PR Newswire
JACKSON, Miss., July 25, 2017
JACKSON, Miss., July 25, 2017 /PRNewswire/ --
EastGroup Properties, Inc. (NYSE: EGP) announced today the results of its operations for the three and six months ended June 30, 2017.
Commenting on EastGroup's performance, Marshall Loeb, CEO, stated, "Second quarter results were a confirmation of our long term strategy. Our 6.1% increase in quarterly FFO means that we've now achieved FFO per share growth in 24 of the past 25 quarters, truly a long term trend. Our record leasing volume in the first half of the year, coupled with GAAP re-leasing spreads of 16% year-to-date and 14% for the quarter are also indicative of the market's strength."
EARNINGS PER SHARE
On a diluted per share basis, earnings per common share (EPS) was $1.08 for the three months ended June 30, 2017, compared to $1.35 for the same period of 2016. The Company's property net operating income (PNOI) increased by $3,587,000 ($.11 per share) for the three months ended June 30, 2017, as compared to the same period of 2016. EPS for the second quarter of 2017 included net gains on sales of real estate investments and non-operating real estate of $21,855,000 ($.64 per share) compared to $31,114,000 ($.96 per share) during the second quarter of 2016.
Diluted EPS for the six months ended June 30, 2017, was $1.47 compared to $2.03 for the same period of 2016. PNOI increased by $6,953,000 ($.21 per share) for the six months ended June 30, 2017, as compared to the same period of 2016. EPS for the six months ended June 30, 2017, included net gains on sales of real estate investments and non-operating real estate of $21,815,000 ($.65 per share) compared to $42,456,000 ($1.31 per share) during the same period of 2016.
FUNDS FROM OPERATIONS
For the quarter ended June 30, 2017, funds from operations attributable to common stockholders (FFO) was $1.05 per share compared to $.99 per share for the same quarter of 2016, an increase of 6.1%. PNOI increased by $3,587,000, or 8.1%, during the quarter ended June 30, 2017, compared to the same period of 2016. PNOI increased $2,035,000 from newly developed and redeveloped properties, $1,081,000 from same property operations, and $1,038,000 from 2016 and 2017 acquisitions; PNOI decreased $515,000 from operating properties sold in 2016 and 2017.
Same PNOI increased 2.5% for the quarter ended June 30, 2017, compared to the same quarter in 2016; without straight-line rent adjustments, same PNOI increased 2.4%. Rental rates on new and renewal leases (5.5% of total square footage) increased an average of 13.9% for the quarter.
FFO for the six months ended June 30, 2017, was $2.04 per share compared to $1.90 per share during the same period of 2016, an increase of 7.4%. PNOI increased by $6,953,000, or 7.9%, during the six months ended June 30, 2017, compared to the same period of 2016. PNOI increased $4,657,000 from newly developed and redeveloped properties, $2,178,000 from same property operations, and $1,711,000 from 2016 and 2017 acquisitions; PNOI decreased $1,499,000 from operating properties sold in 2016 and 2017.
Same PNOI increased 2.6% for the six months ended June 30, 2017, compared to the same period in 2016; without straight-line rent adjustments, same PNOI increased 3.7%. Rental rates on new and renewal leases (13.1% of total square footage) increased an average of 15.9% for the six months ended June 30, 2017.
FFO and PNOI are non-GAAP financial measures, which are defined under Definitions later in this release. Reconciliations of Net Income to PNOI and Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO are presented in the attached schedule "Reconciliations of GAAP to Non-GAAP Measures."
ACQUISITIONS AND DISPOSITIONS
In April, EastGroup acquired Broadmoor Commerce Park in Atlanta for $6.4 million. The acquisition includes a 100% leased, 84,000 square foot multi-tenant business distribution building and 5.3 acres of development land upon which the Company plans to develop a distribution building containing approximately 107,000 square feet.
In May, EastGroup acquired Southpark Corporate Center 5-7 in Austin for $10.3 million. The three buildings contain a total of 99,000 square feet and are 100% leased to four customers. The buildings are located adjacent to EastGroup's 100% leased Southpark Corporate Center 3 and 4 buildings in Austin's Southeast/Airport submarket.
Also in May, the Company sold Stemmons Circle, a 99,000 square foot building in Dallas, for $5.1 million. EastGroup recorded a $3.7 million gain on the sale which is not included in FFO.
In June, EastGroup sold Techway Southwest I-IV in Houston for $33 million; the Company recorded an $18.1 million gain on the sale which is not included in FFO.
DEVELOPMENT
In addition to the 5.3 acres of development land in Atlanta discussed above, EastGroup acquired 30.1 acres of land in the Round Rock submarket of Austin for $5.3 million. The Company's plans for future development of the land include a master-planned, multi-phased project, Settlers Crossing, consisting of four business distribution buildings totaling approximately 340,000 square feet.
The Company began construction of four multi-tenant distribution properties during the second quarter of 2017; all four projects are expansions of business parks developed by EastGroup. These development projects, in addition to the projects started in the first quarter, are included in the table below.
Development Properties Started in 2017 | | Location | | Size | | Anticipated | | Projected | |||
| | | | (Square feet) | | | | (In thousands) | |||
| | | | | | | | | |||
Steele Creek VII | | Charlotte, NC | | 120,000 | | | 08/2018 | | $ | 8,600 | |
Horizon XII | | Orlando, FL | | 140,000 | | | 09/2018 | | 11,200 | | |
Oak Creek VII | | Tampa, FL | | 116,000 | | | 09/2018 | | 7,200 | | |
CreekView 121 3 & 4 | | Dallas, TX | | 158,000 | | | 01/2019 | | 14,200 | | |
Eisenhauer Point 5 | | San Antonio, TX | | 98,000 | | | 01/2019 | | 7,500 | | |
Eisenhauer Point 6 | | San Antonio, TX | | 85,000 | | | 01/2019 | | 5,200 | | |
Kyrene 202 III, IV & V | | Phoenix, AZ | | 166,000 | | | 01/2019 | | 13,800 | | |
Total Development Properties Started | | | | 883,000 | | | | | $ | 67,700 | |
At June 30, 2017, EastGroup's development program consisted of 14 projects (1,856,000 square feet). The projects, which were collectively 47% leased as of July 24, 2017, have a projected total cost of $152 million.
During the first six months of 2017, EastGroup transferred (at the earlier of 80% occupied or one year after completion) 10 development properties to the real estate portfolio as detailed in the table below.
Development Properties Transferred to | | Location | | Size | | Conversion | | Cumulative | | Percent | |||
| | | | (Square feet) | | | | (In thousands) | | | |||
| | | | | | | | | | | |||
Alamo Ridge III | | San Antonio, TX | | 135,000 | | | 02/2017 | | $ | 11,008 | | | 100% |
Eisenhauer Point 1 & 2 | | San Antonio, TX | | 201,000 | | | 01/2017 | | 15,968 | | | 92% | |
Madison IV & V | | Tampa, FL | | 145,000 | | | 03/2017 | | 8,732 | | | 82% | |
Parc North 1-4 | | Dallas, TX | | 446,000 Werbung Mehr Nachrichten zur Eastgroup Properties Aktie kostenlos abonnieren
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