February 2020
Forward-Looking Statements The statements and certain other information contained in this presentation, which can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "should," "intends," "plans," "estimates" or "anticipates" and variations of such words or similar expressions or the negative of such words, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company's operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: • changes in general economic conditions; • the extent of customer defaults or of any early lease terminations; the Company's ability to lease or re-lease space at current or anticipated rents; • • the availability of financing; failure to maintain credit ratings with rating agencies; • • changes in the supply of and demand for industrial/warehouse properties; increases in interest rate levels; • • increases in operating costs; natural disasters, terrorism, riots and acts of war, and the Company's ability to obtain adequate insurance; • • changes in governmental regulation, tax rates and similar matters; • attracting and retaining key personnel; other risks associated with the development and acquisition of properties, including risks that development projects may not be • completed on schedule, development or operating costs may be greater than anticipated or acquisitions may not close as scheduled; • and other risks detailed in the sections of the Company's most recent Forms 10-K and 10-Q filed with the SEC titled "Risk Factors." The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 2
Company Profile EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.6 million square feet. 3
Company Highlights • Multi-Tenant Urban Distribution Property Focus • Major Sunbelt Markets • Four-Pronged Growth Strategy • Demonstrated Track Record 4
Industrial Real Estate • Stability • Limited Capital Requirements • Lack of Obsolescence • Flexibility • Location 5
Geographic Focus • Major Sunbelt Growth Markets • Emphasis in Local Economies Growing Faster than the U.S. Economy • Economic Cycle Diversification • Properties Located in 13 of the 15 Fastest Growing Markets* San Francisco Fresno Denver Las Vegas Charlotte LOS ANGELES Greenville San Diego ATLANTA Phoenix JACKSON Tucson DALLAS/FT. WORTH El Paso Jacksonville Austin Houston Properties Orlando Tampa San Antonio New Orleans Corporate Headquarters Ft. Myers Broward/Palm Beach Regional Offices Miami 6 * Source: Cushman & Wakefield Research
Property Net Operating Income by State (Quarter Ended 12/31/19) • Texas 35% • Florida 28% • California 13% • Arizona 8% • North Carolina 7% • Other 9% 7
Property Focus • 45.6 Million Square Feet Under Ownership • Multi-tenant • Infill Sites/Supply Constrained Submarkets • Last Mile E-commerce Locations • Shallow Bay Industrial • Competitive Protection Through Location 8
Construction Pipeline, Small vs. Large Warehouses Note: Underway and planned as of Q2 2019 Source: CBRE Econometric Advisors, CBRE Research, Q2 2019
Customer Focus • Location-Sensitive Customers • Compete on Location Not Rent • Users in the Broadest Portion of the Market – 15,000 to 70,000 square feet • Diversified tenant base – Top 10 customers represent only 7.9% of annualized base rent as of December 31, 2019 • 85% of Tenants lease under 100,000 Square Feet 10
Property Selection • Specifications Keyed to Local Sub-markets • Maximum Customer Flexibility • Clustering of Properties Around Transportation Features in High Growth Areas 11
Types of Industrial Buildings • Business Distribution – 89% Average building size – 84,000 SF Average clear height – 25 Feet • Bulk Distribution – 8% Average building size – 206,000 SF Average clear height – 30 Feet • Business Service – 3% Average building size – 36,000 SF Average clear height – 15 Feet 12
Growth Strategy • Targeted Development • Acquisitions – Operating, Value-Add, Redevelopment • Recycling of Capital • Internal Growth 13
Targeted Development Development in Markets Where EastGroup Already Has a Presence Benefits: • We Build Park Settings • Creates Sense of Place • Properties Designed to EGP Specifications • Increased Returns with Lower Risks • Meet Customer Needs • Creates Long Term Value for our Shareholders 14
Master Planned Development 15
Steele Creek Commerce Park Charlotte, NC 16
Sky Harbor Business Park Phoenix, AZ 17
Southwest Commerce Crossing Orlando, FL Las Vegas, Nevada 18
Horizon Commerce Park Orlando, FL 19
Alamo Ridge Business Park San Antonio, TX 20
Development History (Through 12/31/19) • 47% of Portfolio • 213 Properties – Since 1996 • 20.7 Million Square Feet • $1.7 Billion Investment 21
Value-Add In Markets Where EastGroup Already Has a Presence Benefits: • In-fill locations • Higher return than market value for calculated leasing risk • Creates long term value for Shareholders 22
Value-Add Acquisitions (Through 12/31/19) • $253 Million Invested Since July 2016 • Estimated Current Market Value of $321 Million* • 2.4 Million Square Feet in 7 Markets * Based on estimated average market cap rate of 4.9% 23
Logistics Center 6 & 7 DFW Airport, TX 24
Current Development and Value-Add Program (As of 12/31/19) • 28 Projects Located in 13 Cities • 4,088,000 Square Feet • Projected Total Cost of $420 Million 25
Recycling of Capital • Sales of Assets with Limited Upside Potential • Reinvestment of Capital into Higher-Growth Opportunities 26
Operating Property Acquisitions • 2019 - $113 Million - 884,000 Square Feet in 4 Cities • 2018 - $57 Million - 512,000 Square Feet in 4 Cities • 2017 - $41 Million - 512,000 Square Feet in 4 Cities 27
Operating Results – Year Ended 12/31/19 (Straight Line Rents Included) • Increase in Same Property Results – 3.7% • FFO per Share Increase – 6.9% • Leased at December 31, 2019 – 97.6% 28
Capitalization (as of 12/31/19) Variable Rate Debt Shareholders’ Market Equity $5.2 Billion $113 Million (common @ $132.67 per share) 2% 17% 81% Fixed Rate Debt $1.1 Billion, Average Rate of 3.5% 29
Dividend Growth (Through 12/31/19) • Declared 160th Consecutive Quarterly Cash Dividend – $0.75 per Share • Increased or Maintained Dividend for 27 Consecutive Years • Dividend Has Increased 24 of the Past 27 Years – Increased Each of the Last 8 Years 30
Dividend FFO Payout Ratio 90% 81% 77% 80% 73% 73% 73% 70% 70% 68% 70% 66% 65% 65% 64% 64% 64% 63% 61% 59% 58% 59% 60% 50% 40% 30% 20% 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dividend Payout 31
Compound Annual Total Return (For Period Ended December 31, 2019) 60.0% 48.2% 50.0% 40.0% 30.0% 24.8% 19.6% 20.0% 17.5% 15.8% 13.1% 10.0% 0.0% 1 Year 3 Year 5 Year 10 Year 15 Year 20 Year Percentage 32
Total Return Performance Value of $100 invested $260 $240 $220 $200 $180 $160 $140 $120 $100 $80 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 EastGroup FTSE NAREIT Equity REITs S&P 500 Total Return 33
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