Cousins Properties (CUZ) Financials

Positive trends for Cousins Properties (NYSE:CUZ) over the past four years include:

• The company has consistently maintained positive consolidated net income each quarter, with occasional fluctuations but a positive trend in Q1 2025 showing $21.1 million net income attributable to common shareholders, compared to prior quarters.
• Diluted earnings per share have remained positive, with a notable increase from approximately $0.05-$0.15 range in 2023 and 2024 to $0.12 in Q1 2025 despite challenging quarters.
• Total common equity has grown from roughly $4.6 billion in early 2023 to over $4.8 billion in Q1 2025, showing strengthening shareholder equity.
• Operating cash flow remains robust; net cash from continuing operating activities in Q1 2025 was $44.7 million, showing decent cash generation despite net losses in some quarters.
• The company continues to invest in premises and equipment, with net property and equipment increasing from about $7 billion in early 2023 to nearly $7.9 billion in Q1 2025, indicating ongoing growth or asset reinvestment.
• Cash dividends per common share have been consistently maintained at $0.32 per quarter, reflecting stable shareholder return policies.

Neutral observations impacting the company’s financials:

• Trading account securities value fluctuates between $100 million and $190 million, suggesting an active but variable investment portfolio.
• The company’s balance sheet shows a manageable level of long-term debt with a gradual increase from approximately $2.44 billion in early 2023 to around $3.02 billion in Q1 2025.
• Changes in shares outstanding have increased moderately over time from about 151 million to 168 million, which could slightly dilute earnings but supports capital needs.
• Other equity adjustments are negative consistently, in the -$1.0 billion to -$1.3 billion range, which does not change materially quarter to quarter.

Negative financial trends and risks to consider:

• Several quarters over the last two years show significant net losses from continuing operations, such as Q1 and Q2 2024 with losses over $200 million, impacting overall profitability.
• Total pre-tax income turned negative in recent quarters (e.g., Q1 2025: -$227 million), driven partly by rising non-interest expenses including depreciation, which increased to $102 million in Q1 2025.
• Operating expenses (net occupancy and equipment expenses, other operating expenses) have trended upward, with Q1 2025 totals nearing $125 million, increasing pressure on margins.
• Significant fluctuations in net cash from continuing financing activities, including large debt repayments exceeding new debt issuance in some periods, which may impact liquidity and financial flexibility.
• The company’s net change in cash and equivalents has generally been small or negative, suggesting limited increases in liquidity buffers in recent quarters.

Summary: Cousins Properties has shown resilience in maintaining positive shareholder equity and consistent dividend payments amid a mixed profitability profile and rising expenses. The company’s investments in premises and equipment signal a focus on growth, but recent quarters’ losses and elevated non-interest expenses are points of concern. Retail investors should watch upcoming earnings for signs of expense control and improved profitability while considering the manageable but growing debt load and stable cash flow from operations.