Key Takeaways CUZ stock rose 35.9% in a year, outpacing the industry's 8.5% on strong Sun Belt office demand. In Q1 2025, CUZ signed 47 leases totaling 539K sq. ft., with rising rents and long lease terms. Strategic asset deals and low new construction position CUZ to benefit from the flight to quality trend.Cousins Properties (CUZ) shares have rallied 35.9% over the past year, outperforming the industry's 8.5% growth.The company’s portfolio of Class A office assets in high-growth Sun Belt markets is witn ...

Cousins Properties’ (CUZ) portfolio of Class A office assets is concentrated in the high-growth markets in the Sun Belt region. The company is witnessing healthy leasing activity due to tenants’ preference for premium office spaces. Its capital-recycling efforts and healthy balance sheet augur well.Analysts seem positive about this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for CUZ’s 2025 funds from operations (FFO) per share has moved 1 cent northward over the past two months to $2.79.Shares ...

Group 1 - Cousins Properties (NYSE: CUZ) is identified as a strong buy opportunity, particularly in the Sun Belt office-focused REIT sector, with a yield nearing 7% and a well-covered dividend [1] - The management of Cousins Properties is actively increasing investment plans, indicating a positive outlook for growth [1] - The equity market is highlighted as a significant mechanism for wealth creation or destruction over the long term, emphasizing the importance of strategic investment [1] Group 2 - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Cousins Properties (CUZ) Q1 2025 Earnings Call May 02, 2025 10:00 AM ET Company Participants Pamela Roper - Executive VP, General Counsel & Corporate SecretaryColin Connolly - President and Chief Executive OfficerRichard Hickson - Executive Vice President Of OperationsGregg Adzema - Executive VP & CFOJohn Kim - Managing Director - US Real EstateKennedy Hicks - Executive Vice President, Chief Investment Officer & Managing DirectorMichael Lewis - Cyber Security Group ManagerBrendan Lynch - Director Conference ...

Core Viewpoint - Cousins Properties (CUZ) reported strong first-quarter 2025 results, with funds from operations (FFO) per share of 74 cents, exceeding estimates and reflecting robust leasing activity and occupancy growth [1][2][3] Financial Performance - Rental property revenues increased by 16.4% year over year to $243 million, surpassing the Zacks Consensus Estimate of $242.2 million [2] - Total revenues grew by 19.6% year over year to $250.3 million [2] - Same-property rental property revenues on a cash basis rose 1.1% year over year to $192.1 million, while operating expenses fell by 0.3% to $69.8 million, resulting in a 2% increase in same-property net operating income to $122.3 million [4] - The weighted average occupancy of the same-property portfolio improved to 89.4%, up 150 basis points from the previous year [4] Leasing Activity - CUZ executed leases for 539,063 square feet of office space in the first quarter, including 204,620 square feet of new and expansion leases, which accounted for 38% of total leasing activity [3] - The same-property portfolio was 91.7% leased at the end of the quarter, an increase from 90.4% a year ago [5] Development and Costs - CUZ completed the development of Domain 9, an office property of 338,000 square feet in Austin, with a total project cost of $147 million [5] - Interest expenses increased by 27.2% year over year to $36.8 million [5] Balance Sheet - At the end of the first quarter, CUZ had cash and cash equivalents of $5.3 million, down from $7.3 million at the end of 2024 [6] - The net debt-to-annualized EBITDAre ratio improved to 4.87 from 5.16 in the prior quarter, while fixed charges coverage increased to 4.05X from 3.92X [6] 2025 Outlook - CUZ revised its 2025 FFO per share guidance to a range of $2.75 to $2.83, up from the previous range of $2.73 to $2.83, with the Zacks Consensus Estimate currently at $2.79 [7] Market Position - CUZ holds a Zacks Rank 2 (Buy), indicating a favorable market position [8]

Financial Data and Key Metrics Changes - The company reported a first quarter FFO of $0.74 per share, with same property net operating income increasing by 2% on a cash basis [4][29] - The midpoint of the full-year guidance has been raised to $2.79 per share, reflecting a 3.7% growth rate over the previous year [5][36] - Same property GAAP NOI grew by 4% and cash NOI grew by 2% compared to the previous year [29][32] Business Line Data and Key Metrics Changes - The portfolio was 90% occupied at the end of the first quarter, up from 88.4% a year earlier [8] - Leasing activity included 539,000 square feet of leases completed during the quarter, with a 3.2% cash rent roll-up [5][18] - Average net rent for the quarter was $35.87, with average net effective rent at $25.06 [20][21] Market Data and Key Metrics Changes - The existing supply of office buildings is declining, with JLL reporting a removal of 10 million square feet from the US office inventory since 2024 [6] - Leasing volume over the past twelve months reflects 89% of typical pre-pandemic activity, indicating a recovery in demand [7] - The broader Atlanta office market showed positive trends, with a strong leasing activity of 213,000 square feet [22] Company Strategy and Development Direction - The company is focused on both internal and external growth opportunities, prioritizing investments in lifestyle office properties in target Sunbelt markets [7][12] - The strategy includes maintaining a best-in-class balance sheet while capitalizing on market disruptions to find compelling investment opportunities [11][15] - The company aims to enhance geographic diversification over the long term, with potential investments in markets like Dallas, Charlotte, and Nashville [95] Management's Comments on Operating Environment and Future Outlook - Management noted that the office market is rebalancing, with a shortage of premium space expected soon [14] - There is optimism regarding the leasing market, with expectations of improved rental rates as demand increases and supply tightens [41][66] - The company remains well-positioned to navigate macro uncertainties due to its strong balance sheet and market presence [10][36] Other Important Information - The company completed three significant transactions during the first quarter, including the payoff of a $138 million mortgage loan [34] - The liquidity position is strong, with only $39 million outstanding on a $1 billion credit facility [35] - The company anticipates potential capital deployment into compelling investment opportunities despite macro uncertainties [37] Q&A Session Summary Question: Will the company see rent spikes due to robust demand and declining supply? - Management believes that improving demand alongside declining supply will eventually lead to positive improvements in leasing market and rental rates [39][41] Question: Is there a pipeline of acquisition opportunities? - Management noted an increase in owners exploring sales, indicating a greater volume of opportunities, although there is a bid-ask spread due to market disruptions [43][46] Question: What industries are driving leasing activity? - The leasing pipeline is diversified, with strong presence from legal, technology, and financial services sectors, particularly in Atlanta and Charlotte [52][53] Question: How is the company approaching new development? - Management evaluates new development opportunities against acquisition opportunities, considering the risk-adjusted return [55][56] Question: What is the impact of office removals on the market? - The company sees broad-based removals across markets driven by obsolete space, which is being repurposed or demolished [61][62] Question: Are there any notable trends in leasing concessions? - Management indicated that concessions are trending down, with lower tenant improvement allowances and free rent due to the quality of the portfolio [100][101]

Group 1 - Cousins Properties reported revenue of $243.03 million for the quarter ended March 2025, reflecting a year-over-year increase of 16.4% [1] - The company's EPS for the quarter was $0.74, significantly higher than $0.09 in the same quarter last year, indicating strong earnings growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $242.23 million by 0.33%, while the EPS also surpassed the consensus estimate of $0.71 by 4.23% [1] Group 2 - Cousins Properties' revenue from rental properties was $243.03 million, compared to the average estimate of $242.23 million from two analysts, marking a 16.4% year-over-year increase [4] - Other revenues amounted to $6.81 million, significantly exceeding the average estimate of $4.86 million, representing a remarkable year-over-year change of 15,365.9% [4] - Fee income was reported at $0.50 million, below the average estimate of $2.85 million, but still showing a year-over-year increase of 30.9% [4] Group 3 - Over the past month, shares of Cousins Properties have returned -6.7%, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

分组1 - Cousins Properties reported quarterly funds from operations (FFO) of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and up from $0.65 per share a year ago, representing an FFO surprise of 4.23% [1] - The company posted revenues of $243.03 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.33%, compared to year-ago revenues of $208.82 million [2] - Over the last four quarters, Cousins Properties has exceeded consensus FFO estimates three times and topped consensus revenue estimates three times [2] 分组2 - The current consensus FFO estimate for the coming quarter is $0.70 on revenues of $243.28 million, and for the current fiscal year, it is $2.79 on revenues of $970.42 million [7] - The estimate revisions trend for Cousins Properties is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The REIT and Equity Trust - Other industry, to which Cousins Properties belongs, is currently in the bottom 35% of Zacks industries, which may impact stock performance [8]

Financial Performance - Net income available to common stockholders for Q1 2025 was $20.9 million, compared to $13.5 million in Q1 2024, representing a significant increase [104]. - Funds From Operations (FFO) for Q1 2025 was $124.8 million, representing an increase from $99.5 million in Q1 2024, with a per share amount of $0.74 compared to $0.65 [124]. - Net cash provided by operating activities increased by $16.5 million to $44.8 million in Q1 2025, driven by higher economic occupancy and the end of rent abatement periods [132]. - Other income increased by $6.8 million, primarily from the sale of a bankruptcy claim and interest income from mezzanine loans [114]. Revenue Growth - Total rental property revenues increased by 15.3%, from $208.3 million in Q1 2024 to $240.2 million in Q1 2025, driven by a 583.8% increase in non-same property revenues [107]. - Same property net operating income (NOI) increased by 4.0% year-over-year, while total NOI rose by 18.7% from $137.3 million in Q1 2024 to $163.0 million in Q1 2025 [107][120]. - NOI for the Austin market increased by $14.1 million, or 30.7%, primarily due to the acquisition of Sail Tower in December 2024 [113]. - NOI from the Charlotte market increased by $6.5 million, or 62.4%, also due to the acquisition of Vantage South End in December 2024 [113]. Expenses and Costs - General and administrative expenses rose by $1.5 million, or 16.2%, primarily due to increases in stock compensation expense [115]. - Interest expense increased by $7.9 million, or 27.2%, due to the issuance of $900 million in public unsecured senior notes in 2024 [116]. - The average tenant improvement cost per square foot for new leases increased to $15.45 in Q1 2025 from $13.53 in Q1 2024 [136]. - Total capital expenditures decreased to $54.3 million in Q1 2025 from $72.3 million in Q1 2024, mainly due to reduced spending on development projects and leasing costs [135]. Capital Management - The company maintains a disciplined approach to capital allocation, focusing on opportunistic acquisitions and maintaining a low-leverage balance sheet [101]. - Common dividends paid increased to $54.6 million in Q1 2025 from $48.6 million in Q1 2024, with future dividends expected to be funded by operating cash flows and asset sales [138]. - As of March 31, 2025, the company had $38.7 million drawn under its $1 billion unsecured credit facility, with $961.3 million available for borrowing [125]. - The company plans to actively manage its property portfolio and strategically sell non-core assets to meet future capital requirements [130]. Debt and Financing - 87% of the company's consolidated debt bears interest at a fixed rate, while 13% is based on SOFR, exposing the company to interest rate fluctuations [128]. - The company expects to refinance non-recourse mortgage loans at maturity or repay them with other capital resources, ensuring compliance with existing debt covenants [129].

Financial Performance - Net income for Q1 2025 was $20.9 million, or $0.12 per share, compared to $13.3 million, or $0.09 per share in Q1 2024, representing a 57.1% increase in net income year-over-year[13] - Funds From Operations (FFO) for Q1 2025 was $124.8 million, or $0.74 per share, compared to $99.5 million, or $0.65 per share in Q1 2024, indicating a 25.4% increase in FFO year-over-year[13] - Net income available to common stockholders rose to $20,897,000 in Q1 2025, compared to $13,288,000 in Q1 2024, marking a year-over-year increase of 57.5%[31] - Funds From Operations (FFO) for Q1 2025 was $124,834,000, up from $99,496,000 in Q1 2024, indicating a 25.5% growth[115] - The FAD (Funds Available for Distribution) for Q1 2025 was $75,626,000, with a FAD per share of $0.45[118] Revenue and Income Growth - Rental property revenues increased to $243,027,000 in Q1 2025 from $208,818,000 in Q1 2024, representing a growth of 16.4%[31] - Same property net operating income (NOI) on a cash basis increased by 2.0% in Q1 2025[13] - Same Property Net Operating Income rose to $140,710,000, reflecting a 4.0% increase from $135,286,000 year-over-year[69] - The company raised its full year FFO guidance with a new midpoint reflecting a 3.7% growth rate over the previous year[11] Leasing and Occupancy - The company executed 539,000 square feet of office leases in Q1 2025, the highest leasing activity for a first quarter since 2019[11] - The office percent leased at the end of Q1 2025 was 92.1%, up from 90.8% in 2024, indicating a 1.3 percentage point improvement[32] - Total office portfolio occupancy increased to 92.1% in Q1 2025 from 91.6% in Q4 2024[60] - The end of period leased percentage improved to 91.7% from 90.4% in the previous year[69] Assets and Liabilities - Total assets as of March 31, 2025, were $8.66 billion, a decrease from $8.80 billion as of December 31, 2024[28] - Total liabilities as of March 31, 2025, were $3.83 billion, down from $3.93 billion as of December 31, 2024[30] - The company has a total of $8,663,360,000 in consolidated total assets as of Q1 2025[107] - Net debt stands at $3,191,814,000, with a net debt to total market capitalization ratio of 39.1%[107] Market Capitalization and Stock Performance - The common stock price per share was $29.50 in Q1 2025, a decrease from $30.64 in Q4 2024[35] - The total market capitalization as of Q1 2025 was $8,157,500,000, down from $8,412,256,000 in Q4 2024, showing a decline in market valuation[35] Expenses and Financial Projections - General and Administrative Expenses for 2024 are projected at $36,566,000, with quarterly expenses ranging from $9,214,000 to $9,241,000[44] - General and administrative expenses for Q1 2025 were $10,709,000, an increase from $9,214,000 in Q1 2024[116] - The company projects full-year 2025 FFO to be between $464,109,000 and $477,611,000, translating to a per share amount of $2.75 to $2.83[118] Development and Project Costs - Estimated project costs for the development pipeline in Q1 2025 were $294,550,000, down from $441,550,000 in previous quarters, indicating a reduction in projected expenditures[33] - The company has a development pipeline of 2,219,000 square feet with an estimated project cost of $909,000 thousand[81] - The Neuhoff project has an estimated total project cost of $589,100 thousand, with the company's share being $294,550 thousand[85] Debt and Financing - The company’s total debt stands at $3,218,244 thousand, with a significant portion maturing in 2025 and 2026[93] - The weighted average interest rate for total debt is 5.00%, with a weighted average maturity of 4.2 years[97] - The company has $38.7 million drawn under the Credit Facility, with the ability to borrow an additional $961.3 million[98] Shareholder Returns - Common dividends for Q1 2025 amount to $53,732,000, compared to $53,651,000 in Q4 2024[107] - The FFO payout ratio for Q1 2025 was 71.0%, compared to 82.1% in Q1 2024, showing a decrease in payout[110]