Cousins Properties (CUZ) Q4 2024 earnings summary

Executive summary

• Q4 FFO was $0.69 per share, above guidance midpoint, with strong leasing and NOI growth; net income for Q4 was $13.6M ($0.09/share), down from $18.8M ($0.12/share) due to higher depreciation.

• Nearly $1B invested in trophy lifestyle office properties in Sun Belt markets, funded on a leverage-neutral basis.

• Raised $469M in equity and $400M in unsecured debt to fund growth.

• 2025 FFO guidance midpoint of $2.78 per share, up 3.5% year-over-year and above consensus.

• Maintained a strong balance sheet and significant liquidity for future investments.

Financial highlights

• Q4 2024 FFO was $108.9M ($0.69/share), up from $98.3M ($0.65/share) in Q4 2023; full year FFO was $414.1M ($2.69/share), up from $398.3M ($2.62/share) in 2023.

• Q4 rental property revenues were $225.3M, up from $196.6M in Q4 2023; full year revenues were $856.8M, up from $799.0M in 2023.

• Same property cash NOI increased 3.4% year-over-year in Q4; full year same property NOI up 4.8%.

• Second-generation cash leasing spreads positive for 43 consecutive quarters; Q4 cash rent roll-up of 6.7%.

• Q4 average net rent was $35.81; full-year $39.77.

Outlook and guidance

• 2025 FFO guidance range: $2.73–$2.83 per share; midpoint $2.78, up $0.09 from 2024.

• 2025 net income guidance: $0.25–$0.35 per share.

• Guidance includes SVB Financial claim disposition ($4.6M) and refinancing of $250M senior note.

• No speculative acquisitions, dispositions, or development starts included in guidance.

• Interest rates and refinancing costs are key variables for guidance range.