Cousins Properties Q4 FFO Meets Estimates, Revenues Beat

Core Insights - Cousins Properties (CUZ) reported fourth-quarter 2025 funds from operations (FFO) per share of 71 cents, marking a 2.9% year-over-year increase and aligning with the Zacks Consensus Estimate [1][10] - The company experienced strong leasing activity, although weighted average occupancy decreased, and interest expenses rose significantly [1][6][10] Financial Performance - Rental property revenues increased by 15% year over year to $253.3 million, exceeding the Zacks Consensus Estimate of $248.7 million, while total revenues grew 11.6% year over year to $255 million [2][10] - For the full year 2025, FFO per share was $2.84, up from $2.69 in the previous year, consistent with the Zacks Consensus Estimate [2] - Same-property rental property revenues on a cash basis rose 1.4% year over year to $198.7 million, while operating expenses increased by 3.8% to $73.1 million, leading to a marginal improvement in same-property net operating income [5] Leasing and Occupancy - In Q4, Cousins Properties executed leases for 700,000 square feet of office space, including 493,000 square feet of new and expansion leases [4] - The weighted average occupancy for the same-property portfolio was 87.4%, down 1.4% from the prior year, with the overall portfolio leased at 90.1%, a decrease from 91% year-over-year [5][6] Acquisitions and Sales - The company announced the acquisition of 300 South Tryon for $317.5 million, a fully leased lifestyle office property in Charlotte, NC, with a weighted average lease term of six years [3] - CUZ entered into agreements to sell Harborview Plaza in Tampa, FL, for $39.5 million and a land parcel in Charlotte, NC, for $23.7 million, with expected closing in 2026 [7] Balance Sheet and Outlook - At the end of Q4 2025, CUZ had cash and cash equivalents of $5.7 million, an increase from $4.7 million as of September 30, 2025 [8] - The net debt-to-annualized EBITDAre ratio was 5.30, down from 5.38 in the previous quarter, while fixed charges coverage improved to 3.52X [8] - For 2026, CUZ expects FFO per share to be in the range of $2.87-$2.97, with the Zacks Consensus Estimate currently at $2.92 [9]