The following is a summary of the Cousins Properties Incorporated (CUZ) Q4 2023 Earnings Call Transcript:
Financial Performance:
Cousins Properties reported Q4 FFO per share of $0.65, with same-property net operating income increasing by 3.5%.
During Q4, the company leased 453,000 square feet, and throughout the year, 1.7 million square feet, with a 5.8% cash rent rollout.
2024 guidance anticipates a flat year-over-year FFO.
The weighted average in-place gross rent at the year-end 2023 was $46.95 per square foot, a 25% increase over 2019.
Full-year FFO was reported at $2.62 per share, exceeding the original 2023 guidance midpoint of $2.58 per share. Full year same property NOI was a solid 4.2% on a cash basis.
Net debt-to-EBITDA ratio was reported to be 5.1x with a $185 million outstanding on a $1 billion credit facility.
Business Progress:
Cousins Properties identifies as a Sun Belt lifestyle office REIT, aiming at driving occupancy over 90%.
There is a focus on market-leading lifestyle office and mixed-use projects integral to its growth strategy, with potential significant contributions from current development and redevelopment projects.
Despite COVID-19 disruptions, net operating income was 23% higher in 2023 compared to 2019, showcasing the resilience of their strategy.
Cousins Properties is in active lease negotiations with WeWork for its locations at Terminus and 120 West Trinity. The premises leased by WeWork represent 1.1% of Cousins Properties annualized rent.
A new development project in Nashville reached 88% office lease completion and 22% overall lease completion.
It expects to maintain its occupancy level through the end of the 2024.
Sublease availability in Atlanta and Austin showed stability in Q4 2023, indicating a positive momentum in leasing activity.
Development pipeline includes 50% interest in Neuhoff in Nashville and 100% of Domain 9 in Austin with estimated development costs for these projects are $70 million.
Bank of America lease expiry's impact for '25 and '26 periods will be offset by the stabilization of several developments notwithstanding absence of impact on '24 guidance.
More details: Cousins Properties Inc IR
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