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Mar 31, 2020
Cousins Properties Q1 2020 Earnings Report
Cousins Properties reported strong first quarter results despite the emerging COVID-19 pandemic and withdrew its full-year earnings guidance due to the related uncertainty.
Key Takeaways
Cousins Properties announced first quarter 2020 results, reporting a net income of $1.18 per share and FFO of $0.76 per share. Same property net operating income on a cash basis increased 11.4%. Due to the uncertainty driven by the COVID-19 pandemic, the Company is withdrawing its previous 2020 earnings guidance.
Net income per share diluted was $1.18.
Funds from operations per share was $0.76.
Same property net operating income on a cash basis increased 11.4%.
Second generation net rent per square foot on a cash basis increased 14.3%.
Cousins Properties
Cousins Properties
Cousins Properties Revenue by Segment
Revenue by Segment
Rental Property Revenue
CapyFin.comFee Income Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Due to uncertainty driven by the COVID-19 pandemic, the Company is withdrawing its previous 2020 earnings guidance. However, the Company is providing additional financial information, some of which is related to the effects of COVID-19 and some of which is not, to assist investors as they assess the Company’s outlook for the balance of 2020.
Positive Outlook
- An elimination of all remaining speculative leasing commencements for the balance of the year may reduce net operating income by approximately $1.5 million.
- Rent deferrals may reduce net operating income by $1 million to $3 million.
- A reduction in parking revenue may reduce net operating income by $3.5 million to $9.5 million.
- General and administrative expenses may decrease by $3 million to $5 million due to lower long-term compensation and other potential non-compensation cost reduction measures.
- Interest and other expense, net of capitalized interest, may decrease by $2 million to $4 million primarily due to lower short-term interest rates.
Challenges Ahead
- Elimination of speculative leasing may reduce NOI by $1.5 million
- Rent deferrals may reduce NOI by $1-3 million
- Reduction in parking revenue may reduce NOI by $3.5-9.5 million
- Transition of Parsley Energy space will reduce NOI by $1 million
- Guidance excludes potential property operating expense increases/decreases, rent deferral relief impacts beyond those referenced, and customer defaults.
Revenue & Expenses
Visualization of income flow from segment revenue to net income