Cousins Properties raises 2026 FFO forecast as Q3 revenue misses estimates

Cousins Properties Inc. (CUZ) raised its 2026 forecast for funds from operations, or FFO, when it reported third-quarter results on Oct. 29. Third-quarter revenue of $259.42 million missed the $267.26 million consensus estimate, according to Finnhub.

The Atlanta-based company is a real estate investment trust founded in 1958. It primarily invests in Class A office buildings in high-growth Sun Belt markets.

The company now expects 2026 FFO of $2.95 to $2.99 per share, up from the $2.92 to $2.98 range it gave on July 30.

“Our third quarter was exceptionally strong,” said Colin Connolly, President and Chief Executive Officer. “We increased our FFO guidance, completed strategic transactions that will enhance the quality of our portfolio, and had robust leasing and operating metrics.”

Here's how the company did:

• Net income available to common stockholders: $17.0 million, or 10 cents per share, vs. $8.6 million, or 5 cents, a year earlier
• FFO: $123.8 million, or 75 cents per share, vs. $116.5 million, or 69 cents, a year earlier
• Revenue: $259.42 million vs. $248.3 million a year earlier, and $267.26 million expected, according to Finnhub

For the first nine months, the company reported FFO of $371.3 million, or $2.23 per share, up from $358.9 million, or $2.13, a year earlier.

Net income available to common stockholders was $18.3 million, or 11 cents per share, down from $44.0 million, or 26 cents, for the same period in 2025.

2026 guidance

Net income guidance now runs from 14 to 18 cents per share for 2026, up from the 8 to 14 cent range given on July 30.

The company said the increase in FFO per share is primarily driven by leasing activity and fee income that exceeded its prior forecast.

The forecast excludes the settlement of 3.9 million common shares previously sold on a forward basis. It assumes the sale of the 303 Tremont land parcel in the fourth quarter.

The company said the guidance does not include any speculative property acquisitions, dispositions or development starts.

Leasing and operations

Same property net operating income on a cash basis rose 7.4% in the quarter and 6.2% for the first nine months, the company said.

Second-generation net rent per square foot on a cash basis increased 19.8% in the quarter and 14.2% for the nine months.

The company executed 546,000 square feet of office leases in the quarter, including 220,000 square feet of new and expansion leases. That was 40.3% of its total leasing activity.

“Given strong office fundamentals, we remain on track to achieve our 90% occupancy target by year end,” Connolly said.

Revenue has risen in each of the last three quarters, from $248.3 million in the third quarter of 2025 to $268.5 million in the second quarter of 2026, according to its SEC filings.

Portfolio and capital activity

The company sold One Eleven Congress, a 519,000-square-foot office property in Austin, for a gross sales price of $208.0 million. The filing shows a $36.6 million operating property impairment in the first quarter tied to that building.

It acquired a preferred equity interest in 5th & Walsh, a 199,000-square-foot office building under development in Austin. Its $31.5 million funding commitment is expected to be invested in the second half of 2027 and will earn a 10% preferred return.

Through its at-the-market, or ATM, program, the company sold 917,000 shares on a forward basis at an average price of $31.37 per share. Unsettled forward shares now total 3.9 million at an average price of $30.66.

The company repaid a $99.2 million mortgage secured by Colorado Tower in Austin at par on its Sept. 1, 2026 maturity. In October, it repaid a $115.9 million mortgage on 201 North Tryon in Charlotte at par on its Oct. 1, 2026 maturity.

It also formed a joint venture to acquire 2.3 acres at 2401 McKinney in Uptown Dallas, in which it holds a 97.5% equity interest. It contributed $50.0 million at formation, including $42.2 million for land and $7.8 million for predevelopment costs.

The company will hold a conference call on Oct. 30, 2026 at 10 a.m. Eastern, it said.