Strong Second Quarter Results
Cousins Properties reported a strong second quarter with $0.70 per share in FFO, which was $0.01 above consensus. Same-property net operating income increased 1.2% on a cash basis and 1.6% year-to-date. Leasing remained robust with 334,000 square feet of leases completed, 80% of which were new or expansion leases. Cash rents on second-generation space increased by 10.9% in the quarter.
Acquisition of The Link
Cousins acquired The Link in Uptown Dallas for $218 million, representing a discount to replacement cost and immediately accretive to earnings. The property is 94% leased with a weighted average lease term of 9.3 years, and in-place rents are nearly $20 per square foot below current market rates.
Increased Guidance
The company raised the midpoint of its full-year 2025 FFO guidance to $2.82 per share, representing a 4.8% growth rate over last year.
Leasing Pipeline and Market Strength
The leasing pipeline remains very healthy, with the late-stage pipeline at its highest level since tracking began. Markets like Austin, Atlanta, and Charlotte show strong demand, with new-to-market activity accelerating.