Core Insights - Cousins Properties Inc. is a real estate investment trust focused on high-quality Class A office and mixed-use properties in high-growth Sun Belt markets [1] - The company is set to report Q3 2025 earnings on October 30, with expected EPS of $0.31, a decrease from $0.67 in the prior-year period, while quarterly revenue is anticipated to reach $241.59 million, an increase from $209.21 million a year earlier [2] Historical Performance - Over the past 10 years, Cousins Properties' stock price has decreased from approximately $27.01 to $26.62, resulting in a decline in investment value from $10,000 to $9,856, despite dividend payments [3] - The company has paid about $12.22 in dividends per share over the last decade, yielding a total of $4,524 from dividends alone [4] - The total return on a $10,000 investment over 10 years is calculated at $14,380, equating to a total return of 43.80%, significantly lower than the S&P 500's total return of 294.50% during the same period [5] Future Outlook - Cousins Properties has a consensus rating of "Overweight" with a price target of $31.17, indicating a potential upside of over 17% from the current stock price [7] - The company reported Q2 2025 earnings with FFO of $0.70, surpassing the consensus estimate of $0.69, although revenues of $240.13 million fell short of the consensus of $242.15 million [7] - CEO Colin Connolly highlighted strong leasing activity, with over 80% being new or expansion leasing, and announced the acquisition of The Link, a trophy lifestyle office property in Uptown Dallas, enhancing its strategic market presence [8] - The company has raised its full-year FFO guidance, indicating a growth rate of 4.8% over the previous year [8]

Core Viewpoint - The article compares Cousins Properties (CUZ) and EastGroup Properties (EGP) to determine which stock is more attractive to value investors [1] Group 1: Investment Strategies - Value investors often utilize a combination of a strong Zacks Rank and high grades in the Value category to identify potential stocks [2] - The Zacks Rank focuses on companies with positive earnings estimate revisions, while Style Scores assess companies based on specific characteristics [2][3] Group 2: Valuation Metrics - Both CUZ and EGP currently hold a Zacks Rank of 2 (Buy), indicating positive earnings outlooks for both companies [3] - CUZ has a forward P/E ratio of 9.40, significantly lower than EGP's forward P/E of 19.78 [5] - CUZ's PEG ratio is 2.40, while EGP's PEG ratio stands at 3.61, suggesting CUZ may be more attractive based on growth expectations [5] - CUZ's P/B ratio is 0.93, compared to EGP's P/B ratio of 2.69, further indicating CUZ's relative undervaluation [6] - Based on these valuation metrics, CUZ is rated with a Value grade of B, while EGP has a Value grade of D, suggesting CUZ is the superior value option [6]

Core Points - Cousins Properties will release its third quarter 2025 earnings on October 30, 2025, after market close [1] - The earnings conference call is scheduled for October 31, 2025, at 10:00 a.m. Eastern Time [1] - A playback of the conference call will be available from October 31 to November 7, 2025 [2] Company Overview - Cousins Properties is a self-administered and self-managed real estate investment trust (REIT) based in Atlanta, GA [4] - The company primarily invests in Class A office buildings located in high-growth Sun Belt markets [4] - Founded in 1958, Cousins Properties focuses on creating shareholder value through development, acquisition, leasing, and management of high-quality real estate assets [4]

Core Points - Cousins Properties declared a cash dividend of $0.32 per common share for Q3 2025, payable on October 15, 2025, to shareholders of record on October 3, 2025 [1] - The company 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 [1] - Founded in 1958, Cousins Properties focuses on creating shareholder value through development, acquisition, leasing, and management of high-quality real estate assets [1] Financial Highlights - The dividend for Q3 2025 is set at $0.32 per share, reflecting the company's ongoing commitment to returning value to shareholders [1] - Cousins Properties has a comprehensive strategy that includes a focus on trophy assets and opportunistic investments [1] Recent Developments - Cousins Properties recently acquired The Link, a 292,000 square foot lifestyle office property in Dallas, for $218 million [3]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on financial markets, launching a book titled "Financial Markets: The Next Generation" in 2025 [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies, which has aided in establishing his own equities research firm, Albert Anthony & Company, in 2021 [1] - The firm operates 100% remotely and focuses on providing general market commentary and research based on publicly available data [1] Company Background - Albert Anthony & Company was founded in 2021 and is managed remotely, reflecting a modern approach to financial analysis and research [1] - The company does not engage in writing about non-publicly traded companies, small cap stocks, or startup CEOs, indicating a focus on more established market entities [1] Professional Experience - Albert Anthony has participated in numerous business and innovation conferences in Croatia, enhancing his understanding of the fast-growing southern European economy [1] - He has completed degrees and ongoing training from institutions such as Drew University and the Corporate Finance Institute, showcasing a commitment to continuous professional development [1] Media Presence - In addition to written contributions, Albert Anthony is launching a YouTube show titled "Financial Markets with Albert Anthony" in 2025, where he will provide market commentary similar to his written work [1] - He has also been involved in European casting agencies, indicating a diverse range of interests beyond financial analysis [1]

Core Viewpoint - Cousins Properties Incorporated held its Q2 2025 earnings call on August 1, 2025, with key executives present to discuss financial performance and strategic initiatives [1][2][3]. Company Participants - The call featured several high-ranking officials from the company, including the President and CEO, Chief Financial Officer, and Chief Investment Officer, indicating a comprehensive leadership presence [1][3]. Financial Reporting - A press release and supplemental financial package were distributed prior to the call, which included reconciliations of non-GAAP financial measures to GAAP measures, highlighting the company's commitment to transparency in financial reporting [4].

Core Insights - Cousins Properties (CUZ) reported second-quarter 2025 funds from operations (FFO) per share of 70 cents, matching the Zacks Consensus Estimate and reflecting a 2.9% year-over-year increase [1][10] - The company experienced healthy new and expansion leasing activity, but faced a decline in weighted average occupancy and increased interest expenses, impacting growth [2][6] - Rental property revenues rose 12.4% year-over-year to $237.7 million, although it fell short of the Zacks Consensus Estimate of $242.5 million [3] Financial Performance - Total revenues increased by 12.7% year-over-year to $240.1 million [3] - Same-property rental property revenues on a cash basis decreased by 0.6% year-over-year to $192.1 million, while same-property operating expenses fell by 3.7% to $69.0 million, resulting in a 1.2% increase in same-property net operating income [5] - The weighted average occupancy for the same-property portfolio was 88.4%, a slight decline from the previous year [5] Leasing Activity - CUZ executed leases for 334,000 square feet of office space in Q2, with 268,000 square feet attributed to new and expansion leases, accounting for 80% of total leasing activity [4][10] Balance Sheet and Debt - At the end of Q2 2025, CUZ had cash and cash equivalents of $416.8 million, a significant increase from $7.3 million at the end of 2024 [7] - The net debt-to-annualized EBITDAre ratio was 5.11, up from 4.87 in the prior quarter, while fixed charges coverage (EBITDAre) decreased to 3.73X from 4.05X [7] 2025 Outlook - CUZ revised its 2025 FFO per share guidance to a range of $2.79 to $2.85, up from the previous range of $2.75 to $2.83, with the new midpoint indicating a 4.8% growth rate year-over-year [8][10]

Financial Data and Key Metrics Changes - The company reported $0.70 per share in FFO, exceeding consensus by $0.01 [8] - Same property net operating income increased by 1.2% on a cash basis and 1.6% year to date [8] - The midpoint of the full-year guidance was increased to $2.82 per share, representing a 4.8% growth rate over the previous year [10][38] Business Line Data and Key Metrics Changes - Leasing activity was strong, with 334,000 square feet of leases completed, 80% of which were new or expansion leases [9][19] - Cash rents on second generation space increased by 10.9% in the quarter and 5.4% year to date [9][20] - The average net rent for the quarter was $40.95, a 14% increase over the previous quarter [21] Market Data and Key Metrics Changes - The office market in Atlanta saw a significant reduction in inventory, with a decrease of 2.9 million square feet, marking the largest quarterly reduction recorded [23] - In Austin, market leasing volume reached 1.2 million square feet, up 11.4% from the three-year quarterly average [22] - The Tampa market experienced a 50 basis point drop in total vacancy, with leasing velocity 12.5% ahead of last year [26] Company Strategy and Development Direction - The company aims to grow earnings, cash flow, and NAV by increasing occupancy and reducing CapEx [13] - There is a focus on upgrading the quality of the lifestyle portfolio and enhancing geographic and industry diversification [13] - The company plans to recycle capital from older properties with lower occupancy and higher CapEx profiles to fund new acquisitions [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while uncertainties over tariffs and interest rates remain, there are encouraging signs in the Sunbelt lifestyle office market [11] - The investment sales market is opening up, with more private investors actively pursuing office acquisitions [12] - Management expressed confidence in the ability to grow earnings both organically and externally while improving the portfolio [15] Other Important Information - The company completed the acquisition of The Link in Uptown Dallas for $218 million, which is expected to be immediately accretive to earnings [28][31] - The company has executed transactions totaling $2.3 billion in lifestyle office properties since 2019, while also selling $1.3 billion of non-core assets [14] Q&A Session Summary Question: Can you provide more context around the underwriting of The Link acquisition? - Management highlighted the opportunity due to significantly below-market rents and a strong rent roll with minimal CapEx needs [42][43] Question: How much are you looking at in terms of potential acquisitions? - Management is continuously evaluating market and off-market opportunities and expects more compelling opportunities in the second half of the year [44] Question: Which market saw a decline in leasing spreads? - The only market that did not see roll-ups was Phoenix, attributed to a tough comparison with limited leasing activity [47] Question: Can you discuss the leasing pipeline and trends? - The leasing pipeline remains strong across all markets, with financial services being the heaviest contributor [71] Question: What are the trends in net migration to your markets? - There is an increase in new to market requirements, particularly in Atlanta and Charlotte, as companies expand their presence in the Sunbelt [73] Question: How is the demand from Big Tech in Austin trending? - There are tangible signs of improving demand, with some companies starting to grow their footprint again [97]

Financial Data and Key Metrics Changes - The company reported $0.70 per share in Funds From Operations (FFO), exceeding consensus by $0.01 [6] - Same property net operating income (NOI) increased by 1.2% on a cash basis and 1.6% year to date [6] - The midpoint of the full-year guidance was raised to $2.82 per share, reflecting a 4.8% growth rate over the previous year [8][36] Business Line Data and Key Metrics Changes - Leasing activity was strong, with 334,000 square feet of leases completed, 80% of which were new or expansion leases [7][16] - Cash rents on second-generation space increased by 10.9% in the quarter and 5.4% year to date [7][17] - The average net rent for the quarter was $40.95, a 14% increase over the previous quarter [18] Market Data and Key Metrics Changes - The office market in Atlanta saw a significant reduction in inventory, with a decrease of 2.9 million square feet, marking the largest quarterly reduction recorded [20] - Positive net absorption was reported in the Atlanta market for the first time in ten quarters [20] - In Austin, leasing volume reached 1.2 million square feet, up 11.4% from the three-year quarterly average [19] Company Strategy and Development Direction - The company aims to grow earnings, cash flow, and net asset value (NAV) by increasing occupancy and reducing capital expenditures [11] - There is a focus on upgrading the quality of the lifestyle portfolio and enhancing geographic and industry diversification [11] - The company plans to recycle capital from older properties with lower occupancy and higher CapEx profiles to fund new acquisitions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while uncertainties over tariffs and interest rates persist, there are encouraging signs in the Sunbelt lifestyle office market [9] - The investment sales market is opening up, with more private investors actively pursuing office acquisitions [10] - Management expressed confidence in the ability to grow earnings both organically and through acquisitions, despite macroeconomic uncertainties [37] Other Important Information - The company completed the acquisition of The Link, a trophy lifestyle office property in Uptown Dallas, for $218 million [26] - The initial cash yield from The Link is anticipated to be 6.7%, with a gap yield of 8.3% [28] - The company has executed transactions totaling $2.3 billion in lifestyle office properties since 2019 [12] Q&A Session Summary Question: Can you provide more context around the underwriting of The Link acquisition? - Management highlighted the below-market rents and strong tenant profile as key factors in the acquisition decision [40][41] Question: How much are you looking at in terms of potential acquisitions? - Management is continuously evaluating market and off-market opportunities and expects more compelling options in the second half of the year [43] Question: Which market saw a decline in leasing spreads? - The Phoenix market did not see roll-ups in rents due to limited qualifying leases [46] Question: Can you discuss the non-core dispositions? - Dispositions will be driven by new investment opportunities, focusing on older properties with higher CapEx profiles [47][48] Question: What is the status of the Newhof project? - Management remains optimistic about Newhof, noting recent improvements in leasing activity and tenant interest [52][54] Question: What trends are being observed in the leasing pipeline? - The leasing pipeline remains strong across all markets, with financial services being the heaviest contributor [72] Question: How is the capital market environment currently? - The capital markets have improved, with lower borrowing costs and increased liquidity, which is favorable for transactions [102]

Acquisition Highlights - Cousins acquired The Link, a lifestyle office property in Uptown Dallas, for $218 million, which equates to $747 per square foot[2, 5] - The property encompasses 292,000 square feet and was built in 2021[5] - The property is 93.6% leased with a weighted average lease term of 9.3 years[5] - The 12-month cash yield is 6.7%, and the GAAP yield is 8.3%[5] Property Details - The Link is a 25-story lifestyle office tower located in Uptown Dallas[7] - It features first-class amenities, including a customer lounge, fitness and conference centers, and an outdoor terrace[7] - The location provides convenient access to major highways and is near Klyde Warren Park[7] Market Context - Uptown Dallas is described as a dense and amenitized submarket with declining vacancy and rent growth outpacing the national average for lifestyle office product[8, 9] Forward-Looking Statements - The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to vary materially[11, 12] - These statements are based on management's beliefs, assumptions, and expectations, which may change[12]