Core Insights - The transaction involving The Link at Uptown is the largest office property sale in the Dallas-Fort Worth area year-to-date, with a sale price of $218 million [1][8] - The buyer, Cousins Properties, is a well-respected real estate investment trust based in Atlanta [2] - The sale reflects strong investor confidence in the Dallas-Fort Worth market, highlighting its resilience and growth potential [3][5] Company Overview - Newmark Group, Inc. is a leading commercial real estate advisor and service provider, facilitating the sale of The Link at Uptown [1] - For the twelve months ending March 31, 2025, Newmark generated revenues exceeding $2.8 billion and operates approximately 165 offices globally with around 8,100 professionals [6] Property Details - The Link at Uptown is a 25-story Class AA office tower built in 2021, encompassing 292,000 square feet and featuring luxury amenities [3][4] - The property has a diverse tenant base with leases signed post-pandemic, indicating potential for future rent growth [3] Market Context - Dallas-Fort Worth is projected to lead the nation in employment and population growth through 2026, showcasing a strong post-pandemic job recovery and high return-to-office rates [5]

PART I [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) These unaudited statements detail the company's financial position, operations, and cash flows, reflecting asset growth to **$9.05 billion** and increased revenues and net income [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to **$9.05 billion** by June 30, 2025, driven by higher cash balances, with liabilities also rising Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,051,863** | **$8,802,146** | | Cash and cash equivalents | $416,840 | $7,349 | | Real estate assets, net | $7,902,022 | $7,940,323 | | **Total Liabilities** | **$4,250,710** | **$3,931,979** | | Notes payable | $3,476,761 | $3,095,666 | | **Total Equity** | **$4,801,153** | **$4,870,167** | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenues reached **$240.1 million** in Q2 2025, leading to increased net income and diluted earnings per share year-over-year Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $240,128 | $212,978 | $490,456 | $422,219 | | Net Income | $14,658 | $7,961 | $35,751 | $21,412 | | Net Income Available to Common Stockholders | $14,483 | $7,840 | $35,380 | $21,128 | | Net Income per Share (diluted) | $0.09 | $0.05 | $0.21 | $0.14 | [Consolidated Statements of Cash Flows](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities increased to **$167.3 million**, with reduced cash used in investing and a surge in financing activities Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $167,312 | $153,807 | | Net cash used in investing activities | ($25,411) | ($181,275) | | Net cash provided by financing activities | $267,590 | $27,375 | | **Net Increase (Decrease) in Cash** | **$409,491** | **($93)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The notes provide detailed disclosures on accounting policies and significant financial activities, including acquisitions and capital market transactions - Subsequent to quarter-end, the company acquired The Link in Dallas for **$218.0 million**[38](index=38&type=chunk) - Real estate debt investments decreased from **$167.2 million** to **$17.0 million** due to significant loan repayments, including the **$138.0 million** Saint Ann mortgage and **$12.8 million** Radius mezzanine loan[39](index=39&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - In June 2025, the company issued **$500.0 million** of 5.250% public senior notes due 2030, with proceeds used for debt repayment and acquisitions[68](index=68&type=chunk) - The company sold its SVB Financial bankruptcy claim for **$4.6 million** in cash, recognized as other revenue[97](index=97&type=chunk) - Under its ATM Program, **2.9 million shares** were sold via Forward Sales contracts, with **$305.6 million** remaining available as of June 30, 2025[92](index=92&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategy, highlighting strong operational performance with increased NOI and FFO per share, supported by robust liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net income increased in Q2 2025, driven by higher Net Operating Income (NOI) from both Same Property and Non-Same Property segments Net Operating Income (NOI) Growth - Q2 2025 vs Q2 2024 (in thousands) | Category | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Same Property NOI | $139,122 | $134,752 | $4,370 | 3.2% | | Non-Same Property NOI | $24,414 | $5,002 | $19,412 | 388.1% | | **Total NOI** | **$163,536** | **$139,754** | **$23,782** | **17.0%** | - NOI for the Austin market increased **26.4%** and Charlotte market increased **73.1%** in Q2 2025, primarily due to recent acquisitions[128](index=128&type=chunk) - Interest expense increased by **$8.8 million (29.5%)** in Q2 2025, primarily due to recent public unsecured senior note issuances[132](index=132&type=chunk) [Funds From Operations (FFO)](index=31&type=section&id=Funds%20From%20Operations) Funds From Operations (FFO) increased to **$117.5 million** or **$0.70 per diluted share** in Q2 2025, reflecting higher NOI FFO Reconciliation Highlights (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Common Stockholders | $14,483 | $7,840 | $35,380 | $21,128 | | Depreciation and amortization of real estate | $103,258 | $95,812 | $207,466 | $182,387 | | **Funds From Operations** | **$117,494** | **$103,346** | **$242,328** | **$202,842** | | **FFO per Diluted Share** | **$0.70** | **$0.68** | **$1.44** | **$1.33** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$416.8 million** in cash and full access to its **$1.0 billion** credit facility - As of June 30, 2025, the company held **$416.8 million** in cash and had full **$1.0 billion** available under its credit facility[142](index=142&type=chunk) - **93%** of the company's consolidated debt bears interest at a fixed rate[143](index=143&type=chunk) Leasing Activity - Six Months Ended June 30, 2025 | Metric | New Leases | Renewals | Total | | :--- | :--- | :--- | :--- | | Net Leased Square Feet | 342,165 | 400,488 | 873,431 | | Lease Term (Years) | 7.9 | 5.6 | 6.9 | | Net Effective Rent (per sq ft) | $25.83 | $26.47 | $26.32 | | Increase in Straight-Line 2nd Gen Rent | | | 20.8% | - Unconsolidated joint ventures hold **$368.6 million** in aggregate third-party debt, which is generally non-recourse[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure have occurred since the prior annual report disclosures - No material changes in market risk for notes payable were observed compared to the 2024 Form 10-K disclosures[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of the report period end[165](index=165&type=chunk) PART II [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings not expected to materially affect financial condition or results - Legal proceedings, as described in Note 10, are not expected to have a material adverse effect on the company[90](index=90&type=chunk)[166](index=166&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since prior disclosures in the 2024 Form 10-K and Q1 2025 Form 10-Q - No material changes in risk factors were observed since the 2024 Form 10-K and Q1 2025 Form 10-Q disclosures[167](index=167&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not conduct any sales of unregistered common shares during Q2 2025, with only minor share remittances for tax obligations - The company made no sales of unregistered securities during Q2 2025[168](index=168&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate agreements, debt indentures, and required CEO/CFO certifications - The report includes standard exhibits such as CEO/CFO certifications and financial data in inline XBRL format[172](index=172&type=chunk)

```markdown [Earnings Release](index=2&type=section&id=Earnings%20Release) Cousins Properties reported strong Q2 2025 results with significant leasing activity, increased net income and FFO, strategic acquisition of The Link, and raised full-year FFO guidance [Highlights](index=2&type=section&id=Highlights) Cousins Properties reported a strong second quarter for 2025, highlighted by robust new and expansion leasing, which constituted over 80% of total activity. The company raised its full-year 2025 FFO guidance, projecting a 4.8% growth rate over the previous year. A key strategic move was the post-quarter acquisition of The Link, a trophy office property in Uptown Dallas, expanding its presence in a key market - Over **80%** of leasing activity in Q2 2025 was from new or expansion leases[12](index=12&type=chunk) - The company raised its full-year FFO guidance, with the new midpoint representing a **4.8%** growth rate over 2024[12](index=12&type=chunk) - Subsequent to the quarter's end, Cousins acquired **The Link**, a trophy lifestyle office property in Uptown Dallas[12](index=12&type=chunk)[23](index=23&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) For the second quarter of 2025, Net Income available to common stockholders significantly increased to $14.5 million ($0.09 per share) from $7.8 million ($0.05 per share) in Q2 2024. Funds From Operations (FFO) also grew to $117.5 million ($0.70 per share) compared to $103.3 million ($0.68 per share) in the prior-year quarter. Year-to-date figures show even stronger growth, with FFO reaching $242.3 million ($1.44 per share) Q2 2025 Financial Results vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Common Stockholders) | $14.5M | $7.8M | | Net Income per Share | $0.09 | $0.05 | | FFO | $117.5M | $103.3M | | FFO per Share | $0.70 | $0.68 | Six Months Ended June 30, 2025 Financial Results vs. 2024 | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Income (Common Stockholders) | $35.4M | $21.1M | | Net Income per Share | $0.21 | $0.14 | | FFO | $242.3M | $202.8M | | FFO per Share | $1.44 | $1.33 | [Operations and Leasing Activity](index=2&type=section&id=Operations%20and%20Leasing%20Activity) Operational performance remained positive, with same-property cash NOI increasing by 1.2% in Q2 and 1.6% year-to-date. The company executed 334,000 square feet of office leases in the second quarter, with new and expansion leases making up 80% of this activity. Second-generation net rent on a cash basis saw a strong increase of 10.9% for the quarter - **Q2 2025 Leasing:** - Executed **334,000 sq. ft.** of office leases - New and expansion leases: **268,000 sq. ft.** (**80%** of total) - Same property cash NOI increased **1.2%** - Second generation cash net rent increased **10.9%**[13](index=13&type=chunk)[15](index=15&type=chunk) - **YTD 2025 Leasing:** - Executed **873,000 sq. ft.** of office leases - New and expansion leases: **473,000 sq. ft.** (**54%** of total) - Same property cash NOI increased **1.6%** - Second generation cash net rent increased **5.4%**[22](index=22&type=chunk) [Investing and Finance Activity](index=3&type=section&id=Investing%20and%20Finance%20Activity) In Q2 2025, the company issued $500.0 million of 5.250% public unsecured senior notes to pay off maturing debt and partially fund the acquisition of The Link. It also utilized its ATM program, selling 2.9 million shares on a forward basis year-to-date. Post-quarter, Cousins acquired The Link in Dallas for $218.0 million and repaid $250.0 million of privately placed senior notes - Issued **$500.0 million** of **5.250%** public unsecured senior notes, with net proceeds of **$496.9 million**[23](index=23&type=chunk) - Acquired **The Link**, a **292,000 sq. ft.** office property in Uptown Dallas, for **$218.0 million** subsequent to quarter end[23](index=23&type=chunk) - Sold **2.9 million** common shares year-to-date on a forward basis under the ATM program at an average price of **$30.44 per share**[23](index=23&type=chunk) [2025 Earnings Guidance](index=3&type=section&id=Earnings%20Guidance) The company raised its full-year 2025 guidance, reflecting higher parking income, favorable execution on its senior notes issuance, and the acquisition of The Link. The updated guidance anticipates FFO between $2.79 and $2.85 per share Full Year 2025 Guidance (per share) | Metric | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Net Income per Share | $0.26 - $0.34 | $0.28 - $0.34 | | FFO per Share | $2.75 - $2.83 | $2.79 - $2.85 | - The increase in FFO guidance is driven by higher parking income, better than forecast execution on the unsecured senior notes, and the acquisition of The Link[23](index=23&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Cousins Properties is an Atlanta-based REIT specializing in Class A office buildings in high-growth Sun Belt markets, focusing on trophy assets and opportunistic investments [Company Overview](index=3&type=section&id=Company%20Overview) Cousins Properties is a fully integrated, self-administered real estate investment trust (REIT) based in Atlanta, GA. Founded in 1958, the company focuses on investing in, developing, and managing Class A office buildings located in high-growth Sun Belt markets - **Cousins Properties** is a REIT specializing in **Class A office buildings** in **high-growth Sun Belt markets**[18](index=18&type=chunk) - The company's strategy is based on a **simple platform, trophy assets, and opportunistic investments**[18](index=18&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The company's financial position as of Q2 2025 shows increased total assets and liabilities, driven by higher cash and notes payable, alongside significant growth in revenues and net income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Cousins Properties' total assets increased to $9.05 billion from $8.80 billion at year-end 2024. This was driven by a significant rise in cash and cash equivalents to $416.8 million. Total liabilities also grew to $4.25 billion, primarily due to an increase in notes payable to $3.48 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,051,863** | **$8,802,146** | | Cash and cash equivalents | $416,840 | $7,349 | | Operating properties, net | $7,747,297 | $7,785,597 | | **Total Liabilities** | **$4,250,710** | **$3,931,979** | | Notes payable | $3,476,761 | $3,095,666 | | **Total Equity** | **$4,801,153** | **$4,870,167** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues increased to $240.1 million from $213.0 million in Q2 2024, driven by higher rental property revenues. Net income available to common stockholders rose to $14.5 million for the quarter, a substantial improvement from $7.8 million in the prior-year period Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Rental property revenues | $237,715 | $211,474 | $480,742 | $420,292 | | Total revenues | $240,128 | $212,978 | $490,456 | $422,219 | | Total expenses | $223,883 | $205,453 | $451,235 | $401,692 | | Net income | $14,658 | $7,961 | $35,751 | $21,412 | | Net income available to common stockholders | $14,483 | $7,840 | $35,380 | $21,128 | [Key Performance Metrics](index=5&type=section&id=Key%20Performance%20Metrics) The company's key metrics show stable to improving performance. As of Q2 2025, the total office portfolio was 91.6% leased, with weighted average occupancy at 89.1%. Second-generation cash-basis net rent increased by 10.9% in the quarter. Credit ratios remain healthy, with Net Debt to Annualized EBITDAre at 5.11x. The FFO payout ratio was 45.7% for the quarter Q2 2025 Performance Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Office Percent Leased (period end) | 91.6% | 91.2% | | Office Weighted Average Occupancy | 89.1% | 88.5% | | Change in Cash-Basis Second Gen. Net Rent | 10.9% | 18.2% | | Change in Cash-Basis Same Property NOI | 1.2% | 5.1% | Q2 2025 Credit & Dividend Metrics | Metric | Q2 2025 | | :--- | :--- | | Net Debt/Annualized EBITDAre | 5.11x | | Net Debt/Total Market Capitalization | 37.2% | | FFO Payout Ratio | 45.7% | | FAD Payout Ratio | 75.6% | [Funds From Operations (FFO)](index=7&type=section&id=Funds%20From%20Operations%20-%20Summary) FFO significantly increased in Q2 2025 and year-to-date, driven by higher Net Operating Income, with detailed breakdowns available by property [FFO Summary](index=7&type=section&id=FFO%20Summary) Funds From Operations (FFO) for Q2 2025 was $117.5 million, or $0.70 per share, compared to $103.3 million, or $0.68 per share, in Q2 2024. The growth was driven by an increase in Net Operating Income (NOI), which reached $166.7 million for the quarter. For the first half of 2025, FFO totaled $242.3 million, or $1.44 per share FFO Summary (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | NOI | $166,701 | $141,315 | $331,929 | $279,940 | | FFO | $117,494 | $103,346 | $242,328 | $202,842 | | FFO per Share | $0.70 | $0.68 | $1.44 | $1.33 | [FFO Detail by Property](index=8&type=section&id=FFO%20Detail) The detailed FFO schedule breaks down Net Operating Income (NOI) by individual property. For Q2 2025, the total NOI was $166.7 million, with consolidated properties contributing $163.5 million and unconsolidated properties contributing $3.2 million. Top contributing properties include The Domain, Sail Tower, and Terminus NOI Contribution - Q2 2025 (in thousands) | Source | Q2 2025 NOI | | :--- | :--- | | Consolidated Properties | $163,536 | | Unconsolidated Properties | $3,165 | | **Total NOI** | **$166,701** | [Portfolio Statistics](index=9&type=section&id=Portfolio%20Statistics) The company's portfolio consists of 20.85 million square feet of office space, with high leased and occupancy rates, primarily concentrated in key Sun Belt markets like Austin and Atlanta [Portfolio Overview](index=9&type=section&id=Portfolio%20Overview) As of Q2 2025, the company's total office portfolio comprised 20.85 million rentable square feet. The portfolio-wide leased percentage was 91.6%, with a weighted average occupancy of 89.1%. The portfolio is geographically diversified across key Sun Belt markets, with Austin and Atlanta being the largest contributors to NOI Total Office Portfolio - Q2 2025 | Metric | Value | | :--- | :--- | | Rentable Square Feet | 20,850,000 | | End of Period Leased % | 92.1% (1Q25), 91.6% (2Q25) | | Weighted Average Occupancy % | 90.0% (1Q25), 89.1% (2Q25) | | Total Property Level Debt | $485.3M | [Portfolio by Market](index=9&type=section&id=Portfolio%20by%20Market) The portfolio's Net Operating Income is heavily concentrated in the Sun Belt. For Q2 2025, Austin was the largest market, contributing 36.6% of total NOI, followed by Atlanta at 31.8%. Other significant markets include Charlotte (10.8%), Tampa (7.9%), and Phoenix (7.2%) Q2 2025 Portfolio NOI by Market | Market | % of Total NOI | | :--- | :--- | | Austin | 36.6% | | Atlanta | 31.8% | | Charlotte | 10.8% | | Tampa | 7.9% | | Phoenix | 7.2% | | Dallas | 2.2% | [Same Property Performance](index=11&type=section&id=Same%20Property%20Performance) The company's same-property portfolio demonstrated positive growth. For the second quarter of 2025, same-property NOI increased by 3.2% on a GAAP basis and 1.2% on a cash basis compared to the prior year. Year-to-date, the growth was 3.6% (GAAP) and 1.6% (cash basis) Same Property NOI Growth (YoY % Change) | Period | Same Property NOI | Cash-Basis Same Property NOI | | :--- | :--- | :--- | | Q2 2025 | 3.2% | 1.2% | | YTD 2025 | 3.6% | 1.6% | [Office Leasing Activity](index=11&type=section&id=Office%20Leasing%20Activity) The company demonstrated strong leasing activity in Q2 2025, with a high proportion of new leases and significant increases in second-generation net rents [Leasing Activity Summary](index=11&type=section&id=Leasing%20Activity%20Summary) In Q2 2025, Cousins leased 334,368 square feet across 41 transactions, with a weighted average lease term of 7.9 years. New leases accounted for 220,858 square feet. For the first six months of 2025, total leasing activity reached 873,431 square feet Leasing Activity | Metric | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | Net Leased Square Feet | 334,368 | 873,431 | | New Leases (sq. ft.) | 220,858 | 342,165 | | Renewal Leases (sq. ft.) | 66,045 | 400,488 | | Weighted Avg. Lease Term (Yrs) | 7.9 | 6.9 | | Net Effective Rent (per sq. ft.) | $28.35 | $26.32 | [Second Generation Rent Spreads](index=12&type=section&id=Second%20Generation%20Rent%20Spreads) The company achieved strong rental rate growth on second-generation leases. For leases signed in Q2 2025, the increase in net rent per square foot was 27.2% on a straight-line basis and 10.9% on a cash basis Increase in Second Generation Net Rent per sq. ft. | Basis | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | Straight-line | 27.2% | 20.8% | | Cash-basis | 10.9% | 5.4% | [Lease Expirations and Tenant Profile](index=12&type=section&id=Office%20Lease%20Expirations) The company maintains a well-staggered lease expiration schedule, with a diversified tenant base anchored by major technology and investment-grade companies [Lease Expiration Schedule](index=12&type=section&id=Lease%20Expiration%20Schedule) The company has a well-staggered lease expiration profile. Only 3.4% of leased space is set to expire in the remainder of 2025, and 6.4% in 2026. A significant portion, 25.9% of leased space, expires in 2034 and thereafter, providing long-term cash flow stability Lease Expirations by Year (% of Leased Space) | Year | % of Leased Space Expiring | | :--- | :--- | | 2025 | 3.4% | | 2026 | 6.4% | | 2027 | 9.3% | | 2028 | 9.7% | | 2029 | 9.7% | | 2034 & Thereafter | 25.9% | [Top 20 Office Tenants](index=12&type=section&id=Top%2020%20Office%20Tenants) The tenant base is anchored by high-quality, investment-grade companies. The top 20 tenants occupy 40.1% of the company's annualized rent. The top three tenants are Amazon, Alphabet, and NCR Voyix, collectively accounting for 20.3% of annualized rent, demonstrating a concentration in the technology sector Top 5 Tenants by Annualized Rent | Tenant | % of Annualized Rent | | :--- | :--- | | 1. Amazon | 9.1% | | 2. Alphabet | 6.3% | | 3. NCR Voyix | 4.9% | | 4. ExxonMobil | 2.5% | | 5. IBM | 2.2% | - The top 20 tenants account for **40.1%** of the company's total annualized rent[87](index=87&type=chunk) [Investment & Development](index=14&type=section&id=Investment%20Activity) The company actively manages its portfolio through strategic investments, developments, and dispositions, maintaining a pipeline of future growth opportunities including the Neuhoff mixed-use project and land inventory [Completed Investments and Dispositions](index=14&type=section&id=Completed%20Investments%20and%20Dispositions) This section details historical investment activity from 2020 to 2024. Notable recent developments include the completion of Domain 9 in Austin in Q1 2025. The tables show a consistent strategy of acquiring and developing properties in core markets while disposing of non-core assets - Completed the **Domain 9** office development in Austin (**338,000 sq. ft.**) in Q1 2025 at a total project cost of **$147.0 million**[90](index=90&type=chunk) - Historically, the company has actively recycled capital, with significant dispositions in 2021 and 2022, and acquisitions and developments focused in markets like Austin, Atlanta, and Charlotte[88](index=88&type=chunk)[93](index=93&type=chunk) [Development Pipeline](index=15&type=section&id=Development%20Pipeline) As of June 30, 2025, the active development pipeline consists of the Neuhoff mixed-use project in Nashville. The company holds a 50% ownership interest. The project, with an estimated cost of $589.1 million, includes office, retail, and apartment components, with stabilization expected between Q4 2025 and Q3 2026 Neuhoff (Nashville) Development Project | Metric | Value | | :--- | :--- | | Company's Ownership | 50% | | Total Estimated Project Cost | $589.1M | | Company's Share of Cost | $294.6M | | Office/Retail Component | 450,000 sq. ft. (51% leased) | | Apartment Component | 542 units (78% leased) | [Land Inventory](index=15&type=section&id=Land%20Inventory) The company holds a total of 37.0 acres of developable land across its key markets, providing a pipeline for future growth. The total cost basis of this land is $162.8 million, with the company's share being $156.0 million. The largest parcel is 14.1 acres at Corporate Center in Tampa - Total developable land inventory is **37.0 acres**[97](index=97&type=chunk) - The company's share of the cost basis for this land is **$156.0 million**[97](index=97&type=chunk) [Debt and Capital Structure](index=16&type=section&id=Debt%20Schedule) The company maintains a well-structured debt profile with $3.68 billion in total debt, predominantly fixed-rate, and a laddered maturity schedule [Debt Overview and Maturities](index=16&type=section&id=Debt%20Overview%20and%20Maturities) As of Q2 2025, total debt (company's share) stood at $3.68 billion with a weighted average maturity of 4.1 years. The capital structure is predominantly fixed-rate, with 89% of debt fixed. The debt maturity schedule is well-laddered, with 7% maturing in 2025 and 17% in 2026 Debt Composition as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt (Company Share) | $3.68B | | Fixed Rate Debt | 89% | | Floating Rate Debt | 11% | | Weighted Average Interest Rate | 5.04% | | Weighted Average Maturity | 4.1 Years | - Subsequent to quarter end, on July 7, 2025, the company repaid a **$250 million** privately placed senior note[99](index=99&type=chunk)[109](index=109&type=chunk) [Joint Venture Information](index=17&type=section&id=Joint%20Venture%20Information) The company utilizes joint ventures for certain assets. Key JVs include a 90% consolidated interest in HICO 100 Mill LLC (100 Mill property) and a 50% unconsolidated interest in Neuhoff Holdings LLC (Neuhoff development). The agreements outline specific cash flow distributions and buy/sell options for each partnership Key Joint Ventures | Joint Venture | Property | Company's Interest | Presentation | | :--- | :--- | :--- | :--- | | HICO 100 Mill LLC | 100 Mill | 90% | Consolidated | | TR Domain Point LLC | Domain Point | 96.5% | Consolidated | | Neuhoff Holdings LLC | Neuhoff | 50% | Unconsolidated | | Crawford Long-CPI, LLC | Medical Offices at Emory | 50% | Unconsolidated | [Non-GAAP Financial Measures](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Calculations%20and%20Reconciliations) This section provides essential reconciliations and definitions for non-GAAP financial measures like FFO, NOI, and FAD, crucial for understanding the company's operational performance and dividend capacity [Reconciliations](index=18&type=section&id=Reconciliations) This section provides detailed reconciliations of GAAP measures to the non-GAAP metrics used throughout the report. It includes calculations for FFO, EBITDAre, Net Operating Income (NOI), Funds Available for Distribution (FAD), and various credit ratios. A key table reconciles the full-year 2025 Net Income guidance to the corresponding FFO guidance Reconciliation of 2025 FFO Guidance (per share) | Metric | Low | High | | :--- | :--- | :--- | | Net Income Per Share | $0.28 | $0.34 | | Add: Real Estate Depreciation & Amortization | $2.51 | $2.51 | | **Funds From Operations (FFO) Per Share** | **$2.79** | **$2.85** | [Definitions](index=22&type=section&id=Definitions) This section defines the non-GAAP financial measures used by the company. Key defined terms include Funds From Operations (FFO), which is a standard REIT performance metric excluding real estate depreciation; Net Operating Income (NOI), which measures property-level performance; and Funds Available for Distribution (FAD), which adjusts FFO for non-cash items and capital expenditures to better reflect dividend capacity - **FFO (Funds From Operations):** Net income excluding real estate depreciation and gains/losses from property sales, used as a supplemental measure of a REIT's operating performance[134](index=134&type=chunk) - **NOI (Net Operating Income):** Rental property revenues less rental property operating expenses, used to measure the operating performance of properties[136](index=136&type=chunk) - **FAD (Funds Available for Distribution):** FFO adjusted for non-cash items and second-generation capital expenditures, indicating dividend-paying ability[133](index=133&type=chunk) ```

Acquisition Details - Cousins Properties has acquired The Link, a 292,000 square foot lifestyle office property in Dallas, for $218 million [1] - The property is located in the Uptown submarket of Dallas, built in 2021, and is currently 93.6% leased with a weighted average lease term of over nine years [1] Funding Strategy - The acquisition will be funded through excess proceeds from Cousins' unsecured senior note offering during the second quarter, along with the settlement of common shares previously issued under the Company's ATM program and/or potential future asset dispositions [2] Company Growth and Strategy - The CEO of Cousins Properties expressed excitement about expanding in Dallas, particularly in the Uptown submarket, highlighting the acquisition as a growth opportunity that is immediately accretive to earnings [3] - Over the past nine months, the company has acquired over $1 billion of lifestyle office properties, indicating a strong balance sheet and financial flexibility [3] 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 [4] - Founded in 1958, the company focuses on creating shareholder value through expertise in development, acquisition, leasing, and management of high-quality real estate assets [4]

ATLANTA, July 31, 2025 /PRNewswire/ -- Cousins Properties (NYSE: CUZ) has released its second quarter 2025 results. Please visit the Investor Relations section of Cousins' website at www.cousins.com to access the Earnings Release and Supplemental Information. Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office ...

Core Insights - Cousins Properties (CUZ) shares have increased by 11% over the past three months, outperforming the industry growth of 7.2% [1] - The company's strong office portfolio, impressive tenant base, strategic investments, and robust balance sheet contribute to its growth momentum [1] - There is a growing preference among tenants for premium office spaces with superior amenities, alongside a rising emphasis on return-to-office mandates [1] Company Performance - Analysts have a positive outlook on Cousins Properties, with the Zacks Consensus Estimate for CUZ's 2025 funds from operations (FFO) per share increasing by 1 cent to $2.80 over the past two months [2] - The company has a strong portfolio of Class A office assets located in high-growth Sun Belt markets, which are experiencing population growth and increased corporate relocations [3] - Demand for office space is being driven by tenants returning to offices and announcing plans to resume in-person work [3] Portfolio and Financial Strategy - Cousins Properties has a diversified tenant roster, reducing reliance on any single industry, which helps maintain steady revenues across economic cycles [4] - The company is focused on enhancing portfolio quality through trophy asset acquisitions and strategic developments in high-growth areas, having acquired 2.9 million square feet of properties for $1.54 billion from 2020 to Q1 2025 [5] - Cousins Properties has completed 2.2 million square feet of development at a total cost of $909 million and sold 5.5 million square feet of properties for $1.28 billion, supporting future revenue growth [5] Financial Health - The company maintains a healthy balance sheet, exiting Q1 2025 with cash and cash equivalents of $5.3 million and $38.7 million drawn from its $1 billion credit facility [8] - As of March 31, 2025, Cousins Properties had a net debt-to-annualized EBITDAre ratio of 4.87, indicating considerable liquidity and access to capital markets for long-term growth opportunities [8]

Company Announcement - Cousins Properties will release its second quarter 2025 earnings after the market closes on July 31, 2025 [1] - A conference call to discuss the earnings will be held on August 1, 2025, at 10:00 a.m. Eastern Time [1] - The conference call can be accessed via phone at (800) 836-8184 and will also be available as a live webcast on the company's website [1] Playback and Financial Information - A playback of the conference call will be available from August 1, 2025, to August 8, 2025, accessible at (888) 660-6345 with passcode 77032 [2] - Financial information will be posted on the company's website immediately after the earnings release, available in the "Featured Reports" section [3] Company Overview - Cousins Properties is a self-administered and self-managed real estate investment trust (REIT) based in Atlanta, GA, focusing on Class A office buildings in high-growth Sun Belt markets [4] - The company was founded in 1958 and aims to create shareholder value through expertise in development, acquisition, leasing, and management of high-quality real estate assets [4] - Cousins Properties employs a comprehensive strategy centered on trophy assets and opportunistic investments [4]

Portfolio & Strategy - Cousins Properties focuses on premier Sun Belt lifestyle office assets, with 100% of its portfolio in the Sun Belt and 100% Class A properties built around 2010[3] - The company's asking rents are 16% higher than pre-pandemic levels and 25% higher than Class A averages[3] - Cousins has recycled over $1 billion of older assets during the COVID pandemic[3,44] - The company sourced over $500 million of new investment opportunities in 2024[3] Growth & Development - Cousins has an attractive development pipeline of 1.2 million square feet and a land bank supporting 5.1 million square feet of additional development[3] - Since 2019, Cousins has experienced NOI growth of 18%[3] Financial Strength - The company maintains a strong balance sheet with $1 billion in liquidity[3,57] - Cousins' leverage is at 5.1x Net Debt/EBITDA, among the lowest in the office sector[3] - The company has increased its dividend by 10% since COVID while maintaining a conservative payout ratio[3] Market Trends - The company benefits from the "flight to quality" trend, with 64% of its portfolio developed or redeveloped since 2010[3,30]

Core Insights - Cousins Properties (CUZ) shares have increased by 35.9% over the past year, significantly outperforming the industry's growth of 8.5% [1][9] - The company is experiencing heightened leasing activity in its Class A office assets located in high-growth Sun Belt markets, driven by tenants' preference for premium office spaces [1][3] Market Dynamics - The demand for office space in the Sun Belt markets is rising due to favorable migration trends and a pro-business environment, leading to increased corporate relocations and expansions [3] - The first quarter of 2025 saw Cousins Properties execute 47 leases totaling 539,063 square feet, with a weighted average lease term of 6.3 years, indicating a recovery in leasing volume [3][9] Financial Performance - In Q1 2025, the second-generation net rent per square foot on a cash basis for Cousins increased by 3.2%, reflecting the ability to command premium rents [4] - The company has a well-diversified tenant roster, reducing dependence on a single industry and ensuring steady revenues across different economic cycles [4] Strategic Initiatives - Cousins Properties is focused on upgrading its portfolio quality through acquisitions of trophy assets and opportunistic developments in high-growth Sun Belt submarkets [5] - From 2020 to Q1 2025, the company acquired 2.9 million square feet of operating properties for $1.54 billion and completed 2.2 million square feet of development at a total cost of $909 million [5] Financial Health - As of Q1 2025, Cousins Properties had cash and cash equivalents of $5.3 million and $38.7 million drawn from its $1 billion credit facility, indicating a healthy balance sheet [6] - The net debt-to-annualized EBITDAre ratio stood at 4.87, suggesting considerable liquidity and access to capital markets for long-term growth opportunities [6]

Core Viewpoint - Cousins Properties (CUZ) is well-positioned for growth due to its Class A office assets concentrated in high-growth Sun Belt markets, strong leasing activity, and a solid balance sheet, with analysts maintaining a positive outlook on the company [1][4][6]. Group 1: Portfolio and Market Position - The company has a strong portfolio of Class A office assets in the Sun Belt region, which is experiencing a population influx and favorable migration trends, driving demand for office space [4][6]. - Cousins Properties benefits from a diversified tenant base, reducing dependence on a single industry and ensuring steady revenues across economic cycles [5][6]. - The company is witnessing healthy leasing demand, with a rebound in new leasing volume indicating strong market fundamentals [5][6]. Group 2: Capital Recycling and Growth Strategy - Cousins Properties is actively engaged in capital-recycling efforts, enhancing portfolio quality through trophy asset acquisitions and opportunistic developments, which are expected to contribute to long-term growth [7][8]. - The company has successfully disposed of slow-growth assets, allowing for reinvestment in highly amenitized properties in the Sun Belt submarkets [8]. Group 3: Financial Strength - The company maintains a robust balance sheet with ample liquidity, allowing it to capitalize on improving market fundamentals, and has a well-structured debt maturity schedule [9]. - As of March 31, 2025, Cousins Properties had cash and cash equivalents of $5.3 million and significant borrowing capacity, providing flexibility for growth opportunities [9].