EastGroup Properties (EGP) 8 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Marshall Loeb	executive
Keena Frazier	executive
Brent Wood	executive
Craig Mailman	analyst
Staci Tyler	executive
Jeffrey Spector	analyst
Alexander Goldfarb	analyst
Todd Thomas	analyst
William Crow	analyst
Samir Khanal	analyst
Vince Tibone	analyst
Ki Bin Kim	analyst
Michael Carroll	analyst
Jason Belcher	analyst
Ronald Kamdem	analyst
Georgi Dinkov	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the EastGroup Properties Fourth Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] This call is being recorded.

I would now like to turn the conference over to Marshall Loeb, President and CEO. Please go ahead.

Marshall Loeb

Good morning, and thanks for calling in for our Fourth Quarter 2023 Conference Call.

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

Keena Frazier

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

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

along are strategies to and earnings and on current company's it company expectations, the intentions, in and assumptions of information made. currently plans, the views has about our on our made with press prospects statements reflects today, the as the Forward-looking release, available remarks, based

and risks. report Please update differ to most on factors undertake to no our uncertainties detail mark SEC or a whether that annual as of results statements We duty may our for actual materially. new events otherwise. other Form about such and more filings, Such risks, known these recent unknown or or result cause actual future information, see including XX-K statements involve

Marshall Loeb

and record we record our Thanks, re-leasing by FFO team per Keena. year Good strong thanking start and quarter delivered I'll spreads. share for which in morning. a

opportunities a high continues in market. performing finding team Our an and level evolving at

quality portfolio market. the fourth the quarter built results continued the of full of we've industrial and resiliency demonstrate the and year Our

year. for quarter results from up the Some operations produced the XX.X% above for in of and XX.X% the guidance, Funds include: coming

year, a for per share basis share has been acquisition. but occupied Occupancy points the leased exceeded over Quarter-end truly FFO long-term a in quarter from points our occupancy late XX.X%. XX For to decade, trend. quarterly prior basis FFO XX a reported have would higher, and per quarter December prior same the rose

Our falling points percent the to to geographic previous X.X% lease in 'XX NOI rose regardless fourth XX.X%, earnings and prior a more X.X% of of XX XX ways was future most year-to-date. points per strong, and to XX% I'm to from Average GAAP with year-to-date although $X.XX results finish record XX% for sector, occupancy the up rent spreads spreads record the with the cash. XXXX. locations. achieve was GAAP top quarter our These re-leasing stabilize from as and our and finally, rents, quarter to down diversified historically quarter share. was results quarter thankfully view tenant diversity FFO XX% happy Quarterly basis strong, and the our basis having economic to same-store quarter XX.X%. which XX at basis down Helping Cash us and cash. broke points environment. these is tenants pushed X% in last set We roll from XX XX% And to reached rising

last performance given the economic of proud backdrop. larger I'm summary, In year, especially the

on Due the end current and, push end to us demand portfolio. This strength more rents, value rents user product continue acquisitions. creation market for we're quarter accretive or seeing pleased may leased newer, capital opportunity to strategic at fully responding market XX.X% recently, properties the industrial opportunities. close, hard development ability via the to It's strengthen throughout to acquisition focusing leased how our We raising the be by below window and with when but rents markets, to with we're acquire broader gauge large accurately the yields. allowed may

As XXXX interest, our stated solid million. we're of parks. within on Based deliberate longer And pulled $XXX market our we're forecasting our seeing read-through, with development continue before, starts prospect leasing decision-making. starts by though demand are our developments

$XXX the pace. ground environment, seeing XXXX. on I second starts, be in While expect trends. in dictate promising we'll of to the weighted ultimately seeing, million on we're time follow forecast Based starts we're heavily X we more demand the half frames Further, to decision-making to this the

quarter in XX% when the thing, than roughly industrial third fallen lower the quarter began. quarters consecutive starts. fourth decline decline Starts first The have XXXX X with XXXX being

create Assuming and to continue demand, tighten us development reasonably steady the markets in XXXX, pushing allowing opportunities. rents will

rise The us site is site allows to move work our and off and developers prior need years development materially time closing the to significant opportunities who to with investment forward. development This take in the reduce trend second traditional risk. have line completed legal capital

initial now our within several Brent will speak guidance. including to XXXX assumptions topics,

rates the As within stability always, follow unfolds. or will begin we'll interest update belief and our the forecast business when confidence is if as My rise. to that year community

Brent Wood

morning. Good

fourth success time-tested the the our quarter portfolio, strategy. the of team, continued of of and reflect Our terrific execution our performance results our resilient

opportunity perspective, programs. stock per FFO equity of for to outperformance same $X.XX capital to by the driven XX.X%. acquisition for last the compared fourth per price the and results be the the development continued quarter portfolio share year, continues success an to of stellar The From quarter provide share, was strength our $X.XX the increase markets. access our a operating in and to

shares per at sold $XXX.XX we an of price proceeds average gross quarter, $XXX of for million share. the During

an price on program for forward per million $XXX.XX initial Additionally, equity we share. executed time, proceeds gross first the of securing at $XX our of average

with to outstanding. settled still in commitments million million, we $XX $XX Subsequent year-end,

fluid, remains financial solid balance are sheet strong Although metrics. with flexible our capital and markets

XX%. And the to X.Xx. down our coverage for is charge capitalization ratio unadjusted our X.Xx debt fixed was total ratio and Our interest market debt-to-EBITDA quarter, and to was

property X.X% $X.XX first the for Those prior estimated to result involuntary to to a increases and $X.XX the $X.XX forward midpoints for compared conversion per occupancy already be include: $XXX of XX.X%, and the guidance to share starts, range claims, FFO development midpoint in in that cash excluding of in comprise respectively. executed. X.X%, million is insurance year, as new year. million, represent Looking been average $XXX and million XXXX XXXX, gain quarter of $XX debt of which of X.X% operating strategic same midpoint has $X $X.XX Notable to bad million our of of assumptions acquisitions, an the guidance

source. we million the During view elevated projecting guidance this our in rates, proceeds issuances, equity for to maturing has period interest capital has $XXX year, our the attractive and which via we most $XXX of are $XX stock as been common In $XX equity mentioned minimal program, in August remaining with not million until secured debt million December. forward as million the of earlier. already continue XXXX

XXXX you, results. to EastGroup we are team the are listening summary, our that pleased members In solid call. Thank with

quality strength, we our our the As the turn to our experience maintain team location rely to portfolio page and financial the we our to on of of XXXX, will and continue momentum.

Now make final Marshall will comments.

Marshall Loeb

closing, clouded. markets proud the environment I'm is and Thanks, team and remain results in leading the our generating. the strong, sheet. strengthen continued operations Brent. remain decline value overall and to This the we Externally, is capital Internally, of the to In starts. balance continue

to maintain working the occupancies rents. high in meantime, So while we're pushing

migration, as portfolio chains, as like for evolving our And nearshoring benefiting onshoring I long-term positioning secular trends, logistics several and from the is and positive example. uncertainty, in our population spite trends, of such

team track long-term with a also proven a We have public management record.

as quality tenant than geography. terms balance improving portfolio markets our base both Our stronger our and well in of our continually each and we're as sheet is our expanding buildings quarter, is in ever, diversity

we'd that, the With for like open questions. to your up call

Operator

Citibank. Craig Instructions] [Operator comes Your from first question Mailman from

Craig Mailman

wanted I touch environment to for a bit you little getting guys. the Marshall, just better acquisition on

in about you pricing on of much of of a relative over that perspective that? it guidance, been kind risk-adjusted was to of couple -- $XX last you're And of remaining, seeing million, what's a are You've from visibility basis more is And targeting? that kind a the where developing? where What markets years. how $XX on you developer are compelling guys embedded the the are the million

Marshall Loeb

call, the people the maybe little switch. on the the weather the in, of Craig. bit you'll under Thanks, we or dive before We me, has And Wood Brent I'll allow is if a call flu let today. prerecorded baton

Tyler, hands mind. got and So Staci capable you've Staci's in we're

you tomorrow, under he's but weather today. Brent, the hear don't back if he'll be So

environment, of properties, successful we've portfolio and On the rates by remained On opportunities. portfolio, cap or finding our in been the has encouraged that acquisition sense been and a team buckets. different they it's X I'm low X X competitive. where have And almost buildings thinking more feel

million. And if helps, X if call acquired buildings, it, year about so is go color, The of bit I the age till last little it over, today, $XXX midpoint old. of kind years we've X.X average a little back a to

run year it the where how market below about slightly typically up. rate it. rents, of kind with it's a if got the were is buildings closed, with FFO, that new our we And in in $X.XX match you looking added of been they've quarter issued terms we we So they at leased equity on

of close, came of we And our we but be to our out gotten offer, become all we X a it work has to been want infill way been, to that some ability. point own up, where cases, kind X process a a tied in buildings we've our certainty. because highest them acquire it's to an we your sudden, or and they've build to originally We the And assumed A equity, so of in really adjust later. years as it in needed the was certain not brokers, we'll at we're contract. path it's one-off. closing. didn't it. been in that well-located year and the But funds who Whether risk a been industrial least all by ago, seller your them, had the and They've viewed different weren't And kind of pitch we've issuing property marketing close are. of ago, wasn't markets. may been that group And a had returns needed differentiation. we One, line that

X.X% that it, call about rate, GAAP they're cap leased, And GAAP batch return. average, of been our it's and a type

in when on we to to at -- you blended are an equity a brand-new cost what that and old. buildings like GAAP lease X.X year a a Xs, usually the and were underwrite that's average development, X.X% return up these compare So a years it on

new the it tie development been has that interest in -- a market. that's to I'll And rates. really So

more cost on to underwriting All of capital do. using shut And of debt, unfortunately, cost us, when that turned a our lot call I'd what year many had using than of take unique other normally we interest situations. or rates of start equity over low-cost way. of it were our window coming meantime, equity some that that we FFO. stones think the people But slam really and add we've But sudden, found in doesn't the a will a competitive I $X.XX kind to and a

So played you of longer that's kind they've answer seeking, maybe than out. were it's a but really how

We our quarter. for off in run in bottleneck. then the component And last to I'll I we not a bit the a properties markets, could That's fourth got, -- equity. market in wanting say, I've blame visibility. take coming. are use We're ATM done big today. And forward always more. our the to what add issue handful on and Nothing bidding have of line we've that's where led been that I'll little the probably us our comment and really our to make, line on

than I a better to usually process X saying teams the capital, allows on lot it capital, before, have of to month switch field probably through the the because, run more bidding light we've did a to now acquisitions takes property. weeks us So don't we the we whole was in to it got match-fund a and a

Craig Mailman

that's really helpful. And Okay.

going X.X% And is so high Xs low that in. X%, probably what

and And cost to compare development on for you of view kind returns so of cash and carry that as guys very cash your risk, when kind adjust you favorable. that of

Marshall Loeb

Yes.

I XX, X If X.X% supplement, in we're be developing pages may and you a look, to maybe about about off our XX parts and gap. but slightly,

say, in will X.X% function market So was can and what rents, and buy the been it's and we all what delivered risk away, construction year, we higher take a it a leasing if developed of -- mainly the we Xs. the teams I leased, and last and

this a ahead we've developments. more a thought and on development coming thankfully, time. that But been for a between moment and we So all of building sudden acquisition out our an where be, would delta in we looked attractive new of

Craig Mailman

next is led the And Okay. to be going of you me introduction to question, forward. my

be when of you the it more an kind really, spend for going of use acquisition, makes So you'll to the fund may kind ATM sense. you're near-term need closing is you to that think you forward and that if employ on

Marshall Loeb

if we've we a to got you out it's other that the know if ideally, if -- we some, so thing, of the viewed meaning we a pull our and can I tool down. toolkit one, acquisitions we'll sit coming think a above that's really or NAV, going. an and more it's ahead I down month, own to the when true. it attractive inputs another are And We price, clunky about the can above pretty in get have capital, of so attractive And it's in get pipeline have we or the acquisitions, take see internal but good forward, so we really I because today, think welcome our the Yes. don't and forward at we out down development nice so, and kind year know Street, at uses, we an or if it feel prefund being here

a using I -- if a at issue were be. -- didn't at of debt, X% kind get low to equity I run to cash you're nervous. today. want of didn't low was to to Because want and line you're want where I we're to have you buying where to and kind get you then back cash you X% at, up the is funding

which going maybe faith our -- don't know leap of ahead So yes eventually. of out on someone's always us the But on, we bit that, we're our say bidding we to that. a equity like have either we'll to this can little properties use if it use development, and we'll and X get we

Staci Tyler

Yes. And just would one add Craig, to thing I is that, timing. the

to blackout a public So as much of due company. we're in the year, earnings

actually just in the gives be we receive cash. it the to So timing We window on trading flexibility to funds. when open in don't us receive have can the an of order

us So some that gives flexibility. additional

Craig Mailman

by I could squeeze the on slip I in promotion. If one maybe if congrats could -- more in, your and way,

Staci Tyler

I appreciate you. Thank that.

Craig Mailman

Is this The in ramp than there something G&A what year a more have. typically bit little looks onetime number? you that

Staci Tyler

The X/X in the our main there, to starts. is additional 'XX about a development G&A driver due guide of slowdown in

they're We their team spends time our So based and a capitalize on. working of to development the have that the we portion development projects internal that related that activities. team on costs on construction development

million fees, 'XX be in guide development our So When development in $XXX so record means in basis we our is that properties. had to a and fees and it million, in reduction $XXX of million have the the where that recording. starts slowdown of guide, we in those starts, development for G&A it's 'XX adds less we'll that we

team $X.XX And -- of growing our is for to main less development prudent development some more we it So added lower to projects. conservative the upside we're the to ends about up company But felt able because That's we grows. hopefully decisions, hopefully, that 'XX. that making being with G&A driver. guide to in start the G&A business in starts. then best be And there's turn, was compared like as

So team, matters. a to additional ESG and people we're and phase. the But there is the main other some adding driver typical then aspects and of development investments the few other G&A,

Craig Mailman

Is that so partially bit smaller? Or something starting it it lower interest a though by drag those cap $X.XX? is offset a is little from full projects,

Staci Tyler

things. Well, really X separate it's

then more but are these interest, internal really So capitalized costs. we personnel have costs development

is for team's projects. our the spend So development the impact G&A to they that time on

So compensation salaries it's other offsetting costs. and

welcome. You're

Operator

from Your Spector question of America. next Jeff of Bank comes

Jeffrey Spector

seeing that? guess touch terms there et you ports, nearshoring, of talk know about First question, Anything I quickly. impact could potential in and guess could touch know light in mentioned we new we on what of it cetera? constantly on if we first. I I I we're Marshall, on just onshore that

Marshall Loeb

of ports, And it's we why or port around very their comes my really When of there's decision guess developer Canal. wrong, look, on was on owner money in -- that's some pieces that view it an kind manufacturing, through. you a think I people I but it it, fluid reading a being Plus trend. the make which view, Sure. Suez to I me environment. can dynamic the reinforced it's through case kind the That's China long-term a and of really One make --

of back at Paso, and growing We those near when from markets. flips do strong. want feel, of I and that then gaining is be because L.A. like think it to look like I market don't the both although and gaining that, Diego a we XX%, L.A. base consumer consumers XXX% year last Houston share we're is from leased, El things San Phoenix is We

our of -- portfolio some in best rent company those those our our markets. and in in And markets are growth

feel for We're we're to of kind we looked our of off. a strong term a long Paso. of looking some there. those steps that of one really land. time issue for active San So next when take Phoenix, really at we've grow is still got all We're El we function timing and development a that in markets and It's opportunities opportunity it to really -- we've in Diego kick portfolio.

terms And But we many manufacturers at and really, but are, of the of question, it we of green the of footprint tailwinds like energy, we're the awful local run manufacturer, in supplier. like be especially within What there'll Georgia if was know I more into just And Carolinas, besides technology effect and but the the in get growth the in what And it like, have then segment it's a economy. you is onshoring, that reading, still that manufacturing. kind whether on of in your have, don't we look certainly, was seeing have it they Florida. the And Carolinas have supplier, lot so I through when the tech. the Georgia. the EV again, seeing and we'll our I ripple Texas won't and an we of where which nearshoring, seem lot we I of Austin, portfolio. to our Dallas

Jeffrey Spector

believe Great. Can acquisition land Is $XXX And million. guidance. that's follow-up guess, I the again, on for talk about in 'XX? purchases I that talked the properties. a you about, then you strictly -- operating

Marshall Loeb

that. of that which find got opportunities to had hard a missed usually always on We And we little bit We've Vegas, it, fair right amount we If I'll a that capital, acquisitions, in a that that's Sure. yes. -- Spanish we've the look, affordable of we spent and Obviously, preface number. have we'd we Las the number. Ridge beat hope closed. we number. beat I like land,

closing. before tied to On been finding that land, kind -- we'll come zoning up of someone's parcels so that year kind like and of and where ways. to as Land X approached land it's the as all that get Maybe saw done work. far we got you wetlands we newer then else try tied in some of up in minimize year through the permitting and us And this come and time kind that has Atlanta few other currently, we up EastGroup. path have the tie And between last closing, to a we've and close. land they've it's up, of us, have may different everything that issue

not you're forward to, forward now expenses. you on and But sale that's that lands selling a used

done closing. regional some Atlanta developer has legal and upside. and we've completely and they out it's couple and our have work work the and a buy for another come times, of where it all are local use in kind us, venture we help Tampa, Denver Austin it seen or them they in Either So they've things in to could ready of where

a new path Everyone and don't And it legal we've their of and want where kind kind that's to wants land delivered don't your originate of markets it's the don't of just risk sometimes zoning. the neighborhood, capital constrained been interesting get wishes kind they well. -- given through close so dry up because NIMBY the effect, where package sometimes from you it, we we that tied an quickly,

to walk hour But to You've and it where the us you money them away. put XXth and to closed, we get that's some like help at people the kind time have have and other it come into part. of

tied good the there's to sheet, with have we another if our land always iceberg, see yet. close, like here an balance up there XXX So tires. and and everything you it but and part feel on another And closed me, we about, control, checks if we'll don't we've out, kind of, go the got to we're XXX where we but kicking acres under we ahead have haven't

it's in buildings will the vacancy fairly quick to I where, going given the when I'd and feel in feel I XXX,XXX But higher and we have. of where our we now. lot does market I bit year, a range still supply -- fairly think the to optimistic And the land about fill going up, are think a little buildings. So the the our are it good The or it's we things inventory stores, reasonably in box especially business right kind pretty tight quick say sized this by I turn be drop about of a think in where could overall, is not it's be below things starts market. big there's turn environment in stabilize and when size

Operator

question comes Sandler. of next Goldfarb Piper from Your Alexander

Alexander Goldfarb

Jeff's on promotion. the comments, echoing on terms Staci, congrats And -- the all

So that's awesome.

Staci Tyler

Alex. you, Thank

Alexander Goldfarb

takes questions And hopefully, the Two comp notice. committee here.

to the back ATM going long ATM, investments. just fund to Marshall. used the EastGroup its First, has

apartment guys to done more have playbook a sort of a Going forward the out few over years. what is that's past the of

guys So ATM? do sort the the shifting a you was traditional issuance where, traditionally, Or of in how now what terms you you ATM see it of have forward quite about you comfortable been using mindset? use

we of about of guys in this settlement but later ratable not year the issuance sure now in guidance, shares? I'm the settling have we think as if of sort or timing affect the this does Staci, then And modeling the You would. normally should

Marshall Loeb

both. is -- you thought where a this again, cost we'll Okay. we've historically always lot, to Alex, assets we've cost we're our given your on higher ATM debt And is use -- -- the -- equity past the use we how But our as ATM, like trouble and intend as still long-term a look, to line. with really, for year. line -- in tempted get REIT. Short-term our you're than we

use probably flat balance. get or really ATM a So traditional we the we'll line low the until to fairly

point, money the its will if -- And you have price probably still at the the good we a like when like over periods that's use the that given blackout we'll Staci can earlier, I know we that, we where if things And that And generalize, and for where shelf that for forward. and toggle to we kind it's we're mentioned that need at pricing. on attractive put of it. really that's

XX give banks or couple down it later. hours' and XX You a bring notice the --

So us uses. where have it probably of a still of each. far like the year, fund we that that's skis on deserved, congrats, about Las talk We're terms let definitely when limit over I'll the we're let a we even we -- on we're both forward. not the too how in kind a Staci, gives much to timing. able we'll have equity but we thinking. closed use But our were have through how echo And to in have blackout, the and the you ability an I'll of in get will limit shelf well We'll out to though I'll Vegas you earlier going

Staci Tyler

Yes.

that part was It's saying program. as Marshall well. continue ATM all forward Yes. the of one will with to good. what Sounds under issue regular the I agree And

it easily timing, pricing, will depend on can back toggle market, blackout. forth we some So and and in of whether we're the just

of back is acquisitions. year. line really with into built is that have obviously will all But development actual. more the guidance based conditions of our and and change starts we heavily what to market But in half funding, timing And the that the on weighted of potential

actually like shares But can the just of we the need issue then we the forward, when XX, have we outstanding. cash. forward we and funding, And actual we funding, receive the give in that hours then whenever notice and XX Marshall said, terms execute

forwards hope in a So to in shelf, needs. it as the the terms the in to of have add gives under long our have as us not on we we're we know that then the flexibility regular lot meantime, And blackout. of we'll outstanding And that the we ATM we that. can issue cash

Alexander Goldfarb

Okay.

the question is on fill the past year But conservative past -- the guys out have of worse. the hold up in so X get and the your fact, everything with to you well call, up markets hey, expectations drop come Brent Second -- and occupancy of, occupancy well. and for guys not is does and sort holds outperforms, And years, performance in in have could this his assumptions. you things will well,

just Yes, row. think caused still, hear it EastGroup third -- it's your what for that's caution, space, normal leading comments seeing about the credit et actually just hey, XXX caution a is -- normal we year in of But backfilling longer that's trouble issues me cetera, pushback to occupancy the occupancy to potential drop? or you or Or you tenants client are bps? drop of downtime, could

Marshall Loeb

more XX% jump had the I'll our norm. history, in. years. and Staci, -- occupancy -- the really question, XX-year Good we've years, in tied X in at The X last return it's I'll our to the given record last say

few move-outs. known up There's more no major Its us bad that's space a -- major anything no years. identified good for been night. any there's things at have debt So that's really or specific keeping

rotate it the I a they to higher that could unease, think more. things rates, like on the with the this to interest especially going keep beginning year, at normal little of global now path? then And back feels are especially,

growing this of X/X thing to our EastGroup, to understandably now, development their And I leasing more existing other is are our the point a tenants. little one same-store, then in that at people think affects us unique on because deliberate right businesses, -- about was our

before up especially may to -- customers. leasing And now try that, seeing in Texas, before it's have to And downtime take we were as minimize but and more goal can, best the that park, a are we -- little a us days X, in our couple re-lease underwrote vacant Building months Building look, our to budget we will for months. where a so of downtime, developments when what probably we'll That's a still X or XX phase Florida to where have of of we it. we tenant goes X more us

to But our your hits view same one someone's it needs to our someone's grow, that's And that moving if we accommodate that's is and to part they that like of sales And can park. tenants So in, going when our -- parts. why within or occupancy, tailor it we hits down, our growth. going space pitch store. initial we especially you a of always come up for the you

broker And one happening, lease rents these still CFO was higher from a higher a dollars, being estate that at so companies. way of with and decision being the to many decision and so real described it's good manager it, in a that's moved as commitments

flip people the of moves. be so slower again, kind except And are environment. I rate deliberate because being of interest and to and the side, And like on maybe acquisitions, too may much tying

of interest that there'll little that our will bit effect, a rates pent-up demand but that's a retention rates be are think higher. I when lag come hoping when down, I'm off, do take

faster right And development no our been sheet balance to our starts. I will. I there's some can if but will back be safe have really we'll than what tenants at about And pick and of to of we keep And move land, a across our think pipeline stats, excited private lot the have people you renewed, growth. if able country peers look is up the we get the

Operator

of Your Markets. KeyBanc next question comes Thomas Capital from Todd

Todd Thomas

portfolio? and First, to total feet the you You talk conversions in just the can the of square getting that's year. X.X terms leasing? about scheduled in What's million that's embedded guidance guidance budgeted date? few about operating scheduled you within the a conversion in up confidence XQ activity leasing those can portfolio lease-up for transition XQ, about around And buttoned of and to during talk the your have ahead

Marshall Loeb

like last brokers in XXXX the say kind of it's -- out last those. about and I'm days. probably slow, XX% or of sit, good -- on kicking leased have late we're up looking holidays. think you, about the if year. picked in Feel our activity we It we're would Yes. Todd, the tires of would activity. say as a of It leasing XX I me people we our have what felt tell slow terms XX, I'd because following little things transfers, today, bit they was at feels

we're back we the half activity. signed convert have to is this year. We need it So of transfers the into that -- year, the leases. of majority Of the

fortunate, jumps like So got this saw it -- year. there's of we a were pieces task the XXXX. some and able got budgeted, a from to our one one XXXX all we we've then leasing of of look, if We've sudden Orlando projects, that's quarter, kind you still that stabilization up And leased here. -- we're that really to have this get

ladder. one move So the up will that

will because of the upside that especially, early. daydream maybe our starts we we if about other other to stabilize ones the projected lead within available year, that's more done keep that to The kind I leasing to moving budget, of thing And it, inventory having stabilize some are like our through. on to parks, just that get is next some

a got -- we've pro rata amount. so And

little that's I economy portfolio, the think where the year the And is will probably the a does our probably back dips will half then towards usually think year. of of builds it, June, call it too. and go back -- it occupancy bit half through, we the

first think I that's back think will the the first dwindles year. confidence Not of picks year I the than as up, half the be be half will and, it'll supply where I our better. bad, just hopefully, half of think better be that

Todd Thomas

picked you last calls activity then We've this And quarter. up, the mentioned similar heard on Okay. other in commentary days. guess, XX, I XX that

XXXX, you if touring activity characterize can pre-pandemic and relative to levels, today you example. curious of demand would compare for and contrast? Just How sort

Marshall Loeb

the Probably very pre-pandemic, than -- is lease mentioned greater. I the commitment lease similar to other earlier, as

this description tenants, takes done, like I've approvals to get time. adds from And it so heard get, of one to have the more which the more their I approvals brokers,

fear There's out space. I'll had on maybe happened say, that's people in what activity, think maybe of and Southern a I California, post-pandemic, losing

there was me there other looking fun a X maybe late this don't at a tenants have in -- there's tenant job into my at they're people soon say broker that as I had would I out looking X is early 'XX sense as so anymore leave, it. of because, they now and urgency or was And space. right rep they're But not and 'XX. there told

X. over charts square looking moved in one think were there's of renewals, feet every X a last people, of I we What the last feet. the And every pent-up I'll it's year, renewal. in been at say to in has terms about X the demand And about several years, then X X square

to renewals have or to the rates patient -- the waiting see unease come think an what of they gate I and it, will up once to year, jumped or activity. analysis in that amateur global is feel And open. it's call water, but So think probably that safe people it leasing being are election of like be the happens, it's my interest XX% X/X back whether I from,

hope an rents to of it's have the they've or have quarters I capital move several on through maybe or portfolio balance is -- sheet, ahead private we X try within buildings forward is have bigger goal groups the to we'll our than And our in our to ATM, rather too, the out. compete put lot which we've have really and that's really ways, who got awful the we pushing the and got size peers, with either more whether the our where start, to hand, a the in permit head land

towards development lean box rather buildings. $XX our big the they than So million

Operator

James. Your next Crow of from question Raymond Bill comes

William Crow

should guidance morning I'm boosted just but asleep, Staci, fourth Brent by the any on quarter at to and sure say you occupancy. was that if I'm question wondering He as just on and he's good be a all saw. listening. occupancy well. Marshall, I'll follow-up demand Marshall seasonal

Marshall Loeb

all this of is, the in someone the had a really. helps, if really this of occupancy occupancy within we kind And Office budget, supply the gets in if we we've was and, there's we I and pipeline what space It picked absorbed, goal hang up. really that probably kind it demand coming think that be back take Usually, good play our out not just we've the on can't it is Post like our thankfully, any said ahead budget. offense. a to Bill, before, actually of or -- will will that's because nothing was of about we say, until to talked end of of on But I time a year. behind year, don't really I can basis. at our it, that came pickup XX-day -- our mean our kind

XX-plus, least occupancy think like So same was as thankfully, one down it's It the big it may it's in movement. in not ended may It's other, it like quarter. first the it wasn't -- been February, at there's much our XX basis be points sure movements. it's code year. XX typically we're not pretty or the or still I way drift ZIP -- where any we mean, the seasonal. does but I'm much I do through not but

William Crow

it's gave portion it you challenge leaning coming embed on equity issuance maybe others on year. But funding so feels second if you would and about the more And heavily which I from, little just the so It this is the it's of maybe, you're like bucket I'm unnecessarily bit of us right. be on helpful sources from. area than and uses. I want Staci, All equity guess where coming assumption. guidance to a

Staci Tyler

come as We'll more whatever just well. for cost 'XX from the equity time, together us prudent us. at certainly were markets guidance, the to if equity. away at were the to issue monitor to certainly and debt that putting lower rates -- for down shift seems We capital building markets reason, it more as can a lots to We sense of the get for make just we easily debt or if,

We in year. $XXX in the have debt maturing million later

fund lower those the if that felt, but we And then where build make that's sense use debt. $XXX capital current when included see to million, given evaluate today. and So and acquisitions of have options, we And an most could we that given equity the repayments. in to of wanted we that shifts. guidance, seems the of we that's stayed cost we'll just starts the development the for capital $XXX for cost million could cost need equity in that total But assumption versus the is to just and to shift debt, maybe easily not our

William Crow

fair? the overall outstanding goes that At by that million this $XXX down this Is debt point, assuming you're year.

Staci Tyler

That's fair. Yes. Yes.

we maturities That's With that August and have correct. the in December.

Marshall Loeb

debt the norm cost of sheet I capacity amount our that shift to as a balance evolve, position of that just have it balance any It's assume not it safe does sheet very have -- Staci of materially will it don't has we'll Bill, a It's not our we're sheet. many short-term it in where fair -- will career where a we're a that in strengthen to It's my of we kind remember debt. I been if as like of lower trying But to our we'll today, much, think historic balance -- time trying and said. equity than helps. and cost so back have still

Operator

question of Khanal comes Samir Your Evercore. from next

Samir Khanal

When guess, expand L.A. you market where color page California? a at I the Marshall, Francisco, you're at on as slowed in Diego. then, more looking San NOI can you what kind well, Southern just breakdown, considerably. provide on San growth the bit in looked I and of provided seeing California And

Marshall Loeb

that had But leased or balance. in I pulled to we've bought, down us space leased. to is would took we it of But little XXX% We down vacancy get that's same-store had bed. San get hoped put foot XX,XXX portfolio, -- our it's bit a was Sure. Francisco. to now say there there. growth had what and than vacant. in got the we -- value had Samir, that we've a San a and activity We've XPL now Tulloch vacancy, -- longer -- some our that we got about that's left. half Francisco, the then really impacted on And a occupancy that and That's add

in reading great been L.A., like little they've maybe it, where both historically. city those more North feels We're and of not East It those the market. It certainly and been you Shore, a San stable. great. it the are through read layoffs in we What Area. And bit had a has Bay it's and -- stats lot watch in a Francisco the North stabilized. this, in of little markets kind more in not technology Bay the of really have city. Those are is We're Bay markets,

we're And in there, you get L.A., Empire, especially feels Inland and then the Inland in the East. not it into as Empire

some That out so have the really red it which hot, in get your Bay, back And some lot of now was the more in those And of ports doubled. South little a We West out over almost XPLs and think, you like bit got markets. and and it is rents we then ran have given and up, kind skis. backwards. retreating mid-counties they're space the finding than Empire come they in markets. have Inland stability, They a

been and it's about really we've Thankfully, we've impacting our than been L.A. reading -- and full, really hearing portfolio. more

thing, that this we'll about But if that it's like We as most the own that something have our -- address. But for a probably like us, we've because it's as instability, -- off in we're our we rocket, market, they've said a of X% that of usually it's one. a gracefully about had you as ones it's couple rocket. that feel year But lands I in a turning at lot. L.A., takes which it not spaces look NOI

one hottest markets. of it So was the

geography that. but go things and turn, to lease when and And we base, enjoy in run-up, buildings like makes nervous that's we why diversity the we in a right, diversity do tenant -- like little or we our like there's no can things too. Florida, and you it Look,

next gone opportunity the there. have good We it's In the than throughout. peers, most to those admit, stable the markets been of love have saying they've been would markets. the creation that from has talk get our thought, good, a X to who I've those gone, like a we markets. That's San the or leased. historically I -- to lot. to of Area, know, find value to maybe longer Diego Diego space need maybe San I'll taken were Bay just stable But We'd great I in one bit don't little great

Samir Khanal

then talk And what similar down, mean right, a question did in supply have about to your just guess it. second coming development I Got is half, stated. starts. you I second the maybe peers which on

starts? ramp about I So I mean are could development we your you you thinking up how mean, see that?

Marshall Loeb

Yes, And I X mention. hope slides so. I'll helpful, if maybe it's

rather call our the Investor wish kind I of to our was slide a Relations, Zoom go XX what than danger. -- if On Here's a it call. deck, of Page starts. you

So you It first pickup. fast people can quarter look. much come show now. And that's they've year. last And quarter all kind how of be plus won't of the sizes. I year But expect down that a look to last will to similar fourth

empty. back, pretty of store So there's are when the to do be going come shelves people -- the

that on is by supply vacancy XX range. -- can these impactful, way. that slides, then pretty has size And the both see really And the not CBRE Page me, are That's to where come starts the year, much, you if because have big our in bay space, it's down institutional. is pretty over the as it's shallow absorbed more, really past still gotten that maybe the full, not and the less by box

of on the see and we'll starts. or people we slow kind So where of modeled we've as the for $XXX modeled our year. prudent, starts. We've really back deliberately, heavier think towards the when our it being million. modeled starts, That's moving we're end dictates I more as We've fast as go field

go. us G&A, having on try cost fun. permits our right the we least the isn't if relationships about we'll everything in And the they'll about space, which better contractors, having and the prudent the think with -- business ready inventory we business, decision. economy GCs, our can. hit at long-standing the to general feel mentioned, quickly the want to hand, certainly, I mean, that's it's long-term I think -- we $X.XX a Staci people but why get earnings, as like And That's as having that in as shelves it's

really it in deliver there'll I to supply a because for about to effect environment, I by up for this that's certainly other can for capitalize some be but on and our good several -- industrial opportunity be a to think types, good where pretty that catch we hope should need like I that company. And that we quarters, product demand it, And be should a compared quickly. lag

Operator

from comes question Tibone of next Green Vincent Your Street.

Vince Tibone

going keep supply dialogue landscape. I'd like to just on the broader the

there do your of rent you near potentially portfolio? overbuilding are building industrial new in declines supply your the any to markets, then competitive And about markets for your be within just of estimate you're also, type with where and So and what concerned term? light market percentage

Marshall Loeb

for get say, Yes. up really think shallow any supply those aberration, helps can Vince, bay, they box the big expensive XX% get we dimensions, questions we was those typically to of more had us, don't -- supply. I break and we'll XX% an architect if that almost plan landlords. we of of it narrow front is awfully and competitive in Because spaces for although a awfully long, awfully and

you runs get -- the the loading So and dock-loading doors like XX X things doors awfully the rather than loading, the long, doors, for that. forklifts get

to So XX%. XX%

We've case the said, X inputs there. And wrong, the X than of that we're we've supply good rather watching, watching And I'm and early. that's besides in most, back supply. got that it's pulled where we're sites I'd welcome. would X be starts mentioned markets quarter bit a kind where that quarter earlier, X there's and to be Phoenix. maybe I've me, Austin to I That late of on L.A. little

that's try then the a going And market. and to take year some of to again, let there us to months be there'll clear calm, So out to we're supply will think deliver. the I

-- as we So from how go? But feel it the the let's be inventory we the bit do gets both a we're start, shelves really do field never I the pressure when to it's markets. let's long it, corporate want said, little watching like fast and the pull team to term to got in watch be absorbed, the a But today. and patient closely. And have that -- are we're sites trigger. not on We've space we've not putting in

type backwards the come than I've the rents big of not rents now. that any seen I'm say seen I've lower L.A. right especially than in -- a thankfully, where I'd less product rate turn, turn actually That's our the is, vacancy one other because in and market, only in aware box.

Vince Tibone

all quick guidance? are one guide. that. within have you really that follow-up the same-store releasing spreads Appreciate provide helpful assumed able on color. I Are 'XX That's to just cash

Marshall Loeb

We not I really have not. all been One, because haven't we that. that accurate, disclosed have

is I think our in occupancy, Thankfully, parts last and XX.X%. year, same-store. our maybe supplement, X this was same-store to

think I budgeted be it number. a We've XX%. good will So

number. just coming I I would what think record. off a spreads. is expect a So re-leasing It's And good

I moderate will year. think rent the this growth

I think still it'll will moderate. be positive, but

us. think similar. would our that actually, our re-leasing to I basis, Each embedded materially They be I for year But year. a don't see trend quarter with on better. growth, expect better got spreads this changing GAAP was I last

follow hair follow that it a that's, should re-leasing just And it, case will number, that's probably pretty modeled, or cash we've well. -- the without some. maybe so as much what moderate in below a And does saying

Operator

question Ki comes Kim Truist. from next of Your Bin

Ki Bin Kim

Staci. Congratulations,

Staci Tyler

Thank Ki Bin. you,

Ki Bin Kim

cost and you than comments back equity I that like go to to an of of your of wanted guys just balance made. Marshall, So your flexibility. you the mentioned debt. you financial cost mean, some lower have is sheet excellent And significant

decent that's more at up to a thing -- buy attractive? thinking for is a different it historically, back you the your you where, portfolio Or has that is given all very don't has deals? bit guys, so situation large-scale Going change deals. philosophical on portfolio, to I a sell do But larger-scale maybe ever end think portfolio does or having little that been not M&A when chunk, EastGroup you as of known

Marshall Loeb

you're moves, of everything did to wanted. we portfolio, NOI Bin, unique what I That's look, Ki Yes. to the like we We're right. buy make want reckless about San Francisco was -- that and but percent XX-plus think, we was the situation. don't I'd a one, just think,

kind underwrite of the by reason don't a enough we that net clobbered being and bigger usually I'm somebody modest, to like don't rent the we think growth is selling that's make lower and real to want higher assets, probably of we you levered either -- cost when like Or things the don't like We and just willing -- IRR get of portfolio and of those that. things twofold. that. you usually the cost It's

lot ask So out the get usually, we we just homecoming -- queen don't a yes. a and we

to usually look, up you think, end it. we -- those willing we one lot we to up get with we sleeves scale we're love grow opportunities what smartly, a for, we're a competition portfolio and it Usually, people we of roll if becomes our that our make But Blackstone the Area, found bids. at if did where a outside number of the to in on to draw work try win don't shareholders. that find, you we attention lined So for up, more maybe works like But and I'd and only ProLogis more about that, them, it find can certain all and bidding to or portfolios Link. Bay

Ki Bin Kim

portfolio approximately, think look like? deals you have Do that discount does And a today? what

Marshall Loeb

that all of a X we've something is have were. or actually market better than of you don't if look it, but those. timing -- was call the X we've broker think saying, months, it It's I last unusual -- kind of value majority things because in where a not was more. done discount a of in to we buying. really at I situations most When moment better put the it they worth one-off situation, hard X about finding they in Remember, time together we've I gotten bought and at probably the every unique the there them, where portfolio, in -- something the they're

and was of buildings in -- think recently, -- was Atlanta. it round. say, the bid was where make So one we not where fairly second on there to I Georgia, did Texas portfolios, There it a were still handful we one I'd in

can still and And broken but I'm you an bid don't they offer may or X the premiums think sure on it, so now, different it But it's I was, market still portfolio. premium one on what buckets all be there's into then, take large and even it the I they've a there's -- about that on. of just a

offer buyer. their out preference parts of it. door the still people is usually, we'll take it kind bundle get human of as or say, But of probably to of it one to So on an nature, all it much any and

we willing goes we worth it's and down moment we Thankfully, like like can in -- to we you risk got today. the people it we've look, and if your say, at there's it thoughts are to have to sell like to that like first It's be X/X other then got cost with transaction and be have the certainly all we'll of and take than effective So I the know mindful the and find we you'll don't historically, part, time. balance it, a that. about on your more Or XX yield sheet of want feel just it. I'd of But will we love line well, portfolio X/X but in that that. to it, or acquisition, we we

Operator

of comes Capital question Markets. next RBC Carroll from Your Michael

Michael Carroll

I wanted development. circle your back Marshall, on to just regarding comments

be kind in to pursuing Or new do development or EastGroup competitive see more to for lease-up need do in So your of leasing? up set process? the aggressive see need some starts, right broader you projects to lease you now

Marshall Loeb

mentioned, mean don't a both. think Austin of in bit short as competition it. answer, I in Michael, we're have we especially watching but said, give middle little let's we Yes, I before clear little development Phoenix, the in underway. mean jump there, to of a a and But Phoenix, the I feel I and on we're And yes. ground. don't bit we the full a

our want but of their And customers they to lease product. I'm would delivered. is roles to it's be and it Phase leased, we're out visibility way would it you will it's existing the got "Hey, the I tenant X that X -- going run brokers call say, Michael, If work going the XX% Typically, reverse, Staci when in to park. promise we're I've another that and of also got rep And be inventory." out. out. proposals I've see a

So that's why we build spec.

out there. get that inventory we'll ahead so more putting started out of and And

customers building leasing our in it issue. as we X Phase it your quickly rapidly, Phase really model. easier X isn't to really to becomes try land a we a try the kind then just proven because we really, buy I reactive And we've similar me, you and it for and to get park our process and It's manufacturing mass question, moving that's adjacent buildings got as And doesn't want a as to them know our around Look, tenants, makes then helping vacancy we're putting critical like and or to and know, Phase more park. the than that of up, the solve to we and me. Phase then of a really close within market, you product, X we'll of to hopefully, can, can, X know going grow is really as get up,

there people clear say, to space that little really that now, full on those to even jump we every a see in right calls. markets. while, like reactive Phoenix, of that's we're though we'll once that a into a and in ground lot out there's we're full are the So with in But bit we'd Austin like before

historically there aren't of in those they're picked X, growth top right X our And our X fastest-growing look, portfolio, of the at the I in country. if markets if cities it

And don't one I be the So to inventory to that quickly be not want third the developer but to follow then pretty need be markets. developer. think will either. get in may I too We we the third early, absorbed those don't first

Michael Carroll

that broader more want leased you Okay. guess, I larger buildings of the in of directly mentioning that Or are And are those compete yours? directly projects up not get those are kind the you? with kind market, to shallow might market, outside that you're properties bay the competitive that they

Marshall Loeb

markets, us it delivered decent there's kind quarter it's our shallow that's that of may the big -- -- hotel. wait like, of right In box to being out look, well enough let's good that's No, really if affect patient. a maybe or that's be bay X really doesn't being and to downside decision, or Yes. those vacant, delivered either doesn't amount That tell there's not as a X, much long-term there really thinking.

hey, we that seeing a we've -- put for go paper there's because out. play land, actually bought got reward we're this to how being said just hopefully we patient going break Then, to it we Hopefully, things sheet a on quarter. get we and ground this of

hopefully, how at it. monitor the kind we're of that's So picks it And We'll during up year. looking it.

clear get quickly soon fairly as those. on we'll that to starts moving As

Michael Carroll

on you for mean completed just to are you me, like have and all go projects? predevelopment doing then Okay. decide And quickly your can what you vertical the work last delivered? one once I how it

Marshall Loeb

It X got was kind be -- months it used of our to answer.

transformer, order push XX%, -- COVID, XX% maybe maybe it, it as year. we'll long we're but It's probably now, to still And from time. peak, switchgear, Electrical have costs all down back that's to the to as equipment, things During a got XX it's towards come months. year green I equipment, thankfully. construction lead right X guess the electrical like the the that, energy, getting about a

is chain but supply So better, not the it's perfect.

Operator

of Fargo. from Jason comes Belcher question next Wells Your

Jason Belcher

Just or taking weakness not industries, decreased you whether others? across about be space wondering little than more more pockets others different seeing groups there or could that aggressive any others tenant a are your you're strength any of might talk if in bit have or than abruptly if maybe requirements

Marshall Loeb

of a of one that's is projects up picked little some and maybe but Sure. Construction, Food things and bit, government that, that. beverage like the homebuilding, odd, off-late. which it's is maybe kind

the then either later, food and direction hopefully usually mentioned type some construction, firms. some -- logistics turn earlier, tenancy the -- And seen are if first I think I as first and beverage. third-party the in we've So things it that

up gobbling contracts still think they'll And when ones them. activity first there and space. be seeing picking out turn, things we're the I from think So I up

some seen distributing pickup Also energy kind a within We've lot energy of of within so someone beverage. demand. food I little. more a pocket green we of or kind think But we've batteries, -- that and was working those in has it medical. And seen our maybe and of kind medical. batteries, conversion, been portfolio, a because had related new But storing

tenants products As prescriptions that building, a industrial have online. an or of number pharmacy, we an you one, where aside, basically it's but order medical a

of And to for -- Dallas seen them a picked so California pickup market, the relocations from couple of a we example, that that we've up.

Jason Belcher

your agreement? incorporating your That's you about you escalator just average remind can also if then can the rent where you're talk or rent whether on of into what any you all increases portfolio. signed And secondly, bumps And and a then little getting contractual across are lease just helpful. aspect the leases that newly and us bit there pushback is

Staci Tyler

that the a We've seen increase, now have couple to new X.X% been up an we're our Xs. portfolio on we would of in range. average be say X% those working years the would definitely toward some been signing, X%, would been of that. where And in ago above seeing it's say has cases, norm we're leases I the X.X% to that X%. But In average

So definitely strength still seeing there.

any from We seen that not have recently. pullback

So that continue leases that we're be X% for range signing. in the to X.X% new continue, -- to would and our for expectations

Operator

Morgan question next Stanley. of Your Kamdem Ronald from comes

Ronald Kamdem

Two me. quick ones for

of Just for portfolio. growth the commentary going sort back rent the

bit give And you was think said a curious color maybe more you positive. market. little there. also But by I if can around

But slow. higher you I the think go through lower are are the sort That curious on the L.A. end, helpful. would end? what be of markets, that ones on be of may when the sort

Marshall Loeb

market. a think the above not growth, expectations re-leasing rent market rent our probably Okay. spreads, Ron, for and inflationary, hair our I growth, market but maybe

type, add XXX points for because our I think the just lower. would is basis tradition XXX I vacancy to rate product

to that maybe So may you get you mid-single to -- digits. get

think And I pick up. will it

it will better falling is think in with supply/demand, 'XX 'XX mainly so and into be I demand because much. off

been has X rent I Atlanta last better but Florida strong a markets, were a oversupply, market Miami, X Vegas of strong. markets those year. at was good Central been Our Florida, those the mentioned still say markets with have I well. is I'd Phoenix growth or Las market. markets embedded best know that our that as

the And now So supply, in going only we that's California that. really growth. rent -- ago, falloff next months better it's to is few would years And to spread off months, our X think told portfolio. it better -- be to over with have a driving you really may thankfully going it's over the XX I think but the the following X next get take I throughout

Ronald Kamdem

to all the opportunities market -- Or you think to it. thought, seeing pretty unlevered still acquisition sort today or distressed trying be based in where anything are is sheet to mode? could to in? of equity we've you're of on Got guess, of on how close I I that issuing. touched then opportunistically, the there be Just And for And sort sort wait-and-see the either we're in the balance that just it phase. be are that, out EastGroup much figure at the suggests come you curious that in going may

Marshall Loeb

although industrial not into you about will reduce mean exposure seeing estate banks Maybe things, And not pulled needing real not bucket. instances. commercial we distressed, get to I but distress. still we're and have banks that seen they're read brush or that broad

that supposedly One it of owned the all, not had they a very all at properties they and bought, it seller sold But they long we -- the liquidity at loss. needed maybe types. the to was to some hard it's brokers, sell, they industrial, what told sell office about we and were were able product other or portfolio, their what within the versus

don't know group little in and a of a I and leased, make if having still they I'd bit money, building, them a very thought capital, we and attractive the contract capital their difficulty it up let was what yield tied to So a got and able vacant assumed then had property. were sourcing were we a distress, where call or people buying on it their but into the position we stepped gotten

to some an And not date pitch closing a on is the So those, trouble path and where having entity of level it little agreements of meeting or table. may it's be describe don't who's to developer your confidentiality little our but trying we're yes, I that know our it's be them -- sell closing -- bit not guess -- without but bid, a guess someone needs surest I'm it's we may bit highest the something. to your stress, violating I a we're whether capital squeeze, distressed, kind to a I it's

Ronald Kamdem

Right.

Okay.

maybe So just All maybe right. distressed, or something. motivated not

Marshall Loeb

you. Thank adjective. your like I Yes.

Operator

comes question Vikram next Malhotra from of Mizuho. Your

Georgi Dinkov

on Georgi is for This Vikram.

Just X can is where if And issue? my a you me. model it of any be color sector demand question segment risk, placeholder? you anticipate broadening quick nearshoring. from credit ones Or it second you When from a provide is a on would

Staci Tyler

Sure.

represented an is back that points the XX was of and revenue. credit, about And look XX 'XX of bad $X.X basis XX-year guidance, million basis debt bad we revenue. at terms into tenant credit, have which our basis debt guidance, percentage run just baked debt what If our have the of our points has And our actual guess, that's we which about the anticipated, On really points revenue. bad $X up in in I level. average, included 'XX, XX million, in we of for

So a last major to but change year. we last a don't from that be believe reason higher, any have there was really would year bit

really identified a or the industry we negative debt market seen guidance. have particular debts trend in not million credit tenant the don't bad have seemed in detect any any really where our particular But economy, $X and any to a bad deterioration. bit. we haven't reasonable can though felt grows uncertainty us any with some for even include growth it we And Just just of number the given impacts, company, in the just

if story, range XX% but too been just tenants watch tenants on a each list have look we're number on X,XXX that of list It's watch we our one nothing have about significant. we to the leases, reserve. our of we XX% at has a reserve for, where that we in of out And have might a

detect trends So that still no been and and overall no to we've very a small percentage total able overall of deterioration.

Marshall Loeb

also nearshoring. us. strong market on -- then so last there years, own bit a it rather strong X solid Paso that been own, but we've we've years the long-term Diego X And may which their they've And rush, X. steady Phoenix border a markets about XX%, a nearshoring, a But more where market benefit feels like markets El seen from market been Paso both it, temporary. on in now and onshoring, Tucson, has little for the what but than Phoenix and like San slow, is is be and more build best been for a a we were its El

that type in U.S., manufacturing seeing the we're So then we're southern it's half green and more whether more certainly seeing energy, of the related, nearshoring.

labor that strike not the make, it's, whether are least border will quarter. L.A. every just day, we're I those see benefits have push a look, their any port-related a all and to think issues the at the -- it's just given I think the open people companies have volatility Suez to ports own Canal, or long-term decisions -- you fluctuate, seems is challenges but in but certainly have. It in those that portfolio,

cross And I one where we that border dependent Phoenix go go the that it I Diego, -- pushes numbers more to they and have to, those that totally make growth we're cities would border. all to And that's the but and Nogales, to Tijuana, the -- besides benefit San on just not if in we manufacturers that's go to like offer. work, can think Juarez, Mexico,

Operator

to questions closing time. for call further no this Marshall are comments. over I proceed. Loeb would There the hand at Please

Marshall Loeb

time, your But are to he's question, in a few and for us speak see everyone, available, I your office you, or today. care. time all hopefully you too, Staci get at appreciate Take if in I We'll know, hope I free if the weeks e-mail get feel back we Thank and all Brent Okay. call didn't certainly us, soon. to here our conference. there's to. anything to we your you didn't upcoming I

Operator

participation, may today's this Thank you Ladies for and call. concludes now and your conference gentlemen, you disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.