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- **Record Q3 Leasing**: 551K sq. ft. leased at 9.4-year terms, 4.2% cash rent roll-up, and 90%+ occupancy in key Sunbelt markets.
- **Guidance Raised**: 2025 FFO midpoint increased to $2.84 (56% growth), driven by $218M Link acquisition and 715K sq. ft. pipeline.
- **Balance Sheet Strength**: 5.38x leverage ratio, $500M bond issuance, and ATM program flexibility for accretive investments.
- **Sunbelt Growth**: Dallas, Atlanta, Austin, and Nashville markets showing 16%-20% QoQ leasing growth, outpacing gateway cities.
- **AI Resilience**: 75% of tenants are front-office roles, with Amazon, Oracle, and Goldman Sachs expanding in Sunbelt hubs.

**【CEO Summary Section】**
- Delivered $0.69 FFO per share, raising the midpoint of 2025 guidance to $2.84, representing 56% growth over 2024.
- Completed 551,000 sq. ft. of leases, achieving a 4.2% cash rent roll-up and 90%+ occupancy in key markets.
- Acquired the Link in Dallas for $218M, expanding presence in a fast-growing Sunbelt market.
- Highlighted accelerating office demand driven by corporate relocations and return-to-office trends, countering AI and layoff concerns.

**【CFO Financial Commentary】**
- Third-quarter GAAP NOI grew 0.3% YoY, with cash NOI up 9.0%, despite Bank of America lease expiration.
- Raised 2025 FFO guidance to $2.82-$2.86, driven by higher parking income, termination fees, and lower SOFR rates.
- Maintained industry-leading balance sheet with 5.38x net debt/EBITDA, allowing flexibility for accretive investments.

**【Q&A Highlights】**
- **Leverage Strategy**: CFO Gregg Adzema noted willingness to increase leverage to 6x, up from current 5.38x, for strategic acquisitions.
- **Parking Income Growth**: 75% of parking revenue is contractual, with utilization rates near 75%, supporting 8%+ of total revenue.
- **Occupancy Outlook**: Target 90%+ occupancy by end-2026, driven by 715,000 sq. ft. late-stage pipeline (77% new leases).
- **Market Resilience**: CEO Colin Connolly emphasized Sunbelt's appeal for front-office roles, countering AI displacement fears.
- **Dallas Expansion**: Acquired the Link for $218M, with plans to multi-tenant the 319K sq. ft. Ovintiv building post-2026 expiration.


Cousins Properties Incorporated (CUZ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CUZ

CUZ fundamentals

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