East Properties(EGP) - 2021 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements and management's discussion and analysis for the company Item 1. Financial Statements This section presents EastGroup Properties' unaudited consolidated financial statements, covering Balance Sheets, Income, Equity, and Cash Flow, with detailed accounting notes Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time Consolidated Balance Sheet Highlights (June 30, 2021 vs. December 31, 2020) | Metric | June 30, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------- | :--------------------------- | :------------------------------- | | ASSETS | | | | Real estate properties | $3,336,219 | $3,159,497 | | Development properties | $320,005 | $359,588 | | Total Assets | $2,855,622 | $2,720,803 | | LIABILITIES | | | | Unsecured debt | $1,282,438 | $1,107,708 | | Secured debt | $36,128 | $78,993 | | Total Liabilities | $1,482,291 | $1,450,285 | | EQUITY | | | | Total Stockholders' Equity | $1,372,441 | $1,269,638 | | Total Equity | $1,373,331 | $1,270,518 | - Total Assets increased by $134.8 million to $2.856 billion at June 30, 2021, from December 31, 2020, driven by increases in real estate properties and cash[10][160] - Total Liabilities increased by $32.0 million to $1.482 billion, primarily due to an increase in unsecured debt, partially offset by decreases in unsecured bank credit facilities and secured debt[10][160] Consolidated Statements of Income and Comprehensive Income This section details the company's financial performance over specific periods, including revenues, expenses, net income, and earnings per share Consolidated Statements of Income and Comprehensive Income Highlights (Three and Six Months Ended June 30, 2021 vs. 2020) | Metric | 3 Months Ended June 30, 2021 (in thousands) | 3 Months Ended June 30, 2020 (in thousands) | 6 Months Ended June 30, 2021 (in thousands) | 6 Months Ended June 30, 2020 (in thousands) | | :---------------------------------------------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Income from real estate operations | $99,562 | $89,500 | $197,479 | $178,077 | | Total Revenues | $99,575 | $89,715 | $197,506 | $178,343 | | Total Expenses | $64,026 | $58,112 | $126,525 | $115,222 | | Net Income | $27,578 | $23,487 | $54,935 | $46,785 | | Net Income Attributable to EastGroup Properties, Inc. Common Stockholders | $27,558 | $23,484 | $54,897 | $46,781 | | Basic EPS | $0.69 | $0.60 | $1.38 | $1.20 | | Diluted EPS | $0.69 | $0.60 | $1.37 | $1.20 | - Net Income Attributable to Common Stockholders increased by 17.3% to $27.6 million for the three months and to $54.9 million for the six months ended June 30, 2021, compared to the same periods in 2020[12][187] - Diluted EPS increased by $0.09 (15%) to $0.69 for the three months ended June 30, 2021, and by $0.17 (14.2%) to $1.37 for the six months ended June 30, 2021, year-over-year[12][187] Consolidated Statements of Changes in Equity This section outlines the changes in the company's equity over a period, reflecting net income, dividends, and stock transactions Changes in Equity (Six Months Ended June 30, 2021) | Metric | Amount (in thousands) | | :----------------------------------------- | :-------------------- | | Balance, December 31, 2020 | $1,270,518 |\n| Net income | $27,578 |\n| Net unrealized change in fair value of interest rate swaps | $(1,263) |\n| Common dividends declared | $(31,981) |\n| Stock-based compensation | $2,893 |\n| Issuance of common stock | $59,318 |\n| Balance, June 30, 2021 | $1,373,331 | - Total Equity increased by $102.8 million to $1.373 billion during the six months ended June 30, 2021, primarily driven by net income and common stock offerings[13][160] - Additional paid-in capital increased by $104.6 million, mainly due to the issuance of common stock through the continuous common equity offering program, which generated net proceeds of $103.8 million[183][232] Consolidated Statements of Cash Flows This section reports the cash generated and used by the company across operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, 2021 vs. 2020) | Activity | Six Months Ended June 30, 2021 (in thousands) | Six Months Ended June 30, 2020 (in thousands) | | :------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash provided by operating activities | $137,675 | $116,682 | | Net cash used in investing activities | $(141,810) | $(146,661) | | Net cash provided by financing activities | $42,679 | $29,859 | | Increase (decrease) in cash | $38,544 | $(120) | | Cash and cash equivalents at end of period | $38,565 | $104 | - Net cash provided by operating activities increased by $21.0 million to $137.7 million for the six months ended June 30, 2021, compared to the same period in 2020[22][215] - Net cash provided by financing activities significantly increased to $42.7 million in 2021 from $29.9 million in 2020, primarily due to proceeds from unsecured debt and common stock offerings, partially offset by debt repayments and distributions[22][215] Notes to Consolidated Financial Statements This section provides detailed explanations and additional information supporting the consolidated financial statements (1) BASIS OF PRESENTATION This note describes the basis of preparation for the unaudited interim financial statements in accordance with U.S. GAAP - The unaudited financial statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions, and should be read with the annual report on Form 10-K for the year ended December 31, 2020[24] (2) PRINCIPLES OF CONSOLIDATION This note outlines the entities included in the consolidated financial statements, such as wholly-owned subsidiaries and controlling joint ventures - The consolidated financial statements include EastGroup, its wholly-owned subsidiaries, and joint ventures where the Company holds a controlling interest (e