February 2020 Forward-Looking Statements The statements and certain - - PowerPoint PPT Presentation

february 2020 forward looking statements
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February 2020 Forward-Looking Statements The statements and certain - - PowerPoint PPT Presentation

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,"


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February 2020

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Forward-Looking Statements

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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;
  • ther 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.

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Company Profile

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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.

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Company Highlights

  • Multi-Tenant Urban Distribution

Property Focus

  • Major Sunbelt Markets
  • Four-Pronged Growth Strategy
  • Demonstrated Track Record

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Industrial Real Estate

  • Stability
  • Limited Capital Requirements
  • Lack of Obsolescence
  • Flexibility
  • Location

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Geographic Focus

San Francisco Fresno

LOS ANGELES 6

  • 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*

Properties Corporate Headquarters Regional Offices

* Source: Cushman & Wakefield Research

Orlando Broward/Palm Beach

  • Ft. Myers

Tampa New Orleans Jacksonville

DALLAS/FT. WORTH

Houston Austin San Antonio El Paso Tucson Phoenix Las Vegas San Diego ATLANTA Charlotte JACKSON Denver Miami Greenville

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Property Net Operating Income by State

(Quarter Ended 12/31/19)

  • Texas 35%
  • Florida 28%
  • California 13%
  • Arizona 8%
  • North Carolina 7%
  • Other 9%

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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

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Construction Pipeline, Small vs. Large Warehouses

Note: Underway and planned as of Q2 2019

Source: CBRE Econometric Advisors, CBRE Research, Q2 2019

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Customer Focus

  • Location-Sensitive Customers
  • Compete on Location Not Rent
  • Users in the Broadest Portion
  • f the Market – 15,000 to 70,000

square feet

  • Diversified tenant base – Top 10

customers represent only 7.9%

  • f annualized base rent as of

December 31, 2019

  • 85% of Tenants lease under

100,000 Square Feet

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Property Selection

  • Specifications Keyed to Local

Sub-markets

  • Maximum Customer Flexibility
  • Clustering of Properties Around

Transportation Features in High Growth Areas

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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

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Growth Strategy

  • Targeted Development
  • Acquisitions – Operating, Value-Add,

Redevelopment

  • Recycling of Capital
  • Internal Growth

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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

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Master Planned Development

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Steele Creek Commerce Park

Charlotte, NC

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Sky Harbor Business Park

Phoenix, AZ

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 Orlando, FL

Southwest Commerce Crossing

Las Vegas, Nevada

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Horizon Commerce Park

Orlando, FL

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Alamo Ridge Business Park

San Antonio, TX

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Development History

(Through 12/31/19)

  • 47% of Portfolio
  • 213 Properties – Since 1996
  • 20.7 Million Square Feet
  • $1.7 Billion Investment

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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

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Value-Add Acquisitions

  • $253 Million Invested Since July 2016
  • Estimated Current Market Value of

$321 Million*

  • 2.4 Million Square Feet in 7 Markets

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* Based on estimated average market cap rate of 4.9%

(Through 12/31/19)

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Logistics Center 6 & 7

DFW Airport, TX

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Current Development and Value-Add Program

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(As of 12/31/19)

  • 28 Projects Located in 13 Cities
  • 4,088,000 Square Feet
  • Projected Total Cost of

$420 Million

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Recycling of Capital

  • Sales of Assets with Limited

Upside Potential

  • Reinvestment of Capital into

Higher-Growth Opportunities

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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

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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%

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Capitalization (as of 12/31/19)

Shareholders’ Market Equity $5.2 Billion (common @ $132.67 per share)

81%

Variable Rate Debt $113 Million

2% 17%

Fixed Rate Debt $1.1 Billion, Average Rate of 3.5%

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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

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65% 73% 81% 77% 73% 70% 64% 63% 65% 73% 70% 68% 66% 64% 64% 61% 59% 58% 59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividend Payout

Dividend FFO Payout Ratio

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Compound Annual Total Return

(For Period Ended December 31, 2019)

48.2% 24.8% 19.6% 17.5% 13.1% 15.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 1 Year 3 Year 5 Year 10 Year 15 Year 20 Year Percentage

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Total Return Performance

$80 $100 $120 $140 $160 $180 $200 $220 $240 $260 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019

Value of $100 invested

EastGroup FTSE NAREIT Equity REITs S&P 500 Total Return

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Our Priorities

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EastGroup operates on the premise that good corporate governance is fundamental to

  • ur business and is core to our values. The honesty and integrity of the Company’s

management and Board of Directors are critical assets in maintaining the trust of our investors, employees, customers, vendors and the communities in which we operate.

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Our Culture

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EastGroup is recognized in the marketplace for its unique culture—one that is family oriented, employee-focused and promotes an entrepreneurial

  • spirit. Our do-the-right-thing approach—one that

relies on accountability, respect and trust—has been the foundation of our success.

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Environmental Stewardship

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Reflective Roof Installation Drought-Resistant Plantings Energy Efficient Lighting

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EastGroup Properties

Things to Remember:

  • Track Record
  • Product Type
  • Growth Markets
  • Value Creation
  • Financial Strength
  • Dividend History

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Resources

www.EastGroup.net Tel: 601-354-3555 investor@eastgroup.net 400 W. Parkway Place Suite 100 Ridgeland, MS 39157

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