NYSE$CUZ

Cousins Properties Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported solid second quarter results, consistent with the forecast provided in April.

Cousins Properties reported solid second quarter results with net income per share of $0.16 and FFO per share of $0.66. The company collected 97% of rents in the second quarter and executed 302,877 square feet of office leases. They also purchased a parking garage in Charlotte for $85.0 million.

  • Net income per share was $0.16.
  • Funds from operations per share was $0.66.
  • Same property net operating income on a cash basis decreased 1.6%; adjusted for temporary rent deferrals and reduced parking income it increased 3.7%.
  • Second generation net rent per square foot on a cash basis increased 20.6%.

Headline financials

Total Revenue

$180M

Previous: $142M+26.7%
EPS (adj)

$0.66

Previous: $0.28+135.7%
Free Cash Flow

$23.1M

Previous: -$22.4M+203.1%
Net Income

$23.1M

Previous: -$22.4M+203.1%
Operating Income

$117M

Previous: $97.4M+20.2%
Gross Profit

$118M

Previous: $95.3M+24.1%
Cash & Equivalents

$28.3M

Previous: $11.9M+137.7%
Total Assets

$6.91B

Previous: $6.68B+3.5%

Revenue & EPS history

Cousins Properties · Revenue · Quarterly

$180M

Q2 2020+26.7%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Cousins Properties · $2.51M total across 2 segments · Q2 2022

  • Fee Income
    $2.31M
  • Other Revenues
    $201K

Forward guidance

Based on actual results to date as well as the Company’s current outlook, this previously provided information remains unchanged except for the following updates. All information covers full year 2020 results.

Tailwinds

  • The Company acquired a parking garage in Charlotte on May 4th that is anticipated to generate net operating income of $1.5 million to $2.0 million during the Company's ownership period in 2020.
  • Stabilized annual net operating income is anticipated to be $4.5 million to $5.0 million.
  • This acquisition was funded with cash on hand.
  • General and administrative expenses are anticipated to decline by an additional $1 million on top of the $3 million to $5 million decline announced last quarter.
  • The Company now anticipates full year general and administrative expenses of $27 million to $29 million, net of capitalized salaries, down 18% from its original range of $33 million to $35 million.

Headwinds

  • A decline in parking revenue is anticipated to reduce net operating income by $5.5 million to $9.5 million compared to a prior range of $3.5 million to $9.5 million due to a revised outlook on the duration of the pandemic.
  • Fee and other income is anticipated to decline by $2 million
  • Property level net operating income is anticipated to increase by $300,000 due to the previously disclosed Parsley Energy lease amendment at Colorado Tower being accounted for as a lease modification rather than a termination.
  • Due to uncertainty driven by the COVID-19 pandemic, the Company withdrew its earnings guidance in April 2020.
  • The impact of a public health crisis, including the COVID-19 pandemic, and the governmental and third party response to such a crisis, which may affect our key personnel, our tenants, and the costs of operating our assets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.4%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+9.7%

Q1 2010

Best reaction

-6.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.3%+4.0%+7.0%
Q4 2025-1.2%-10.8%-10.5%
Q3 2025+0.0%+0.7%+0.3%
Q1 2025+1.4%-0.4%+1.1%
Q4 2024+1.8%-0.7%-4.8%
Q3 2024+0.9%-1.4%+1.5%
Q2 2024+9.5%+9.3%+12.3%
Q1 2024-1.1%-0.8%-0.9%
Q4 2023+4.9%+8.7%+8.6%
Q3 2023+1.5%+1.5%+12.3%
Q2 2023+1.1%-0.8%-7.0%
Q1 2023+4.5%+0.5%-4.9%
Q4 2022+0.2%+1.2%-16.7%
Q3 2022+1.1%+0.5%+10.0%
Q2 2022+2.0%-0.9%-7.8%
Q1 2022-4.5%-4.3%-7.6%
Q4 2021-1.9%-1.9%+2.6%
Q3 2021+0.7%-0.5%-2.0%
Q2 2021+0.4%-0.8%-1.3%
Q1 2021+0.4%+1.0%+1.6%
Q4 2020-0.9%+0.6%+6.9%
Q3 2020+0.0%+2.4%+33.5%
Q2 2020+0.5%+1.6%-0.9%
Q1 2020-6.4%-8.8%+0.1%
Q4 2019-0.5%+0.8%-10.5%
Q3 2019+4.4%+4.1%+6.1%
Q2 2019-3.6%-2.8%-7.6%
Q1 2019+0.7%+0.9%-2.7%
Q4 2018+3.4%+2.9%+7.7%
Q3 2018+2.5%+2.1%+0.1%
Q2 2018+0.8%-1.7%-0.4%
Q1 2018+1.1%+4.2%+7.0%
Q4 2017-1.8%-0.2%+1.7%
Q3 2017-1.3%-1.8%-1.6%
Q2 2017+1.6%+5.9%+4.2%
Q1 2017+0.4%+0.1%+0.8%
Q4 2016-0.9%+0.2%-6.9%
Q3 2016-5.8%-7.1%+1.0%
Q2 2016-3.2%-1.6%-0.7%
Q1 2016-1.3%
Q4 2015-2.1%
Q3 2015+2.6%
Q2 2015+4.6%
Q1 2015+3.6%
Q4 2014+3.5%
Q3 2014-0.1%
Q2 2014-2.5%
Q1 2014+0.8%
Q4 2013+2.1%
Q3 2013+2.1%
Q2 2013-3.5%
Q1 2013-2.5%
Q4 2012+1.9%
Q3 2012+1.7%
Q2 2012+1.3%
Q1 2012-1.7%
Q4 2011-3.1%
Q3 2011+8.6%
Q2 2011-6.9%
Q1 2011-2.7%
Q4 2010-1.2%
Q3 2010-0.8%
Q2 2010-1.3%
Q1 2010+9.7%

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