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FFO (Funds From Operations): $0.70 per share, $0.01 above consensus.
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Same-Property Net Operating Income: Increased 1.2% on a cash basis and 1.6% year-to-date.
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Leasing Activity: 334,000 square feet of leases completed, 80% were new or expansion leases.
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Cash Rents on Second-Generation Space: Increased 10.9% in the quarter and 5.4% year-to-date.
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Guidance Increase: Midpoint of guidance raised to $2.82 per share, representing a 4.8% growth rate over last year.
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Occupancy Rates: Total office portfolio end of period leased at 91.6%, weighted average occupancy at 89.1%.
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Acquisition: Purchased The Link in Uptown Dallas for $218 million, 94% leased with a 9.3-year weighted average remaining lease term.
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Net Debt to EBITDA: 5.1x, maintaining an industry-leading position.
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2025 FFO Guidance: Anticipated between $2.79 and $2.85 per share, midpoint of $2.82 per share.
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Bond Offering: Issued $500 million of notes at an initial yield of 5.25%.
Release Date: August 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Cousins Properties Inc (NYSE:CUZ) reported a strong second quarter with $0.70 per share in FFO, surpassing consensus by $0.01.
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Same-property net operating income increased by 1.2% on a cash basis and 1.6% year-to-date.
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Leasing activity was robust, with 334,000 square feet of leases completed, 80% of which were new or expansion leases.
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The company acquired The Link, a trophy lifestyle office property in Uptown Dallas, which is expected to be immediately accretive to earnings.
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Cousins Properties Inc (NYSE:CUZ) increased the midpoint of its guidance to $2.82 per share, representing a 4.8% growth rate over the previous year.
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Occupancy rates declined due to the known move-out of OneTrust at North Park in Atlanta and the expiration of Bank of America’s lease in Charlotte.
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The office market remains uncertain with ongoing concerns about tariffs and interest rates.
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Phoenix was the only market that did not post rent roll-ups, facing tough comparisons.
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The Neuhoff project in Nashville experienced a lull in office leasing activity earlier in the year.
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Despite strong leasing activity, the overall volume was down sequentially compared to the previous quarter.
Q: Can you provide more context around the acquisition of The Link in Uptown Dallas, including the growth potential and replacement cost considerations? A: Michael Connolly, President and CEO, explained that The Link is a strategic acquisition in a rapidly growing submarket. The property has rents significantly below market, a strong rent roll, and minimal CapEx needs. The acquisition was made below replacement cost, aligning with Cousins Properties’ strategy to upgrade portfolio quality in an accretive manner.
