On July 25, 2024, Cousins Properties Inc (CUZ, Financial) released its 8-K filing for the second quarter of 2024. Cousins Properties Inc is a real estate investment trust principally involved in the ownership, management, and development of properties in the Southern United States. The company's portfolio mainly comprises office and mixed-use developments, with significant assets located in Texas and Georgia.
Performance Overview
Cousins Properties Inc (CUZ, Financial) reported a net income available to common stockholders of $7.8 million, or $0.05 per share, for Q2 2024, compared to $22.6 million, or $0.15 per share, for the same period in 2023. This decrease is primarily attributed to increased depreciation expense. The reported earnings per share (EPS) fell short of the analyst estimate of $0.10.
However, the company reported revenues of $209.37 million, aligning with the analyst estimate. Funds From Operations (FFO) were $103.3 million, or $0.68 per share, consistent with the $103.0 million, or $0.68 per share, reported in Q2 2023.
Key Financial Achievements
Despite the decline in net income, Cousins Properties Inc (CUZ, Financial) achieved several notable financial milestones:
- Same property net operating income (NOI) on a cash-basis increased by 5.1%.
- Second generation net rent per square foot on a cash-basis increased by 18.2%.
- Executed 391,000 square feet of office leases, including 240,000 square feet of new and expansion leases, representing 61% of total leasing activity.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income Available to Common Stockholders | $7.8 million | $22.6 million |
| Earnings Per Share (EPS) | $0.05 | $0.15 |
| Funds From Operations (FFO) | $103.3 million | $103.0 million |
Balance Sheet and Cash Flow
The company maintained a strong balance sheet with corporate investment grade credit ratings of BBB and Baa2 from S&P and Moody's, respectively. Additionally, Cousins Properties Inc (CUZ, Financial) acquired two mezzanine loans for $27.2 million, with a weighted average spread over SOFR of 8.66%.
Operational and Leasing Activity
For the six months ended June 30, 2024, Cousins Properties Inc (CUZ, Financial) reported:
- Same property NOI on a cash-basis increased by 5.8%.
- Second generation net rent per square foot on a cash-basis increased by 11.7%.
- Executed 794,000 square feet of office leases, including 526,000 square feet of new and expansion leases, representing 66% of total leasing activity.
Guidance and Future Outlook
Cousins Properties Inc (CUZ, Financial) updated its full-year 2024 earnings guidance as follows:
- Net income between $0.31 and $0.36 per share, updated from previous guidance of $0.32 and $0.39 per share.
- FFO between $2.63 and $2.68 per share, updated from previous guidance of $2.60 and $2.67 per share.
The increase in FFO is primarily driven by improved leasing activity, higher parking income, and the recent acquisition of two mezzanine loans.
Conclusion
Cousins Properties Inc (CUZ, Financial) demonstrated resilience in Q2 2024 despite challenges, maintaining stable FFO and achieving significant leasing activity. The company's strategic investments and strong balance sheet position it well for future growth. Investors and analysts will closely monitor the company's performance in the coming quarters, particularly in its key markets of Texas and Georgia.
Explore the complete 8-K earnings release (here) from Cousins Properties Inc for further details.
