Cousins Properties (CUZ) Q1 2025 earnings summary

Executive summary

• Delivered $0.74 per share in FFO for Q1 2025, up from $0.65 in Q1 2024, with net income at $20.9 million ($0.12/share), and same property NOI up 2% on a cash basis year-over-year.

• Leased over 539,000 sq ft of office space, the highest Q1 leasing since 2019, with a 3.2% cash rent roll-up and net rent per sq ft up 18.3% for recently leased spaces.

• Portfolio occupancy rose to 90% from 88.4% year-over-year, with strong demand and market share gains in Sun Belt cities.

• Increased 2025 FFO guidance midpoint to $2.79 per share, a 3.7% increase over 2024.

• Focus remains on premier urban office portfolio in Sun Belt markets, with disciplined capital allocation and low leverage.

Financial highlights

• Q1 FFO exceeded run rate due to a $4.6M SVB bankruptcy claim sale, $2.9M in termination fees, and $858K in extra interest from a loan payoff.

• Rental property revenues increased to $243.0 million from $208.8 million year-over-year; NOI grew to $163.0 million from $137.3 million, an 18.7% increase.

• Net debt to EBITDA at 4.9x, with only $39M drawn on a $1B credit facility and $961.3M undrawn.

• GAAP NOI grew 4% and cash NOI grew 2% year-over-year; excluding a one-time rent abatement, cash NOI would have increased 4%.

• EPS (diluted) was $0.12, up from $0.09 year-over-year.

Outlook and guidance

• 2025 FFO guidance raised to $2.75–$2.83 per share, midpoint $2.79, up 3.7% from 2024.

• Guidance assumes refinancing of a $250M senior note and no SOFR cuts in 2025; excludes speculative acquisitions or development starts.

• Sufficient liquidity projected to meet obligations, with $961.3 million undrawn on the credit facility and $5.3 million in cash.

• Anticipates potential capital deployment into accretive opportunities not included in guidance.

• Management expects continued outperformance in Sun Belt markets and benefits from the flight to quality in office space.