The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Another great quarter. Marshall, as other people pull back on their construction pipelines and activities, I'm wondering how you're thinking about
yours. I know it's a different risk profile and within your existing parks. But is the -- has the risk elevated enough to make you pull back? And then
maybe talk about the balance, any shift in the balance between acquisitions and developments at this point.
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APRIL 26, 2023 / 3:00PM, EGP.N - Q1 2023 Eastgroup Properties Inc Earnings Call
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Yes. That's helpful. If I could just ask a follow-up. And that's really a Miami and the performance in that market. We sense that it's a really strong
market, but the data the last couple of quarters seems to have been a little bit weaker from your portfolio. Is there anything going on there?
Question: Jason Belcher - Wells Fargo Securities, LLC, Research Division - Analyst
: Wondering if you could talk about any additional demand you're seeing from near-shoring or on-shoring of manufacturing and production activity
and which markets are seeing the biggest impact from those trends? And maybe how we should think about that evolving going forward?
Question: Jason Belcher - Wells Fargo Securities, LLC, Research Division - Analyst
: That's helpful. And then just one more for me. If you could give us an update on what you're seeing in terms of materials and labor cost inflation.
I noticed the price per square foot increase in your development starts guidance, maybe if you can just comment on the cost inflation front there.
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APRIL 26, 2023 / 3:00PM, EGP.N - Q1 2023 Eastgroup Properties Inc Earnings Call
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Marshall, I wanted to touch on your comments about demand. I mean, obviously, I think you've been highlighting that's still pretty healthy. But
how big of a pullback has there been compared to last year? I mean is there a noticeable slowdown in activity just off of those record levels till
today? Or you've not really noticed it that much?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Okay. And then also, you talked about your development yields that you thought that they might start ticking higher. Is that just due to construction
costs dropping? Or is that due to rents improving? And I guess, how does the whole financing costs kind of get included in that calculation? I mean,
with interest rates where they are today. I mean has that pressured or reflected on your development yields at all?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: Okay. Great. And just if I can sneak in one more. That 150 spread, I mean, how close are we to that 150 level right now? I mean do you just need to
get a development yield anywhere near a mid-6 and that's kind of -- you can justify it.
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