CUZ - Earnings call transcript Q4 2017 | Cousins Properties Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Cousins Properties Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Pam Roper. Please go ahead.

Pam Roper

to fourth welcome call. earnings and morning, Cousins quarter Properties’ conference Good Officer; our me our our Colin Operating Gellerstedt, are President Gregg and Chief With Larry Officer; Chairman today Financial Chief Officer. Chief Executive and and Adzema, Connolly, made and Page Investor website afternoon were our furnished as on as the The press well package on available release yesterday supplemental Relations of Form X-K. directly with the company financial the most non-GAAP Reg has measures accordance in requirement. all package, comparable reconciled supplemental measures the In G GAAP to certain today discussed that forward-looking constitute federal the risks laws, within factors. and aware due differ results and statements be Please statements other of matters securities may of a these materially meaning variety from uncertainties to and may actual whether otherwise. result events as information, future The new a to does company undertake statements any of or not duty forward-looking update any full our forward-looking regarding issued is and a the is potential with discussion in filings contained the yesterday, available risks declaration The some of detailed in press release statements SEC. the Larry call With that, over I’ll Gellerstedt. to turn

Larry Gellerstedt

Thanks, post the completing Parkway. the ourselves same everybody. Pam, resulting earnings per After just transaction all Cousins’ in team we exceptionally for transformative we XX progress for for the on of outlined XXXX milestone the history year significant ambitious strong performed and share, on fronts marked ago, most year. Cousins. the another At in good months time, $X.XX morning, made business plan

footprint in Philadelphia, closing Downtown $X.X for and completed set we positioned Miami the dispositions, refine markets portfolio and to the out in exiting we First, geographic that our billion merger, our Since Atlanta. are and we optimize submarkets growth. long-term best Orlando, believe operating

Downtown best-located five ventures, Austin, A some operates most created in equity of Buckhead our highly submarkets. markets, and submarket interest number the Charlotte, also the most of of Atlanta and markets landlord on in Class a grew Effectively, presence attractive have Uptown the office amenitized We which we focus Tempe in one with office dominant portfolios. the in Phoenix concentrations a Westshore. Tempe Cousins building the space is in two where Tampa’s and Buckhead remaining joint now core purchased Atlanta,

unlocking with more renewal the Today, square to leased. a highlight, portfolio the closing X% X.X X.X embedded square portfolio completed team leases Tempe, than and merger. the vacant office team has is and XX% million the leased, rents than in XXXX of to portfolio at Tampa our million leased. for feet X% approximately million of Collectively, XX% the is foot have began new that rents completed same In now market. same space feet X of account the on growth terminations from in less focused the space since team backfilled of enrolling leasing explorations lease which since collected the in XX% more portfolio. we XXX% Today, To than of activity we of At time, million near-term strategic our XX%. the fees up inflation Next, the $X rolling increased up rents square than more merger. team portfolio

equity placement. the mitigating comments, of to sources saw balance short, capital available in us, Gregg product utilized the aggressively sales sheet and successful debt effectively deleveraging give near-term variety to his wide specifics and more asset we we Lastly, a enhance – in including maturities. by will issuance a and but issue

better of I positioned. increasing billion. XXXX credit no our further by facility sheet time been Cousins we $X can extending that financial unsecured to and position strengthened at say balance confidence with addition, In our January in

our shareholders. for outlook optimistic. Cousins I value forward, company the positioned believe Looking continue is to create very we’ve extremely to my well for

leased. portfolio office trophy Our well is

sheet important, talented team new and is and for is lease near-term Cousins have explorations, our opportunities. modest looking deep have balance a investment Equally strong. We

we but have to strategic always market, are we the we portfolio pullback the compelling. in advantage for list acquisitions, past, a pricing a opportunity. and existing a of liquidity the take the assets though, current in said assets than be found I’ve Rest to see of like that new and assured less have As if we generally to evaluating environment we own asset would

While the cycle, where platform acquisition time that’s our limited activity remains this development in at shines. the

Square more XXXX, XX We month, and we projects our Carolina. value Cousins opened Hill in And XXXX of For no through NCR’s just in X development global Midtown Atlanta. Avalon than experience, exception. headquarters incredible in years has North and new in two development is Atlanta shareholders delivered for created Carolina Phase of last Chapel today

addition, construction place dimensional second Both the NCR XXXX. the will of end on are project, In the currently at development in Charlotte. our of phase we under and deliver

Colorado to year with of expand. continue with team Trinity, Tower replenish Decatur the development XXX% customer the commencement our submarket in with development recently our at also preleased pipeline project last mixed-use with our Austin. Parsley West most XXX XXX Energy, Downtown, a office need approached our AMLI Atlanta, We to Colorado, in and

Our at X.X could Austin not space their XX% square million needs. leased foot portfolio accommodate

to went we So work.

an where development and XXX,XXX XXX,XXX square result, begin office We’ve foot in then entered feet. to the today million to from on across our a into projected Parsley control tower. who new Construction the site team build with $XXX identified XXX the joint developers, December. Colorado the occupies exceptional street As local XX-XX site is a Colorado Tower venture building,

for for of highlights ground to also the the financial opportunity our for even activity. positioning overtime our surfaces We the Parsley development strengthen land the project As or while cycle, plan with of our sides to highlights Colin? be site best further we dive option our a the in we With next Colin for Parsley that, be the the guidance portfolio to side and year Gregg control into investing business. first this close sites in cycle. markets, the bank amenitized with deep call success XXXX. Cousins armed during NCR recent turn other then performance over the land Therefore, review and is prime earnings high-quality highly to our I’ll by will initial target. with the in critical transaction want a submarkets

Colin Connolly

and good Larry, our performance, of delivered another of including markets. Cousins each The team notable exceptional strong Thanks, everyone. Sunbelt wins quarter in morning,

Before update on I’ll give on recent of highlights the the I elaborate market’s by an collective activity, quarterly and recognizing start each company’s achievements.

During cycle. the of this quarter, XXX,XXX new executed square Cousins’ renewal marks team which leasing feet fourth of the third quarter leases, performance best and

XXX In Colorado Parsley vacancies Austin, some across addition portfolio, we to renewals Energy new key while lease at the the and and expansions. feel completing with

period cash our effective weighted X.X% growth quarter XXXX. $XX.XX, over was rent which the straight for fourth Second average Equally XX in generation quarter XX.X% GAAP a on on basis. in positive important, net the a rents up a the net increase basis posted was XX% same and

Our Parsley quarter, since larger and lease, net highest job we for our was still we amenitized to in experienced weighted was rental XX% XXX,XXX me signs up rent our fuels A conditions. switch affordable that, markets. rents market growth, Atlanta, at target, Parsley softening fourth Class we At Energy average contributor fourth even of rate environment with the lease square increases record key this to X% office Austin cycle. the on The this demand With the excluding gears let relative hitting XXXX. the a immediate premium effective population impressive of to and submarkets over In see business-friendly Even foot growth. quarter bottom XXXX. increasing asking in have citied space. the the talented climbed workforce outside and highly no

compared the now rents in For foot office products low in the to to Buckhead suburban asking example, Class XX% are A trophy or premium market. square $XX over Class for A mid XX%, gross and

now last in On no are marketed most significant square in for office construction market. $XXX the Only activity notable Florida XX% the Atlanta sold the delivers month supply area, project cycle a plan Atlanta record center at tower, side, the just State a XXXX remains average. well is pension estimated over leased underway. speculative historical office new a Buckhead for few the new square around this in an XXX,XXX projects aligned being below The foot, and foot

Cousins in product, XX% billion January, year-end. owned at current our market, the we first opened was foot the like Cousins of leased phase office the fundamentals, Given in headquarters of square position NCR which which project trophy including X.X

feet in Morgan feet feet Buckhead, XXX Our team solid results, approximately square work a quarter XXX,XXX Terminus renewal executing leasing by now we another taking and new and leases. square at another a square terrific of posted XX,XXX Atlanta where full total new XXX,XXX leasing square floors expanded feet. XX,XXX Stanley captured were for executed of wins Notable lease two

we approximately Over I report as most that expected few attractive On will to concrete its tops proximity MARTA last and and a recent this of leased occupancy full but vacating in the space move as previously this our the will last can remaining note, October. the feet as The to of to with nothing you asset, Perimeter Northpark of circle, square new attractive major weeks. XX,XXX the location of highways. November, team foot our no Over the space have As taken over occupancy week this team had quarter Northpark square percent and downtime. XXX,XXX square CBRE access some Terminus has block had XXXX. Bain down XXX,XXX feel in Austin, for move at regarding requirements in vacancy, square XXX,XXX momentum, has the key Central Atlanta I optimistic combined to and with lease to submarket, XXXX. the to May I headquarters feet the the given tipped into began list disclosed, its slated option of WestRock direct is marketing actively in large due minimal backfill up out feet tell with positive wins

public to to this lobby most addition the very and during month, opened ago of restaurants weeks dinner. praise anticipated one happy project opening team Eleven, In the and an an received local high at the XXXX. incorporated few press new for Congress. States food In openings for United modernize space project, activate Colorado hour the in the at project, and has features One a fairground named which last the Eleven plaza the the And effort just which all, the our One six lunch, in upscale has XX of team to XXX Zagat

the office where fundamentals enhance for Eleven will fairground the over the our increased wide is XX% Austin, We remain dipped are annual and rental Charlotte recorded XXXX across of property Similar year-over-year. well and at to rates the confident One to very directly Jacinto customers to that vacancy market as market In since owns the Charlotte’s X.X Uptown million submarket, solid. to net office CBRE absorption XXXX, Cousins the According feet X.X%. square highest Plaza, our San customers experience at the street. addition which Congress as project

As previous leasing XX% in material I remain now explorations we the pace pre encouraged the during no With year, leased. XXXX are elevated, expected. and office activity as construction being quarters, but occupancy by XX% mentioned of light our new Charlotte was in during observed slightly averaging over portfolio

with the its company XXXX late Bank renewal However, Center. the win huge Fifth in now the to leased. transaction Third a XXXX. America square the quarter, of expansion extended team at lease Center Third and fourth is America’s and XX% to The expanded Fifth maturity for from produced Bank XXX,XXX of feet with

Dimensional into one at team large Fifth the considered build-to-suit end XXXX, Place. in vacancy foot they Uptown, Dimensional project below attractive as this a reminder, XX,XXX block approximately at The Charlotte Center Third their Charlotte Advisors as a rents X% great As are Four at vacate the and and is move opportunity when sees market. Two blocks space Fund of will new the square our of most

the generating team. historically square we’ve rents the Moving submarket, These have A tailwinds cycle. down leasing is where growth located. in the Tampa. Metrowide, positive Tampa has Cousins rates activity dropped the market portfolio X%, one to experiencing X% year projects this nation. the are healthy foot compared of broken has have highest and into for cycle. X.X vacancy office In translated million Tampa new ground this the fundamentals a and best office the seen office asking Real estate rent Westshore grown vacancy Class to low ago

square fourth During the feet XX,XXX we signed for quarter, the XXX,XXX of another square for of total leases year. feet a

gave Laser we on Harborview feet previous disclosed XX,XXX end or be the Institute square January. their As of at back give calls, will at back Spine

approximately and and something our large few have Westshore submarket, optimistic in continues the the available of announced the we grow Closing team one in Phoenix phase new we executing our As renewal in interest, of feet XXXX, this to another quarter very XX,XXX square our blocks posted leases. coming feel in fantastic quarters. will

continues campus, Second square fourth conservative outperform. surprise basis state on This generation comes XX% forms more the square And a State’s is whole and our the history. Annual releasing X strength in million market the portfolio quarter. up million growth, for remain where is $XXX the which submarket in located as Phoenix to totaled feet as the Phoenix portfolio Cousins square foot, located cash no to Tempe over than a start million for sale feet Cousins of let high interestingly, limited. in building in absorption supply a Tempe, In year. square X adjacent X.X the continues fourth sold to largest

double-digit trend cash At result, in XXXX, during vacancy highs. year-end, levels a As within XX% Tempe escalated spreads was historic quarter. also while declined rates Cousins portfolio to the This fourth releasing portfolio. further our with rental is leased evident

a you would our recent like activity. take update on to transaction I to Finally, moment

we fourth quarter. during successfully and disclosed, As Cousins the previously Orlando Miami exited

First, venture a Courvoisier interest interest $XX.X valuing in we our asset Centre in our million. at Miami partner equity our soul XX% sold transaction joint

we our Next, completed Orlando. exit from

Our quality remarkable of amount Orlando X million tool, marketing the attention deep during square from Center buyers was of portfolio America Citrus Center, process. of received and Bank Center Orlando consisted a a foot

the a purchase gross transaction million. pleased three over call single that, we of result, a Greg. price With with portfolio the $XXX.X to a Selling and were As extremely outcome. the turn I’ll for asset

Gregg Adzema

and morning, performance. on capital introductory by its overview my move our everyone. an activity our XXXX before Good to financial providing Colin. impact I’ll my begin our Thanks, balance I’ll our including with remarks same markets on closing sheet, results, property guidance. earnings Then remarks of

from As was Larry share tell was Net FFO had it could remarks, per quarter. $X.XX terrific simple it was you and was we clean, fourth $X.XX Colin’s strong. share. It a and and income was per

portfolio property well, the These well markets. Legacy X.X% portfolio. numbers of where well. cash to quality continued that our to year-over-year solid are underlying NOI basis, was the as urban for Cousins Sunbelt properties on and continue Property same up for do X.X% the like NOI We do our we strength a the the reflects Parkway of as

way occupancy out WestRock by a occupancy them noticed property earlier. driven year-over-year. by several XX% comprised return relocating the same Northpark was we us discussed You by over approximately solely This as X.X% our may WestRock lease by that third declined on our asset, basis out, that same year portfolio. have some moved Cousins about past tenants the declined Colin square-foot finishes Once Northpark of in to this of proactively to property moved make a which XX%. to for spring, Northpark anticipate Northpark’s to Occupancy

for breakout property in increase entire quarter increased past fourth growth rent portfolios. for these Northpark portfolio will property the year, the in two same the Over property last absorbed a and be to rents reporting X.X% X.X% strong led quarter. year-over-year the we in This revenues and our than decline same more in-placed This occupancy X.X% our portfolio. in same

same XX% performance. excluding portfolio, Going will represent which providing Legacy NOI, total properties capital through properties in markets With look move of level our our our on be meaningful comprehensive Parkway property activity will to over a our our property the sheet. that, balance in included forward, to let’s development

quarter. a of to strategy the terms on the validation financial strength. an believe package. these and fourth properties during of of property improving As Colin sold facility, interest proceeds in credit the obtain billion end, our our we $X $XXX million I three and unsecured and quarter gross our ability Subsequent this to the size stated we fourth our endorsement pricing venture thorough covenant mainstreaming recashed a while the earlier, increasing joint to facility is

year-end $X had of million our XXXX, nothing billion and on balance drawn cash in facility on new the $XXX As sheet. over we

Our fixed net X average our coverage debt-to-EBITDA on ratio was debt charge rate weighted our was X.XX%. was The ratio X.XX times, interest and times.

of ratio this solid below our I’ll the today By Our X.X until a FFO up A this debt tenant providing strategy. a is rock outstanding, since few phenomena. we XXXX. weighted significance financial conservative comments a XXXX maturity balance we a core sheet. of although beginning wrap debt-to-EBITDA times With maturities X.X sheet by any current balance our was and no average metrics, any is flexibility And years, is the into of had details recent behind guidance. maintained very exceptions, net our XXXX. my is

unconsolidated begin, I XX is include in Pages supplement, located all Before I’d means, This own consolidated GAAP each Instead, aligned line I along of our presentation our supplement. don’t financial in case XX with assumption. with as since through with operations will we current we our like data remind that data everyone FFO breakout earnings the unconsolidated to assumptions for their on item provide statement. the

we to our driven release, which following As earnings expect $X.XX This is in range are guidance per outlined share of in on the the per of share. an basis. $X.XX FFO annual we XXXX all by provided assumptions

anticipate we X% between year-over-year basis a basis. and a and of X% positive GAAP cash growth X.X% between same X.X% of on NOI property First, on

Moving on, $XX between $XX we income anticipate fee million. million of and and other

other administrative receive termination any million guidance. termination this net and $XX not We between $XX of we of have included of level expenses included million expenses in this property we not clarity, We capitalized time, are and of general salaries. net We fees interest. million, For interest our include $XX anticipate between in $XX line them NOI. fees capitalized XXXX and million, item. in and anticipate any do At

in provided. transactions already any This of of and say assumed Page acquisitions, guidance supplement. no we not includes us new those any but won’t property or none disclosed guidance we in on complete XXXX, have XX these no the is current dispositions XXXX the Our developments underway except

when these necessary. assumptions update its will and We

million below of million and of and above we rental GAAP rental million. $XX.X $X.X $XX.X between Finally, market million and revenues and between $X.X line anticipate straight revenues

As you in we can operating anticipate remain metrics core our tell from solid assumptions, these XXXX. to

asking FFO midpoint share XXXX is is at of per driven by why XXXX may the you be two So yourselves, items. the our guidance. same as This

termination over First, we are none and fees in million assuming we $XX recognized in in XXXX. XXXX,

Second, we’ve balance me With the proactively the back operator. earnings. exit that, to call over let sheet, to and decided it the significantly this impacts Miami while also Orlando turn and delivers

Operator

Lynch. question America will [Operator Instructions] The of first Bank We go Please begin ahead. now question-and-answer from Merrill James come the Feldman session. will of

James Feldman

morning. good more and you you XXXX Thank even you looking markets? end can expecting Great. What hope the of where to or do whether Just are growth are give across across guys rent I ahead? you a year-over-year markets? you your major year the

Colin Connolly

Jamie, range of continues to into X.X% Sunbelt to our all from, year-over-year dive have of the it’s growth some it, Charlotte has the moderated X%. to markets. rent really Colin. solid that led I across end want say, If would way, I that of look the be a bit. Austin, of, just anywhere we seen Rent over at across call and range. upper has growth the kind really specifics,

a three but other kind X%. and it we’ve today markets still And of kind our gotten X.X% year-over-year. of and trends, around As right call it’s higher all Phoenix have then normal Atlanta, Tampa been

our speculative rental to to little driven year, As solid see construction. good we that’s really we very demand, do mentioned in look steady continue to opportunity prepared push coming forward we see rates, to the we as remarks, and – by a this and continue

James Feldman

there? on it’s what Or – any front? then or increase pretty Is concession fairly And about Okay. consistent? decrease the there

Colin Connolly

statement, order would a kind continuing stayed flat steady, and decrease they’ve pretty what actually, I trends that’s down seen coming have in down from our some of of rents as perspective. whole to just cases to we been whether quarter at the push ability of do in of Jamie, in It general the slightly every look we be free and or TIs this touch say, kind kind touch to have landlord come that

James Feldman

to in your you from Cousins me. maybe on that? should WeWork expect how talk in dynamics how react and co-working, with Atlantic Okay. And your WeWork – then we finally thoughts changing about And to Behind see leases just much the market? they’re can

Larry Gellerstedt

Jamie, is Larry. Sure. this

the component in. is but on to We company, house amount more that office view WeWork and And right talking opportunity of And we growing is week an folks, of for and works location a thing go are We an time to how a do And overall the of about our view by we more not it board fact say looking are some – really to by type in perfect as approach or and huge we portfolio. of building as co-working It’s this come right that we amount the thinking And lot everywhere. customers our flexible our are the that additive right of our of on co-working it it’s to operators that basis. We deal we’ll and in I Terminus. building, their the have is our our spaces co-working think to and – think pleased the with there that portfolio. level. across to don’t it’s first space doing amenity various amount of spent significant a would had a Terminus building are portfolios the flexible think in potential have corporations workers our looking other for terms portfolio. other to it. submarket lot that a is customers, our with growing important a that submarket matter at is But to is basis, location meeting we percentage

like insurance base a more whether our being it use have spaces the between customer it’s allowing we The that. things amenity to way that on customers manage flexible we concentration or spaces and and of is different space folks submarket is want that’s needs the meeting other all to allowing pushing if at in one buildings ourselves to comp additional leased the benefits a parking push in fun number or thing, or have than to of other able in our us we least whether space, lot us had our buildings just doing marketing show or of to we key centers

So don’t know we you been have our an some of of part certainly, Colin, color we And what if it’s to. have of I that may you discussions. – ongoing active how – much have

Colin Connolly

hope spend spaces, getting in industrialist co-working, I do really continue Yes. know we add specific Jamie, of We a with a there with customers is the universe terms small of that think typically of or organizations. I to to Terminus. allow and lot in we would to time the I is transaction think them – individuals feet aren’t XXXX just look WeWork at access WeWork deal Terminus or to feet underlying going to as broader business some of leasing, XXX to

as – So and is be to potential stature I for And aggregate as profile, that think portfolio at be positive. building, view we build office to going like around could think it particular of co-working continue add a and positive at some are rent to takers be otherwise we we opportunities other Terminus – trophy office to the those it who we space building in look work it’s as mentioned, looking Larry can’t assets.

executive As the today, co-working our bit we suites, total. under about would square XXX,XXX traditional for a kind portfolio, X% feet of sit of account little our of

amount, really overtime. a grow would that marginally think one still but modest So and relatively we

James Feldman

you. I Thank Okay. appreciate color.

Operator

Please will go of question Guinee Stifel. ahead. come next The John from

John Guinee

town. already the out in in guess, appears portfolio from they I but are Larry, Great, not existing tenants market, they world, it of are build-to-suit that your the come to thank from where coming me the you. portfolio, your either in

at employees probably fairly little down have For about Sunbelt half their York moving land XX, your inventory looking significantly. example, cities one of of into Page I’m City soon, guys and you New AllianceBernstein your

to the you appropriate have kind build You have is build-to-suit now, inventory? land need to of which more do on land you any or expect for

Larry Gellerstedt

take portfolio. both. I’ll have our It’s do question. same We a yes, would great land that. John, I existing in And to

North type in very my right For site XX,XXX it’s in of a mentioned inquiries highlight of focused own have build-to-suit do we key we have inquiries. are submarket and types have out lot in lot on Avalon said, Avalon and that whether interest We a not in sure we that But Dallas or project, the cycle. got certainly right it with these the the making through is, the building that of a victory going of second gets instance, you it’s we predevelopment on thing I in reason, that get or those for that the building we now Atlanta. Hines, next available, remarks

And we so inventory core keep the the land said, X% to we we we consider have, want sort of forward. that to but land the land below we don’t level, some X% well we overall move are and of is

So we sites in on, having. that, have focused XXXX I we do on are the have that we’ll focused and been anticipate been acquiring given some and discussions

these for open key up bit. opportunities let the bit the a and And see us quarters optimistic And progress of little so. began some big a there in prices, a just of some major seen will have or in land to I’m that out We and focus. as apartment some next the at has cycles out you that’s to couple submarkets it’s us make take

John Guinee

you. Thank Great.

Operator

of Rodgers question Dave next ahead. Baird. from Please will come go The

Dave Rodgers

one well the noticed details of Colin, or side? six over so absorption is reflected leasing months trends any recent little the months suburb morning. additional Are XXXX or of in eight that questions. general and last you which January slowdown two or the you I office And the any as it’s be in ground? to that AIG, ask on feeling in wanted kind Atlanta? May Atlanta, a Good of employment just just exploration? bit on As in in

Colin Connolly

square exploration submarket. the Buckhead they the market. XXXX They And also out your in early They as at are look little Central to relates first at in they to Northpark. as it you us are at continuing with Taking feet Perimeter. are AIG, the question over looking mentioned are XXX,XXX

do It’s So AIG. where about of conversation in will we to our as be. terms and get portfolio we Central are we a that see sense – direction in the critical think find a a that the little options trophy having they Northpark again with bit mass that we offering kind we overall them think as premature actively engaged attractive. in we Buckhead in MARTA. But that flexibility of auction Atlanta, their various excited in a will we’re adjacent to Perimeter have about well of got ultimate We’ve

So that. after we’re keep going to

that It back to be at focused like is just that. with quality on competitive assets to and it. whole. looking process, will have of Atlanta would Stepping compete a a we but We’re the we

XXXX as Perimeter and we as look with leasing perform and years. is encouraged are they that continues busy well. across Midtown Buckhead, active to have kind the interest very very, widespread is been really interest to forward And We customer Central of there yesterday, in our team

So level as – well. to high is any for continuing with very future. I deliver the And We a market we��re enthusiastic. really positioned that the will think speculative it’s foreseeable without construction all for – at mentioned, is

Larry Gellerstedt

at strong for or actually ago. prospects is others. cities this the pipeline will Dave, as it been chamber of the longer The than today two well. of relative to is the When XX the Larry. incoming those Metro months I or with just to other countries sort from sort pipeline and activities Atlanta And add my years look And was I it’s level, XX Atlanta. just at of Metro

seeing we’re think in I employment So reflected the those numbers trends.

this in prospects our leasing feeling are the at or not pipeline of quality the quality that of We point. terms of

Dave Rodgers

could I just color. sales. follow-up, Great. that if on then fund And asset Thanks maybe a for

had you you bottom call like on years? Miami view probably position that this not annually out really you the do over of want Or in in is couple feel just the to of lay, point of given You do of XX% clearly aggressive kind kind And you at kind something the radar all portfolio? still the of nature Orlando time? performed and where this of last

Larry Gellerstedt

we and unless couldn’t sitting are any those I we markets are make our – last done of sidelines but in sense. Well, right opportunity our done. year be to now. been sitting like with $X optimistic the the anticipate a that’s built we the sales amount we sales dispositions to that on in Parkway. market find We just year had capital unique on this now. of portfolio, having the been up makes the the bullish we’ve vis-a-vis more We portfolio right want really we grading there billion But have great order note, But always have don’t hand any us that aggressive because we into

Dave Rodgers

Great. Thank you.

Operator

of question will come go Regan Jed next from The Please Advisors. Green Street ahead.

Jed Regan

potential recent Good maybe development morning. I given is two little likely still or now? how and better more pipeline mind know, you recent active curious one tax economic the – quarters, to expecting new for Is reform know deal I’m of advanced the Given are a in developments age maybe of that cycle? and signals, you just more frame? said you kind looking your I your right

Larry Gellerstedt

very and existing is where be maybe the our on we do a has with with pipeline our we we preleasing with build-to-suits the remain start with disciplined to of want potential see the I’ll at Having might remain and do to a there I talked make portfolio Jed, just as strategy gate We certainly compelled and think would that fine customers, discipline. clearly such going. we just those have other conversations that will to We now primarily a feel those we to we’ve they previous – right that we look start will where be value to grow I said give having I there really development similar the see do one. – significant have great customers. focused to that customers some basis able some with – of where opportunities we open needs don’t been We – like our and ready to with right do that shareholders, delivered been that spec or on existing being cycle. we existing this on of point we discussions commitments is us just the in, of a that existing calls out to build-to-suit customers on customers, that, coming in see top of think, nature a to something something able and in market just certainly be either amount some preleasing. get

Jed Regan

this development what’s sense yield maybe it. you entire us helpful. build-to-suit? your Can That’s your give Or I of cash point? new at for Austin pipeline yield active Okay. a expectations appreciate projected for the

Colin Connolly

Colin. Jed, it’s

– said ourselves pipeline we eight. look are we’ve development you past, today, yields any across the don’t in put disadvantage But our certainly including of want deals As GAAP specific to entirety XXX the want careful across – as our a targeting Colorado one. next competitive be certainly the to to we kind Northern of chase as we the

Jed Regan

a to And you helpful. do lease being and that related Colorado end is could Parsley’s Tower situation That’s indication Okay. I up that, an expiring have guess, when sublease there?

Colin Connolly

some the current to Colorado Their been addition have And are until close basis doesn’t this them don’t. the space. truly They space Austin think relationship XXXX – and at we taking a of project Colorado a company. some they the delivering. expire but short-term I kind have with expansion at already adjacent very bridge on in in market XXX space to looking We building Tower to

So that’s it’s a very company growth. experienced rapid

As Tower Colorado cap billion. their $X into over of a in balance it was so the low Today, sheet. kind $X they very stands project, and about market equity billion leveraged came

think then excited it long-term a that expansion space. the So this a and have across And space needs company Colorado I facing to street. have this is directly is new Tower

Larry Gellerstedt

I that. thing Jed, one would just say on quick

go with another decisions team, where had requirement. us this building. doing strong continue this Austin our to to of fulfill basically is for Cousins, do We the pause local their a site post-speculative teams. to they to six in months operating power the example, mutually this acceptable And space enjoyed doing business developments talk has go allow with with about find business market to local enjoyed Parsley options And our

beyond of example numbers just not the is space, built the that. part, of customer great sometimes showing providing the Parsley excitement a so the is And and most to value but important just on we they buildings the which environment see miss

Jed Regan

any one markets on deal. your minus in last pricing the Maybe Sure. recently Congratulations changes plus environment quickly from either asset or seen side. me. on across Have you

Larry Gellerstedt

Jed, was – a quarter. mentioned, was capital, foreign. in And wide half we interest The obviously of process and coming fourth from in institutional of sale that domestic robust. we’re kind we sources level of variety deep in have the of as and Orlando was the

that and so in pricing steady. And a has very firm remained

capital to the a there too whole think will events – looking I the recent is note over kind private the any would early last lot prices. two or of to looking But is speculate sidelines on have I the still impact that to projects asset of on private right for far week invest.

wouldn’t anticipate any meaningful I in changes pricing. So short-term

Jed Regan

That make sense. All right. Thank you much. so

Operator

from One question Chris Capital come go Securities. Instructions] of will ahead. [Operator Lucas The Please next

Chris Lucas

Good morning, everybody.

Just a me. for quick question

about different provided allocate that to your limitations was of form As your or your to would of sort may to those thinking how Tower whether markets things you to well, be about bank? curious build from as different to local And how how make impact markets. markets related in bill the capital state your look thinking decisions are you that into markets? didn’t as allocation those guys impact recent has cut capital the that made how XX just factor building and allocation sort tax I the you’re item other and land the bank that it tax your on the list migration? land feedback to an And Amazon whether

Larry Gellerstedt

Larry Gellerstedt. is this Chris,

the do to that say. be careful Amazon what I’m a do effort, But think agreement confidentiality because leave I have is Amazon, the Atlanta have representative terms to I allowed On in and I of that markets cities or us of are then list. Colorado are that at we at act that market. were early cities on the if the the And under we going consideration, three look you core for helping

the education in and focus Amazon’s level highly Sunbelt advantage common of been on that to quality cost is driver additional complementary I submarkets to it’s living a having of with is that. the of Certainly, very a has urban addition to of of is tax in to we decision really don’t in future higher growth. themes terms markets Where color the the that we see talent have life terms and these name prioritization, of that strategy. that. You think see consistent our be the an on – key amortized We

Colin Connolly

beneficiaries The And this terms any of west tax taxes, piece and there local kind from and Dallas trend of Northeast think expect time markets. state well see continue the of continue the look quite reform to and of Southwest we migration the to from south Phoenix, be Austin our I do will coming we the out is nationally second Atlanta that kind that of help some question I markets, standpoint and migration Midwest. to to California. out will migration. Sunbelt And and of your for of certainly to underway think, the at and of certainly Charlotte from Texas as to migration the continue in and north And

Chris Lucas

you. Thank Great.

Operator

of Advisors. go is ahead. Street from question Green next Jed follow-up Please a The Regan

Jed Regan

occupancy can are be say And Just representative for Gregg think XXXX? would trend either a to finish any XXXX you year? or where the you you spreads quick also how Can give you in And releasing you for portfolio color on you during expect follow would Colin. the where year?

Colin Connolly

that. I Sure. answer Jed, it’s Colin. will

the our in comment, team, feedback earlier I XXXX I from Colorado my correct think will it’s is Tower. exploration real-time Parsley

it’s team effort So a here. whole

that, of low we to for look we We projecting As targeting of we move is over some Amgen do at to Corporate years. that are think be into over of recent a the phase takes forward And the we move – course the talked occupancy really year first Tampa and of their I the the these space kind – outs down how in as then the that will in of the the Center XXXX, quarter year. point had course are about. WestRock that rest

upwards the the low quarter through first point the the remainder year. continue and expect of to be would trend we So to then

number. deliver market. the to around that that And that would of we centered coming through therefore, relates that, I as the be portfolio, case it is quarters, be in or have still to the team today. roughly the to kind would the go say believe results expect said across we past As that so the We would mark-to-market, X% range below that I

current that I we be could see persist. would But would think of overtime, lower depending conditions quarter. think X% specific average market hope or quarter mix given during the on that any higher I this around leases to

Jed Regan

Perfect. Thanks so much.

Operator

our any Gellerstedt over to session. Larry concludes the for conference remarks. question-and-answer now to this like closing And I would back turn

Larry Gellerstedt

continued We everybody’s appreciate in Cousins. interest

forward We next this we always, And Thank after you. have any XXXX. may available or quarter. people during as follow-up are that looking call for to questions the will be

Operator

conference The presentation. you for today’s attending Thank has concluded. now

a lines. great your may Have day. now disconnect You

Cousins Properties (CUZ) 8 Feb 182017 Q4 Earnings call transcript