EastGroup Properties (EGP) 1 May 202020 Q1 Earnings call transcript

Company Profile

Participants

Marshall Loeb	President and CEO
Brent Wood	CFO
Keena Frazier	Director, Leasing Statistics
Jamie Feldman	Bank of America
Alexander Goldfarb	Piper Sandler
Manny Korchman	Citi
Bill Crow	Raymond James
Jason Green	Evercore
Craig Mailman	KeyBanc Capital
Eric Frankel	Green Street Advisors
Michael Carroll	RBC Capital Markets
Rich Anderson	SMBC
Blaine Heck	Wells Fargo

Call transcript

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Operator

Good morning, and welcome to the EastGroup Properties' First Quarter 2020 Earnings Conference Call. Currently, all phone lines are in a listen-only mode. Later there will be an opportunity to ask questions during the question-and-answer session [Operator Instructions]. Please be advised today's program may be recorded. It is now my pleasure to turn the program over to Marshall Loeb, President and CEO.

Marshall Loeb

morning. Good calling first for call. XXXX for in thanks quarter our conference And

make ask always, Brent following the participating we'll interest. appreciate disclaimer. call. statements, our since As your also Wood, we to you that listen CFO, is And forward-looking the we on

Keena Frazier

on the our PNOI a further press defined and these of most Please for as with page our earnings in of periodic to Web measures results. both Please and to Investor to conference the our Regulation reconciliation site of reports financial information measures, definitions our filed are use financial supplement our that and that today will regarding them our G. FFO furnished note to financial available or non-GAAP recent non-GAAP and GAAP SEC, contain release, call our such and measures as refer

this Securities some defined XXXX, the that The note and also Litigation Private of Reform Act the Securities statements Securities safe within as of Please are under XXXX. Exchange and XXXX harbor during forward-looking the statements of Act Act call

release to factors, in refer and future that We in may pandemic coronavirus or those Such our unknown results duty with whether statements to directly statements differ SEC uncertainties of and a materially. them the known ongoing including these to press new undertake the as cause risks, of along and other and outbreak risk filings. indirectly related to certain events earnings the made actual update our remarks no of result as or of today, actual Forward-looking information, are we involve otherwise. factors

Marshall Loeb

present and are This it and everyone you our as to most done for doing I script is a quickly out our little touches I've past, and job operating morning, of and a and their time. your Thanks the way. great the transitioning Christmas thank by making We the start remotely. working like They've writing on Keena. it want atypical a strategy future, written bit the harm's so thanking while hope well families feel Carol. Good team.

I'll stats to another of operations This as have we as quarter touch guidance compared consecutive marks compared year X.X% last team the share prior producing from such quarter, XXth coming year. higher FFO on first performance in of quarter first this quarter. above briefly, funds strong per to quarters

XX.X%, Our leaving end. and averaging us occupied leased quarterly XX.X% was occupancy at XX.X% strong quarter

GAAP We also set re-leasing and quarterly a spreads XX.X% cash. record with of XX.X%

open reminder it years at quarter in a Our ended years. generally today steady strategy grateful ago we well works leased. XX.X% and served over me. has that realized does economy, first I'm a the fall the to quarter, it's certainly shareholders our great feels But our

three operating During strategies. XXXX, we'll different likely have

during First and the one last for quarter of today during later cycle, recovery. being lockdown the one end the the

shifted our As we expansions accommodating flow. from cash maintaining and focus quarantine, entered growth, and to the occupancy

XXXX. of thank of Brent drawn since finance terms the and and highest I'll availability the our of history, the company's line liquidity, quarter team our on end In have as one percentages we lowest on and line our

economic reopens expecting uncertainty, the we're tenants until retention and help economic rates, economy the can't Given simply higher needing shutdown. the who survive some tenants

with PPP understanding hours those banking assisted tenants of asked teams help long with been gain and to particular loans Our we're obtaining in as have them for asset working relationships. We've an situation. each needed

are two our me things that quality an While comfort the portfolio. give this easy won't task, be of

trust has. and serve as for our Our experience tenants’ our and locations the properties infill team essential key businesses,

the in EastGroup. While hard to terms calculate at line, team tenure has our bottom a of together of lot

have We one not That's won't experience and in a to uncertain rocky markets, our that's the times. it's most XX That's XX say property Within eight properties downturn. and relationships a valuable of experience know trust above, importantly, road accounting, average but and know is built years. built the For be term teamwork, management. we've another. We relationships. lot tenant to years potholes and most example, our at the and and VP weather years level tenure long are for been

and To-date, and for we've collected processed. this proceeds XX% loan as modestly of rise April to are we rent expect SBA received percent payments

but decline also reopens. about We The XXX when fast more of will speak later by to our points. debt will We impact Brent simply that with be increased an expect and normal. how points basis than so economy economic be everyone challenging. and it update also XXX occupancy we revision, the in our clarity is months projections reopens less else guidance cumulative, basis unknown bad along have

reopens the these we projections collect economy we'll update accordingly. As and rents,

and with as collect and our tenants diversified goal tenants top working allows. those rent have accommodating to rents. the in really we business soon for X.X% most role Thankfully, is as of accounting Our XX their our with rent sector, only funds

are by demand. starts pulled stated we’ve our As market development before,

reflect looking reduced really we quarter in what phase. activity. add conversations dispositions we're not and the shutdown, key we're that to new other acquisitions, is that same We in projecting underway. next spec as and new our at first pre-lease We're view market we the goals developments. liquidity with operations and than line. value maximizing reach hand, tenants until working Other starts also With forecasting are projected words, In starts not

including And updated of financial review guidance. our a now, topics, Brent, variety will XXXX

Brent Wood

Thanks, Marshall and good morning.

of results prior interrupt share current of estimate. record first Our collections that Unfortunately, will our pandemic. reflect share, rent capital of assumption COVID-XX my the our a overall momentum. request increase portfolio met result of I continue range $X.XX, high end FFO deferment center to of guidance status, lower will the to FFO compared at our per our as first per quarter and around to comments per the quarter strong XXXX midpoint of our turbulence share represented of setting and the the quarter economic changes X.X%. $X.XX first and performance

strong closed million seven in with strength our $XX of activity, million loans and of per unsecured issued equity has already we on entering at of this share, price $XXX quarter, period conservative average of a of fixed first the balance That X.XX%. a us sheet, our economic uncertainty. an combined placed position year interest steady rate During and with $XXX

In its fact, percentages history past the EastGroup revolver in XX, at most and available over strong the capital the the of March least in company, of had one the decade.

times. XX.X%, charge Our to is fixed market debt over capitalization interest total and times and ratios X.X ratio our debt-to-EBITDA X coverage are is

rent Our were quarter-end. at strong equally collections

or wasn't either doubtful less that We of X% or account. as have reserved rent than a earlier March deposits by security outstanding covered

XX% far some form requested April, rent tenants date and have As have XX% deferment. of collected we our rents for of of thus to

We represent have April arrangements rents. X.X% into thus five only deferral entered written far that of

stages have request of of on We represent denied approximately are XX% in consideration and the rents. half the XX%, which monthly over of

April such is the as the conclusions to there of available month data term. headwind. economic undeterminable. first near event for duration And very truly is little this that draw and The actual we the virus is encountered related definitive depth

we from or per degree distress in X.X% changing in and of increase XXXX. financial X.X% tenant FFO of share philosophy, lowered midpoint guidance some anticipate decrease by $X.XX to assumptions earnings our a $X.XX, However, leasing that over which resulted

economy. real approximately increase decrease income recession simply year. for who there experienced is uncollectible potential bad a able an acquisitions, of were average. Also million. aren't debt reserve will the those companies the estate to basis in notable of it Other tenant, from from operations, include bridge is unidentified and to assumption reserves we general $XXX,XXX remainder revisions equity like rather be to issuances Among XXX the any the note, reserve gap rent average $X.X the points in some dispositions of and that on not that assumption The what the XX.X% for specific for the is of during XX.X%, reopening which represents a changes to occupancy new of this removal great to

our the trends pre-pandemic strategy us that of market financial experience allowed the the will were multi-tenant optimistic new that term. Meanwhile, potential our of Sunbelt and term. to portfolios our through am our long I stream, were quality summary, benefit navigate near post-pandemic to directly with trends us team along we beneficial In

will comments. make Marshall Now some final

Marshall Loeb

past a as Brent. I'm of closing, want have quarter event. don't We we said wasn't our Thanks, years over In as economic now the few We that. just swan results. fear but supply much black either proud first our

teams as well. our event through through these as most economy and excited And have company worked And Our before. it's this work we’ll the while for stabilizes, different makes the me certainly EastGroup. that future

as along Sunbelt strategy are of our near the shoring reopen for will tenants and those Our strategy Meanwhile, years. S. last new consumer carrying with shopping industrial in the well changed, of open butter distribution growing the this team, increased meeting of the questions. now traditional we'll out have to and that few our we has our hearing Mexico, These trends companies are additional any of users result shopping mile U. about or a worked habits fast accelerating and operating our space manufacturing a has up and bread inventory, future. optimistic mix pandemic, e-commerce And Coming us continue habits. past and markets, markets.

Operator

we [Operator will Jamie from Feldman with Instructions] of America. Bank And our take first question

Jamie, mute is check Please again, function. open. Jamie open. the your line Your Feldman. line is Once

Jamie Feldman

Orlando and just I energy exposure, we're Houston about more markets? concerned Las bit So economy? about more market I small a talk tourism if I you across some of little with of of you for exposure the guess in maybe all seeing types of you can you're around a here. little X% of think with Vegas. even types markets probably of terms more with But just know could different color that's a give revenue. different the then

Marshall Loeb

into And the top our Houston. start bit Good all XX at buildings say start, we to Houston the on people a question, number too vacant, both few example, statistics probably a of of market five lot that which a touch is the higher throwing X.X% quarter properties market on little good square is first is construction, terms buildings. than and of, lot without on of then under for feet you roughly I'll much. mind for that, and news of million that’s globally typically for I'll that in likely a But portfolio. Maybe Houston. dig Kind non-competitive going typical is three try is ended maybe

X.X those about or that's square construction. pull what's under XX% million we feet of out, If about

today. spaces Houston southeast ended both atypical are just rolling. we're hit we out lot and an built a of it's leased the and But rolling our impacts. down gas leased with market and [Katy] where So being update box big in as getting little X.X% thankfully, Thankfully, markets quarter what's with XX.X% an in team, X.X% Thankfully XX.X% and with over under certainly larger oil we're or is not. of COVID,

made some month. we've in last headway So the

So we're in good shape there.

XX%. collections were April Our in rent Houston

So higher actually our portfolio today. than

that tenants that. are some of We are handful on it’s and have literally and loans SBA like working things about a the

we're had and uncertain is dropping probably, obviously our projections about of fourth a than and in So Houston us earlier below others quarter. XX% more this XX% year's little our NOI,

we'll as any would say know on Houston down. I as never never it have think guess So and exposure keep kind what bad on they fourth working usually they markets all I markets, it, good people the there typically of as Houston's people city But country. read three as you things in I probably, work are think the our all wiggling are But largest they're or tourism of are.

it's probably there in got little a Las hub and But you team little But and a Certainly an more kind mentioned long-term, a a Orlando It's market have really and it's migration than We've Orlando really same Vegas. there. tourism Vegas. activity market. great getting lot several coronavirus the bit Houston think a and the It's e-commerce and in oil manager of our strong but now hit we'll size as become we for It’s of resilient Florida. awfully markets Las the in the right gas. last years. had

and we We like and It's that we Disney, don't was Orlando convention we things not long-term much Orlando, more, that. in guess Wednesday that tourism is, have direct space, like guess foot things probably it that. really the a much XX,XXX Studios, all got signed market where it’s I where have I exposure that like lease it's a in just there. Orlando. in lease as Universal But we some,

Studios, moving reopening some talking capacity I at capacity believe there's saying what is governor heard, so And about XX% activity there we've XX% SeaWorld World, least there. talking certainly. may So it Universal then they're was and the be now Disney about, to

they fall So the fourth Las we've time working Vegas and hopefully bought close. slowed Thankfully, the but the or by are the strip buildings. slowly with really have early quarter of balance even expirations leased with XXXX. prospect those buildings those a completed, the with that had last reopening of no Vegas got and two two got on three Las in And for downturn, activity we on balance lease down

were they're they’ve all in -- saw, over again being Vegas like are. you held thankfully, least Las be But each So rolling. more long term. as We we markets I right now up those than happy of bigger wish to April, X% a little we under a XX% I'm little through leased more hit. well. with But in Houston at

probably And it than is so keep probably little -- and so at more and our markets we'll customers. challenged and this a typical, chipping are away with far working intuitive. but Those good

worse been sense than they've a actually Our is they're market today. the lot thinks

Jamie Feldman

what impacted what price prices? Speakers] versus your actually by percentage guess is on not Are oil base just is you I the out to break oil there tenant percentage [Multiple of the of Huston. able

Marshall Loeb

and at and fields a things estimated and three But through tricky to it and roughly related industry. or gas it some gets with it's some of looked oil went form fashion like We we the that. and little XX%

Operator

Alexander Piper with Sandler. [Operator Goldfarb will next go Instructions] We to

is open. line Your

Alexander Goldfarb

just it's on? hand as you bunch were assuming raised it. give XX% what's more tenants. people on bit ones impacted, that Just of of do color And it have need the and they I'm probably tenants you last continuing to the down think guessing some legs to Can part their mentioned it their tenants question deserving on there anyway, their raised who rent probably far rents? those and not merely think they of little reopen like be you Jamie's longer Or sounds get the could. going those people who where start are their get Brent, of just who you paying? a are to just a that that tenants are will and that businesses are because relief, as then and to on you But then back those they're are good actually are I'm the going if XX%.

Brent Wood

to maybe clarify Yes, that some.

mean some have term as some date XX% requested example. XX% tenants That got for requested We've of denied of see said that to have those to -- XX% we're rents is of those felt our of XX% in like won't the waiting those PPP April of just Certainly, information, which that background, fact, we're represented we of we've stage if they doesn't But We've some that up arrangement form their to we already relief. in with remaining requests, we're form doing grant many. hear additional So should. they additional putting that just short deferral for of hands they executed loans. some requests. maybe X%, X.X% means

simply So be watched. just is XX% to that means continuing that monitored and

is execute group up monitoring in in up And determined denied of some rents. be in certainly perhaps Some just of agreed to and of a denied percentage executed will wind that the will that yet XX% that and about or upon. be XX.X% XX% as will April wind of if April be again, they not of will to represented percentage but bucket. agreement only talking a wind agreement, smaller that watchlist, up they all the will bucket But the

bit. that clarifies that a little hopefully So

Alexander Goldfarb

actually lot space in But in I'm how do is guys or ground states goes, looking happen in the because are your transacting sure of how that on people guys even can business on far travel Google So near question buildings? diligence do that in -- of need second buildings versus to of be the how like in going you much on the a Or you done maybe virtually? just virtually? basically need transact person then are could or or of you much buy be person at to land, kick in person to And as due do fortunate basically, to like the resumption do starting not you Earth a term. you actually a through leasing of is depends could start leasing or are sell much exposures reopen. your lot warehouse can lot leasing you virtually and on resume

Marshall Loeb

really lot by the think driven I needed. be prospect it's tenant will of a of And not the but

usually it. whatever be or in we a do the is and that broker property certainly mean, the their else broker tenants I in and like we Orlando at shop has local, can You another all can and or virtual someone to have the things photos tours aerials and have least and and market in. Austin, working with that drone so -- then

it can done. be So

other space or not separate entrance. like like about shared the has I office and a that. restrooms building, common There's its a area, each think thing like type our I things product say own

be delivery, So the certainly companies kind the national things done what doors, it we've and a where lot they smaller know roll mile last out a can their of activity or as dock And seen remotely need they they our that. virtually. all many of and lot how of

I say you it’s new cookie have won't so cutter, format. a least kind resource like but So at opening of your it's

on use so done comfortable and brokerage be we’ve It can the all that. are pushing party how certainly it with been realize group, just third the with But they that. that we So depends virtually.

So abilities they virtual to up basically ramped and show their, their space. technology

and as last world certainly couple the like but it person be done of ideal it the as evolving a kind that things months model, so. traditional not and can certainly it's So where more be in lot the to seems

Operator

take will Citi. question next with from Manny our Korchman we And

Your line is open.

Manny Korchman

just of extensions the incorporating thinking you've relief granted the also that? the any maybe and the requested Marshall, And the commonalities that how of relief lease of relief? companies is go or flavor about new that just have terms what you're sort can both companies or you through

Marshall Loeb

It's can month relief, I'm of we Beach. year. have pay Typically of thinking April bag usually, most did. the they for Long port people been the LA you for a mix particular I balance the and the where of in May the of asked so part. and I'll were far one it's back have over and And near

there, plan needed them think in And in as goal up put them typically fast two we our again, to need, they want like failure. negotiated set months rents. half it as someone the and help we'll don't then slowdown a -- back for with can't up can. payment But ended giving some is So to China, you that collect they I we

So need it's need get for rent a there they I'm and been, in, we or here rush tenants my loan but we'll the it make In seen or later. a did we to lease. those year. going out I an been of some half withdrawn I Thankfully, adjust came month since change, relief for lease. of and saying been request It thankfully. original our that since termination request, have able not SBA month cases, out up thankfully may really It's haven't not income people my any their

process some And of still tenants. so with the that's in

We've impacted And of Vegas it's been that a business. are Las it’s the -- in mix kind bag, convention I'd type Orlando quickly. as I seen and them those usually be related, fairly between mentioned are that

is the for they move moves people military hold. the and military has Another put on tenant

for moves. years. reopens, that for qualified have and years you there done and there's some military supposedly get a think And backlog that they're are I once certainly it So and

think And back if their to, for of if need work be -- to what we're goal extending this again, the can some they back business us lease back will whole there. with And I or a also little two need pick going. time the half do will where bit And kind we some then If Brent… up end a but or that, be term by hopefully, and to gain here we be or month like things to two them. more will in or we'll that's months or for up but return. we So it year-end a you

Brent Wood

relief And look identically. at transportation and about globally, point our just wholesale We almost construction And into our about of Yes, XX%, and mirror I’d today tenants thing tenants those XX%. warehousing, out. XX% our literally percentages rent do segregate NAICS and request trade retail one related codes. around

more, tenants no of really jumps individual equally, are whole, tenant really our But specific portfolio maybe it So the one the all eerily up as impact. some while a shows quicker make percentages say as to tenants been similar base. pages, or us percentage there's for Marshall really there's those what impacting I'd said, are large certainly off saving that greater

that broad standpoint. So it's pretty been from

Operator

we Crow take Bill our question can And Raymond with from next James.

Your line is open.

Bill Crow

your where What of closed non-operating? they're percentage just current is portfolio

Brent Wood

the here that. few was probably small say it's or that have YMCA construction estimate, I’d markets I point. kind like have be under market markets a at got a I’d it's It may or there. say X,XXX those But were a very this and percentage. shows tenants be mean for the It's XX not most part, facility, the training some shutdowns We've something the small leased. by to tenants volleyball country. closed would when and of X%. I'd or thankfully, like And of hit out around under of been our the where

Marshall Loeb

are restrictions. our accessible have are works, be from Each common separate “open”. our Bill, Meaning its to really space. tenant own just put buildings on areas. we any perspective Thankfully, haven't all that, has And interior way industrial we clear of don't the

own judgment close say from had to step many our of in make this on going taking. with if we're it's really how steps standpoint, calls are open that their that. people But and So tenants each haven't many they're as that. or Obviously, It's communicating do X,XXX working thankfully really own our them. or we how to kind It's X,XXX customers. they're their really there, each we're to

Bill Crow

is changed hit How exposure local pause down XXXX, one home a button you dramatically. at of or the least. to back smaller your looks a that of like Certainly, going exposure is challenges it decent XXXX to companies, go we had was to to construction since has If had And then? business gone construction contractors, and builders. amount that

Marshall Loeb

a come Certainly, XXXX-XX. homebuilding it analogy, has really, the never was way I guess never back good in back

We exposure have there. some

lot and Although, things is like of and like industry consolidated. is contractors it business. that's pretty ours where HVAC essential I a maybe that, maybe the which think Things and a

you're and or Goodman Baker that's of reopen It's it's If as San categories in around Carrier But related August, to-date high-teens or directly Antonio Train in [HVAC] some has or and July residentially quoted as the and that we've there. even it's contractors it. XX% things certainly construction not jumped out.

just but some been rippled much in and its And second learned and think activity You're during in last be when a box markets even Fort wood to the in that is Myers we're was hard right, hit, homebuilders homes that's got at Myers. like, where yet, where today leased fairly and Fort I market Myers to Home downturn. of delivering hit just and Depot XXX% But yet. there is construction signed the we're us Fort plumbing hasn't homebuilding, which in are holding pre-leased knock But it downturn, the there'll with very the had and least on we it And activity homebuilding. with in way days expansion Again, kind well. or Ferguson the have really we hasn't last of XX arrive market a building really lease. category last that up felt good like that’s

Bill Crow

where some costs over it, missed there gains reverse One more, if on. opportunity is earlier move here the of an could last But and talked just the I I few could construction and years? this you about

Marshall Loeb

there's more is labor hearing we're available. What is

all of because I’m other on development costs hotels, other it, developers, little our less a the large square have $X was foot. all And of Although, but much think social brings all stopped. bit again, thing, then retail, of that construction the distancing types that to come guys saying has the put shell the spec and entertainment, efficient, the industrial $X really ones, the pretty construction everyone's down I the that per hold. going not And national on the

come but a the demand bit. for the there, to and continue button hit leave down think we to prices have little think pause next the a construction I seem that months I over two will to little come So three everybody probably have the bit down

And benefit back And some other than more sectors from we'll hope that. will industrial. able to be slowly I come

Operator

go next Green to And we will Jason Evercore. with

Your line is open.

Jason Green

lot I for are a anticipate attractive know And market sourced. acquisition opportunities starting do a liquidation you of see your of some local starting you're I'm locally to to transactions distress? event. owners looking any result some see if as a the curious of

Marshall Loeb

our to on are that teams the were some market. off just things like, that the We're you for keep still being, that we're list first the maybe of asked with or got of, we same part year, nearly the the So time the a of the the kind this market we’ve end deals at intensity if but not had, on the looking of year. market, pulled or of kind quietly at points

that will be there. I think

brokerage thankfully, know waiting for of or the is Although the powder far getting seeing. one comment was don't before the in I week, and space. of there's I'm of that groups industrial a strategy just has maybe talking a to And dry one sense kind national what And from this lot our no they're that. seen distress Their so it. call,

wait there's So we're little hopeful footing. but we'll firmer until a bit

I time or when there said paying, were tenants early be what the but we they the close we roll. it's We leased. markets the rent think are hard think and at maybe on know going to awfully about of that to the in one rent looking found it. you was by hard it which It's part hard our projects we to underwrite

footing our liquidity. a we keep we'd little tending get a to stock said things like we reopens, and maybe that like have let's -- kind eye higher price today of on And we've manage an And as to debt the so bit bit access and what economy we'll things. we little firmer

ownership. be the earlier distress it’s there development haven't local hopefully career bank because distress news back downside The our but things loan there partner local seen thing. maybe were even and as Brent Brent, to good were not the or is. institutional owned developer I stops is of with and we pretty And type we're they'll a be The so developer much now, or to-date quickly and when AEW some used but when, there's out Marshall, that the that is so it many everything's so way in with Clarion, Heitman Jason, of institutionally hopeful

Jason Green

And But earlier were then levels above at are debt significant equity financing? more your year. you I again, I you or these much in would just raising guess at it's back on a from focused now really stock these is the trading $XXX discount you realized that where prices, consider

Brent Wood

the we're back how both say at premium. would quarter execute always it at get NAV probably were. a metric we you to which for NAV us. at debt to saw, a a that X.XX, were we as we I did trade at do trading internal is and that's in most an to doesn't some first have and eye an and relative Yes, we to have fortunate it But look avenues. good we keep And certainly the was on We we're spot where looking at

the what we view if get and or lever if this that at just NAV, that's it's above stronger that the some point feel minimum the as So guidance pull, probably little a be show price would did environment then in least but certainly given Obviously, that get economy the just were and we time. to price available. strength, is you from at at we saw did

we it's it. in conservation like month from so, to But more, the at current our term. source just little but a a mode. most certainly would standpoint, for near over But last pricing, given getting or We're we're we attractive said been time, way. shape Marshall the whichever in pulled one's great more that look guidance that capital conceivable yes, We've capital

Operator

And we KeyBanc Craig our will question take from next Mailman with Capital.

line is Your open.

Craig Mailman

bit know you million spec here. a or and you whether you to I construction Marshall, starts of you little us guidance suit don't in additional of are built do detail could But more those want said a more kind to placeholder? the $XX on just have just give

Marshall Loeb

a came refer of be will are build a good you have, more ongoing three realistic. where lease seeing second, and typically suit, third, tenants tenant. probably I that back, If like quarter really sounds nothing more that that built fits and next, build suit spec year pre-lease, was, We’ve of a quickly built, and really to than something, hairs, still the also end balance be No, $XX things most and here still we turn more XXX% handful part it’s the planned to with between building of would it's just got or active today. it the reflection of on a opportunities it But term this conversations who's splitting to we maybe could tenant no the really over demand million like out pre-lease we starts, guess but development. fourth that it the and for

think by I’d set again like pulled really model but love to it's we’ve field. the development our that

that's got we're where in if room building. we are saying space it's new or tenant spec pre-leased an my guys and us existing need maybe one a park, I've because moving ground, do the break to building So But you'd from development when the XX% a see one. three got that have expansion I've tenants

Craig Mailman

Houston. in would April tendency, of been tell type mentioned what's as How say, over little you Could of that guys And more regional mix And have recently more have a trended quarter-to-date? historically, nationals of tenants. you'd the and give of time maybe us an kind of getting done you're more you the e-commerce I in guys just volume but Could a pipeline? of the bit us well? kind you has here you just in leasing then you update did

Marshall Loeb

a a I on or put of maybe could I'll I question myself on better. little EastGroup, should or bit it a one something misnomer think good articulate little and

set under and the an got, for in them Lowe's, we've Best how I think isn't. have, and think that in their with so of a companies a really any Depot, large or we've service Buys, XX,XXX than the need cases lot people lot guess we've number and example, just example more this tenants, seen type up. it’s I Lowe's got distribution of are space And times sizes of that -- those Palatin, Home in means In a same tenants pop national tenant they smaller as model market given is that what global XXs feet, is we Tesla. mom Amazon Homes, it XXs

So business tenants been even regional and have I in tenants have we we ones think articulated more national local years. than our have probably the XX, XX

So pretty they capitalized for what well do.

a it So of on we're what's touched go earlier washer more kind opening the and local I Las a tenants roll we're goods, in it then like than almost looking about region. model we interesting start distribution that. feel maybe our we've refrigerator, meaning heard seems Orlando region more what is will their good center about and the to national see in today that things and perspective. And Vegas dryer and one by We Miami. then do in out see And we'll for up white been

tenants seems it last like out rolling platform. So their the national mile

seen them. all we there. will get we're in markets, but again, [Wayfair] then them sudden And a of won't we've with where So in for once, four conversations them land we

the It activity. than there’s been say quarter. good And definitely tenants had higher have kind to Renewals I So pretty of slowed would move, would what We long that typical felt high. term. in month this of rates retention expect we April.

use for rate a that really it's building peers be model retention was about the were any seem you're always and quarter kind our most first and If for average us pre-COVID. part, for we and or part to of the most XX% the XX% of

for most home year I the people kind activity butter it's it’s part. it's another renewals of we've would requirements decent I put companies expect the their had seen e-commerce, have part improvement, have but food large, and plans this year, of typical beverage home goods category national think and for than the renewals. or lot large just kind some hold more for So April was is slower it’s where most that a of expansion they bread outside last that because on

portable seen we’ve sanitizers, got the testing was month. We competed one is then with medical some Atlanta related. this of for Hand space immediate. some equipment. looking COVID We’ve California And out uses for a in State lease signed

requirement. of immediate and will some it'll an those out be basically So come

do it or space are of of last of people kind sort of now. month looking there a most it's kind where this our that and and if out probably in the nature some that, us for think renewal companies like we are the are, of shelter helps, shift So that’s kind place leasing literally, from benefiting

Craig Mailman

you back? any the of people bumps been On you of about of or to kind of able rent push Have the rent? what talk direction the kind push and renewals, has conversation just Can through have spreads growth? been around guys the pace

Marshall Loeb

news is good Well, we growth. rent have embedded

points probably probably probably this So -- I looking We more -- think more don't and than -- data just really conclusion yet. draw good a have really April. is it forward enough will enough to

thankfully, things free rent competitor is to I and still I and for push have that think growth where with those rent there, are most like little what it's rent ahead got obviously where rent more vacancy. we're probably leasing will pushed tenants new are be able we'll increases, slow. But bumps think And hearing. you've a

and did like that. place. particular kind just competition, I our some then rents sense new some something year in I outgrow where in was no a cases said, more makes in stay they one vacating, the there and been we to a free have renewal a tenants thought few and seeing was probably off things where had one So And going in state And lease. on or two rent

growth So new most the rent it's leasing on years. peers would of imagine and thankfully but have where our growth us, few kind last see I given and of inevitably, gone embedded slow rent probably markets the you'll

Craig Mailman

terms like of of to of couple the percent conversation? seems requirements of just usage it trump still space a kind size So and continue increase in

Marshall Loeb

and the space but won’t in losing probably more had with in deals that, like ‘XX as ‘XX, it, on optimist of time, things demand an heated up just be be coming to we're a and frenzy doors as and it's it's of was think think be dock a ‘XX. industrial. we in better I in going time of that pick right point the to we be up out I for won't it and then word, supply, it sure got new not the coming but I not than you’ve If to market number ‘XX that it going market get even depending strong will when too think rent. over right it than pick out and And

Operator

Street with Frankel our take can Green we And Advisors. next from question Eric

now is line Your open.

Eric Frankel

XXXX bad I replies, question, upon different then tenant an portfolio different and basis. debt maybe in I your of so So to some But in partially certainly your of you just my kind allowance, think time a answered applied and guess different base. touch

your I bad your what then for a debt allowance little was actual higher now think than experience bit XXXX. shows

you maybe difference? hoping was explain I the So could

Brent Wood

million. That raising compared the considered we that same primary X.X that year In probably basis operation. XXX almost our for points factors, income for was points, total debt our exact factor averaged to the in spot. bad we to out allowance X.X estate -- XXX,XXX but XXXX, And from we of million the used debt takes basis right that many year the to bad XXX it about really real of from

range guided general around in of same lot groups peer our relative a think income have I to stream. their of kind that and been to

what earlier, allowance that mentioned some or Thankfully, was I that's think March guide. remarks would at X% prepared very receivable that us we And than in either I point in time covered April got due less collected way. used the specific. as or that we've that not other wasn't so is balance, entered out that tenant to really we clean a want that with

early around than got things really that be worse we're better the we whether experienced so, March By into any - more April month was that, time and based And that first dire. that came than so this. on or the will and it headwinds.

done thankfully, collections, For were the most March us. for part, rent

or debt balances. relate budgeted of off would is million other bad million anticipated XXX,XXX non-same-store just and only write our in debt. total out is on debt, that line potential straight you as based X.X cash then property I'd is that to thing but the same-store, line, straight that And then see bad of table, So on of cash, million guided X that point bad the X.X

first But had and -- think -- complete gap put able again, be those recorded we the unfortunately the than the that’s to budgeted here to X.X cover every we the to specific are to just assuming not reopening tenant going is the million just something we it's XXX,XXX quarter, that bridge from other tenant not remaining that in economy.

we to So they're there we going know anticipate don't be some. will but who be

behind it up impetus bit. so dialing was And really a that the little

Eric Frankel

local dependent about [Technical Houston. on think leasing to what it this bit your the Maybe current base at that more the next directly of might what exposed talk ramifications or out? oil little just a be, Difficulty] how like And even and years, conditions industry is oil leasing and and back quickly you gas, specifically look if how point? gas of look to just what shakes not is kind in might like depending on couple generally

Marshall Loeb

all supply Sure. the is much markets. Houston I'll color pretty history you later. take a stab Brent, given and like thankful comments I'm of --

news the our of good way portfolio million downward kind term And So work long short you we read When of maybe Georgia I and would our will like about it’s under about we'll markets footprint is term. somewhat reopening, Houston, expect some be rents. last the $XX reopened what There pressure on through construction. Friday.

a say will economy little a earlier York their Texas a be and New probably or think California. I market reopens than bit

we oil of in markets out the a a Sunbelt up Houston the topic. And gas. I another will the pick our whole I expect then probably short So is term, think of lot that to this think this think in coming reopening. we earlier will and be But migration

we think Houston of it's is Orlando, on. the Our of big touched probably exaggerated, but tenants economy, -- as tourism kind over it's in part like generally not I it's a

development for Houston, Houston markets. more are than in challenge in we particularly probably in So I year. other it'll we'll other site the be to next our markets compared a think cautious be on And

is there. And size really our cognizant also of part Huston just answer we're of

we'll of And keep so under from our range. team to manage keep five rate a in developing there, that but going great also down we'll we're XX% portfolio of of and and cap job buildings buildings somewhere our trying four exit the to we're subs -- the XX% the kind we or size does to

any Brent So color…

Brent Wood

period, agree The would metropolitan of 'XX entire area third, Houston, in growth. can that. that question 'XX-'XX with this here. its still a deeper job and little that is remaining the determined and in to help population economy to that. some and downturn point that just at 'XX certainly gone I Houston and during Houston out through No, the But I’d did thirds two offset other the extent is than be

even I use lived And there it having for and get just roll know prompt has if of COVID large a a sort does it area of with there, industrial collar lot it and there, challenging. space. Obviously, makes up city, that, done. of the blue mixed which But that more which been and mentality the lot there people in are that of a is

we about good term long yes, the So feel city.

take consumption reopening certainly and to space our and got a space and just help that we've we'll having team, -- experienced lowered tenant. but we've is to good it very risk things. to going tenant Just just good continue continue glad But gas by by economy team we'll the significantly, and there some monitor and oil

Operator

take from Capital our can Michael Markets. RBC we And next question Carroll with

Your line is open.

Michael Carroll

sounded it you're just into or that more hearing tenants to telling your on release press May today, like is just the what markets June touch something now? what's your of going expectation from unfolding you that that your kind customers the your how right you're April. and released versus Is At are I today. night, about wanted comments on least cautious in last that

Brent Wood

later. our designed again specific. shutdown. none I economy tenants more earlier, as think for a business of reserve really thought the bad be to It's of the is mentioned is of it's more Brent And debt no

and and that businesses better us then the just unless the to so says. close And for April more it rents ability regardless and a And business, we gets sheet almost why your availability, that’s probably reopen easier that, as balance even wise burden maybe move them of probably things it's that's like cash hand of pay exceptions May in challenging and the you're probably did really sooner financial can some on to and and that your for little in all safely June. things

in bit third. like things probably There's retaining your the second caring and so your rent it’s easiest from really losing, little little shutdown bit standstill. the revenue any how intuition, and of to at tenants, the much while that a paying hard and month a and more it's cumulative on got a when like was But things employees just which first probably than more economy still the that your completely kind terms harder and and that, heard it harder that is be tenant of revenue is much anything source is they're we've

Michael Carroll

bit know little said the than mix. And you probably I tenants about that then can people you a guess have more I you that tenant national expect. talk

the looked regional that could So what data tenants versus percentage at local portfolio? do is that have you national us? tenants that say tenants you or mean, is within or the provide you I

Brent Wood

or them tricky. a that's publicly companies, can be heeled on to up companies, that data way very have example, easier do well can don't access Obviously, for private are the traded that. to look it's large very because we you just but that The there track

So have we don't metrics. specific

built a down or couple begin especially of times and that a half mentioned quality portfolio. I thing, lot Obviously, our size operate a our to our So of high terms We just think where have don't maybe quality their type obviously, that having with we B, in by think Class Marshall we really very has A balance people broken small have C. portfolio. we think Class trade of that. But tenants, reiterate operate groups. I sheet portfolio. development would the they Class

multi-tenant people just the in where lot end for you different Class housing say challenging potentially space. really as you're go And of chain more. not than the afford of more But go as at times. building going food can of the and price point quality with a tenants we're down Obviously, A, it's with that quality down down, they lower top of it's you then the and difficult that

fared to foot were there, of one I So from out out regaining square would because the coming standpoint the well a leaders pure out of great through customers XX,XXX XX,XXX occupancy, we broadest recession. that that that we is potential the just point of population with the tenant. is base

long And good in we've good in -- a we several feel to like we we're have team deal a position with downturns are. rather not it, as term and we're where been feel So it. about we'd through feel these we we handle but of to

Operator

And Rich question we with will take our next from Anderson SMBC.

Your line is open.

Rich Anderson

million detail individual are million on in how you to non-cash of the curious in that just So get kind the level cash bucket? able into how bucket, really of X.X So, bad million mentioned weeds total and breakdown between think was I get X incrementally or to -- able X million, and line not Brent, debt straight X.X this issue you're yet tenant the you’ve you rent, to that of specific, X get it, if collectability tenants didn't that… the million, within

Brent Wood

close to debt for And stats about bad maybe of mix average, a the XX% cash, year. back and XX to little that and is We to varies it's -- year got certainly pretty going bit years. very straight line XX% quarter average holds on it that. But our quarter

determining that historical that you, obviously owe you've days, say owned let's upon plug so XX of And off. breakdown. write get point uncollectible, where a just cash mean you you you're they pulling to we tenant up just obviously relied the to accounts the rent build you that have just that, I a they the on got if

that But balance might off. then in at rent written be you also have time whatever their straight line gets point

even end lucky the straight the midpoint the a lease on and of there a you're that lease, likely If would But be balance. toward that front if end it there. smaller you're line then toward would you're be of or balance

historical XXX% So our a and that wouldn't seem way break like on that to because XX-XX just cash, that again knew reasonable we be average out. it -- relying

Rich Anderson

maybe then yourself. or question And broader for Marshall

still inventory positive I'm with of larger in or to sort this term, out But that as the the of behaviors. a near would to the agree some mile may out these a the big business last sort there's you're bit about increases, changes almost the of of the of of lot upon I in because The talked little that nearshoring serving. come elements that curious say terms sort on if you're calls. consumer like you you sort markets you in relying infill in component in exposed local the onshoring economies last you're of on like You that more might activities, be only your just because feel just the recession, of in hear supply problem serving of is assets hyper that? mile exposed product. market And you're comment people a that work

Marshall Loeb

of reopening because going just a more on is are and and But mall in people last but longer When getting a Phoenix like of not you're San locations, thought We their I've right not and things the what actually you malls going Tampa, going thought and are up more you're puts, perspective not actually sitting probably this morning. Interesting it in market shopping, time and the value you to some be people and how over word that a pressure to curbside. pick Francisco. home to at But goods think delivered I've and you're more consumer the now opposite of picking certainly the delivering restaurant. depending conversation and not or need that may and in more mile that.

need changed more last even to Your so you and mile did than prior has you this. shopping that

things the the So people there. phone, I is think pattern we And by demand importance. consumer, so there. But we going that's picked and think online up to that's ordering or a from mile and be are I stick to need last home need their

Operator

[Elena with from take Morgan we question our Travis] And will Stanley. next

is open. line Your

Unidentified Analyst

is This [Elina] Vikram. for taking for the on Thanks question.

what or sure you far, one. May of or you've quick levels? it's more do it and so not a But too normal than percentage rents early. you can Just if if less is provide know I'm collected

Marshall Loeb

and where late not necessarily everything dive the someone just else, that at It's this overly I preparing into question percentage probably but because kick the anticipation high. one at good But that you and in. a and really say just experience But to would eye slightly fair similar look early get maybe And our when fees about has rising. just until don't percentage to would some would it our penalties really because and so, time behind we that wouldn't we've deep point point at XXth on April things is or spook isn't been nothing of the normal want that's month we’re this that. be that's a read

have up And not XX good end quarter so cash pretty the days unusual the about on XX velocity days through about to before it's to receipts, all way after. coming

And on so of who idea XX-day additional a that hasn't. and But we're within you're color to time. midway really who's get good paid, about provide at period, to sort really this that going just of no

Operator

next move could we Wells And to Blaine Heck with Fargo.

open. Your line is

Blaine Heck

the or receive that using how know form you of tenant with have of to on tough instrumental will might the and help what to, to to guys look questions but their expenses? that in is up anyway tenancy having given rent, conversations is loans received answer Do grant this And as idea other a the has sort and are you're for tenants. Just on percentage base your PPP or loan? a some there or be you of have government pay they to ability any following the

Marshall Loeb

the an rather. to and list kind gotten have our first want help, and trickier we we -- and applied you where lender we SBA is answer, XX% be that probably a standard of question one form don't know we'd involved need of us to again, Good may that's come of tenants resort loan. are basically, of things of that say to you’re right, for questions say or And we’ve the

you really get certainly SBA you up it's back. understanding is -- If end my needing pay loans the an on the can not loan ultimately but of and expert those it, to amount

that rent, If you pay pay employees to forgiven. is going show your and it part can was

tenants a had SBA loan. didn't their withdrawn subsequently relief of rent we've number because asked the they where request, have get cases and that's where So for

more comment, got an good And of ran as a SBA saw cases, companies in so banks, getting money then relationships political of and with large thing, those loan it education fast the some this, other the through loans. it's the many be so you out seemed to banking

having of here's trouble. some with a bank, here actually know there. us tenants the them help so our And specific were like we We can banker help is here's the you let banker, website,

pay understanding as is pay So loan have won't say using of so rent, they it's that's percentages it many loans, for. globally, SBA because are the my to how what designed to like of portion back. the that those And get did in was them it hard to terms does the that

as to so who's from that didn't can attorney making in. it that outsider, trying where it. as in now some email that's we're their this And think not I getting work maybe to just easier May, someone it loans. can, an morning, process rent best they there's Maybe we funding their still processes not just an we them April banker, they'll come obtain will as those June or And with hopefully, just for have gotten and going through going

of far, by helpful and all not they it's our tenants it's think but the matter. So majority I

side can’t this. excited get And everyone at other side get month the each because but we're about this, least of we you to kind of say, us the can so of other closer that

estimate way or debt month, the loss occupancy at just collect so And each our we thankfully. estimate our bad

Blaine Heck

Just one, one quick Brent.

have guys maturities about talk You upcoming about some thinking you're the those today? maturities as both just year in market Can seeing and you're how it and this debt stands you next. what addressing

Brent Wood

$XX August coming then million it’s million I think in $XX coming December. Yes, we do and have till not

as at And steady in see there. runway this right quarter. year steady and very very a now, timing a widened good we the is go think unattractive. have hopefully even X% low term distributed year million down typical year pretty maturity next XX even in we've like Right talking not in that to And But maturing. loan But given now, really schedule. things out and our spread first we So size will range, right as days few maybe private last evenly the $XXX be get with And down. then tried midst the long which we back things some simmer thing money you the supplemental, really could to or rating if of we keep And all more. placement that's come that of ballpark. did the that lenders, feel would we that in we of some type and and our

equity we've our and accessible So although, position went has bumped ourselves questioned been we looks to even the when at table, see do equity. up which our even be attractive and we building as reactionary. in always you been the it issuance, and we And lever available a this other debt as we've to -- guidance available issuing rate year. philosophy when it looks it it's that again, in anticipated about And we the And pulled our view certainly needed. having access -- as versus were been

let down. becoming more position And going a we But and I leverage certainly is feel -- to like time just we So in first in. fortunately, in back days, where last we're think nice see. that is maybe hopefully, attractive cool markets can that XX the we the the which calm third quarter has become dialed

Operator

the session. conclude answer Marshall and for And any over question to this does program our Loeb like closing I'd back to turn remarks.

Marshall Loeb

and your his Thanks He probably everyone most last quarter time. with last Chief importantly, over He's years. Accounting been to for closeout. and is Certainly, Bruce Officer. has XX want He I now us thank survived Corkern. our

Bruce, So thanks.

everyone. appreciate we you comment. your Thanks away follow retired, you. And you're And because any available for your getting the interest time. you're not Thank We're questions thank audience for EastGroup. from meanwhile up for Just certainly us. or in

Operator

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

You at time. disconnect any may

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