EastGroup Properties, Inc. (EGP) Bundle
A Brief History of EastGroup Properties, Inc.
EastGroup Properties, Inc. (EGP) has established itself as a leading industrial real estate investment trust (REIT) focused on the development, acquisition, and operation of industrial properties. As of 2024, the company has a diversified portfolio primarily located in major distribution markets across the United States.
Financial Performance Overview
For the three months ended September 30, 2024, EastGroup reported a net income attributable to common stockholders of $55.18 million ($1.13 per diluted share), compared to $48.90 million ($1.07 per diluted share) for the same period in 2023. For the nine months ended September 30, 2024, net income was $169.11 million ($3.49 per diluted share), up from $137.04 million ($3.06 per diluted share) in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $55.18 | $48.90 | $169.11 | $137.04 |
| Net Income per Share | $1.13 | $1.07 | $3.49 | $3.06 |
| Property Net Operating Income (PNOI) Growth | 14.5% | N/A | 13.4% | N/A |
Portfolio and Operations
As of September 30, 2024, EastGroup's operating portfolio was 96.9% leased and 96.5% occupied. The company executed new and renewal leases on 6.62 million square feet, representing 11.6% of its total operating portfolio.
Acquisitions and Developments
During the nine months ended September 30, 2024, EastGroup acquired properties totaling 684,000 square feet for $143.59 million. The company also initiated construction on five development projects, totaling 783,000 square feet.
Liquidity and Capital Resources
As of September 30, 2024, EastGroup reported total immediate liquidity of approximately $943.61 million, comprised of $16.96 million in cash and cash equivalents, $672.35 million available on unsecured credit facilities, and $254.31 million in gross proceeds from outstanding forward equity sale agreements.
Debt Profile
EastGroup's total unsecured debt as of September 30, 2024, was $1.63 billion, with a weighted average interest rate of 3.35%. The company has scheduled principal payments totaling $120 million for the remainder of 2024.
Dividends
In 2024, EastGroup declared common dividends totaling $1.40 per share, reflecting the company’s commitment to returning value to shareholders while maintaining a strong balance sheet.
Conclusion
EastGroup Properties, Inc. continues to thrive as a key player in the industrial real estate sector, demonstrating robust financial performance and strategic growth through acquisitions and developments.
A Who Owns EastGroup Properties, Inc. (EGP)
Major Shareholders
As of 2024, EastGroup Properties, Inc. (EGP) has a diversified ownership structure comprising institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.1% |
| Institutional Investor | BlackRock, Inc. | 9.8% |
| Institutional Investor | State Street Corporation | 7.4% |
| Mutual Fund | Fidelity Investments | 5.5% |
| Individual Shareholder | David H. Hargrove | 2.3% |
Institutional Ownership
Institutional ownership has been a significant factor in EastGroup's stock performance. As of September 30, 2024, institutional investors owned approximately 77.3% of the total shares outstanding, reflecting strong confidence in the company’s management and growth prospects.
Recent Stock Performance
As of October 2024, EastGroup Properties, Inc. shares were trading at approximately $75.50. The stock has shown a year-to-date increase of 15.6%, outperforming the broader REIT sector, which has averaged a 10.2% increase during the same period.
Financial Overview
For the nine months ended September 30, 2024, EastGroup Properties reported:
| Financial Metric | Amount (in millions) |
|---|---|
| Net Income Attributable to Common Stockholders | $169.1 |
| Funds from Operations (FFO) | $299.9 |
| Total Assets | $4,754.1 |
| Total Liabilities | $1,921.4 |
| Total Equity | $2,832.7 |
Dividends
EastGroup Properties declared dividends totaling $184.0 million during the nine months ended September 30, 2024, with a current dividend yield of 1.85%.
Ownership Changes
In the past year, EastGroup has seen a fluctuation in its shareholder base, with significant activity from institutional investors. The company has also initiated a common stock offering, which raised approximately $92.2 million in net proceeds to support its growth initiatives.
Conclusion on Ownership Dynamics
EastGroup Properties, Inc. continues to attract substantial institutional interest, reflecting its solid operational performance and growth potential in the industrial real estate sector. Ownership dynamics are likely to evolve as the company pursues further acquisitions and development projects.
EastGroup Properties, Inc. (EGP) Mission Statement
Company Overview
EastGroup Properties, Inc. (EGP) is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of industrial properties. The company primarily serves the logistics and distribution industries, emphasizing strategic locations to facilitate efficient supply chain operations.
Mission Statement
As of 2024, EastGroup Properties aims to maximize shareholder value through the acquisition, development, and management of high-quality industrial properties in key markets across the United States. The company is committed to operational excellence, sustainability, and creating value for its tenants and investors.
Financial Performance Indicators
EastGroup Properties has demonstrated robust financial growth, as evident from the following key metrics for the third quarter of 2024:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income Attributable to Common Stockholders | $55,180,000 ($1.13 per diluted share) | $48,896,000 ($1.07 per diluted share) | 14.1% |
| Funds from Operations (FFO) | $104,127,000 ($2.13 per diluted share) | $91,446,000 ($2.00 per diluted share) | 14.0% |
| Property Net Operating Income (PNOI) | $118,029,000 | $103,000,000 | 14.5% |
| Total Assets | $4,754,065,000 | $4,519,213,000 | 5.2% |
| Total Liabilities | $1,921,374,000 | $1,910,579,000 | 0.6% |
| Total Equity | $2,832,691,000 | $2,608,634,000 | 8.6% |
Strategic Initiatives
EastGroup Properties is focused on several strategic initiatives to enhance its operational effectiveness:
- Expansion into high-demand markets with a focus on logistics and distribution.
- Investment in sustainable building practices to reduce the environmental impact of its properties.
- Utilization of technology to improve property management and tenant services.
- Continuous evaluation of its property portfolio to optimize asset performance.
Market Position
As of September 30, 2024, EastGroup Properties reported:
- Occupancy rate of 96.5% for its operating portfolio.
- Percentage of leased square footage at 96.9%.
- Average rental rate increases on new and renewal leases at 55.9% for the nine months ended September 30, 2024.
Acquisitions and Development
In the first nine months of 2024, EastGroup Properties has made significant investments:
- Acquired 34.3 acres of land in Atlanta for $3,302,000.
- Commenced five new development projects totaling 783,000 square feet.
- Transferred six development projects totaling 1,162,000 square feet to real estate properties with costs at the date of transfer amounting to $157,567,000.
Dividend Policy
EastGroup Properties has a consistent dividend policy, declaring dividends of:
- $1.40 per share in August 2024.
- Total dividends declared for the nine months ended September 30, 2024, reached $191,912,000.
Conclusion
EastGroup Properties remains committed to its mission of enhancing shareholder value while focusing on sustainability, operational excellence, and strategic growth in the industrial real estate sector.
How EastGroup Properties, Inc. (EGP) Works
Overview of EastGroup Properties, Inc.
EastGroup Properties, Inc. (EGP) is a real estate investment trust (REIT) that focuses on the acquisition, development, and operation of industrial properties, primarily in major metropolitan areas across the United States. As of September 30, 2024, the company had total assets of $4,754,065,000, with total liabilities amounting to $1,921,374,000 and total equity of $2,832,691,000.
Financial Performance
For the three months ended September 30, 2024, EGP reported a net income attributable to common stockholders of $55,180,000 (or $1.13 per basic and diluted share), compared to $48,896,000 (or $1.07 per basic and diluted share) for the same period in 2023. For the nine months ended September 30, 2024, the net income was $169,111,000 (or $3.50 per basic and $3.49 per diluted share), up from $137,036,000 (or $3.07 per basic and $3.06 per diluted share) in 2023.
Property Net Operating Income (PNOI)
EastGroup's Property Net Operating Income (PNOI) increased by $15,029,000 (or 14.5%) for the three months ended September 30, 2024, compared to the same period in 2023. The increase in PNOI was attributed to:
- $6,917,000 from same property operations
- $4,897,000 from newly developed and value-add properties
- $3,978,000 from 2023 and 2024 acquisitions
For the nine months ended September 30, 2024, PNOI rose by $40,759,000 (or 13.4%).
Leasing and Occupancy Rates
As of September 30, 2024, EastGroup's operating portfolio was 96.9% leased and 96.5% occupied, compared to 98.5% leased and 97.7% occupied as of September 30, 2023.
Development and Value-Add Properties
EastGroup has a robust development and value-add program consisting of 17 projects totaling 3,698,000 square feet across 12 markets. The projected total investment for these projects is $527,700,000, of which $135,309,000 remained to be invested as of September 30, 2024.
| Project Status | Building Size (Square Feet) | Cumulative Costs Incurred (In Thousands) | Projected Total Costs (In Thousands) |
|---|---|---|---|
| Lease-up | 1,993,000 | $252,027 | $270,300 |
| Under construction | 1,705,000 | $140,364 | $257,400 |
| Total | 3,698,000 | $392,391 | $527,700 |
Acquisitions and Sales
During the nine months ended September 30, 2024, EastGroup acquired operating properties in Austin, Las Vegas, and Raleigh, totaling 684,000 square feet for $143,585,000. Additionally, the company sold properties generating gross sales proceeds of $18,050,000.
Debt and Liquidity
As of September 30, 2024, EastGroup had total immediate liquidity of approximately $943,608,000, comprised of $16,957,000 in cash and cash equivalents, $672,345,000 available on unsecured credit facilities, and approximately $254,306,000 of gross proceeds from outstanding forward equity sale agreements.
Dividends
EastGroup declared dividends of $184,030,000 during the nine months ended September 30, 2024.
Interest Expense
Interest expense decreased by $1,417,000 (or $0.03 per diluted share) and $7,124,000 (or $0.15 per diluted share) during the three and nine months ended September 30, 2024, respectively.
Scheduled Principal Payments on Long-term Debt
| Maturity Dates | Weighted Average Interest Rate (%) | Principal Payments Maturing (In Thousands) |
|---|---|---|
| December 13, 2024 | 3.46 | $60,000 |
| December 15, 2024 | 3.48 | $60,000 |
| Year 2025 | 3.13 | $145,000 |
| Year 2026 | 2.56 | $140,000 |
| Year 2027 | 2.74 | $175,000 |
| Year 2028 | 3.10 | $160,000 |
| Year 2029 and beyond | 3.66 | $890,000 |
| Total Unsecured Debt | 3.35 | $1,630,000 |
Conclusion on Financial Trends
The increase in net income, PNOI, and robust development activities reflect EastGroup's strategic growth in the industrial real estate sector, positioning the company for continued performance improvement in the future.
How EastGroup Properties, Inc. (EGP) Makes Money
Revenue Sources
EastGroup Properties, Inc. primarily generates revenue through rental income from its portfolio of industrial properties. For the nine months ended September 30, 2024, EastGroup reported income from real estate operations totaling $474,268,000, up from $417,153,000 in the same period in 2023. This income includes rental income, net of reserves for uncollectible rent, and other real estate-related income such as expense reimbursements and lease termination fees.
| Period | Income from Real Estate Operations (in thousands) |
|---|---|
| Q3 2024 | $162,861 |
| Q3 2023 | $144,378 |
| 9M 2024 | $474,268 |
| 9M 2023 | $417,153 |
Net Income and Funds from Operations (FFO)
For the three months ended September 30, 2024, net income attributable to common stockholders was $55,180,000 ($1.13 per share), compared to $48,896,000 ($1.07 per share) for the same period in 2023. For the nine months ended September 30, 2024, net income was $169,111,000 ($3.50 per share), compared to $137,036,000 ($3.07 per share) in 2023.
Funds from operations (FFO) for the three months ended September 30, 2024, was $104,127,000 ($2.13 per share), up from $91,446,000 ($2.00 per share) in Q3 2023. For the nine-month period, FFO increased to $299,977,000 ($6.19 per share) from $257,700,000 ($5.75 per share) in 2023.
| Period | Net Income (in thousands) | FFO (in thousands) |
|---|---|---|
| Q3 2024 | $55,180 | $104,127 |
| Q3 2023 | $48,896 | $91,446 |
| 9M 2024 | $169,111 | $299,977 |
| 9M 2023 | $137,036 | $257,700 |
Property Net Operating Income (PNOI)
Property Net Operating Income (PNOI) reflects the operational performance of EastGroup's properties. For the three months ended September 30, 2024, PNOI was $118,990,000, representing an increase of 14.5% from $103,961,000 in Q3 2023. For the nine months ended September 30, 2024, PNOI was $344,128,000, up 13.4% from $303,369,000 in the previous year.
| Period | PNOI (in thousands) |
|---|---|
| Q3 2024 | $118,990 |
| Q3 2023 | $103,961 |
| 9M 2024 | $344,128 |
| 9M 2023 | $303,369 |
Leasing Activity
During the nine months ended September 30, 2024, EastGroup executed new and renewal leases on 6,617,000 square feet, representing 11.6% of the total operating portfolio. Average rental rates for these leases increased by 55.9% compared to the former leases on the same spaces.
The company’s operating portfolio was 96.9% leased and 96.5% occupied as of September 30, 2024, down from 98.5% and 97.7% respectively in the same period in 2023.
Acquisitions and Development
EastGroup has been active in expanding its portfolio through acquisitions and development. In the nine months ended September 30, 2024, the company acquired operating properties in Austin, Las Vegas, and Raleigh, totaling 684,000 square feet for $143,585,000. The company also invested $181,353,000 in development and value-add properties during this period.
As of September 30, 2024, EastGroup's total investment in development and value-add properties was $654,092,000, which included projects in lease-up and under construction totaling 3,698,000 square feet.
| Activity | Details |
|---|---|
| Acquisitions | 684,000 square feet for $143,585,000 |
| Development Investment | $181,353,000 |
| Total Development & Value-Add Properties | $654,092,000 |
| Projects in Lease-Up and Under Construction | 3,698,000 square feet |
Sales of Real Estate Investments
EastGroup recognized gains on sales of real estate investments amounting to $8,751,000 for the nine months ended September 30, 2024, compared to $4,809,000 for the same period in 2023. The company sold properties in the Jackson, Mississippi market, generating gross sales proceeds of $18,050,000.
Debt Management
As of September 30, 2024, EastGroup had total immediate liquidity of approximately $943,608,000, which includes $16,957,000 in cash and cash equivalents and $672,345,000 available on unsecured credit facilities. The company repaid a $50,000,000 senior unsecured term loan in August 2024 and has a total unsecured debt of $1,630,000,000.
| Debt Type | Amount (in thousands) | Interest Rate |
|---|---|---|
| Unsecured Debt | $1,630,000 | 3.35% |
| Senior Unsecured Term Loan | $50,000 | 4.08% |
| Available Credit Facilities | $672,345 | N/A |
| Cash and Cash Equivalents | $16,957 | N/A |
EastGroup Properties, Inc. (EGP) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- EastGroup Properties, Inc. (EGP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of EastGroup Properties, Inc. (EGP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View EastGroup Properties, Inc. (EGP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.