East Properties(EGP) - 2024 Q3 - Quarterly Report

Stock Transactions and Equity Sales - EastGroup sold 458,679 shares of common stock at a weighted average price of $174.43 per share, generating net proceeds of$79,210,000[105] - The company entered into forward equity sale agreements for 1,986,336 shares of common stock with an initial weighted average forward price of $179.46 per share[106] - Under the Current 2023 ATM Program, the company sold 458,679 shares of common stock at a weighted average price of$174.43 per share, generating $79,210,000 in net proceeds[171] - The company entered into forward equity sale agreements for 1,986,336 shares of common stock at an initial weighted average forward price of$179.46 per share[172] - The company settled outstanding forward equity sale agreements by issuing 993,214 shares of common stock, generating net proceeds of approximately $175,146,000[173] - The company has$3,847,000 of common stock remaining available for sale under the Current 2023 ATM Program[174] Leasing and Rental Performance - EastGroup executed new and renewal leases on 6,617,000 square feet, representing 11.6% of the operating portfolio's total square footage of 56,840,000[107] - Average rental rates for new and renewal leases increased by 55.9% compared to former leases on the same spaces[107] - EastGroup's operating portfolio was 96.9% leased and 96.5% occupied as of September 30, 2024[109] - Rental rate increases on new and renewal leases averaged 50.9% for the three months ended September 30, 2024, covering 4.1% of the operating portfolio's total square footage[128] - The company's operating portfolio had a leased square footage percentage of 96.9% and an occupancy rate of 96.5% as of September 30, 2024[150] - EastGroup entered into 99 leases with rent concessions on 3.944 million square feet, totaling $8.919 million in concessions during the nine months ended September 30, 2024[150] Financial Performance and Net Income - Net Income Attributable to EastGroup Properties, Inc. Common Stockholders increased by 14.1$3.49 per diluted share for the nine months ended September 30, 2024[108] - Net income for the three months ended September 30, 2024, was $55.194 million, compared to$48.910 million for the same period in 2023, representing a 12.8% increase[119] - Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $169.111 million for the nine months ended September 30, 2024, compared to$137.036 million for the same period in 2023[145] Property Net Operating Income (PNOI) - Property Net Operating Income (PNOI) Excluding Income from Lease Terminations increased by 5.2% for the nine months ended September 30, 2024[108] - Property Net Operating Income (PNOI) for the three months ended September 30, 2024, increased by $15.029 million (14.5$40.759 million (13.4%) for the nine months ended September 30, 2024, compared to the same period in 2023[146] Property Acquisitions and Development - The company acquired 34.3 acres of development land in Atlanta for $3,302,000 and began construction of five development projects totaling 783,000 square feet[110] - EastGroup acquired operating properties in Austin, Las Vegas, and Raleigh containing 684,000 square feet for$143,585,000[111] - EastGroup acquired operating properties totaling 684,000 square feet in 2024, with a total cost of $143.585 million[133] - The company made capital improvements of$47.183 million on existing properties and incurred $3.009 million in development costs during the nine months ended September 30, 2024[135] - EastGroup acquired 34.3 acres of development land in Atlanta for$3.302 million during the nine months ended September 30, 2024[137] - The company's total investment in Development and Value-Add properties was $654.092 million as of September 30, 2024, compared to$639.647 million at the end of 2023[136] Property Sales and Dispositions - The company sold a group of operating properties in Jackson, Mississippi, and land in San Francisco, generating gross sales proceeds of $18,050,000[111] - EastGroup sold operating properties in Jackson, Mississippi, generating$14.05 million in gross sales proceeds and recognized $8.751 million in gains[135] - The company sold 3.9 acres of land in San Francisco, generating$4 million in gross sales proceeds and recognizing $222,000 in gains[138] Funds from Operations (FFO) and Dividends - Funds from Operations (FFO) per diluted share for the three months ended September 30, 2024, was$2.13, a 6.5% increase compared to $2.00 for the same period in 2023[123] - The company declared a dividend of$70,275,000 in August 2024, which was paid in October 2024, including $1,511,000 for unvested restricted stock[164] - Net cash provided by operating activities was$362,693,000 for the nine months ended September 30, 2024, with $184,030,000 distributed in common stock dividends during the same period[163] Interest Expense and Debt Management - Variable rate interest expense decreased by$109,000 (16.4%) for the three months and $2,130,000 (56.6$652,000 (4.4%) for the three months and $2,061,000 (4.6$656,000 (15.4%) for the three months and $2,933,000 (24.7$50,000,000 senior unsecured term loan at maturity in August 2024 with an effectively fixed interest rate of 4.08%[162] - The company refinanced a $100,000,000 senior unsecured term loan in September 2023, reducing the effectively fixed interest rate by approximately 45 basis points[154] - Average borrowings on unsecured bank credit facilities decreased by$7,901,000 (78.4%) for the three months and $52,176,000 (96.1$1,630,000, with maturities ranging from 2024 to 2029 and beyond, and a weighted average interest rate of 3.35%[164] - The company extended the maturity dates of its $625,000,000 and$50,000,000 unsecured bank credit facilities from July 30, 2025, to July 31, 2028[165] - The $625,000,000 unsecured bank credit facility has an interest rate of SOFR plus 76.5 basis points, with an annual facility fee of 15 basis points, and no variable rate borrowings as of September 30, 2024[166] - The$50,000,000 unsecured bank credit facility has an interest rate of SOFR plus 77.5 basis points, with an annual facility fee of 15 basis points, and no outstanding balance as of September 30, 2024[167] - The company achieved sustainability performance targets for 2022 and 2023, resulting in a one basis point reduction in the interest margin on the $625,000,000 facility[168] Capital Expenditures and Liquidity - Total real estate improvements increased to$17,549,000 (24.2%) for the three months and $47,183,000 (9.6$8,238,000 (10.8%) for the three months and $25,728,000 (7.9$943,608,000 as of September 30, 2024, including $16,957,000 in cash and cash equivalents,$672,345,000 in availability on unsecured credit facilities, and $254,306,000 in gross proceeds from forward equity sale agreements[163] Occupancy and Rental Rates - Same property average occupancy was 96.7$8.28 per square foot for the three months ended September 30, 2024, compared to $7.79 per square foot for the same period in 2023[127] - Lease termination fee income for the three months ended September 30, 2024, was$1.745 million, compared to $221,000 for the same period in 2023[128] Total Assets and Real Estate Investments - Total assets increased by$234.852 million to $4.754 billion at September 30, 2024, compared to December 31, 2023[130] - Real estate properties increased by$330.509 million during the nine months ended September 30, 2024, primarily due to property transfers, acquisitions, and capital improvements[131]