Forward-Looking Statements

Transcription

1 January 2018

2 Forward-Looking Statements The Company's assumptions and financial projections in this presentation are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of Words such as will, anticipates, expects, believes, intends, plans, seeks, estimates, variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that the Company expects or anticipates will occur in the future, including statements relating to rent and occupancy growth, development activity, the acquisition or sale of properties, general conditions in the geographic areas where the Company operates and the availability of capital, are forward-looking statements. Forward-looking statements are inherently subject to known and unknown risks and uncertainties, many of which the Company cannot predict, including, without limitation: changes in general economic conditions; the extent of customer defaults or of any early lease terminations; the Company's ability to lease or re-lease space at current or anticipated rents; the availability of financing; failure to maintain credit ratings with rating agencies; changes in the supply of and demand for industrial/warehouse properties; increases in interest rate levels; increases in operating costs; natural disasters, terrorism, riots and acts of war, and the Company's ability to obtain adequate insurance; changes in governmental regulation, tax rates and similar matters; attracting and retaining key personnel; and other risks associated with the development and acquisition of properties, including risks that development projects may not be completed on schedule, development or operating costs may be greater than anticipated or acquisitions may not close as scheduled. Although the Company believes that the expectations reflected in the forward-looking statements are based upon reasonable assumptions at the time made, the Company can give no assurance that such expectations will be achieved. The Company assumes no obligation whatsoever to publicly update or revise any forward-looking statements. See also the information contained in the Company s reports filed or to be filed from time to time with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.

3 Profile Multi-tenant Distribution Property Focus Major Sunbelt Markets Three Pronged Growth Strategy Demonstrated Track Record

4 Steele Creek Commerce Park Charlotte, NC

5 Jones Corporate Park Las Vegas, NV

6 Horizon Commerce Park Orlando, FL

7 Sky Harbor Business Park Phoenix, AZ

8 Alamo Ridge Business Park San Antonio, TX

9 Industrial Real Estate Stability Limited Capital Requirements Lack of Obsolescence Flexibility Location

10 Property Focus Multi-tenant Infill sites/supply constrained submarkets Last mile e-commerce locations Shallow bay industrial Competitive protection through location

11 Source: CBRE Research

12 Customer Focus Location sensitive customers Compete on location not rent Users in the broadest portion of the market 15,000 to 50,000 square feet

13 Property Selection Specifications keyed to local sub-markets Maximum customer flexibility Clustering of properties around transportation features

14

15 Types of Industrial Buildings Business Distribution- 87% Bulk Distribution- 9% Business Service 4%

16 Geographic Focus Major sunbelt growth markets Emphasis in local economies growing faster than the US economy California Texas Arizona Florida North Carolina Georgia Nevada Colorado Economic Cycle Diversification

17 Property Locations Properties Corporate Headquarters Regional Offices San Francisco Denver Fresno Las Vegas Los Angeles Charlotte Phoenix Atlanta San Diego Tucson El Paso Dallas/Ft. Worth Austin Houston San Antonio Jackson New Orleans Jacksonville Tampa Ft. Myers Orlando Broward/ Palm Beach

18 Property Net Operating Income By State (YTD through 12/31/17) Texas - 35% Florida- 29% California- 14% Arizona- 8% North Carolina - 7% Other - 7%

19 Growth Strategy Targeted Development Internal Growth Recycling of Capital

20 Targeted Development Development in markets where EastGroup already has a presence Benefits: - We build park settings - Creates sense of place - Properties designed to EGP specifications - Increased returns with lower risks - Meet customer need

21 Development History (through 12/31/17) 45% of Portfolio 185 Properties since Million Square Feet $1.3 Billion Investment

22 Recycling of Capital Sales of assets with limited upside potential Reinvestment of capital into higher growth properties

23 Internal Growth-4Q 2017 (Straight line rents included) Increase in Same Property Results 5.2% FFO per share Increase 5.6% Occupancy at end of period %

24 Capitalization as of 12/31/17 Variable Rate debt $116 million Shareholders market equity $3.1 billion $88.38 per share) 24% 3% 73% Fixed Rate debt $995 million, average rate of 3.6%

25 Dividend Growth (through 12/31/17) Paid 152nd consecutive quarterly cash dividend- $0.64 per share Increased or maintained dividend for 25 consecutive years Dividend has increased 22 of the 25 years - increased each of the last 6 years

26 Dividend FFO Payout Ratio 90% 80% 70% 60% 65% 73% 81% 77% 73% 70% 64% 63% 65% 73% 70% 68% 66% 64% 64% 61% 59% 50% 40% 30% 20% 10% 0%

27 Annual Total Return 25.0% 23.4% For Period Ended December 31, % 15.0% 15.8% 14.4% 12.5% 13.7% 13.1% 10.0% 5.0% 0.0% 1 Year 3 Year 5 Year 10 Year 15 Year 20 Year

28 Total Return Performance Value of $100 invested $220 $200 $180 $160 $140 $120 $100 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 EastGroup NAREIT S&P 500

29 Things to Remember about EastGroup Properties Track Record Product Type Growth Markets Financial Strength- Dividend Value Creation

30 Resources Web: eastgroup.net Phone: Fax: W. Parkway Place Suite 100 Ridgeland, MS 39157