EastGroup Properties Announces Second Quarter 2020 Results
EastGroup Properties reported a net income of $0.60 per share for Q2 2020, down from $0.73 in Q2 2019, which included real estate sales gains. However, Funds from Operations (FFO) rose 9% to $1.33 per share. The same property net operating income increased 2.5% on a straight-line basis, and rental rates on new leases jumped 13.8%. The company declared a cash dividend of $0.75 per share, marking its 162nd consecutive distribution. Despite challenges from COVID-19, occupancy remains strong at 97.0%. EastGroup projects full-year EPS between $2.23 and $2.33, with estimated FFO of $5.23 to $5.33.
- Funds from Operations (FFO) rose 9% to $1.33 per share.
- Same property net operating income increased 2.5% on a straight-line basis.
- Rental rates on new leases increased an average of 13.8%.
- Declared a cash dividend of $0.75 per share, marking the 162nd consecutive quarterly payment.
- Net income per share decreased from $0.73 in Q2 2019 to $0.60 in Q2 2020.
- No sales of real estate investments occurred in Q2 2020, unlike the $9.1 million gain in Q2 2019.
- Anticipated decline in occupancy for the remainder of 2020.
JACKSON, Miss., July 28, 2020 /PRNewswire/ --
Second Quarter 2020 Results
- Net Income Attributable to Common Stockholders of
$0.60 Per Share for Second Quarter 2020 Compared to$0.73 Per Share for Second Quarter 2019 (Second Quarter 2019 Included Gains on Sales of Real Estate Investments of$9.1 Million , or$0.25 Per Share; There Were No Sales in Second Quarter 2020) - Funds from Operations of
$1.33 Per Share for Second Quarter 2020 Compared to$1.22 Per Share for Second Quarter 2019, an Increase of9.0% - Same Property Net Operating Income for the Same Property Pool Excluding Income From Lease Terminations for Second Quarter 2020 Increased
2.5% on a Straight-Line Basis and4.1% on a Cash Basis Compared to Second Quarter 2019 97.5% Leased and 97.0% Occupied as of June 30, 2020; Average Occupancy of96.6% for the Second Quarter- Rental Rates on New and Renewal Leases Increased an Average of
13.8% on a Straight-Line Basis - Transferred Five Development Projects (767,000 Square Feet) to the Real Estate Portfolio
- Development and Value-Add Program Consisted of 20 Projects (3.1 Million Square Feet) at June 30, 2020 with a Projected Total Investment of
$334 Million - Declared 162nd Consecutive Quarterly Cash Dividend:
$0.75 Per Share - Issued 243,621 Shares of Common Stock Pursuant to the Company's Continuous Common Equity Offering Program at an Average Price of
$123.14 Per Share for Aggregate Net Proceeds of$29.6 Million - Remaining Available Capacity of
$328 Million on the$395 Million Revolving Lines of Credit as of June 30, 2020 - Agreed to Terms on a Private Placement of Senior Unsecured Notes Totaling
$175 Million With a Weighted Average Fixed Interest Rate of2.65% $105 Million of Debt Maturities Remaining During the Year 2020 With a Weighted Average Fixed Interest Rate of3.55% and$45 Million in Planned Early Debt Repayments During the Remainder of 2020 With a Fixed Interest Rate of4.39%
EastGroup Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or "EastGroup") announced today the results of its operations for the three and six months ended June 30, 2020.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "Our team and our portfolio's performance during second quarter surpassed expectations. It was a solid quarter for 'normal economic' times and a great quarter during the economic shutdown. It's difficult to know when the markets will return to a sense of normalcy, but to date our portfolio is weathering the crisis well. And on the other side of the pandemic, we believe our last mile, shallow bay portfolio will be well-positioned to benefit from the anticipated shift towards carrying more inventory, incremental manufacturing growth in the U.S. or near-shoring in Mexico, faster population growth in the Sunbelt markets and a change in shopping patterns leading to increased e-commerce demand."
EARNINGS PER SHARE
Three Months Ended June 30, 2020
On a diluted per share basis, earnings per common share ("EPS") were
Six Months Ended June 30, 2020
Diluted EPS for the six months ended June 30, 2020, was
FUNDS FROM OPERATIONS AND PROPERTY NET OPERATING INCOME
Three Months Ended June 30, 2020
For the three months ended June 30, 2020, funds from operations attributable to common stockholders ("FFO") were
PNOI increased by
The same property pool PNOI Excluding Income from Lease Terminations increased
On a straight-line basis, rental rates on new and renewal leases (
Six Months Ended June 30, 2020
FFO for the six months ended June 30, 2020 was
PNOI increased by
The same property pool PNOI Excluding Income from Lease Terminations increased
On a straight-line basis, rental rates on new and renewal leases (
The same property pool for the three and six months ended June 30, 2020 includes properties which were included in the operating portfolio for the entire period from January 1, 2019 through June 30, 2020; this pool is comprised of properties containing 38,737,000 square feet.
FFO, FFO Excluding Gain on Casualties and Involuntary Conversion, PNOI and Same PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Same PNOI, and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO and FFO Excluding Gain on Casualties and Involuntary Conversion are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
IMPACT OF THE COVID-19 PANDEMIC
On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. Global, national and local economies continue to be impacted by the pandemic and the mitigation efforts to combat the spread of COVID-19.
During the three months ended March 31, 2020, COVID-19 did not have a material adverse impact on the Company's revenues as monthly rent payments generally were due by early March, prior to the beginning of the more significant economic impacts in the United States.
During the three months ended June 30, 2020, the United States experienced significant health, social and economic impacts from COVID-19. EastGroup's operations, occupancy and rent collections remained stable during this period. As of July 27, 2020, the Company has received rent relief requests, primarily in the form of payment deferral requests, from approximately
As of July 27, 2020, the Company's rent collection and rent payment deferral status was as follows:
Month in Year 2020 (1) | % of Rent Collected | % of Rent Deferred to | % of Rent Uncollected With No | |||
March | —% | |||||
April | ||||||
May | ||||||
June | ||||||
July (2) | ||||||
(1) Customer payments are received daily. The collection information presented is current through July 27, 2020, and the Company anticipates continuing to receive rental payments which will increase the % of Rent Collected. | ||||||
(2) To date, rental payments received for July rent charges are slightly higher than the June rental payments that had been received as of the same time of the applicable month, June 27, 2020. | ||||||
As of June 30, 2020, Houston, EastGroup's largest market, represented approximately
We believe EastGroup's financial condition and balance sheet remain strong. As of June 30, 2020, the outstanding balance on the Company's
As of July 27, 2020, the Company's lease expirations for the remainder of 2020 represent
The Company has been continuing construction on already-active development and value-add projects. During the second quarter, EastGroup did not begin construction on any new development projects. During the third quarter, the Company does not anticipate starting construction on any new speculative development projects. Management will continue to monitor the economic conditions of the Company's markets to determine whether to begin construction on future development projects.
The future impacts of COVID-19 on the Company are largely dependent on the severity and duration of the economic uncertainty and its effect on EastGroup's customers and cannot be predicted with certainty at this time.
DEVELOPMENT AND VALUE-ADD PROPERTIES
During the second quarter of 2020, EastGroup did not begin construction of any new development projects. The development projects started during the first quarter of 2020 are detailed in the table below:
Development Projects Started in 2020 | Location | Size | Anticipated Conversion | Projected Total | ||||||||
(Square feet) | (In thousands) | |||||||||||
Gateway 4 | Miami, FL | 197,000 | 06/2021 | $ | 23,800 | |||||||
SunCoast 7 | Ft. Myers, FL | 77,000 | 10/2021 | 8,400 | ||||||||
Total Development Projects Started | 274,000 | $ | 32,200 | |||||||||
At June 30, 2020, EastGroup's development and value-add program consisted of 20 projects (3,097,000 square feet) in 12 cities. The projects, which were collectively
During the second quarter of 2020, EastGroup transferred (at the earlier of
The development and value-add properties transferred to the real estate portfolio during the first six months of 2020 are detailed in the table below.
Development and Value-Add Properties | Location | Size | Conversion Date | Cumulative Cost as | Percent Leased | ||||||||
(Square feet) | (In thousands) | ||||||||||||
Logistics Center 6 & 7 (1) | Dallas, TX | 142,000 | 01/2020 | $ | 15,777 | ||||||||
Settlers Crossing 1 | Austin, TX | 77,000 | 01/2020 | 9,411 | |||||||||
Settlers Crossing 2 | Austin, TX | 83,000 | 01/2020 | 8,795 | |||||||||
Parc North 5 | Dallas, TX | 100,000 | 02/2020 | 9,109 | |||||||||
Airport Commerce Center 3 | Charlotte, NC | 96,000 | 03/2020 | 8,893 | |||||||||
Horizon VIII & IX | Orlando, FL | 216,000 | 04/2020 | 18,199 | |||||||||
Ten West Crossing 8 | Houston, TX | 132,000 | 04/2020 | 9,831 | |||||||||
Tri-County Crossing 1 & 2 | San Antonio, TX | 203,000 | 04/2020 | 15,583 | |||||||||
SunCoast 8 | Ft. Myers, FL | 77,000 | 05/2020 | 8,272 | |||||||||
CreekView 121 5 & 6 | Dallas, TX | 139,000 | 06/2020 | 15,562 | |||||||||
Total Projects Transferred | 1,265,000 | $ | 119,432 | ||||||||||
(1) This value-add project was acquired by EastGroup. | |||||||||||||
DIVIDENDS
EastGroup declared a cash dividend of
FINANCIAL STRENGTH AND FLEXIBILITY
EastGroup continues to maintain a strong and flexible balance sheet. Debt-to-total market capitalization was
During the second quarter, EastGroup issued and sold 243,621 shares of common stock under its continuous common equity offering program at an average price of
In July 2020, the Company and a group of lenders agreed to terms on the private placement of
OUTLOOK FOR 2020
EPS for 2020 is now estimated to be in the range of
EastGroup's projections are based on management's current beliefs and assumptions about our business, 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. The COVID-19 pandemic has disrupted global, national and local economies and the financial markets; it is difficult to predict the future impact on our business, financial condition, results of operations and cash flows. Please refer to the "Forward-Looking Statements" disclosures included in this earnings release and "Risk Factors" disclosed in our annual and quarterly reports filed with the Securities and Exchange Commission for more information.
Low Range | High Range | ||||||||||||
Q3 2020 | Y/E 2020 | Q3 2020 | Y/E 2020 | ||||||||||
(In thousands, except per share data) | |||||||||||||
Net income attributable to common stockholders | $ | 21,106 | 87,634 | 22,682 | 91,562 | ||||||||
Depreciation and amortization | 29,907 | 117,644 | 29,907 | 117,644 | |||||||||
Funds from operations attributable to common stockholders | $ | 51,013 | 205,278 | 52,589 | 209,206 | ||||||||
Diluted shares | 39,392 | 39,277 | 39,392 | 39,277 | |||||||||
Per share data (diluted): | |||||||||||||
Net income attributable to common stockholders | $ | 0.54 | 2.23 | 0.58 | 2.33 | ||||||||
Funds from operations attributable to common stockholders | 1.30 | 5.23 | 1.34 | 5.33 | |||||||||
The following assumptions were used for the mid-point:
Metrics | Revised Guidance for | April Earnings | Actual for Year 2019 | |||
FFO per share | ||||||
FFO per share increase over prior year period | ||||||
Same PNOI growth: cash basis (1)(2) | . | |||||
Average month-end occupancy | ||||||
Lease termination fee income | ||||||
Reserves for uncollectible rent (No identified bad debts for July-December) | ||||||
Development starts: | ||||||
Square feet | 1.0 million | 1.1 million | 2.7 million | |||
Projected total investment | ||||||
Value-add property acquisitions (projected total investment) | none | |||||
Operating property acquisitions | ||||||
Operating property dispositions | none | |||||
Unsecured debt closing in period | average interest rate | average interest rate | ||||
Common stock issuances | ||||||
General and administrative expense | ||||||
(1) Includes properties which have been in the operating portfolio since 1/1/19 and are projected to be in the operating portfolio through 12/31/20; includes 38,658,000 square feet. | ||||||
(2) Excludes straight-line rent adjustments, amortization of market rent intangibles for acquired leases and income from lease terminations. Includes deferred rent charges for executed deferral agreements that qualify for the modified COVID-19-related guidance provided by the FASB. Revised Guidance for Year 2020 includes a projected | ||||||
(3) Average occupancy for the six months ended June 30, 2020 was | ||||||
DEFINITIONS
The Company's chief decision makers use two primary measures of operating results in making decisions: (1) funds from operations attributable to common stockholders ("FFO") and (2) property net operating income ("PNOI"), defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company's share of income and property operating expenses from its less-than-wholly-owned real estate investments.
FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("Nareit"). In December 2018, Nareit issued the "Nareit Funds from Operations White Paper - 2018 Restatement" (the "2018 White Paper"), which reaffirmed, and in some cases refined, Nareit's prior determinations concerning FFO. The guidance in the 2018 White Paper allows preparers an option as it pertains to whether gains or losses on sale, or impairment charges, on real estate assets incidental to a REIT's business are excluded from the calculation of FFO. EastGroup has made the election to exclude activity related to such assets that are incidental to our business. The Company has adjusted its 2018 and prior results, as necessary, to reflect this guidance. FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains and losses from sales of real estate property (including other assets incidental to the Company's business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
FFO Excluding Gain on Casualties and Involuntary Conversion is calculated as FFO (as defined above), adjusted to exclude gain on casualties and involuntary conversion. The Company believes that the exclusion of gain on casualties and involuntary conversion presents a more meaningful comparison of operating performance.
EastGroup sometimes refers to PNOI from Same Properties as "Same PNOI" in this press release and the accompanying reconciliation; the Company also presents Same PNOI Excluding Income from Lease Terminations. The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company's investments in real estate assets and its operating results on a same property basis. The Company believes it is useful to evaluate Same PNOI Excluding Income from Lease Terminations on both a straight-line and cash basis. The straight-line basis is calculated by averaging the customers' rent payments over the lives of the leases; GAAP requires the recognition of rental income on the straight-line basis. The cash basis excludes adjustments for straight-line rent and amortization of market rent intangibles for acquired leases; the cash basis is an indicator of the rents charged to customers by the Company during the periods presented and is useful in analyzing the embedded rent growth in the Company's portfolio. Same Properties is defined as operating properties owned during the entire current period and prior year reporting period. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded.
FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company's investments in real estate assets and its operating results. The Company believes that the exclusion of depreciation and amortization in the industry's calculations of PNOI and FFO provides supplemental indicators of the properties' performance since real estate values have historically risen or fallen with market conditions. PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other real estate investment trusts ("REITs"). Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company's financial performance.
The Company's chief decision makers also use Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre") in making decisions. EBITDAre is defined as Net Income, adjusted for gains and losses from sales of real estate investments, non-operating real estate and other assets incidental to the Company's business, interest expense, income tax expense, depreciation and amortization. EBITDAre is a non-GAAP financial measure used to measure the Company's operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis.
EastGroup's chief decision makers also use its Debt-to-EBITDAre ratio, a non-GAAP financial measure calculated by dividing the Company's debt by its EBITDAre, in analyzing the financial condition and operating performance of the Company relative to its leverage.
The Company's interest and fixed charge coverage ratios are non-GAAP financial measures calculated by dividing the Company's EBITDAre by its interest expense. These ratios provide a basis for analysis of the Company's leverage, operating performance, and its ability to service the interest payments due on its debt.
CONFERENCE CALL
EastGroup will host a conference call and webcast to discuss the results of its second quarter and review the Company's current operations on Wednesday, July 29, 2020, at 11:00 a.m. Eastern Time. A live broadcast of the conference call is available by dialing 1-866-831-8713 (conference ID: EastGroup) or by webcast through a link on the Company's website at www.eastgroup.net. If you are unable to listen to the live conference call, a telephone and webcast replay will be available until Wednesday, August 5, 2020. The telephone replay can be accessed by dialing 1-888-277-5136, and the webcast replay can be accessed through a link on the Company's website at www.eastgroup.net.
SUPPLEMENTAL INFORMATION
Supplemental financial information is available under Quarterly Results in the Investor Relations section of the Company's website at www.eastgroup.net or upon request by calling the Company at 601-354-3555.
COMPANY INFORMATION
EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.7 million square feet. EastGroup Properties, Inc. press releases are available on the Company's website at www.eastgroup.net.
FORWARD-LOOKING STATEMENTS
The statements and certain other information contained in this press release, 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 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 duration of any "shelter-in-place" or "stay-at-home" orders or other formal recommendations for social distancing which may have affected our operations or the operations of our tenants, and the speed and extent to which revenues of our tenants recover following the lifting of any such orders or recommendations;
- 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, debt terms that have been agreed upon but have not yet closed may not close as expected or at all, 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 recent 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, 2019, and in its subsequent Quarterly Reports on Form 10-Q.
The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||
(UNAUDITED) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
REVENUES | |||||||||||||
Income from real estate operations | $ | 89,500 | 81,783 | 178,077 | 160,420 | ||||||||
Other revenue | 215 | 318 | 266 | 479 | |||||||||
89,715 | 82,101 | 178,343 | 160,899 | ||||||||||
EXPENSES | |||||||||||||
Expenses from real estate operations | 25,351 | 22,922 | 51,180 | 45,224 | |||||||||
Depreciation and amortization | 28,570 | 27,291 | 56,462 | 51,037 | |||||||||
General and administrative | 4,025 | 4,506 | 7,306 | 8,350 | |||||||||
Indirect leasing costs | 166 | 103 | 274 | 196 | |||||||||
58,112 | 54,822 | 115,222 | 104,807 | ||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||
Interest expense | (8,346) | (8,846) | (16,803) | (17,692) | |||||||||
Gain on sales of real estate investments | — | 9,081 | — | 11,406 | |||||||||
Other | 230 | (565) | 467 | (323) | |||||||||
NET INCOME | 23,487 | 26,949 | 46,785 | 49,483 | |||||||||
Net income attributable to noncontrolling interest in joint ventures | (3) | 4 | (4) | (1) | |||||||||
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON | 23,484 | 26,953 | 46,781 | 49,482 | |||||||||
Other comprehensive loss - cash flow hedges | (1,824) | (3,754) | (17,614) | (6,067) | |||||||||
TOTAL COMPREHENSIVE INCOME | $ | 21,660 | 23,199 | 29,167 | 43,415 | ||||||||
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP | |||||||||||||
Net income attributable to common stockholders | $ | 0.60 | 0.73 | 1.20 | 1.35 | ||||||||
Weighted average shares outstanding | 39,007 | 36,944 | 38,945 | 36,705 | |||||||||
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO | |||||||||||||
Net income attributable to common stockholders | $ | 0.60 | 0.73 | 1.20 | 1.35 | ||||||||
Weighted average shares outstanding | 39,077 | 37,019 | 39,019 | 36,770 | |||||||||
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES | |||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||
(UNAUDITED) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | $ | 23,484 | 26,953 | 46,781 | 49,482 | ||||||||
Depreciation and amortization | 28,570 | 27,291 | 56,462 | 51,037 | |||||||||
Company's share of depreciation from unconsolidated investment | 34 | 35 | 69 | 70 | |||||||||
Depreciation and amortization from noncontrolling interest | (37) | (46) | (79) | (93) | |||||||||
Gain on sales of real estate investments | — | (9,081) | — | (11,406) | |||||||||
FUNDS FROM OPERATIONS ("FFO") ATTRIBUTABLE TO COMMON STOCKHOLDERS | 52,051 | 45,152 | 103,233 | 89,090 | |||||||||
Gain on casualties and involuntary conversion | (161) | (248) | (161) | (348) | |||||||||
FFO EXCLUDING GAIN ON CASUALTIES AND INVOLUNTARY CONVERSION | $ | 51,890 | 44,904 | 103,072 | 88,742 | ||||||||
NET INCOME | $ | 23,487 | 26,949 | 46,785 | 49,483 | ||||||||
Interest expense (1) | 8,346 | 8,846 | 16,803 | 17,692 | |||||||||
Depreciation and amortization | 28,570 | 27,291 | 56,462 | 51,037 | |||||||||
Company's share of depreciation from unconsolidated investment | 34 | 35 | 69 | 70 | |||||||||
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") | 60,437 | 63,121 | 120,119 | 118,282 | |||||||||
Gain on sales of real estate investments | — | (9,081) | — | (11,406) | |||||||||
EBITDA for Real Estate ("EBITDAre") | $ | 60,437 | 54,040 | 120,119 | 106,876 | ||||||||
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP | |||||||||||||
Net income attributable to common stockholders | $ | 0.60 | 0.73 | 1.20 | 1.35 | ||||||||
FFO attributable to common stockholders | $ | 1.33 | 1.22 | 2.65 | 2.42 | ||||||||
FFO Excluding Gain on Casualties and Involuntary Conversion attributable to common shareholders | $ | 1.33 | 1.21 | 2.64 | 2.41 | ||||||||
Weighted average shares outstanding for EPS and FFO purposes | 39,077 | 37,019 | 39,019 | 36,770 | |||||||||
(1) Net of capitalized interest of | |||||||||||||
EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (Continued) | |||||||||||||
(IN THOUSANDS) | |||||||||||||
(UNAUDITED) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
NET INCOME | $ | 23,487 | 26,949 | 46,785 | 49,483 | ||||||||
Gain on sales of real estate investments | — | (9,081) | — | (11,406) | |||||||||
Net loss on other | — | 808 | — | 808 | |||||||||
Interest income | (21) | (34) | (50) | (67) | |||||||||
Other revenue | (215) | (318) | (266) | (479) | |||||||||
Indirect leasing costs | 166 | 103 | 274 | 196 | |||||||||
Depreciation and amortization | 28,570 | 27,291 | 56,462 | 51,037 | |||||||||
Company's share of depreciation from unconsolidated investment | 34 | 35 | 69 | 70 | |||||||||
Interest expense (1) | 8,346 | 8,846 | 16,803 | 17,692 | |||||||||
General and administrative expense (2) | 4,025 | 4,506 | 7,306 | 8,350 | |||||||||
Noncontrolling interest in PNOI of consolidated joint ventures | (41) | (42) | (84) | (94) | |||||||||
PROPERTY NET OPERATING INCOME ("PNOI") | 64,351 | 59,063 | 127,299 | 115,590 | |||||||||
PNOI from 2019 and 2020 Acquisitions | (2,177) | (410) | (4,214) | (410) | |||||||||
PNOI from 2019 and 2020 Development and Value-Add Properties | (5,582) | (1,755) | (10,227) | (2,035) | |||||||||
PNOI from 2019 Operating Property Dispositions | — | (1,004) | — | (2,192) | |||||||||
Other PNOI | 17 | 79 | 105 | 126 | |||||||||
SAME PNOI (Straight-Line Basis) | 56,609 | 55,973 | 112,963 | 111,079 | |||||||||
Net lease termination fee income from same properties | (25) | (766) | (469) | (906) | |||||||||
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Straight-Line Basis) | 56,584 | 55,207 | 112,494 | 110,173 | |||||||||
Straight-line rent adjustments for same properties | 318 | (492) | 738 | (1,082) | |||||||||
Acquired leases - market rent adjustment amortization for same properties | (150) | (189) | (310) | (381) | |||||||||
SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS (Cash Basis) | $ | 56,752 | 54,526 | 112,922 | 108,710 | ||||||||
(1) Net of capitalized interest of | |||||||||||||
(2) Net of capitalized development costs of | |||||||||||||
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SOURCE EastGroup Properties
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