Q3 2024 Cousins Properties Inc Earnings Call Transcript
Key Points
- Cousins Properties Inc (CUZ) reported a strong third quarter with $0.67 per share in FFO and a 4.4% increase in same-property net operating income on a cash basis.
- The company achieved its highest quarterly leasing volume since 2019, leasing 763,000 square feet with a 7.2% cash rent roll-up.
- Cousins Properties Inc (CUZ) successfully completed its inaugural unsecured bond issuance, highlighting its strong access to capital.
- The company closed on strategic investments, including a joint venture acquisition in Midtown Atlanta and a whole loan purchase in Uptown Dallas, aligning with its Sun Belt lifestyle office strategy.
- Cousins Properties Inc (CUZ) maintains a best-in-class balance sheet with industry-leading leverage and liquidity, positioning it well for future growth opportunities.
- The upcoming expiration of Bank of America's lease in Charlotte is expected to temporarily impact occupancy levels.
- The private capital markets remain challenging for office assets, with limited and expensive asset-level debt and equity.
- Occupancy is projected to experience a downdraft in 2025 due to anticipated move-outs, including One Trust in Atlanta and Bank of America in Charlotte.
- The company faces potential risks with its recent loan acquisitions, including the uncertainty of being paid off at maturity.
- Cousins Properties Inc (CUZ) is navigating a bifurcated office market, with little demand for older, commodity properties, which may require significant repositioning or demolition.
Good morning, ladies and gentlemen, and welcome to the Cousins Properties third quarter conference call. (Operator Instructions) This call is being recorded on Friday, October 25, 2024.
I would now like to turn the conference over to Pamela Roper, General Counsel. Please go ahead.
Thank you. Good morning and welcome to Cousins Properties third-quarter earnings conference call. With me today are Colin Connolly, our President and Chief Executive Officer; Richard Hickson, our Executive Vice President of Operation; Kennedy Hicks, our Executive Vice President and Chief Investment Officer; and Gregg Adzema, our Chief Financial Officer.
The press release and supplemental package were distributed yesterday afternoon as well as furnished on Form 8-K. In the supplemental package, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements. If you did not receive a copy,
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