COUSINS PROPERTIES INC Q1 FY26 Results

Summary

Cousins Properties reported a net loss available to common stockholders of $24.9 million, or $0.15 per share, for the first quarter of 2026, primarily due to an impairment charge. Funds From Operations (FFO) for the quarter was $122.9 million, or $0.73 per share, a slight decrease from the prior year. Operationally, the company saw strong performance with same property net operating income on a cash-basis increasing by 5.5% and second generation net rent per square foot on a cash-basis rising by 15.2%. Management highlighted an outstanding start to 2026 driven by Sun Belt migration and strong office leasing activity, positioning the company well for an emerging shortage of lifestyle office space. The company also updated its full-year 2026 FFO guidance upwards to between $2.90 and $2.98 per share.

Key Highlights

1. 1

   Net loss available to common stockholders for Q1 2026 was $24.9 million, or $0.15 per share, compared to net income of $20.9 million, or $0.12 per share, for Q1 2025, primarily due to an impairment charge.

2. 2

   Funds From Operations (FFO) for Q1 2026 was $122.9 million, or $0.73 per share, a slight decline from $124.8 million, or $0.74 per share, in Q1 2025, mainly due to a gain from a bankruptcy claim sale in the prior year.

3. 3

   Same property net operating income (NOI) on a cash-basis increased by 5.5% in the first quarter of 2026, alongside a 15.2% increase in second generation net rent per square foot on a cash-basis.

4. 4

   The company executed 932,000 square feet of office leases, including 483,000 square feet of new and expansion leases, representing 52% of total leasing activity.

5. 5

   Cousins Properties acquired 300 South Tryon, a 638,000 square foot office property in Charlotte, for $317.5 million, and sold Harborview Plaza for $39.5 million during the quarter.

6. 6

   The company issued $500.0 million of 4.875% public unsecured senior notes and repurchased 3.9 million shares at a weighted average price of $23.36 per share.

7. 7

   Full-year 2026 FFO guidance was updated upwards to between $2.90 and $2.98 per share, reflecting better than forecasted execution on debt financings and share repurchases.