NYSE$EGP

EastGroup Properties Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

EastGroup reported strong growth in FFO per share, driven by record highs in leasing, occupancy, and same-store net operating income.

EastGroup Properties announced strong second-quarter results, with a 17% increase in FFO per share. The company benefited from robust leasing activity, high occupancy rates, and strong same-store net operating income growth. EGP remains cautious about the global economy and rising interest rates but is optimistic about long-term growth prospects.

  • Net income attributable to common stockholders was $1.09 per diluted share, compared to $0.69 per diluted share in Q2 2021.
  • Funds from Operations (FFO) was $1.72 per share, a 17.0% increase compared to $1.47 per share in Q2 2021.
  • Same Property Net Operating Income (excluding income from lease terminations) increased by 9.5% on a cash basis and 7.7% on a straight-line basis.
  • The operating portfolio was 99.1% leased and 98.5% occupied as of June 30, 2022, with an average occupancy of 98.1% for the quarter.

Headline financials

Total Revenue

$119M

Previous: $99.6M+19.1%
EPS (adj)

$1.72

Previous: $1.47+17.0%
Operating Portfolio Leased Percentage

99.1%

Previous: 98.3%+0.8%
Operating Portfolio Occupancy Percentage

98.5%

Previous: 96.8%+1.8%
Capital Expenditures

-$307M

Previous: -$102M-199.8%
Free Cash Flow

-$261M

Previous: -$74.9M-248.6%
Net Income

$46.2M

Previous: $27.6M+67.4%
Operating Income

$112M

Previous: $94M+19.6%
Gross Profit

$119M

Previous: $99.6M+19.1%
Cash & Equivalents

$5.56M

Previous: $38.6M-85.6%
Total Assets

$3.85B

Previous: $2.86B+34.9%
Stock-Based Comp

$2.42M

Previous: $2.41M+0.1%

Revenue & EPS history

EastGroup · Revenue · Quarterly

$119M

Q2 2022+19.1%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

EastGroup estimates its EPS for 2022 to be in the range of $4.03 to $4.15 and FFO per share to be in the range of $6.84 to $6.96.

Tailwinds

  • FFO per share is projected to increase 13.3% over the prior year.
  • Same PNOI growth on a cash basis is expected to be between 8.0% and 9.0%.
  • Average month-end occupancy for the operating portfolio is projected to be between 97.3% and 98.3%.
  • The company anticipates $2.5 million in lease termination fee income.
  • Development starts are projected to reach 3.2 million square feet.

Headwinds

  • The projections are based on management's current beliefs and assumptions, which are subject to risks and uncertainties.
  • Economic conditions and the impact of the COVID-19 pandemic could affect business operations.
  • Disruptions in supply and delivery chains may impact development costs.
  • Increases in interest rates and the ability to raise equity capital on attractive terms pose risks.
  • Financing risks include the potential inability to refinance existing debt or obtain new financing on favorable terms.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.2%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+7.8%

Q2 2020

Best reaction

-12.4%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+0.7%+2.1%
Q4 2025+2.9%+4.9%+2.7%
Q3 2025-1.0%-3.0%+0.2%
Q2 2025+0.6%+1.9%+3.1%
Q1 2025+1.6%+1.6%+2.7%
Q4 2024+1.5%+4.0%+7.2%
Q3 2024-0.9%-2.1%-4.6%
Q2 2024-3.1%-2.2%-3.0%
Q1 2024-3.3%-4.5%-1.5%
Q4 2023+2.1%+2.3%+0.0%
Q3 2023+1.8%+1.6%+11.1%
Q2 2023-0.7%-5.4%-4.5%
Q1 2023-2.2%+0.2%-3.9%
Q4 2022-0.8%-2.5%-5.5%
Q3 2022+5.3%+8.2%+8.2%
Q2 2022-0.5%+3.4%+4.4%
Q1 2022-1.8%-8.9%-23.2%
Q4 2021+2.9%-1.9%-3.1%
Q3 2021+1.6%+2.7%+8.9%
Q2 2021-0.0%+0.2%-2.7%
Q1 2021+0.7%+1.5%+0.4%
Q4 2020-0.6%+0.2%-4.4%
Q3 2020-2.0%-1.9%+1.7%
Q2 2020+7.8%+6.9%+9.2%
Q1 2020-7.9%-5.5%+4.7%
Q4 2019+0.6%+2.0%-4.3%
Q3 2019+4.4%+3.9%+3.2%
Q2 2019+1.6%+2.6%+3.4%
Q1 2019+0.8%+2.0%+2.4%
Q4 2018+0.9%+1.8%+0.9%
Q3 2018+2.1%+1.9%+6.8%
Q2 2018-2.2%-2.8%+4.4%
Q1 2018-0.5%+0.7%+5.3%
Q4 2017+1.8%-3.2%-4.4%
Q3 2017-0.8%-3.0%+1.1%
Q2 2017+2.7%+2.4%+2.1%
Q1 2017+1.4%+1.2%+3.1%
Q4 2016-2.3%-0.7%+4.8%
Q3 2016-0.0%+0.5%-4.8%
Q2 2016-0.7%+0.1%+1.0%
Q1 2016-3.4%
Q4 2015-2.8%
Q3 2015+0.7%
Q2 2015+0.4%
Q1 2015-1.4%
Q4 2014-2.6%
Q3 2014+0.5%
Q2 2014-0.9%
Q1 2014+0.5%
Q4 2013-1.4%
Q3 2013+2.4%
Q2 2013+3.4%
Q1 2013+0.5%
Q4 2012+0.3%
Q3 2012-1.4%
Q2 2012-3.4%
Q1 2012+0.9%
Q4 2008+0.8%
Q4 2011+0.8%
Q3 2011-1.2%
Q2 2011-12.4%
Q1 2010-12.4%
Q1 2011+0.7%
Q4 2010+0.5%
Q3 2010+0.2%
Q3 2009+0.2%
Q2 2009+1.1%
Q4 2009+1.1%
Q2 2010+1.1%

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