Cousins Properties(US:CUZ)2023-10-25 16:00Financial Performance - For the three months ended September 30, 2023, net income available to common stockholders was $19.4 million, down from $80.6 million in the same period of 2022, representing a decrease of 76.1%[117] - For the nine months ended September 30, 2023, net income available to common stockholders was $64.2 million, compared to $142.7 million for the same period in 2022, a decrease of 55.1%[117] - Funds From Operations (FFO) for the three months ended September 30, 2023, was $98,972,000, a decrease from $104,410,000 in the same period of 2022[134] - FFO per share for the three months ended September 30, 2023, was $0.65, compared to $0.69 for the same period in 2022[134] - Net income available to common stockholders for the three months ended September 30, 2023, was $19,361,000, down from $80,639,000 in 2022[134] Revenue and Income Sources - Total rental property revenues for the three months ended September 30, 2023, were $198.4 million, a 2.6% increase from $193.5 million in the same period of 2022[120] - Non-same property rental property revenues increased by 41.6% for the three months ended September 30, 2023, compared to the same period in 2022[120] - Same property net operating income (NOI) increased by 4.1% for the three months ended September 30, 2023, and by 5.3% for the nine months ended September 30, 2023, compared to the same periods in 2022[114][115] - Same property rental property revenues increased primarily due to an increase in economic occupancy at key office properties[120] - Income from unconsolidated joint ventures decreased by $52,000 (8.2%) to $582,000 for the three months ended September 30, 2023, and by $5,030,000 (71.5%) to $2,008,000 for the nine months ended September 30, 2023[129] - Net operating income from unconsolidated joint ventures fell by $1,255,000 (44.5%) to $1,564,000 for the three months ended September 30, 2023, and by $3,548,000 (43.9%) to $4,532,000 for the nine months ended September 30, 2023[129] Expenses and Costs - Interest expense increased by $8.6 million, or 46.9%, for the three months ended September 30, 2023, compared to the same period in 2022[125] - Fee income decreased by $1.4 million, or 81.0%, for the three months ended September 30, 2023, compared to the same period in 2022[124] - Tenant improvement and leasing costs for new leases increased to $12.64 per square foot in Q3 2023, compared to $12.33 in Q3 2022[150] - Capital expenditures decreased by $64.6 million to $198.3 million for the nine months ended September 30, 2023, compared to $262.8 million in 2022[149] Cash Flow and Liquidity - Net cash provided by operating activities increased by $5.2 million to $277.5 million for the nine months ended September 30, 2023, compared to $272.3 million in 2022[145] - Net cash used in investing activities decreased by $36.3 million to $212.1 million for the nine months ended September 30, 2023, compared to $248.4 million in 2022[146] - Cash flows used in financing activities increased by $36.3 million to $63.6 million for the nine months ended September 30, 2023, compared to $27.3 million in 2022[147] - The company expects to meet its liquidity needs through retained cash from operations and third-party capital sources[141] - The company expects to fund future quarterly common dividends with cash from operating activities and proceeds from investment property sales[152] Debt and Financing - The company had $161.7 million in unfunded tenant improvements and construction costs as of September 30, 2023[138] - The company had $144.5 million drawn under its credit facility with the ability to borrow an additional $855.5 million as of September 30, 2023[138] - The company had aggregate outstanding indebtedness to third parties of $282.9 million as of September 30, 2023, primarily from mortgage or construction loans[155] - 86% of the company's consolidated debt bears interest at a fixed rate, while 14% is based on SOFR[139] - The company monitors its common dividend payments in light of covenants under credit agreements, ensuring leverage remains below 60%[153] Operational Highlights - The company leased or renewed 548,000 square feet of office space during the quarter, with a straight-line basis net rent per square foot increase of 28.7% for those spaces leased within the past year[114] - The company expects a gradual increase in physical occupancy, which has already driven an increase in parking revenue and certain operating expenses[116] - Operating cash flows were positively impacted by increased physical occupancy at Domain and Buckhead Plaza properties[145] - Common dividends paid increased to $145.9 million for the nine months ended September 30, 2023, from $143.8 million in 2022[152]