CUZ - Earnings call transcript Q4 2020 | Cousins Properties Incorporated

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

Operator

Good day, and welcome to the Cousins Properties Fourth Quarter 2020 Conference Call. [Operator Instructions] Please note, that this event is being recorded. I would now like to turn the conference over to Pamela Roper. Please go ahead.

Pamela Roper

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

future that, on securities SEC. available Colin to of information, potential available the the did contained matters If forward-looking the Relations forth and regarding aware in or risks, yesterday, significant with our statements duty SEC factors, statements, a report and declaration events a turn are result through materially The federal duration to the the other and are pandemic is new of XX-K uncertainties the meaning receive risks With any of discussion detailed a otherwise. our update undertake in and call results on documents the related the a statements and Form strength supplemental be quarterly COVID-XX the not Connolly. any within and and does not posted statements forward-looking from due full The recovery timing there our and you information of discussed of factors supplemental risk company particular, the these whether our package uncertainties may scope, from. including these I’ll In as links to Investor forward-looking severity page and in of over there filings annual Please constitute set differ website, variety laws, other and actual disclosures copy, the today to cousins.com. of filings. may certain that SEC risks

Colin Connolly

and and arrived morning almost year. you, COVID-XX lives an Thank extraordinary our was everyone. swiftly The XXXX good changed Pam pandemic overnight.

Cousins, we character, same don’t has dedicated consistently they customers our expect team value service been day. said us and At ably reveal last every our I’ve year, the our our while they May the character. of As that crises with excellent communities. employees, customers navigated in build I proud so from our providing pandemic,

communities from foundation Cousins organizations and committed gave important back our on we justice as nonprofit COVID-XX $XXX,XXX focused to to In our social support causes. addition, relief

our Before outlook, addressing to our long-term quarter want a solid results. of highlights provide few fourth I

including office operations feet XXX,XXX rents front, cash the leased per customers. in teams We of XX% with On the and $X.XX second square delivered our share XX% X.X%. from total rent, collected FFO of generation

made in for In of to took for the million a uncertainty to compelling simple, addition, End of land that fabulous solid us acres These year. growth will advantage economic investments sites, Cousins aggregate. effectively in Charlotte, totaling X.X challenging and well-prepared throughout in weather $XXX two to foundation come. significant we the acquisition our yet city RailYard’s operate South several strategy the of and enabled a years investments including for Charlotte in was provide dynamic times with that

strategy. our of highlight principles me Let core the

in that allocation finally to to importantly, premier third markets. on the a about entrepreneurial build strong disciplined platforms be high investments balance have new office an to Sunbelt best-in-class our take value, leverage our and can capital and First, sheet, urban add growth platform operating second, local our and portfolio, where approach focus to

and we in the strategy. progressing strides the Today, Charlotte, Dallas, in of have trophy Phoenix this significant Tampa. made portfolio Sunbelt Atlanta, Austin, have sub-markets We best leading

X pipeline development we million million, terrific a that and pre-leased is have square an of we $XXX feet. build can attractive where land XX% additional Second, sites

the of G&A entire assets at the total with debt X.X%, among to strong as X.X a net in EBITDA both is of times sheet percentage best and balance office sector. Our

to starting early are vaccines While with see offer. of pandemic promise persists, hope signs we that the the

As we only trophy has conviction our office approach our Sunbelt crisis, other of strategy health grown. around the side the

share me why. Let

at Our properties. the strategy flight intersection two and Cousins the to office has the Sunbelt sector, positioned of a driving the trophy powerful migration to trends

While likely to before are accelerate. trends COVID, underway were they these

For states bottom example, through relocations States including and CBRE Texas, the Georgia, and and York, Oracle, Pennsylvania. North New migration We've expansions, also Michigan, were from top California, Arizona, XXXX while large of five announcements XXXX were Carolina the Florida, five in Amazon. Illinois, seen

these confident importance power stages office at the announcements companies in from expansion to with had in with relocations will which of only and the jobs XXXX it situations. new further North Atlanta build California will Texas, aren't X,XXX these fact, a innovative we're regardless, companies add We year record Austin our validate plans I to and purchased and area. be that a year. Georgia office in the the yesterday, relocation In believe Austin And to relocating later just hope of Midtown XX major Carolina, announced that this additional geographic the large expansions with will of Microsoft in XX directly corporate benefit to nearly jobs. in for plans include in shift. And am footprint. we to thousands from of But hub, to see moves Sunbelt early We some West acres companies to confirmed, employment clear, work-from-home. this using Greater

Looking forward to XXXX.

share some me our top of priorities. Let

making focused were on creating space. of progress larger we value our in our blocks existing First, leasing in portfolio, including

our of quality our look upgrade with will recent example we office opportunities for the the acquisitions, to RailYard that reflect through of acquisition this An The Charlotte. properties the strategic future. of in portfolio Second, of is

with older, We vintage, properties. of the these likely sale CapEx higher fund will

which not our time quarter, on buys fluctuations. last our we concurrently, be will said sales could and create able earnings I to short-term occasion always As

our differentiator in integral NAV However, long-term creative a earnings deal-making and to growth. is driving

and Third, will land new appropriately the prioritize meet to demand for in we experiential bank size locations. customer to continue properties best

development opportunities an with towards mixed continue pre-leasing. and use we will to office Lastly, identify eye new

earnings unique selectively in also from we However, and in perspective. with year Austin, components an in The Domain transition like fundamentals XXXX is where strong. are speculative so will for consider migration opportunities markets development Cousins a

move-outs will from Our XXXX Plaza is One recent Peachtree associated well results in the delayed as Charlotte, known XXXX Atlanta, reflect add and our COVID-XX acquisitions now building as America known of Peachtree, in at South financial Bank Plaza. lockdowns re-leasing like which as efforts. pandemic the value the several Clearly,

vaccine rolling with are and the ease, revived interest. However, out, seeing restrictions we customer

exciting begin eager projects. business are reposition to We plans executing to these our

The and Our trends intact. right are the favour. in in our strategy the remains are properties markets

development uniquely positioned long-term existing a investment As our growth we look shareholders. to Cousins value-added these terrific of Combined and value pipeline, beyond, for is deliver future XXXX are to creation. opportunities source with and our

sheet we low ample Importantly, have capitalize opportunities. liquidity and the with right the on leverage balance to

Richard, the always to thank flexible team, applying the proud to providing to past of talented, Before which I They our turning I'm customers the stronger. want occasion, Cousins talents our toughest make Richard? is continued year. service to circumstances the under company and their day call dedicated, rise part each over and work over to excellent hard our to to Cousins. be

Richard Hickson

to Colin, year close of delivering good with operating historic one overcome. results, fourth challenges presented a that quarter Thanks, reported solid us morning. every to a truly constructive and We

on begin I've by you As business couple conditions. general I the done quarters, will for updating past of

to reported on company, the approximately track our XX% at October. utilization update our average utilization XX last across line an an First, million-square-foot within customer levels with of squarely in operating continues portfolio,

materially Rent Given until utilization widespread highly past cases the of efforts. are and used higher will sensed steady of running last quarter. COVID this XXXX move from office as in of consistent well. through far increase we've utilization the and Like the at collections vaccination were collected over not encouraging. XX.X% from that in months, the customers be couple period in strong again we of comparable this XX.X% levels half Collections XXXX, second quarter. quarter, as We should on dependent all and rent fourth customers so rent

continue very represented contractual to annualized point ongoing rent agreements X.X% few the rent fourth have deferrals, at largely also And quarter, for our rents customers. deferral this rents. we're just XXXX. which to of only contractual X.X% are In all retail limited of We

Now to turn let's operating results.

at this XX.X% occupancy portfolio portfolio to up into total XX.X% leased property fourth at the property Total at and solid the moved same steady leased. weighted-average XX.X%. with portfolio a same portfolio Our held quarter our quarter XX.X%

expect to Colin be referenced, transitional XXXX a we As year occupancy. already for including Cousins

rents of final South and XXXX, operating XX While end Plaza Bank of One in Charlotte. at with in only of our such contractual at annual vacancy, expire at Peachtree XXXX includes representing value-add feet about space America in South investments the portfolio our known Peachtree and occupancy. as of XXXX, basis square of XXX,XXX points expired the One X.X% portfolio XXXX pending XXXX Atlanta The

be XXXX. deliveries, of notably weighted So average positive some we will in we note impact our XXXX, long-term beginning lower I in that, in only as also In the rents XXXX. will said, the most of contractual lease up the quarter will late our that Austin. we a space. as to Colin great occupancy commencements On known create occupancy blocks would lower in to short, from occupancy new we domain each year reflect XXXX these of first compared opportunity have X% top at see annual through expiring a value XXXX. But of in have or of less

this saw and new activity bounce all, year. XXX In in a quarter. the quarter development an end, expansion and million fourth Terminus quarterly with in we our leases Plaza leasing said, Notable over the and square feet renewal a Mill lease of of again activity a new once signed the Charlotte expected, X.X that of at As XXX,XXX impacted pandemic also leases quarter feet over included After leasing fourth overall quarter the Atlanta. new volume we the Tempe. during at NASCAR in Amazon we With for of square NASCAR encouraging in renewal executed in slower. and

seven was lease year. X.X years, term years full it Our for average and this the was a quarter healthy

the strong, cash cash between and Lease than foot within came were average on per remained rate in the tenant Our year quarter, this our new concessions net has for lease for growth defined continue rents meaningfully lease foot. square and quarter consistent pressure basis solid With different Nonetheless, our on was was rolling effective XX.X% of run generation X.X% a net in to around increasing and years. negotiating year. concessions square a for as basis $XX.XX with and pre-COVID normal especially average. X.X below three-year average concessions. past we not our growth operating at rents most this per second quarter, rent per portfolio free Rent our the lower fairly pandemic in renewal activity than feel term and improvements $X.XX eight-quarter rent

higher beginning only of rents printed net have effective in the We since quarters XXXX. other three

sublease and meaningful as vacancy we continued ahead, overall As economic there is signs recovery look despite are of our hopeful progresses. each year that availability, markets and headwinds in possible the

and in few. provide examples. Let and a to hub job Oracle's clear a Austin, has name me to in There major ramp office Atlanta, Microsoft sizable relocation commitment announcements, just new relocation East some in growth been Tampa Pfizer's Coast Sunbelt

out This employees Charlotte returned December. country have compares office the and are to Uptown focused during earnings company are Across for – emerging and rest XX% clear headcounts vacancy important said from quote the recent the of company's rising call return counts get facilities. the X.X% board, expect the feet to XX% these ahead, Class of Dallas Also Austin. only the the levels. both than normalized we the be the more points faster of the space the in are It a of respectively. off to head XX% Northwest rates at back Even million above and impressive, domain. sentiment, coastal tenant market already their pandemic. does of executives office next requirements CoStar, JLL, still from expects that and employment not the and JLL, there requirements construction that stay example These to one clearer to three X.X physical and launching remain real fit grow study, in to when to Austin For Dallas due due ground-up it of XX% pace look According In a in social most this Tempe CFO rising to almost have is social than a they in or more on the XX% and X.X% low of as currently markets. in the office distancing. any that. same notably pre-COVID-XX emerge to over will CBD great estate square over of A recent footprint Google becoming years PwC would Per recession.

our Now, some color on leasing pipeline.

the companies increased decisions. Buckhead teams real development of since willing seasonal inquiries and pause the COVID longer-term Midtown, had as have upticks early process the and have the ever beginning noticeably still of noting with the and calendar Atlanta begin activity we and interest now making busy fourth a in every of stage inquiries The headwinds, seem year, quarter estate one While have optimism, most during they and again signaling been. that Tampa. markets Austin, noticeable of our in Economic high as been signaling they're and to are

renewed in As activity transitional In I cautious can we enter multiple albeit though, said lies sense summary, with stage mind that quarters a optimism often keep to what early last quarter for a XXXX of take ahead. evolve.

my want to of Cousins’ with competence, Thank amazing you how I I you Gregg, resilience, to and did all pandemic of this for that who success, make am Before to say XXXX handing hard Gregg? a responded work. all teammates, off have proud to

Gregg Adzema

adjusting growth share remained pipeline XXXX. $X.XX Thanks everyone. our of our begin providing the at XXXX. XXXX quick for the $X.XX was up was NOI with and Property solid X.X%, FFL a for closing Same it during and our our Property our cash share pandemic. the onset detail positive Richard. a followed very my were it on of all remarks well Good development activity, on per and with leases per quarter rents by when for was performance, related remarks up transaction and cash XXXX. Same I'll my impressive earlier, numbers for held XX% by Most X.X%, deferrals parking by a some overview of for losses. information results, on relatively COVID our financial since over solid all Richard morning, as balance quarterly fourth we rent sheet and including said and of quarter during as dividend outlook discussion Overall increased expiring that brief

revenues net cash Focusing Adjusting rent the NOI COVID parking Same quarter a our in fourth driven Property cash year, a decline on X.X% and X.X% declined by to losses, expenses. during actually for quarter. during and X.X% compared Same performance Property deferrals operating the in increased decline income related last X% fourth

Same past expenses to work I take moment the outstanding property moving with controlling by during Before done teams the highlight wanted a our to pandemic. Property, management

and Same XXXX, X%, terrific expenses XXXX, the are expenses almost during of times. operating XX%. were taxes, down all For down challenging results These to Property were compared excluding property

as Domain Turning The that development development represents schedule development across fourth to Cousins assets. X.X our pipeline in efforts, one XX%. our property in square quarter, a $XXX investment total asset pipeline XX Austin million million, five occupancy at was moved feet the exceeded off economic during of remaining

than for this our commitment retained million, funding remaining covered liquidity and by existing is pipeline approximately more is future earnings. Our $XXX which

land of as of $XX million. the in two parcels three On as the purchase transaction the purchase million, Charlotte for for $XXX closed well we the front quarter, RailYard acquisitions the fourth during and Charlotte

the parcels leave was loss In interest is parcel acquired it incurring when tract sold our strategy and in a in different land in One residential decided non-core years over course addition, company golf the Texas approximately a to of ago, a the was than was that other XX small two Georgia. $XXX,XXX. we today,

sold adjacent Atlanta non-core we completion in eight only one our over and inventory. of these land developed A ago. to the North tract With center, shopping parcel remains sales, in years a subsequently

do remains peers. is without among low leverage, well we and financial our Square loan five near-term and a office the our very Chapel Not selected at of liquidity this the weeks. property have We've debt sheet, position next this strength, Looking strong in dividend few of period maturity balance the in entered best loan volatility at we closing rate The only our anticipate a floating construction our lender new Hill. year a covered. Carolina is only asset on standing

sale to For held the to highlight discussing have moved classification an yearend. guidance, earnings of XXXX I as we for asset that wanted

As part REIT a Burnett It for in TIER Worth property was is Fort of as we've non-core previously us. holding in the our transaction mid-XXXX. discussed, acquired Plaza

will this of the sale which a pursuing property, close actively hopefully of year. first during half are the We

timing However, the marked the in This GAAP, approximately decline uncertain. disruption to the asset, markets, completion reflect closed valuation. Per down ago. we Burnett energy since we which a is impairment reflects not value TIER the Plaza remain sale X.X and of of its current have years value X% for surprising the considering market to transaction the

per accordingly. our If update between and assumes physical guidance we initial in that half No this do transactions guidance of remain earnings occupancy providing we're earnings below take second forward, $X.XX acquisitions, Looking levels note or guidance dispositions significantly Please $X.XX our XXXX. of will guidance. place, the XXXX development FFO are any until normalized will starts share. also included

anticipated a increase result, are the year to gradually quarterly As progresses. as earnings

forget that impact on the the the me kick during first of With operator XXXX, during year-over-year performance call quarter be until let quarter won't all to over as oranges XXXX the an the that, COVID really earnings don't claimed turn Finally, our quarter back of comparison comparisons XXXX. to didn't for the questions. apples including your numbers it'll metrics, first and into bit a of of be perfectly second

Operator

[Operator Please Fargo. Heck go with from The Wells first question ahead. Instructions] Blaine comes

Blaine Heck

morning guys. Thanks. Good Great.

good news just Colin Atlanta for talk hub. consider would and in make guys making As prepared from mentioned West might area that this Bankhead their Microsoft's you confirmation any you you'd that Park Atlanta plans that got remarks, about you Richard, whether Maybe Quarry your submarket Microsoft's Coast in East week guys investments or some of to can activity? and with benefit

Colin Connolly

to thrilled the yesterday. works, think for were be from we city idea see that and overall the I Blaine morning good including say to side going and had some the terrific just West the in it's of Midtown. We me let Microsoft was first announcement Well,

If to a because step city of Microsoft’s and in drove the testament and also as what the to base but certainly at hub, them back recognize recognize composition the announce technology really whole, that here you large and they is Atlanta, look in diverse talent decision a the this they talent Atlanta.

And they companies their think continue and see themselves want suit. I so grow and company hope, that And to think we'll other align follow here. I to with I

And our we'll project projects if that out of were it the is West that as investment for look side we way town, well. and watch if So opportunities that in think to some continue to unfolds monitor there – warrants. on other continue we'll

Blaine Heck

All right, great. That's helpful color.

kind inquiries. just And do Bank interest the of Charlotte? of have of can space? the stabilization you you But envision you had taking guys pointed seeing that do interests Secondly, a move based you're XXX,XXX on – how you outs sense square any have in far. discuss tenants out that's not take? one many the how that I think in in where And thus expect I America markets of should feet any guess, space to little we that there, return you of to over Richard a long that an uptick

Richard Hickson

this I'd Richard, I'd happy happy really to is be be Sure. quickly. – on to touch that

right, inquiries areas. stage activity. most isn't I'd that optimistic one noticeable early the to Charlotte there more activity, that's of upticks being as of and economic development in I that's But think out one call good not you're specifically been say I actually didn't the say

getting in lot Charlotte. of they're inbounds think I a

of customers, whereas multi-floor pipeline have we've the – smaller mix of when really look and in say is floor at a of users. potential good larger Midtown, user, a do we you so, recently more to Buckhead And Atlanta South for where full so now mix right seen it's activity I'd One

One able of and still to feel kind and the depending there moves, about of we we and lot prospect of at new Charlotte guess, on Charlotte, value. a rents vaccination tire recovery creating pace kicking stabilization pace efforts and great up and economic really about again, long-term positive South being these value the anybody's the of create of lot other feel is of efforts a So of the inbounds into in-town rolling that but

Colin Connolly

RailYard up banks think at Charlotte they've really that think we some over think two, more forward that I Blaine, longer-term perhaps their the or or you been that drive certainly on one market of in I the as a in in accommodate, pretty of side by of market. lot about add the reopening, office kind I'd interesting the terrific use two pace Charlotte South in Richard I’d particular impacted attractive fast the will that think And Charlotte. mentioned, that as picking highlighted the that of of projects. look really has end uptown acquisition the and our mixed just quarter a as sites in offices activity But back conviction and and market we cautious and that leasing have large we and say of

the in believers for we're sure. long-term So

Richard Hickson

thing other have quickly mentioned phenomenal a does still but particular one Charlotte And just my I reiterate. uptown in and I'd rate. remarks, in vacancy sub-XX%

market when the very pick and in particular positioned, overall to are well be So things up, going uptown do

Blaine Heck

the news All and helpful. for space? with layoffs. by all associated And had that's recent any Energy, discussions space interest and their additional they're lastly any you needs acquired and being Parsley subletting Have the right, about in guys with maybe Parsley me, around Pioneer then

Colin Connolly

it's we’ll entirety has very the of consider has a thrilled We’ve great a a now inbound we’ll And our of XXX a Northwest. in ours, you feet of for But think the now And fantastic we’re of remarks, for the Austin great with Pioneer Colorado, some as seeing friends we've outcome lease But the question, long-term of situation. continue seeing got customer. XXX,XXX sublease I obviously Great some I if dialogue we have terrific think activity interest their we're reflective investment great they Again, prepared to again, in Blaine. partially ours time purchased by interest market. have And whole. as – you're and outcome a it’s our Pioneer those. and that a significant we’re But I have and closed absolutely particular those project an put in future. we’re seeing already the come and the But in are delivered But a got has the Cousins, and long market on there that is project. square office grade been in that customer again, of with way. opportunities situations think a that them. CBD touched

Blaine Heck

Great. you, Thank guys.

Operator

next question Rodgers ahead. Please The comes with from Baird. Dave go

Dave Rodgers

Good Yes. Richard, wanted you. start morning, to I maybe with

a You’ve sit talk them what the in leasing mentioned. done that’s about. space? concern, locking normalized? lot major the I guess, moving tenants just renewals with you about in are more safety? it quarter, doesn’t like. I just good mean, the Are as any of in it to terms you really primary concerns it kind Is down really is as it kind at pace is of they reflect economics don’t or certainly Because of amount seem worried forward a of configurations more today

So conversations kind are sound like? of those what

Richard Hickson

used we It’s economics our statistics are kind that at you’re The and ways in in XXXX COVID not pipeline in fact, of a good they’ve some approved. different. and right. question in our meaningfully really looking –

conversations customers pre-COVID. one, really gamut. still So lower volume the I’d runs in our it that right, than say I our is mean, with

configuration of wellness would appropriate, new technology There’s – not of trends. with their dig implementing of of and works. kind try now most there’s pressing wringing into a air and with be But they it collaboration and hand new that on experiment fruition. gross how quality. company desking. company do be, there’s But that potentially concerned depends much I think you to But the from front come it right change hoteling hot hard how view not it and of over as to Is that’s or to tends what and culture around less nearly if generalization, people think normal, even and it on will a again, and the space, with might I So are data how is focus, I spot they something around a will. this that. I for tends And and to say, but to mind think eventually their that,

So regard my is what that just COVID, of to do, really that and changed with culture, really, more of in how their it’s think And as their company how the frankly, the about day, every collaboration they decision-making, little more space really and end a I before than view opinion. like and business they hasn’t dictates different at think anything. they a

Dave Rodgers

No get real options in in terms to a tenants I anything of get we’ll space change mean, the opt certain that. in maybe like out we out time. but seeking can a kind to or pay earlier point maybe economics, at of,

Richard Hickson

certainly we’ve some Is would I were Sure, it but No. sure. flexibility. really X, XX? Everybody – been like a flexibility, different. is for it more mean, if think we a it a at hasn’t I asks seen meaningfully

Colin Connolly

it properties, overall quality experiential a think take in terms But And that of pretty and about little product make back and got really on with we’ve office of really, And a lot through we’ve completed teams bit that approach COVID, and changes. major see then to higher average themselves Dave, see X.X reconfigurations is many customers position flight I’d meets in to I just space, term think the get I think add, our couple amenitized continued consistent discussions properties, the it’s Colin. When is customers you through rate. to – look a we at leases seeing really years properties. our more the of that to run quarters, next And accelerating continue hopefully demand. long-term to the any get with their their in our trends, a of wait we you’re better to

Dave Rodgers

color. maybe Colin, that all you appreciate again. I with helpful. That’s

opportunistic, or three of be oriented mean, today. build you’ll they talk terms to continue How On the speculative what development over But select obviously suit like quarters I four mentioned for have to guess, in discussions, or build to look discussions last suit those I the think I evolved even about opportunities. discussions customers?

Colin Connolly

of and Yes, those some great the And last back opportunities. down actual it’s it now actually somebody realistic plane but with the experience or start and get question. look getting in year, to discussions, they’re of transactions kind think Illinois, of and And where, conversations on discussion on a of point a much to were having I in get to come be we’re COVID who’s as might I a unable about to California lot there the ground. and

execute types it’s hard transactions to over those of Zoom. So

corporate I I as markets that and focused their – more The the mentioned And space think As they that other and to the to speculative what’s build with the successful will large hopefully these control now some be be like some opportunities some an own at look and think you relocations, a opportunities. companies into look evaluate they desire the to in increase the hopefully I Domain. lead can vaccine control will, suit West particular that seeing execute control have in going Midwest opportunities are I of rollout, we think hope interesting, to markets out that our But to maybe environment will component as and there we to suit identify is can security. we side, Coast for build lot large look of or again, some And – can targeted opportunities. on Sunbelt, the a are where on to

Dave Rodgers

details Last I’ve in Do that? mentioned at any been Richard, any I you script, details on XXX Mill. additional on you but here have the activity that? on think your

Richard Hickson

lease, are XX,XXX Those square feet. Sure.

to to existing a there, Ferry. excited wanted actually customer Bank an accommodate and customer portfolio at or other needed expansion the customer the was context Valley that to at that there. about this And accommodate an think move expansion. to I And accommodate to XXX was over Silicon it Hayden Mill opportunity we was

Dave Rodgers

you. Thank Great. Okay.

Colin Connolly

Dave. Thanks,

Operator

Michael from next comes go Securities. Lewis with ahead. The Please Truist question

Michael Lewis

you market anything those property for you’ve acquiring Should sale. into we partners Thank be the you’ve to in this or up that I got you. got mentioned know Burnett selling couple a know, expect or one Gregg, you’d Plaza few interests. your a in your interested the either else be if in just don’t I year? this? asset now Houston, stake

Gregg Adzema

good Michael, and morning. thank you

for of an sheet period running our know, you want has we kind As balance been extended where of time. it

won’t it a balance attractive something, to sell investment a fund beat opportunity. of be So the more to fix a and sheet if we

to sales think opportunities. our will identify so I upon those investment depend And ability

Michael Lewis

or is if attractive York the desire targeting sub-urban. office all? its Florida urban thought Charlotte was interesting at same I more Denver going about And with apartments Residential are are of think, pandemic thing feel, and a to My do a that coming yesterday, doing Do little apartment need more potential South I But the not as there, is New question, those out you exposure then the second other talked as Okay. urban the more it obviously balancing targets if urban. become well? Equity guys

Colin Connolly

urban the uptown is structural structural and Both suburban great Charlotte getting of – versus let's of kind say kind fewer questions, that Michael, suburban submarkets. to agree suburban into and suburbs There's move it into from relates And suburban and I New a biggest York the challenges difference in Charlotte getting those Manhattan to Charlotte. New wholeheartedly between of versus that barriers far York. suburban, difference there is I'd urban would say

data up. commodity a demand in XXXX markets no study And markets not and the of out our and pandemic they so, And we've really we've long the relative the well space it urban both attract look suburban the amenitized difference the in at can was as nationally. And are customers not type markets want CoStar core we more put the to that have and seen outside looked data young where year. urban and to really talent just and too market at prior of kind in backs choosing suburbs. ago in experiential they studied move in looked to there to of the

quality, focus assets amenitized to that highest talent going are going the the again, really to attract growing to continue most we're companies that on, innovative So and want.

As to of demand like drivers other looking South In following places you talent Florida we're far population many looking the where as to kind talent move always at and are paying companies and locate. again, cases, growing attention the move they're Denver. and seeing are and markets, to

over clearly are opportunities or radar bill that watch including a as that places expand time out. us we got grow we'll like that other in So as hope fit and today, well presence on There those Dallas, continue play are to where small but we've Nashville that for our to markets see to Raleigh-Durham and well.

Michael Lewis

Okay.

one to companies everybody's the do your have I maybe maybe, not So to employees move York just to they are markets because And said more, you if Colin, work-from-home, So interesting to want. let relocating interesting about work-from-home. something right? New whatever that's you from going headquarters Francisco San and

maybe So debate. it would settle be work-from-home positive, doesn't still it but the net a

the your What about you Should there, little change not. look attractive to able want does your or to careful be this new because environment relocation headquarters so a at activities? on work-from-home move that? whether thoughts way to we it may we that are And

Colin Connolly

to would the again, the look and again, downtown large hub a of you community. Yes. a Microsoft Austin, land headquarters I on enhancements examples they right, the retail hundreds I like with affordable and build Oracle their And And that purchased land. way and I of of at to to purchase what's and is acres the offices point of airport kind look housing build specific think outside to would from to most that corporate just acres intent other production to if just moving of campus. Again, put happening. And recent came things with the of a to to their along announcement yesterday XX build into regional of

teams an actions and So committed that creating to they're people are their bring demonstrating their think together. that, I their environment to

York, perhaps perhaps together, commutes shorter you hearing have over the you're as But the are living. can singularly you're life. cost Seattle look distribute or lesson market some same that debate very culture who and and what have in is New costs in frustrated is workforce And to in-person. their and in are Francisco across markets come is, collaborating other seeing clearly or sense companies and leading who of living you commutes mentoring the and one like But is, to markets perhaps of San are what companies in the which Our lower team recognized the are certain I building challenging and of be country that over with to of out focused their in don't that benefits the of the offer past office. quality many by year. of at office last the amenities year COVID What having employees there think a you of lot

Michael Lewis

It sense. Thank makes you.

Operator

[Operator ahead. Instructions] The next question comes Please from Jamie Feldman America. with Bank go of

Jamie Feldman

with bit how maybe good morning. whether color for was the in any you Great. little there's hoping the through terms and start guidance. assuming the on for by you walk XXXX? a impact assumptions large and thought Can of about occupancy Gregg, Can Thanks, have us quarter large that get you the the the to year? what more you some of and you're vacancies maybe on lease-ups you guys and I

Gregg Adzema

Jamie, our we and good today. around COVID granularity occupancy Yes. didn't provide with comfortable uncertainty not the introduced question. is morning. pre-COVID the level of That Appreciate that behind something providing guidance we're

what guides for As the now more plate we important to I was that year we've with the think up you. step a guides. But And that's to provided. we baseline our giving details and actually progresses, it anticipate behind thought right provide we've the done

Richard Hickson

that space great but to of you to space, Jamie, have. it year. hope leasing make you some June this work until the expire the that the space XXXX, we of look blocks of Again, kind year, the doesn't at until that of Anthem And we've of as actually backwards, then relates progress if it we this as Norfolk space at Southern year. the back end don't get

to to So going impact it able see and with it out. lease out wouldn't the realistically, of by – tenant XXXX. in you're that either that improvements space, an I fit being build being those time,

the have Bank space. America of obviously, of We’re some

year. over Now building some the back hope is particular our in we make that can the progress course of

Charlotte resumption and Dallas and hope slower think Atlanta I in make activity our perhaps than Austin, would I've numbers we of Charlotte. its slightly been kind And some progress. has Tampa But in be earlier, in As that hopefully mentioned have. of to reflected

Jamie Feldman

are Okay. the guidance, either that you Worth generally? in that direction really another or Maybe your ask thought could swing the numbers terms sale Fort included it I And variables way, then in about in what when guidance? of can biggest if is

Gregg Adzema

here to XXXX be from marks lever Clearly, the from would pandemic. there's pace biggest So of a the the No COVID again. to how Jamie, question in at guidance the tunnel. I doubt it. lot And But about around there. there it's think, get our of the of Gregg the light are end recovery we

earnings guidance goes lever it be so here. And whether to or that's down and going the of up biggest our in terms from

not a that time. the guidance Plaza of not we the of this midst included our certain they're included sale they not COVID in included is reason. our exact Burnett in typically pandemic, Again, this they're transactions guidance. are actually happen terms No because in don't identify and until at for In sales we're

still nothing of which about other enters we're than level unique there's Burnett COVID the the So of in fact midst that new in a uncertainty.

our to if guides not it in half will, we we'll through the first it's sell accordingly at the we numbers. year If point. of follow our adjust hope we and we're So like in able that

Jamie Feldman

and you'd it I mean, Okay. some versa. find you you do way any be think, you you know that there's or normalize can – get sales do you the maybe you would acquisitions numbers – if said diluted or I neutralize would assume think I vice mean, do Do that? I you

Richard Hickson

the I'll said, And we're opportunities. jump point, It we to hope have acquisition the looking think know counter. as right? proceeds, but we that – depends mean, on there, at will. in any we're all find aggressively we what this some Colin I with we this Don't do hopefully. going have out do at for We anybody

around proceeds. do look what from solution the you a with specific all at when you disposition, specific it so revolves And

Colin Connolly

the those kind And portfolio upgrade vintage, the investors those buildings think and the lower and and of to CapEx of investments. make opportunities that my are profile. of that do Yes. we a a as be, time quality perfectly future to that – remarks, we said short-term focused time the prepared could and in carry over can't on obviously, create some we Yes, creative can't ourselves always the I we've in – Jamie operators very it's proven But But sales earnings. to I – buys. continuing newer find and fluctuations

hopeful look continue the hopeful potentially we're that, to to to today, if some so, the kind opportunities December capital our we did successful – into I to RailYard, ability think acquisitions as deploy aside, over as in drive of identify market And the growth opportunities we doing with as long-term. we're at enthusiastic development and we're well. we're growth about feel and the very put quarter-to-quarter NAV And I earnings think just we

Jamie Feldman

used bought that you you the Colin, me It the for the the office future times call, mind? in like Charlotte answer. last the last including then is of this several it's low And more a your amenities, just neighborhood high building, nearby, the feeling, And means of more feeling experiential term your on is campusy Okay. is future looks you what little exactly what towers. term does land you've which future, of portfolio that here? office shift or you rise, Do the see When of but a kind got most mean? use of office infill

Colin Connolly

portfolios our characterize Yes. is of a bunch No. I wouldn't towers.

about this you – I is across the as footage we've portfolio our think the I feet. square a future, isn't a of average look past And been We on this of why is that's think the some And quite the company year. been going square that's think XXX,XXX office and over kind we've our for have. the time. trend we emerged just that's way positioned that us trend to

We product And where at what at for the think has like heading areas, the we're rooftop amenities. XXX RailYard outdoor their more so at it and space, coming see to our migration with and collaborate plane is work that. and of that continues think building specific It's the experiential. future the like XXX doing It to fitness, And intersection we customers, I both we and or work trend, it's have is more candidly plazas, of the kind positioned floor at create accelerate. ground very, together of is that where domain well think got Mill. whether Colorado, position and of ourselves we're that they or is portfolio puck outside we've play. that been that I be very feel And years the get employees to wellness, more this amenities where environment an and along the opportunities for hard of places can more

Jamie Feldman

Okay.

think looks Sorry. your What you expiration? more. XXXX for one And the just do like mark-to-market

Colin Connolly

seen with again, to is mix market. we've the even clear and some rental is And to in was earlier, erosion we if environment, positive mark to any in deliver got XX% it we've but our ball there below been but midst concessions, a kind optimistic to we've our as We're of certainly in up. that's Richard we XX% quarter. at upon there deliver incumbent can what of face quarter-to-quarter a particular rate X% as think pressure what is holding perhaps certainly pandemic a normalized not is portfolio to we've we've felt markets. the Jamie that – we the successful X% always on of some some is rents. we continue margin our crystal attractive hold seen But Well, And face is leasing too. as entirely pre-pandemic, rents cautiously alluded But like

Jamie Feldman

you. Thank Okay.

Colin Connolly

you, Thank Jamie.

Operator

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

Colin Connolly

your in upcoming Cousins the a safe. the flexibility. and again forward at all, continued investor want and we'll once I you month. morning have and company thank I for great of work investors on thank your you want interest of hard this over weekend. And the the of Properties. Stay you support to many us phone to Thank for look joining of to and seeing all all next some conferences my continued teammates

Operator

concluded. Thank presentation. now attending is you conference today's for The

disconnect. now may You

Cousins Properties (CUZ) 12 Feb 212020 Q4 Earnings call transcript