Cousins Properties Q2 Earnings Call Highlights

Cousins Properties (NYSE: CUZ) announced its second-quarter earnings, reporting funds from operations (FFO) of $0.75 per share and raising its full-year 2026 FFO outlook midpoint by $0.01 to $2.95 per share, indicating projected growth of 3.9% from 2025. This revised outlook marks the third consecutive year of expected FFO growth, attributed to strong leasing activity and property transactions. The company completed 924,000 square feet of leases in the quarter, bringing first-half leasing to 1.9 million square feet, significantly above the past decade's average annual volume. Occupancy increased 50 basis points to 89.4%, with a target of 90% by year-end. Second-generation cash rents rose 9.2%, extending a streak of positive rent roll-ups to 49 consecutive quarters. Cousins Properties also reported an 8.5% increase in average net effective rent in the second quarter compared to the full-year 2025 level. The company believes market conditions are improving, potentially favoring landlords in its targeted submarkets. Leasing activity was strong across various markets, with Atlanta being the largest contributor. Cousins Properties also completed asset recycling, selling two Austin properties for $250 million, acquiring full ownership of a Tempe office building, and advancing development projects in Nashville and Austin, while extending its credit facility to $1.2 billion.