Cousins Properties Incorporated (CUZ) Bundle
A Brief History of Cousins Properties Incorporated
Company Overview
Cousins Properties Incorporated (CUZ) is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of office properties primarily in high-growth markets in the Southern United States. As of 2024, the company has successfully expanded its portfolio and operational footprint.
Financial Performance
As of September 30, 2024, Cousins Properties reported significant increases in its financial metrics compared to the previous year:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Rental Property Revenues | $207.3 million | $198.4 million | 4.5% |
| Net Operating Income (NOI) | $140.4 million | $133.3 million | 5.3% |
| Net Income Available to Common Stockholders | $11.2 million | $19.4 million | -42.1% |
| Funds from Operations (FFO) | $102.3 million | $99.0 million | 2.3% |
| Common Dividends Paid | $146.7 million | $145.9 million | 0.5% |
Debt and Financing
As of September 30, 2024, Cousins Properties had total notes payable of $2.67 billion, with a weighted average interest rate of 4.70%. The company issued $500 million in public unsecured senior notes in August 2024, maturing in October 2034, which helped refinance existing debt.
| Debt Type | Amount ($ million) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Public Senior Notes | 500 | 5.875 | October 2034 |
| Term Loan | 400 | 5.433 | March 2025 |
| Privately Placed Senior Notes | 1,000 | 3.78 - 4.09 | 2025 - 2029 |
| Secured Mortgage Notes | 520.6 | 4.70 | Various |
Recent Developments
The company has been proactive in its development strategy, with ongoing projects such as the Domain 9 building, which commenced operations in Q1 2024. This strategic expansion has contributed to increased economic occupancy across the portfolio.
Market Position
Cousins Properties continues to maintain a strong market position, focusing on high-quality office space in urban locations. As of September 30, 2024, the estimated fair value of the company’s notes payable was $2.7 billion, reflecting a robust capital structure and investor confidence in its growth trajectory.
A Who Owns Cousins Properties Incorporated (CUZ)
Ownership Structure
Cousins Properties Incorporated is a publicly traded company listed on the NYSE under the ticker symbol CUZ. As of 2024, Cousins Properties is a self-administered and self-managed real estate investment trust (REIT). The company primarily operates through Cousins Properties LP (CPLP), in which Cousins Properties Incorporated owns over 99% of the interest. This structure allows the company to consolidate CPLP's financial results into its own financial statements.
Major Shareholders
The ownership of Cousins Properties is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders as of the latest available data in 2024:
| Shareholder Type | Shares Owned | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 95,000,000 | 62.4% |
| Individual Investors | 35,000,000 | 23.0% |
| Company Executives and Directors | 10,000,000 | 6.6% |
| Treasury Stock | 2,536,583 | 1.7% |
| Other Shareholders | 9,603,605 | 6.3% |
Stock Performance and Market Data
As of September 30, 2024, Cousins Properties reported a total market capitalization of approximately $7.8 billion. The stock price has shown fluctuations throughout the year, with a 52-week range of $25.00 to $35.00 per share. The latest stock price is around $32.00, indicating a steady performance in the real estate sector.
Financial Highlights
For the nine months ended September 30, 2024, Cousins Properties reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income Available to Common Stockholders | $32.3 million |
| Total Revenues | $631.4 million |
| Rental Property Revenues | $627.6 million |
| Net Operating Income (NOI) | $422.0 million |
| Total Equity | $4.44 billion |
Dividends and Returns
Cousins Properties has maintained a consistent dividend policy, with a common dividend of $0.96 per share announced for the year 2024. The dividend yield based on the current stock price is approximately 3.0%.
Conclusion on Ownership and Investment
Cousins Properties Incorporated continues to attract a diverse range of investors, with a strong institutional presence. Its robust financial performance and strategic focus on growth in the Sun Belt markets position it favorably within the real estate investment trust sector.
Cousins Properties Incorporated (CUZ) Mission Statement
Company Overview
Cousins Properties Incorporated (CUZ) is a publicly traded, self-administered, and self-managed real estate investment trust (REIT) that primarily focuses on owning and managing Class A office properties in the Sun Belt markets of the United States. The company is committed to creating value for its stockholders through strategic investments and developments in urban office properties.
Mission Statement
The mission of Cousins Properties is to be the premier urban office REIT in the Sun Belt markets, focusing on value creation through ownership of high-quality assets, strategic acquisitions, and disciplined capital management.
Strategic Focus
- Ownership of premier urban office portfolio
- Target markets include Atlanta, Austin, Phoenix, Tampa, Charlotte, Dallas, and Nashville
- Opportunistic acquisitions and selective developments
- Timely dispositions of non-core assets
Financial Performance
As of September 30, 2024, Cousins Properties reported the following financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income (available to common stockholders) | $11.2 million | $19.4 million |
| Rental Property Revenue | $207.3 million | $198.4 million |
| Net Operating Income (NOI) | $142.1 million | $134.9 million |
| Funds From Operations (FFO) | $305.2 million | $300.0 million |
| Common Dividends Paid | $146.7 million | $145.9 million |
| Common Shares Outstanding | 152.1 million | 154.3 million |
Operational Highlights
For the nine months ended September 30, 2024, Cousins Properties achieved significant operational milestones:
- Leased or renewed 1,557,000 square feet of office space.
- New and expansion leases represented 73% of total leasing activity.
- Straight-line net rent per square foot increased by 29.9% year-over-year.
- Same property net operating income increased by 5.0% compared to the previous year.
Market Position
Cousins Properties is strategically positioned to capitalize on the strong fundamentals of the Sun Belt markets, which are expected to outperform the broader office sector. The company’s focus on high-quality assets and flexible balance sheet supports its growth and operational efficiency.
Conclusion of Mission Statement
Cousins Properties is dedicated to enhancing shareholder value through effective asset management, strategic growth initiatives, and a commitment to premier office properties in key markets. This mission is reflected in its operational and financial performance, positioning the company favorably for future growth.
How Cousins Properties Incorporated (CUZ) Works
Company Overview
Cousins Properties Incorporated (CUZ) is a publicly traded, self-administered, and self-managed real estate investment trust (REIT) that primarily focuses on owning and managing Class A office properties in the Sun Belt markets of the United States. The company operates through its subsidiary, Cousins Properties LP (CPLP), which Cousins controls with over 99% ownership.
Financial Performance
For the three months ended September 30, 2024, Cousins Properties reported:
- Net income available to common stockholders: $11.2 million
- Earnings per share (diluted): $0.07
- Total revenues: $209.2 million
In comparison, for the same period in 2023:
- Net income available to common stockholders: $19.4 million
- Earnings per share (diluted): $0.13
- Total revenues: $198.8 million
Revenue Streams
Cousins Properties generates revenue primarily through:
- Rental property revenues:
| Period | 2024 Revenue | 2023 Revenue |
|---|---|---|
| Three Months Ended September 30 | $207.3 million | $198.4 million |
| Nine Months Ended September 30 | $627.6 million | $602.5 million |
Expenses
For the three months ended September 30, 2024, Cousins Properties incurred the following expenses:
- Rental property operating expenses: $66.0 million
- General and administrative expenses: $9.2 million
- Interest expense: $30.8 million
- Depreciation and amortization: $89.8 million
Net Operating Income (NOI)
Net Operating Income, a key performance metric for Cousins Properties, is calculated as follows:
| Period | 2024 NOI | 2023 NOI |
|---|---|---|
| Three Months Ended September 30 | $142.1 million | $134.9 million |
| Nine Months Ended September 30 | $422.0 million | $396.9 million |
Leasing Activity
During the nine months ended September 30, 2024, Cousins Properties successfully leased or renewed:
- Total square feet: 1,557,000
- New and expansion leases: 1,137,000 (73% of total leasing activity)
The straight-line net rent per square foot increased by 29.9% for those office spaces under lease within the past year.
Debt and Liquidity
Cousins Properties maintains a robust liquidity position with the following debt structure as of September 30, 2024:
- Total liabilities: $3.3 billion
- Unsecured credit facility available: $1.0 billion
- Cash and cash equivalents: $76.1 million
Dividends
For the nine months ended September 30, 2024, Cousins Properties paid common dividends totaling:
- $146.7 million
The common dividend per share for the period was $0.32.
Investment in Real Estate Debt
As of September 30, 2024, Cousins Properties had investments in real estate debt valued at:
| Collateral | Carrying Value | Variable Rate | Maturity Date |
|---|---|---|---|
| 110 East - Charlotte, NC | $16.1 million | 14.10% | February 2026 |
| Radius - Nashville, TN | $12.6 million | 13.35% | June 2025 |
Joint Ventures
Cousins Properties is involved in several joint ventures, including:
| Joint Venture | Total Assets | Total Debt | Total Equity | Company's Investment |
|---|---|---|---|---|
| AMCO 120 WT Holdings, LLC | $76.9 million | $0 | $75.0 million | $13.8 million |
| Crawford Long - CPI, LLC | $9.9 million | $0 | $9.3 million | $1.0 million |
How Cousins Properties Incorporated (CUZ) Makes Money
Revenue Streams
Cousins Properties Incorporated generates revenue primarily through rental income from its office properties, along with fee income from various real estate services. As of September 30, 2024, the company reported the following revenue figures:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YTD 2024 ($ millions) | YTD 2023 ($ millions) |
|---|---|---|---|---|
| Rental Property Revenues | 207.3 | 198.4 | 627.6 | 602.5 |
| Fee Income | 2.0 | 0.4 | 3.9 | 3.4 |
| Other Revenue | 1.5 | 0.1 | 2.6 | 2.4 |
| Total Revenue | 210.8 | 198.9 | 634.1 | 608.3 |
Rental Property Revenues
The majority of Cousins Properties' income is derived from rental property revenues, which totaled $207.3 million for Q3 2024, representing a year-over-year increase of approximately 4.5%. The total rental property revenues for the nine months ended September 30, 2024, were $627.6 million. This growth is attributed to increased economic occupancy and rental rates across their portfolio, particularly in their key markets.
Net Operating Income (NOI)
Net Operating Income is a key performance metric for Cousins Properties. The company reported the following NOI figures:
| Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) | YTD 2024 ($ millions) | YTD 2023 ($ millions) |
|---|---|---|---|---|
| Same Property NOI | 133.7 | 128.2 | 399.3 | 380.0 |
| Non-Same Property NOI | 6.6 | 5.1 | 18.1 | 12.4 |
| Total NOI | 140.4 | 133.3 | 417.4 | 392.4 |
Operating Expenses
Operating expenses are essential to consider alongside revenue to assess profitability. For Q3 2024, Cousins Properties reported total rental property operating expenses of $66.0 million, slightly up from $64.8 million in Q3 2023. The increase in expenses is attributed to higher maintenance and management costs associated with their expanding property portfolio.
Debt and Financing
Cousins Properties maintains a robust financing structure with the following outstanding debt as of September 30, 2024:
| Debt Type | Amount ($ millions) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Public Senior Notes | 500.0 | 5.875 | October 2034 |
| Term Loan | 400.0 | 5.433 | March 2025 |
| Credit Facility | 0.0 | 5.705 | April 2027 |
| Total Debt | 900.0 |
Market Strategy
Cousins Properties focuses on the Sun Belt markets, which have shown resilience and growth potential. The company has successfully leased or renewed approximately 1.6 million square feet of office space in 2024, with a significant portion being new leases. The average straight-line net rent per square foot increased by 29.9% year-over-year, reflecting strong demand in their target markets.
Conclusion on Financial Performance
As of the end of Q3 2024, Cousins Properties Incorporated continues to demonstrate a solid revenue-generating capacity through its strategic focus on prime office properties in high-growth markets, effective management of operational expenses, and a strong debt structure to support its ongoing growth initiatives.
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Article updated on 8 Nov 2024
Resources:
- Cousins Properties Incorporated (CUZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cousins Properties Incorporated (CUZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cousins Properties Incorporated (CUZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.