Cousins Properties(US:CUZ)2025-10-30 20:31Financial 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].