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: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Just want to jump back into development capacity briefly. I'm thinking in some of these particular markets where you hold these parcels of land,
say, Dallas, where you've got about 70 -- not you, but in aggregate, 70 million square feet are under construction. Would you be looking to potentially
sell out of some of that exposure in favor of maybe some of the more coastal markets with better future supply growth dynamics?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Got it. I appreciate the color there and as well as the comparison to LA and say, the Inland Empire as the kind of overflow (inaudible) . Just one more
quick one.
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JULY 27, 2022 / 3:00PM, EGP.N - Q2 2022 Eastgroup Properties Inc Earnings Call
On the dividend, we saw a pretty meaningful hike last year. The positive provisions, the guidance may seem like we're trending towards another,
but could you offer some color here on the thought process perhaps as it relates to increasing the debt load over the course of the year? And how
fueling a higher interest expense would impact your ability to raise the dividend?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: I wanted to see if you guys can talk a little bit more about construction costs and how much they've increased in your underlying markets and
maybe the 3 buildings that you broke ground this quarter, I mean, how much higher are the budgets on those projects versus the buildings that
you built in those parks previously?
Question: Michael Albert Carroll - RBC Capital Markets, Research Division - Analyst
: And that 40% number is that over like roughly the past 12 months? And does that construction cost increase? Does that keep I mean, does that
make you second guess the type of buildings that you want to break ground on? Or rents just so strong? And maybe off of that, what about your
competitors? Or are they unwilling to break ground if construction costs have increased so dramatically.
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