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, versus $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 that owns what it calls lifestyle office buildings in Sun Belt markets, with a focus on Austin, Atlanta, Charlotte, Tampa, Phoenix, Dallas and Nashville. It reported third quarter results for the period ended September 30, 2026. Funds from operations were $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 were $259.4 million, up from $248.3 million, which is growth 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 was $176.2 million, up from $165.9 million, and same property NOI for consolidated properties and the company's share of unconsolidated properties increased 3.3%.

The company leased 546,000 square feet of office space in the quarter, including 220,000 square feet of new and expansion leases, or 40.3% of activity. Straight-line net rent per square foot rose 31.9% on spaces that had been under Lease within the past year.

For the nine months, FFO was $2.23 per share versus $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 recorded a $36.6 million Impairment on that property, which is why nine month Net Income available to common stockholders was only $18.3 million versus $44.0 million.

On July 17, 2026, it 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 for 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 repaid 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 with $1.1 billion of borrowing capacity, alongside $5.2 million of cash. The facility was recast on April 1, 2026 to $1.2 billion with Maturity extended 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, citing migration into the Sun Belt and a flight to quality among tenants.

Readers will likely follow whether leasing spreads stay near 31.9%, whether interest expense continues to rise and how the Austin and Dallas projects progress.