Key Highlights

  • Funds from operations were $0.75 per share, up from $0.69 a year earlier.
  • Net income available to common stockholders was $17.0 million, compared with $8.6 million.
  • Same property net Operating Income rose 3.3%, and total NOI reached $176.2 million.
  • The company leased 546,000 square feet, with straight-line net rent up 31.9% on previously leased space.
  • One Eleven Congress in Austin was sold for a gross price of $208.0 million.

Funds from operations climb to $0.75 per share

Cousins Properties (NYSE:CUZ) is a self-administered real estate Investment trust focused on what it calls lifestyle office buildings in Sun Belt markets, including Austin, Atlanta, Charlotte, Tampa, Phoenix, Dallas and Nashville. It reported results for the quarter ended September 30, 2026. Funds from operations came to $123.8 million, or $0.75 per share, compared with $116.5 million, or $0.69, a year earlier.

Net income available to common stockholders was $17.0 million, or $0.10 per share, against $8.6 million, or $0.05. Total revenues reached $259.4 million, up from $248.3 million, a gain of about 4.5% on a calculated basis.

Interest expense rose to $45.6 million from $41.5 million.

Leasing spreads and same property growth support operating income

Net operating income climbed to $176.2 million from $165.9 million. Same property NOI, which covers consolidated properties plus the company's share of unconsolidated properties, rose 3.3%.

During the quarter the company leased 546,000 square feet of office space, including 220,000 square feet of new and expansion leases, equal to 40.3% of activity. Straight-line net rent per square foot climbed 31.9% on spaces that had been under Lease within the prior year.

For the nine months, FFO was $2.23 per share, compared with $2.13.

Capital recycling: an Austin sale, a Dallas land parcel and a development stake

On July 29, 2026, the company sold One Eleven Congress, a 519,000 square foot Austin office building, for $208.0 million. Earlier in the year it booked a $36.6 million Impairment on that property, which explains why nine-month Net Income available to common stockholders was only $18.3 million, compared with $44.0 million.

On July 17, 2026, the company acquired a preferred Equity interest in 5th & Walsh, a 199,000 square foot office building under development in Austin, with a $31.5 million funding commitment. On September 29, 2026, it formed a joint venture, 2401 McKinney, contributing $50.0 million toward a 2.3 acre Uptown Dallas land parcel and predevelopment costs.

Balance sheet: Mortgage repayments and a larger Credit facility

The company repaid a $99.2 million mortgage secured by Colorado Tower in Austin at par on September 1, 2026. After quarter end, it paid off the remaining $115.9 million on the mortgage for 201 North Tryon.

At September 30, 2026, $114.8 million was drawn on its credit facility, which had $1.1 billion of borrowing capacity, and cash on hand was $5.2 million. The Facility was recast on April 1, 2026 to $1.2 billion, with Maturity pushed out to April 2031.

Unfunded tenant improvements and construction costs totaled $187.5 million, and the company said it was in compliance with all Debt covenants.

What to watch in Sun Belt office

Management said it believes lifestyle offices in its seven core markets will outperform the broader office sector, pointing to migration into the Sun Belt and a flight to quality among tenants.

Readers will likely follow whether leasing spreads hold near 31.9%, whether interest expense keeps climbing, and how the Austin and Dallas projects progress.