COUSINS PROPERTIES INC
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
CUZ$29.60+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000025232-25-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0000025232-25-000061
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 82 previous paragraphs and 82 current paragraphs.
56 unchanged; 25 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Same Property Rental Property Revenues increased for the three months ended September 30, 2025 primarily due to an increase in operating expense recoveries included in rental revenues in addition to an increase in parking revenue. Same Property Rental Property Operating Expenses increased for the three months ended September 30, 2025 primarily due to successful real estate tax appeals in the third quarter of 2024.
Removed paragraphs (1)
Previous report
Same Property depreciation and amortization decreased between the three months ended June 30, 2025 and 2024, primarily driven by early terminations in the second quarter of 2024 at our Terminus, 725 Ponce, and Avalon properties, which resulted in accelerated depreciation and amortization of our assets related to these leases.
Reworded paragraphs (25)
Previous wording
During the quarter, we leased 334,000 square feet of office space, including 268,000 of new and expansion leases representing 80% of total leasing activity. Straight-line basis net rent per square foot increased 27.2% for those office spaces that were under lease within the past year. Same property net operating income (defined below) for consolidated properties and our share of unconsolidated properties increased 3.2% between the three months ended June 30, 2025 and 2024.
Current wording
During the quarter, we leased 551,000 square feet of office space, including 209,000 of new and expansion leases representing 38% of total leasing activity. Straight-line basis net rent per square foot increased 23.8% for those office spaces that were under lease within the past year. Same property net operating income (defined below) for consolidated properties and our share of unconsolidated properties increased 1.9% between the three months ended September 30, 2025 and 2024.
Previous wording
For the six months ended June 30, 2025, we have leased or renewed 873,000 square feet of office space, including 473,000 of new and expansion leases representing 54% of the total leasing activity. Straight-line basis net rent per square foot increased by 20.8% forthose office spaces that were under lease within the past year. Same property net operating income for consolidated properties and our share of unconsolidated properties increased 3.6% between the six months ended June 30, 2025 and 2024.
Current wording
For the nine months ended September 30, 2025, we have leased or renewed 1,425,000 square feet of office space, including 682,000 of new and expansion leases representing 48% of the total leasing activity. Straight-line basis net rent per square foot increased by 22.1% forthose office spaces that were under lease within the past year. Same property net operating income for consolidated properties and our share of unconsolidated properties increased 3.0% between the nine months ended September 30, 2025 and 2024.
Previous wording
Results of Operations For The Three and Six Months Ended June 30, 2025
Current wording
Results of Operations For The Three and Nine Months Ended September 30, 2025
Previous wording
Net income available to common stockholders for the three and six months ended June 30, 2025 was $14.5 million and $35.4 million, respectively. We detail below material changes in the components of net income available to common stockholders for the three and six months ended June 30, 2025 compared to 2024.
Current wording
Net income available to common stockholders for the three and nine months ended September 30, 2025 was $8.6 million and $44.0 million, respectively. We detail below material changes in the components of net income available to common stockholders for the three and nine months ended September 30, 2025 compared to 2024.
Previous wording
The following results include the performance of our Same Property portfolio. Our Same Property portfolio includes office properties that were stabilized and owned by us for the entirety of each comparable reporting period presented. Same Property amounts for the 2025 versus 2024 comparison period are from properties that were stabilized and owned as of January 1, 2024 through June 30, 2025. We consider many factors in determining whether a property has stabilized, including the property’s occupancy (independently and relative to its submarket) and current leasing pipeline, as well as time since the cessation of major construction activity.
Current wording
The following results include the performance of our Same Property portfolio. Our Same Property portfolio includes office properties that were stabilized and owned by us for the entirety of each comparable reporting period presented. Same Property amounts for the 2025 versus 2024 comparison period are for properties that were stabilized and owned as of January 1, 2024 through September 30, 2025. We consider many factors in determining whether a property has stabilized, including the property’s occupancy (independently and relative to its submarket) and current leasing pipeline, as well as time since the cessation of major construction activity.
Previous wording
Same Property Rental Property Revenues and NOI increased for the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to an increase in economic occupancy at our Promenade Tower, Corporate Center, and 3350 Peachtree office properties and increases in revenues recognized from tenant funded improvements owned by us. In addition, parking revenue from our Same Property portfolio increased for the three and six months ended June 30, 2025 compared to the same periods in the prior year. Same Property Rental Property Operating Expenses decreased for the three and six months ended June 30, 2025 primarily due to successful appeals of property tax assessments.
Current wording
Same Property Rental Property Revenues and NOI increased for the nine months ended September 30, 2025 compared to the same period in the prior year primarily due to an increase in economic occupancy at our Promenade Tower, Corporate Center, and 3350 Peachtree office properties and increases in revenues recognized from tenant funded improvements owned by us. In addition, parking revenue from our Same Property portfolio increased for the nine months ended September 30, 2025 compared to the same period in the prior year.
Previous wording
Non-Same Property Rental Property Revenues, operating expenses, and NOI increased for the three and six months ended June 30, 2025 compared to the same periods in the prior year primarily due to the acquisitions of our Vantage South End and Sail Tower office properties in December 2024.
Current wording
Non-Same Property Rental Property Revenues, operating expenses, and NOI increased for the three and nine months ended September 30, 2025 compared to the same periods in the prior year primarily due to the acquisitions of our Vantage South End and Sail Tower office properties in December 2024 as well as the acquisition of The Link in July 2025.
Previous wording
NOI for the Austin market increased $12.7 million, or 26.4%, and $26.7 million, or 28.5%, respectively, for the three and six months ended June 30, 2025 and 2024 primarily due to the acquisition of Sail Tower in December 2024. NOI from the Charlotte market increased $7.1 million, or 73.1%, and $13.6 million, or 67.6%, respectively, for the three and six months ended June 30, 2025 and 2024, primarily due to the acquisition of Vantage South End in December 2024.
Current wording
NOI from the Austin market increased $12.0 million, or 24.8%, and $38.7 million, or 27.3%, respectively, for the three and nine months ended September 30, 2025 compared to the same periods in the prior year, primarily due to the acquisition of Sail Tower in December 2024. NOI from the Charlotte market increased $5.9 million, or 61.0%, and $19.5 million, or 65.4%, respectively, for the three and nine months ended September 30, 2025 compared to the same periods in the prior year, primarily due to the acquisition of Vantage South End in December 2024. NOI from the Dallas market increased $3.5 million, or 98.8%, and $3.9 million, or 37.5%, respectively, for the three and nine months ended September 30, 2025 compared to the same periods in the prior year, primarily due to the acquisition of The Link in July 2025. NOI from the Phoenix market increased $1.3 million, or 12.0%, and $3.3 million, or 10.1%, for the three and nine months ended September 30, 2025 compared to the same periods in the prior year, primarily due to increased occupancy at the Tempe Gateway office property.
Previous wording
Other income increased $821,000 between the three month periods ended June 30, 2025 and 2024 primarily due to interest income earned on the cash proceeds from our $500 million public bond offering in June 2025. Other income increased $7.6 million between the six month periods ended June 30, 2025 and 2024 primarily due to the sale of our Silicon Valley Bank ("SVB") bankruptcy claim in the first quarter of 2025 and interest income from the two mezzanine loans acquired in the second quarter of 2024 and the Saint Ann Court mortgage loan acquired in the fourth quarter of 2024. These transactions are described in further detail in note 3 and note 12 to the consolidated financial statements in this Form 10-Q.
Current wording
Other income increased $7.5 million between the nine month periods ended September 30, 2025 and 2024 primarily due to the sale of our Silicon Valley Bank ("SVB") bankruptcy claim in the first quarter of 2025, interest income from the two mezzanine loans acquired in the second quarter of 2024, and the Saint Ann Court mortgage loan acquired in the fourth quarter of 2024. These transactions are described in further detail in note 3 and note 12 to the consolidated financial statements in this Form 10-Q.
Previous wording
General and administrative expenses increased $831,000, or 9.3%, and $2.3 million, or 12.8%, between the three and six month periods ended June 30, 2025 and 2024, respectively, primarily due to increases in stock compensation expense.
Current wording
General and administrative expenses increased $2.6 million, or 9.6%, between the nine month periods ended September 30, 2025 and 2024, primarily due to increases in stock compensation and bonus expense.
Previous wording
Interest expense, net of amounts capitalized, increased $8.8 million, or 29.5%, and $16.6 million, or 28.4%, respectively, between the three and six months ended June 30, 2025 and 2024, primarily due to the issuances of the $500 million and $400 million public unsecured senior notes in August and December of 2024, respectively, as well as the issuance of the $500 million public unsecured senior notes in June of 2025.
Current wording
Interest expense, net of amounts capitalized, increased $10.7 million, or 34.8%, and $27.4 million, or 30.6%, respectively, between the three and nine months ended September 30, 2025 and 2024, primarily due to the issuances of the $500 million and $400 million public unsecured senior notes in August and December of 2024, respectively, as well as the issuance of the $500 million public unsecured senior notes in June 2025, partially offset by the repayments of the $250 million senior note in July 2025 and the repayment of $100 million of the 2021 Term Loan in August 2024, as well as a lower average balance outstanding on the Credit Facility during the nine months ended September 30, 2025.
Previous wording
Non-Same Property depreciation and amortization increased between the three and six months ended June 30, 2025 and 2024, primarily due to the acquisitions of Sail Tower and Vantage South End in December 2024 and the completion of development at Domain 9, and changes in the estimated useful lives of buildings and improvements at some of our operating properties.
Current wording
Non-Same Property depreciation and amortization increased between the three and nine months ended September 30, 2025 and 2024, primarily due to the acquisitions of Sail Tower and Vantage South End in December 2024, the acquisition of The Link in July 2025, and the completion of development at Domain 9.
Previous wording
The change in income (loss) from unconsolidated joint ventures was driven by increases in unconsolidated depreciation and amortization as well as unconsolidated interest expense. Unconsolidated depreciation and amortization expense increased between the three and six months ended June 30, 2025 and 2024, primarily due to: (i) assets being placed in service as portions of the development were completed and initial operations started at our joint venture's Neuhoff property in the fourth quarter of 2023 and (ii) the acquisition of Proscenium in August 2024. Unconsolidated interest expense increased between the three and six months ended June 30, 2025 and 2024, primarily due to a reduction in capitalized interest at our Neuhoff joint venture as portions of its development project were completed in 2024.
Current wording
The change in loss from unconsolidated joint ventures was driven by increases in unconsolidated depreciation and amortization as well as unconsolidated interest expense. Unconsolidated depreciation and amortization expense increased between the three and nine months ended September 30, 2025 and 2024, primarily due to: (i) assets being placed in service as portions of the development were completed and initial operations started at our joint venture's Neuhoff property in the fourth quarter of 2023 and (ii) the acquisition of Proscenium in August 2024. Unconsolidated interest expense increased between the three and nine months ended September 30, 2025 and 2024, primarily due to a reduction in capitalized interest at our Neuhoff joint venture as further portions of its development project were completed in 2025.
Previous wording
Non-Same Property NOI from unconsolidated joint ventures increased between the three and six months ended June 30, 2025 and 2024, primarily due to operations at Neuhoff as the property continues to increase occupancy and to the acquisition of Proscenium in August 2024.
Current wording
Non-Same Property NOI from unconsolidated joint ventures increased between the three and nine months ended September 30, 2025 and 2024, primarily due to operations at Neuhoff, as the property continues to increase occupancy, and the acquisition of Proscenium in August 2024.
Previous wording
The reconciliation of net income to FFO is as follows for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):
Current wording
The reconciliation of net income to FFO is as follows for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts):
Previous wording
Our material capital expenditure commitments as of June 30, 2025 include $109.5 million of unfunded tenant improvements and construction costs. As of June 30, 2025, we had no amounts drawn under our credit facility with the ability to borrow the full $1.0 billion, as well as $416.8 million of cash and cash equivalents. We expect to have sufficient liquidity to meet our obligations for the foreseeable future.
Current wording
Our material capital expenditure commitments as of September 30, 2025 include $131.6 million of unfunded tenant improvements and construction costs. As of September 30, 2025, we had $83.7 million drawn under our credit facility with the ability to borrow $916.3 million, as well as $4.7 million of cash and cash equivalents. We expect to have sufficient liquidity to meet our obligations for the foreseeable future.
Previous wording
In addition to our $1 billion unsecured Credit Facility (with no amounts outstanding as of June 30, 2025), we also have unsecured debt from three public unsecured senior notes totaling $1.4 billion, two term loans totaling $650 million, and five tranches of privately placed unsecured senior notes totaling $1 billion (one of which was repaid in full at maturity, subsequent to June 30, 2025). Our existing consolidated mortgage debt is comprised of non-recourse, fixed-rate mortgage notes secured by various real estate assets. We expect to either refinance our non-recourse mortgage loans at maturity or repay the mortgage loans with other capital resources, including our credit facility, unsecured debt, non-recourse mortgages, construction loans, the sale of assets, joint venture equity, the issuance of common stock, the issuance of preferred stock, or the issuance of units of CPLP. Many of our non-recourse mortgages contain covenants that, if not satisfied, could result in acceleration of the maturity of the debt. 93% of our consolidated debt bears interest at a fixed rate. The 7% of consolidated debt that bears interest at a floating rate is based on SOFR.
Current wording
In addition to our $1 billion unsecured Credit Facility (with $83.7 million outstanding as of September 30, 2025), we also have unsecured debt from three public unsecured senior notes totaling $1.4 billion, two term loans totaling $650 million, and four tranches of privately placed unsecured senior notes totaling $750 million. Our existing consolidated mortgage debt is comprised of non-recourse, fixed-rate mortgage notes secured by various real estate assets. We expect to either refinance our non-recourse mortgage loans at maturity or repay the mortgage loans with other capital resources, including our credit facility, unsecured debt, non-recourse mortgages, construction loans, the sale of assets, joint venture equity, the issuance of common stock, the issuance of preferred stock, or the issuance of units of CPLP. Many of our non-recourse mortgages contain covenants that, if not satisfied, could result in acceleration of the maturity of the debt. 90% of our consolidated debt bears interest at a fixed rate. The 10% of consolidated debt that bears interest at a floating rate is based on SOFR.
Previous wording
Cash Flows from Operating Activities. Cash flows provided by operating activities increased $13.5 million between the 2025 and 2024 six month periods primarily due to increased economic occupancy and the end of rent abatement periods at our Promenade Central, Domain 9, and Buckhead Plaza office properties; and the acquisitions of our Vantage South End and Sail Tower office properties in December 2024.
Current wording
Cash Flows from Operating Activities. Cash flows provided by operating activities increased $16.6 million between the 2025 and 2024 nine month periods primarily due to increased economic occupancy and the end of rent abatement periods at our Promenade Central, Domain 9, and Buckhead Plaza office properties and the acquisitions of our Vantage South End and Sail Tower office properties in December 2024, as well as our acquisition of the The Link office property in July 2025.
Previous wording
Cash Flows from Investing Activities. Cash flows used in investing activities for the 2025 six month period were $25.4 million compared to cash flows used in investing activities of $181.3 million for the same period in 2024 primarily due to the borrowers' repayment of our investments in real estate debt on the Radius mezzanine loan and Saint Ann Court mortgage loan in the first quarter of 2025.
Current wording
Cash Flows from Investing Activities. Cash flows used in investing activities for the 2025 nine month period were $335.5 million compared to cash flows used in investing activities of $253.9 million for the same period in 2024 primarily due to the acquisition of The Link partially offset by the borrowers' repayments of our investments in real estate debt on the Radius mezzanine loan and Saint Ann Court mortgage loan in the first quarter of 2025.
Previous wording
Cash Flows from Financing Activities. Cash flows provided by financing activities for the 2025 six month period were $267.6 million compared to cash flows provided by financing activities of $27.4 million for the same period in 2024 primarily due the proceeds from the issuance of the 5.250% public senior notes in June 2025, partially offset by an increase in net repayments on our credit facility.
Current wording
Cash Flows from Financing Activities. Cash flows provided by financing activities for the 2025 nine month period were $45.0 million compared to cash flows provided by financing activities of $52.8 million for the same period in 2024. During the nine month period in 2025, we received proceeds from the issuance of the 5.25% public senior notes in June 2025, partially offset by an increase in net repayments on our credit facility and repayment of the $250 million outstanding amount of the privately placed senior notes. During the nine month period in 2024, we received proceeds from the issuance of the 5.875% public senior notes in August 2024, partially offset by an increase in net repayments on our credit facility and repayment of $100 million on our term note in July 2024.
Previous wording
Capital expenditures decreased $9.8 million between the 2025 and 2024 six month periods primarily due to decreases in spending for projects under development for core construction costs at Domain 9, which commenced its initial operations in the first quarter 2024, and initial leasing costs for other properties we have developed. This decrease is partially offset by increased spending on operating property leasing costs related to our Sail Tower property.
Current wording
Capital expenditures decreased $3.7 million between the 2025 and 2024 nine month periods primarily due to decreases in spending for projects under development for core construction costs at Domain 9, which commenced its initial operations in the first quarter of 2024. This decrease is partially offset by increased spending on operating property leasing costs related to our Sail Tower property.
Previous wording
The above leasing costs include leasing commissions and tenant improvements, which are both capitalized as a component of our real estate assets as they are incurred. Commitments towards those costs are calculated on square foot basis and are included in our leasing activity as leases are executed.
Current wording
The above leasing costs include leasing commissions and tenant improvements, which are both capitalized as a component of our real estate assets as they are incurred. Commitments toward those costs are calculated on square foot basis and are included in our leasing activity as leases are executed.
Previous wording
Leasing activity details, including the components of net effective rent per square foot, for our office portfolio on leases executed during the six months ended June 30, 2025 and 2024 are as follows:
Current wording
Leasing activity details, including the components of net effective rent per square foot, for our office portfolio on leases executed during the nine months ended September 30, 2025 and 2024 are as follows:
Previous wording
Dividends. We paid common dividends of $108.3 million and $98.0 million in the six months ended June 30, 2025 and 2024, respectively. We expect to fund our future quarterly common dividends with cash provided by operating activities, also using proceeds from investment property sales, distributions from unconsolidated joint ventures, indebtedness, and proceeds from offerings of equity and other securities, if necessary.
Current wording
Dividends. We paid common dividends of $162.1 million and $146.7 million in the nine months ended September 30, 2025 and 2024, respectively. The increase of common dividends paid in the comparative periods is largely driven by the issuance of 15.5 million shares of common stock in the fourth quarter of 2024. We expect to fund our future quarterly common dividends with cash provided by operating activities, proceeds from investment property sales, distributions from unconsolidated joint ventures, indebtedness, and proceeds from offerings of equity and other securities, if necessary.
Previous wording
Debt. At June 30, 2025, our unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of $368.6 million. These loans are generally mortgage or construction loans, which are non-recourse to us. In certain instances, we provide “non-recourse carve-out guarantees” on these non-recourse loans. In addition, along with our Neuhoff Holdings LLC joint venture partner, we guarantee our respective halves of the borrower's obligations to pay certain required equity contributions and project carrying costs, as well as timely completion of project construction. Certain of these loans have variable interest rates, which creates exposure to the ventures in the form of market risk from interest rate changes.
Current wording
Debt. At September 30, 2025, our unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of $333.0 million. These loans are generally mortgage or construction loans, which are non-recourse to us. In certain instances, we provide “non-recourse carve-out guarantees” on these non-recourse loans. In addition, along with our Neuhoff Holdings LLC joint venture partner, we guarantee our respective halves of the borrower's obligations to pay certain required equity contributions and project carrying costs, as well as timely completion of project construction. Certain of these loans have variable interest rates, which creates exposure to the ventures in the form of market risk from interest rate changes.