NYSE$EGP

EastGroup Properties Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

EastGroup's Q4 2020 performance exceeded expectations, with FFO per share above pre-COVID forecast and a record high percentage leased.

EastGroup Properties reported a net income of $0.94 per diluted share for Q4 2020, compared to $1.28 per diluted share for Q4 2019. Funds from Operations (FFO) were $1.38 per share, an 8.7% increase from Q4 2019. The company's portfolio was 98.0% leased and 97.3% occupied as of December 31, 2020, with average occupancy of 96.9% for the quarter. Rental rates on new and renewal leases increased an average of 15.4% on a straight-line basis.

  • Net income attributable to common stockholders was $0.94 per diluted share, compared to $1.28 per diluted share for Q4 2019.
  • Funds from Operations (FFO) increased by 8.7% to $1.38 per share compared to $1.27 per share for Q4 2019.
  • Leased percentage reached 98.0% and occupancy was 97.3% as of December 31, 2020.
  • Rental rates on new and renewal leases increased by 15.4% on a straight-line basis.

Headline financials

Total Revenue

$92.7M

Previous: $86.6M+7.1%
EPS (adj)

$1.38

Previous: $1.27+8.7%
Operating Portfolio Leased Percentage

98.0%

Previous: 97.6%+0.4%
Operating Portfolio Occupancy Percentage

97.3%

Previous: 97.1%+0.2%
Net Income

$37.2M

Previous: $51.3M-27.5%
Operating Income

$37.2M

Previous: $62.4M-40.4%
Gross Profit

$66.8M

Previous: $62.3M+7.3%
Cash & Equivalents

$21K

Previous: $224K-90.6%
Total Assets

$2.72B

Previous: $2.55B+6.9%
Stock-Based Comp

$1.55M

Previous: $2.66M-41.9%

Revenue & EPS history

EastGroup · Revenue · Quarterly

$92.7M

Q4 2020+7.1%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

EastGroup estimates EPS for 2021 to be in the range of $2.52 to $2.62 and FFO per share to be in the range of $5.63 to $5.73.

Tailwinds

  • FFO per share increase over prior year 5.6%
  • Same PNOI growth: cash basis 3.5% - 4.5%
  • Average month-end occupancy 95.9% - 96.9%
  • Lease termination fee income $585,000
  • Unsecured debt closing in period $250 million at 2.70% weighted average interest rate

Headwinds

  • International, national, regional and local economic conditions
  • The duration and extent of the impact of coronavirus disease (COVID-19) on our business and the businesses of our tenants (including their ability to timely make rent payments) and the economy generally
  • The general level of interest rates and ability to raise equity capital on attractive terms
  • Financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all
  • The competitive environment in which the Company operates

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 Q4 2020

Historical avgQ4 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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