Cousins Properties: 2Q FFO Beat JPM e, Small Raise – Again; Strong Leasing Quarter, And Dispositions Funding All Of 300 South Tryon

Research evidence excerpt

Cousins Properties: 2Q FFO Beat JPM e, Small Raise – Again; Strong Leasing Quarter, And Dispositions Funding All Of 300 South Tryon

J P M O R G A N North America Equity Research

30 July 2026

Cousins Properties

2Q FFO Beat JPMe, Small Raise – Again; Strong Overweight

Leasing Quarter, And Dispositions Funding All Of 300 CUZ, CUZ US

South Tryon Price (30 Jul 26):$31.93

REITs & Real Estate Services

CUZ reported 2Q26 FFO/share of $0.75 (+8.3% y/y), which was a penny ahead our Anthony Paolone, CFA AC

estimate and Bloomberg consensus – both at $0.74. The variance came from (1-212) 622-6682

slightly higher NOI and fee income. During the quarter, it executed 924k sf of anthony.paolone@jpmorgan.com

leasing with rent spreads of +9.2%/+26.8% on cash/GAAP basis (vs. JPMe of +9/ Michael W. Mueller, CFA

+24%). Occupancy was up 50bps sequentially to 89.4%, better than JPMe of (1-212) 622-6689

89.0% (up 10bps). Leasing cap ex was $94.22/sf (vs. JPMe of $72.60/sf). We michael.w.mueller@jpmorgan.com

would characterize this as another strong leasing quarter and put 1H total leasing Nahom Tesfazghi

at over 1.8 million sf, or about 8% of the portfolio. Granted, some of this leasing (1-212) 622 4884

nahom.tesfazghi@jpmchase.com

will commence in future quarters/years, but this points to it progressing well

Daniella De Armas Rosales

toward its 90%+ occupancy goal at the end of the year. (1-212) 622-0050

daniella.dearmasrosales@jpmchase.com

The company remained active on the capital recycling front with dispositions both J.P. Morgan Securities LLC

during and after the quarter and some investments as well – all described below.

We still think that CUZ has the opportunity to make further investments that are

accretive and can help drive growth into 2027, and at this point the completed and