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Cousins Properties experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Rental property revenues rose 18.9% year over year to $246.5 million, surpassing the Zacks Consensus Estimate of $243.1 million. Total revenues grew 18.7% year over year to $248.3 million.
CUZ’s Q3 in Detail
Cousins Properties executed leases for 551,398 square feet of office space in the third quarter, including 208,783 square feet of new and expansion leases.
Same-property rental property revenues on a cash basis grew 3.7% year over year to $195.4 million. Same-property rental property operating expenses on a cash basis increased 10.3% to $71.3 million in the third quarter of 2025. As a result, the same-property net operating income on a cash basis improved marginally to $124.1 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 87.4%, down 70 basis points from a year ago.
CUZ ended the quarter with the same-property portfolio being leased at 89.3%, down from 90.8% at the end of the year-ago period. The second-generation net rent per square foot (cash basis) climbed 4.2%.
However, interest expenses jumped 34.8% to $41.5 million year over year.
In the third quarter, CUZ acquired The Link — a 292,000-square-foot lifestyle office property in Uptown Dallas — for $218.0 million.
CUZ’s Balance Sheet
CUZ exited the third quarter of 2025 with cash and cash equivalents of $467.5 million, up from $416.8 million as of June 30, 2025.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.38 compared with 5.11 in the prior quarter. Fixed charges coverage (EBITDAre) was 3.50X, down from 3.73X in the prior quarter.
CUZ’s 2025 Outlook Revision
Cousins Properties now expects 2025 FFO per share between $2.82 and $2.86, up from the earlier guided range of $2.79-$2.85. The Zacks Consensus Estimate is presently pegged at $2.83, within the guided range.
BXP Inc.’s (BXP - Free Report) third-quarter 2025 FFO per share of $1.74 surpassed the Zacks Consensus Estimate of $1.72. However, the reported figure fell 3.9% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2025 FFO per share of $1.58, which beat the Zacks Consensus Estimate of $1.34. The company reported an FFO of $1.13 per share in the year-ago period.
SL Green’s results highlighted strong leasing activity with improved average rental rates on the Manhattan office leases signed in this period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Cousins Properties Q3 FFO Matches Estimates, Revenues Top, '25 View Up
Key Takeaways
Cousins Properties (CUZ - Free Report) reported third-quarter 2025 funds from operations (FFO) per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.
Cousins Properties experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Rental property revenues rose 18.9% year over year to $246.5 million, surpassing the Zacks Consensus Estimate of $243.1 million. Total revenues grew 18.7% year over year to $248.3 million.
CUZ’s Q3 in Detail
Cousins Properties executed leases for 551,398 square feet of office space in the third quarter, including 208,783 square feet of new and expansion leases.
Same-property rental property revenues on a cash basis grew 3.7% year over year to $195.4 million. Same-property rental property operating expenses on a cash basis increased 10.3% to $71.3 million in the third quarter of 2025. As a result, the same-property net operating income on a cash basis improved marginally to $124.1 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 87.4%, down 70 basis points from a year ago.
CUZ ended the quarter with the same-property portfolio being leased at 89.3%, down from 90.8% at the end of the year-ago period. The second-generation net rent per square foot (cash basis) climbed 4.2%.
However, interest expenses jumped 34.8% to $41.5 million year over year.
In the third quarter, CUZ acquired The Link — a 292,000-square-foot lifestyle office property in Uptown Dallas — for $218.0 million.
CUZ’s Balance Sheet
CUZ exited the third quarter of 2025 with cash and cash equivalents of $467.5 million, up from $416.8 million as of June 30, 2025.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.38 compared with 5.11 in the prior quarter. Fixed charges coverage (EBITDAre) was 3.50X, down from 3.73X in the prior quarter.
CUZ’s 2025 Outlook Revision
Cousins Properties now expects 2025 FFO per share between $2.82 and $2.86, up from the earlier guided range of $2.79-$2.85. The Zacks Consensus Estimate is presently pegged at $2.83, within the guided range.
CUZ’s Zacks Rank
CUZ currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cousins Properties Incorporated Price, Consensus and EPS Surprise
Cousins Properties Incorporated price-consensus-eps-surprise-chart | Cousins Properties Incorporated Quote
Performance of Other Office REITs
BXP Inc.’s (BXP - Free Report) third-quarter 2025 FFO per share of $1.74 surpassed the Zacks Consensus Estimate of $1.72. However, the reported figure fell 3.9% year over year.
BXP’s quarterly results reflected better-than-anticipated revenues on healthy leasing activity. However, lower occupancy and higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also revised its guidance for 2025 FFO per share.
SL Green Realty Corp. (SLG - Free Report) reported third-quarter 2025 FFO per share of $1.58, which beat the Zacks Consensus Estimate of $1.34. The company reported an FFO of $1.13 per share in the year-ago period.
SL Green’s results highlighted strong leasing activity with improved average rental rates on the Manhattan office leases signed in this period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.