Strong First Quarter Performance
Cousins Properties delivered $0.74 per share in FFO and increased same-property net operating income by 2% on a cash basis. The company completed 539,000 square feet of leases with a 3.2% cash rent roll-up, marking the 44th consecutive quarter of positive rent roll-up. The company increased the midpoint of its guidance to $2.79 a share, representing a 3.7% growth rate over the previous year.
Leasing Success in Key Markets
The company's portfolio was 90% occupied at the end of the first quarter, up from 88.4% a year ago. Significant leasing activity was seen in Atlanta (213,000 sq ft), Austin (176,000 sq ft), and Tampa (84,000 sq ft), with positive rent roll-ups and strategic renewals.
Improved Market Fundamentals
The company observed improving fundamentals with the decline of older office supply and increasing demand. Leasing volume is now at 89% of pre-pandemic activity, and vacancy rates in the lifestyle office sector are believed to have peaked.
Robust Balance Sheet and Strategic Flexibility
Cousins Properties maintains a low leverage ratio with net debt to EBITDA at 4.9 times and strong liquidity. The company retains strategic flexibility to capitalize on accretive investment opportunities due to its solid financial position.