EastGroup Properties Inc. reported fourth-quarter funds from operations attributable to common stockholders of $39.3 million, or $1.14 per share, a rise of 10.7% in the aggregate from $35.5 million, or $1.08 per share, in the 2016 fourth quarter.
For the full year 2017, the company posted a 10.6% year-over-year rise in FFO attributable to common stockholders. In the aggregate, results totaled $145.1 million, or $4.26 per share, compared with $131.2 million, or $4.02 per share, in 2016.
The S&P Capital IQ consensus per-share estimate for the fourth quarter of 2017 was $1.11 per share. The S&P Capital IQ consensus per-share estimate for the full year 2017 was $4.23.
For the first quarter of 2018, EastGroup estimates FFO attributable to common stockholders will be between $1.10 per share and $1.12 per share. For the full year 2018, EastGroup estimates that FFO attributable to common stockholders will be between $4.45 and $4.55 per share.
The S&P Capital IQ consensus per-share estimates for the first quarter and full year 2018 are $1.10 and $4.49, respectively.
On the transaction front, the company closed out 2017 by acquiring a 20% noncontrolling interest in University Business Center 125 and 175 in Santa Barbara, Calif., for $4.7 million. The acquisition added 27,000 square feet to the company's operating portfolio and the company now fully owns both buildings.
During the fourth quarter, EastGroup sold 14 acres of land in El Paso, Texas, for $2.9 million and closed a $60 million private placement of 3.46% senior unsecured private notes with an insurance company. The notes have a seven-year term.
The company also refinanced a $75 million unsecured term loan, resulting in a 30-basis-point reduction in the loan's interest rate. The loan, which has a maturity date of Dec. 20, 2020, now has an effectively fixed interest rate of 3.452%.
During the fourth quarter, EastGroup issued and sold 332,852 shares of common stock under its continuous equity program at an average price of $91.95 per share.
