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 strong leasing and NOI growth year-over-year.

• Net income available to common stockholders was $20.9 million ($0.12/share), up from $13.3 million ($0.09/share) in Q1 2024.

• Leased 539,000 sq ft in Q1 2025, the highest Q1 since 2019, with net rent per sq ft up 18.3% for recently leased spaces.

• Portfolio occupancy rose to 90%, with robust leasing activity and market share gains in Sun Belt cities.

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

Financial highlights

• Same property NOI increased 2% on a cash basis and 4% on a GAAP basis year-over-year.

• Rental property revenues rose to $243.0 million from $208.8 million year-over-year.

• Net debt to EBITDA stands at 4.9x; net debt/annualized EBITDAre at 4.87x; strong liquidity with $38.7 million drawn on a $1 billion credit facility.

• Sold 2.1 million shares under ATM program at $30.43/share to fund future investments.

• Dividend paid: $0.32 per share in Q1 2025; FFO payout ratio at 43%.

Outlook and guidance

• Full-year 2025 FFO guidance raised to $2.75–$2.83 per share, midpoint $2.79, reflecting higher parking income and lower real estate taxes.

• 2025 net income guidance updated to $0.26–$0.34 per share.

• Guidance assumes refinancing of $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 for accretive capital deployment as opportunities arise.