EastGroup Properties (EGP) 24 Jul 242024 Q2 Earnings call transcript

Company Profile

Participants

Marshall Loeb	executive
Keena Frazier	executive
Brent Wood	executive
Jeffrey Spector	analyst
Craig Mailman	analyst
Alexander Goldfarb	analyst
John Kim	analyst
Todd Thomas	analyst
Richard Anderson	analyst
Michael Carroll	analyst
Nicholas Thillman	analyst
Michael Mueller	analyst
Brendan Lynch	analyst
Samir Khanal	analyst
Vince Tibone	analyst
Blaine Heck	analyst

Call transcript

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Operator

Good morning, ladies and gentlemen, and welcome to the EastGroup Properties Second Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] 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 second quarter 2024 conference call.

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

Keena Frazier

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

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

these actual report statements about more cause remarks most recent the it a may company's our as and undertake known involve XX-K the of information to and unknown our on Forward-looking risks. statements reflect on made remarks, Such to actual or strategies prospects factors about and duty views SEC such assumptions Form We based the for risks, Please earnings otherwise. our or with in that update see available and current on as statements whether and the our intentions, today is are including or result expectations, of future plans, differ new made. currently along release, no company annual press detail to events filings, uncertainties other materially. information, results

Marshall Loeb

an team morning. Good thanking market. team quarter. I'll finding a strong level in another The performing Keena. at high start opportunities evolving our continues in Thanks, for by

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

funds from excluding includes voluntary produced results the operations conversions. X.X%, of Some rising

reported For although same occupancy has FFO prior Quarter was truly our share year, Average at per the in with down quarter and over strong, per was trend. FFO cash. which were XX.X%. decade, spreads similar Year-to-date quarter occupancy the cash same-store were share quarterly X.X% XX.X% leasing XX% historically XX% GAAP long-term XX%, respectively, a for year-to-date. quarterly end exceeded X.X% second Quarterly the at quarter XXXX. from solid and and re-leasing XX% at is and rose XX%, NOI GAAP and cash, results a

sector, our Finally, of strategic combination falling lack our about I'm as we the raising we're acquisitions improving stabilize a second continue with have our with the new pleased portfolio. geographic the of on over economy and year-to-date, supply. optimistic allowed with pushing This of and performance tenants to leased down basis economic earnings and quarter future and XX% summary, top to path XX end creation to view We're in rents, X.X% us XX development. the via focused of quarter most rents diversity our throughout an roll rents, In revenue from diversified rent XXXX. We our environment. regardless points value

acquisition front, the XXX On Raleigh market enter Exchange. to with we're excited the

constraints mix follow the attracted of and population to which stability long-term presence, companies for capital, growth. offering growth we're number development, technology Raleigh of presence, to to due is new educational a similar and economic large the university markets topography estate

creating the to portfolio, criteria: growth guided thus profile be Our the by NAV the of acquisitions continuing one, and be opportunities continue to patiently to in well. We're one-off as raising secondly, find will accretive; acquisition long-term X market.

have wins our our of read Based starts maintaining solid $XXX We leasing some by market on pulled prospect are parks. the within starts interest. forecast had development million. and quarter our strong our before, stated we're we've through, As demand XXXX during

the side, is process. and focusing in construction prospects are other the still On decision-making deliberate later

on pace. last promising starts, dictate part of In time follow this ground environment, of seeing the XXXX. the seeing, are the ultimately terms we're on to demand In we frames trends. decision-making X heavily to starts we're more Based weighted our

in first The for square below starts. industrial Starts consecutive below levels thing, with XX have the past X decline X falling peak XXXX materially been quarters, the feet. million

in say believe when confidence will and/or our guidance, now steady market interest I'm demand, the reasonably turmoil to to then speak passes which improved opportunities. Brent including fall create will community to the and rates election settles stability begin continue contains within within happy pushing us this several I Assuming global tighten and development business updated several should ultimately metrics. XXXX XXXX, and to rents topics, allowing assumptions rise.

demand As goal sheet on than our capitalize land base our development team's combination on peers balance hand. to and our based opportunities private we have earlier our that strength, in permits tenant the improves, the of is existing and experience,

Brent Wood

morning. Good

portfolio execution our our of the for success our quarter same last for involuntary solid our $X.XX the share increase terrific exceeded of quarter strategy. of per second midpoint overall Our the X.X%, range the per excluding gains. at the $X.XX of to results team, compared quarter and FFO conversion time-tested year, the guidance continued an of reflect performance share

access we perspective, continue equity From a to the capital market.

million in and price price these share the -- $XX at settled gross agreements in an $XX maturities additional forward $XXX an initiated proceeds and shares we directly in of this when at in for were shares for agreements are million, an $XX of available average issued shares transactions have mid-December. we with for funding gross quarter, $XXX.XX. the million, million average Debt During proceeds minimal common forward year of August Collectively, $XXX needed. million

XXXX unsecured facilities to maturity material In extending credit $XXX renewed July June, agreements. to the we July other from our There XXXX. no were the million changes

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

decreased increased company. our the and to interest and debt-to-EBITDA XX.Xx, charge best unadjusted ratio all-time Our representing to for fixed both X.Xx, coverage

$X.XX cash proceeds same-store property quarter the year X.X% were for and quarter latter We prior opportunities. occupancy anticipate $X.XX be we compared to that raised from insurance-related for increased prior prior raised our and our guidance. year, claims. represent involuntary increases raising third the our to entering well positioned are the as per on to the with via for estimated acquisition half more program. In respectively, our growth second in $XXX gains guidance. results ATM We direct the to the We of capital million guidance by the year. share pleased for $X.XX closing, a midpoints $X.XX result of currently a of capital increase FFO forecast the from conversion per of and excluding we forward, midpoints X.X% range Looking share periods, Those and $X.XX

and quality have will uncertain portfolio in and multi-tenant rely we good of lead our our the of into the location the As financial in both times us the and past, experience on to our team future. we strength,

comments. Now Marshall final will make

Marshall Loeb

trends value and population while historically I'm and market is creating. and grow and chains Thanks, the positive as I in of which like our working balance capital we're sheet. lower remain shallow In team the strengthening the our spite benefiting high positioning portfolio meantime, our quarterly occupancies migration, the we secular proud of our trends, and year-to-date Internally, to the as near-shoring vacancies. has continue overall to environment onshoring such starts. markets levels of Externally, uncertainty, pushing bay results construction low And several unsteady, evolving the rents. closing, from main Brent. long-term In is earnings logistics while the continued led

our quarter, questions. for improving proven We management each in our well buildings diversity terms call in a a markets ever, your also is tenant expanding our as have team and up public our now record, is like open track than sheet base geography. long-term our We'd of with stronger quality to we're both portfolio and the as balance

Operator

Your from Jeff of Bank question first Instructions] is [Operator from Spector America.

Jeffrey Spector

what have after further? if acquisition which I question again, how I it's things has election XQ? guess up, first could open you past sounds maybe again, with And I the on my are will cut like focus you changed it or since to market, the whether opened seems -- believe that guess, the

Marshall Loeb

still But we least financing, of markets we had to on share just similar competitive. more were that, seen heard things and market the the it's of And where of would to due portfolio can think bit can more this there, least a the portfolio number quarter were contracts wanted dollar us competitive than the gets micro a election. as being a diligence as newer get describe or a It's because like pushed to newer specific working buildings, we you in at Good even pretty and buy our happy Jeff, and dropped when it been more existing our as deals to in and to first raise certain acquisitions into falling it bring way What little a of question. at It so that case. we up one-off we've able similar, to our than awfully getting a much couple before you've recently buildings, and and what I seen X We've I under last Marshall. of week path bids X contract, are it little buildings, seeing out felt we're as rates, those. quarter or were it through people Xs. guidance X we're secure cap probably represented kind as closing. soon as more

of some We're that the So raise. a to pricing acquisitions, were guidance times, out we and pitching we still other buildings. liked couple that find able drove on on

we where to we Difficulty] two. in felt how these our can everything as shakes given guidance a hope the in again, We'll more we at due probable were maybe close see. not, they increase we [Technical but year out, are So diligence and And raised due diligence like follow-up it I that. and later can see

Operator

question from Citi. next from Your Mailman is Craig

Craig Mailman

you're occupancy you down? give your kind you that or in of to even Marshall, growth you uncertain product rent based that kind to kind bit declining more the just Could push some back anything tenants that Or were I your on throughout and to market little also, there a half average you rents I is of able running of rents good, just push bay concerns that think sense your And brings go market placeholder Is there's back how of your the comment of an robust guidance. a environment? about a wanted quarter when continuing in smaller to just markets? are much portfolio. about know still is ahead for just the slightly of flattening guys shallow demand you're

Marshall Loeb

Craig, say both. of is, and Brent the ones to touch try I for I'll what little I and I'm those bit you a catch thanks. all would points guess,

quarters many growth growth. embedded been how having been GAAP you've our portfolio. have in the an in that XX%. row I'm X, And our have a industrial spreads of still -- have quarters row. We north in We're pleasantly a while embedded re-leasing probably us X seen We surprised

the right, little saw and -- have showing to Certainly where X%. kind spiked of X% effective they asking a rents. they it rents a That post-COVID. feels did market I admit They've and national not rents, to report maybe slowed. those slowed we're was You're me, to high were

So maybe mid-single more digits.

little those that there's square So of they've budget but kind dips could no next a within year, year, in of pretty throw like you're -- or have thankfully space here been us some And where although anything there, this move-outs throw trended shoots turn one years been at slowed here there it. that's -- really given big in our million year, that, things of feet, are we X we slowly kind construction XX have up. our now, those has still this month-to-month kind green really that of terms known -- We've anything or feel will think don't has improving going ahead hopefully have our or just major embedded of and and terms out I catching budget for that any we're every growth would boxes has supply then on about right. like rate a sharp occupancy, bit, month the of been of lag

didn't more positively. by It's by but conservatism I at it move our it's kind it did of And but little hope, budget team, shook least we bit move lot, that's where just a a glad out. I the am

than the see hopefully, a economy XX that. we'll -- So can we're we better do year. to for a shakes can And we little how out, do the one little up

Craig Mailman

And broke one I your already feel like I rule. question

market your break to going I'm know on the today? forward is speculate of XX% balancing of trading the ATM to it You just given kind guys the but to you where like table. left talk multiple, clearly directly going the Can again. So you want did don't guys of use versus just the on the I versus kind guys stock you where -- forward about versus

there levers? thought X pulling those So just the of

Brent Wood

Yes. whole have in were I leaving into at the But we tried time, gained can fill that went jump to I'll June tell that Marshall on probably we very were the that what holes. mean since point, Marshall that we to XX. at in -- obviously, share I black. have But pleased We Craig, table. we a the we're $X.XX and

So invest potential -- to we incrementally certainly, reminder, And post the capital. running and we've we on still positive to X% just some -- rate all acquisition our good team quarter opportunities, more great find got revolver to X.XX% news But an is positive interest opportunities the end. of as about and continue had variable cuts quicker, rate, more interest rate. that a

trying that with the down. derisk and little a some we bit taking of So to were that forward

couple reminder, always have after close, million just know range. coming, which the our payment a mid-$XX As we a quarter weeks of is in dividend we

of pleased to -- looking low off at rate staring it. So taking were or the stockpiling X% we risk do some table, putting versus interest kind a

could time you the it, we at back hope $XXX. and at we with a just did that issue in You why you it $XXX next and when days roll do that -- something coming it make you I done $XXX at decision at say, it. Look, if look we you and have you like

kind I've a like it -- So XXX(k). likened of it's

would like dynamics it, equity you're the over we've but always really some time, at You when your peak, you averaging -- you're some extent, -- you're like right invest the always at extent. but looking of way issuing to been, to into you're

if to the moment, blend at And the then us -- like looking the you're allow and was the hopefully, holds gone does were things having in It XX%, so you're some Certain and and risk have up. could component. third that it. of and glad have it made sense table. you're way, evaluating you off take in another forward you some quarter, attractive we But maybe we'll down price the And in then.

But So a do, lot of in always it we that equation. pieces. goes into bite-size you the as do

course else. getting capital And -- didn't so not in pretty a making of of bets business anything we're It's we terms make big any just normal or together.

Operator

from Alexander Sandler. Your next from question is Piper Goldfarb

Alexander Goldfarb

rule. will to stick I one question the

in case. look we in sort generically if softness rates, you still about really at still and Interest Jobs pretty year-end, is the X are So ago that tenants then the everyone now spoke along. of economy. good. guys changed economy humming to XX months the expected that's nothing's The

It's like and rates. So the we like certain, lower it's election more gotten not not has has like global interest suddenly not it's improved. macro the have

going and it's year when at changed. for the obviously, of earlier doesn't nothing what's different. on, caused tenants back up, a of look in late seeing from last back this versus really in hear you're now picking demand So be given there what your view, down year. this improvement to to seem you anything slow sort year mean, good tenant increased potential to perspective, But really half I has

can just sort you that? parse So of through

Marshall Loeb

I the it's year, gotten mentioned improving, as right say and and heading better, It Alex, second were was slowing. if direction. I'll the we I leasing leasing. it's really went and of development it's earlier, noticeably again, it's not theory. maybe probably a quarter kind you back it I felt And the like would third of dramatically better in say of end half this What try. but year of ago, like more is felt decisions the And wouldn't end year,

their eventually, And not cut just year people people to gets a to still I road, the think every dramatically new -- seems XX it's rates think you a the people from always down at much I used away. when. And interest So days just seem a as plans put kicked hard about hear norm. maybe better. I don't were point, interest rate days ago, then think an know off Everybody I of to think get expansion landing XX maybe and soft and -- don't get have it's even quarter it's kind some landing. we'll their

supply. to we And of for we're need are used us, years -- other think expand we we sales our in and earlier, thing and okay, so the what to and we're -- construction drop now in interest and to rates I has lower as and to back of X they in to XX% market. there, seeing. And maybe the just we're space market at year, to mentioned now to still last environment, make months what the that's the go, now we're rolling But like, a to late people I they August feel to at make pipelines few were other about shoe political right, decision delivered certainly need waiting also XX% all on kind a our next week end, are going decisions, the we're the our are the being chaos held helps need starting and this used are that probably on drop I operating peak. into to mean lot sometime starting next to today and of is people

for and taken a yet, So hit the be shelves there's will not just while. that the for be there's restocking there. that it to to no going inventory will much that's don't that shelves, take I gets tenants a as off the get reality inventory while coming, know but supply a

Operator

Capital BMO Markets. from is Your from Kim next question John

John Kim

I of high is is was the with of your might yours if not be this -- to the any far to other results you you that. on if wanted UPS far you some wondering tenants results, portfolio I realized about in maybe to could attention concern to XX I'm of is that with as I ask really that asking struggling you yesterday, any cost. demand? be top not And labor But it but in had paid specifically, profitability, as overall, their thought of this comment extent That if reflective tenant yours. as as a leasing

Marshall Loeb

been versus real and or Sure. under -- public I utility cost kind economy an why the as we better, this you tough economy to diversity what's on interest insurance because X% it when that with and even times businesses, in been insight launched I'll environment cost mentioned high say, for And have why UPS I everybody up, and feel say I wish I'm improving. rates in I look, our I any of it large we it's things it's everything up, long that's not -- times during prepared higher get does think our cost, again, is a else. levels XX glad doing read hard mean, like It are like line. is like felt certainly debts that's expert said inflation because the at labor and top are rolling utility have for up, we that. to like would the issues tenants labor companies with rents say, cost I I've for our remarks,

So getting and tenant better. we it like like the feel things does diversity, are

-- reserve, where but we're a still and feel what on we firmer better keep is -- year-to-date things economy watchlist Although like we bumping thought or our our It little run the be would we our budget, got ahead of debts footing. that. it bad when will we

tenant and we've and them, for that the appreciative of geographic hate the I'm I yes, got. diversity So

John Kim

or... major a UPS Is of yours tenant

Brent Wood

XX, they really a don't tenant. It's put less think percentage name even any I a likely our them or up. they're with not been a not revenue. than our would on the tenants They know top have X,XXX which of in again, exactly space that them, are tenant don't of brought or large But two they've side we has are. a they're not X.X% I tenant a past. major they're what scale. And our X,XXX but not major team

Marshall Loeb

Yes.

but We have UPS. not FedEx, as much

Operator

from Thomas is Todd Capital Markets. KeyBanc Your from next question

Todd Thomas

process wanted has issuance where trading talked And more much $XXX. and ? back to little does in of capital go today drive investments bit you I a to activity on you underwriting acquisitions and into bit is almost that afford a provide lot to little new both just capital thought the to aggressive raising on does about at where the just this your later on deployment? maybe and in in capital the and with an ATM new been your markets. a relative starts the also the ability you maybe a be How the change volatility uncertainty quarter, the regular 'XX stock And and to there thresholds year forward window and

Marshall Loeb

don't And it's Certainly, that right wrong, it were not little Todd, credit to always run up we're our around, Marshall. I've line have want question. those capital. if way to and decouple tried as Good a bit. -- we don't for other or we bidding, the of

$XXX we kind of of some a -- end share, got least of of know and acquisitions that that in it -- that we things a kind in were Brent felt were a mentioned, pursuing the ZIP into were we and we of is So as like, couple around got knew which at $XXX was running more we've quarter, right million still earlier cost consensus. awarded a $XX were a the we $XXX, okay, that NAV, I last -- -- blackout we with towards of August, the pursuing equity we're and mentioned couple we our will mortgage as uses we maturing code

We $XXX. the at low keeping discipline up regret acquisitions. I moment. because So the from light certainly lot don't was you bubbles just cost want on a like buy that later equity like you really, And to green field. our felt it something today. your a We -- But at better like really a it

Officer point, purposely buy responsible were what at regionals Chief you I have in the and that of Investment So Brent are operating one guys a so for the never you had to with. both it, live need kind and really we that

one that So things are term buy and we for too, And term. like let's NAV that like only your the long that again, last driven building lease as not stop, to or we've field by things down as go long on always circumstances is going as us shutting like next for world create fast long the we'll as discipline the starts, some to and we that. unusual COVID said, really

follow typically leasing we'll or goes development on X leasing, issue way And as the the know go we'll isn't to So that. field. to start as Phase anything fast, we X and a solve like Phase

I it's like our So -- for our model simplicity.

Operator

Your question Rich next Anderson from is from Wedbush.

Richard Anderson

the apparently, one I'll guess, stick to always myself. twice. mailman I question rings

is just to your up XX% to a set profile, better, the nudge just subtle growth you in in I'm right would of guidance, to wanted of -- outlook? same-store really increase you if sort an meaning the the send points. also curious it spit it about that. it last And hair or XX-basis-point increase quarter? so, is a sophisticated science, on so more But -- XX art things getting from don't out an the or you kudos. really you signal to it that little. see felt Are I'm how very just but like systems increase a impressive, your are it -- same-store XX% curious basis a signal than So up your necessarily And came same-store that

Brent Wood

-- in obviously, it. We've mathematical, points. more Rich, you it's this better. from point, your It meaning thanks. our that straight rely really at would continual narrative bubbles to the with up steady, months, happen X other then fits it say But it to did the more X it other, and better really It's of point, basis done you we got really you've the the that plug slight months are actual, we to field, in -- assumptions seeing from we of XX that improvement. result combine and just

originally we points same-store beat by basis had XX what First quarter, of midpoint we projected. guidance our from

This of quarter, We a to basis without of the as movement. go by been we beat steady points. year have were pretty pleased end lot pretty XX much back the we maintaining

we that seen picking accomplished where So in. what versus building it to you've up midpoint been actually more the has positive move

So and market the to the back we we're growth guys If up pick that the additional continue up. can can allows end pick of that we hopeful that year. the execute through

out our we lower last XX.X%, point months a were of that comparing XX%. this the last would but X the was of half that year we're projecting somewhere than, year projecting against year ago, months, occupancy in and little X a say, for back the I we're running bar last just around we're falling

So it's high a just bar.

like can toggle momentum And up. as is I what we as our you guidance. So we've do our those of when at ingredients been really fits little produces slightly, our projecting there, are that either it some and table, of way. look midpoint is do pick the the much, same-store far been But you with up able that But to here up -- occupancy better we've to And our the well. guidance we're feeling from think than as bits that positive. pretty we say,

Operator

next Your from Carroll RBC. is from Michael question

Michael Carroll

that expect, kind do of you activity when these chance you portfolio occur a starts there need that XXXX? on guidance. Marshall, to earlier some in touch to are wanted ground on know, the call And development that starts for if a break what's mean, get those leasing current to just you on quarter as I into think your pushed those? you start out I waiting projects? -- guess back-end your will highlighted of doesn't year. that really is you weighted I I be this your within see so what more or

Marshall Loeb

little would last butter. a we'll yes, bread phase kind the the well I Mike, start both. our -- of I that's gets say it's that, and next. And pretty typically, mean leased, when

our supply 'XX, they create waiting like getting that example, competition to really South a there's in It's closer, start to Carolina, of hit of spots of Phoenix, ready next few Greenville, kind amount we're market like and Austin, stand. point that building. for that already kind the the Given where up and entry really where of some fill for and even

we that, late of look more little we look do a of probably So at supply. given but the at amount it

-- terms there's Brent of all start? traditionally, than telling ask give and get street, the and of $XXX and then does number of more there's that their I million when of we're bit then you of delayed. stresses if It can each is how and right, sometimes love of I that beginning our it optimism over And $XXX fund in it field then million year. So would our a at in say do take that. out it starts, we usually what the And little kind is

It of getting the and and permits longer each approval cities seems longer we're in. takes like in

sometimes, that. that It to one they not away. So go usually slip one from next can make things quarter like and the just it's

it's And pretty -- field The as as won't So starts. than can of affect in supply I usually of that, been submarket we is area feel kind as sneak fast what say supply Thankfully, good type of our phase maybe is or big about and as the and $XXX or box the which go Austin and we in that case. doesn't we'll and higher that's been there. area here us but and the another leasing and which that. of market, the million usually leasing goes fast Phoenix our

Operator

Thillman next from is Your Nick Baird. question from

Nicholas Thillman

little to XX peers, markets? from in stronger trends I your bit on tenant economics. bit lease what the noteworthy seeing maybe the you a little that of your guess that are be assumptions and Or the baked a here a touching the like last activity half? helpful. behavior over in any you leasing in Maybe just XQ. timing on bit Brent, front? you're in lease-up on days, seem more lease-up executive second then, half Relative development for second That little just year, would positive for And

Marshall Loeb

some take the and half it we time leasing some that like, taking I'll and Okay. within like half got things portfolio their -- our even then still are first wins feel does people development, it Nick, first terms nice feels the of development leasing leasing. within in of -- again,

the at early have that take don't maybe so to was think their really frenzy, space gets you -- have me signing needed that we 'XX. to comment were delayed now that recently need there's guys finished the the building you're about construction -- brokers of the and leases in options One risk they painted take while I still under many to and rep the the to tenant today fairly

So at and looking only they're buildings waiting like that. and finished things

matter would Positive the you an see positive. any one through so working if -- year, supply absorption quarter of reading shut to way years, I and going equilibrium. growth, off, absorption positive rent is market how much every out the every supply it's us, every the reports, -- So just of of market really that then back California, are a certainly, markets anomaly the would are still to ahead economics that for get most the you east did brokerage pretty say its

had Diego, The negative markets X L.A. our some markets last be really extent, been of absorption that but actually materially San would and X to they've historically, San quarters. the best for to have lesser and Francisco

that there. So great given the net waiting net that's has quarter they our positive every is and of Brent? a that where are in have where unlike runup, Those much market absorption matter -- do for don't back how there, other hitting the certainly had supply rents -- and a I markets absorption. other markets market just It's to coming we're negative now. but are clearing And any stabilize.

Brent Wood

of then the assumptions tight, we've we've our conservative Frankly, Yes, to assumptions, development more kind been widen leasing time. lease-up we just out XX-month with seen development portfolio. get pretty traditional have period but following up on in the -- lease-up lease-up really our back

can you We an send I exact and little, number. have very

terms terms little back of baked We year the of speculative NOI in half numbers. very contribution the in into the of have to

for the them So this anything lot get contribute. point to sign in there could terms leases, a for be get you and left positive the of time not in of to them you year, done there's the -- build-out time the incrementally as get tenants occupying,

you, so of what a leases. for terms the there's not It's budgeted, lot our tend the -- -- little goal. for in going of aggressive that one really again, in front your it -- the is with if than back back be, to But budget very get would up out to can catch a gets slip lease-up in you it from with more away and of half the I starts baked conservative say bit existing FFO not thing we hard anything little we impact year the in the that's development, that.

take conservative has to history told approach. us pretty So a

the XX maybe sign as build takes longer in. Even out the and to tenant get leases, get wind XX Marshall or when earlier, days up you said

anything the of terms into year So baked half terms of not of there's of impact. the in much NOI in back actual the contribution

Operator

question next is Your Mueller JPMorgan. from Mike from

Michael Mueller

Texas. mix completed geographically you've to look in do it like Colorado. of North they'll you starts the you developments under or at you recently All I be guess do also what construction, as lease-up But more if XXXX, diverse? looks thinking you're concentrated start think were Carolina out and the XX of in could Or your includes Georgia, June you could like that in Florida more as what's what think be were completed?

Marshall Loeb

different think and -- Antonio, Jacksonville a those, Tampa good Miami they're like When in such are is have Austin, of we from so certainly El states Dallas, so we you run And Orlando, economies. the then and diverse -- Paso news Texas big I and San about Florida. such Houston, Texas, kind lot different.

Phoenix. late maybe But late -- will of to really probably ground first Carolina. a probably we'll in monitor we're break in next markets. down this near year, even portfolio but timing site year South We've We'll year year, That next allocation So and and active in remain airport development kind We're next year. our really land quarter Greenville, Colorado. those or in Mesa this there. got the good

think then, kind I shallow our acquisitions really, even of to toggle better geographic is And sometimes and forth acquisition back So And bay, long we'll own well-located, seems really and we the earlier, attractive. multi-tenant return or the term. -- for ultimately mix risk development. the it window to than goal we'll like industrial maybe the into buildings, open tie question market looks the value add where between I'll

picks of markets. and next for for that we'll a back slam up, us. economy land good we our Raleigh, of cap waiting it a bit. and and fall kind But like Nashville will have do I've mix, shut geographic -- and acquisition if develop sites think come couple We'd a probably we being sense and the the been year, rates down rates can to to and in make should to we'll I be new a again window good developer we'll find will markets go where within interest

So as looking those well. we're at sites and

Operator

question next from Brendan Your Lynch is from Barclays.

Brendan Lynch

investment You there's no mentioned officer. the in that earlier call

informs and walk it operations Maybe what sounds ground. same the by like acquisitions on managed just arrangement? of structure that you philosophy the or So team through the could are that

Marshall Loeb

much assembly Phoenix to responsible it from in Orlando, And to you'll than region, enjoyed negative Dallas market way thoughts example, every And only lease, living you for I've line. development, Okay. always are the and better way, it And so living cons, in for you its that our every I and to structure -- and Sure. has Good so structured not worked pros the at obviously, seen Texas, know and you're But that see or -- structure. fruition. And A corporate the I there's I've if done from it Western find the them every was you then acquisition and through to enjoyed been question. I we've Z really way really all are Yes, that really, in in acquire could can responsible an like we you're new -- REITs. that of or I see cons. renewal, kind pros you're had is, someone that. it's it it things,

an usually rents and pull Officer the things higher of have the kind the and thinks is Chief than that. can when person, you like that officer a is are push and they Sometimes person operations investment get operations underwriting Investment

set So We want you dispositions you building it's and do you'll have got know that can of kind there. And you well. have not like, and call you can a kind a a you that batting little fast tension area, dispositions of and to our went also our as find can we'll grow typically opportunities starts what there. it of you hey, -- order as as say have then bankrupt, bit of if to call from, tenant really your

both I us. too, And had a Brent Texas, admittedly our for model words well -- the than So different Brent's I'll peers, put we're worked but were in we had it's mouth since estate where up love all and in that got come kind and the Western for to with region, your you of responsible ideas. real you're the new job that was I everything touch area

Brent Wood

in size, the an have Board the thing eat on a add the old field what you investment you level I apart does vertical it's obviously, organization, just And eat a But point. to that, a as some to guys Brendan, it bill think cook in." investment internal I and you very a it to get as Yes. have you a we parcels process, And little said, committee. committee groceries sort still -- growth of to get we Marshall would the bit, depending set an pick bring us of you good but basically very approval -- are team-oriented. the "you have

Marshall in and But of if some contact, guy has calls regional question is he there, know he's happening Texas, about So head lady the approvals. point got and it's, obviously, what's that the or a to answer. one

can it's be a -- I to well. and really think that, lot organization seismic as So fortunate helps think we we're our still where I do it a culture

Operator

from is ISI. question next Your from Samir Evercore Khanal

Samir Khanal

saw -- sort reason report provide in we some asked is we construction one I where and up markets. were some color -- pace of just your -- the new starts can saw we what at XQ wondering of market of seeing. I'm identified on give pace calculating of the supply seeing of kind were what that Sunbelt you stronger of Just markets of the these your idea you're The Austin in broker starts the major Maybe us Florida, XQ some of level. in an you're some national in over kind you've

Marshall Loeb

seeing put I maybe all that if notes, you morning, one asking numbers I'll I -- of we think from -- from out of remember think any I this the our memory, [indiscernible] peers report brokerage second one the brokerage think other it. investors, and that got Yes. It's this The of some about I for the I of just other were -- picturing No, Page I'm even we've good doing made any and -- presentation. starts. quarter investor listeners, say I'm XX

to first peak were they -- their nationally now XXX a But we've XX up consecutive gone been quarter. last late X over square So in XX quarter. don't in a I square feet from we've to calculations, guess, going from guess, 'XX second on probably emphasis we've quarter the bit I were million probably little think with we'll if get the about I quarters. And by guess, for below feet this been of million million

starts kind The that and XX%. other it that's the mid-teens up that as suits kind lack metric are to maybe percentage usually into or XX% I'm build of XX%. with had it starts in the them call of the speaking of teens, remember trying a in number of peaked

But So up larger projects it there and that little probably build-to-suit number that. pushed second in was a driving the build-to-suit bit were started quarter more. more

XX but construction about lot what using available an and we for low are to nationally. further would some Phoenix looking little and there's Austin So in was a there lot peak of big at been gotten that in X out. Dallas, -- example, XX Dallas. supply land it's million And that we're typically the down specifically, million a box. markets we XX% as through The is that, feet. reading know, really XX that say it's had further more supply example, don't got it's a usually, Dallas million supply north square given growth of But pipeline. the they've it of It's And I have see in still where and reports, about the

it's given like big County out, And into things like further further Charlotte, Rowan last just So this and run in boxes. further and pushed you it's get out in supply, that. getting where

of kind absorption watching of cities Phoenix -- a markets about we're a feel really supply, the and because not clearing in Austin. positive is And So good great and and it's absent in those each news the we Phoenix of and lot we're those. Austin, economic there's growth in lot submarket

notice way without were seeing. will that numbers behind that's the But I supply have your much and were than bit a it work more what conversation And did helps. they we So it. hope little really of its through with I CBREs them

Operator

from Street. Your Tibone next Green question from is Vince

Vince Tibone

Are targeting you We this for the fundamentals. funds about more seeing increased have competition some strength now private from heard that in new just players are bay shallow acquisitions? strategy, of given

also the cap seeing rate what I'm earlier So you're about creep just starting rates wanted curious back into comment ground? up you made to And on follow on cap the X. to

on to lease or confirm comment a that's that building Just building rents wanted that whether does large with at specifically representative a mark-to-market? market of a

Marshall Loeb

little in probably path. more -- helped We I fairly probably we're out closing. certain I to and thing forward where and again, mean that's move rapidly say where acquisition over things this is all quickest. diligence dry and quick competition. or mean can On basis, Vince, contract and contract point someone out have due the powder. market a seeing we are yes, it's of or -- the forward has to close we most between that someone closing the type we track ATM needs a buy and certainty compete we've closing. a one-off us the have been to month kind can We're a think of of can the things able falling we either of something well, we I

secrets run-up and the within we've the pretty rates more kind is bay development well. last mile been works that funds supplement, grows, where at Where if have be a raised. press X of the release I that public dollar there's in well-kept XX-page is kind guess of it's that, kidded there investment are many and have and size the competition don't more shallow secrets. I we've -- of cap to during Xs hard have XX-page not think seen

in little and out the Xs. were Xs things larger, I there. bit our competition those more Xs pursuing it NOIs were larger we a was say we in some is it, portfolios, as as so would underwriting there and were XX-building looking be Xs, markets. in-place So Xs, -- at much And in existing They portfolio, within the

I of a as lease variety say, or term. average WALT, kind And weighted guess, of, they

wasn't little I all we're us off. time. next And to but it bit a rolling year, better maybe little water bit, So guess, was that of cold you a had or

and compressed. it size when rates going Our better opportunities seems are the to there, certainly up dollar that be the off more cap attention one-off probably draw to acquisitions gets get

Operator

is Ronald from Kamdem Your next Morgan question from Stanley.

Unknown Analyst

on [indiscernible] for is This Ronald.

to get to it issuance back the of some how comments looks like. wanted equity Just and on

with equity guys that debt some half to issuance. going of year You off the pay are back of in this

issuance to looks are of up. take where Just there come commentary of some around paying we play Should that equity that forward looking off with maturities like and debt sort it get kind 'XX, And debt it to paydown with you guys forward? to Or down do leverage how is are you just equity thinking guys ticking about here? that? see then continuing debt if just

Brent Wood

And environment goal. question. Yes. of been the a the just it's byproduct than I just I appreciate any say more would

of where most most haven't "Hey, a debt-to-EBITDA and source that's said, can which shareholder, where the evaluating let's mid-Xs, attractively headed for get we component continually equity. We create the the our long-term are priced sub-X capital necessarily been It's we to in that." and lower even to of been than our just value

seeing some. interest rates up back We are

money cost receded and or is points the XX-year in direction. probably headed Our basis right peak XX-year -- from XX so its of is potential

bit has view go but it say would comparative still equity we're to I would alternative as it at continually the alternative maybe of or a before moment, it. we a to attractive, watching ways an

our would be investment field hanging year, long we first an I to glass to good can next half, come the But for with and had reaccelerate, would predicated if would -- now, in subject pipeline example, we all leverage hope immense half continue especially runway that in debt. Obviously, just continue I say, the the leverage think I again, ability would think of the So continue will is, the it's lowest in where be are a opportunities, development flexible the me rates in yes, the we've to in term, full we in the in there for team thinking project price first you continue, would ask low company. but to the us. equity price that 'XX, it down, if to moment. half little we balance that add of history if if incredibly have find But sheet, news

It's NAV bucket X, of of much best kind more So -- over financing to sources Marshall, and the when X past to premium years, prior have about the that X had years trading you're into. just some than intensive and running a nice interest large want are at dip and you rates in a matter I probably to daily and the a Staci conversations cash we you're had in which evaluation. daily of management do just lot been more and

it's it reason, frankly, economy think good more good But assume and in looks for early into to safe terms direction. headed another summarize, forward to it's to be toward yes, of then I can the tap hopefully, I But is when would there the more attractive. debt, And a strong, expect headed in right probably it equity. we look it would and and into alternative look having that 'XX, viable to

Operator

Your from Blaine Fargo. next Heck Wells is from question

Blaine Heck

lower did metrics. of Or NAREIT should it the full just that Just you've second but mix indicating at moderation XX% seen Spreads came good improved a spreads. spreads that see, cash came think a leasing in the when back was potentially maybe update lower spread look were some on basis were they to recently? quarter peak comment levels which you the on issue? follow-up on kind during whether the that than was the June of they second like to rent a we expect from leasing with quarter-to-date Can in quarter, quarter half you rent see your

Marshall Loeb

Marshall. it's Blaine,

touch on with in of mix It Now volume. then kind have of post the the good Mississippi. leases the into a an couple And that spreads we I'll was was, one that than and and a market building X hitting indication happened in here NAREIT tenant larger of quarter thoughts of the more volume. on X update left catch. Jackson, of

and on probably positive, So about renewal again, -- got basis, that was we'll on rate that's put we we it's GAAP that property half our done. a which, but It the run putting market. -- are

will still take math. headquarters. that our It So Jackson will our be off

moving our and moving But in to out capital Phoenix and we like terms of of and Raleigh, it Jackson. Austin Nashville,

to last portfolio, although our back as and was renewal our a assets And we've in bottom in year-to-date. slowed of just about take can. we that it kind our shareholders things we later to of to happy said square we that that one. in can in it us -- position some about our it a size then we feet as of looking we'll that XX% actually couple the bit did more earlier on year-to-date. from year. manage a -- the timing Jackson maybe to than I'm but of X done, dispositions little were So be quarter is best bit, the we this that think bump guidance. We And be us of kind brought always -- one that close the last if feet market. year-to-date the kind got the had This well more I of will property the year, we portfolio signed we of We've pruning signed through sold we XX% our way, It's leasing, And owe year, down. lease but all this was square kind feels numbers, more and little that and given will of glad that just within

And a then pickup. about quarter-over-quarter, it XX% was

disposition again, hasn't the month our U-turn, shoots. I've think up May I slowly or but I been June X embedded drop and next spreads, of with wood. a knock was the And month but by really, us keep those lease the can rent here improving. -- green phrase that similar So large in the used a And well rent few we for on months. It kind of in kind Jackson, in in think really set

Operator

I time. Marshall now the to back call will at closing There the are no Loeb further remarks. for questions this hand

Marshall Loeb

know on question eighth and your interest to time. available Brent for certainly third, I Thanks, your everyone, we to for in tried fourth one for are second, I That the question. for keep and your Thanks you and EastGroup. it call. I time, following said, allowing apologize

So again, e-mail. just an a appreciate everybody's give us call, us drop morning. I time And this

Brent Wood

you. Thank

Operator

you. joining. for now Thank has conference you all the and ended. Ladies Thank gentlemen,

may all lines. You disconnect your

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