Cousins Properties CUZ reported fourth-quarter 2025 funds from operations (FFO) per share of 71 cents, in line with the Zacks Consensus Estimate. The figure increased 2.9% on a year-over-year basis.
Cousins Properties experienced healthy leasing activity in the quarter. The weighted average occupancy decreased, while interest expenses increased and marred the growth tempo.
Rental property revenues rose 15% year over year to $253.3 million, surpassing the Zacks Consensus Estimate of $248.7 million. Total revenues grew 11.6% year over year to $255 million.
For full-year 2025, FFO per share came in at $2.84, higher than the prior-year tally of $2.69 and in line with the Zacks Consensus Estimate. Rental property revenues rose 15.7% year over year to $980.5 million.
Cousins announced the acquisition of 300 South Tryon, spanning 638,000 square feet for $317.5 million. Built in 2017, the lifestyle office property is located in the Uptown submarket of Charlotte, NC. The property is 100% leased with a weighted average lease term of six years.
CUZ’s Q4 in Detail
Cousins Properties executed leases for 700,000 square feet of office space in the fourth quarter, including 493,000 square feet of new and expansion leases.
Same-property rental property revenues on a cash basis grew 1.4% year over year to $198.7 million. Same-property rental property operating expenses on a cash basis increased 3.8% to $73.1 million in the fourth quarter of 2025. As a result, the same-property net operating income on a cash basis improved marginally to $125.6 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 87.4%, down 1.4% from the prior-year period.
CUZ ended the quarter with the same-property portfolio being leased at 90.1%, down from 91% at the end of the year-ago period. The second-generation net rent per square foot (cash basis) increased marginally.
Interest expenses jumped 28.5% to $42.5 million year over year.
In the fourth quarter, CUZ entered into agreements to sell Harborview Plaza property in Tampa, FL, for gross proceeds of $39.5 million and a land parcel at 303 Tremont in Charlotte, NC, for gross proceeds of $23.7 million. The transactions are expected to close in the first and second halves of 2026, respectively.
CUZ’s Balance Sheet
CUZ exited the fourth quarter of 2025 with cash and cash equivalents of $5.7 million, up from $4.7 million as of Sept. 30, 2025.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.30 compared with 5.38 in the prior quarter. Fixed charges coverage (EBITDAre) was 3.52X, up from 3.50X in the prior quarter.
CUZ’s 2026 Outlook
Cousins Properties expects 2026 FFO per share in the range of $2.87-$2.97. The Zacks Consensus Estimate for the same is presently pegged at $2.92, within the guidance.
CUZ currently carries a Zacks Rank #3 (Hold). 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 fourth-quarter 2025 FFO per share of $1.76 missed the Zacks Consensus Estimate of $1.80. The reported figure fell 1.7% year over year.
Results reflected higher expenses impacting the performance, though revenues improved year over year.
SL Green Realty Corp. SLG reported fourth-quarter 2025 FFO per share of $1.13, which beat the Zacks Consensus Estimate of $1.10. The company reported an FFO of $1.81 in the year-ago period.
Results showed robust leasing activity and improved average rents on Manhattan office leases. Higher interest expenses undermined the performance.
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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