EastGroup Properties : Q1 2021 Financial Supplement

2021

FIRST QUARTER

Conference Call

877-240-5772 | ID - EastGroup April 28, 2021

11:00 a.m. Eastern Time webcast available at EastGroup.net

Supplemental Information

March 31, 2021

400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: [phone] | FAX: [phone] | EastGroup.net

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 2021........................................................................................................	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" or "plans" and variations of such words or 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. 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 duration and extent of the impact of the coronavirus ("COVID-19") pandemic and any related orders or other formal recommendations for social distancing on our business operations or the business operations of our tenants (including their ability to timely make rent payments) and the economy generally; disruption in supply and delivery chains; 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; 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 the significant uncertainty as to when and the conditions under which current or potential tenants will be able to operate physical locations in the future; potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws or REIT or corporate income tax laws, and potential increases in real property tax rates; our ability to maintain our qualification as a REIT; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; natural disasters such as fires, floods, tornadoes, hurricanes and earthquakes; pandemics, epidemics or other public health emergencies, such as the outbreak of COVID-19; the terms of governmental regulations that affect us and interpretations of those regulations, including the costs of compliance with those regulations, changes in real estate and zoning laws and increases in real property tax rates; credit risk in the event of non-performance by the counterparties to our interest rate swaps; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; our ability to retain key personnel; the consequences of future terrorist attacks or civil unrest; 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 Annual Report on Form 10-K for the year ended December 31, 2020, and in its subsequent Quarterly Reports on Form 10-Q. The Company assumes no obligation to update publicly any forward-looking statements, including its Outlook for 2021, whether as a result of new information, future events or otherwise.

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Consolidated Balance Sheets

(In thousands, except share and per share data) (Unaudited)

ASSETS		March 31, 2021			December 31, 2020
Real estate properties	$	3,230,418	3,159,497
Development and value-add properties		346,245	359,588
		3,576,663		3,519,085
Less accumulated depreciation		(979,709)		(955,328)
		2,596,954	2,563,757
Unconsolidated investment		7,646	7,446
Cash		68	21
Other assets		152,253		149,579
TOTAL ASSETS	$	2,756,921	2,720,803
LIABILITIES AND EQUITY
LIABILITIES
Unsecured bank credit facilities	$	91,638	124,194
Unsecured debt		1,157,642	1,107,708
Secured debt		36,783	78,993
Accounts payable and accrued expenses		88,232	69,573
Other liabilities		65,828	69,817
Total Liabilities		1,440,123			1,450,285
EQUITY
Stockholders' Equity:
Common shares; $0.0001 par value; 70,000,000 shares authorized;
40,021,537 shares issued and outstanding at March 31, 2021
and 39,676,828 at December 31, 2020		4	4
Excess shares; $0.0001 par value; 30,000,000 shares
authorized; no shares issued		-	-
Additional paid-in capital		1,652,445	1,610,053
Distributions in excess of earnings		(334,000)	(329,667)
Accumulated other comprehensive loss		(2,538)	(10,752)
Total Stockholders' Equity		1,315,911		1,269,638
Noncontrolling interest in joint ventures		887	880
Total Equity		1,316,798		1,270,518
TOTAL LIABILITIES AND EQUITY	$	2,756,921		2,720,803

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Consolidated Statements of Income and Comprehensive Income

(In thousands, except per share data) (Unaudited)

		Three Months Ended
		March 31,
		2021	2020
REVENUES
Income from real estate operations	$	97,917	88,577
Other revenue		14	51
EXPENSES		97,931	88,628
Expenses from real estate operations		27,820	25,829
Depreciation and amortization		30,313	27,892
General and administrative		4,036	3,281
Indirect leasing costs		330	108
		62,499	57,110
OTHER INCOME (EXPENSE)
Interest expense		(8,276)	(8,457)
Other		201	237
NET INCOME		27,357	23,298
Net income attributable to noncontrolling interest in joint ventures		(18)	(1)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON
STOCKHOLDERS		27,339	23,297
Other comprehensive income (loss) - interest rate swaps		8,214	(15,790)
TOTAL COMPREHENSIVE INCOME	$	35,553	7,507
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders	$	0.69	0.60
Weighted average shares outstanding		39,673	38,882
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders	$	0.69	0.60
Weighted average shares outstanding		39,765	38,961

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Reconciliations of GAAP to Non-GAAP Measures

(In thousands, except per share data) (Unaudited)

		Three Months Ended
		March 31,
		2021	2020
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
COMMON STOCKHOLDERS	$	27,339	23,297
Depreciation and amortization		30,313	27,892
Company's share of depreciation from unconsolidated investment		34	35
Depreciation and amortization from noncontrolling interest		-	(42)
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	57,686	51,182
NET INCOME	$	27,357	23,298
Interest expense (1)		8,276	8,457
Depreciation and amortization		30,313	27,892
Company's share of depreciation from unconsolidated investment		34	35
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")		65,980	59,682
Gain on sales of real estate investments and non-operating real estate		-	-
EBITDA FOR REAL ESTATE ("EBITDAre")	$	65,980	59,682
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO
EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
Net income attributable to common stockholders	$	0.69	0.60
FFO attributable to common stockholders	$	1.45	1.31
Weighted average shares outstanding for EPS and FFO purposes		39,765	38,961

1. Net of capitalized interest of $2,237 and $2,561 for the three months ended March 31, 2021 and 2020, respectively.

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