Cousins Properties(US:CUZ)2025-05-01 20:24Financial 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].