Table of Contents Conference Call 877-876-9173 | ID – EastGroup February 7, 201 9 | 11:00 a.m. Eastern Time 2018 webcast available at FOURTH QUARTER EastGroup.net Supplemental Information December 31, 2018 400 W. Parkway Place, Suite 100, Ridgeland, MS 39157 | TEL: 601-354-3555 | FAX: 601-352-1441 | EastGroup.net Page 1 of 24
Table of Contents Consolidated Balance Sheets....................................................................... 3 Consolidated Statements of Income and Comprehensive Income .............. 4 Reconciliations of GAAP to Non-GAAP Measures ................................... 5 Consolidated Statements of Cash Flows ..................................................... 6 Same Property Portfolio Analysis ............................................................... 7 Additional Financial Information ................................................................ 8 Development and Value-Add Properties Summary .................................... 9 Development and Value-Add Properties Transferred to Real Estate Properties ... 10 Debt and Equity Market Capitalization ....................................................... 11 Continuous Equity Program ........................................................................ 12 Adjusted Debt-to-Pro Forma EBITDAre Reconciliation ............................ 13 Acquisitions and Dispositions ..................................................................... 14 Real Estate Improvements and Leasing Costs ............................................ 15 Leasing Statistics and Occupancy Summary .............................................. 16 Core Market Operating Statistics ................................................................ 17 Lease Expiration Summary ......................................................................... 18 Top 10 Customers by Annualized Base Rent .............................................. 19 Unconsolidated Investment Information ..................................................... 20 Financial Statistics ....................................................................................... 21 Outlook for 2019 ......................................................................................... 22 Glossary of REIT Terms ............................................................................. 23 FORWARD-LOOKING STATEMENTS The statements and certain other information contained in this press release, 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. Page 2 of 24
Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) December 31, 2018 December 31, 2017 ASSETS Real estate properties $ 2,553,481 2,336,734 Development and value-add properties 263,664 242,014 2,817,145 2,578,748 Less accumulated depreciation (814,915) (749,601) 2,002,230 1,829,147 Unconsolidated investment 7,870 8,029 Cash 374 16 Other assets 121,231 116,029 TOTAL ASSETS $ 2,131,705 1,953,221 LIABILITIES AND EQUITY LIABILITIES Unsecured bank credit facilities $ 193,926 195,709 Unsecured debt 723,400 713,061 Secured debt 188,461 199,512 Accounts payable and accrued expenses 86,563 64,967 Other liabilities 34,652 28,842 Total Liabilities 1,227,002 1,202,091 EQUITY Stockholders' Equity: Common stock; $.0001 par value; 70,000,000 shares authorized; 36,501,356 shares issued and outstanding at December 31, 2018 and 34,758,167 at December 31, 2017 4 3 Excess shares; $.0001 par value; 30,000,000 shares authorized; no shares issued - - Additional paid-in capital 1,222,547 1,061,153 Distributions in excess of earnings (326,193) (317,032) Accumulated other comprehensive income 6,701 5,348 Total Stockholders' Equity 903,059 749,472 Noncontrolling interest in joint ventures 1,644 1,658 Total Equity 904,703 751,130 TOTAL LIABILITIES AND EQUITY $ 2,131,705 1,953,221 Page 3 of 24
Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 REVENUES Income from real estate operations $ 77,872 71,327 299,018 274,031 Other revenue 106 29 1,374 119 77,978 71,356 300,392 274,150 EXPENSES Expenses from real estate operations 22,547 20,748 86,394 80,108 Depreciation and amortization 24,241 21,773 91,704 83,874 General and administrative 3,475 3,386 13,738 14,972 50,263 45,907 191,836 178,954 OPERATING INCOME 27,715 25,449 108,556 95,196 OTHER INCOME (EXPENSE) Interest expense (8,853) (8,370) (35,106) (34,775) Gain on sales of real estate investments - - 14,273 21,855 Other (279) 588 913 1,313 NET INCOME 18,583 17,667 88,636 83,589 Net income attributable to noncontrolling interest in joint ventures (27) (77) (130) (406) NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS 18,556 17,590 88,506 83,183 Other comprehensive income (loss) - cash flow hedges (3,992) 2,703 1,353 3,353 TOTAL COMPREHENSIVE INCOME $ 14,564 20,293 89,859 86,536 BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders $ 0.51 0.51 2.50 2.45 Weighted average shares outstanding 36,135 34,406 35,439 33,996 DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders $ 0.51 0.51 2.49 2.44 Weighted average shares outstanding 36,232 34,505 35,506 34,047 Page 4 of 24
Reconciliations of GAAP to Non-GAAP Measures (In thousands, except per share data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 NET INCOME $ 18,583 17,667 88,636 83,589 (Gain) on sales of real estate investments - - (14,273) (21,855) Net (gain) on sales of non-operating real estate - (333) (86) (293) Net loss on other 497 - 70 - Interest income (34) (62) (156) (247) Other revenue (106) (29) (1,374) (119) Depreciation and amortization 24,241 21,773 91,704 83,874 Company's share of depreciation from unconsolidated investment 33 31 128 124 Interest expense (1) 8,853 8,370 35,106 34,775 General and administrative expense (2) 3,475 3,386 13,738 14,972 Noncontrolling interest in PNOI of consolidated 80% joint ventures (77) (140) (314) (633) PROPERTY NET OPERATING INCOME (PNOI) $ 55,465 50,663 213,179 194,187 NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS $ 18,556 17,590 88,506 83,183 Depreciation and amortization 24,241 21,773 91,704 83,874 Company's share of depreciation from unconsolidated investment 33 31 128 124 Depreciation and amortization from noncontrolling interest (49) (64) (182) (224) (Gain) on sales of real estate investments - - (14,273) (21,855) FUNDS FROM OPERATIONS (FFO) ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 42,781 39,330 165,883 145,102 NET INCOME $ 18,583 17,667 88,636 83,589 Interest expense (1) 8,853 8,370 35,106 34,775 Depreciation and amortization 24,241 21,773 91,704 83,874 Company's share of depreciation from unconsolidated investment 33 31 128 124 EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) 51,710 47,841 215,574 202,362 (Gain) on sales of real estate investments - - (14,273) (21,855) EBITDA for Real Estate (EBITDAre) $ 51,710 47,841 201,301 180,507 DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders $ 0.51 0.51 2.49 2.44 Funds from operations (FFO) attributable to common stockholders $ 1.18 1.14 4.67 4.26 Weighted average shares outstanding for EPS and FFO purposes 36,232 34,505 35,506 34,047 (1) Net of capitalized interest of $1,789 and $1,523 for the three months ended December 31, 2018 and 2017, respectively; and $6,334 and $5,765 for the twelve months ended December 31, 2018 and 2017, respectively. (2) Net of capitalized development costs of $1,192 and $1,104 for the three months ended December 31, 2018 and 2017, respectively; and $4,696 and $4,754 for the twelve months ended December 31, 2018 and 2017, respectively. Page 5 of 24
Consolidated Statements of Cash Flows (In thousands) (Unaudited) Twelve Months Ended December 31, 2018 2017 OPERATING ACTIVITIES Net income $ 88,636 83,589 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 91,704 83,874 Stock-based compensation expense 5,283 5,521 Net gain on sales of real estate investments and non-operating real estate (14,359) (22,148) Gain on casualties and involuntary conversion (1,245) - Changes in operating assets and liabilities: Accrued income and other assets (4,091) (5,034) Accounts payable, accrued expenses and prepaid rent (2,682) 8,333 Other 1,485 879 NET CASH PROVIDED BY OPERATING ACTIVITIES 164,731 155,014 INVESTING ACTIVITIES Development and value-add properties (167,667) (124,938) Purchases of real estate properties (57,152) (55,195) Real estate improvements (37,502) (27,385) Net proceeds from sales of real estate investments and non-operating real estate 24,508 42,710 Proceeds from casualties and involuntary conversion 1,635 - Repayments on mortgage loans receivable 1,987 171 Changes in accrued development costs 5,711 (144) Changes in other assets and other liabilities (12,955) (14,645) NET CASH USED IN INVESTING ACTIVITIES (241,435) (179,426) FINANCING ACTIVITIES Proceeds from unsecured bank credit facilities 448,100 391,617 Repayments on unsecured bank credit facilities (448,709) (387,298) Proceeds from unsecured debt 60,000 60,000 Repayments on unsecured debt (50,000) - Repayments on secured debt (11,289) (58,209) Debt issuance costs (1,922) (380) Distributions paid to stockholders (not including dividends accrued) (71,294) (86,725) Proceeds from common stock offerings 157,319 109,207 Proceeds from dividend reinvestment plan 221 228 Other (5,364) (4,534) NET CASH PROVIDED BY FINANCING ACTIVITIES 77,062 23,906 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 358 (506) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 16 522 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 374 16 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest, net of amounts capitalized of $6,334 and $5,765 for 2018 and 2017, respectively $ 33,458 33,634 Page 6 of 24
Same Property Portfolio Analysis (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, Annual Same Property Portfolio Analysis (Straight-Line Basis) (1) 2018 2017 % Change 2018 2017 % Change Square feet as of period end 34,220 34,220 34,220 34,220 Average occupancy 97.2% 97.5% -0.3% 96.9% 96.6% 0.3% Occupancy as of period end 97.3% 97.6% -0.3% 97.3% 97.6% -0.3% Income from real estate operations $ 68,099 66,137 3.0% $ 266,465 256,668 3.8% Less cash received for lease terminations (126) (292) (323) (507) Add straight-line rent write-offs for lease terminations 5 22 29 39 Income excluding lease termination income 67,978 65,867 3.2% 266,171 256,200 3.9% Expenses from real estate operations (20,103) (19,172) 4.9% (77,293) (74,215) 4.1% PNOI excluding income from lease terminations $ 47,875 46,695 2.5% $ 188,878 181,985 3.8% Annual Same Property Portfolio Analysis (Cash Basis) (1) Income from real estate operations $ 67,896 65,663 3.4% $ 265,037 254,661 4.1% Less cash received for lease terminations (126) (292) (323) (507) Income excluding lease termination income 67,770 65,371 3.7% 264,714 254,154 4.2% Expenses from real estate operations (19,809) (19,121) 3.6% (76,790) (74,006) 3.8% PNOI excluding income from lease terminations $ 47,961 46,250 3.7% $ 187,924 180,148 4.3% Three Months Ended December 31, Quarterly Same Property Portfolio Analysis (Straight-Line Basis) (2) 2018 2017 % Change Square feet as of period end 36,713 36,713 Average occupancy 97.1% 96.7% 0.4% Occupancy as of period end 97.3% 97.0% 0.3% Income from real estate operations $ 73,134 70,401 3.9% Less cash received for lease terminations (126) (292) Add straight-line rent write-offs for lease terminations 5 22 Income excluding lease termination income 73,013 70,131 4.1% Expenses from real estate operations (21,494) (20,301) 5.9% PNOI excluding income from lease terminations $ 51,519 49,830 3.4% Quarterly Same Property Portfolio Analysis (Cash Basis) (2) Income from real estate operations $ 72,791 69,317 5.0% Less cash received for lease terminations (126) (292) Income excluding lease termination income 72,665 69,025 5.3% Expenses from real estate operations (21,199) (20,250) 4.7% PNOI excluding income from lease terminations $ 51,466 48,775 5.5% (1) Includes properties which were included in the operating portfolio for the entire period from 1/1/17 through 12/31/18. (2) Includes properties which were included in the operating portfolio for the entire period from 10/1/17 through 12/31/18. Page 7 of 24
Additional Financial Information (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 SELECTED INCOME STATEMENT INFORMATION (Items below represent increases or (decreases) in FFO) Straight-line (S/L) rent income adjustment $ 1,166 1,049 5,116 3,723 Bad debt expense on S/L rent (295) (51) (504) (209) Net straight-line rent adjustment 871 998 4,612 3,514 Cash received for lease terminations 126 292 323 507 Less S/L rent write-offs (5) (22) (29) (39) Net lease termination fee income 121 270 294 468 Bad debt expense (excluding S/L rent bad debt) (207) (116) (280) (290) Gain on casualties and involuntary conversion (1) 95 - 1,245 - Stock-based compensation expense (1,250) (1,255) (5,283) (5,521) Debt issuance costs amortization (346) (307) (1,352) (1,250) Acquired leases - above/below market rent adjustment amortization 190 123 667 529 Assumed mortgages - fair value adjustment amortization 6 8 27 31 Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 WEIGHTED AVERAGE COMMON SHARES Weighted average common shares 36,135 34,406 35,439 33,996 BASIC SHARES FOR EARNINGS PER SHARE (EPS) 36,135 34,406 35,439 33,996 Potential common shares: Unvested restricted stock 97 99 67 51 DILUTED SHARES FOR EPS AND FFO 36,232 34,505 35,506 34,047 (1) Included in Other revenue on the Consolidated Statements of Income and Comprehensive Income; included in FFO. Page 8 of 24
Development and Value-Add Properties Summary ($ in thousands) (Unaudited) Costs Incurred Anticipated 4th Qtr Cumulative Projected Conversion % Leased Square Feet (SF) 2018 at 12/31/18 Total Costs Date (1) 2/5/19 Lease-up Siempre Viva San Diego, CA 115,000 $ 141 14,075 14,400 01/19 100% CreekView 121 3 & 4 Dallas, TX 158,000 1,074 13,800 16,200 03/19 100% Falcon Field Phoenix, AZ 96,000 325 8,232 9,400 05/19 57% Gateway 1 Miami, FL 200,000 2,090 20,241 25,000 05/19 100% Broadmoor 2 Atlanta, GA 111,000 692 6,414 7,400 11/19 0% Total Lease-up 680,000 4,322 62,762 72,400 78% Wgt Avg % (2) Projected Stabilized Yield 7.1% Under Construction Horizon XI Orlando, FL 135,000 1,364 8,723 10,400 01/20 0% Settlers Crossing 1 Austin, TX 77,000 707 6,260 7,400 01/20 0% Settlers Crossing 2 Austin, TX 83,000 1,206 7,115 8,400 01/20 41% SunCoast 5 Ft Myers, FL 81,000 1,308 6,535 7,700 01/20 0% Airport Commerce Center 3 Charlotte, NC 96,000 2,419 5,793 7,300 02/20 36% Parc North 5 Dallas, TX 100,000 2,109 6,953 9,200 02/20 58% Steele Creek V Charlotte, NC 54,000 1,540 3,314 5,800 03/20 56% Horizon VI Orlando, FL 148,000 3,827 8,225 12,700 04/20 84% Ten West Crossing 8 Houston, TX 132,000 2,598 6,590 10,900 04/20 38% Tri-County Crossing 1 & 2 San Antonio, TX 203,000 2,608 8,895 14,600 04/20 10% Eisenhauer Point 7 & 8 San Antonio, TX 336,000 5,419 13,090 24,500 05/20 33% CreekView 121 5 & 6 Dallas, TX 139,000 5,605 5,605 14,900 07/20 0% Total Under Construction 1,584,000 30,710 87,098 133,800 29% Wgt Avg % (2) Projected Stabilized Yield 7.6% 44% Wgt Avg % Prospective Development Acres Projected SF Phoenix, AZ 24 315,000 6,809 6,809 Ft Myers, FL 35 488,000 1,515 13,322 Miami, FL 52 650,000 2,277 36,331 Orlando, FL 13 214,000 124 5,719 Tampa, FL 8 32,000 - 1,560 Atlanta, GA 10 100,000 93 726 Jackson, MS 3 28,000 - 706 Charlotte, NC 50 600,000 763 7,209 Austin, TX 15 180,000 181 3,742 Dallas, TX (3) 46 612,000 (2,790) 12,192 Houston, TX 83 1,123,000 529 16,439 San Antonio, TX 59 908,000 3,741 9,049 Total Prospective Development 398 5,250,000 13,242 113,804 398 7,514,000 $ 48,274 263,664 (1) Will transfer from Development and value-add properties to the operating portfolio at the earlier of 90% occupancy or one year after shell completion/value-add vacancy occurrence. (2) Weighted average yield based on property net operating income at 100% occupancy and rents computed on a straight-line basis. (3) Negative amount represents land inventory costs transferred to Under Construction. Page 9 of 24
Development and Value-Add Properties Transferred to Real Estate Properties ($ in thousands) (Unaudited) Costs Incurred 4th Qtr Cumulative % Leased Square Feet (SF) 2018 at 12/31/18 2/5/19 1st Quarter SF Alamo Ridge IV San Antonio, TX 97,000 $ 2 7,816 100% Oak Creek VII Tampa, FL 116,000 12 7,136 100% Weston Ft Lauderdale, FL 134,000 26 15,805 100% 347,000 40 30,757 2nd Quarter Country Club V Tucson, AZ 305,000 26 24,518 100% Eisenhauer Point 3 San Antonio, TX 71,000 2 6,672 100% Horizon X Orlando, FL 104,000 14 7,446 100% Progress Center 1 & 2 Atlanta, GA 132,000 - 10,521 61% SunCoast 4 Ft Myers, FL 93,000 5 9,270 100% 705,000 47 58,427 3rd Quarter Kyrene 202 III, IV & V Phoenix, AZ 166,000 (16) 12,928 100% Steele Creek VII Charlotte, NC 120,000 (13) 9,143 100% 286,000 (29) 22,071 4th Quarter Eisenhauer Point 5 San Antonio, TX 98,000 343 7,835 100% Eisenhauer Point 6 San Antonio, TX 85,000 25 5,428 100% Horizon XII Orlando, FL 140,000 47 11,988 100% West Road 5 Houston, TX 58,000 316 4,851 100% 381,000 731 30,102 Total Transferred to Real Estate Properties 1,719,000 $ 789 141,357 (1) Projected Stabilized Yield 8.1% 97% Wgt Avg % (1) Weighted average yield based on property net operating income at 100% occupancy and rents computed on a straight-line basis. Page 10 of 24
Debt and Equity Market Capitalization December 31, 2018 ($ in thousands, except per share data) (Unaudited) Average 2024 and Years to 2019 2020 2021 2022 2023 Beyond Total Maturity Unsecured debt (fixed rate) $ 75,000 105,000 40,000 75,000 115,000 315,000 725,000 4.6 Weighted average interest rate 2.85% 3.55% 2.34% 3.03% 2.96% 3.74% 3.34% Secured debt (fixed rate): Balloon payments 45,725 - 85,601 32,655 - 1,549 165,530 Amortization 9,842 9,096 3,962 114 119 375 23,508 55,567 9,096 89,563 32,769 119 1,924 189,038 1.8 Weighted average interest rate 7.01% 4.43% 4.55% 4.09% 3.85% 3.85% 5.18% Total unsecured debt and secured debt $ 130,567 114,096 129,563 107,769 115,119 316,924 914,038 4.0 Weighted average interest rate 4.62% 3.62% 3.86% 3.35% 2.96% 3.74% 3.72% Unsecured debt and secured debt (fixed rate) $ 914,038 Unsecured bank credit facilities (variable rate) $45MM Line - 3.503% - matures 7/30/2022 8,730 $350MM Line - 3.508% - matures 7/30/2022 187,000 Total carrying amount of debt $ 1,109,768 Total unamortized debt issuance costs (3,981) Total debt net of unamortized debt issuance costs $ 1,105,787 Equity market capitalization Shares outstanding - common 36,501,356 Price per share at quarter end $ 91.73 Total equity market capitalization $ 3,348,269 (1) Total market capitalization (debt and equity) $ 4,458,037 (1) Total debt / total market capitalization 24.9% (1) Before deducting unamortized debt issuance costs Page 11 of 24
Continuous Equity Program ($ in thousands, except per share data) (Unaudited) Average Shares Issued Sales Price Offering-Related and Sold (1) (Per Share) Gross Proceeds Fees and Expenses Net Proceeds 1st Quarter 2018 179,501 $ 82.68 $ 14,842 $ (240) $ 14,602 2nd Quarter 2018 750,282 91.01 68,281 (728) 67,553 3rd Quarter 2018 316,102 96.56 30,523 (353) 30,170 4th Quarter 2018 460,589 98.77 45,492 (498) 44,994 TOTAL 2018 1,706,474 $ 93.26 $ 159,138 $ (1,819) $ 157,319 (1) As of February 5, 2019, the Company had 4,694,866 shares authorized and remaining for issuance under its continuous equity program. Page 12 of 24
Adjusted Debt-to-Pro Forma EBITDAre Reconciliation ($ in thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, 2018 December 31, 2018 EBITDAre for the period $ 51,710 201,301 Adjust PNOI for acquisitions as if owned for entire period 55 1,909 Adjust PNOI for development and value-add properties in lease-up or under construction (144) (304) Adjust PNOI for properties sold during the period - (474) Pro Forma EBITDAre $ 51,621 202,432 PRO FORMA EBITDAre – ANNUALIZED $ 206,484 202,432 Debt at December 31, 2018 $ 1,105,787 1,105,787 Subtract development and value-add properties in lease-up or under construction (149,860) (149,860) Adjusted Debt $ 955,927 955,927 ADJUSTED DEBT-TO-PRO FORMA EBITDAre RATIO 4.63 4.72 Page 13 of 24
Acquisitions and Dispositions Through December 31, 2018 ($ in thousands) (Unaudited) ACQUISITIONS Purchase Date Property Name Location Size Price (1) 1st Quarter None 2nd Quarter 04/24/18 Gwinnett 316 Atlanta, GA 65,000 SF $ 4,356 06/20/18 Eucalyptus Distribution Center Chino, CA 182,000 SF 23,304 3rd Quarter 07/12/18 Siempre Viva Distribution Center (2) San Diego, CA 115,000 SF 14,033 08/13/18 LakePort 2499 Land Dallas, TX 30.4 Acres 5,700 08/29/18 Allen Station I & II Dallas, TX 220,000 SF 25,175 4th Quarter 10/15/18 Ridgeview 35 Land San Antonio, TX 29.4 Acres 3,273 10/26/18 Gilbert Crossroads Land Phoenix, AZ 23.6 Acres 6,534 12/04/18 Greenhill Distribution Center Austin, TX 45,000 SF 4,218 83.4 Acres Total Acquisitions 627,000 SF $ 86,593 DISPOSITIONS Date Property Name Location Size Gross Sales Price Realized Gain 1st Quarter 01/26/18 World Houston 18 Houston, TX 33,000 SF $ 2,460 1,078 (3) 03/20/18 56 Commerce Park Tampa, FL 181,000 SF 12,450 9,144 (3) 03/28/18 Lee Road Land Houston, TX 10.7 Acres 2,577 86 (4) 2nd Quarter None 3rd Quarter 07/26/18 35th Avenue Distribution Center Phoenix, AZ 125,000 SF 7,941 4,051 (3) 4th Quarter None 10.7 Acres Total Sales 339,000 SF $ 25,428 14,359 (1) Represents acquisition price plus closing costs. (2) Value-add property acquisition; land, building and tenant improvements are included in Development and value-add properties on the Consolidated Balance Sheets. (3) Included in Gain on sales of real estate investments on the Consolidated Statements of Income and Comprehensive Income; not included in FFO. (4) Included in Other on the Consolidated Statements of Income and Comprehensive Income; included in FFO. Page 14 of 24
Real Estate Improvements and Leasing Costs (In thousands) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, REAL ESTATE IMPROVEMENTS 2018 2017 2018 2017 Upgrade on Acquisitions $ 120 4 294 161 Tenant Improvements: New Tenants 2,682 3,224 12,896 11,413 Renewal Tenants 692 625 2,926 3,357 Other: Building Improvements 2,455 1,230 9,012 3,362 Roofs 2,172 2,776 9,053 6,197 Parking Lots 766 241 2,878 1,880 Other 96 168 861 1,101 TOTAL REAL ESTATE IMPROVEMENTS (2) $ 8,983 8,268 37,920 27,471 CAPITALIZED LEASING COSTS (Principally Commissions) (1) Development and Value-Add $ 1,086 1,947 4,843 5,571 New Tenants 938 518 5,880 5,782 Renewal Tenants 1,950 981 5,038 4,907 TOTAL CAPITALIZED LEASING COSTS $ 3,974 3,446 15,761 16,260 (1) Included in Other Assets . (2) Reconciliation of Total Real Estate Improvements to Real Estate Improvements on the Consolidated Statements of Cash Flows: Twelve Months Ended December 31, 2018 2017 Total Real Estate Improvements $ 37,920 27,471 Change in Real Estate Property Payables 581 (1,313) Change in Construction in Progress (999) 1,227 Real Estate Improvements on the Consolidated Statements of Cash Flows $ 37,502 27,385 Page 15 of 24
Leasing Statistics and Occupancy Summary (Unaudited) Three Months Ended Number of Square Feet Weighted Rental Change Rental Change PSF Tenant PSF Leasing PSF Total December 31, 2018 Leases Signed Signed Average Term Straight-Line Basis Cash Basis Improvement (1) Commission (1) Leasing Cost (1) (In Thousands) (In Years) New Leases (2) 32 428 4.6 11.8% 6.4% $ 6.31 $ 2.26 $ 8.57 Renewal Leases 58 1,386 4.6 18.7% 8.5% 0.55 1.23 1.78 Total/Weighted Average 90 1,814 4.6 16.6% 7.9% $ 1.91 $ 1.47 $ 3.38 Per Year $ 0.42 $ 0.32 $ 0.74 Weighted Average Retention (3) 80.8% Twelve Months Ended Number of Square Feet Weighted Rental Change Rental Change PSF Tenant PSF Leasing PSF Total December 31, 2018 Leases Signed Signed Average Term Straight-Line Basis Cash Basis Improvement (1) Commission (1) Leasing Cost (1) (In Thousands) (In Years) New Leases (2) 147 2,147 5.4 11.1% 2.2% $ 5.49 $ 2.40 $ 7.89 Renewal Leases 246 5,218 3.9 18.1% 8.3% 0.68 1.01 1.69 Total/Weighted Average 393 7,365 4.3 15.8% 6.3% $ 2.08 $ 1.42 $ 3.50 Per Year $ 0.48 $ 0.33 $ 0.81 Weighted Average Retention (3) 77.6% Excluding leases signed in Q2 2018 at R&D property in Santa Barbara: Twelve Months Ended Number of Square Feet Weighted Rental Change Rental Change PSF Tenant PSF Leasing PSF Total December 31, 2018 Leases Signed Signed Average Term Straight-Line Basis Cash Basis Improvement (1) Commission (1) Leasing Cost (1) (In Thousands) (In Years) New Leases (2) 143 2,112 5.4 12.4% 3.9% $ 4.24 $ 2.34 $ 6.58 (4) Total/Weighted Average 389 7,330 4.3 16.3% 6.9% $ 1.71 $ 1.40 $ 3.11 Per Year $ 0.40 $ 0.32 $ 0.72 12/31/18 09/30/18 06/30/18 03/31/18 12/31/17 Percentage Leased 97.3% 97.1% 97.0% 97.0% 97.0% Percentage Occupied 96.8% 95.7% 96.4% 96.4% 96.4% (1) Per square foot (PSF) amounts represent total amounts for the life of the lease, except as noted for the Per Year amounts. (2) Does not include leases with terms less than 12 months and leases for first generation space on properties acquired or developed by EastGroup. (3) Calculated as square feet of renewal leases signed during the quarter / square feet of leases expiring during the quarter (not including early terminations or bankruptcies). (4) Includes Renewal Leases, which were not impacted by leases signed at R&D property in Santa Barbara. Page 16 of 24
Core Market Operating Statistics December 31, 2018 (Unaudited) Same Property PNOI Change Rental Change (excluding income from lease terminations) New and Renewal Leases (3) Total Lease Expirations QTR YTD QTR YTD Square Feet % Annualized % % in Square Feet Straight-Line Cash Straight-Line Cash Straight-Line Cash Straight-Line Cash of Properties of Total Base Rent (1) Leased Occupied 2019 (2) 2020 Basis Basis (4) Basis Basis (4) Basis Basis (4) Basis Basis (4) Florida Tampa 4,177,000 10.7% 9.8% 95.9% 95.7% 509,000 966,000 -0.1% -0.7% 1.2% 0.5% 15.4% 8.0% 20.9% 9.8% Orlando 3,372,000 8.6% 9.3% 99.4% 99.4% 311,000 598,000 2.2% 2.3% 2.3% -1.0% 16.7% 2.6% 20.1% 6.8% Jacksonville 2,273,000 5.8% 4.3% 97.7% 92.7% 416,000 503,000 -2.9% -6.1% 0.2% 0.8% 20.0% 10.8% 21.7% 11.0% Ft. Lauderdale 1,071,000 2.7% 3.4% 98.0% 97.8% 86,000 297,000 -2.0% -2.0% 2.4% 4.2% 19.0% 8.3% 15.1% 5.0% Ft. Myers 311,000 0.8% 1.0% 100.0% 100.0% 53,000 15,000 11.1% 10.5% 8.7% 6.6% N/A N/A 18.6% 9.6% 11,204,000 28.6% 27.8% 97.6% 96.5% 1,375,000 2,379,000 0.2% -0.5% 1.7% 0.6% 17.1% 7.1% 19.6% 8.4% Texas Dallas 3,570,000 9.1% 7.9% 98.4% 97.8% 219,000 602,000 1.5% 6.0% 3.3% 7.5% 22.8% 12.0% 21.7% 13.0% Houston 5,548,000 14.1% 14.8% 96.6% 96.6% 561,000 547,000 6.1% 9.6% 9.0% 12.2% 10.4% 1.1% 8.1% -1.2% San Antonio 3,042,000 7.8% 8.8% 98.2% 97.7% 445,000 464,000 3.7% 3.7% 4.2% 3.0% 16.1% 9.4% 10.0% 2.3% Austin 743,000 1.9% 2.2% 100.0% 100.0% 150,000 91,000 6.2% 5.4% -4.7% -5.9% 2.8% 0.0% 6.1% 6.4% El Paso 958,000 2.4% 1.7% 98.5% 98.5% 110,000 162,000 5.5% 2.0% 4.5% 1.7% 26.9% 19.3% 19.2% 8.8% 13,861,000 35.3% 35.4% 97.7% 97.5% 1,485,000 1,866,000 4.6% 6.9% 5.6% 7.4% 12.5% 4.4% 12.0% 3.9% California San Francisco 1,045,000 2.7% 3.2% 100.0% 100.0% 260,000 140,000 5.2% 14.4% 6.9% 9.4% 152.3% 105.8% 107.1% 86.2% Los Angeles (5) 2,323,000 5.9% 7.4% 100.0% 100.0% 110,000 190,000 2.7% 6.2% 4.8% 8.5% 30.1% 17.2% 23.5% 14.0% Santa Barbara (5) 211,000 0.5% 1.5% 93.6% 88.7% 110,000 23,000 14.5% 13.7% -2.9% -4.9% N/A N/A -10.9% -24.7% Fresno 398,000 1.0% 0.8% 100.0% 100.0% 114,000 126,000 14.0% 17.2% 4.6% 3.9% N/A N/A 8.0% 3.6% San Diego 465,000 1.2% 1.0% 90.6% 90.6% 52,000 15,000 9.4% -20.9% 17.0% -9.2% 73.7% 53.2% 41.4% 27.6% 4,442,000 11.3% 13.9% 98.7% 98.5% 646,000 494,000 5.7% 6.7% 5.8% 5.3% 92.3% 65.4% 27.2% 14.9% Arizona Phoenix 2,404,000 6.1% 6.3% 99.0% 99.0% 303,000 404,000 -3.2% 8.8% 5.9% 13.3% 26.0% 14.7% 10.8% 0.6% Tucson 1,055,000 2.7% 2.5% 100.0% 100.0% 19,000 237,000 2.9% -13.3% -0.4% -7.2% N/A N/A 20.0% 9.1% 3,459,000 8.8% 8.8% 99.3% 99.3% 322,000 641,000 -1.8% 3.5% 4.4% 8.1% 26.0% 14.7% 11.9% 1.7% North Carolina Charlotte 3,131,000 8.0% 7.0% 100.0% 99.6% 270,000 628,000 2.4% 4.1% 4.1% 4.8% 22.1% 11.9% 20.7% 7.6% 3,131,000 8.0% 7.0% 100.0% 99.6% 270,000 628,000 2.4% 4.1% 4.1% 4.8% 22.1% 11.9% 20.7% 7.6% Georgia Atlanta 779,000 2.0% 1.0% 61.4% 61.4% 87,000 23,000 N/A N/A N/A N/A N/A N/A 11.9% 10.6% 779,000 2.0% 1.0% 61.4% 61.4% 87,000 23,000 N/A N/A N/A N/A N/A N/A 11.9% 10.6% Total Core Markets 36,876,000 94.0% 93.9% 97.4% 96.9% 4,185,000 6,031,000 2.7% 4.0% 4.2% 4.8% 19.4% 9.7% 16.9% 6.9% Total Other Markets 2,355,000 6.0% 6.1% 96.0% 94.7% 244,000 212,000 -0.6% -1.8% -2.7% -3.3% 6.7% 1.6% 6.1% 0.4% Total Operating Properties 39,231,000 100.0% 100.0% 97.3% 96.8% 4,429,000 6,243,000 2.5% 3.7% 3.8% 4.3% 16.6% 7.9% 15.8% 6.3% (1) Based on the Annualized Base Rent as of the reporting period for occupied square feet (without S/L Rent). (2) Includes month-to-month leases. (3) Does not include leases with terms less than 12 months and leases for first generation space on properties acquired or developed by EastGroup. (4) Excludes straight-line rent adjustments and amortization of above/below market rent intangibles. (5) Includes the Company's share of its less-than-wholly-owned real estate investments. Page 17 of 24
Lease Expiration Summary Total Square Feet of Operating Properties Based On Leases Signed Through Dec ember 31, 2018 ($ in thousands) (Unaudited) Annualized Current % of Total (Unaudited) Base Rent of Base Rent of Square Footage of % of Leases Expiring Leases Expiring LEASE EXPIRATION Leases Expiring Total SF (without S/L Rent) (without S/L Rent) Vacancy 1,058,000 2.7% $ - 0.0% 2019 (1) 4,429,000 11.3% 28,660 12.6% 2020 6,243,000 15.9% 37,247 16.3% 2021 7,340,000 18.7% 44,134 19.3% 2022 5,618,000 14.3% 34,081 14.9% 2023 4,544,000 11.6% 27,361 12.0% 2024 4,180,000 10.7% 22,504 9.9% 2025 2,057,000 5.2% 12,329 5.4% 2026 1,054,000 2.7% 6,295 2.8% 2027 848,000 2.2% 5,790 2.5% 2028 and beyond 1,860,000 4.7% 9,891 4.3% TOTAL 39,231,000 100.0% $ 228,292 100.0% (1) Includes month-to-month leases. Page 18 of 24
Top 10 Customers by Annualized Base Rent As of December 31, 2018 (Unaudited) % of Total # of Total SF % of Total Annualized Customer Leases Location Leased Portfolio Base Rent(Unaudited) (1) 1 The Chamberlain Group 2 Tucson, AZ 350,000 0.9% 1.1% 2 WNA Comet West, Inc. 1 Los Angeles, CA 411,000 1.0% 1.1% 3 Essendant Co. 1 Orlando, FL 404,000 1.0% 1.0% 4 Mattress Firm 1 Houston, TX 202,000 1 Tampa, FL 109,000 1 Jacksonville, FL 49,000 1 Ft. Myers, FL 25,000 1.0% 0.9% 5 Price Transfer 1 Los Angeles, CA 262,000 0.7% 0.8% 6 Kuehne & Nagel, Inc. 2 Houston, TX 172,000 2 Charlotte, NC 106,000 0.7% 0.8% 7 Iron Mountain Information 2 Tampa, FL 184,000 Management, Inc. 2 Phoenix, AZ 59,000 1 Ft. Lauderdale, FL 45,000 1 Jacksonville, FL 40,000 0.8% 0.7% 8 Medtronic Inc. 1 Santa Barbara, CA 82,000 0.2% 0.7% 9 Arizona Nutritional 2 Phoenix, AZ 228,000 0.6% 0.6% Supplements LLC 10 U.S. Postal Service 1 Houston, TX 110,000 1 New Orleans, LA 99,000 2 Tampa, FL 59,000 0.7% 0.6% 26 2,996,000 7.6% 8.3% (1) Calculation: Customer Annualized Base Rent as of 12/31/18 (without S/L Rent) / Total Annualized Base Rent (without S/L Rent). Page 19 of 24
Unconsolidated Investment Information ($ in thousands) (Unaudited) Property Industry Distribution Center II (Unaudited) Acquisition Date November 23, 2004 Percent Leased 100% Total Square Feet (100%) 309,000 Company Ownership 50% EastGroup's Basis in 50% Selected Financial Information Ownership Balance Sheet Information as of December 31, 2018 ASSETS Real estate properties $ 9,364 Less accumulated depreciation (1,842) 7,522 Other assets 422 TOTAL ASSETS $ 7,944 LIABILITIES AND EQUITY Other liabilities $ 74 Equity 7,870 TOTAL LIABILITIES AND EQUITY $ 7,944 EastGroup's Net Investment at December 31, 2018 $ 7,870 (1) EastGroup's 50% Ownership Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Income Statement Information Property NOI $ 217 224 869 897 Depreciation Expense (33) (31) (128) (124) (2) Equity in Earnings $ 184 193 741 773 Funds From Operations $ 217 224 869 897 (1) Presented as Unconsolidated investment on the Consolidated Balance Sheets. (2) Included in Other on the Consolidated Statements of Income and Comprehensive Income. Page 20 of 24
Financial Statistics ($ in thousands, except per share data) (Unaudited) Years Ended 2018 2017 2016 2015 2014 (Unaudited) ASSETS/MARKET CAPITALIZATION Assets $ 2,131,705 1,953,221 1,825,764 1,661,904 1,572,112 Equity Market Capitalization 3,348,269 3,071,927 2,461,251 1,802,957 2,040,967 (1) Total Market Capitalization (Debt and Equity) 4,458,037 4,183,620 3,566,865 2,835,194 2,974,144 Shares Outstanding - Common 36,501,356 34,758,167 33,332,213 32,421,460 32,232,587 Price per share $ 91.73 88.38 73.84 55.61 63.32 FFO CHANGE FFO per diluted share $ 4.67 4.26 4.02 3.67 3.47 Change compared to same period prior year 9.6% 6.0% 9.5% 5.8% 7.4% COMMON DIVIDEND PAYOUT RATIO Dividend distribution $ 2.72 2.52 2.44 2.34 2.22 FFO per diluted share 4.67 4.26 4.02 3.67 3.47 Dividend payout ratio 58% 59% 61% 64% 64% COMMON DIVIDEND YIELD Dividend distribution $ 2.72 2.52 2.44 2.34 2.22 Price per share 91.73 88.38 73.84 55.61 63.32 Dividend yield 2.97% 2.85% 3.30% 4.21% 3.51% FFO MULTIPLE FFO per diluted share $ 4.67 4.26 4.02 3.67 3.47 Price per share 91.73 88.38 73.84 55.61 63.32 Multiple 19.64 20.75 18.37 15.15 18.25 INTEREST & FIXED CHARGE COVERAGE RATIOS EBITDAre $ 201,301 180,507 167,196 153,574 145,461 Interest expense 35,106 34,775 35,213 34,666 35,728 Interest and fixed charge coverage ratios 5.73 5.19 4.75 4.43 4.07 DEBT-TO-EBITDAre RATIO Debt $ 1,105,787 1,108,282 1,101,333 1,027,909 929,465 EBITDAre 201,301 180,507 167,196 153,574 145,461 Debt-to-EBITDAre ratio 5.49 6.14 6.59 6.69 6.39 Adjusted debt-to-pro forma EBITDAre ratio 4.72 5.44 6.03 6.11 5.74 DEBT-TO-TOTAL MARKET CAPITALIZATION (1) 24.9% 26.6% 31.0% 36.4% 31.4% ISSUER RATINGS (2) Issuer Rating Outlook Moody's Investors Service Baa2 Stable (1) Before deducting unamortized debt issuance costs. (2) A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Page 21 of 24
Outlook for 2019 (Unaudited) Low Range High Range Q1 2019 Y/E 2019 Q1 2019 Y/E 2019 (In thousands, except per share data) (Unaudited) Net income attributable to common stockholders $ 18,729 79,887 19,459 83,567 Depreciation and amortization 24,059 96,233 24,059 96,233 Funds from operations attributable to common stockholders $ 42,788 176,120 43,518 179,800 Diluted shares 36,522 36,806 36,522 36,806 Per share data (diluted): Net income attributable to common stockholders $ 0.51 2.17 0.53 2.27 Funds from operations attributable to common stockholders 1.17 4.79 1.19 4.89 The following assumptions were used for the mid-point: Initial Guidance Actual for Metrics for Year 2019 Year 2018 FFO per share $4.79 - $4.89 $4.67 FFO per share increase over prior year period 3.6% 9.6% Same PNOI growth (excluding income from lease terminations): Straight-line basis — annual same property pool 2.4% - 3.4% (1) 3.8% Cash basis — annual same property pool (2) 3.5% - 4.5% (1) 4.3% Average month-end occupancy 96.2% 96.1% Lease termination fee income $450,000 $294,000 Bad debt expense (No identified bad debts for 2019) $900,000 $784,000 Development starts: Square feet 1.5 million 1.7 million Projected total investment $141 million $148 million Value-add property acquisitions None $14 million Operating property acquisitions $50 million $57 million Operating property dispositions (Potential gains on dispositions are not included in the projections) $47 million $23 million Unsecured debt closing in period $140 million at $60 million at 4.8% weighted 3.93% average interest rate Common stock issuances $60 million $159 million General and administrative expense $14 million $14 million (1) Includes properties which have been in the operating portfolio since 1/1/18 and are projected to be in the operating portfolio through 12/31/19 (annual same property pool); includes 36,762,000 square feet. (2) Cash basis excludes straight-line rent adjustments and amortization of above/below market rent intangibles. Page 22 of 24
Glossary of REIT Terms Listed below are definitions of commonly used real estate investment trust (REIT) industry terms. For additional information on REITs, please see the National Association of Real Estate Investment Trusts (Nareit) web site at (Unaudited) www.reit.com. Adjusted Debt-to-Pro Forma EBITDAre Ratio: A ratio calculated by dividing a company’s adjusted debt by its pro forma EBITDAre. Debt is adjusted by subtracting the cost of development and value-add properties in lease-up or under construction. EBITDAre is further adjusted by adding an estimate of NOI for significant acquisitions as if the acquired properties were owned for the entire period, and by subtracting NOI from development and value-add properties in lease- up or under construction and from properties sold during the period. Cash Basis: The Company adjusts its GAAP reporting to exclude straight-line rent adjustments and amortization of above/below market rent intangibles. Debt-to-EBITDAre Ratio: A ratio calculated by dividing a company’s debt by its EBITDAre; this ratio is used to analyze the Company’s financial condition and operating performance relative to its leverage. Debt-to-Total Market Capitalization Ratio: A ratio calculated by dividing a company’s debt by the total amount of a company’s equity (at market value) and debt. Earnings Before Interest Taxes Depreciation and Amortization for Real Estate (EBITDAre): Earnings, defined as Net Income, excluding gains or losses from sales of depreciable real estate property, plus interest, taxes, depreciation and amortization. EBITDAre is a non-GAAP financial measure used to measure the Company’s operating performance and its ability to meet interest payment obligations and pay quarterly stock dividends on an unleveraged basis. Funds From Operations (FFO): FFO is the most commonly accepted reporting measure of a REIT’s operating performance, and the Company computes FFO in accordance with standards established by Nareit. It is equal to a REIT’s net income (loss) attributable to common stockholders computed in accordance with generally accepted accounting principles (GAAP), excluding gains or losses from sales of depreciable real estate property and impairment losses, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure used to evaluate the performance of the Company’s investments in real estate assets and its operating results. Industrial Properties: Generally consisting of four concrete walls tilted up on a slab of concrete. An internal office component is then added. Business uses include warehousing, distribution, light manufacturing and assembly, research and development, showroom, office, or a combination of some or all of the aforementioned. Leases Expiring and Renewal Leases Signed of Expiring Square Feet: Includes renewals during the period with terms commencing during the period and after the end of the period. Percentage Leased: The percentage of total leasable square footage for which there is a signed lease, including month-to- month leases, as of the close of the reporting period. Space is considered leased upon execution of the lease. Percentage Occupied: The percentage of total leasable square footage for which the lease term has commenced as of the close of the reporting period. Property Net Operating Income (PNOI): Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company’s share of income and property operating expenses from its less-than-wholly-owned real estate investments. PNOI is a non-GAAP financial measure used to evaluate the performance of the Company’s investments in real estate assets and its operating results. Page 23 of 24
Glossary of REIT Terms (Continued) Real Estate Investment Trust: A company that owns and, in most cases, operates income-producing real estate such as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in financing real estate. The shares of most REITs are freely traded, usually on a major stock exchange. To qualify as a REIT, a company must distribute(Unaudited) at least 90 percent of its taxable income to its stockholders annually. A company that qualifies as a REIT is permitted to deduct dividends paid to its stockholders from its corporate taxable income. As a result, most REITs remit at least 100 percent of their taxable income to their stockholders and therefore owe no corporate federal income tax. Taxes are paid by stockholders on the dividends received. Most states honor this federal treatment and also do not require REITs to pay state income tax. Rental changes on new and renewal leases: Rental changes are calculated as the difference, weighted by square feet, of the annualized base rent due the first month of the new lease’s term and the annualized base rent of the rent due the last month of the former lease’s term. If free rent is given, then the first positive full rent value is used. Rental amounts exclude base stop amounts, holdover rent, and premium or discounted rent amounts. This calculation excludes leases with terms less than 12 months and leases for first generation space on properties acquired or developed by EastGroup. Same Properties: Operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are excluded. • Quarterly Same Property Pool: Includes properties which were included in the operating portfolio for the entire period from October 1, 2017 through December 31, 2018. • Annual Same Property Pool: Includes properties which were included in the operating portfolio for the entire period from January 1, 2017 through December 31, 2018. Straight-Lining: The process of averaging the customer’s rent payments over the life of the lease. GAAP requires real estate companies to “straight-line” rents. Total Return: A stock’s dividend income plus capital appreciation over a specified period as a percentage of the stock price at the beginning of the period. Value-Add Properties: Properties that are either acquired but not stabilized or can be converted to a higher and better use. Acquired properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% occupied as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20% or greater of the acquisition cost will be spent to redevelop the property. Page 24 of 24
