CUZ - Earnings call transcript Q4 2018 | Cousins Properties Incorporated

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Operator

Good morning, and welcome to the Cousins Properties' Fourth Quarter 2018 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Pam Roper, General Counsel. Please go ahead.

Pamela Roper

[Technical Difficulty] The press release and supplemental package were made available on the Investor Relations page of our website yesterday afternoon, as well as furnished on Form 8-K. the most reconciled in directly Reg requirements. package, measures non-GAAP accordance supplemental G the to comparable the company all has financial with In GAAP measures forward-looking certain laws, and securities actual other and to results from today Please a of materially and matters differ factors. statements aware the meaning that may be uncertainties constitute these statements may variety within federal risks discussed due of new as information, any duty events to any a The result does whether of not undertake otherwise. company future forward-looking or update statements, The regarding package is the declaration some detailed forward-looking full with in statements risk the posted discussion is supplemental contained potential a filings available in our yesterday, and SEC. of over With Colin Connolly. that, the I'll call to turn

Colin Connolly

remarks our will by then comments opportunity. our I update Pam, will achievement future priorities EVP strategy. XXXX of revisiting you, Operations follow property our good Today, and I prepared Thank corporate summarize highlight everyone. Hickson, portfolio. our growth and on and my morning, Cousins' and Richard market XXXX fundamentals an will my with begin

compelling be Chief Adzema, office To that conclude core and We It's summary a our on of guidance. Gregg will this unique provide accomplish to Sunbelt we that Financial four performance principles. Lastly, our a and have business goal, Cousins, strive based we financial XXXX we the At believe the preeminent with Officer simple. strategy. company. our execute

properties in urban the own leading with premier concentrations First, the Sunbelt quality office across trophy footprint. our of sub-markets geographic portfolio

capital add and new where can investments approach value Second, on maintain return. our attractive a allocation with to focus a disciplined generate platform

opportunities operating approach market customer that we sheet flexibility, balance take an leverage deep strong local best-in-class local financial our platforms so preserve fourth, can service, and involvement. when execute quickly And provide community arise. relationships entrepreneurial to Third, to

we committed straightforward and outlined it. I company repositioning this been We've running this sound place to know XXXX, we you should remain familiar. began Cousins, since the If strategy in

through why. walk me Let you

Georgia proximity from data macro property. for share trophy compete U.S. to quality benefits are interesting environment. cost That properties Sunbelt. JLL, XXXX. the trends. differently, talent, of several U.S. in war five office fourth strategy environment states heading. in to XX% migration these for the trophy Sunbelt upgrade U.S. Florida, is to particular Bureau, one to absorption through lower mass Census for with trends on pro-business According According trends quality where Carolina, the the search from portfolio favor their to positioned A have net North points quarter At ranked the and in XXXX of amenities these migrate the office users office approximately emphasis First, puck and our of to effort the I'll during the take an in highlight an shape, Arizona, to couple population the well of choosing work net our Texas, with with XXXX is number that transit. space of a continues urban Class Sunbelt through the In increasingly to top

results. fantastic deliver continues Second, our to strategy

lease. same by same which of cash me square million team's leased annual property the our with in to highlight year. share the per increased end generation feet top XXXX. pool $X.XX NOI in second our property We for We X.X XXXX FFO, was Let net achievements guidance. the original increased delivered We the rents We of XX.X% at XX.X% X.X%.

with NCR's of development successfully well. project performed our corporate at team on million and on cost Spring total headquarters addition, a new time delivered exceptionally platform budget. In $XXX The Xth,

believe in X% embedded the and place our XX% an that at Within our typically between our moment, most given Externally, annual the development opportunity mark-to-market our existing positions demand future strategy environment investment for robust asset. our existing driven range, pricing include on leases we X% Cousins for attractive escalators well the Lastly, remains opportunities. rents remains growth portfolio, and to X%.

current for office our pipeline XX% in we as very to to strong technology in also space XXX place and which Our a approximately is which XX,XXX development Notably, included growing This the floor by project later the project and of are is Avalon progress that Colorado use which Atlanta, mixed XXXXX Austin deliver feet totals Charlotte, includes international quarter, today. pipeline and at Avalon a pre-leased. our December. pre-release, project XX% full in Atlanta, $XXX in share executed Trinity, is is demand in company remains XXX XXX,XXX we square encouraged million expected West this CBD, as remaining now a

Norfolk both interest strong our to office shadow very XXX new sites our I would efforts, most could potentially XXX by Dallas, that to to to recent we which existing pipeline that in the our Norfolk its confirm Atlanta Westshore West Tempe. reports foot Xrd development we're Midtown in sell for regarding is addition, to Tampa, press like purchased projects, and to and addition from needing located corporate is West relocation create well adjacent active Atlanta. advanced at X.X headquarters. to Related in our aggregate, In a new and we recently projects development with in I our have Southern can't site Mill, feet square customers X.X Street Peachtree approximately recent Uptown very prospects. our Peachtree in build Cousins existing in Midtown includes Southern million address potential portfolio in million grow discussions to In encouraged our square and

transaction, Norfolk As a the the manage Southern development. Cousins to part engage intends to of

to on able not comment financially our that headquarters capitalized point development. I local the to based on and may we like confidentiality will time. typical now a is do will agreement, capability. further Cousins While fee balance we sound be surface are this want so highlight sharpshooter proposed our out for sheet, The this transaction at urban project under it compelling are

of healthy look markets, properties first the despite opportunity in we upon the anticipate to volatility However, and sharing which currently our we fundamentals the during XXXX, details excited are we In occur public in closing, forward remain markets the transaction, to quarter. for to closing over additional customers to about rising Cousins' demand across tireless our our Richard. for company With with that, to and rates. each and their Sunbelt other, shareholders. want thank turn call and dedication my teammates work rental I the I'll solid

Richard Hickson

Thank you, morning. Colin, and good

portfolio year feet of our lease strong As eight mentioned, XXX,XXX past XXXX impressive term of volume was an quarter, leasing by Colin the team this average At completed a square years. economics. over at at level, leasing characterized

our and mix, remained net basis. growth basis of increasing of terms on portfolio XX.X% the expansion was solid strong leasing cash at a second XX% generation Rent with XX% In our our leasing. leased. year a ended rents GAAP on new XX.X% operating performance, With activity and

forward, Looking X.X% only our during expire of are XXXX. leases set to

leasing robust, for employment markets. despite office sluggish activity JLL, our According quarter eight rates in headline to quarter rental Fourth Atlanta Atlanta to historic statistics. A hit straight. highs Class was Turning have

in Class sub-markets material tailwind in have rental faster Importantly, rates portfolio. than largely times risen the for urban three urban A our suburbs, a

leases vibrancy in and accounting WeWork Frazier XXX,XXX each the quarter to sizable of an is the expand leased. companies and taking Buckhead. square at their Buckhead. at desire included an an success Corridor. Road of at Our a Notable to a our Terminus & full And the floor of building concentration activity and sign expansion of in Terminus technology renewal of along interesting leasing feet with early square portfolio regarding XX,XXX foot sub-markets, of Deeter, encouraging Atlanta firm in WeWork XX.X% team Promenade particular, executed Piedmont the

Salesforce meaningful a While Workday. the as activity we as year the in leasing established XXXX in companies started saw tech including commitments uptick sub-market such important slowly, progressed, Buckhead by to and activity

XX,XXX has remember lease pleased have Google square a CoStar, in after Apple In only take executed total, A our report last In we Bain rental And feet X% XXXX Workday demand than the Class expiring potential are leased the such is office recently portfolio we million quarter. negotiations to of vacancy cap feet and in square leases to square continue companies drive that feet far of tech full meaningful square market to X feet large of to Since are XXX,XXX by net rates Peachtree end quarter. than that commitments Terminus XX%. I'm fourth Buckhead space. as office grown customer from space Austin, for You XX,XXX across March. XXXX, foot the square According will at and with along impressive service XX,XXX absorption more at the CBD increased that the more asset. in

new office This will are that future X XX.X% stood XX% although end. underway Our at stand the construction than in at project. a deliveries, outpaced our XX% Colorado leased primarily pre-leased There has pre-leased. feet keep Today, new million includes square of absorption CBD at more we eye on close year activity. CBD projects portfolio XXX

signing quarter, was and at team renewals busy leases last feet square XXX Our Congress. of including expansions XX,XXX

In just last foot X% Charlotte grown LIBOR growth and that market rent also premium it experiencing year XX,XXX in According Wells an renewal to term long XXXX rental we assets. rents both in important solid property. week, addition, X.X% CoStar, and XXXX hit square signed Fargo past at markets with have over the growth. the

Uptown, X is construction deliveries. certainly XX% market Class New in feet the square supply the has increased, pre-leased. of million absorbing Of the but steadily A is

of at is expected our best development from our about near on, all will to for the in two one operational remains feel Third Uptown end by Dimensional touched Center. End Fund to of Advisors term vacate release availabilities Colin block be This which As quarter, occupancy South we it and Place, first floors soon. in large Dimensional point, DFA good Fifth ability the of at the

and closely the renewals. leases DFA, important With we focusing nearly new that X.X% next of are on our tracking our expire in two executing properties mind, Excluding are only years leased. XX% supply Charlotte and over

lowest to marked absorption this services year four growth, Moving where on vacancy Class pushing portfolio sub-market any in is level our of by positive November office of other located, at straight CBRE, market for X.X%. to top entire has employment In lower of a Tempe, vacancy According Phoenix. From XX.X% for than its driven A the a XXXX, net is increase been to a XXXX Phoenix market, to decade. eight November in XXXX information significantly jobs. currently

Our portfolio ended leased. year the XX.X% at

provider office Phoenix Gateway. flexible lease Industrious our signed first for quarter, fourth the with the During to XXX its team

total portfolio in of terms absorption X.X% both our tell results leasing a net our second economics. commencement quarter only X.X% the new Terminus, expansion square a while of of portfolio providers had flexible will Wrapping total basis. With on comprise Tampa, at footage our powerful full office of volume fourth of leasing of year story. more in and XXXX inventory, with was lease, at The Westshore quarter WeWork this XXXX up our CoStar your about strongest and

signed are expire for previously encouraged team to to square about we available of of backfill of look space we turn including XXXX. the Our asset. and the our foot With is and January Harborview, over At our team T. optimistic Rowe position toward quarter the the our corporate deliver expected the center, are Again, very early it solid of strong this year. leases overall, I'll commence results in announced balance activity Greg. that, to this continuing year new of of remainder at set XXX,XXX by at square all feet Price our substantially market as the of the we and customer in renewal floor is second XX,XXX full new to space

Gregg Adzema

by everyone. providing our with balance morning, move good closing overview to remarks our earnings begin on I'll and our guidance. sheet results. remarks I'll financial my my Richard, an Then before Thanks, of XXXX

velocity the for line Again, very incentive during and second was was Colin metrics FFO it was fourth $X.XX unusual remarks, item portfolio, up revenue accrual. and you both which cash our inside consecutive tell you for were below driven on expenses, Within As the year-over-year generation spreads quarter. solid XXth over leasing It can same X.X% at The term also NOI by our only In per up a Richard property on brisk, we long last strong. quarter. important positive quarter, from the Leasing driven general second was remained double was in quarter. were growth. and operating fronts, X.X% year. by our cash focus property share, many up over NOI reduction digits same quarter year-every-year the again compensation XX% administrative trend consecutive that and remained growth was

XX% year, a healthy the For in very a cash grew at increase property despite NOI taxes. X.X%,

high tax Excluding property appreciation increases values not said, in portfolio. have property seeing. taxes, of class large that NOI XXXX. and would a same significant the during we're exceeded It's our cash problem That growth we're about X% the complaining certainly in property indicative being

company's balance strong. strength our sheet. and of often credit the focus on Turning qualify a profile Most ours investors certainly would to

and to Our net times to XX%. X.X debt is debt net EBITDA our is unappreciated assets

However, up equally important to times cash have When and get tough, with important companies company's liquidity the a usually an position. is liquidity advantage. competitive access committed dries

covered and allow create this strength well will our we're billion a This unfolds. credit cycle economic powerful combination as have the We for facility. to $X of at is us shareholders and significant liquidity it undrawn value convinced with

January As sale Pill during medical quarter discussed is the XXX,XXX to square submarket last quarter, closing process Meridian in property we Mark anticipated Hospital. Hill This foot with the located launched Atlanta of Northside early the the our in of adjacent for office second asset XXXX.

different and is of tenants it's conservative for all attractive basis. from and fund sale to this our funding development and a core strategy. non-core with will buyers asset consistently will the be approach a our current of to Proceeds many types development And development demand. of our outstanding of pipeline for our is closing this fully neutral building used leverage We've development sale, this Although efforts. funded continue to has very cycle. entire been seeing A through pre-funded we're this activities be projects our us,

once a over XXX post a building XXXX by term occupied. our my basis providing office on $XXX development XXX three initial points the to loan on basis today Austin. I'll to Finally, a year facility Colorado with is end, in price wrap construction the we declining non-recourse behind million guidance. details quarter up points closed XXX LIBOR, comments Downtown FFO It's a

of assumptions. per share. As guidance to release, range we outlined $X.XX expect we following in our FFO the the earnings This is $X.XX driven XXXX range in by

half a in recently property same large property second basis. some the and as leases burning increase of tax anticipate cash performance and in of on occupied as year in year between space, This the the of signed will XX% the on a quarterly be general, by a First, positive rent driven free X% includes year-over-year higher NOI the as we same commencement expense. growth first half, In well property already lower X% progresses. off assumption our

million capitalized Moving anticipate level fees NOI. line on, we million in for net number are for must included includes We anticipate other and in general This of between this clarity, the costs termination that and leasing income capitalized million They're and were administrative will $X $X item. and salaries. be fee expenses capitalized between not property internal million. $XX $XX previously and leasing expensed now And be new and of amortization between above $XX.X of million other GAAP assets FASB straight of and $X.X expenses net interest and standard between of $X.X We revenues $X.X million. and effective anticipate revenues million anticipate million rental million $X.X line between $XX.X and million. X. January market $XX.X rental and between and estate of that $XX.X interest and non-real million We depreciation came below

And Mark will includes note, mortgage the assumed be prepay. sale August on Meridian in that need a guides disposition, earlier. there's XXXX I discussed XXXX Mark Meridian to please that one matures Our to

Our closing is guidance $X prepayment and it by upon million penalties assumes us. incurred prepaid

of and XXXX these guidance - development Our we'll - and projects our update early development to mentioned guidance acquisitions. pipeline leasing any strong not if disclose does speculative if or necessary. I'm Colin include In it remarks, also any for shadow sorry his acquisition commence, you speculative our

Before more turning wanted point. provide data to over the I the call to operator, one

increase isolation, most capture story. both positive it's growth we we X.X% do in range While portfolio our cash five as embedded and well pool. we both reflecting and better groups full we XXXX by same our not incremental anticipate projects, it our think full same same property efforts. pool growth cash property to are projects in Carolina our a combined, in XXXX. our development of X.X% NCR same not development as growth that recent which property XXXX. higher Avalon the in look of the To NOI does all in phases potential our anticipate of Charlotte, does at important job solidly In these of property When to Place are performance, our organic much platform. both Dimensional This Square. flow These include of The properties here the of between Atlanta, NOI and in generated

We are the to not this it going to it but was that, I'll back With operator. turn have to provide metric, ongoing it. updates I over to thought important

Operator

begin go the [Operator session. The Instructions] from Please Dave Baird. now first We with will Rodgers question ahead. question-and-answer comes

David Rodgers

markets leases T. maybe to some with the I'll about downtime Buckhead said everybody. each that Maybe with associated and in replacement you the you tenants in mentioned just and of wanted Richard. talk for on I of some both kind little you color start a in Bain you market? particular Yeah. activity Good to Rowe, morning, leases for and maybe Tampa, that those the just can give mentioned broader those you had

Richard Hickson

that. do Sure, happy to

For terms at expect that year. that the for with size be Bain months March we that dealing couple end on Atlanta. to And space in Buckhead, downtime construction And question Rowe, of time, a XX,XXX roughly size, of or quarters. this expect in Pretty the you expires time roughly probably for I again of of down to tell customer feet, your as we'd about that of well again so. around T. six typical

David Rodgers

strategy but some was and out, just helpful. it was maybe it on got that for to you mentioned you you there's and Can your of to sale. or kind option have kind that you how land I by kind a that there? like for purely that's sounded part be NOI discuss sort you of Colin. of talk of name, Maybe or you since know about whether not confidentiality agreement Great, a for own them their going was to

Colin Connolly

until this further. Yeah, to shooter a I that overall to get my kind A we're in transaction relocating prepared on we able But as more, back would you'll and financially well, Unfortunately, disclose And of And to company that we're see love very Southern think able Atlanta be Dave, I close. work will as think remarks, not to for wait do positive I it's relationships opportunity ability I kind as very speaks somebody Norfolk to think what's as I think just testament to elaborate able in Atlanta. of we stepping happening is have large mentioned like our compelling I've into to structure direct XXX is fortune and to deep basis. to mentioned Atlanta Midtown. with just a a Cousins.

So further as the details. we transaction forward those look all get we'll providing along,

David Rodgers

they Great. do And mentioned so we then that considering, from come maybe office last have thoughts have the any X.X% revenues or WeWork, have plenty you question, industry runway an with, you likely they more? of upper doing business, as anticipate that of you industrial you're comfortable bound were there,

Colin Connolly

it's project, lease just at think had some out with with with it, mentioned, first we, and been spaces, industrious accordion to more term I building. our again a by and traditional Richard the where say and a experience viewed feature out in with that as they at larger favorably level, to graduate building underlying encouraged opportunities work lots on direct I'd we're Yeah, our and of perhaps at We But excited got [indiscernible] high - very long customers. us perhaps provided And space at then do basis. we've to we many seen we've Tempe. to And XXXX of we've look companies, of pleased customers the a of more very starting Terminus coworkers. in of lease our we're look We've our larger actually flexible, our Avalon short-term some flexibility, terms and really see expanded. lease with it the communication

But look different watch would we Certainly so that we of be So, industry. credit than really at no of we're carefully. positive experience. and and a it's that any we been continue kind to credit mindful other of mindful will

the portfolio. number, a there's that just specific and But the we amount I keep be we'll want say balanced in - that overall thoughtful wouldn't of context So to about with we it.

David Rodgers

you. thank Great,

Colin Connolly

Sure.

Operator

Please of The Jamie next with from Bank is ahead. ML. Feldman America go question

Jamie Feldman

you at backfill good other appreciate and blocks morning. and Thanks Can AIG Great. CBRE, the large some Good. the T. and I of DFA? talk to Bain then color you're about Rowe. looking

Colin Connolly

- kind that… it's I'll through I'll walk just Jamie, and of Sure, you Colin

Jamie Feldman

And you be just I'm your for any of helpful? guidance would sorry, can these in what's that add spaces

Colin Connolly

So kind me let the - break over XXXX. course and your of Jamie, maybe of it XXXX down, it will just

As space feet. was walked say 'XX AIG, one at the material about really Those material he large DFA progress. Richard We've We're about and making that really the I'd Charlotte, That large talked the Bain, now through, explorations expired XXX,XXX got in we've this NorthPark. year. is good CBRE. are in

do XXXX, hopeful technology you'll important of have the really we of bit the long downtime Bain, customers on space. from But have not of refit in we'll to in online backfill to will bit We're get will then good little a in that the last name And work by a of to company making as And be recall over to again, viable we market. news quarter, vast the share lease space. will AIG come said the as to closer really we've with of a I still the it's term explorations good we're CBRE If past, have the distant future, space. those little progress. signed course really to opportunity for there. a company, again, too we that a the majority OneTrust think that

opportunity the that I the success have those in well at So comes Bain the their is March, space. along CBRE on think exploration for we

renewal of the making just And space to space the was it's and Well. it here at recent progress we're that we've then the did XXXX, again Rowe backfilled again got, T. space with two explorations and good T. the material really Congress. a XXX the Well entirety forward really that almost Rowe and Looking

trying job attack do markets and all before team the customers to to have success. and and add continues thinking with great So day-by-day we're good we're some that a our our

Jamie Feldman

That's Charlotte Great. yet? comments guidance, I I think then is good or something you've this guess the had space, And Thank helpful. in that your for you getting interest. Is backfilled you. included just the not XXXX

Colin Connolly

is with Dimensional we It - have the Place spaces.

the space really project space, entirety on, in end of know Richard will our existing As you some this the Dimensional have Uptown. has commence of quarter. of it the which best It to been touched Place in tied

a moving in So bit it target we've as moving get continued target et Advisors it's been Fund But of Dimensional terms finish it's to to promise cetera. we We're a quarter. little of of little has confident that space our a when change a done work that been orders customer. on some had a bit could this we'll

So now definition. got some that we've

some material any not a teams guidance working in leasing and on and we'll think our half year on - activity towards the that. keep on numbers. that of But have back got space XXXX real or we'll impact I occupancy be through would our the

Jamie Feldman

in for more and up you in big is interest your I own you. for can't are picture Southern, you when parcel lot that you you portfolio Can Thank Norfolk the longer about means shaping maybe what more and give opportunities there? just town. part keep of about Midtown a it think give and to be what you and term there and just think what Great. of a what just hearing as Okay. we how think that know it, but you of around Midtown that you color

Colin Connolly

Midtown customers. continues close key at the our back which who Atlanta. to the of a significantly I'd And into and certainly of Midtown and look the And would there over Tech. say are lot with to Midtown and companies from say Absolutely. as from transit, really and Georgia really offers And be you the really the companies. And looking over mass and ago, it's to of be Midtown to very driver. began robust That a talent that interest technology wanted experience Georgia certainly was and years has They in Tech. large development interest five NCR. hub was to research large evolved plus quite pick to legal certainly if I tap opportunity known talent close been other

So think able of Southern. be hopefully, again to in Norfolk a several years that to highlight the And that that be to We've theme. over those consistent I positioning been with short opportunities. order, we ourselves try take last we'll will advantage think

XXX there's We a a terrific market. And own in site Peachtree. of big also at customers West lot the

So know financial who but technology this the is also technology large going corporate forward. I companies think their aspects would really of traditional operations differentiate going you think and of business oriented companies some of services and other what's to them

to And so Midtown an area on continue and on. we're bullish certainly very that will focus

Jamie Feldman

what your do looks make rent talk growth Okay. your box, you mark-to-market for just you red about for about question your growth? Can this year markets? Then but final outlook me. talked rent like across your I for in you know

Colin Connolly

constructive - is in it. very we're we're generally supply Supply Demand again, Yeah, certainly is on speculative. actually solid check. has and remained

around show. think XXXX seen what kind over Phoenix With assumption would upper X%. nothing the the that's But others have if I Charlotte's the of - slower. in particularly an that on on from ranged looking will be it's the our that of the X%. look over X%, and would from a we X%. at of data that that that that's know to that end XXXX range a I the ground, safe kind kind but And to say think XX markets X% that of of really don't was to we look standpoint. so little And And last months, bit last very anywhere few months, that average probably similar XXXX. the we've forward been

Jamie Feldman

you. Thank Great. Okay,

Operator

Please comes ahead. next John The question with go Stifel. from Guinee

John Guinee

buildings Salem, BB&T or would impressive, Very I'm for maybe but could either not And you're located SunTrust is Could can't - whose, you. those? remember second Two really someone's in that recollection headquartered voice, is the happy having you anything in to on is located comment that you not it appears you've in be is Winston Atlanta on but were my you Thank game. of tone and in about your comment interesting. of Great. the sure, questions. comment XXX% if guys. I co-working got be then

Colin Connolly

it's happy John, to Colin. both touch on be I'll Sure, of those.

hub, we obviously that we BB&T in It Charlotte call Eagles of will but was corporate news their comments and their else merger to So Atlanta very and make that. their banking that banking they've continue up corporate Atlanta. announced headquartered headquarters new with they is in were interesting as fact investment would as that - did they here be a be the SunTrust everybody do is specific SunTrust and like woke wholesale

within called feet got, in would that square back a to city, Atlanta. at level, as expect high the But a I here vast would points that a But change downtown we of stepping is couple there. make. a majority of material a see probably So X.X just they've not

is and they number one as deck is with geographic of set looked I growth. which peer Charlotte the I complimentary for towards so growth interesting think their time. on you they their term there. highlighting we'll We've got down the their banks, at I'd if population that the banks, happening opportunity which were other this potentially those want was to ranks very favorably those And GDP great strategy. at the then that really what's point footprint is two and long look the doubling it things Sunbelt, make morning, speaks in with in our relationships to very between see consistent ours one very And are

making supports, I think it And a two Sunbelt. it bet so shows again, on companies large the really

misinterpreted So on I to have co-working, your question think he our answer second tone. might

X.X%. we've our is have we experience up our attention to for graduate liked got exposure it right got have very accordion It flexibility from standpoint co-working to lot the as the that they look that into from has and customers underlying it project And I our interest we having think And comes today, buildings where us. feature. of a forward, has the see along But been headlines. space. a right, of and looking just their that positive in some new like continue some customers

been has data So positive. the very

we'll that investment long to And that the to credit exposure kind of like want something right, a have limit from mentioned, of watch. continue have it's I to grade just to As any below term. our credit kind we perspective, for

John Guinee

Thank you much. Great. very

Operator

question Michael next ahead. Instructions] The Lewis [Operator from SunTrust. go with comes Please

Unidentified Analyst

in developments if Alexie Michael suggested surrounding they morning. thoughts believe could wondering in Phoenix on that XXX related is article to This you plan and was the morning. some areas? the group's million planned for tune I multifamily throwing of something to of number news I invest Good share a this Phoenix? [ph] in

Colin Connolly

the Could We question? you quite your repeat couldn't hear audio.

Unidentified Analyst

Little better? now? Sorry. hear you me Can right

Colin Connolly

Yeah, much better.

Unidentified Analyst

I'll million news group's I total it Okay. about Phoenix repeat thoughts XXX share some areas plant on which according surrounding your again. if related was and to could multifamily wondering you Yeah, could in developments the articles.

Colin Connolly

scale. the of a that related a reputable with speaking to long that with group that long I And are in and throughout Speaks a Phoenix. prospects growth. something favorably Well and is Phoenix and think U.S. proven barrier size have very for markets trends track clearly typically term record very certainly and and the interest high there

kind market. bet In to don't are, as kind look again really in and to where growth speak our of making process Phoenix and there's big opportunities But terms that allow want a the we right, they for somebody themselves of in I clearly shares that view them positive their overtime. demographics at of

Unidentified Analyst

thank you. Okay,

Operator

would session. over conference turn our Colin to This like concludes closing I back the question-and-answer any for remarks. Connolly to

Colin Connolly

time interest appreciate Thank you today. all the in with for your Properties. us spending We Cousins

If questions. reach free discuss results. additional look to Feel Have for you quarter our available conference out. call we next first day. always to great a we'll before, to our are to talk forward We don't

Cousins Properties (CUZ) 7 Feb 192018 Q4 Earnings call transcript