.5% 2.4% -2.4% 54.1% 34.8% Fort Worth 1,108,000 1.6% 90.9% 28,000 227,000 8.1% 10.7% 8.7% 12.4% N/A N/A 59.3% 45.8% El Paso 1,126,000 1.5% 98.5% 77,000 84,000 10.0% 9.0% 8.6% 8.7% N/A N/A 75.6% 54.8% 21,617,000 34.1% 96.2% 1,685,000 3,559,000 6.3% 6.1% 6.0% 6.9% 40.4% 26.4% 47.9% 30.5% Florida Orlando 4,812,000 8.4% 98.4% 494,000 482,000 0.6% -0.1% 1.4% 2.7% 47.3% 24.0% 51.6% 30.6% Tampa 4,533,000 7.4% 99.0% 733,000 1,474,000 6.4% 7.8% 9.9% 9.0% 64.6% 43.7% 75.9% 55.8% Miami/Fort Lauderdale 1,865,000 4.1% 99.2% 199,000 441,000 4.5% 4.9% 9.5% 12.0% 93.2% 62.1% 84.2% 60.2% Jacksonville 2,273,000 3.1% 97.6% 636,000 393,000 5.4% 2.6% 4.8% 4.7% 38.6% 26.0% 45.2% 32.2% Fort Myers 885,000 1.6% 93.9% 9,000 122,000 6.0% 4.3% 1.8% 2.7% N/A N/A 56.5% 34.1% 14,368,000 24.6% 98.3% 2,071,000 2,912,000 4.0% 3.8% 5.7% 6.4% 54.5% 32.2% 60.5% 40.9% California San Francisco 2,475,000 5.5% 96.2% 140,000 710,000 -2.4% -3.1% -3.8% -2.4% 38.7% 17.3% 26.1% 13.6% Los Angeles (5) 2,408,000 5.5% 100.0% 127,000 731,000 -11.8% -11.6% -3.9% -2.5% 30.9% 23.3% 61.7% 50.3% San Diego (5) 1,933,000 4.8% 96.5% 178,000 301,000 -4.9% -1.7% -1.5% 2.9% 51.8% 32.1% 63.3% 38.2% Sacramento 329,000 0.5% 100.0% 94,000 - 2.6% 5.9% -1.1% 1.8% N/A N/A 16.0% 14.4% Fresno 398,000 0.4% 93.4% 124,000 105,000 5.3% 7.5% 12.8% 11.5% 29.9% 18.0% 37.0% 25.2% 7,543,000 16.7% 97.5% 663,000 1,847,000 -5.9% -5.0% -2.6% -0.4% 39.1% 22.1% 41.4% 27.3% Arizona Phoenix 3,518,000 6.5% 98.6% 391,000 478,000 10.9% 9.8% 10.8% 12.2% 64.5% 54.5% 78.6% 60.1% Tucson 848,000 1.2% 100.0% 26,000 5,000 3.9% 4.5% 2.9% 3.8% N/A N/A 45.1% 24.6% 4,366,000 7.7% 98.9% 417,000 483,000 9.5% 8.8% 9.2% 10.5% 64.5% 54.5% 75.1% 56.3% Other Core Charlotte 3,883,000 5.3% 92.0% 229,000 352,000 3.9% 3.8% 11.3% 9.4% 68.5% 49.8% 67.4% 46.5% Las Vegas 1,396,000 3.4% 100.0% 62,000 232,000 20.7% 15.4% 14.6% 9.6% N/A N/A 49.6% 35.1% Atlanta 2,246,000 3.0% 98.1% 187,000 300,000 8.9% 3.1% 9.6% 5.5% 68.1% 52.0% 79.8% 52.4% Denver 886,000 1.6% 100.0% 106,000 180,000 2.8% 4.9% 3.5% 4.8% 21.4% 9.1% 24.5% 10.9% Greenville 1,102,000 1.4% 100.0% - 220,000 7.4% -1.3% 0.0% -2.0% N/A N/A 78.3% 60.2% 9,513,000 14.7% 96.3% 584,000 1,284,000 7.2% 5.3% 9.6% 7.4% 49.2% 33.3% 61.0% 41.2% Total Core Markets 57,407,000 97.8% 97.1% 5,420,000 10,085,000 3.7% 3.5% 4.9% 5.7% 47.5% 29.9% 53.8% 36.1% Total Other Markets 1,580,000 2.2% 98.1% 106,000 93,000 1.5% 0.2% 0.1% -0.2% 11.7% 2.3% 23.1% 17.4% Total Operating Properties 58,987,000 100.0% 97.1% 5,526,000 10,178,000 3.6% 3.4% 4.8% 5.6% 46.6% 29.2% 53.0% 35.6% (1) Based on the Annualized Base Rent as of the reporting period for occupied square feet (without S/L Rent). (2) Includes month-to-month leases. (3) Rental Change is reported for leases signed during the periods presented and does not include leases with terms less than 12 months and leases for first generation space. (4) Excludes straight-line rent adjustments. (5) Includes the Company's share of its less-than-wholly-owned real estate investments. * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. in Square Feet Same PNOI Change* (excluding income from lease terminations) Rental Change New and Renewal Leases (3) Lease Expirations QTR YTD QTR YTD
Page 17 of 24 Lease Expiration Summary - Total Square Feet of Operating Properties Based on Leases Signed Through December 31, 2024 ($ in thousands) (Unaudited) Annualized Current % of Total Base Rent of Base Rent of Square Footage of Leases Expiring Leases Expiring LEASE EXPIRATION Leases Expiring (without S/L Rent) (without S/L Rent) Vacancy 1,698,000 -$ 0.0% 2025 (1) 5,526,000 50,843 10.1% 2026 10,178,000 85,709 17.0% 2027 10,392,000 91,190 18.0% 2028 8,031,000 72,141 14.3% 2029 7,915,000 71,009 14.1% 2030 5,735,000 47,574 9.4% 2031 2,670,000 25,944 5.1% 2032 2,227,000 17,342 3.4% 2033 2,290,000 21,216 4.2% 2034 and beyond 2,325,000 22,447 4.4% TOTAL 58,987,000 505,415$ 100.0% (1) Includes month-to-month leases.
Page 18 of 24 Top 10 Customers by Annualized Base Rent As of December 31, 2024 (Unaudited) % of Total # of % of Total Annualized Customer Leases Location Portfolio SF Base Rent (1) 1 Amazon 2 San Diego, CA 710,000 1 San Antonio, TX 57,000 1 Tucson, AZ 10,000 1.3% 1.6% 2 Mattress Firm 1 Houston, TX 202,000 1 Tampa, FL 109,000 1 San Diego, CA 66,000 1 Jacksonville, FL 49,000 1 Fort Myers, FL 25,000 0.8% 0.7% 3 REPET, Inc. 1 Los Angeles, CA 300,000 0.5% 0.7% 4 Consolidated Electrical Distributors 2 San Antonio, TX 145,000 1 Orlando, FL 104,000 1 San Francisco, CA 84,000 1 Charlotte, NC 42,000 0.6% 0.7% 5 DSV Air & Sea Inc. 3 Houston, TX 385,000 1 San Diego, CA 20,000 0.7% 0.7% 6 Trane U.S. Inc. 1 Fort Worth, TX 147,000 1 Jacksonville, FL 81,000 1 Dallas, TX 58,000 1 Greenville, SC 55,000 1 Denver, CO 18,000 1 New Orleans, LA 11,000 1 Orlando, FL 7,000 0.6% 0.6% 7 FedEx Corp. 1 Dallas, TX 157,000 1 Fort Myers, FL 63,000 1 San Diego, CA 51,000 1 Fort Lauderdale, FL 50,000 0.6% 0.6% 8 The Chamberlain Group 2 Tucson, AZ 350,000 1 Charlotte, NC 11,000 0.6% 0.6% 9 Infinite Electronics Inc. 4 Dallas, TX 320,000 0.5% 0.5% 10 Performance Food Group, Inc. 1 Orlando, FL 292,000 0.5% 0.5% 38 3,979,000 6.7% 7.2% (1) Calculation: Customer Annualized Base Rent as of 12/31/24 (without S/L Rent) / Total Annualized Base Rent (without S/L Rent). Leased Total SF
Page 19 of 24 Debt and Equity Market Capitalization December 31, 2024 ($ in thousands, except per share data) (Unaudited) Unsecured debt (fixed rate) (1) Maturity Dates Weighted Average Interest Rate Principal Payments Maturing Average Years to Maturity March 18, 2025 1.58% 50,000$ August 28, 2025 3.80% 20,000 October 1, 2025 3.97% 25,000 October 7, 2025 3.99% 50,000 Year 2026 2.56% 140,000 Year 2027 2.74% 175,000 Year 2028 3.10% 160,000 Year 2029 3.88% 155,000 Year 2030 and beyond 3.61% 735,000 Total unsecured debt (fixed rate) (1) 3.34% 1,510,000 4.8 Unsecured bank credit facilities (variable rate) $50MM Line - 5.335% - matures 7/31/2028 - $625MM Line - 5.222% - matures 7/31/2028 - Total carrying amount of debt 1,510,000 Total unamortized debt issuance costs (6,438) Total debt, net of unamortized debt issuance costs 1,503,562$ Equity market capitalization Shares outstanding - common 51,825,798 Price per share at quarter end 160.49$ Total equity market capitalization 8,317,522$ Total market capitalization (debt and equity) (2) 9,827,522$ Total debt / total market capitalization (2) 15.4% (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. (2) Debt refers to total carrying amount of debt.
Page 20 of 24 Continuous Common Equity Program Through December 31, 2024 ($ in thousands, except per share data) (Unaudited) Common Stock Weighted Average Price Gross Proceeds (1) (In shares) (Per share) (In thousands) 1st Quarter 2024: Total shares issued and proceeds received during the three months ended 3/31/2024 - -$ -$ 2nd Quarter 2024: Total shares issued and proceeds received during the three months ended 6/30/2024 218,929 168.62$ 36,916$ (3) 3rd Quarter 2024: Total shares issued and proceeds received during the three months ended 9/30/2024 239,750 179.74$ 43,093$ (3) 4th Quarter 2024: Total shares issued and proceeds received during the three months ended 12/31/2024 914,780 174.23$ 159,381$ (3) Total direct common stock issuance for the twelve months ended 12/31/2024 1,373,459 174.30$ 239,390$ Common Stock Weighted Average Price Gross Proceeds (1) (In shares) (Per share) (In thousands) Forward Shares Agreements Outstanding at 12/31/2023 406,041 183.92$ 74,679$ 1st Quarter 2024: Forward shares issued and proceeds received (272,342) 183.59 (50,000) (3) New forward sale agreements 286,671 181.95 52,160 Forward Shares Agreements Outstanding at 3/31/2024 420,370 182.79$ 76,839$ 2nd Quarter 2024: Forward shares issued and proceeds received (420,370) 182.79 (76,839) (3) New forward sale agreements 600,053 166.65 100,000 Forward Shares Agreements Outstanding at 6/30/2024 600,053 166.65$ 100,000$ 3rd Quarter 2024: Forward shares issued and proceeds received (300,502) 166.39 (50,000) (3) New forward sale agreements 1,099,612 185.80 204,306 Forward Shares Agreements Outstanding at 9/30/2024 1,399,163 181.76$ 254,306$ 4th Quarter 2024: Forward shares issued and proceeds received (1,704,863) 180.55 (307,814) (3) New forward sale agreements 690,953 175.05 120,954 Forward Shares Agreements Outstanding at 12/31/2024 385,253 175.07$ 67,446$ Forward shares issued and proceeds received (214,138) 174.87 (37,446) (4) Forward Shares Agreements Outstanding at 2/5/2025 (2) 171,115 175.32$ 30,000$ Gross Sales Price (In thousands) Total Gross Sales Price Authorized for Issuance on 10/25/2024 1,000,000$ Amount settled from 10/25/2024 through 2/5/2025 (250,335) Amount of outstanding forward equity sale agreements as of 2/5/2025 (30,000) (2) Remaining Capacity for Issuance as of 2/5/2025 719,665$ (1) During the three and twelve months ended December 31, 2024, the Company recognized offering-related costs for direct issuances and forward agreements of $5,037,000 and $7,747,000 respectively, which are not deducted from proceeds above. SALES AGENCY FINANCING AGREEMENTS (4) Gross proceeds received under the Company's continuous equity offering from 1/1/2025 through 2/5/2025 were $37,446,000. (3) Gross proceeds received under the Company's continuous equity offering from 1/1/2024 through 12/31/2024 were $724,043,000. DIRECT COMMON STOCK ISSUANCE ACTIVITY (2) Available through forward equity sale agreements before the applicable settlement periods expire in November 2025. FORWARD EQUITY SALE AGREEMENTS ACTIVITY
Page 21 of 24 Debt-to-EBITDAre Ratios ($ in thousands) (Unaudited) Quarter Ended December 31, 2024 (1) 2024 2023 2022 2021 2020 Debt 1,503,562$ 1,503,562$ 1,674,827 1,861,744 1,451,778 1,310,895 EBITDAre* 117,399 447,186 401,335 337,536 278,959 245,669 DEBT-TO-EBITDAre RATIO* 3.20 3.36 4.17 5.52 5.20 5.34 Debt 1,503,562$ 1,503,562$ 1,674,827 1,861,744 1,451,778 1,310,895 Subtract development and value-add properties in lease-up or under construction (424,068) (424,068) (374,924) (324,831) (376,611) (225,964) Adjusted Debt* 1,079,494$ 1,079,494$ 1,299,903 1,536,913 1,075,167 1,084,931 EBITDAre* 117,399$ 447,186$ 401,335 337,536 278,959 245,669 Adjust for acquisitions as if owned for entire period 4,632 26,514 5,490 6,900 4,213 1,906 Adjust for development and value-add properties in lease-up or under construction (827) (1,558) (1,909) (857) (700) (1,327) Adjust for properties sold during the period - (177) (2,001) (235) (1,517) (1,081) Pro Forma EBITDAre* 121,204$ 471,965$ 402,915 343,344 280,955 245,167 ADJUSTED DEBT-TO-PRO FORMA EBITDAre RATIO* 2.23 2.29 3.23 4.48 3.83 4.43 (1) Quarterly calculations annualize EBITDAre for the quarter. (2) Yearly calculations use EBITDAre for the 12-month period. * This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. Years Ended December 31, (2)
Page 22 of 24 Outlook for 2025 (Unaudited) Q1 2025 Y/E 2025 Q1 2025 Y/E 2025 Net income attributable to common stockholders 55,378$ 248,094 59,544 258,632 Depreciation and amortization 51,353 215,768 51,353 215,768 Funds from operations attributable to common stockholders* 106,731$ 463,862 110,897 474,400 Weighted average shares outstanding - Diluted 52,070 52,686 52,070 52,686 Per share data (diluted): Net income attributable to common stockholders 1.06$ 4.71 1.14 4.91 Funds from operations attributable to common stockholders 2.05 8.80 2.13 9.00 The following assumptions were used for the mid-point: Metrics FFO per share $8.80 - $9.00 $8.35 FFO per share increase over prior year 6.6% 7.2% FFO per share increase over prior year excluding gain on involuntary conversion and business interruption claims 7.1% 7.9% Same PNOI growth: cash basis (1) 5.4% - 6.4% (2) 5.6% Average month-end occupancy - operating portfolio 95.5% - 96.5% 96.8% Development starts: Square feet 2.5 million 1.6 million Projected total investment $300 million $230 million Operating property acquisitions $150 million $390 million Operating property dispositions (Potential gains on dispositions are not included in the projections) $15 million $14 million Capital proceeds $450 million $724 million General and administrative expense (3) $21.1 million $20.6 million *This is a non-GAAP financial measure. Please refer to Glossary of REIT Terms. Initial Guidance for Year 2025 Actual for Year 2024 (2) Includes properties which have been in the operating portfolio since 1/1/24 and are projected to be in the operating portfolio through 12/31/25; includes 54,633,000 square feet. (3) Approximately 37% of the estimated annual general and administrative expense is expected to be incurred in the first quarter of 2025, primarily due to accelerated expense for employees who are retirement-eligible under our equity incentive plans. (1) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases, and income from lease terminations. Low Range (In thousands, except per share data) High Range
Page 23 of 24 Glossary of REIT Terms Listed below are definitions of commonly used real estate investment trust (“REIT”) industry terms. For additional information on REITs, please see the National Association of Real Estate Investment Trusts (“Nareit”) web site at www.reit.com. Adjusted Debt-to-Pro Forma EBITDAre Ratio: A ratio calculated by dividing a company’s adjusted debt by its pro forma EBITDAre. Debt is adjusted by subtracting the cost of development and value-add properties in lease-up or under construction. EBITDAre is further adjusted by adding an estimate of NOI for significant acquisitions as if the acquired properties were owned for the entire period, and by subtracting NOI from development and value-add properties in lease-up or under construction and from properties sold during the period. The Adjusted Debt-to-Pro Forma EBITDAre Ratio is a non-GAAP financial measure used to analyze the Company’s financial condition and operating performance relative to its leverage, on an adjusted basis, so as to normalize and annualize property changes during the period. Cash Basis: The Company adjusts its GAAP reporting to exclude straight-line rent adjustments and amortization of market rent intangibles for acquired leases. The cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company’s portfolio. Debt-to-EBITDAre Ratio: A ratio calculated by dividing a company’s debt by its EBITDAre; this non-GAAP measure is used to analyze the Company’s financial condition and operating performance relative to its leverage. Debt-to-Total Market Capitalization Ratio: A ratio calculated by dividing a company’s debt by the total amount of a company’s equity (at market value) and debt. Earnings Before Interest Taxes Depreciation and Amortization for Real Estate (“EBITDAre”): In accordance with standards established by Nareit, EBITDAre is computed as Earnings, defined as Net Income, excluding gains or losses from sales of real estate investments and non-operating real estate, plus interest, taxes, depreciation and amortization. EBITDAre is a non-GAAP financial measure used to measure the Company’s operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis. Funds From Operations (“FFO”): FFO is the most commonly accepted reporting measure of a REIT’s operating performance, and the Company computes FFO in accordance with standards established by Nareit in the Nareit Funds from Operations White Paper — 2018 Restatement. It is equal to a REIT’s net income (loss) attributable to common stockholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure used to evaluate the performance of the Company’s investments in real estate assets and its operating results. FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims: A reporting measure calculated as FFO (as defined above), adjusted to exclude gain on involuntary conversion and business interruption claims. The Company believes that this exclusion presents a more meaningful comparison of operating performance. Interest and Fixed Charge Coverage Ratio: A non-GAAP financial measure calculated by dividing the Company’s EBITDAre by its interest expense. We believe this ratio is useful to investors because it provides a basis for analysis of the Company’s leverage, operating performance and its ability to service the interest payments due on its debt. Industrial Properties: Generally consisting of one or more buildings comprised of four concrete walls tilted up on a slab of concrete. An internal office component is then added. Business uses include warehousing, distribution, light manufacturing and assembly, research and development, showroom, office, or a combination of some or all of the aforementioned. Leases Expiring and Renewal Leases Signed of Expiring Square Feet: Includes renewals during the period with terms commencing during the period and after the end of the period. Operating Land: Land with no buildings or improvements that generates income from leases with tenants; included in Real estate properties on the Consolidated Balance Sheets. Operating Properties: Stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. Percentage Leased: The percentage of total leasable square footage for which there is a signed lease, including month-to-month leases, as of the close of the reporting period. Space is considered leased upon execution of the lease.
Page 24 of 24 Glossary of REIT Terms (continued) Percentage Occupied: The percentage of total leasable square footage for which the lease term has commenced as of the close of the reporting period. Property Net Operating Income (“PNOI”): Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company’s share of income and property operating expenses from its less-than-wholly-owned real estate investments. PNOI is a non-GAAP, property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results. Real Estate Investment Trust (“REIT”): A company that owns and, in most cases, operates income-producing real estate such as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in financing real estate. The shares of most REITs are freely traded, usually on a major stock exchange. To qualify as a REIT, a company must distribute at least 90 percent of its taxable income to its stockholders annually. A company that qualifies as a REIT is permitted to deduct dividends paid to its stockholders from its corporate taxable income. As a result, most REITs remit at least 100 percent of their taxable income to their stockholders and therefore owe no corporate federal income tax. Taxes are paid by stockholders on the dividends received. Most states honor this federal treatment and also do not require REITs to pay state income tax. Rental changes on new and renewal leases: Rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease’s term and the annualized base rent of the rent due the last month of the former lease’s term, for leases signed during the reporting period. If free rent is given, then the first positive full rent value is used. Rental amounts exclude base stop amounts, holdover rent, and premium or discounted rent amounts. This calculation excludes leases with terms less than 12 months and leases for first generation space on properties acquired or developed by EastGroup. Same Properties: Operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are excluded. The Same Property Pool includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through December 31, 2024. Same Property Net Operating Income (“Same PNOI”): Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense), plus the Company’s share of income and property operating expenses from its less-than-wholly-owned real estate investments, for the same properties owned by the Company during the entire current and prior year reporting periods. Same PNOI is a non-GAAP, property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis. Same PNOI Excluding Income from Lease Terminations: Same PNOI (as defined above), adjusted to exclude income from lease terminations. The Company believes it is useful to evaluate Same PNOI Excluding Income from Lease Terminations on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers’ rent payments over the lives of the leases; GAAP requires the recognition of rental income on the straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; the cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company’s portfolio. Straight-Lining: The process of averaging the customer’s rent payments over the life of the lease. GAAP requires real estate companies to “straight-line” rents. Total Return: A stock’s dividend income plus capital appreciation/depreciation over a specified period as a percentage of the stock price at the beginning of the period. Value-Add Properties: Properties that are either acquired but not stabilized or can be converted to a higher and better use. Properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% leased as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20% or greater of the gross carrying amount will be spent to redevelop the property.
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Cover Page
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Feb. 06, 2025 |
| Cover [Abstract] |
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| Document Period End Date |
Feb. 06, 2025
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| Document Type |
8-K
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| Entity Central Index Key |
0000049600
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| Title of 12(b) Security |
Common stock, $0.0001 par value per share
|
| Trading Symbol |
EGP
|
| Written Communications |
false
|
| Entity Incorporation, State or Country Code |
MD
|
| Entity Registrant Name |
EASTGROUP PROPERTIES, INC
|
| Entity Address, Address Line One |
400 W. Parkway Place, Suite 100
|
| Entity Address, City or Town |
Ridgeland
|
| Entity Address, State or Province |
MS
|
| Entity Address, Postal Zip Code |
39157
|
| City Area Code |
601
|
| Local Phone Number |
354-3555
|
| Entity File Number |
1-07094
|
| Entity Tax Identification Number |
13-2711135
|
| Soliciting Material |
false
|
| Pre-commencement Tender Offer |
false
|
| Pre-commencement Issuer Tender Offer |
false
|
| Emerging Growth Company |
false
|
| Security Exchange Name |
NYSE
|
| Amendment Flag |
false
|
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
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dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
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| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
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| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| Namespace Prefix: |
dei_ |
| Data Type: |
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| Balance Type: |
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| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
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| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
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| Name: |
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| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| Namespace Prefix: |
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| Data Type: |
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| Balance Type: |
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| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
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| Period Type: |
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|
| X |
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| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
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| Namespace Prefix: |
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| Data Type: |
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| Period Type: |
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| X |
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-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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| Balance Type: |
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| Period Type: |
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| X |
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-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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| Namespace Prefix: |
dei_ |
| Data Type: |
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| Period Type: |
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| X |
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-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
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dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
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| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
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dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
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dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Eastgroup Properties (NYSE:EGP)
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From Jan 2025 to Feb 2025
Eastgroup Properties (NYSE:EGP)
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From Feb 2024 to Feb 2025
