CUZ - Earnings call transcript Q1 2019 | Cousins Properties Incorporated

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Operator

Good day, ladies and gentlemen, and welcome to the Cousins Properties First Quarter Conference Call and Webcast. All participants are currently in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this conference is being recorded. I would now like to turn the conference over to Pam Roper. ahead. Go

Pamela Roper

our welcome today first President our are Executive Richard and call. earnings and Chief Cousins of Officer; me President press With Colin Hickson, Financial to Officer. morning, Gregg quarter Properties conference Chief Operations; The Good and Vice Adzema, measures Executive Connolly, yesterday directly package financial accordance company as has in all as non-GAAP furnished comparable supplemental on requirements. release and afternoon the the supplemental Form to package, most the measures GAAP were distributed G Reg well X-K. In with reconciled our

did If Investor website. are supplemental Relations quarterly receive SEC you through and our of not documents a copy, disclosures the page available these information on links the

agreement on XX, TIER the company’s be and regarding we websites. We related release may REIT. posted A aware you transaction separate transcript call both As the issued the presentation March with Cousins proposed investor filed and between were includes and press a conference it the Properties April with effective. a version XXXX, mailed that merger regarding was announced execution of proxy yet and statement registration has Form joint available. the Cousins when not will XX, statement prospectus on definitive statement the to become a transaction. preliminary TIER’s F-X The registration stockholders A SEC proposed is be on to

new these solicitation transaction, who aware respect regarding meaning filings. risks laws that factors transaction. XX-K the participants proposed when Cousins the and does these actual SEC You of available forth should materially the declaration to any and review Directors undertake discussion package supplemental company maybe of may the information The posted Form update as proposed uncertainties to statements of important proxies definitive the and deemed be other of materials they the to become carefully information the is discussed risk Officers will of proxy variety proxy with forward-looking the Colin forward-looking and about filings questions statement SEC TIER constitute with and and securities of detailed with in filed Executive information, and differ they certain that include that, and With not The contained our including statements, in over statement you your Cousins our potential other and results are and federal from call the other in otherwise. confine announced within may focus Annual to the matters a results available This joint in and including on a TIERS and we and to second today the merger. duty statements will factors not Report a Please SEC SEC. and I’ll each results the yesterday certain events with Officers statements will our and regarding set the Connolly. whether our the call in due Executive comments of definitive be on some quarter request full contained about our prospectus. Information any or Directors contained be as result turn to forward-looking future is filings in respective risks

Colin Connolly

this operating Pam, principles. be business you, to office the strive preeminent At good strategy. with the Cousins, To We REIT. four core Thank it around all morning, starts and accomplish Sunbelt we everyone. goal, execute

local disciplined balance approach. submarkets an operating take our to First, our our value; platform best-in-class capital that across investments leverage maintain own footprint; to on new portfolio allocation preserve platforms with the Sunbelt and best can approach third, financial flexibility four, sheet a future entrepreneurial a provide geographic premier second, for where add focus opportunities; in the strong

remain and the population Los sound compelling Angeles supported trend. Meanwhile, City, Chicago and unique, believe by in census growth many our U.S. data to To lower is which all who New search simple, data. in users Sunbelt of in robust. what and powerful is While confirms long-term In the declined costs markets well we respects, attracting population the six office pro-business a we this all it XXXX the large is space underway, highlight, of environment. according strategy migration York of might are latest that already to in talent, a knew,

active in positive real first at quarter. capitalize are we trends continues these an to and Cousins And Importantly, office Sunbelt translating our had our into estate team fundamentals exceptionally as market. productive

Richard provide and generation financial front, X.X%. delivered operations $X.XX same on per a results the property rents Greg and in the cash with cash detail team will in moment. more FFO X% share second On and up up leasing NOI our

Turning to with Norfolk into Southern. strategic a entered our agreements investment series of activity, we

Let remind particulars. the you of

a will income associated approximately develop Cousins Midtown corporate for recognizing headquarters First, in Atlanta, of the new through company million $XX.X fee XXXX.

million, in square This the United Southern XXX,XXX quality and office of new yield standard accretive and Atlanta $XX South the a addition, delivered Dimensional End In acquired Advisors. for Peachtree, headquarters company with States. XXX,XXX expiration the the year a or creativity. the the December for a main conjunction to project In square square per In with sets of a a purchase, XXX% rental XXXX at highlights Midtown Overall, is one a equates $XXX off-market regional power in growing located and building foot XXXX that Southeastern foot. GAAP shareholders our XX.X%. highly this Place, for lease Charlotte, building location for in deal in Fund for innovation Norfolk an submarket executed at main and of Dimensional foot relationships we rate a

back XXXX. DFA Our relationship to with dates

again. thrilled be once this great partners with company we are to So

Amelie, to at Our of significant of in during West on which Trinity, are share the which Atlanta, remains mixed-use first XXXX receive continues with which deliver to quarter interest. the of quarter XXXXX In existing venture XXXX, joint Avalon, schedule phases in is first and will during XXXX. fourth the XXX customer on deliver totals quarter we track. $XXX pipeline, development approximately million our a project, developing

While approximately the highlight at the our $XX pre-leased fourth triple LOI we during depth economics. in increase XXXX. with Colorado the recently prospects, lease on net, of construction during of quarter-end, lease of XXXX and at interest, negotiations remained to in commenced To quarter several are currently the the XX%. Buckhead most with XX% and rental on project Midtown on XXX Austin, pre-leasing is executed In rate par which finish first which would project is quarter schedule to we the is

statement you we the these right As pending two lease to and additional headquarters on our the and last We and progressing an provide expect integration on preparation lease XXX,XXX filed two Parsley remain to the close floors about by size track well. feet preliminary the square Friday signing of Parsley would our Energy. extremely through REIT. increase to floors XXXX. TIER by has update registration I after continue foot is Overall, enthusiastic the building a transaction The recall, the we to square planning to XXX,XXX November upsized third might to merger with XXXX. like quarter with deal.

Let merits. me the remind strategic you of

our across office collection complementary an market. unmatched basis premier balanced the represents First, a combined portfolios Sunbelt properties of trophy highly on

land going opportunities pipeline, company in-place exceptional market combined strategic sites rent. and the including and creation will value attractive an below forward, have Next, growth development

benefit million TIER’s both believe and NAV anticipated long-term $XX.X significantly realize we will be pipeline synergy. from immediate and development the FFO Lastly, accretive value as pre-leased from G&A transaction that over to of we the

quarter sheet, are Cousins. merger had transformative In growth. with we announced We we execute Importantly, transaction, flexibility balance closing, and while results. Southern, to a at a TIER retaining able capacity terrific a financial fantastic the and best-in-class a provides which transaction announced REIT delivered compelling operating with for future Norfolk

to both TIER for effort, Before Cousins to it their turning the I appreciated. recognized want the at teams tireless Richard, work and call express is my and over Richard? to thanks and

Richard Hickson

you, Thank Colin.

overall is square tell As Southern exception. you the we portfolio and XXXX quarter, no remarks, a lease from can XXX,XXX of operations the to foot previously are feet our with At level, Colin off existing described. including completed start leasing that this XXX,XXX within Colin’s square portfolio Norfolk strong

rents the term our lease activity sizable were at Excluding strong the average than rents GAAP was With remains for quarterly effective this XXXX. growth the X.X% the we eight our of average XX.X% were net a activity, portfolio occupancy basis. XX.X% weighted and slightly full-year generation leased. higher and basis years cash with lease, for net on shorter-term a our second levels, on XX.X% and quarter average increasing Rent ended at

throughout Looking of all expire high remainder growth, forward, continue an increasing rental prevalence themes to markets of with vacancy declining are activity. and stable a our set leases our XXXX. job modest X.X% be construction or population of Broad solid during record rates, to of the

last Class Atlanta absorption first and healthy was yet Atlanta net X.X% XXX,XXX historic to again, to CBRE reached activity overall markets, the feet. JLL, highest XXXX hit A XXXX According continues very the since particularly noted to year. rental that Turning up over square end its our of at highs strong. levels overall rates be quarter

executed team Atlanta of feet XXX,XXX this Our leasing quarter. square

of a its in lease As our global lease the planned and temporary we Terminus FLEETCOR as Terminus recording with XXX,XXX from in backfilling arrangement new headquarters quarters. new Buckhead represents the to to during Terminus In March. encouraging headquarters. quarter project’s company new XXXX. at connection square notable the the was a is larger home in foot testament the location, Atlanta Atlanta remains Regional This leasing in Southern Southern. at I progress already XXXX lease executed relocate mentioned, most a its generally with of Activity move and Norfolk space Headquarters look amenities. with space in to in Fortune FLEETCOR’s and suburban is that signed Midtown XX,XXX construction FLEETCOR future with and Buckhead, during forward we their further expired lease company square vacant fourth to abundant the foot choose for completely a Terminus decision Norfolk will high-quality

the no this dynamic markets one to Austin. portfolio our of country. the this surprise better be It recent rate should continues captures office arguably be other growth. most to than and in statistic Moving rental No that

vacancy asking XX% continues from at just Class to quarter the For X%. of XXXX. run first the JLL, rental CBD grew overall CoStar, to rates According A in

is in it which tracking the continues we very CBD, portfolio, and XX.X% ended leased. are Our closely, at a activity demand Construction the quarter to primarily market continues be however, theme supply. major the meet across to

the with leased at rent JLL other is markets, net our CBRE of market’s operators in Congress. rates absorption X CBD lease lease near-term. JLL feet office XX% In record portfolio for overall Further, signed headlines sectors, Fargo over XX,XXX the of team at CBD flexible construction noted quarter services lows activity renewal the moves quarter new leases and a foot range the a XX,XXX the at have very uptown, that square continues feet XXX,XXX but asking XXX the estimate rates the nearly absorption recently company, the Across solid. shows vacancy square are and foot and our which of A during Charlotte, market square market, at of are two-thirds at million Like were to in with pipeline bulk both growth largely an roughly XX,XXX the the quarter team leases in of highs. few energy expirations is construction which a large-cap significant While signed over looks quarter. Austin track Wells pre-recession long-term market of by pre-leased. during feet, important our square at watching, X.X%. and Class in square we with including customers companies, the year-over-year technology that around bears pegs of centered

interest show high in few up quarter concentrated. both from position, market Phoenix. and in over is our future our respectively. turn markets ever our real from commencement expirations increased vacancies customer Fundamentals notably leased of average opportunities at it lack as that Given as are renewal available in Phoenix, that, with XX% fundamentals, the primarily laser-focused continues of both view garner on customers cities driven floor and the a Plaza Regardless, and about Tempe teams most opportunities. team leasing property. the making rest of by that as our we and a macroeconomic quiet and quarter-over-quarter. are had was space soon. Harborview this approximately in submarkets where that perspective. and previously the backfilling X.X% significant on a to our This in Gregg. portfolios Tampa XX% full the remains new announced on progress the very are I’ll see optimistic of remaining lot as a note We strength, are new at new to renewing and and wrap healthy key you’ll Harborview operating driven with Class weighted in great our segments to Tampa A occupancy by Despite and the Tampa working vacancy we potential of both final I’ll customers. With estate leasing busy continue portfolios occupancy limited Westshore One we

Gregg Adzema

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

quarter’s can we As than you from comments, XXth for second a on are share, on spreads highlight before XX% year on important this tell quarter. solidly and many quarter brisk, performance. were same strong. more and leasing items. providing you to and At in three FFO that last generation some our same-property like both I’d $X.XX it over the solid Leasing operating increased year-over-year Colin and fronts. positive, results Included the Richard’s velocity was property were metrics NOI was per cash focus up consecutive color remained

and general first expenses our significantly than higher First, administrative our during quarter budget. were the

strong of variance. this Our a clearly price vast behind is share the positive performance, majority development recent

of budget. components right other G&A in line The were with generally

during in rights as these CNN approximately for the acquired books when we Atlanta Second, Center acres the and million eight downtown developed with our We we XXXXs in covering sold we value. first disclosed, held air rights on quarter. zero them $XX.XX previously the

the we line only costs, gain gain income million As on our a within ran were sold, recognized entitled closing statement result, through properties. $XX.X item when deducting they the investment which a

of the recognized recognizing in with well consistent out out of the million titled Southern during over fee as Norfolk final Both during within in recognizing the $XX.X fees Southern laid of we we fees the schedule Southern when Norfolk the We recognized of forecasted which earlier, an $X.X March. announced transactions three line of XXXX were the quarter, quarter, income. Third, XXXX. first spread the quarters that Colin ran the the through transactions first actual million additional as income as fees balance anticipate part we anticipate fees fees the provided item we are Norfolk statement over our early

NOI Moving X.X% was on very driven to our property same quarter, growth expense X% growth. cash a performance, by X% up first the revenue year-over-year during solid and

to year and the this we NOI strong is better cash growth than actual Our budget as expect performance continue progresses.

raising XXX our basis XXXX As by cash a projection same result, we property are points. full-year NOI

to Turning balance the sheet.

X.X% debt-to-EBITDA average average assets net net years. X.X times ratio Our on is our X.X and debt maturity rate interest debt-to-undepreciated is our weighted XX%. is weighted is our and The

by balance Our the share. a extension our couple one-year only million recently anticipate weeks. had XX standalone financing, outstanding guidance. $XX possible. we will updating Overall, Please TIER note XXXX loan the guidance as soon submitted comments extension wrap of remains receiving sheet this and the is is office Carolina approval solid debt among very and XXXX The rock a Once and combined our and which construction transaction. guidance maturity excludes I’ll balance a we today that the includes close option my as TIER, next peers. our Square among the application we in up provide best reasonably over March of FFO

are guidance we behind All the to our we following. except $X.XX share. earnings X, guidance we the assumptions XXXX range March the the per unchanged this anticipate As of on release, $X.XX provided in outlined FFO for in from

of X% in clear anticipate comes our from guidance revenues, markets. is X% and NOI up the the and of same positive solid indication of cash our XXX% previous of X% X% a property we a basis. fundamentals on from First, between increase year-over-year growth and between This

as our Moving of we’ve of a assumption the reassess and in the Meridian light of Mark in of sale XXXX Plaza removed we assets on, reprioritize sale non-core transaction. TIER

interest and million $XX.X interest. anticipate million, of of we Next, and capitalized net between expenses other $XX.X

of Finally, salaries. capitalized of between we million, net $XX.X and general anticipate administrative $XX.X million and expenses

core expenses, an the an upward this change terrific accrual performance. our realizing not based on quarter, shareholders As returns. indicative and by any it’s with primarily absolute in relative of total rather or increase It’s unusual our that are share our the G&A indication driven trend strong is pressure compensation in

would turn Excluding underlying the XXXX $X.XX that, Operator, back have our reflecting try actually to over there? share, of this With change FFO strong performance to it G&A, operator. Chris. We’ll the business. guidance increased per again, we by I’ll are you the that

Operator

Bank Please Sorry of about America go that, Feldman first Gregg. of Jamie Lynch. Our [Operator question ahead. is from Merrill Instructions]

Jamie Feldman

morning. growth Good Charlotte, Austin? all said Tampa appreciate and know you color the Did rent and you year-over-year you. on thank in Atlanta what Great, Phoenix? give rent was I I growth.

Colin Connolly

to And Jamie, favorable seen our X%. of or – in morning. our it’s Charlotte lower CoStar that the really rent down of bit trailing according say, really, been the I’d I approximate But about right good would specifically portfolio Hey, across if over markets been Atlanta entirety the X% on to X% the Austin little X% been you we’ve I Colin, that around months. all and There across and a Tempe, have on would a X% you at last growth more outperformed is that XX has it’s would side closer average of markets, course Tampa to has markets. average, of whole say, across and them. and said our the see Phoenix numbers so X.X%, about drill the months in XX X%.

Jamie Feldman

Then then expirations, – to of XX update guys larger last so. some your also or you guess, the update I really larger of I working just the just of have call. there? can Okay, didn’t an couple hear some leases year about on helpful. backfill last you the And talk that’s the been – an

Colin Connolly

progress to speaks really had we the space really that and we’ve that bane real some with we FLEETCOR touched talked I move-out, that it on Jamie. backfilled the It think, the prior And estate calls. – continue on to any Sure, quality of good Richard got. make the lease about

So who year, we will previous be as of XXXX, we forward in moving in balance have look over about talked feet. June XXXX and CBRE, of kind that’s XX,XXX calls about this out the of

have JLL will the feet here XXXX in backfilled But Peachtree move-out. of and that T. got real disclosed, is of end entirety next floors expire as estate, has at one the in other successful Price year. the those almost year. proximity that that and space of kind January then But Rowe prior we’re floors really there two with of XX,XXX when two given to has of our quality only touched we’ve And the backfilling expires Terminus any of CoStar urban we’ve square we we’ve two on mass really really, We I spaces calls or and move-outs, up, transit, had expire the at would as conversations said, next been folks. year. locations,

Jamie Feldman

Okay. an whether I situation starts just on for oversupply And of the me specifically construction that market you seen next your to in potential uptick couple of up and in guys years? new we’ve then just how there thoughts last think sort about think just could from in Atlanta. want you Midtown end get some you in

Colin Connolly

Yes.

think and And of our the that’s excited to continue that XXXX of about back space very end reflected XXXX. the at be which of will entirety I certainly get in purchase we We Peachtree, bullish Midtown.

But BlackRock we’re price excited reflected very at foot enthusiastic was So really space of we for And in that as at in very and that an Midtown plus square out speculative Southern very look a grow perspective and has to Georgia being There there, be $XXX to to X.X is said, under it market and it, large spoken space still probably and pre-leased a for on, attractive customers others look the as I think been a from I’d overall opening that’s continue transit. at tell that to be feet that cap moving mass point. the Anthem, as about re-leasing million XX% That is square is much million Midtown look broader and Norfolk space, rate. the that’s to purchase whether close some today it some we who regional been Starbucks demand-driven overall there or to and XX.X% feet our a X.X at you price be is officially. into the you’ve it’s about there in looking we close a But headquarters, effectively think construction. touched uptick had and construction. you Tech,

So will strong that that, I certainly think be we’re by met optimistic demand. overall, supply very

Jamie Feldman

great. you. Okay, Thank

Colin Connolly

Thanks, Jamie.

Operator

is Blaine of ahead. Fargo. go Thank Wells you. Heck from next The question Please

Blaine Heck

the is it as as you just to mentioned Colin, are Norfolk is? morning. you kind once XXXX out ask in this I’ll XXXX, Good take forward enough or redevelopment plans point, Peachtree, do that. Thanks. moved at that you Southern for any that think about so of going see there of At space market there end demand

Colin Connolly

it XXXX has few them Blaine, that as us bit they’ve significant quite Yes, building space. re-leasing that for of of both updating building, a – the and a modernizing as the a tack as the Peachtree well-positioned Norfolk in in [ph] office is Southern invested back and headquarters house – to has for regional well capital. served years very go without

put don’t it multi-tenant be consistent to our team, think we’ve done amenities and in that of the a you’ve and other it that, as seen some our the we on multi-tenant in about future whether some we’ll again amount pretty as to of re-leasing with that that acquisitions. building will touches lobby buildings some ultimately, adding our some space, value-add the I effort. Cousins of investing So, significant we leasing But a of be other think capital to look in what

Blaine Heck

backfill any And what we job Can Great gap you guys mark-to-market Bain paying? the space. color that’s was there? commencement that cash deal Bain in should give you the when on Great, on expect versus on of helpful. the saw

Colin Connolly

the as feet. but about XX% So, lease three Blaine, executed X%, the mark-to-market. for we you look consistently portfolio delivered as we’ve and portfolio never whole, past, obviously the in as we of during as the square said we’ve disclosed And And consistently in mark-to-market, kind market is kind of kind we’ve leases to a cash XX,XXX that. quarter, whole, at below of years, a X% that the delivered X% the specific last

their get So corporate FLEETCOR we were a that’s excited Terminus company momentum terrific headquarters Terminus. got think global a there. be testament we to and into like will and It good we’ve to

So at that second-half rent the mid-fourth an kind occupancy lease FLEETCOR. quarter commencement commence of year, for will the and of for

Blaine Heck

we one Last development guys talk for helpful. done recently deal. have that’s Colin, opportunities guys have digest me. the you a lot Okay, you a Can and your to great sourcing with job of continue you obviously ability TIER about to now, focus a of should the or investment your opportunities get Cousins process, in transaction TIER advantage portfolio during you the investment of as under this guys your belt? of a legacy activity maybe pause kind to on bit in taking expect

Colin Connolly

opportunity to is couple number and transaction be opportunity just we thoughtfully strategic that Parkway for priority forward. integration, with us we’ve a the great the forward move to transaction, clear, got that Well, it experience that process, given to years TIER integration look one integration, of – – do ago. to as And

or development on is both certainly to acquisition our Cousins, side opportunities development, here continue fantastic that in we’ve a confident I’m that timely do be to management come integration So with able able got team the team of and out. timeline at way. laid synergies a and investment But our attractive to consistent that that accomplish will take asset and manner, advantage so we’ve the

there’s on to in those ready capitalize land arise as parcels, we’ll as – our we’ve in past, �� in with of there the that and continue them. we’re opportunities and be said demand-driven plenty spot focus on a And intersect terrific strategic to Sunbelt. we’ll the So demand

Blaine Heck

great. Thanks, right, Colin. All

Colin Connolly

Thanks, Blaine.

Operator

you. Please The John Thank from Guinee of Stifel. question next is go ahead.

John Guinee

you Thank very much. Couple Great. questions. of

to it redefine about starting foot. looks like a Colorado, $XXX You’re

these are I to about Avalon markets, these to particular of foot. it days? that compare you’re in it in them those aspects then what – numbers a in expect are costs say, build build or product low? unusual a where representations buildings or domain, or good if future, How those about these do You high – make markets mean, develop costs the And talk what while started to just the Buckhead ago, those to there to $XXX you

Colin Connolly

you ultimately great John, XXX and Austin Yes, be it’s are very quite a which in lead more pointed the is a XXX can the there. pricing CBD, that obviously Colorado, to where Colorado Avalon out the different question, expensive. XXXXX land and bit projects different

In addition to that, podium is Avalon project adjacent the versus XXX of XXXXX kind parking. has place parking garden Colorado

as quite trophy urban products submarkets typically benchmarks a we highly range product $XXX outside be just a projects be our good cheaper. the as something a tick domain the high-quality in a our but broad would over to amenitized kind at the would bit to that across foot, brush $XXX to more maybe foot. it So pricing that’s in would pretty say CBD, stroke out be expensive. Projects I’d a like look there’s $XXX tick of roughly would in to of whether use quality build be market. Avalon, bit with a $XXX mentioned higher would Austin I exception land be Austin will a mixed-use

John Guinee

you days? do an thoughts? did it’s missing opportunity. of like you a a in into Do question, than next Do these Southeast, feel you who – the what I Then more few the you your the Okay. ran you runs weeks WeWorks the are – Gellerstedt a guy Do ago. how ago, while think you idea WeWork you’re about that do think think co-working

Colin Connolly

into for in space demand a Terminus importantly about occupy up users permanent expanding and with And our they enjoyed to done think I here co-working buildings aggregating longer-term to more and we’ve purpose has create that serve or of relationship those and perspective, Atlanta positive From some in that wouldn’t view with underlying some they few from them. are otherwise have quickly. John, Yes. discussions customers a look few well. gone three They’ve space. whether some had filled of we’ve a favorable space a we’ve it’s us, have there seen floors smaller graduate on a good and WeWork perspective. good that to we’ve at their continued able of spaces, WeWork. – in But groups industrial And our who handful of from perspective like Terminus be a they

larger And co-working accordion building. that project space. I a feature think, in It or some about our enjoy provides swing they as having needs feature nice of a specific think customers,

some view with large urban amenity. in customers, they so an as respects in And these settings that

careful but want to to very others be about today, of we’ll with just additional the decision. continue to the our of some other we portfolio. opportunities but or underlying co-working about to X.X we that’s about have in co-working, sits been and and not a WeWork business, talk Now we’ve so exposure credit portfolio, And thoughtful it’s signal it an overall the

John Guinee

Thank Great. you.

Colin Connolly

John. Thanks,

Operator

Thank much. Next with Rodgers very from Baird. is [Operator you question Dave Instructions]

David Rodgers

Yes, good morning, Colin.

percentage today For with you of Southern? or to be of maybe that? Do terms you are a thoughts about occupancy XX%, your you differently think terms I is regard the conversations a pre-commitment development. question development? And those you’ve Any of Norfolk rate. comfortable in Blaine’s given a level in with XX% nuance guess, thinking kind conversations, that differently, announcement leased having What of to now where an of you’re you’d on development out kind the around put

Colin Connolly

standalone for building ability one of as land one Arizona. one every Corporate site today the Dave, uptown got the out team. and got great in as Tempe, Dallas. in We to Midtown, we’ve broader Victory terrific Center start within in we’ve fifth Well, sometime a day and And that kind the at company, we sites owned Cousins we’ve with at about talk our ownership, here it’s a got at great question four sit a we

portfolio taking entirety pipeline specific So the the we look future square that opportunities company could we across accommodate. about supply, what believe across and what in look the of perspective, we each the several ultimately feet balance that if of at would on make a it’s and what the at aggregate, looks X.X balance be demand it of different those competitive But we look individual ultimately, see an from million factors that to amount vacancy and an decision. space speculative at the a be like to and of try submarket particular one of basis we and and really

look you record each So I at one over they or of another. if And started TIER change look on own. a stand basis the the view at at at a deal, XXXXX several necessarily terms that, know our Avalon project We that and projects certain XX% to individual in way done others don’t track on need like their and we’ve XXX%. pre-leased years, last build-to-suit we’ve our ultimately, will

depend it so of facts and individual the projects. will on each of those circumstances the And just

David Rodgers

regard with parcel And then you at you to Westshore, maybe Center. Corporate mentioned land that the have

kind you With that of becoming that for slowdown the either at or seeing in vacant activity in the known any Center? are particular do space buildings submarket, two larger – you Corporate

Colin Connolly

space. projects that corporate consolidation they our We doing were one quickly the Rowe really I adjacent And being highlighted Corporate certainly, Corporate team not Center the been as re-lease of space to haven’t Mall to particular, and announced, was T. activity amenities brings. Center that to all in of and very the think, handful adjacent leading a high our out in uniquely the airport, Price And able is it’s of perspective, at from the that has of Tampa, best Corporate terrific. if in demand pretty Center, Tampa situated

Center whole certainly looks Corporate available, V available look Tampa. is we’ve grow space large it And quickly. looking very in the and expand so if are existing space getting who people And of users in to from as seen, lot forward without several buildings, comes backfills a

David Rodgers

the for question the backfill DFA Charlotte. Last me, in for color. Thanks

gave an I I you apologize. update If missed,

the kind activity of Just there? on curious

Colin Connolly

been has active. Charlotte very Yes,

challenging as DFA calls, we first expiration quarter. a move-in space new that that the little a here been of mentioned on space, has the delivered of the so our the prior of bit few the and projects and balance we in trying to for to the And team time sense just in

whole large Charlotte out space looking that kind active users unfettered of access space. to has has defined for some and available. which So and got like of customers I team for is there the think And seen market and another Allie into a space of there’s move large very as you’ve [ph] been some our now to got kind to – now has be that timeline, kind

that And quarters, level think think real preceding particularly got perhaps we’ve by was definition unknown. the so the over now still and I that available, it I on we’re an DFA encouraged it’s of the space with activity being of bit a

David Rodgers

All right, great. Thanks for the color.

Operator

closing Thank to Connolly questions Colin for you queue, and the back gentlemen, remarks. some very so there I’ll are call in much. turn the All further right, ladies the no

Colin Connolly

June the in everybody’s We to a rest Have ongoing and you this morning appreciate Cousins look We’ll support and York. forward many of seeing of the at Properties. NAREIT your great New of interest day. time

Operator

Thank you your may disconnect today’s and very now the presentation attending conference has Thank Ladies gentlemen, you concluded. now you lines. call for and much.

Cousins Properties (CUZ) 26 Apr 192019 Q1 Earnings call transcript