EarningsQ3 2026 Earnings Report
MX:CUZ Q3 2026 EPS Results
Actual EPS$1.88
Consensus EPS$1.84
Beat/MissBeat by +$0.04
One Year Ago EPS$0.94
MX:CUZ Q3 2026 Revenue Results
Actual Revenue$4.87B
Expected Revenue$4.96B
Beat/MissMissed by -$90.51M
YoY Revenue Growth+4.47%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
MX:CUZ Upcoming Earnings
Cousins Properties's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CUZ Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported increased FFO guidance, record or near-record leasing and rent growth, improving occupancy, strong same-property NOI growth, a favorable expiration profile, and several portfolio-enhancing investment opportunities. The main challenges were the bifurcation and oversupply of commodity office, redevelopment-related NOI pressure at 201 North Tryon, expected Dallas downtime, higher interest rates and limited visibility into the final cost and timing of future development.Company Guidance
Strong Third-Quarter Performance and Increased Guidance
Management described the third quarter as very strong, citing increased earnings guidance, strategic transactions, robust leasing and strong operating metrics. Full-year 2026 FFO guidance was increased by $0.02 per share to a range of $2.95-$2.99, with a midpoint of $2.97, representing 4.6% growth over 2025 and a 4.3% compounded annual growth rate since 2023.
Improving Office Market Demand
According to JLL, 2026 leasing activity is on pace for a post-pandemic high, while net absorption has been positive for five consecutive quarters. Management said available office space is declining at one of the fastest paces in office market history.
AI-Related Office Demand Broadening
Management said AI is currently proving to be more of a friend than a foe to the office sector, with AI-related demand broadening across the country and into several Cousins markets. The company has not seen evidence in employment data of material negative trends attributable to AI. During the quarter, AI demand was concentrated in Austin, with hyperscalers the largest component and additional demand from companies involved in AI software and hardware.
Flight to Quality and Sun Belt Migration
Customers continue to prioritize high-quality, well-located buildings that promote engagement and collaboration. Management cited JLL data showing that nearly all positive office-sector net absorption since COVID has occurred in buildings delivered from 2010 onward. The company also reported renewed momentum in Sun Belt migration, including companies opening new Sun Belt corporate hubs and relocating jobs from higher-cost, less business-friendly Northeast and West Coast cities.
Historically Low New Construction Pipeline
New construction starts are at historic lows, and management said that meaningful new supply is unlikely until 2030 at the very earliest given the three- to four-year lead time required to deliver projects. Cousins said this is contributing to an emerging shortage of premier lifestyle office space in the best Sun Belt submarkets.
Strong Leasing Volume and Diversified Demand
Cousins completed 546,000 square feet of leasing in the third quarter, including 220,000 square feet of new and expansion leases. Technology and financial services accounted for approximately 49% of activity, with the remaining activity diversified across industries. This followed record-breaking leasing of 1.9 million square feet in the first half of 2026.
Healthy Renewal and Leasing Pipeline
The company completed 326,000 square feet of renewals during the quarter, with renewal volume 25% above its three-year run rate. Year-to-date new and expansion leasing reached approximately 1.1 million square feet. The late-stage pipeline increased from approximately 1.0 million square feet to approximately 1.4 million square feet, roughly evenly split between the operating portfolio and prospective new development activity. Excluding development, approximately 63% of the late-stage pipeline was new and expansion activity, while the broader pipeline was approximately 75% new and expansion.
Favorable Lease Expiration Profile
Only 853,000 square feet, or 4.6% of total portfolio lease space, expires through the end of 2027. This is roughly half the average amount expiring at the same point during the prior two years. There are no expirations over 100,000 square feet through the end of 2027, and the largest 2027 expiration that is not backfilled or already in leases to be backfilled is 26,000 square feet.
Record Rent Roll-Ups and Higher Net Effective Rents
Second-generation cash rents increased 19.8% in the third quarter, the strongest performance in five years and the company's 50th consecutive quarter of positive rent roll-ups. Year-to-date roll-up was 14.2%, and management said it expects double-digit roll-ups over the next several quarters. Average net effective rent increased 11.4% sequentially to $31.24, while third-quarter and year-to-date 2026 average net effective rent increased 21% and 18%, respectively, compared with full-year 2025.
Improved Portfolio Lease and Occupancy Metrics
The total office portfolio ended the quarter 93% leased and 89.5% occupied, with both metrics increasing sequentially and occupancy rising for the third consecutive quarter. Management remains confident in reaching its 90% occupancy target by year-end and said the portfolio could ultimately return to pre-COVID occupancy levels of 92%-93% or higher.
Tenant Commitments and Customer Relationships
Management said Amazon remains very committed to its Cousins footprint and that the company is hopeful Amazon will continue to grow in its markets. The company also said that multiple renewals with a large Fortune 10 technology company retained 100% of the relevant space despite other announcements of layoffs. Google's decision to self-manage its space at the Sail building was described as having no net impact on NOI.
Atlanta Leasing and Rent Growth
Atlanta produced 245,000 square feet of leasing in the third quarter. The portfolio reached 92.4% leased and 86.3% occupied, with a 6.1% lease-to-occupancy spread, while cash rents increased by more than 18% on completed activity.
Austin Technology Demand and High Leasing Level
Austin recorded its highest third-quarter net absorption since the second quarter of 2019, according to JLL. Cousins signed 180,000 square feet of leases, 77% of which was with technology companies, including AI-related companies. The portfolio reached 97.1% leased with a 6.9-year weighted average lease term, including a 76,000-square-foot renewal with a Fortune 10 technology company.
Charlotte Rent Growth and Redevelopment Progress
Cousins rolled up cash rents by more than 35% on completed Charlotte activity during the quarter. Management said trophy rents in the market have grown more than 30% over the last 18 months and total tenants are 20% higher than last year. Redevelopment at 201 North Tryon is progressing as planned, with a new amenity floor delivered during the quarter and the balance expected to be substantially complete in mid-2027. The company is negotiating with four potential new customers totaling 54,000 square feet.
Dallas Leasing and Rent Growth
The Dallas portfolio signed 62,000 square feet of leases during the quarter, reached 97.6% leased, and achieved a 40% cash rent roll-up. Two additional full-floor renewals totaling 54,000 square feet included expansion. Management was also in late-stage negotiations with a major new customer for approximately 160,000 square feet, which would bring the approximately 300,000-square-foot building to 91% leased once the lease is executed.
Same-Property NOI Growth
Third-quarter same-property cash NOI increased 7.4% year over year, driven by 5.5% revenue growth and 2% expense growth. Management said this was the strongest same-property cash NOI growth since the first quarter of 2020. Excluding 201 North Tryon, same-property cash NOI increased 8.6%.
Portfolio-Enhancing Asset Sale
Cousins sold 111 Congress, a 519,000-square-foot Austin CBD tower built in the late 1980s, for a gross price of $208 million, or $400 per square foot. Management said the sale recycled proceeds from an older-vintage asset into new opportunities that are accretive to earnings and expected to require less future capital.
5th & Walsh Preferred Equity Investment
Cousins committed up to $31.5 million of preferred equity to Endeavor's 5th & Walsh development in Austin. The project is expected to deliver nearly 200,000 square feet of creative office and high-end retail space in 2029, was 58% pre-leased at groundbreaking, and is expected to provide Cousins with a 10% preferred return upon funding. Cousins also has a future right to purchase the building.
2401 McKinney Development Opportunity
Through a joint venture with Trammell Crow Company, Cousins acquired a 97.5% equity interest in the 2.3-acre 2401 McKinney site in Uptown Dallas. Cousins' share of the initial investment was approximately $50 million, including $42.2 million for land and $7.8 million of predevelopment costs. The current plan contemplates a trophy office tower of approximately 700,000 square feet, with construction potentially commencing in the first half of 2027.
Development Pipeline and Land Bank Flexibility
Cousins is advancing predevelopment efforts across its markets. Demolition is about to begin at Domain 4 in Austin, an empty single-story office building on approximately five acres. At Neuhoff in Nashville, parking and infrastructure are already in place to support an additional 300,000-square-foot building, complementing an existing office component that is 96% leased. Combining Domain 4 with the Domain Central parcel effectively doubles the site to approximately 10 acres and could support phased office, retail and other uses.
Strong Balance Sheet and Unsecured Debt Strategy
Following repayment of a $100 million mortgage on Colorado Tower and a $116 million mortgage on 201 North Tryon, Cousins has only one consolidated mortgage remaining. Consolidated debt is 94% unsecured. Since receiving investment-grade ratings from Moody's and S&P in 2024, the company has issued $1.9 billion of unsecured public debt, and management said its bonds trade at the tightest spread to Treasuries among traditional office REITs.
Flexible Equity Funding Capacity
Cousins sold 917,000 shares on a forward basis under its ATM program at an average gross price of $31.37 per share. Including shares sold in 2025, the company has sold 3.9 million shares on a forward basis at an average price of $30.66 per share, representing approximately $120 million of equity available for future investment because none of the shares have settled.
MX:CUZ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed