Cousins Properties(US:CUZ) ZACKS·2025-05-02 14:45Core Viewpoint - Cousins Properties (CUZ) reported strong first-quarter 2025 results, with funds from operations (FFO) per share of 74 cents, exceeding estimates and reflecting robust leasing activity and occupancy growth [1][2][3] Financial Performance - Rental property revenues increased by 16.4% year over year to $243 million, surpassing the Zacks Consensus Estimate of $242.2 million [2] - Total revenues grew by 19.6% year over year to $250.3 million [2] - Same-property rental property revenues on a cash basis rose 1.1% year over year to $192.1 million, while operating expenses fell by 0.3% to $69.8 million, resulting in a 2% increase in same-property net operating income to $122.3 million [4] - The weighted average occupancy of the same-property portfolio improved to 89.4%, up 150 basis points from the previous year [4] Leasing Activity - CUZ executed leases for 539,063 square feet of office space in the first quarter, including 204,620 square feet of new and expansion leases, which accounted for 38% of total leasing activity [3] - The same-property portfolio was 91.7% leased at the end of the quarter, an increase from 90.4% a year ago [5] Development and Costs - CUZ completed the development of Domain 9, an office property of 338,000 square feet in Austin, with a total project cost of $147 million [5] - Interest expenses increased by 27.2% year over year to $36.8 million [5] Balance Sheet - At the end of the first quarter, CUZ had cash and cash equivalents of $5.3 million, down from $7.3 million at the end of 2024 [6] - The net debt-to-annualized EBITDAre ratio improved to 4.87 from 5.16 in the prior quarter, while fixed charges coverage increased to 4.05X from 3.92X [6] 2025 Outlook - CUZ revised its 2025 FFO per share guidance to a range of $2.75 to $2.83, up from the previous range of $2.73 to $2.83, with the Zacks Consensus Estimate currently at $2.79 [7] Market Position - CUZ holds a Zacks Rank 2 (Buy), indicating a favorable market position [8]