Cousins Properties Reports Q3 2024 Financial Results, Rental Revenues Up 4.5%, Net Income Down 41.3%

Cousins Properties Incorporated (NYSE: CUZ), a self-administered and self-managed real estate investment trust (REIT), reported its financial results for the third quarter and nine months ended September 30, 2024. The company focuses on developing, acquiring, leasing, managing, and owning Class A office properties and mixed-use developments primarily in Sun Belt markets.

For the three months ended September 30, 2024, Cousins Properties generated rental property revenues of $207.3 million, an increase from $198.4 million in the same period of 2023. For the nine months, revenues rose to $627.6 million from $602.5 million year-over-year. However, net income for the third quarter decreased significantly to $11.4 million, down from $19.5 million in Q3 2023. For the nine months, net income was $32.8 million, compared to $64.9 million in the prior year. This decline in profitability is reflected in the net income available to common stockholders, which fell to $11.2 million for Q3 2024 from $19.4 million in Q3 2023, and to $32.3 million from $64.2 million for the nine-month period.

The company reported a basic and diluted earnings per share of $0.07 for Q3 2024, down from $0.13 in Q3 2023. The decrease in net income was attributed to increased interest expenses, which rose by 13.9% in Q3 2024 due to higher variable interest rates and reduced capitalized interest following the completion of construction on certain properties.

Cousins Properties' total assets increased to $7.77 billion as of September 30, 2024, from $7.63 billion at the end of 2023. Operating properties, net of accumulated depreciation, also rose to $6.91 billion from $6.78 billion. However, total liabilities increased to $3.33 billion from $3.09 billion, with notes payable rising to $2.66 billion from $2.46 billion.

In terms of strategic developments, the company did not engage in any real estate transactions during the nine months ended September 30, 2024. However, it acquired two mezzanine real estate loans for $27.2 million in Q2 2024 and recognized management fees from unconsolidated joint ventures of $259,000 for Q3 2024, up from $121,000 in the same period of 2023.

Cousins Properties continues to focus on its leasing activities, having leased or renewed 763,000 square feet of office space in Q3 2024, with a significant portion being new and expansion leases. The company reported a 30.7% increase in straight-line net rent per square foot for recently leased office spaces during the quarter.