- FFO Growth 2025 full-year FFO of $2.84/share, up 5.6% YoY, with Q4 at $0.71/share matching consensus.
- Leasing Momentum 700,000 sq ft leased in Q4, the second-highest quarterly volume in 4 years, driving post-pandemic demand highs.
- Trophy Acquisition Purchased 300 South Tryon in Charlotte for $317M, a 20% rent-upgrade potential lifestyle office asset.
- Occupancy Target Aiming for 90%+ occupancy by 2026’s end, supported by a 1.1M sq ft late-stage lease pipeline.
- 2026 Guidance Midpoint FFO of $2.92/share, reflecting 2.8% growth, with $200M+ in non-core asset sales funding investments.
Operational Highlights
The company's office portfolio end-of-period leased and weighted average occupancy percentages were 90.7% and 88.3%, respectively. Leasing volume in the fourth quarter was very strong, with 39 office leases totaling 700,000 square feet. The company also acquired 300 South Tryon, a trophy lifestyle office property in Charlotte, for $317 million, strategically expanding its presence in the Uptown submarket.
Leasing and Occupancy Trends
Office fundamentals are improving, driven by a decline in vacancy and a growing demand for high-quality space. The company's leasing pipeline is robust across all markets, with a notable pickup in leasing interest from West Coast and New York City-based companies. Cousins Properties expects to grow occupancy in 2026, aiming for 90% or higher by year-end.
Valuation and Growth Prospects
With a P/E Ratio of 74.76 and an EV/EBITDA of 12.52, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.7%. The company's Dividend Yield of 4.99% is also attractive to income investors. Given the improving office fundamentals and the company's robust leasing pipeline, Cousins Properties is well-positioned for continued growth.
Strategic Initiatives
The company plans to execute additional accretive investment opportunities, targeting properties that can be repositioned into lifestyle office in its target Sun Belt markets. Cousins Properties will evaluate all options to fund new investments, including dispositions of non-core assets, share repurchases, and utilizing the balance sheet. The company introduced 2026 FFO guidance of $2.92 per share at the midpoint, implying 2.8% growth over 2025.