Table of Contents Conference Call 800-836-8184 | ID – EastGroup July 24, 2024 11:00 a.m. Eastern Time webcast available at EastGroup.net 400 West Parkway Place, Suite 100 Ridgeland, MS 39157 TEL: 601-354-3555 | FAX: 601-352-1441 Page 1 of 24 Financial Information: Development and Value-Add Properties Transferred to Real Estate Properties ..... 12 Real Estate Improvements and Leasing Costs ........................................................ 14 | --- | --- | |--------------------------------------------- ...

Core Viewpoint - EastGroup Properties, Inc. is set to hold its Second Quarter 2025 Earnings Conference Call on July 24, 2025, to discuss its financial results and outlook for the year [1][2]. Company Overview - EastGroup Properties, Inc. is a self-administered equity real estate investment trust (REIT) focused on the development, acquisition, and operation of industrial properties in high-growth markets across the United States, particularly in Texas, Florida, California, Arizona, and North Carolina [4]. - The company aims to maximize shareholder value by providing functional, flexible, and quality business distribution space for location-sensitive customers, primarily in the 20,000 to 100,000 square foot range [4]. - EastGroup's growth strategy is centered on owning premier distribution facilities located near major transportation features in supply-constrained submarkets [4]. - The company's portfolio, including development projects and value-add acquisitions, currently encompasses approximately 63.6 million square feet [4].

Core Insights - Investors are considering Alpine Income (PINE) and EastGroup Properties (EGP) for potential value opportunities in the REIT and Equity Trust - Other sector [1] Valuation Metrics - Alpine Income has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while EastGroup Properties has a Zacks Rank of 3 (Hold) [3] - PINE has a forward P/E ratio of 8.47, significantly lower than EGP's forward P/E of 18.81 [5] - The PEG ratio for PINE is 1.41, while EGP's PEG ratio is 3.70, suggesting PINE is more favorably valued in terms of expected EPS growth [5] - PINE's P/B ratio is 0.8, compared to EGP's P/B of 2.63, indicating PINE is undervalued relative to its book value [6] - Based on these metrics, PINE has a Value grade of B, while EGP has a Value grade of F, highlighting PINE's superior valuation [6] Conclusion - PINE is positioned as the better value option due to its solid earnings outlook and favorable valuation metrics compared to EGP [7]

Core Viewpoint - Many companies pay dividends, but not all are suitable for generating reliable passive income due to volatile cash flows and weaker financial profiles [1] - Some companies, however, have demonstrated the ability to pay stable and growing dividends for over 100 consecutive quarters, indicating potential for future stability [2] Group 1: EastGroup Properties - EastGroup Properties has declared its 182nd consecutive quarterly dividend payment and has maintained or increased its dividend for 32 years, raising it in 29 of those years [4][5] - The company employs a four-pronged growth strategy focused on high-growth markets, including targeted development, acquisitions, capital recycling, and internal growth [7] - EastGroup's dividend yield is over 3%, more than double that of the S&P 500 [5] Group 2: Realty Income - Realty Income has declared its 659th consecutive monthly dividend and has increased its dividend for 110 straight quarters, raising it at least once every year for three decades [8][9] - The REIT focuses on net lease real estate, requiring tenants to cover all operating costs, which supports its financial flexibility and low dividend payout ratio [9] - Realty Income's dividend yield is nearly 6%, supported by one of the best balance sheets in the REIT sector [9] Group 3: Mid-America Apartment Communities - Mid-America Apartment Communities has declared its 126th consecutive quarterly dividend and has never suspended or reduced its dividend in 30 years as a public company [10][12] - The company owns apartments in high-growth markets across the Sun Belt region, benefiting from rising rental income and expansion opportunities [11] - With a strong balance sheet, Mid-America has the financial flexibility to support its nearly 4%-yielding dividend [12] Group 4: Summary of Bankable Dividend Stocks - EastGroup Properties, Realty Income, and Mid-America Apartment Communities have consistently paid dividends at or above prior levels for over 100 quarters, showcasing the durability of their dividends [13] - These REITs are well-positioned to continue providing resilient dividends, making them ideal for investors seeking sustainable income streams [13]

Summary of EastGroup Properties (EGP) 2025 Conference Call Company Overview - EastGroup Properties is identified as an industrial Real Estate Investment Trust (REIT) focusing on last mile delivery logistics, primarily in Sunbelt markets such as California, Texas, Florida, and the Carolinas [4][5][6] - The average building size is 95,000 square feet, with an average tenant size of 35,000 square feet [4][5] Core Business Strategy - The company targets last mile delivery, which is increasingly important as urban areas grow and industrial land becomes scarce [5][6] - EastGroup operates as a developer and is indifferent to whether it buys, builds, or acquires vacant properties based on market conditions [7][8] - The company has experienced record leasing activity, with a 97% occupancy rate, indicating strong demand despite macroeconomic uncertainties [10][12][16] Market Dynamics - The macro environment has shown fluctuations, with a recent slowdown in tenant activity, particularly for larger spaces [14][15] - Supply of industrial properties is at a record low, with construction in markets like Atlanta at its lowest since 2014 [18] - The company has a competitive advantage due to its existing land holdings that are zoned and permitted, allowing for quicker development compared to peers [20] Financial Performance - EastGroup has maintained a strong balance sheet, with a debt to EBITDA ratio trending below three and a fixed charge coverage ratio above 15 [42][43] - The company has seen organic growth in rents, with net effective rent increases of over 50% in the last two years [37][62] - The average Funds From Operations (FFO) multiple is currently below 19, compared to a five-year average of around 25, suggesting potential undervaluation [66][67] Regional Insights - The company has a diversified portfolio, with approximately 5% of its Net Operating Income (NOI) coming from Los Angeles, which has faced challenges with negative absorption rates [49][50][57] - Despite challenges in certain markets, EastGroup remains optimistic about long-term demand, particularly in areas with strong population growth [56][66] Future Outlook - The management expresses confidence in the company's positioning and anticipates a potential inflection point in the market as business confidence returns [66][67] - The company plans to remain patient and strategic in its development and acquisition activities, leveraging its strong balance sheet to capitalize on future opportunities [46][66] Key Takeaways - EastGroup Properties is well-positioned in the industrial REIT sector, focusing on last mile delivery in high-growth markets - The company has a strong financial foundation and is poised to take advantage of market opportunities as they arise - Management remains optimistic about future growth, despite current macroeconomic uncertainties and regional challenges

Group 1 - The article discusses the investment opportunities provided by the "Value in Corporate Events" service, which covers major corporate events such as earnings reports, M&A, and IPOs [1][2] - EastGroup Properties (NYSE: EGP) was previously identified as a fully valued industrial play in the Sunbelt region, benefiting from low leverage and positive business performance remarks [1] Group 2 - The investing group aims to provide members with actionable ideas and opportunities to capitalize on significant corporate events, covering around 10 major events each month [2] - The article emphasizes that past performance does not guarantee future results and that no specific investment recommendations are made [3]

Core Viewpoint - EastGroup Properties, Inc. has declared a quarterly cash dividend of $1.40 per share, marking its 182nd consecutive quarterly distribution and reflecting a strong commitment to returning value to shareholders [1] Group 1: Dividend Information - The quarterly cash dividend of $1.40 per share is payable on July 15, 2025, to shareholders of record on June 30, 2025 [1] - This dividend represents an annualized rate of $5.60 per share [1] - EastGroup has maintained or increased its dividend for 32 consecutive years, with increases in 29 of those years, including each of the last 13 years [1] Group 2: Company Overview - EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on industrial properties in high-growth markets across the United States, particularly in Texas, Florida, California, Arizona, and North Carolina [2] - The company's strategy aims to maximize shareholder value by providing functional, flexible, and quality business distribution space for location-sensitive customers, primarily in the 20,000 to 100,000 square foot range [2] - EastGroup's portfolio currently includes approximately 63.1 million square feet, encompassing development projects and value-add acquisitions in lease-up and under construction [2]

Financial Data and Key Metrics Changes - The meeting confirmed that a quorum was present, allowing for the transaction of business, but specific financial data and key metrics were not disclosed during the meeting [5][6]. Business Line Data and Key Metrics Changes - No specific data or key metrics related to individual business lines were provided during the meeting [5][6]. Market Data and Key Metrics Changes - There was no discussion regarding market data or key metrics changes during the meeting [5][6]. Company Strategy and Development Direction and Industry Competition - The meeting included proposals for the election of directors and the ratification of the independent accounting firm, indicating a focus on governance and oversight, but did not elaborate on specific strategic initiatives or competitive positioning [5][6]. Management's Comments on Operating Environment and Future Outlook - Management did not provide comments on the operating environment or future outlook during the meeting [5][6]. Other Important Information - The results of the meeting will be filed with the SEC within four business days, ensuring transparency and compliance with regulatory requirements [8]. Q&A Session All Questions and Answers Question: Were there any questions regarding the proposals? - No questions were submitted by shareholders regarding the proposals during the meeting [6][7].

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Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q1 2025 were $2.12, up 7.1% from the same quarter last year, marking over a decade of quarterly FFO per share exceeding the prior year's results [9][17] - Quarter-end leasing was at 97.3% with occupancy at 96.5%, while average quarterly occupancy was 95.8%, down 170 basis points from Q1 2024 [9][10] - Cash same-store net operating income (NOI) rose 5.2% for the quarter despite lower occupancy [10] - The company’s debt to total market capitalization was 13.7%, with an unadjusted debt to EBITDA ratio of 3 times and interest coverage of 15 times [20] Business Line Data and Key Metrics Changes - Quarterly releasing spreads were 47% on a GAAP basis and 31% on a cash basis [10] - The top ten tenants accounted for 7.1% of rents, down 70 basis points from a year ago, indicating a more diversified rent roll [10] Market Data and Key Metrics Changes - The leasing market showed improvement, but trade talks created uncertainty, particularly affecting the Los Angeles and Orange County markets [11][36] - Other markets, such as the Carolinas, Atlanta, and Florida, experienced better leasing volumes compared to the western regions [36] Company Strategy and Development Direction - The company is focusing on leasing to maintain occupancy and has raised its threshold for new investments and development starts until there is better economic visibility [12][14] - The company is reforecasting 2025 development starts to $250 million, with expectations for the majority in the second half of the year [14] - The strategy includes capitalizing on limited availability and modern facilities to put upward pressure on rents as demand strengthens [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through periods of uncertainty, emphasizing the importance of financial strength and portfolio quality [23][25] - The company is optimistic about long-term trends such as population migration and evolving logistics chains, which are expected to benefit its portfolio [26] - Management acknowledged the uncertainty in the market due to tariffs and interest rates but remains focused on executing their strategy [23][25] Other Important Information - The company has maintained a healthy tenant collection rate, with bad debt as a percentage of revenue lower than in the previous year [22] - G&A expenses increased due to less overhead capitalization and an increase in equity-based compensation accounting [21] Q&A Session Summary Question: Leasing pace in the second quarter and market pullback - Management noted strong leasing volume in Q1, with some markets showing resilience despite uncertainty, particularly in the eastern regions [30][36] Question: Urgency in leasing and flexibility with tenants - Management emphasized the importance of quick leasing decisions but maintained standards without significantly lowering rents [42][46] Question: Dominguez building redevelopment plans - The building was scheduled for redevelopment due to its aging condition, with expectations for leasing activity to pick up post-improvements [54][62] Question: Development starts and market conditions - Management indicated that uncertainty around tariffs and potential recession led to a cautious approach in development starts, with a focus on market demand [69][75] Question: Leasing spreads in Los Angeles - Management acknowledged that the low leasing spreads in LA were not representative of the overall portfolio, attributing it to negative absorption in that specific market [80][82] Question: Construction costs and tenant space utilization - Construction costs have decreased, but demand remains a concern; tenants are looking to utilize their spaces more efficiently amid economic uncertainty [97][100] Question: Acquisition strategy and market changes - The company has adjusted its acquisition strategy due to changes in capital markets, focusing on higher return thresholds and being cautious with new investments [106][110] Question: Onshoring and manufacturing trends - Management expressed optimism about potential onshoring trends benefiting the company, particularly in Sunbelt markets [117][121]