NYSE$EGP

EastGroup Properties Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

EastGroup reported strong Q3 2020 results, surpassing expectations despite global turbulence, with significant increases in FFO and PNOI.

EastGroup Properties announced a strong third quarter with FFO per share increasing by 6.3% to $1.36 and EPS at $0.62. The company's portfolio performance exceeded expectations, with same property net operating income increasing by 3.0% on a cash basis. EGP also increased the dividend by $0.04 per share (5.3%) to $0.79 per share.

  • FFO increased to $1.36 per share, a 6.3% increase year-over-year.
  • EPS increased to $0.62, compared to $0.60 for the same period of 2019.
  • Same Property Net Operating Income increased by 3.0% on a cash basis.
  • The company's portfolio was 97.8% leased and 96.4% occupied as of September 30, 2020.

Headline financials

Total Revenue

$92M

Previous: $83.9M+9.6%
EPS (adj)

$1.36

Previous: $1.28+6.3%
Operating Portfolio Leased Percentage

97.8%

No prior period
Operating Portfolio Occupancy Percentage

96.4%

No prior period
Capital Expenditures

-$162M

Previous: -$314M+48.5%
Free Cash Flow

-$137M

Previous: -$292M+52.9%
Net Income

$24.4M

Previous: $22.6M+8.1%
Operating Income

$87.2M

Previous: $79.6M+9.5%
Gross Profit

$92M

Previous: $83.9M+9.6%
Cash & Equivalents

$19K

Previous: $130K-85.4%
Total Assets

$2.64B

Previous: $2.4B+9.8%
Stock-Based Comp

$1.61M

Previous: $1.22M+32.5%

Revenue & EPS history

EastGroup · Revenue · Quarterly

$92M

Q3 2020+9.6%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

EastGroup estimates EPS for 2020 to be in the range of $2.40 to $2.44 and FFO per share to be in the range of $5.33 to $5.37.

Tailwinds

  • FFO per share is projected to increase 7.4% over the prior year.
  • Same PNOI growth on a cash basis is expected to be between 2.5% and 3.5%.
  • Average month-end occupancy is anticipated to be 96.5%.
  • Development starts are projected to be 825,000 square feet.
  • Unsecured debt closing in the period is expected to be $275 million at a weighted average interest rate of 2.56%.

Headwinds

  • The COVID-19 pandemic has disrupted global, national, and local economies and the financial markets.
  • The future impact of COVID-19 on the Company is largely dependent on the severity and duration of the economic uncertainty and its effect on EastGroup’s customers
  • It is difficult to predict the future impact on our business, financial condition, results of operations and cash flows.
  • Projections are based on management’s current beliefs and assumptions about the industry and the markets in which we operate; there are known and unknown risks and uncertainties associated with these projections.
  • The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2020, whether as a result of new information, future events or otherwise.

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 Q3 2020

Historical avgQ3 2020

-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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