Core Insights - Current market conditions suggest it is a favorable time to invest in Real Estate Investment Trusts (REITs) due to stable core and headline inflation rates at 3.0% [1] - A significant majority, 75% of investors, anticipate a decrease in the Fed Funds rate, which could further enhance the attractiveness of REIT investments [1] Investment Focus - The article emphasizes the importance of investing in income-producing asset classes, particularly REITs, which provide reliable income, diversification, and act as a hedge against inflation [1]

Core Insights - Cousins Properties (CUZ) demonstrates growth momentum supported by a high-quality office portfolio, strong tenant roster, strategic investments in prime sub-markets, and a solid balance sheet [1][9] Financial Performance - In Q3 2025, CUZ reported funds from operations (FFO) per share of 69 cents, aligning with Zacks Consensus Estimate, reflecting a 3% year-over-year increase [1][2] - The company raised its 2025 FFO per-share outlook, with the Zacks Consensus Estimate moving up to $2.83 over the past two months [2] Leasing Activity - Healthy leasing activity was noted, with a total of 128 leases executed for 1.4 million square feet in the first nine months of 2025, including nearly 490,000 square feet of new leases [5][11] - The second-generation net rent per square foot on a cash basis increased by 4.2% during Q3 2025 [4] Market Positioning - CUZ's portfolio is concentrated in high-growth Sun Belt markets, benefiting from population influx and corporate relocations, which drive demand for office space [3][6] - The company has a well-diversified tenant base, reducing dependence on a single industry and ensuring steady revenue across economic cycles [4] Capital Management - Capital-recycling efforts are in place to enhance portfolio quality, including the acquisition of The Link, a 292,000-square-foot lifestyle office property in Dallas for $218 million [7][8] - The company maintains a robust balance sheet with $467.5 million in cash and cash equivalents and significant borrowing capacity, providing flexibility for growth opportunities [9] Stock Performance - Despite steady Q3 2025 FFO growth, CUZ shares have declined by 5.8% over the past three months, contrasting with the industry's growth of 3.5% [10]

Core Viewpoint - Cousins Properties Inc. is experiencing strong performance in Q3 2025, with positive revenue growth and an optimistic outlook for future earnings, driven by robust leasing activity and strategic acquisitions in high-growth markets [4][5]. Financial Performance - The company reported Q3 2025 FFO of $0.69, meeting expectations, while revenues reached $248.32 million, surpassing the consensus estimate of $240.62 million [4]. - For Q4 2025, analysts expect EPS to decline to $0.34 from $0.69 in the prior-year period, with quarterly revenue projected at $245.75 million, an increase from $225.33 million a year earlier [2]. Stock and Dividend Information - Cousins Properties' stock price has fluctuated between $24.07 and $32.55 over the past 52 weeks [3]. - The company offers a dividend yield of 4.89%, having paid $1.28 per share in dividends over the last 12 months [3]. Strategic Initiatives - The CEO highlighted the acquisition of The Link, a lifestyle office property in Dallas, as part of the company's strategy to expand its presence in key markets [5]. - The company raised its full-year 2025 FFO guidance to a range of $2.82 to $2.86 per share, up from the previous range of $2.79 to $2.85 per share, indicating confidence in ongoing market conditions [5].

Financial Data and Key Metrics Changes - The company reported $0.69 per share in Funds From Operations (FFO) for the third quarter and raised the midpoint of its guidance by $0.02 to $2.84 per share, representing a 5.6% growth compared to 2024 [4][10] - Net absorption reached a post-pandemic high, and vacancy rates declined for the first time in seven years [5][10] - The portfolio was 88.3% occupied at quarter-end, reflecting the expiration of Bank of America's lease [8][12] Business Line Data and Key Metrics Changes - The company completed 551,000 square feet of leases during the quarter, marking a 65% increase sequentially and exceeding the first quarter's activity [13] - Second-generation cash rents increased by 4.2%, with average net rent landing at $39.18, the third-highest quarterly level in the company's history [15] - Average net effective rent was $28.37, slightly higher than the previous quarter and the second-highest quarterly level in the company's history [15] Market Data and Key Metrics Changes - In Austin, transaction volume totaled 1.3 million square feet, a 16% increase above the three-year quarterly average [16] - The Atlanta portfolio saw a 15.5% increase in quarterly leasing activity, with a notable expansion lease of 24,000 square feet [17] - The Dallas market is experiencing robust demand, particularly in the Uptown area, with limited available space [26] Company Strategy and Development Direction - The company is focused on internal and external growth opportunities, prioritizing lifestyle office properties in target Sun Belt markets [9] - The acquisition of The Link for $218 million strategically expands the company's presence in Dallas [25] - The company aims to achieve occupancy of 90% or higher by year-end 2026, with a robust leasing pipeline supporting this goal [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the return-to-office trend is a significant driver of office demand, outweighing concerns about corporate layoffs [5][8] - The company anticipates continued demand acceleration and a rebalancing of the office market, with new supply at historical lows [10] - Management expressed confidence in achieving growth in occupancy and earnings, supported by a strong balance sheet and efficient operations [10][28] Other Important Information - The company has a low-leverage balance sheet, which is viewed as an offensive tool for pursuing investment opportunities [9][48] - The company is exploring various funding options for new acquisitions, including asset dispositions and settling shares [32][48] Q&A Session Summary Question: Impact of Amazon's Layoffs on Utilization - Management clarified that Amazon's layoffs were aimed at right-sizing headcount rather than impacting office space needs, emphasizing ongoing conversations with Amazon [36][38] Question: Expiration Schedule and Market Exposure - Management confirmed that the only significant expiration through 2026 is Samsung in Houston, with no major concerns about upcoming expirations [40][41] Question: Balance Sheet and Leverage - Management indicated that leverage levels are currently at 5.38, with room to increase if necessary, while maintaining an industry-leading balance sheet [48][49] Question: Parking Income Upside - Management noted that parking revenues are currently just under 7% of total revenues, with potential for further increases as utilization improves [51][52] Question: Leasing Pipeline and Rent Economics - Management reported that the leasing pipeline is strong, with no significant shifts in lease economics at this time, although they anticipate a potential landlord's market in the near future [74]

Financial Performance - Net income available to common stockholders for the third quarter of 2025 was $86 million, or $005 per share, compared to $112 million, or $007 per share, for the third quarter of 2024[13] - Funds From Operations (FFO) for the third quarter of 2025 was $1165 million, or $069 per share, compared to $1023 million, or $067 per share, for the third quarter of 2024[13] - Net income available to common stockholders for the nine months ended September 30, 2025, was $440 million, or $026 per share, compared to $323 million, or $021 per share, for the nine months ended September 30, 2024[13] - Funds From Operations (FFO) for the nine months ended September 30, 2025, was $3589 million, or $213 per share, compared to $3052 million, or $200 per share, for the nine months ended September 30, 2024[13] Portfolio and Leasing Activity - Same property net operating income (NOI) on a cash-basis increased 03% for the third quarter of 2025[13] - Second generation net rent per square foot on a cash-basis increased 42% for the third quarter of 2025[13] - The company executed 551000 square feet of office leases during the third quarter of 2025[13] - Same property net operating income (NOI) on a cash-basis increased 12% for the nine months ended September 30, 2025[13] - Second generation net rent per square foot on a cash-basis increased 49% for the nine months ended September 30, 2025[13] - The company executed 1425000 square feet of office leases during the nine months ended September 30, 2025[13] Investment and Capital Activities - The company repaid in full $2500 million of 391% privately placed senior notes on July 7, 2025[16] - The company acquired The Link, a 292000 square foot lifestyle office property in Uptown Dallas, for $2180 million on July 28, 2025[16]

Core Insights - Cousins Properties (CUZ) reported third-quarter 2025 funds from operations (FFO) per share of 69 cents, matching the Zacks Consensus Estimate and reflecting a 3% year-over-year increase [1][10] - The company experienced strong leasing activity but faced challenges with decreased weighted average occupancy and increased interest expenses [1][5] - CUZ raised its 2025 FFO per share outlook to a range of $2.82 to $2.86, up from the previous guidance of $2.79 to $2.85 [7][10] Financial Performance - Rental property revenues increased by 18.9% year over year to $246.5 million, exceeding the Zacks Consensus Estimate of $243.1 million [2][10] - Total revenues grew 18.7% year over year to $248.3 million [2] - Same-property rental property revenues on a cash basis rose 3.7% year over year to $195.4 million, while operating expenses increased by 10.3% to $71.3 million [4] Leasing Activity - CUZ executed leases for 551,398 square feet of office space in Q3, including 208,783 square feet of new and expansion leases [3] - The weighted average occupancy of the same-property portfolio was 87.4%, down 70 basis points from the previous year [4][5] - The second-generation net rent per square foot (cash basis) increased by 4.2% [5] Balance Sheet and Financial Ratios - CUZ ended the quarter with cash and cash equivalents of $467.5 million, up from $416.8 million as of June 30, 2025 [6] - The net debt-to-annualized EBITDAre ratio was 5.38, compared to 5.11 in the prior quarter, while fixed charges coverage (EBITDAre) decreased to 3.50X from 3.73X [6] Market Position - CUZ currently holds a Zacks Rank 2 (Buy) [8]

Core Insights - Cousins Properties (CUZ) reported quarterly funds from operations (FFO) of $0.69 per share, matching the Zacks Consensus Estimate and showing an increase from $0.67 per share a year ago [1] - The company achieved revenues of $246.46 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.40% and up from $207.26 million year-over-year [2] - Cousins Properties has underperformed the market, with shares down approximately 17.1% year-to-date compared to a 17.2% gain in the S&P 500 [3] Financial Performance - The FFO for the previous quarter was also $0.70 per share, indicating consistency in performance [1] - Over the last four quarters, the company has surpassed consensus FFO estimates two times and revenue estimates three times [2] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.70 on revenues of $247.37 million, and for the current fiscal year, it is $2.83 on revenues of $971.18 million [7] - The estimate revisions trend for Cousins Properties was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust - Other industry, to which Cousins Properties belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Financial Performance - Net income available to common stockholders for Q3 2025 was $8.6 million, and for the nine months ended September 30, 2025, it was $44.0 million[119]. - Total rental property revenues for Q3 2025 increased by 19.2% to $246.5 million compared to $207.3 million in Q3 2024[123]. - Non-same property rental property revenues increased by 469.4% for Q3 2025, driven by acquisitions made in December 2024 and July 2025[126]. - Total NOI for the nine months ended September 30, 2025, was $492.5 million, reflecting an 18.0% increase from $417.4 million in the same period in 2024[123]. - Funds From Operations (FFO) for the three months ended September 30, 2025, was $116.5 million, or $0.69 per share, compared to $102.3 million, or $0.67 per share, for the same period in 2024[138]. Leasing Activity - For Q3 2025, the company leased 551,000 square feet of office space, with new and expansion leases accounting for 38% of total leasing activity[115]. - The net effective rent for new leases executed during the nine months ended September 30, 2025, was $26.34 per square foot, reflecting a 22.1% increase in straight-line basis second generation net rent per square foot compared to the previous year[151]. - The company reported a total of 1,424,829 net leased square feet for the nine months ended September 30, 2025, with 128 transactions executed[151]. Operating Income - Same property net operating income (NOI) increased by 1.9% for Q3 2025 compared to Q3 2024, and by 3.0% for the nine months ended September 30, 2025 compared to the same period in 2024[116]. - NOI for the Austin market increased by 24.8% to $60.2 million in Q3 2025 compared to $48.3 million in Q3 2024[126]. - NOI from the Austin market increased by $12.0 million, or 24.8%, for the three months ended September 30, 2025, compared to the same period in the prior year[128]. Expenses and Costs - General and administrative expenses rose by $2.6 million, or 9.6%, for the nine months ended September 30, 2025, mainly due to increases in stock compensation and bonus expenses[130]. - Interest expense increased by $10.7 million, or 34.8%, for the three months ended September 30, 2025, primarily due to the issuance of public unsecured senior notes[131]. - Total depreciation and amortization increased by $15.5 million, or 17.3%, for the three months ended September 30, 2025, driven by acquisitions and development completions[132]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $16.6 million to $287.8 million for the nine months ended September 30, 2025, compared to $271.2 million for the same period in 2024, primarily due to increased economic occupancy and the end of rent abatement periods[146]. - Cash flows used in investing activities rose to $335.5 million for the nine months ended September 30, 2025, compared to $253.9 million for the same period in 2024, mainly due to the acquisition of The Link property[147]. - Total capital expenditures for the nine months ended September 30, 2025, were $180.5 million, a decrease of $3.7 million from $184.1 million in 2024, primarily due to reduced spending on projects under development[149]. Debt and Financing - The company has unsecured debt from three public unsecured senior notes totaling $1.4 billion and two term loans totaling $650 million[141]. - 90% of the company's consolidated debt bears interest at a fixed rate, while 10% is based on SOFR[141]. - The company maintains compliance with all covenants of its existing unsecured and secured debt[142]. - The company has aggregate outstanding indebtedness of $333.0 million in its unconsolidated joint ventures as of September 30, 2025, primarily consisting of mortgage or construction loans[158]. Future Outlook - The company's lifestyle office portfolio is expected to outperform the broader office sector due to long-term migration trends and a flight to quality among office users[117]. - The company expects to fund future capital requirements through cash retained from operations, strategic asset sales, and third-party capital sources, including potential securities issuance[143]. - As of September 30, 2025, the company had $131.6 million in unfunded tenant improvements and construction costs, with $83.7 million drawn under its credit facility[140]. - Other income increased by $7.5 million for the nine months ended September 30, 2025, primarily due to the sale of the Silicon Valley Bank bankruptcy claim and interest income from mezzanine loans[129].

Financial Performance - Net income available to common stockholders for Q3 2025 was $8.6 million, or $0.05 per share, compared to $11.2 million, or $0.07 per share in Q3 2024[12]. - Funds From Operations (FFO) for Q3 2025 was $116.5 million, or $0.69 per share, compared to $102.3 million, or $0.67 per share in Q3 2024[12]. - Rental property revenues for Q3 2025 reached $246.461 million, a 19% increase from $207.260 million in Q3 2024[32]. - Net income available to common stockholders for Q3 2025 was $8.590 million, compared to $11.198 million in Q3 2024, reflecting a decrease of 23%[32]. - Funds from Operations (FFO) for Q4 2024 reached $108,916,000, up from $99,496,000 in Q3 2024, representing an increase of 14.3%[45]. - The company reported a Net Income of $13,813,000 in Q4 2024, compared to $11,356,000 in Q3 2024, an increase of 21.6%[45]. - Funds From Operations (FFO) for the nine months ended September 30, 2025, reached $358,864,000, translating to $2.13 per share, up from $305,176,000 and $2.00 per share in 2024[111]. - Full Year 2025 Guidance projects Net Income Available to Common Stockholders between $51,268,000 and $58,016,000, with per share amounts ranging from $0.30 to $0.34[115]. - Projected Funds From Operations (FFO) for 2025 is estimated to be between $475,788,000 and $482,536,000, equating to $2.82 to $2.86 per share[115]. Asset and Liability Management - Total assets increased to $8.900 billion as of September 30, 2025, compared to $8.802 billion at the end of 2024[28]. - Total liabilities increased to $4.142 billion in 2025 from $3.932 billion in 2024, marking a rise of 5.3%[30]. - Total equity decreased to $4.758 billion in 2025 from $4.870 billion in 2024, a decline of 2.3%[30]. - Total consolidated debt amounts to $3.3 billion, with 87% being fixed-rate debt at a weighted average interest rate of 4.94%[96]. - Floating rate debt constitutes 13% of total debt, amounting to approximately $458.7 million, with a weighted average interest rate of 5.71%[96]. - The company has a total of $1.7 billion in principal payments due in 2025, representing 13% of total maturities[92]. - The company’s total debt maturities are structured with 48% due thereafter, indicating a long-term debt strategy[92]. Operational Metrics - Same property net operating income (NOI) on a cash-basis increased by 0.3% for Q3 2025[20]. - The office percent leased at the end of Q3 2025 was 90.0%, down from 91.6% in Q4 2024[33]. - The company reported a net effective rent per square foot of $27.11 for YTD 2025, compared to $24.56 in 2023, indicating an increase of 10.4%[35]. - The total rentable square feet increased to 21,609 thousand in Q3 2025 from 21,113 thousand in Q4 2024, an increase of 2.3%[33]. - The company experienced a change in NOI of 3.0% over the prior year period for YTD 2025[35]. - The weighted average occupancy for Q3 2025 improved to 88.1%, compared to 87.4% in Q3 2024[70]. - The company’s portfolio includes 21,142,000 square feet of office properties, with a net operating income (NOI) of $483,685,000[63]. Market Activity and Acquisitions - The company executed 551,000 square feet of office leases in Q3 2025[20]. - The company acquired The Link, a 292,000 square foot lifestyle office property in Uptown Dallas, for $218.0 million on July 28, 2025[21]. - Completed property acquisitions include The Link Office in Dallas for $218,000,000 and Proscenium in Atlanta for $83,250,000[85]. - The company sold Carolina Square in Charlotte for a gross sales price of $105,000,000, representing a 50% ownership interest[88]. - The company completed the sale of Burnett Plaza in Fort Worth for $137,500,000, with a total square footage of 1,023,000[88]. - The company has a development pipeline totaling 3,735,000 square feet with a total project cost of $1,841,250,000[85]. - The company anticipates significant future growth through its development pipeline and strategic acquisitions[84]. Future Projections and Guidance - The company raised its FFO guidance for the year ending December 31, 2025, to between $2.82 and $2.86 per share, up from the previous range of $2.79 to $2.85 per share[21]. - The company anticipates a steady increase in NOI across various properties, with the highest projected for the 4th quarter of 2024 at $146,320,000[47]. - The total NOI for the 1st quarter of 2025 is expected to reach $163,005,000, indicating a positive growth trajectory[47]. - The company is committed to ongoing investment in new technologies and property enhancements to support future growth[47]. Shareholder Information - The Company’s common stock price per share at the end of Q3 2025 was $28.94, with 167,990 shares outstanding[102]. - The weighted average shares diluted increased from 152,040 in 2023 to a projected 168,698 in YTD 2025, indicating potential shareholder dilution[52]. - Common dividends are expected to total $199.7 million in 2024, with a per-share dividend of $1.28[106].

Core Insights - Cousins Properties has released its third quarter 2025 results, with a conference call scheduled for October 31, 2025, to discuss these results [1][2]. Company Overview - Cousins Properties is a fully integrated, self-administered, and self-managed real estate investment trust (REIT) based in Atlanta, GA, primarily investing in Class A office buildings in high-growth Sun Belt markets [3]. - The company was founded in 1958 and focuses on creating shareholder value through expertise in development, acquisition, leasing, and management of high-quality real estate assets [3]. - Cousins Properties employs a comprehensive strategy based on a simple platform, trophy assets, and opportunistic investments [3]. Financial Information - The Board of Directors of Cousins Properties has declared a cash dividend of $0.32 per common share for the third quarter of 2025 [5].