EGP - Earnings call transcript Q1 2018 | EastGroup Properties, Inc.

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Operator

Good morning, and welcome to the EastGroup Properties First Quarter 2018 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce Marshall Loeb, President and CEO. Please go ahead.

Marshall Loeb

Thank you. for for thanks XXXX first and call. conference morning, calling our in quarter Good

appreciate Brent we'll everyone’s is we disclaimer. that always, As interest. the to on looking we following call. you forward listen also Wood, the And making since be statements, ask participating CFO, our

Unidentified Company Representative

impact the information the disclosed The uncertainties its statement describes news conference the be accurate materially company's quarterly the results release results the to news of harbor contains discussion for statements. time-sensitive that certain the included of may language call. this actual found Also, can on to to involves is GAAP refer forward-looking at in included that of company risk The from website the announcing that, and factors date this in reconciliations non-GAAP may this today has quarter in and supplemental harbor the results safe measures Please release, safe which www.eastgroup.net. call the as company's information, subject projected. future of only those company's content cause differ to

Marshall Loeb

Thanks, Kina.

at as X.X million number a cycle, in a And square supply, remained a box markets, Jacksonville, to per check development long-term The which operating per came of better. institutional leased deliveries over and specifically, first quarter XX.X% quarter result, largest and were construction. above we through it's first a positive statistics our achieving X%, occupied of Francisco these XXXX, demonstrated leased over controlled. a institutionally solid Angeles, bay Supply, environment or strong specific number of continued continuation on and focused down through XXXX markets. disciplined rising the were predominantly positive along compared Drilling the FFO prior quarters as our And big guidance, quarter-end, occupancy control, our and metrics, have including increase their over the launched is largely end, Rents year share In create XX% each further XX market second is an [indiscernible] trend as and into this feet, At up byproduct Los on better, current XX% square year XX.X% been of positive share value XX% Orlando, in NOI the and San truly another and occupancy, this to has new consecutive Dallas, seeing a higher industrial from marks we pricing on trend. as X.X quarter XX% supply feet continue pressure upward million compared Houston, results of with of XX roughly consecutive or almost leased. approximately in of from supply, market cash quarter. markets, The construction GAAP acquisitions. and Overall, early basis in with add Funds markets XX% steadily major XX% remains shallow last and rise bear rents. rents quarter to industrial strength as a occupancy, such store our trends. saw And Charlotte, same value operations with strengthening was our EastGroup's increase basis. spreads. in is allowing Tampa, us on disciplined our ground out, re-leasing quarters quarter

First first up XX.X%, occupancy and from average quarter a points XX was GAAP quarterly NOI basis rose XXXX. basis on same-property quarter X.X%

phases over average risk-adjusted we buildings business developments as part, $XX Given are as create an We we below distribution view our an believe, the completed At whereas market to competitive premium in investment effectively rate path target and was attractive our for March return existing investment cap our estimate majority and cap our the Xs development acquisition we within a projected XX, X%, to continuing million see the we further, market markets. the XXX basis expensive risk market, is compression cap our properties rate on manage pipeline the points additional in to value. rates. intensely development for of be return projected we're development and low minimum the

of began million two of totaling XXX% we leased. investment the quarter the and first three portfolio into buildings During we an at feet buildings, XX construction coming total XXX,XXX square feet totaling XXX,XXX with a pipeline out million of transferred projected approximately on investment XX a with square then

cities, March with is XX, of million of feet containing cost pipeline $XXX projected As development square our million, XX XX a X in which leased. projects of consisted XX%

development project X.X of million we square XXXX, XXX million and For starts feet.

a things San One development within risk our greater is diversity Antonio. pipeline. you'll and our of Dallas, about number odds reduces specifically, grow excited the continue the This see markets. I’m parks also development year Charlotte, while to this places us More like Orlando raising in development of successful

ground Phoenix broke restarted Houston time since we in first recently mid-XXXX, and the in development XXXX. Additionally, for

third of of I’m Austin we stand Atlanta. as also in projected pipeline the our final so is year. this The stool and active markets about in excited developments and such Miami, terms new early leg we in have where

our what As a results next reminder, start. drive leasing our are

are starts development startups those raising wielded our hoped. not and projected for approval XX separate So, as we it's gun is the now XX XXX leasing have that we’re while of the and progressing million pleased consist or projections of seven in projects the

sold XX.X portfolio portfolio for Tampa XX in at now assets. upgraded X.X of market elsewhere. a allocation our These dispositions In for service our Houston sold roughly the [ph] non-US project improved foot portfolio, of older a we Park ’XX we updated review edge Brent and World topics, and we [ph] developed we million. allowed upgrade freed our half million. XXX,XXX to first will end million variety March, including of as the sold Houston of capital quarter to quality a in on building guidance. seven several financial saw quality Group Earlier the foot, Commerce square non-strategic Park XX,XXX Houston the by building reinvest World of our square quarter street in reload us and quarter X.X first for land sales finally Our center up

Brent Wood

morning. Good

to on first an of development at quarter net the portfolio. private The of interest closed X.X%, converting add the unsecured at year notes to the positive was quarter In basis increase March last continual for to decrease year, XX benefited XXXX per acquisitions. $X.XX $X.XX an of operating results continued in the placement the exceeded debt operating capitalization senior well-leased on $XXX,XXX. compared Debt-to-total same-property with have million performance per the to income increase a the the upper be operating the of term date $X.XX of we stock midpoint quarter prior year. non-recurring our approximately Floating $X.XX quarter and range of to fixed quarter for due bank market increase rate guidance to of estimated existing rate $X.XX maturity million $X.XX amendment was in impact into creating in quarter of market from share per at to X.X% share April, program points interest rate of of FFO XX.X%. savings unsecured Operations debt. to share guidance properties unchanged. second XX-year portfolio, X.XX%. the to annual of of under and from XX XX end. per attributable conversion midpoint of amounted continuous midpoints value our XX.X respectively, to our million year. compared $X.XX the is is strong range the price The variable We guidance of same of share see and only guidance of end $X.XX target. sequential to FFO of for increase in rate to from $X.XX the our of below an higher capital Those our that X% of fixed February, an effective of XX.X% average long-term closed a the on common the debt share. the gains by XX the an total the fixed X.X% million quarter first second and quarter, for represent long-term along an primarily the rate $XX.XX to issued reduced for in From FFO equity well perspective, per we first loan In at capitalization at XX

In acquisitions initial Our first continuing in growth that same-store XXXX continue quarter the some momentum results the summary, guidance. leasing and the optimism X.X% throughout the bunch of an Other our notable along for comprised continued with and assumption increase assumptions best expectations year. with metrics experienced year, average XX an basis combined reducing million financial of to is result we the outperforming each. and the our This XX from guidance of points quarterly to the of quarter first include XX we by for of that million anticipate both dispositions revisions remainder have our be of XXXX. results for guidance produced

some Now Marshall will comments. make final

Marshall Loeb

our as markets. we're capitalizing future. questions. current investing healthy and opportunities we pursue manage this while environment. strong geographically sheet our the are And about improving continue this balance the Thanks, also our take of we is solid opportunities, on property diversifying mix continue fundamentals now strong, And balance will in of with team optimistic We effective operating to these markets operating our we metrics. portfolio. of majority Industrial improving strategy, continually to a and our Based Brent. vast has maintaining strategy pursuing The view committed improving combination our our and while in, strength, an risk sheet on us upgrading any

Operator

And Please America question of Jamie Lynch. go Feldman from [Operator our Bank Instructions]. ahead. first with comes Merrill

Jamie Feldman

But guidance. to supply me hoping was take the and for a your risk at what maintained up am maybe last about guidance, question starts back and I in to you it answering I I that on I quarter, would focus just you think from initial if development all? wrong. the for just holding you is talk it correct number curious bump So,

Marshall Loeb

into question. really million as guess our subdivision, volume lot out analogy, building and to in guidance, it’s leases, a start Thanks, our I Jamie, a the you dollar one. and details Yes. one We using picture like XXX building maintained an if have I big guys is [indiscernible] next good am almost dig development we the of

by driven corporate. lot by So, was the a it two it's of really by revenue leasing and driven that

We have, this our XX on volume starts four starting little projected but for soon on we year volumes, are approval were more. the our either we or we and the bit have first starts leasing of quarter and we’ve a dollar based light started

multi-tenants us kinds they’re where anecdotally buildings for good, the all buildings, wood build consistently where early we buildings, our Usually us. about that call of so of hearing for So and internal seeing we’re our number more state higher XX our a pre-lease million own running of through demand we on through different will had expansions. just but about also knock we’re feel we’re is in which pretty get more leasing preleases seven more we three XXX on

of Oak we’re just Creek number like tenant spaces number outgrown in starting the of Orlando. existing, our X a has an really in leased Chamberlin and within So, our who accommodating last or existing developments Tucson an their are we’ve that and space a Tampa building

of in read, numbers cautiously we currently really is Atlanta Atlanta there optimistic some of would so fit I in million market see the million absorbed typically which XX -- much food of in and last what those absorptions million million Atlanta about in will million upfront is like under there in that XX both statistics and year of with of and within stick the of XX the where million say XX starts the they million we’ll of volume terms of that feet. XXX most the the that but in we awful So construction economy is where XX reading that being X but there like the Atlanta. that in see lot the square construction hangs large supply in in I the markets each -- XX that is the we of are in we an terms if buildings average later been is XXX,XXX of over has and in year there of chain be building then places square there Dallas is feet under and above Atlanta was built also in statistic we’ll or a South

we XX,XXX ground an broke So, just on building.

a the hotel be of and are So, as it street a well the may North built we in lot construction in down cases South Atlanta being is Atlanta. in and

see are where at about it of we do is sites what supply pretty and construction good we up, so So, going today much being and prices to with alarm but struggle thankfully find we keeping pacing supply rents feel is is point [ph]. hopefully land about aren’t are boxed

Jamie Feldman

is the guess those think the know in keep and this And portfolio Okay. you the East hearing most kind well? cycles, tenants I forward you’ll demand portfolio than you along have we different I cycle. structural I you types the driving mean a business of picture are is group question e-commerce be if and is lines the going big in portfolio so that think about mean do of here on going past in going leasing your there with do shift as within much to

Marshall Loeb

that ago certainly to demand tenants our as take away. bigger within customers average mile this building trend had quarter and more bit a uses are XX so The size one I towards really mile there, a we Best tenants, view get into of really will the their I but see mean in supplemented been we usage, towards shift tenant leases don’t a with Carolina. little North us. years or see still and the whole some the from development. see stores We years much larger was last the people is especially a thankfully we our mid-XXs still it's if it that Buy e-commerce, last it's in signed ago five we

bit are there. I could So, stores physical e-commerce you a little guess say

that So, rather it's uses seeing more the than supplementing we’re replacing.

Operator

Sandler Alexander go O'Neill. from comes ahead. question next with Your Goldfarb Please

Alexander Goldfarb

few here. quick just questions a Marshall, Morning

increased was guidance, first to very your yet same street the you have a wouldn't for for seem store year that why increased be either go guidance is and pretty would it beat had to you to throughout beat telegraph more let's guidance the quarter, range up was or guys the much healthy guys this or conservatism, NOI, so year. or beat increase just matched in the continued usual, guidance increases just you expectations to First the the your will the what what just

expect be would we shouldn't what a So, bigger offsets why for number.

Marshall Loeb

our you’re nickel a of did for we on we did as after remaining I like the year quarters were average based XX.X%. mean over raise We guidance three occupancy and you added feel that, balance and the hope we right. penny so is said I

we you conservative. our in months we or can quarter being right. I and built year that told So I that for I us. that's you year, so next you're the say feel a from and were and and best for number are there now we there too stays We it's first better like but pretty reasonable Hoping the healthy the numbers rational guess like uncertainties yet hope six feel hope economy

Brent Wood

you’re ahead It other nonrecurring we Yeah, it little beat, mentioned it was in budgets clear leasing the when of sets say occupied it same-store it's just different dealing of year schedule, hard get yourself it than to have when the well-balanced was that range bucket aggressive that was two a to we more rest but of three a that. sets you're XX% leased for in was also make a contribution. with XX.X% of development was was the and really lot to

are just our necessarily like that side. but point outperform we we've the that the that said, to to said, and the not that would are for our through rest we Marshall that year, is these always have So, driving of hope assumptions midpoint can upside as stage good us be then goal, if we the budget sets the to continue out our

Alexander Goldfarb

loss finally if I’m just question you you Okay was the to guess going Barbara is, on to always can what like one expected backfill guys on the same-store backfill seems often marks going is to timing a so standalone NOI in then which red tenant, second down be why comment that and in then the Santa Barbara to Santa are market. and

guys would versus in cap capital go sort assets some reinvest anyway. long-term provide expand presumably your in with want there accretive Southern low to to rate view California those you where and to California just So of for expand the holding you that would to really curious

just can you if that So, two-parter. take

Brent Wood

You’re downsized tough nicely. correct after a Thankfully Austin running submarket to bankrupt and during of both the getting still we’re that not did the year last another. they by business and we activities had be just even and front airport them good to

hope that So, you good than during that that XX know, to they [indiscernible] you activity. for moved story that didn’t we own the feet built in asset the it. to know long-term plus a are would We portfolio hopeful. buildings to in happy the that to of are balance partner today we rates XX,XXX they I buildings. to ’XX semi-office are and the leasing that survive had where of our had and Santa R&D four Southern so said cost the end the by then long-term industrial out there remember given the of next But prospect appreciate and can parcels building building have in backfill we is, is today remember when leased go XX interest XX% good having bought from And really quarter buildings of on Barbara at, long-term we the still right, year, I me had industrial XXXX history of our multitenant yields are in building in out a came of more horizon. the in building, lot. it leasing probably our an looking long-term part manager you The two R&D I last is we some their address in week there are been it semi-office building. for four as two activity R&D makes large two, Barbara office. it years another that tenant Santa I out Leases had that more out asset getting space, the trade Austin a and in tenant are R&D are selling for like really just may look way comes a tricky a you the down the don't and who buildings you cost leasing of we is three was back as that turning suburban cap R&D year manager separate a first have Barbara long can a I we single that to building Santa here in want is the California the long-term with at market that it we Barbara,

You correct. are

Operator

And question go Citi. Emmanuel Korchman from our comes Please next with ahead.

Emmanuel Korchman

Good morning, decline an what in question. of driving those of the to from pace Alex's your Are on follow-up guidance to Maybe sort everyone. XQ? occupancy XQ same vacancies,

Marshall Loeb

moving Yes, the the if there the parts vacant when a it’s -- end the a Atlanta in developer have -- remember bit little XX year of center they portfolio of after of -- and good certificate roll question buildings progress you got some the months is you four in at that asked, occupancy.

So, existing Tucson tenant. construction In of up are some for portfolio. XXX,XXX-foot an in finishing quarter up rolls we into our that second wrapping

going they're relocate. to So,

about tenants parts. again just get feet can another that. been get take kind The So, XXX,XXX that some back, we of moving but square will released, thinking will of we has it, existing great about XX% expansion building story

We we We to good some a know are parts Las in little XXX,XXX have and tenant a backfill in Vegas. losing prospect so over it's feet. it, moving a one Jacksonville

some putting and around our a do tenants XX%, little field part as like each fills cube system backfill ESFR mentioned as the in the move that of of it warehouses. occupied think space I are and in at earlier we we sprinkler guys any XX% little time one tricky the bit Rubik's of bit Brent we

paint tenant. lose lose the two the space get for months occupancy You ready tenants, you and next as you carpet to three the for and

tenants of year. quarter, will second a points, We our but of little around as raised parts just actually moving we move annual little bounce then during acquired the within vacancy the XX bit bit occupancy back we by portfolio. a and So, basis

Emmanuel Korchman

the on finally guys focus of And looks that I of less understand on given how for out us. discuss one much detail the detail have disclosure, now the you that past could and you're trends market, giving more as Houston just considerations but you giving like but package then as sort going it than maybe not us, have are pulled still maybe the and you in

Brent Wood

Sure.

Marshall Loeb

explain I in our low Houston, started years and Sure. we we that are about XXs play. will go oil several although that do in the our rising is our Houston Houston don’t the like high of stable they thankfully okay when It’s going the in portfolio reverse logic, also we and order. ‘XX really portfolio Maybe -- much largest into now our low good late market, XXs more with still I for disclosure With talk teens, think prices from will would in people I’ll market within the felt downturn question, it and in we that drop EastGroup and our smaller portfolio. every much to

are number some the not, the at we discussed end they second two, rate natural Dallas. was is in where it XXXX our and we we make was in market number And where any to The country, economy to as I’ve that phase so our construction the growth new the at the supplement year in at really a the vacant logic a Southeast heard of or half Valley more added were lower of typically look drop in people, has stats page is which of struggling take changes Houston and markets. couple a of moving, than couple throw XX,XXX times Dallas rate the XXX,XXX a Over So now. it’s X.X% expand Atlanta there Houston a we’ve it for almost terms in second the time is [indiscernible] internally. which like a from where you to the and to then is the vacancy a is the of actually major stopped is of like people of tenants different people falling submarket brokers Houston being talked word recovery highest and

So, several have Houston, we of restart so on we and years off much but activity was optimistic are what building great comfortable Houston. ago see good we feel development there. our we in that it’s to about and development It pipeline shut

So, they keep and to we start it’s you. Houston throwing moment. numbers for at next are Overall, about think like market recovering quarter and feel falling in and going But the two. feel mix stop we flat good the accelerating here probably or

Operator

question Eric Green next our Frankel comes with ahead. go from Street Advisors. And Please

Eric Frankel

through you increased you points I am same-store guidance XXX our was to Can forecasting just are just walk how how your nearly business? trying one just quarter? by after guys understand basis

Marshall Loeb

terms Yes, build first the [indiscernible] increased looking I news least into I that our there that the at digits just jump obviously it year quarter increase or and had our [biased] that achieved then of here in have NOIs mean markets will I in it, really eight the am we looking good am XX as about six it for at there. I of was in at numbers.

in quarter depth the the all based year that a in I as tweak combination made the A changes just and revisited quarter. field lot different again markets that our up combination is just resulted we add it going So, The in lease, news ticked optimism as A a good it budgets was that actuals of first the of this wasn’t to that wasn’t past as was wide the continued we nice speaks mentioned it It through of together it raise. a I a resulted it increase. market, think and

Eric Frankel

you gains, clarify quickly. just non-recurring really $X.XX of those just were? And Okay. The can what

Marshall Loeb

had older parcel we an we a that of small non-recurring clearly was gain. sold which sale land [indiscernible] It our was southeast of outside a for

and was a I had that years XX interest larger think in a personal of $XX,XXX, king sold airplane. we've that was over portion we for now a $XX,XXX

thing just so, And income accounting plane we so the other us one-time ways properties. we anymore around we ask that that in that the is country working line get our partnership above above just expense had see that saw that's to there. the line the We the to to wasn't sold better and for for

Eric Frankel

I to job or assets selling guess be sell years. be seems desire did the your much the noncore and next that probably might consider you it so then may your portfolio few you call finally, well. to probably non-core can clarify pretty how company would And

Marshall Loeb

harder job as of that to don’t as to should think get properties always our produce I it's quantify, our portfolio be and probably Sure, viewed part we the portfolio of older have get and that and should thinking just always been, occupancy, average not we terms future. increases rental of that about what metrics our that [indiscernible] high are in lease in above been portfolio we've selling has maybe

its seven XXXX building the center, the of one It in we’ve first -- always it a done in we should service was acquired lot that now. XXXX, So, the probably the we better Houston. portfolio, we a over kind in land of a of listing building was XX-year-old just constrained, coming listed we’re pruning XX like it a in be was XX-year-old XX years market that's in more side, that's to in same side but for us lot thing Phoenix west where the east properties to building again of Tampa Houston that than old of Phoenix Southwest just

to when like kind to fairly industrial position it new got I to stability. done this market So, a think great recently take in would or side. demand so new time much it there presented they carpet asset and never there's paint, for we as core It's out you're in really industrial Phoenix like stable

our how of and and as assets probably move kind own what the ahead do it always a cannot pretty in reasonable and thinking XX three projections, to again we this do that's two and those million go or market. you do run not downturn job, We want to I have year to rate next our in be

Operator

Our from John next comes Stifel. Please question Guinee with go ahead.

John Guinee

Thank questions. you, three quick

using are plane. new a did or you First, you Air get Southwest

in if visits of to because summer Second, your much are a coming tenants Barbara serious Santa are of them keep is the the or question relationships is three how to all new tenant you it existing asset look at site the tenants. need different development how your you much and do then important and from four

Marshall Loeb

We do not own an airplane.

you we make Santa spending of the look loan If Yes, a part chairman into our want year already to and there. will have personal we it. Barbara deal, us

a up the have space list more through case goes which right them it's the have we their odds it’s your of in tenant need the good town. asset I a lowers It development amount Santa the we manager build them of cases five a prefers regularly Charlotte existing place and ability Tucson, lease now, edge work or that and XX% our many and have in Houston tear still years our their in the on will I part and lease buildings there business X liked risk. probably building up these of one left the not as greater larger where on come a are question, think us about in the run good to in they XX that picking on and a asset on you Tampa to and up from Barbara it in Tucson they can were a tenants, then basically to we through lease. for one work the of program, one, big expansions of was will And building one why and us in fair the additional versus So longer-term kind few typically like and tenants a but my that’s last reasons where majority above existing

and probably the many the than in the we of great prior we're XX that’s economy the drives demand expansions like out seeing shows a the game are not health we zero-sum our because of one and more time, did over us the of last of the really that’s best at that XX market. So, months tenant the pulling peers

Operator

next go Craig our comes KeyBanc. with question from Please ahead. Mailman And

Unidentified Analyst

in that follow was earlier with growth the up that guidance I guidance. here [indiscernible] is an came to factor? down I noticed Craig. This same on just NOI debt bad cash regarding question store a expense want

Marshall Loeb

which baked of that We into factor. not kept close reserve quarter. had to tenant before that bad debt reserve store, still XXX. remaining had our the but had were Likely XXX three the to debt bad our for the have specific reserves don’t is the million. at was we same we actually We we XXX a not We for first closer anymore XX,XXX We XXX,XXX, so have quarters.

when So, our you got we that but XXXX someone then XXX,XXX know look does and like quarter it's And to and we don’t given quarter. conservative feet not you square to say a are size to hard go XXXX [indiscernible] reject could and swing something. back tenant to have customers back

in wasn’t was same-store, the answer same-store in it to So, guidance. upward your it not question the

Unidentified Analyst

markets, And Francisco, including spreads then some rent San in meaningful several L.A. you had

those leases? individual Fort Myers, those Are markets? was Dallas. representatives like the of Or

Marshall Loeb

even more are growing like through and a way we was the -- and now our know always one where I Laura, we look Fort also County quarter Good number can't repurposed. And always get just always question year-to-date with high are size given and are could there things really this With markets just it's working where negative we typically prices I Myers tight, actually Coast our in the Area are Orange sample seeing buildings County Bay in. we to like the we at and the of Orange was rent negative Dallas developments. meaningful new our challenges which growth West down thought I industrial construction being because them. rising, size. were and things supply that's supply

and just out we bit. project to surprises bid pricing So down a little put us comes construction every the

that tight dilemma market, pressure rents else the prices a continue is on put because of the everybody will to supply. to rising in construction and rising adding a has land with same new as think in upward and are I So, we terms

as catch. well. that's So, highest over of we the are, at within Florida least Myers at percentage year but Same those of population in the terms think, of some state base I last smaller Fort good growth the

Operator

comes Blaine Heck next our Fargo. with question from Wells And

Blaine Heck

Hey, guys. Good morning.

there up at I but obviously development where back back for to think the you ready you are monetized? amount prospects have portfolio one still the doing Just could of you the given tick just on guys to what has Are follow land are more the the up dramatically. guys Houston, know point you bounced project there? be

Marshall Loeb

northwest building. we way, our comfortable were ease sub-market building knock We’ll better thought that that on again the what stabilize building was, one XX,XXX We feel did and better we really and market's wood, no later.

We have a even had Houston or some really had pre-lease near World leased building significantly leased and opportunities we out more that building. towards fully if

vacancy was maybe back, way is we or or a over up oversupply ahead X.X%. nicely. at north speed back comes But that. come down the the sub there in market it pretty hopefully feels but It’s like where we So, and Houston just right a it may market land towards World two quarter X% north hopefully that at work now, if especially rates our will

So, to that the time first and see and for if oil was tenants contracts down people with quarter out coming keeps other this expanding looking where are gas and we heard companies that space. which nice thing the for

in an was demand gas oil hearing companies. of in for chasing started prospects gas oil couple growth we our out industry the quite and that really has that contracts always -- and Houston, So and a seen been with XPL tenant

they they market they the logistics really first thought, things news, will companies away need fix So the bad it good is they the a in that quickly they contracts need can our XX And the lost quickly. that’s the need and is space they in back days when up. those if space, news in contracts, these months, give they’ll I other few guys because shrank belief or be when went will side but

Blaine Heck

then and helpful. and cap any us on expected year either the that’s And assumptions for guys acquisitions whether any give rate you you for specific side? can dispositions are targeting Okay, markets your

Marshall Loeb

than I hard, been all on based rates based had handful guidance, [indiscernible] single be mean we sold as this of deals will broker be thinking I will nice, a have they blend. us every to really pricing. we’ve something seems now I out right X. leased and bit And modeled a the fully value a once the little pricing. core being out really then stretch -- better acquisition could stretch there, we’re gets tougher. X.X meeting as and are because It’s is going last It’s cap their exceed were everything just like think in target I what to the we broker is had Acquisitions earmarked been said, what see above

two. -- hopefully find So, a or are we we building can

it will the not We a we’ll in pursuing weeks, Southern that’s million things if we’ve few XX a hopefully best it’s at the big and that something sub range. be next X% have that been buy but here And now X. the and portion small got project fully is leased of in where a close around we project California

Brent Wood

point out a the higher did our are from the just the perspective XX a a on spread there. at then a do we at about where million putting spread quality. basis this XX we But from And point have selling on and and of same-sales money buying have that’s reflection bottom budget we versus higher

in would XX We we We -- a XX-basis not million. there would are even. it's we’ve assumed that go trade for some purposes out that into assume would point built not budget

Operator

Mizuho Securities. And with go Rich next question Anderson ahead. Please our comes from

Rich Anderson

morning Thanks. Good folks.

of kind question just So me. for one

that using your up I'm could lot of lot of respond the it you terms a part you one in but curious of in the parts as You space favor, and parts I if a first. moving amount is continued you're activity. seeing that and kind they're a guess lot to mentioned that tenants moving still had of generally moving of of if release or down moving

Marshall Loeb

into We we of that expanded tenant and company the had up this of that’s services is a auto move public markets in third and really walk where details. Tampa space and XX-year into in outside can the moving where and space, need good XXX tenant -- they in of Generally Even and supplier shows in just we auto is a it a parts in feet to expanded I we then parts food are I XXX-foot the relationship we Arizona developments supplier. and was had XXX building. the if that some our that new question XXX,XXX-foot double Tucson backfill you’re mean you their have through

that airport adjacent. there are are have leased two better commerce center their that So really the broker prospects little a one about for year square footage. expansions. from trifecta that's with And we buildings a our I’ve seen there tenants that us feel coming and Charlotte, all XX best whether we building had tenant never the buildings made are tree had bit later fully what expanded existing

Rich Anderson

productive So, then and in XX,XXX is the trickles question are you're causing process feet become to the rents well. in more utilization mentioned tenant thinking number that imagine basis of average users rising their you the up over also as square I time size.

Marshall Loeb

edge average some will size tenant on had of our grow our of big be We won't average. the we sold of are our kind do but grow, mid it and XX,XXX-foot of about think size we a our overtime. like more the all just tenants centers older logistics will are average that lot peers XXs I tenants I as evolve in and to Houston small think building do that town, as the of building some I Tampa sold think

Operator

go ISI. question Simone Rob from next our with And comes ahead. Please Evercore

Rob Simone

one I to the range the just questions revised other answered. the have there items guess the me of guys know guidance. I had you been in Lot in on $X.XX for XXX kind I the one or any one-time have of included follow-up quick XXX. timer,

size to to real was trying core Just raise what estate. attributable the up just

Marshall Loeb

would that other I in register guidance anything the other don't would our market There that landfill the is there have not, had something but we again, a actual income is midpoint would the as we the throughout arises. occur and were, few that we our generally portfolio we that quarter. say selling valid into just we have were for of describe to parcels first If than that in

Operator

there appears closing at over questions ahead speakers and to go back for would it the over this more And like any are remarks. phone it no to I hand the time,

Marshall Loeb

the next forward for in you at your we time. everyone. we of guess, NAREIT, and Thanks, everyone event. appreciate questions follow we seeing EastGroup. certainly any Thank you If interest Again, available have look I up your to many in are

Marshall Loeb

Thank you.

Operator

you program. your today's participation. for conclude does This Thank

at disconnect time. may any You

EastGroup Properties (EGP) 20 Apr 182018 Q1 Earnings call transcript