EastGroup Properties (EGP) 24 Apr 242024 Q1 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to the EastGroup Properties First Quarter 2021 Earnings Conference Call and Webcast. [Operator Instructions] This call is being recorded on Wednesday, April 24, 2024.

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

Good morning, and thanks for calling in for our first quarter 2024 conference call.

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

and and as measures call use to Exchange definitions Litigation non-GAAP measures earnings are our Act information the as in safe press the defined call our to on with some most defined to the Please these available will them and conference recent also FFO and G. Private measures results. Please our the Securities Regulation release, non-GAAP this of note that to and SEC Act that PNOI Securities and the both within further furnished note financial contain the Please our regarding reports under of Investor our XXXX, our GAAP financial statements XXXX. or Act harbors of refer statements such in financial a Securities Reform XXXX forward-looking as reconciliation of that and website today during of periodic page are of our supplement filed for

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

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

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

produced X.X%, of rising operations results a the involuntary Some include XXXX from conversion. funds excluding

now, quarterly exceeded quarterly occupancy the share end was for although trend. with same year, has For spreads quarter truly FFO is leasing the FFO Average solid our quarter the at NOI Re-leasing for per long-term X.X% strong, XX.X% a occupancy XX% same-store prior a quarter the were in which, XX% and from down was quarter. Quarter historically GAAP over decade with XX.X%. XXXX. reported at cash rising cash XX%, per first share

and diversified we XX and sector, economic value of the near-term X.X% XXXX, tenants points and diversity rents, more gate rents, have for the rent locations. to pushing down with us XX basis our raising the while portfolio. Finally, future to at environment. In strategic paths acquisitions being regardless earnings most via on summary, as focused creation leased the allowed the rents our stabilize quarter pleased with XXXX we're quarter of continue of Today, the we're our of economy. development. and our end revenue performance XX% in first roll We to mindful This view out from falling throughout geographic in top

university presence, strategy to to to allowed estate technology in further mix of markets, Las to self-management growth. market, the of large stability to the number acquisition years. we high-growth constraints patiently capital, the population front, presence, looked the for right search to market, of long-term term with Vegas, attracted the our also other we've the are new follow excited in development we're Spanish we acquire due and This excited our us returns. On Ridge we to In topography and year. move enter which targeting markets, to Raleigh at acquisition continue a economic educational for near the similar earlier keeping opportunities. We're its market growth companies raising announced our which And in

guided accretive; growth be profile to and well. criteria: X continue the will portfolio, NAV to long-term raising be by secondly, One, of creating thus acquisitions Our as the

products. As before, though leasing million stated market starts demand within our decision-making. longer, we're starts [indiscernible] with we've development deliberate developments through, seeing XXXX of interest, on $XXX continue prospect we're our read solid our and Based forecasting our

the second ground to to half As stocks time always, expect ultimately trends. weighted we're follow seeing, this to more XXXX. Within seeing demand we the promising of on we're X environment, frames decision-making dictate the our on pace. Based be I heavily

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

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

move risk. interest XXXX development fall My off years within developers begin including is forward. to topics, rates The with reduce us need legal guidance. This Brent belief several to opportunities community allows to line will rise. that global second turmoil within and/or now business prep the and to trend then prior assumptions take is completed when development our our confidence the settles, speak will time stability in or if and who've materially closing and investment rise site significant to work capital traditional site

Good morning.

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

newly expense perspective, the approximately due which equity-based to the From we incur G&A accelerated continue quarter. granted the expense of for our about X/X to first annual a retirement-eligible equity of in quarter market. $X.X reminder, the employees, a compensation during we typically primarily capital access million As totaled

per settled an During additional $XX share. we gross $XXX end, shares million. for the average quarter, an we at quarter of And million, $XX settled all price of proceeds after

in this million mid-December. $XX price additional an of average in still maturities commitments price August at outstanding and million at with We have $XX million average year in $XXX an -- are share $XXX. Debt an minimal

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

total XX.X%, increased Xx charge capitalization unadjusted ratio XX.Xx. interest to to to and was debt fixed Our market and debt-to-EBITDA coverage decreased

forward, the involuntary claims. We midpoints $X.XX healthy. uncollectible rent $X.X periods, our by estimate from revenue. X.X% reserves from which for cash FFO the midpoints quarter by was $XXX,XXX bad guidance. The second for unchanged of Looking the be to compared debt million in remain year our the we guidance tenants primarily result $X.XX for increased per to increases our range $X.XX or X.XX% the occupancy and the of for prior conversion of gains on excluding same-store to is unchanged quarter our Those represent in insurance-related driven X growth that range guidance. of share prior and to $X.XX remained in collections is first in varying uptick prior This industries. Overall, to

experience the economic were first our by increase to Much quarter for closing, lowering $XX.X results, times considering as increased lead of the uncertainty both and prolonged location we quality into on starts we less to of pleased of in team projected have million. of rely guidance portfolio also uncertain our higher and And and capitalized to relates the future. $XXX,XXX strength, our the interest the our with development good our In will We G&A bay our costs in shallow past, environment. we year. the and as a especially us development result rate financial the

make final comments. Marshall Now will

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

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

Our portfolio quality of quarter. terms each and in markets improving is buildings

diversity ever, up as call would expanding base is sheet the stronger tenant our our both balance as like now open geography. We questions. Our to than our for in well and we're

first question the line [Operator comes Instructions] from Jeff Your of America. of Spector Bank from

about that you your resiliency resiliency, the say. should Clearly, market talked the opening -- or comment there's the on remarks, in in the right, Marshall, sector. angst here, I on some

could bit Like bit uncertainty the because just comments Is on more consumption focus longer, little bit guess the Fed about E-commerce a took decisions around much taking Like too economic it because is rates? and I that it wanted tenants I talk rising. has been simply question remains my So this a space? strong. a of and to more? leasing you

to there. And Happy color. my I it's add resiliency, yes, maybe take maybe and I And the ahead. a -- kind today believe look if we of Okay. back, a it look at look a on and Sure. see

industrial now. So think last all run the -- historic then -- the years, it's handful us great of as of And well kind we've had this peers. this run we've as right our I had

of kind couple my analysis, I for you what's and was it. with as a keeps it's lot drop December short-term they well. the thought of pushed holding along in that now. it things if I June, touched been And everyone global earlier and now through think more up think, out then rates. retail about view of that, like is consumer and our troubling a combination the portfolio, You were it interest unrest. And year, I quarters decisions interesting March, of And to just on maybe like in getting went

They're on confidence. really We more wait taking our are have prospects maybe and little a people I waiting conversations business spaces, for and vacant think see. have a

chance just we've down, on really renewals supply the our go Relations where -- been Investor there's sidelines. put and up have There's sector. on our we in of in slide coming it's people if it a to have picked So deck, lot -- to our Slide website, XX, the a seen people our

see. lot there's think I wait taking a So a of people and

resiliency, I'm dropped. right see business XX% we you'll What down, rents, -- several all think of as I isn't And Carolinas, our we'll year need mentioned, of that Again, then leg confidence. several if Florida, near-shoring you the e-commerce So have is -- now, pickup year moving in a of companies slowing supplies to spurt. quarters, we're a people Texas, third still glad leased. pushing onshoring the is see We're not markets. and I kind growth several -- that probably we're stool Arizona, several

great now, playground. about pushing off. are And been where I years few people we longer still of right term. kind part fit of it's I'm a our really So the excited think

about leasing, X/X off think is tenants it environment. which get or can a let's you an a saying, is a expansion, little I awful existing of are if development people more foot wait maybe XX,XXX of lot think settled and put XX,XXX, I quarter X our

Okay. ask And then a could I follow-up. if

also will commented third Anything elaborate Any that the on later markets quarter, tighten 'XX? more in you more specific into You to think timing quarter, fourth that? 'XX.

X a of starts. look, in shallow quarters box. bay counting bigger had result product, had deliveries our hopeful of availability I'm we've -- of kind thankfully, less drops And significantly -- a and availabilities less than the just lack and as has

our little I So prospects. news. good need I'm kind with XX a this just economic I people days, tenants in we of keep as thinking confidence, and think our gain bit of

development be there people come another and back the to And when it quickly. use go think so land And don't I up so I our type, our that be to development do that permits, of a and gate much lot And out the private balance won't we'll if come our think will do the inventory developers, the retail they development teams we really the on and have for shelves. that's local than we'll of on product then of sheet will -- competition leg and much earlier a rents pretty pick regional and -- is away have I peers. the able store, pushing analogy, the why

of line Markets. Borden [Operator Instructions] from BMO the Capital Eric next question Your comes from

for just the appear they be expectations as you they hoping development to yields I of could your pipeline? year. the I increasing. the compare opportunities how a was bit acquisition rate want the in talk remainder to about speak current to little the mean And to I cap

leases. far Okay. ago question. although are our as that development noticing back maybe really maybe we a development Sure. Good leasing, year signing And

always But to of acquisitions. been were want as in half a moving then don't I our kind peak. good So acquisitions, quarter. noticed We've we It's We yeses. was getting made for signed discount more projects during movement it just we the that. the more the as dozen at just not rapidly market

a as that date, on what Raleigh bought So average. excites year are the -- for over just roll under kind X weighted -- of we'll in, about $XXX have have acquisition I projects me buildings if those and a $XXX little we mentioned to well million million, old a

been of is we've and the company. raises matching raised the equity that new, growth dime profile yield everything buying the gap on kind dime going forward we've versus a And earnings. going our of So the to our it added adds a in quarter,

we nice So view way. as this a

kind has cap it's to You and It's dollars put needing and -- has kind and Ford someone been very were but nimble have third can last -- has that, close month, about and the way. differentiating move amount, That's we've and team opens of have buildings capital let's quarter factor close large of when to but fourth This window of This quickly. the to we have year. year X able close one-off allowed able -- Brent some wasn't more competitive. competitive so it be kind and past. But even in kind up so a to certainly in slowing, That's be -- when we bought raised especially the still out. seeing rates, that rates the up, and doesn't pitch last to we that us is been of being a the of and the having acquisition low maybe year, fair like quickly in a people funds has to What roughly pivot really a our more -- development implementing the ATM, a year, with like cap if still been can forward. we sub-X gate. portfolio. We're a or a X things little portfolio, pick out

interest I of the to like think we longer, it the acquisition disappointing more but it's rates going on able look competitive. do think front half for to I development that higher the keep second they're leasing will be year, be especially were

quarter, properties are the and year. It to people able the of on competitive been their think I beginning think in development that a opportunity, front go at be allocation capital still and our first although little acquisitions been I'm we'll GAAP more got to glad get yields the that a has I optimistic Raleigh I'm the find has X.XX% X.X%. new basically maybe type average the we

have development our in at come they've So yields, in above around forma been pro X%.

nice interest good job may team slam building, the when lease return. And to as between the a that that be really slightly brand-new XXX% we think a and risk So below where attractive will done market, versus of move. shut sourcing opportunities view has a rates window delta start some I rents development

the have developers moment really to open, what markets shut So couple of it those But as I hopefully being is think it's buy, in capital opportunities, but quarters but again. I I will market. us back assuming thought of the in I be by we'll available think keep a it's it another now, to be we'll trying the to well finding and think time, and would

question comes line from Craig from next of Citi. Your Mailman the

about of you what XQ in volume. a looks Marshall, big longer. new to I leasing you the a had talk leasing relative that far bit guys that clearly for go of taking mind, had into a that, kind first your Could With little in pipeline back like perspective, just you to the things to and so XQ? commentary cadence though, the what quarter from want are

year quarter happy a more signed Craig, by leases I'm year last Yes. actually first we hundred we did this kind few in a -- Thanks, thousand. than again, of

news, it's good was really flat that 'XX. roughly fourth So flat and or with of quarter

got, an got leases said, got and his good e-mail cases, And it's one in we've of even was of our we've got we one the if get so to volume. our excited activity, field team used kickers leasing And and we've I some when guys So helpful, in from tire description members -- do, I big, this, out. don't but it dollar and there's what more, I'm won't a has has out, think not take sent I little that's I'm people hesitating a of I don't still they want commitment at the mailbox. If not so fear -- if waiting not tomorrow. leases space, people the be available abound, and gotten I

does, I business. the it turns up. see of development So starts it's it quickly. and long-term back feel window. it I'm acquisition And the a for good, and if think I move time But cyclical kind we'll hopeful will be it, being, like we'll look, pretty our

So little want buildings. always look, be we maybe on be and -- said, or thoughtful, all a how deliver a be rather X I'd thoughtful little do we're but and buildings when more thoughtful to quarter delivering we a -- a early said, right, these We've wait let's wait. more or quarter we to X, the

the it's there's pull not prospects. more by comment them I rent, offer but There that the the -- don't but anyone to making the comparison, literally it's to too. trigger, it, are during offer getting free someone out I So prospects there, GFC weren't I'd have remember

It's and got really leases Now of got in red people. zone signed. We've getting them out we've leases the conversations. out

no are when legs supply, we've We're just There's either we the you I really here. And fast and/or of as of bit demand turn inventory weigh going our And down. environment our look, XX% low a me no least momentum broker interest a global hey, again, better more thankfully, think on at and -- makes rates It's as tours, and a back kind lot like than as a there's feeling that. house guess, and things on and things is going little tenants. feel do need to that so I moving secure showing as open no got mid-XXXX, of little side. flip starts into thinking think the one it that we in come to. we're interest X country now the finally did XXXX, So to a side, the X stool. leased. And just and will be holding of up be rates to got a raised you're It's I

hit a Any if sort this maybe to the L.A. and already, contributors year with? Is going is other And looked kind one-off Or but of this you Orlando like there that. something of on? apologies move-outs quarter, were contend partly answered to it this retention?

No.

You moment, -- L.A. moves, broke I moved. up think moving have do X around. this just for but knock on close tenants and hasn't one we a on we're wood, our year, Craig, news The there, good thankfully,

got spaces of messy. of we've can choppier thankfully, we'll about So really been definitely X our X backfill But signed, of It's has those L.A. leases kind as L.A. talking And both one been if spaces. everyone's in get markets. we

we before L.A. of will, puts And longer we before think heal with market and X a to deal then really will lease NOI. And it's call So bed great, which reasonably you -- signed that little that for we to get under, market bit the is a these have it's it, the but the feel L.A. if X% it absent comes can before anything the little a thankfully, back, balance confident normalize we land not else in bankruptcy can our -- we hopefully, XXXX. as term, of has

fairly tenants, wood, because quickly knock X we've a tenant but lost a closer that with. moved backfill on out and one good to think deal closer we hasn't prospect we're we're yet, to to I and even one -- got a So solid going

that that How if given timing of a of of on then baked development that one Guidance kind year. the versus and and kind up assumes the of get half to kind already of sneak need ramp I in. to guidance? pretty much good on And is deliveries the back activity Okay. just speculative could hit to leases side more through commencement you

for I quarters all for example, It's X overly it's to Yes. development will it's dependent, say it's will But so say jump not say in. would I Craig, to starts. I baked. hard go, not.

back the have that weighted We fourth the and year to further even more really heavily half pretty of weighted to heavily quarter.

weighted was were that development less were we even of and if say, about the than impact starts if an we have just a for to in So rollover -- year remaining it only go slow, to to back, more, rolled back because, little this we've the I got end. toward year. be think, if were would did we earlier market that We've -- X back again, X.X% got

bed this put already we've our for to half role year. of So over

occupancy, would development acquisitions on ago, external were how moving but or they I not it say large on like dependent, could really down anything quarter So lot in of getting or other. a is it's of lease there's in numbers go of X say, a parts, or or year, that. lot our the the factors there's going those X terms the no through that banking a budgeting to And lease way obviously particular move there's of quarters lot overly slowly one second or you starts to

X in occur. Marshall hangs we that as a relates quarter, X guide again, big optimistic had like got said, we it out good on being if feel we've or dependent feel our to to, factors there maintained what any about demand as So not and basically there,

comes Raymond James. from question line Crow next the Your from Bill of

you lease wait-and-see economics, much I by attitude cited -- on How if the the tenants. Two-parter could.

down come And second annual Is little a now growth that I'm how better X%, is, have kind of in thinking goes and we tenant peak encouraged So to rate, maybe get ramp-up the of of is up seeing that much got a are they're the X.X%. little as by a rent weakness bit? wondering that to bit might we the some starting part reps in maybe that economics who by. time seen

kind I half maybe -- self-professed, -- is of glass again, don't a plateaued I'm I -- it's maybe. it's Bill, And full. think

construction a say taking I in think think we zone. a I'd I like ran up breather. we're we're X, it's to

right You're direction. still heading the in

optimistic sidelines, zone. economy given or the turns, to guys in have weeded how off the been of the many we'll got kind have business gotten I'm private that really freeway, on just and where construction supply the you're again. And start had into when development a You out

I think a squeeze. going to pretty space be there's big

not -- think tenant So as we've rep, don't seen and perception I saying the isn't not so wait much see. brokers

tenants -- again, and always dependent said, our our especially development so I look, existing because much themselves, is our risky I've the tenants. leasing think it's on peers less than it's

some and see a little historically our a is of seeing smaller see some -- bit seen or market and lot push this until we're low think off the people decision maybe are expansions we see, some I the hold to a you off seeing X, another really there lease. here are year. lot during of I to you of we're probably would thing there. And lease not and in not right is buy that's other availability free their economics are We've let's XX,XXX-foot have given downturn a there, -- we're a And the of what than wait is -- firm choppier things pushing We're typically it's wanting now. ones, the think expansion, L.A. and they kind a seeing. And make other a still rent but we people a seeing quarter leases seeing say downturn, sublease those, -- pretty but I'll in really of sublease. or out aren't whole term the fees

to in internal starts more getting about projected I maintain we're able look, -- of a historically, and we're things And -- wrong. I forward. to think towards happy debt, them year. say will right conservative beat the we that we've little I better. some moving of conservative are X.X% we're people grow earnings proving first we're got that in even quarter I'm still I And -- hope Look, approach we're -- like the our we're more of get down -- our a kind taking and activity. it's this and in of bad and maybe raising tenant the were guidance development spite slowing So balance year. We hope And

you're the our global now, if -- little that a I it. thoughtful right more it's think about I worried are not tenants appreciate about economy

increase you follow to It's on And concerned? reserve. specific going debt could is I to what's industry But the starting minor. any tenant just up pretty watch types? the that list? If the Are with or to grow increasingly bad

a XX% wound was is bit quarter for bit decor wound that little for total of quarter group in bad Our California filing of -- surprisingly sort No. frustrating bankruptcy. driven a Bill, was high-end of X this the up that by tenant, it a Brent. debt up out home Yes, a Southern

that when And a they so their straight-line had $XXX,XXX high. a cash balance wasn't balance. But even you have you tenant, deem almost uncollectible,

was the that So bigger hit.

had of a So amongst X we company the that logistics was tenant. retailer then XX% total And a quarter and jewelry/beauty supply type company.

for You add those was that other those and XX%. X to the X X,

all But reserve XX those over California. total but that were we've space think, only their coincidentally, of that balance got still X,XXX. a it in So tenants in X just have out of I occupy

hasn't really much. changed that So

strong. remain collections Our

driven in fourth increase didn't guide. really we that the and just second, quarter quarter we our uptick So had our first internal really those and third was for more amounts the occurrences in our budgeted initial projections, year by

on. pause overall the somebody really going there -- tenants, be the concern nothing So or that in for one something us being that by of just just year is than giving with us, out to X,XXX mainly other a with tenant. going that's particular environment sort there's jumping by there's to But capital driven driven

Mueller from of Your next JPMorgan. Mike line the question comes of

what's pipeline? I coming from years the you've development next the that game was over primarily acquisitions few growth now or entered wondering, plan building Raleigh? Do anticipate you a

be about XX-year-old the that excited would as door and and in portfolio we We but think out you a and assets. a Again, office X-part were office growth answer, quarters last over that portfolio capital have Raleigh XX-year-old, we our a of building that have that couple but buildings, ago don't position always L.A. a entered view it kind we was our land long picked we we're sales profile into or one us they quarter we was going in one as this leased get process, to suburban that moving say well. And suburban one, left we had the well of we and some maybe and I were get Nashville if the building able question. try Raleigh. you well a all to good acquisition. we sold they Jackson but for growth. but leased our of pruning L.A. were up performed -- We fully sold better all closed. Mike, to time, saw -- we'll And a

So talk that capital, typically where you're your is We and view is slow that's the consistently I acquisition kind historically. opportunities process, it I late, we're then think the trying felt we've -- you. were were of up move think of each find but getting it. the of and and suddenly portfolio we doing to a moving quarter, we than all it about opened just yeses And market up the they -- median sometimes more as way I we or like market

they're difficult there. the Nashville over makes technology are so that state right capital, functionality, presence, things near been all and that town excited. the let's university it part a to that the are So old, very we've We're topography large just high build -- said, they've of accretive, fit buy presence, Raleigh consumer. both year

the Raleigh on I'm And bid X we'll usually keep fifth sixth and to a not with presents -- and markets. we an in to way in of go -- our, this Nashville want the we rents. learn to grow market is market, that learn hopefully, So building probably or we've if And both guess, one. kind trying risk in the a lower or acquisition to is

So even way losing good kind to the a your offers of learn and the to community. know is brokerage submarkets get

we and where a to able Vegas, actually, a in So grow Las markets in us lot last we're you little to move like Las right and some we this and that like be in to we'd land allocation in if still probably the to light both I'll that and were and saw over were week both but in be self-management stones other but of Vegas, we'd bit, sites we we'll acquire allocated assets. some able markets. markets, find can do too, in the under There we lot, like a in grow to Nashville year turn market patient, things. We're be

So to end if that's growing raised markets selling for rapidly of whether it's accretive hopefully play end pull from the really dynamics. of from same plan get And a that something out capital, which our of and we of but with can equity portfolio, promising it's kind the there's the uses the that's Nashville lot continues better, that we or you'll -- X is bottom always see bottom of portfolio. Raleigh

-- I So that's helpful. hope that's

Sorry for the long-winded response.

KeyBanc. Your Todd of next line Thomas the comes from of question

terms to change or of for just wanted of you look months? in the shares I new the would mid-X% Marshall, that pullback here range you're being stock hurdles rate your initiatives, then your you company's change for you, think contemplated? REIT company that just to all given capital pricing sort in have in current you cash in anything achieve. is And heard I an you that of as specifically, circle cost to acquisitions, back your return think few at the capital a Does acquisitions? you I low at can comment which the guess, industrial Is last the deployment cap I in seeing

I you if you -- down quality. really I, probably wouldn't and that, I you're hurdles. we're could say -- if mean the think trading Yes. were we change mean in did it you return probably I I'd

to don't it. find we want the grab long-term we in to also that -- quality. our lower price isn't -- very said look, terms going us, today But the it's acquisitions. it's we'll And So don't we'll very We -- market or stock growth. very of maintain equity but to if it's issuing But volatile. allowed try been useful

the have we debts where And available, at internal capital to that get more the window, thoughtful about So are look, if a forward we just at offering available growth. in of look, I'm done They're all growth. internal we'll late or where had have time. not Brent a kind ATM and luxury before new And we be we've a -- And do markets. great -- team then and overnight layered we've just talked And forever, the for it's we've and looking glad, even markets year, that's block weren't different equity long last available. trade we tried but ATM an something haven't a and of alternatives, we about opportunities.

our of and we debt a peers aware where one convertible did of offering. I think certainly should we be saw it, always

uses worry guidance to pretty and we our buying than, menu, we that assume last we although all credit, kind We later, So there's to year, this option We guidance either. in from earn we'll that's last And going our XXX are. way. the will, a just can our line on I'm that's where want spite maintained a perch not than million can did pulled don't that. And development know and the of a debt what's you of -- spite what run bankrupt issue want matches kind decision, we things just on and people, a if of each year to of been in along maintaining rather fees of out see windows and Look, attractive everything San year. And assets Diego the of a market for the we'll less volatile the we away that, our up. we through that we an that the hit and on little fall. need up now the in have sit we I kind starts see hands in first shakes think just bit, acquisitions some had we that -- but won't need to right we've long-term where market. it's And we're that's and glad just handful like weather in that's

Marshall, in was specifically? year's the issuance which I assumed? a dime. this mentioned accretion the corresponded could about And envelope acquisitions can up, what you But of equity just know the comment of that guidance or clarify Okay. you a rough clarify if of I don't back Brent, then I follow acquisitions embedded from that's can discuss and from acquisition is think if math. that amount was to And accretion you that sort

right will and the envelope or the in guess take did Okay. was I'll But ago acquisition a made Vegas. probably it calculation, did was part back, the way first I it. take was we so first really it second. of take Brent, year I the Las Yes, probably I Craig Center looking back we the at probably what the is Corporate

you that buildings. up which the if and acquisition we window X thought another with one, and So kind of when opening then we about really like is saw starting it felt

are the We that's on then total little to compared haven't but since million, quarter reasonably GAAP that cost it. to it. Those basically, we'll yet, under our we and equity close cost, had report closed to math it what on $XXX yield Raleigh our assigned match and a was the closing take when

cost, share the that near-term it raised equity you count. the our we between adds if that gap delta that investment So less earn over we latest take yields

walk X since on bumps those is FFO re-leasing a math phone, count has over buildings. year over So this a little And of our recurring you adds the that. any just grown dime and like to that's lot year, average on things a but through to it bit probably is and the rent a understating it the little and ignoring share age

our going we've not been way the window the was is been, a blazing it but but development I look, open. there, So demand, think with to -- really years has was it's trying -- where few for we acquisition the were up strategy keep what window

dime year Ridge let's and a is we I and of I would rate, first full those quarter in guess, we Vegas, Raleigh, in Brent, go X Spanish in So yet. bought closed run accretion, that And haven't on we of buildings, with Las that. terms say bought that

we adding -- have run on little the don't that's those up, of rate, if over a are year those a helps, So $XXX We the Todd. -- $XXX full of million. that have quite X million won't

that Yes, does.

Okay.

acquisitions Ridge, what's it's Spanish So -- plus year's plus of contract. last last year's all under

it. Got Okay.

We to of earlier. is yields going a lost felt say new me, it would dollars, a maybe a of from when said, kind low changed average GAAP 'XX, where a in it -- better. market. 'XX. of we bunch, bigger days. Really, batting we okay, of, is minute, out And basis, haven't we or to We're in we something's and cash It kind those was the like X a XX lot should side in first in offers, buyers the weren't below have to maybe this not days getting ability the back on early to our average about XX okay, have on acquisition Xs our market this month, especially terms the or a noticed batting buy able mid-Xs portfolio the got yeses and I back said all that buildings close new to the on mid-to-high in been we wait

up thought there. the finish agree to just And Yes. Todd, Marshall with what said.

our acquisitions guidance, out of In dialed And these $XXX acquisitions that's not that's only million only not prior either that -- are into our terms million of the there's couple of all of and $XX obviously, budget acquisition -- that guidance. budget, of the in earmarked.

$XX acquisition in we've we $XX of kind So just third will. placeholders, in you in fourth -- not the if baked on and again, quarter million But dependent so got that. million overly the quarter, --

than Raleigh other we can that, So if do and acquisition. and that's beyond better the

we've but So lot. the a little bit year, the into back got not of dialed a end

some be we if would to year the in got that way to we've accretive So early the opportunities were able underwritten. it hit

Balachandran line the Aditi next of Your RBC. from of question comes

tenant. the regarding question a Just

through doing to about? guess And exactly you've needed I I delaying existing capacity for they property? space So as decisions they compensate higher on talked running guess, what are just are

Yes.

more they it's I as think business. gain

need they rather they long saying making for -- is and hold local going space, for to like that the usually goes in as as more but crammed the little work space, is can, am I it do least people may the think putting than they're they that they're are of to ready, I long be way a but making but it they're as -- a trying saying, warehouse it's on or at their manager a and bit longer, conversations, for corporate they're bit. say lot

and to best a think they I at demand we're that corporate they little wait get pent-up it's space, have can longer. going and saying, for So do may really bit probably as stuck

get So and -- is It that's out they've drags sometimes -- the XX working sometimes we're some or first been in out some that the of you just hand, the have want intent. it prospects and days. have of to really in have letters month, -- trend towards leases touring space, next day

little hold lot is bit them where think need I their a expansion just feel of a And putting plans this on better they little a that's until is. that are really it So space we and long the term, to economy we're a end. going because we and it's that need business need lose the the back going not space, deteriorate on short-term to some that

the people then probably sturdy interest more away went went like they cut sounds the And way were I rates right June And footing it's rate cut where assumptions a March until it and things I So it the on that. than need. that's little making think now. think I'm they and interest where feeling economy like feel

next comes of line from the Belcher Fargo. question Wells of Jason Your

Marshall, you and mentioned onshoring briefly prepared in nearshoring your remarks.

seeing your Just there? been could give you maybe you've touch us and portfolio activity wondering And on that that's onshore you're could driven any by on nearshore. seen what leasing if update you if an within

San had those as have really seen we've majority good to Diego as still where And Diego than probably some XXX% there L.A. -- most a well. But or last XX I people years. is Tucson, the there the X and Mesa question. even area, and the San California, L.A. along we're used where the Area is Otay struggles, Paso absorption been years the he years been have least really negative And market. right I X really where think stronger, and San XX It's probably Brent, for Phoenix. at us others We've No, Paso. best We see for looking some I've the talk I'm Francisco has of there strength El mentioned the seeing we've us. border. about, been and our product leased where the years. strength think El in best Bay Arizona, been which of at

while XXXX stat kind thinking years, a that when decisions are push So those Central I Mexico to the of continue over strong. really plan. up Plus of people post XXX be our think a percentage China as other day X that and manufacturing China as then I about that. was and think analysis these long-term imports America the into last from is to read I of points, are be That's kind that's down XXX my basis X got points. to come I And XXXX, would up COVID amateur a with basis

And so I think seeing we're out. play it's a that trend long-term

where up plants it, Dallas like Phoenix, and has fund to lot much but the suppliers pick the things we'll get we to see that that, that. those want of a manufacturing gone chip certainly manufacturers, You we so and

recently Tucson. a but a markets not we in term we'd San surpassed feel and even yet, we're we Diego We that us. thought strong -- really market it of in to has going aggressive Tucson had been I we an long Arizona how And We closed thought acquisition the good to through looked continue we're shocked at at that and to -- rate. be. don't it about El think quickly pricing So opportunity, cap for probably lasted good kind has Paso see it like the

next the comes line Morgan question Stanley. Kamdem of of Your from Ronald

on on same-store the Just the one NOI. guidance a quick

front. you the of on X.X% about are it bit is sort in points sort little a XXX of the of question sort another decent way. So -- rest Is billing the if of that guess that Just there guys a demand decel. same-store basis demand slowdown? asking of the amount, conservatism? it, color you but think sort the reiterate XQ, you I Is on year more of

Obviously, we XXX about And outperform to or our up assumptions. the of result, it's in would budgeting year-over-year, assumptions, projecting we that the we hope year. end year meandering we've lower show picking decline it to same-store portfolio basically same-store Ronald, you XX%. first prolific show basically occupancy. We of all rent some we even up obviously of is the -- mid budgeted of down points increases end at the least that's solid we're our same-store of up, lease-by-lease were just show but kind and occupancy through -- of projecting just on part based roll for when just offsetting Again, back that. a but quarter, we enjoyed. But just We some Yes. the basis are before look basically kind that

and subconsciously the the So at there. -- they're But they just still of pace seeing this strength it's the what influenced they're to leasing. with consciously the the tenor sort guys relative in or which see field,

And driven than flow it really so little a proves and or And move-outs could bit, that one more lot by conservative, large a dialed but it's the that. that that but it it basically granular that's X ebb we have way just can we It's again, hope as X known or sway up. I repeat, not being other.

activity. So time. we'll quarter take seeing we're Marshall, in a

the or to showing to basis rate strength, showing of XXX those. But think and in again, pleased occupancy beat the we'd or portfolio think we're yet XXX so I potentially still showing strength that that we think rental budgeted same-store And with enjoy. -- continue it, to about like projected speaks the decline you good which, point we same-store could

you year, $X leasing and million feet, did XX%. cash the beyond square over year Just starting the activity. million X with Last spread XX%

of rest into the the volume sort Just of for and spreads. year what's of baked in terms

easier. high speak level if could You that's

or I'm up we're pleased that of ago first a north that million year think quarter this and $X.X year, million. $X I little actually, to a

slowdown So this -- really a and seeing in similar answer. X-part maybe not year, I think I'm rents. will mean I it's we be a

told think I But up spreads think I again we've which years possible. our ago quickly. I I you have or think have -- really market thought re-leasing has never to was X don't pick X fortunate XX%, growth however I wouldn't our ago, been consecutive I it's going Look, But has years there. rent rent many pretty to in back been north quarters slowed. that growth GAAP have -- where hung of

I in this our development We're what we're have leasing we're delivering pretty about progress are towards roughly prospects. year So and making on feel good X/X that volume, on leasing. and about leased or the development those pipeline moving

think be that sticking peak. longer will probably month So I or the leasing maybe But said, talked the occupancy, Brent at record are similar. a were on about vacancies X as they around, was year for than It's last occupancy. a

last So it setting year. balance part challenge record of It's of was the this against the record year. our much was fun year so same-store competing the -- great not this

trend. So at It's be the construction -- product things and we'll look and end have of the that but our maybe in always less will type, continue of pace historically there's it, and a is in off availability but shallow of news to a starts numbers like that I the best that leasing. year certainly the you solid bay, just when record that think bit, little

when So I think will it quickly. turns fairly it tighten

comes Your of Jessica Street. Zheng Green from line next question the of

there? please trends your you levels portfolio? Are Could you subleasing touch any seeing in elevated on the

another or been have no, really prospect small not. mean, would usually it Jessica, And there. that way Okay. it's in spaces mainly cases, here some a watch to I most maybe rather direct lease. for

fees, term which are of our kind it low. So watch

one Charlotte, of seeing we're picked tenant far their I'd do rents lot a larger say in that if a and not I We are market, the pretty did profits that. below would up have little -- pretty subleases. that -- bit the we'll in So is just are X-year did but and they we've say sublet a rents renewal just their participate got

a those the participate always rents lease, prospect we either the and pending or in lease. would rather have So direct capture

So in a lot of improvement cases, allowances. any especially there's if

historic are right any that market. certainly we've manageable think below mainly it. absent norm one materially So it, we've of. thankfully, But one It's our rents but it now of pretty to can spaces, portfolio. And feels seen out not I that got of within kind smaller

Samir from question of of Canada. Evercore next Your the comes Khanal line

ISI. Evercore it's Sorry,

So down back do a on renewal year? what Maybe the retention kind a mid-XX%. of supplement, year, bit. when we've sort of -- about, that this quite in in last tenants for not XX% was look of in XX% your committing, rate of just think that look color. XQ retention the just of like talking sort the just XQ. how been And of you average provide at Marshall, came the It I and Is rate you bit out a function plays page

XX% we of tight. of we had you at glad the The COVID. And rate. And our to I'm viewed least during it year, me, asked building mentioned retention is to we term, you're Last historic as people a and that peers, XX% a are time the retention if sitting last really -- kind near we for peers few here's -- EastGroup kind probably that any that your of high as I year, in run run XX%. is No. one good and model a rates that, as of I'd saw rate, my is was was on retention say news. or logic were normal

be The things least or worse a But did expensive in little like gotten to for did there maybe materially quarter to of that. like leasing and I XX%. a means So of back the that at kind was to at million year I quarter X bit March in we at market end I'm things and year rate year, that. want run people wouldn't to than a fact they've be the little initially me, initially. commissions bit like volume a more could the felt cut leasing and up get feel loosening better or maybe the the first was look, going There'd be ago things June might we least retention thinking we more than at that -- the encouraged, TI and rate

It's our or the was its kind at on come which measured retention still X the response, more it a trailing that was look market XXXX, during to at like of still our when high. of rate about we'll lowest that's get was end So is historically But XX% a over really things booming. high when range. probably XX%, quarters to and down

at things like I XX% spaces that within doesn't So of it stay people -- new our that. of some into start kind parks that is again, hope people that and moving

aren't way is saying with look in Slide you if leasing us have the this a retention making people -- I of it's the So was I'm get really shakes XX, chance the to rate high and the but see a I again mid-XXs, renewals, that and a last been that that of pleased one another people mid-XXs website which see. think out, on you and typically leasing quarter, another our chart a we'll X are roughly, of Again, decisions. see in within how is historically is the kind are next -- kind you'll signal quarters, run they CBRE and they've the a to taking as percentage wait high of want

a I we movement needed. tenant the long little of XX%. happy was what term, don't do bit it probably with So want to but I is

is -- the And one then your question. a sequentially they look and year? property think if of year-over-year. the that of operating This I ask were up expenses for at the can just I balance we guess expenses modeling more. how about But more quarter, in I sort the when of should

Yes. reminder, we're everything passed through. We're gets pretty -- much predominantly just a

go real and up. So we taxes insurance estate seen have

CAM. is rising that the so But the was we're income the chart that, at getting say, And up. expenses correspondingly and X% that, that reimbursed in X%. from a There rising rent back. that shows less line think that income But to percentage than expenses you're XX%, or I that but reminder, tenants XX% XX%, with drives certainly one supplemental getting XX% occupancy,

line percent obviously is CAM very of reimbursement, not portion the rents, impacted a item base is. small by So CAM that

to So CAM minimis with if pieces, matching would a say we de out reimbursement have the up broken want percentage see you whatever for percent then had into the it XX% that up showing via would impact you income there, if you purposes, expenses expense increase. XX% line modeling back you're because X% so CAM occupancy, getting just But yes, getting X increase to or are you're increase you're that if going say or reimbursement. that

of Ki comes question the Kim from Bin next Your line of Truist.

Just come reimbursement we quarter. a expect back the exact same sticking reimbursement Should bigger with the year? Typically, rate that expense last the question. don't down sometime in this line

accrue No, collecting we books evenly. or and match it that, whether keep on that accrue the and to not, you're pretty we adjust

being an you're consistent So that of income and just thing, you swings. through type very has again, billings very in the in if CAM keeping accrual you'll year, at be ideally, think with tandem that reimbursable don't that and been. true-up so and tracks. It have you break year-end reimbursable year see And you up Again, matches big through it I it closely. basis, as the on go those that expenses

to no, the that, bottom don't would small to than other on you due property it collect to So expense would have the -- vacancy. percent very not impact line say I any going the on really level is

curious just if through kind be that your M&A? be capital I on very overall kind Xx in time, balance whether a But change, your a over shape acquisitions And or provides typically, in your and mean, sheet, significant That enviable to at sheet, we balance dry very dry how -- M&A. views that known of it's EastGroup we in capital. large-scale great position your active leverage. -- of haven't development we And on about or Okay. should

probably uses Ki on and our XXXX, up markets Bin, had than look, there. view of kind target 'XX, as we driven of we cap equity sheet our year, lower our we've development, we equity a and we've little -- the it they're stepped stronger Last long-term a attractive while leverage it. the balance for way is down we wanted were implied rate saw 'XX, bit

have So expensive. -- and the debt markets been

a window just and near able do So fair strength point attractive of add our we'll we've little was pretty when go while we a have kind interest to opens. I to we'll Brent the needing behind hopefully flexible kind come the team term, the rates amount it equity term leaned put like but and do balance think which there, sheet, at of probably -- continue into that market. the so, given rates fact equity time leverage to again, I of bit longer pending without to down, at be the put in do

I you to that, I think that M&A fact on like even on know we'll be to into harder bought it's the and side, the equity, but a look we've terms portfolio then we the those patient. another our a you will lean we'll and slow in always like we'll feel portion There's portfolios. I Area of and ago, So been and again, we that. there's flip it's it down don't of able we the few And patient look -- things always always like -- years other be feels know, that good things, that like what growth. at portion at Bay would that

to we shareholders through have of selective, to I we a attractive we glad we're as handful compared of industrial give lot of our be I'm as been rate solid a the some maybe to company certainly but able ways and being believe, we'll whole So peers. try our and grow were too less patient, rapidly without risk, a -- with return

unless usually saw be our in needed but case. that's your kind move not of ideally on it, was that really been and that's goal, would that we to we question, just something So the attractive,

of versus equity expensive Brent, a a curiosity, like sort if your you would raised could did now ATM? why you the something higher it I doing through offering. earn, guys accretive to forward, you forward. raise just out -- more return market just well, a that on do And money account And equity a assume, forward or and versus just How forward a a much is

really X It's standpoint. a not parts. We guess from point. pay about I expensive. that only It's Yes. much that attractive more very

do actual in and variable not low expense pay advantage we right of a quarter, do take the take and far this can issuing the the share and your it's forward, the capital regular not have think to even rates that the wouldn't either which about versus necessarily don't or And accretive I stockpiling side. as way do regular now, just forward long immediately or paid we it and forward, the there it be say be on kind down. To so the you end would somewhere thing money point, count on on based toward down. We've it good to in it way a the about The you the to the on the so the got down market. until we the mid-Xs there capital forth. money hold had gone don't ultimately, that But sitting you're outstanding could But difference, you've on But just small down cash. cash feel in a only point on is in versus out raising that issue spread we the of what's based like it the bunch versus outstanding stockpiling very more counting and punitive you argue the of revolver just again, a and we with certainly of shares forward how if not there. we'll we've way. cost money could is and little against you go forward. interest make the in environment, don't bit take right, it way. slightly cash and a dividends make you to one environment, we're other like market a the to the it's way this maybe like really then revolver, point flexible -- there's we'll -- the it pricing final return big Now just varies other, But you of -- to the and But

question of next the Nick comes of line Thillman Your from Baird.

bit a starting the on little bad Brent with here debt. just of kind Maybe

were You particular, was those curious in guys but touched on the list prior. X on tenants the I tenants if watch just

know they were. the couple outstanding. That's that I perch them was, again, $XXX,XXX cash I sure not a don't of a only fair if under -- question. I'm had

the just they of you the bankruptcy, necessarily. files back with just I and you with follow they've were. offline bit -- that been It rent us occasionally, idea and a a don't up time, that's and or a unbeknownst with specifically, not really coming over a So does a more it that up was problem to always which lens It but up on and suddenly keeps can think If was no more catch sudden. And was that I or happen up. them. way catch much got bit clarity abrupt go and so tenant

So any -- very unusual was little watch not happened little growing again, is that -- with and a more them. suddenly But pace. a it overall, with the at list more healthy

being surge Marshall, above kind levels maybe, little then demand the And helpful. of and and bit kind That's of in averages. about historical occupancy a 'XX today you 'XX just touched

kind do XX%. pre-pandemic see that of say, get normalized portfolio the XX%, to like As we occupancies longer-term you back demand, this within getting more of, like level

will Is thinking it you around kind longer So slowly level. that what come time guys that term? are down of maybe over and normalize

board been our longer always full decade But you get question it XX% is some would around. that we've type that a and of members over vacancy there's just we've of good debated always and as a tenured from XX% some our for north It's frictional product can say tenants moving in counting. thankfully now that

changed. at occupancy. the at and 'XX me, market's the some So to record years were XX% just point, And it last kind of said 'XX averaging

will it that feels I that term, I given new think know high, a that's think in a XX% move going optimist it going -- I it. And like quickly the demand while. don't a of I where So for be supply address there that we'll That's for but me. take is little the average can while certainly with will it's than think stay near XX% more that lot to fun the is to

start quickly able not peers. in hand won't hand moving be can tied than have stay we of get to developers number and be until a but I may think we And all back go in we think XX%, then of going move those kind there's squeeze a more permits sites up, again. And get I should capital, the private to our So and already to raise private at XX%.

just year of were a the to X on the the follow-up was that that list then watch coming quick list. and And X watch into your not. XX%, X mentioned I tenants drove X

quarter, within happened what way. either I the So not and uncommon really say, like

the line comes next Vikram Mizuho. of Your Malhotra from of question

you me? Can hear

Vikram. have we Yes, you,

tenants is your talked you just question, first market can commitments if prediction your for what you wondering large. about for just talk my just also but that, very rent elaborate markets? I'm in dollar And becoming growth main So just upon about

it still along certainly describe as great Yes, decisions had in multi-tenant we've the I we've of sizes they use this have used their come spaces the and size brokers real guess average run grown but our tenant a been where tenant single the tenant rents got a one rep again, was buildings is that's and tenant estate up, we've real had mid-XXs, taken in be has -- and even way to it.

bit described manager growth from a we'll I there's Bay -- good and space decision. of L.A. to less much Area shallow market market way, decision I of better a X% The the call moved rent think it. be, a it's a so So inflationary more thought real availability rent maybe because one year, is it. X% absent. little CFO it's this is to probably still brokers And it, in base growth, probably our estate

growth we're maybe XXX is north that. if call points to been X.X%, example, for market rent we've of it, maybe, saying basis So XXX

Got it.

extended, of have stabilizing, me you 'XX, talked to into but bit X deals the see say, is what's Just initial little correct you this about pause your let's on a you capital, comment If on or in the your just acquisitions. cost seeing you're moderation sort premium if need a risk right maybe or X I'm protracted demand? more in -- if pause of is, normalization to wrong, a the what's relative

what Yes. them all bought it's been What -- we've of have to answer I'm been we acquired, -- and have trying been your question, one-off buildings.

seeing to been that's yield. mid- rather And kind portfolio. than the where upper in opportunity gap a So going-in we're it's a Xs, but of

in at but And So embedded then of kind mark-to-market look a embedded look there's that most new kind them, at not have not yields still of buildings there is. lot been the that. And what we'll of growth. But GAAP there's the of rent range, and low X.XX-ish stabilizing, we'll in growth. such

liked the new the they term. is, attractive yields buildings you for buying the long liked and construction take really and leasing getting So away are we we're what and building, risk we've

X we historically compared if -- been. development -- than of to kind some cap from to it, say checklist, of couple that X.X been they've said yields closer those would of higher our it's developing X.XX. that's rates a and -- market So what's were you have ago, to to and years yields A and to we

couldn't okay, situations, kind feels the better it say pension developer on where have what liquidity I'd being So leveraged Those unusual industrial if right what and -- the we we're on It stepped user. an a really a marketing the new and sudden, we've their world a failed a that's was of it acquirer. needed And in office to building, -- needed that all that's when bought now, fund sell so over-leveraged had quarter one-off a that than couldn't close were and tied told owner-user, they up wants, they off close. a they things someone process, like of or owner building. been building

a work And and levered opportunity debt will it means get them. out and and we turning on are we'll in a been us. staying leaning back keep as away found. many order of that soon I the IRR type rates fairly works can that in there, So think those higher then short have from stones but we'll I how know And move probably people to interest don't cheaper as keep for probably opportunities over

Got it.

quick if more, I X one if Just I one -- may.

[indiscernible] known Just to be the Sunbelt percolating market. demand Amazon on XPL is is smaller into box demand

Amazon we on were that. I that. I lost -- I Vikram, XPL, and know you if lost you you lost apologize. We heard on there. We but don't

now? Can me you okay hear

Yes.

Amazon can square known down wondering, markets Yes. taken footers if specifically, million that boxes, on shallow box markets. you percolating just this in? the of XPL, I'm just quarter to or bay is demand be just smaller to I comment larger you're first that was wondering in multiple Amazon

And good a the what Phoenix I Yes. boxes number taking we market. in -- of see in those No, to Amazon back And Empire, it's you're Inland think read right, big about the in and XPLs. retail is look, are to country. kind move goods of the being like the large like location And across the can, almost the we What boxes like visibility. the without as I near trend. we like, consumer we long-term and a

that click out hit will that speeds and phone think to the around been described largest the you where has way when those our big boxes, delivery, up it they're person, Amazon from when or order, I world's that's anything you but get up hang the build going. that service customer, that

So you'll within mile Atlanta, Mexico and need country Phoenix, going then it's so the to throughout or the is big from bad. that need the because boxes whether to move really last Orlando traffic Dallas, Asia things, delivery you're

can spoke, depending SKU a and the quicker will them is, box count lot think quick there's network some almost but hub too. and and on it we'll a usually into probably a innings bit And building what and big runway store where really brick-and-mortar of the count delivery I still up. And -- the of most of kind for it -- little quicker rationalizing have, brick-and-mortar in to but seen people that's they'll degree, So space like delivery. bulky think their we've early then item I their on to out moving or out out of or more build and and to pick what business evolve the items, hope I and more distribution and more distribution that continue is

We don't continue. this Presenters, please time. have any questions at

I time as available. get and other to didn't Brent everyone, if We to you. we'll certainly you coming well. up. there's color Thanks. couple in There's question, Post, a Thanks, and see your any EastGroup. conferences of are your and you for hope If see want, we at your interest for those

you. Thank

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

disconnect. now may You