second quarter 2026
Filed Jul 30, 2026COUSINS PROPERTIES REPORTS SECOND QUARTER 2026 RESULTS Raises 2026 Earnings Guidance Midpoint
FFO, same property cash-basis NOI, cash-basis rents and leasing activity increased, while the company raised the midpoint of 2026 net income and FFO guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common stockholdersGAAP | $26.2 million | – | – |
| Net income available to common stockholders per shareGAAP | $0.16 per share | – | – |
| Funds From Operationsnon-GAAP | $124.6 million | – | – |
| Funds From Operations per sharenon-GAAP | $0.75 per share | – | – |
| Same property net operating income on a cash-basisnon-GAAP | increased 5.9% | – | increased 5.9% |
| Second generation net rent per square foot on a cash-basisother | increased 9.2% | – | increased 9.2% |
| Office leases executedother | 924,000 square feet | – | – |
| New and expansion office leasesother | 395,000 square feet | – | – |
| New and expansion leases as a percentage of total leasing activityother | 43% | – | – |
| Portfolio leasedother | 92.8% leased | – | – |
| Net income available to common stockholders for the six months ended June 30, 2026GAAP | $1.3 million | – | – |
| Net income available to common stockholders per share for the six months ended June 30, 2026GAAP | $0.01 per share | – | – |
| Funds From Operations for the six months ended June 30, 2026non-GAAP | $247.5 million | – | – |
| Funds From Operations per share for the six months ended June 30, 2026non-GAAP | $1.49 per share | – | – |
| Same property net operating income on a cash-basis for the six months ended June 30, 2026non-GAAP | increased 5.6% | – | increased 5.6% |
| Second generation net rent per square foot on a cash-basis for the six months ended June 30, 2026other | increased 12.2% | – | increased 12.2% |
| Office leases executed for the six months ended June 30, 2026other | 1,856,000 square feet | – | – |
| New and expansion office leases for the six months ended June 30, 2026other | 878,000 square feet | – | – |
| New and expansion leases as a percentage of total leasing activity for the six months ended June 30, 2026other | 47% | – | – |
year ending December 31, 2026 outlook
- NoteNet income between $0.08 and $0.14 per share
- NoteFFO between $2.92 and $2.98 per share
- NoteGuidance assumes the 2.9 million common shares previously issued on a forward basis are settled during the third quarter.
- NoteGuidance assumes the sale of our 303 Tremont land parcel during the fourth quarter.
- NoteGuidance does not include any speculative property acquisitions, dispositions, or development starts.
What drove it
- The increase in net income is primarily attributable to a gain on the sale of an investment property.
- The increase in FFO per share is primarily driven by leasing activity that exceeded our prior forecast and the transaction activity discussed above.
- The company executed 924,000 square feet of office leases during the quarter, including 395,000 square feet of new and expansion leases.
- Cash-basis same property NOI increased 5.9% and second generation net rent per square foot on a cash-basis increased 9.2%.
Concerns
- Net income available to common stockholders for the six months ended June 30, 2026 was $1.3 million, compared to net income of $35.4 million for the six months ended June 30, 2025.
- The decline in six-month net income is primarily attributable to an impairment charge.
- Guidance assumes the sale of the 303 Tremont land parcel during the fourth quarter.
- Guidance does not include any speculative property acquisitions, dispositions, or development starts.
What to watch
- Settlement of the 2.9 million common shares previously issued on a forward basis during the third quarter.
- Sale of the 303 Tremont land parcel during the fourth quarter.
- The late-stage leasing pipeline.
- The expected 2027 investment of the $31.5 million funding commitment for 5th & Walsh.
Balance sheet and cash flow
- Closed a new five-year $1.2 billion unsecured credit facility, replacing the prior $1.0 billion facility that was scheduled to mature in April 2027.
- Added two six-month extensions to our existing $400 million and $100 million unsecured term loans.
- Improved the borrowing spread by fifteen basis points on both the credit facility and the $400 million term loan and by thirty basis points on the $100 million term loan.
- Purchased our joint venture partner's 10% interest in 100 Mill for $18.5 million.
- Sold Research Park Plaza V for a gross sales price of $42.0 million resulting in a gain of $9.2 million.
- Subsequent to quarter end, acquired a preferred equity interest in 5th & Walsh. Our funding commitment of $31.5 million is expected to be invested in 2027.
- Subsequent to quarter end, sold One Eleven Congress for a gross sales price of $208.0 million on July 29, 2026.
Analysis
Cousins reported second-quarter FFO of $124.6 million, or $0.75 per share, compared with $117.5 million, or $0.70 per share, in second quarter 2025. Net income available to common stockholders was $26.2 million, or $0.16 per share, compared with $14.5 million, or $0.09 per share, with the company attributing the increase primarily to a gain on the sale of an investment property. The filing does not provide total revenue, gross margin, operating income, or segment revenue in the supplied text.
Operating indicators point to continued leasing and rent momentum. Same property NOI on a cash-basis increased 5.9%, while second generation net rent per square foot on a cash-basis increased 9.2%. The company executed 924,000 square feet of office leases, including 395,000 square feet of new and expansion leases representing 43% of activity, and reported that the portfolio was 92.8% leased.
For the six months ended June 30, 2026, FFO was $247.5 million, or $1.49 per share, compared with $242.3 million, or $1.44 per share, for the comparable 2025 period. Six-month net income available to common stockholders declined to $1.3 million, or $0.01 per share, from $35.4 million, or $0.21 per share, primarily because of an impairment charge. The divergence between six-month GAAP earnings and FFO is a central item for investors following the reported period.
The company completed a new five-year $1.2 billion unsecured credit facility and term-loan extensions, alongside lower borrowing spreads on the listed facilities. It purchased the remaining 10% interest in 100 Mill, sold Research Park Plaza V, and subsequently sold One Eleven Congress. Management raised 2026 net income guidance to between $0.08 and $0.14 per share and FFO guidance to between $2.92 and $2.98 per share, citing better-than-forecast leasing activity and transaction activity. The guide assumes settlement of 2.9 million forward-issued common shares in the third quarter and the sale of the 303 Tremont land parcel in the fourth quarter.
Management, verbatim
We had a busy and productive second quarter. We leased more than 920,000 square feet of office space during the second quarter, increasing our portfolio to 92.8% leased - the highest level since the first quarter of 2020. We also completed several strategic property transactions that further enhanced the quality of our lifestyle office portfolio. We are well-positioned for the second half of 2026 as our late-stage leasing pipeline remains robust and trophy office fundamentals in the Sun Belt are tightening.
Colin Connolly, President and Chief Executive Officer of Cousins Properties
Not in the filing
stated, not guessed- Total revenue
- Revenue comparisons and growth rates
- Segment revenue and segment comparisons
- Gross profit and gross margin
- Operating income and operating margin
- Operating expenses
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported metrics
- Guidance for revenue, gross margin, operating expenses, and tax rate
- Previous-release outlook required for versus-prior-guidance comparisons
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.