EastGroup Properties (EGP) 2019 Earnings Call Presentation

Company Profile & Strategy - EastGroup Properties focuses on multi-tenant urban distribution properties in major Sunbelt markets[8, 12] - The company employs a three-pronged growth strategy: targeted development/redevelopment, recycling of capital, and internal growth[8, 24] - The company targets location-sensitive customers, competing on location rather than rent, primarily serving users requiring 15,000 to 50,000 square feet[20] Property Portfolio - As of December 31, 2018, the company owned 42 million square feet of industrial space[16] - Business distribution properties account for 88% of the portfolio, with bulk distribution at 9% and business service at 3%[23] - Development History: Since 1996, the company has developed 199 properties comprising 192 million square feet, representing a $15 billion investment, which accounts for 46% of the portfolio[35] Financial Performance & Capitalization - For the year ended December 31, 2018, same-property net operating income increased by 38%[44] - FFO per share increased by 96% for the year ended December 31, 2018[44] - As of December 31, 2018, shareholders' market equity was $335 billion, representing 75% of the capitalization, with variable-rate debt at $196 million (4%) and fixed-rate debt at $914 million (21%), with an average rate of 37%[46] Dividend & Returns - The company has declared 156 consecutive quarterly cash dividends, currently at $072 per share[47] - The company has increased or maintained its dividend for 26 consecutive years, increasing it in 23 of the past 26 years[47] - The dividend FFO payout ratio for 2018 was 65%[49]