CUZ - Earnings call transcript Q2 2021 | Cousins Properties Incorporated

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Operator

Good morning, and welcome to Cousins Properties Second Quarter Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be opportunity to ask questions. Please note that this event is being recorded.

Now I'd like to turn the conference over to Ms. Counsel. General Roper, Pamela ahead. go Please

Pamela Roper

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

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

Colin Connolly

Thank you, Pam, and good everyone. morning,

has to seeing the As of back and of we wonderful we the teams our XXXX, to post many office, bringing customers been Labor Day. their anticipate reach see more midpoint it

While health and we the our continue any monitor Delta I on beyond. around also delays public remain COVID-XX by to brought remainder specifically and guidance of variant, about optimistic XXXX office the

Our quarter. team delivered financial the second strong results during

are Here a highlights. few

second-generation with On X.XX delivered FFO. X.XX%. was share increase XX.X% the in increased the Same-property at at debt-to-EBITDA NOI X.X% of leased on cash a assets a total team per percentage $X.XX cash in square XXX,XXX G&A expenses end We as were our a front, quarter rents. feet just earnings over and net and times basis

the business. Turning to

office provide us with long-term evolving conversations Our insight customers and ongoing into those beginning unique strategy plans are their crystallize. to

of customers growing most the are their excited large about to our First, return office.

for not part a return hybrid. variant week, create a just some Delta that call of return we conviction some have the if, to now the While it's employees instances, In the it's office, win. delays, could an meaningful which will

significant the of does days, to in-office estate peak load for real Importantly, the hybrids nature have collaboration, and facilitate model which necessitates are not designed sites a demand. on coordinated likely office impact

most pandemic, technology was and hard this professional it's the firms. already reality office remember the life before While to for

the to more is people are climate migrating Sun is times where are shorter. friendly, business and the Belt, housing and companies commute Second, affordable more

trend work COVID accelerating. the flight and are Sun office Third, existed trading to clearly This and to but migrate to before in to return to Belt, the be quality up excited they're employees to an environment companies as where come is collaborate.

which leasing, grow. signs positive to themes quarter, in in shape, of these our great seeing our we're to taking economic continues addition With recovery

Our has expansions from significantly, both us, existing highly the in inbound customers. of encouraged by late-stage our growth front and and pipeline increased we're opportunities

our in including Domain XXX and our and activity vacancies, Mill. XXXXX seeing Avalon X, we're in higher projects XXXX as profile Importantly, development Peachtree like well XXXX as Peachtree

of financial add a the of long-term trends, mentioned value a maintain provides and simple At assemble significant at Cousins. Belt and pursue urban investments, to which I the had to and portfolio, to us quarters we're the we and flexibility. Belt so be about To past, platform we're As compelling in we Sun migration fortress at disciplined the intersection allocation sheet, have capital balance office Sun premier strategy new two the operating positioned Cousins, can flight development quality. can powerful

accelerate, these As we're responding.

announcements adjacent of Let will of of XX% me of campus ownership Neuhoff, XXX,XXX location, in includes for hall. that square we plans additional Nashville growth food $XXX the to for rights entrance and million a office site Through Nashville. approximately simply parcels. in which of marks exciting an square on a XX,XXX consist It of the and II project XXX and office feet feet of adaptive is it in land recently retail. has feet can across units in experiential multifamily that Cousins includes relationships, nothing component Ponce space Oracle's path a interest represents differentiated that as an a from accommodate future and is River into this is development I There project market. strategic exciting project the Construction space, an already well yesterday. the new XXX has highlight Nashville clear transaction recapitalization Neuhoff a as Phase Neuhoff reuse and from Atlanta. like investment square our exciting commenced unique market. our the a sourced XXX,XXX transformative Phase Nashville directly provides some off-market mixed-use announced Cumberland new of acquisition located

in in and buildings directly Atlanta, XXX premier from interesting one XXX,XXX the view a located $XXX.X of Atlanta quality Ponce, public along market, and property line, Midtown the spaces Ponce We this foot of square across We City asset Company also for customers, feet XXX% highest city's one million. belt acquired interest amenitized office an East McKinsey for most active as the site adjacent including is BlackRock, million XXX and additional development. Cousins in ownership one land to most additional XXX,XXX of the accommodate acquired XXX,XXX to in highly that and square XX% & also $X talent. areas Chipotle. a leased of can Ponce currently

We also Charlotte million. of sold at South Plaza, price XXX,XXX the in office announced sale property foot, XX% that $XXX.X a we leased gross One square for a

might sell future growth. Some sites land team we End South remain First, Charlotte best-in-class and a the South bullish for portfolio, great on now? talented why extremely a and have One ask in

through view, reinvest simple our fully values and in Sun This So an the these our property to new the South purchase is enhances the is, more the XXXXs opportunities purchase the high sale this new, is capital in gives merger to of office a funded a price Overall, interest vintage the from upside highly asset shifts provides and from in leading profile us markets. answer brand with CapEx releasing quality, part property. the from pre-pandemic. Atlanta the products. Belt opportunities. the for Ponce, One transactions, capital of transactions, creative in In value a for best through buildings pad entered differentiated portfolio one development; summary, an for a older as we for Nashville, same speculative have Interestingly, strong read-through acquired and XX-year-old XXX in compelling new and leasing future of an additional these exciting Cousins; TIER price with growth market vintage approximately

excites value We're experiential Belt companies employees the variant watching in strategy grow conviction is thrilled office our is the as Austin, company's Dallas, look pandemic, ever. to the Sun Nashville. of the best Belt recognize of growing the as submarkets any with ahead we're newer, and on impact. Charlotte, trophy trophy have and Sun have space Belt prioritize migration Tampa our companies to office come plus now we portfolio together. position. potential Delta As in around Nonetheless, Phoenix Large amenitized the hopefully continue and office, Today, Sun we obviously and emerge we leading from in strong rise to room the Atlanta, the that

we declining a Southern to transaction Norfolk behind us. XXXX, terrific fees the As will be ahead look from with

and rock-solid are creatively office power is sheet. balance and our becoming We large trophy Belt proactively block clear. increasingly Sun South with pursue the of to One a have at excited addressed closing, In opportunities new vacant

our Before serve the talents and turning the Cousins team I Richard? our every thank work call of foundation and who shareholders. skills entire to They're day hard our over and you. each to and thank company's company want to and our customers their Richard, bring to to success the

Richard Hickson

to good call. Thanks, on morning everyone Colin, the and

resulting This operating economic in and quarter backdrop an saw operating a stable performance. more environment, strong second quarter improving

markets our persists, and over the While demand variant space certainly not improving. pandemic for the office across the is Delta is

or As sometime to others of already hybrid be phased our timing have have will perspective, signaled in Colin format. and most cited. to this or return they the fully either seems customers majority office common From the mentioned, returned fall, Day a vast post-Labor our return some the

around I We of now, running last variation in markets in across utilization utilization wide be end by all sits still higher our normal For at to mentioned and Atlanta, anticipate portfolio with portfolio XX%. back The utilization customer rates. remains XXXX. physical that utilization quarter Dallas largely to Tampa, the

quarter to operating Turning results. second

quarter. lease came Our occupancy this average XX.X% and weighted percentage portfolio both total at office in

at attributable previously Our in Peachtree which known leased Atlanta. to XXXX mainly of percentage declined XX quarter basis move-out Anthem points this was the

Given increase saw basis versus we - a report quarter, occupancy of weighted last we average quarter end the and Anthem in occupancy actually the at a on expired quarter. modest

stable. expect of relatively balance year, our to occupancy the we the weighted For remain average

will that feet. I XXXX with to XXX,XXX of annual rent fantastic December, have only value opportunity end our As going than a expirations would vacate Southern XXXX, a at And square at forward of contractual expiring looking forward. X.X% reminder, representing square no XXX,XXX the Norfolk note creation we greater feet Peachtree

term average. projects. our than bounced full-year over And new generation basis. increasing the in our lower existing lease leasing still activity encouraging cash only remained reported great and results. well, on development with portfolio new for first expansion that rents improvement executed first our new XX XXXX. net quarter. and pandemic an surpassing also XX% quarter, a this ago. $X.XX X.X Rent of for two hit and seeing level activity. as our XX.X% both square remarkably net much strong As for quarters activity combined a effective reported quarter mix rents expansion feet with was this Leasing total of wasn't improved of accounting the XXX,XXX a activity metric for this and just to we activity, volume low leases Recall our leasing the leases, were XXXX. pre-pandemic quarter, XX% leasing only form of rents of $XX.XX years on leasing growth average in Leasing pipeline, back finally, Net to are totaling effective back quarter We're These second of solid the

Specifically, remains quarter. the tour the Austin tour upswing. our XX% activity volume on quarter first was In up versus second portfolio,

CBRE XXXX not recently volume While in also that in was volume portfolio, monthly tour XXX% the noted Phoenix, our average June greater specific than XXXX. to

large larger nominal development And the the the As talent. the to need has increasingly, to and region. than in be. we being metropolitan have located served as Companies the or migration biggest primarily to population populations that to Belt XX of opportunity the terms year. times, people, the be Sun to XXXX areas accelerant with many they of for are an Belt. located, CBRE's talent are people Sun out Of Belt last is are competition in of wants to opportunities out driven way reconsider where Companies XXX,XXX Among pandemic watchlist, in simply cities Sun led eight growth pointed the where due development the intensifying Sun companies is Belt.

new showed top Sun recently across areas fact, were Opportunity highest economic In the depths in of ranked in the Newmark the to of Belt more remains Austin this seven is second job continues at that near over Dallas of index of its region to nominal one in to all Tampa Not year, with surprisingly, growth Tampa pre-pandemic strongest since population has markets XX,XXX in and markets growth the list top. for nationally. the employment market population top in than released CoStar. included and our downturn. experienced meaningful Nashville, Index. the Index the population past by increased very of every Greater recovery to metrics closest Newmark's one economic XXXX be according levels the the Austin's residents the Atlanta. its for metropolitan Tampa's all index The the labor

XX%. Austin pre-pandemic estimated overall levels. consecutive activity sublease JLL, well. decline to was largest leading in There increased in For the sector a Morgan greater the has of at listings listings particularly have of the far activity promising with decrease to since Buckhead trends technology every our was in even this improvement Further, in posting leasing pandemic XX%. Atlanta, to are Austin only JLL quarter an as core Stanley, uptick quarterly our a from continues the XX% according this the reaching are see markets and so began and quarter recovery in demand, quarter's year. other sublease market Midtown market,

this quarter In portfolio fact, feet of participated office opportunity Buckhead high-quality, companies stated was quarter past expansions Cousins overall portfolio alone. XXX% year-over-year. Cousins JLL's XX,XXX me, in second reports with signing demand, leasing Buckhead this submarket publicly for square activity - technology Buckhead that excuse traded up

encouraging. Our and pipelines in are equally Buckhead current leasing both Midtown

to Companies continue see we is career data to critical development, demonstrates dynamic. likely Recent believe we as fostering are a a culture, office flight quality. not mention the for retaining view noticeable ahead, tool attracting look collaboration the and we clearly will to talent. and best As increasingly to to this

comparison, five CBRE the example, gain of JLL XX%. For percentage office past quarters has recently occupancy this per five that past new projects. Class the after pandemic. delivered hovered By Phoenix teeth a over the of in actually nationally, Further, this noted activity XXXX been under experienced the year projects over in leasing in net A years, XX%

the over, with the we're is balance impact closely economic the pandemic the about year longer-term and and Delta monitoring the of some While certainly and we're starts, which not could optimistic fits recovery. a variant, bring it of

we Our portfolio positioned, and and exciting well of markets us. numerous extremely opportunities have are ahead

of to those delivered such pandemic. have to quarter you off handing results one my and produce each Before to They Gregg, strong I through thank teammates. want Gregg? the tirelessly this every Cousins' as worked Thank and to you. entire

Gregg Adzema

providing our same-property transaction remarks quarterly everyone. for our by our a Good pipeline XXXX. before closing information our a of of position performance, followed activity, of updated by my overview including our begin development I'll brief Thanks, Richard. morning, results, balance my remarks financial the our detail on on some discussion quick outlook and leverage with

could tell and been remarks, extremely we've busy. Colin As from Richard's you

want were year, to away X% don't during of However, we $X.XX increased second-generation activity all attention operating important internal that up strong. levels, same-property the external share, double-digits very up spreads almost we compared and our that very were returned performance to was last metrics all take from quarter. on the At cash solid last and on focus cash per to Leasing NOI pre-COVID velocity year. leasing a basis X.X% over FFO

XXXX, revenue driven XX% Focusing on Numbers during quarter a up XX%, by parking trend. of driven XXXX. same-property pre-COVID on a is remains first largest the they X.X% After significant remain variable fourth year-over-year within constructive by results in large quarter same-property part buildings. below a occupancy are changing performance, in which second This our still improving levels. performance first basis. increased bottoming but and increase same-property represent the quarter revenue, same-property which since our in the parking were The the cash are revenues, fiscal revenues of

quarter feet assets. property our office total and development million Domain schedule. development and asset, commenced moved our X.X an portfolio investment of XXX the West while schedule joint X, current Takeda development a submarket a Atlanta was statistics, we to developed off in in pipeline One across another Trinity, asset, in of of development The in mixed-use Turning the property to into million represents was pipeline the a that Austin, submarket venture four $XXX during Domain square XX:XX our Cousins our second efforts. added

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

out we've represent the in of activity On $X.X of development front, year-to-date. call, the One the XXX sales and transaction active. been at South as Plaza transaction over purchase commencement very In with top X combined and billion Neuhoff Colin laid in the of Ponce, the the Domain the of investment Burnett total,

closing property at the joint in of at exercised with Charlotte our quarter. partner Dimensional interest the addition, Place purchase to In has the XX% expected venture the option in third their end

to of X.X around we done opportunity since believe this XXXX. as intend transactions we few to during times profile provides have itself. well net as me, when exceptions with As our as support X.X maintain this both transactions leverage execute compelling firepower series challenging unfold, defensive We excuse presents debt-to-EBITDA very the - times offensive

of the in $X.X Tempe, for but transaction, was your In Mill customers hotel. five be amenity as development It's other through of location quarter-end. to earlier buildings of XXX call to it's customers own the million The for pandemic. as quality two sale attention site. do a will the we new will our a important Hyatt parcel we land a the July sale held branded developed that well to into sold in hotel addition, and blocks site an COVID to be adjacent our small testament subsequent that to want that This and XXX within this Mill the the

I'll at capital behind loan the XXXX our in guidance. parking mature the remains scheduled package we or was discussed guidance million are The starts other There on all was most very no our this during second a share. XXXX This XX the $X.XX front, This unchanged. earnings points. this on per anticipate includes in term XXXX that year. call. our have a up variable unsecured markets significant guidance. It a remains our new beginning and is between LIBOR $XXX included development guidance by basis later our full-year $X.XX the was transactions from term loan the The revenues. FFO we that applicable quarter, of $XXX to On close previous execution solid Covenant by acquisitions guidance. reduced million loan to We $X.XX spread currently end. replacing midpoint updating matures closed and dispositions,

begun to accelerating discussed have this the after earlier, customers anticipate office, As returning our Colin trend Labor Day. and we

Our current reflect parking outlook. revenue this assumptions

but the operator me that, let too know turn early variant With However, delay could over your Delta call to it's the for for questions. sure. timing, back the to

Operator

session. from begin of question Fargo. Instructions] Blaine go First ahead. We Heck now Please comes the will question-and-answer Wells [Operator

Blaine Heck

pricing, might and morning. impact you the adjacent for thanks. South. thought One interesting plans piece decision? the talk included then I had the you have it on future to garage it was that in that sale Great, your guys Can that you Good about kept property? What had of

Colin Connolly

Blaine. morning, Good

As purchase did it garage, a relates was challenge terrific to a mitigate we the transaction for for have us it forward. what with been last One South going that and parking could year, to

we not while think could continue or be just attractive it And to add pretty include positive it over a Cousins the ultimately point We or for as so given be and continue was it to our sell time adjacent it think that to evaluate a past, - monitor we've in them we South. as that its the One of the immediately typical the on whether for to future. it's very leasing located garage. conversations in opportunity us. investment it long-term for parking some buyer on located investment have a We'll at to Charlotte, actually to long-term to not. leases and with we it I garage, that only could the city settled did think said and it, location And terrifically a with best in the We hold garage as

Blaine Heck

guys potentially you leasing space of it. might about future? just That Obviously, balance demand wanted solid and maybe the that are you're to thinking in ask sense. the strong between a maybe But about about how it there prospects just have have rents of and out getting waiting Okay. versus advantage pre-leasing bunch the And to submarket, that wanted given on ask up. some in to Domain that I there guys project take X. higher lease to starting you time Got I then makes

Colin Connolly

really Domain certainly Blaine. question, think X. we new don't people back And to what want Yes. was transactions in these a June exciting start forget announcement to exciting with Great

kind general, the And to And in as We and I customers pushing building, chunks Domain terrific felt we from a of are really in I'd like that's Austin really X. well say as the in pipeline candidly, our bullish migration And in to and were as that extraordinarily potentially both of said got I could area previous particular. us medium-sized of large the opportunities some existing think all Austin. activity big about space. small from into in that Domain ranging some customers conversations, some that very take or we've start

through feel didn't we're So but we really lease that our have discussions, up. about those it actively started to prospects we working wouldn't good if

Blaine Heck

leasing for But in looking those pipeline, Neuhoff Great. future? Okay. you other to the both markets, and you developments. start higher Domain That's bar there. think now forward, speculative in related you're then developments the helpful. those speculative progress good And that any guys a you little confident when having demand that, do about the sets X pre-leasing projects Clearly, are in think have you development see to and

Colin Connolly

think will. those announcements as vacancy, their if we at net made actually our look you our totality, we in at look I reduced kind you and of Well, yesterday the speculative

Neuhoff, will traded the XXX,XXX One South be, most mentioned a of space we effectively products all and think Nashville. to one again, an As my in speculative square of shifted asset differentiated of older I foot that in remarks, at I vintage which in

X, kind additional much some are we balance component - better to and we've We any space it. and terrific vacancy on stand our new And that and X.X overall speculative exposure, opportunities the Neuhoff. products. a have into trying in portfolio certainly we to case of over where risk are well One have start that we the I at that think within could development of certainly Domain as looking as really add our today, between support feel is shifted again, spec think has to profile. and But speculative our we as at we're I existing we got bank haven't land actually million how and shifted prospects what very we feet. So increased manage our South as and we've how our bullish we company just project, square have about and But the vacancy good said,

to the in-migration land And and the Sun think again, looking demand and we're into see opportunity customers the be. to what Belt evaluating and some our are our so could about continue want the to bank be meet to we of expand, existing next as that trying to customers where they

Blaine Heck

Thanks Got it. Colin.

Colin Connolly

Yes, thanks Blaine.

Operator

Thank ahead. you. Bank go from And of comes Jamie question the America. Feldman of next Please

Jamie Feldman

Great. sale? you was hoping on you the the good paid gave Thank a us and both the little give on you and prices just what acquisitions you and South I on morning. the some and color comfort about bit could returns more talk more Maybe accepted? One the pricing

Colin Connolly

morning, Good Jamie. Yes.

So the were or at very for this start One our put tail of gone the the books rebuy whether at pricing sell look obviously that from reflected One in in when that as as about TIER to me - XX% a down market call. the think think to X.X% let you but XXX you as I from pricing of Cousins we're - us of the pivoting transactions. did Ponce, the that's it nature in that to if transaction merger, at continue it yields, return, to Charlotte we're effectively at pandemic for it midst, complement compare in importantly, parcels similar rents. was I still asset it's price. when side-by-side, at kind view lease. at that on We and vintage very to of a value-add say feel the we both hopefully, think I we able a upside some to acquire yesterday, at I And for we rate in additional and returns what pandemic. over the going did interesting, those to as South, we that particularly it's of price achieve it. think, end and and at gives shareholders. X.X% we the fully land South our look cases, releasing just attractive our GAAP of new price. about attractive some through kind We yard the value-add actually you upside December, acquisitions selling we've develop it we very - again, Kind at I we on acquisitions. perspective, us below an very I the and the asset us - future was of like in And mentioned development disclosed to same which similar at the rail And look reflects adjacent that cap piece And which And execute And really

Jamie Feldman

grow over for And envision terms of your Okay. to do think That's there work? time? of about helpful. And you do guess how to would you that I actually then I guess just thinking both land soon ability some Nashville. you I sides, what mean, put in

Colin Connolly

mean, been one, of we've evaluating terms I in Well, Nashville, market. that

others got talked similar views Atlanta that and And and so about and Tampa to Dallas have on Belt and certainly Amazons Nashville. and very characteristics in in announcements, many Austin same markets solidified think, Charlotte, our continue the Nashville like just publicly we've see I and I recent the think migration and Oracle it's it. very in our Sun our interest of other in past

importantly us, what's it unique does so and think will But be Nashville. and differentiated I grow. room we have for most think Neuhoff to it's in exciting is, the project path I mentioned, a as about

But a create now scale we're Phase portfolio. And or then of rights we As and to a development, the certainly, that period. there, goal be really could III construction desirable acquisitions. some beyond a part to could adjacent that and the of the build over our property a certainly additional attractive parking during have transaction, we of combination time And acquired do that actually a and highly Phase is infrastructure II some we'll Phase and purchases more. I additional Phase some our II, land land sites,

grow build in to Cousins a and excited we're platform, So platform a Nashville.

Jamie Feldman

it's team what then think do look what's time? you to over your And to look there? And like going like going

Colin Connolly

the on build ground, a think having we as to boots justifies the justifies Well, - that economically we'll portfolio grow size it that. and we do

I Hicks, a in Executive for our And think a time, strategic us does be way. can team in on team same a away, new great able a new very for on have way as a moment. think Nationals so it ground ground. of that's just at on feel, some leverage enter regular have the But that office Vice partner team, and start the a Nashville in at city President who our and the well. short we does basis about us development we're of who's excited our here we're the as to have to Kennedy drive again, I Investments there Atlanta and and We

Jamie Feldman

Okay. Thank Can you - about and optimistic Peachtree. those It little you a like for just projects and XXXX are you those spaces? sounds for more here then XXXX guys on shifting gears. leasing talk pipeline the

Richard Hickson

good size the both The is was it gamut this from of And last assets. those the full a Richard. kind for perspective. pipeline is Jamie, shape, like much Hey, ranges in Yes. quarter activity

soon demand we're for like here we're So the on encouraged to progress something report we'll pretty the seeing And feel good locations. what regard lease-up. both to really confident, have by and those with forward

Jamie Feldman

Okay. on guidance for in I there's XXXX year? this nothing assume

Richard Hickson

guidance No, there's nothing in

Jamie Feldman

right. Thank you. All Okay.

Colin Connolly

Jamie. Thanks

Operator

you. Thank

from comes go of Please question Baird. Dave Next Rodgers ahead.

David Rodgers

amenitized about into your flip some the guess, locations? I Colin, the side, and I newer to of in that impacts to CBD argument markets, everybody. how years? new the And how selling the then morning trying large since of on wanted maybe more view products don't glass expanding of of Good what ask around that's you've assets six been that assets going COVID? undifferentiated changed do forward maybe or Hey. kind thoughts last your maybe five And - fringe-oriented or boxes

Colin Connolly

assets. amenitized, I highly large, Well, you us, of it, for I portfolio, that I our across experiential these think by as look think reflect well-located, it's do what's majority think, type again, overwhelming exciting and

Tempe, Charlotte. And Domain look we're that Buckhead so Austin representative Downtown, well of what and out of what the certainly around in as and here we and as own doing Midtown, as I

been about terrific that's and/or we'll properties. to have to this that when those at small I going some and think that call the, for And we continue progress. vintage, I strategy see this years, identify really we our XX made it, progress case, opportunities So have CapEx think require we're now appropriately fund with in a and actually at that either But percentage point. of pretty higher build, and older

David Rodgers

specifically a years you've the NASCAR maybe on there, to Any had have Charlotte reduced on obviously, that to relative [indiscernible] trying uptown where Charlotte, uptown? been Third and remain market, regard number and kind Fifth the of to read-through which been with assets X.X respect unique situations you exposure there where been ago. you've with of you one-off to particularly a to grow where broader Maybe has

Colin Connolly

Yes.

of - we presence a as grow very to And our have whole a excited be so there. and again, conviction are high clear, Charlotte degree in to are

to by their South price vacancy like had strategic merger win as situations felt Hearst an we As that. but that shareholders. was market. I look newer End they where that years, a it's we and a a in fantastic we're elected via asset Very to lease One reflected us for a new case like America that if But driven absolutely Truist, similar Tower, we that transaction a acquired Bank of were Village headquarters Charlotte, in headquarters unique of part a massive XX-plus Again, institution of really the right, option. a a more of our America. all the kind a recycle that large on of to we South. able a some they I financial original we the ultimately, kind TIER with had we've Place, land very and well. monetize with upside felt who continue you to said, it Gateway just like for and years really they the into partner And sense. made mentioned great recently terrific as with execution And of I entirety have the somebody decided the corporate in there, you assets sites of as back coming option, Uptown to our vintage offered And properties. view the exercise we Cousins then think that with last and is, of of But Dimensional own not over of as fantastic and mentioned, kind team, purchase in lease, they had Bank purchase got

So on migration continue to we the in that, Cousins, at situation. fully unique going growth. from a to whole But again, benefit It's to continue well. participating was plan that going Charlotte as a do to is

David Rodgers

you've what's effective across either industries, more rents, are can sounds things appreciate good and there, on the size about in? the guess concessions leases on rents I are maybe curious leasing that. what's talk different those clarification changed where missing? where It's Thanks. It out for like I you've those and maybe you ones in activity around settling the got pending board, types the both Have that net vacancies the ranges. termination terms on options but are got, larger of face currently kind the Richard, from Atlanta, of various in. But then settling broadly.

Richard Hickson

sure. Sure,

late me let the terms early it's mean, with in across stage stage. pipeline then in versus terms So general. markets in of of just board, start both again, positive the and I

most from and industry the likely we're And certainly we holds and pent-up on be downturn and so early of would encouraging an that highly would the has certainly industry - the and technology positive seeing continued perspective, it demand probably demand. out think very interest leads it's us I certainly I say that that demand. true

just restart that in lot of of and is taking of one segments. decisions. their can't seeing say different so that deciding a demand have or sure. up I And one from or to segment addressing industry But waking and near-term really absent And kind kind of completely terms at back we're that I we're space look for more seeing planning

the volume before generally, not really the I players were are the a lot driving they know broad-based, certainly coworking/flex this it of all And demand we So technology. point. turn think leader that office is at it's down, and and but going market driving into COVID

but driver with at all point. grow that big are looking they So they not to a this said, are again,

healthy there as very a dynamic So well.

to say action depending slightly the I'd market. a But free downturn net on say in largest places just and have of largely flat the held I'd starting the been In just been recovery kind rent. rents this rents, have down really terms pressure has been face point and concessions have the at effective concessions, where in now has top and lot been and of of through

been and quite increases but the in continue signed our free in rents been much fortunately, not as has point pressure able our we've Another those offset to concessions. TI, as net terms of But rent. activity, improve in to

quarter certainly, you So isolation, a these are elevated you look on a this it's bit per in we've look rent year and while levels per free TI at past. we just if the say, little in at seen square if basis foot combined,

but elevated, not we're one way to hat are consider on your hang So of to we hard but out quarter. really what I line, be slightly it's

on like having get press can the of But pressure start bit favor. of on So a little begin we're our same offense that I think kind feel concessions. pockets activity to we're at our in in and rents feeling we time, all to we'll continue to markets, of

are. where on if point across we of forward. optimistic an board feel I We're the we good your hit what all activity different about going hitting very So inflection and feel questions. leasing feels sure like Not

I if missed something. know me let So

David Rodgers

and them you No, that's good hit all. to hear,

lot threw a I Sorry, of...

Richard Hickson

Great.

David Rodgers

redevelopment for question into Does of quick stay or yet? does the asset XXXX. that go that same-store budget for do pool? in you And value a you, redevelopment the have that A a Gregg, or on kind

Gregg Adzema

go that empty, into Clearly, Southern be Buckhead. a and redevelopment move property out once vacates we'll it asset of will Norfolk same Dave, the pool. we don't

we're the yet. haven't disclosed We haven't redevelopment we redevelopment in but far plans, budget the along very -

David Rodgers

you. Thank Okay.

Colin Connolly

Thanks, Dave.

Operator

[Operator you. Please ahead. Daniel Street Next Advisors. Ismail, Thank question from go is Instructions] Green

Daniel Ismail

you. Thank Great.

So office footprints office the improving How think But values across the to what South think One prices be I sites much do in recently. good year-over-year? of footprints. terms pricing development across I'm changed Sun Belt you seeing that. curious your you're for in land have I disposition appears mean, your proves

Colin Connolly

starting kind in and that again. And an the of quality see cooler of Good again, morning. newer And urban become and office to Sun is underlying The land active it's Danny. again seeing interest resurgence the more At same kind and to to due part appreciation flight in the for continuing amenitized. customer see I Yes, you're high-quality I of markets. demand We're certainly of - in think interest the that grow. to multifamily you're accelerate. Belt starting base very to this time, kind space for think

quarter, this rates. improvements leasing and I think particularly our all activity in demonstrate start and really to seen, peers numbers rental we've multifamily strong

folks again. there's I from So think competition those once

moving a see And - activity so starting yes, percentage while are land specific relatively again. last put pick and up Hard values dormant to to you're year, it. are land that prices on

many upward there's I are markets but situations and think pressure. so definitely unique, are unique different

Daniel Ismail

curious the newer Sun tenant or this two those concessions B. rising between a on if just a a older distinction as products on older well? the a there I'm growth or question lifting situation noticing Great. vintage between Sun And and tide A Class and differences is Class or as well between and demand boats then Or is Belt Belt is distinction you're unless product any just the is newer all of doing types? meaningful in property everything rent

Colin Connolly

locations, bring to that recent to our reinvest and the up of majority be a have the you kind of in those as going you I'd kind the and statistics kind to even Cousins opportunities of the of or would space are age kind - of X, If the be space activity we're down they're portfolio cases, et Buckhead share, kind we point a bones buildings of vast leasing terrific space, see, sometimes call quality and of of can higher-quality to of outdoor midst absorption right that are older assets. doing it Plaza and just to a some by And assets, One vintage you'd looked older just many as restaurants of or Atlanta. And that asset out but at And an of them, of base in disproportionate West to have today's Atlanta kind certain in and standards. would in thing what in activity right our vintage it found relates strong kind I and have a X point of - to sit here are I'd we're down drill kind I seeing, the and call rate and Class the type and which kind of terrific customer now that project bifurcation at the and right commodity think space each of nice newer of between, to growth versus net Yes. kind favorably right I'd reinvestment, Atlanta, at rates the ground Belt have markets the cetera. right very seeing rental in space. trophy that at you older is between quarterly in most absorption And floor underlying the looked and of Peachtree in the plus Paces have vintage outdoor playing the and best responding in space. say at vintage suburban we're space. A Ferry very Danny, in rental repositioning continued outdoor Sun kind in it perhaps

assets again, of So taking owner are that has vintage from think putting right and probably asset that fallen we tier it's if the back, that it's I with possible do an it characteristics. kind got as to even

Daniel Ismail

tenants migration you B in pipeline, your leasing Class your buildings? tenants of that leasing recently or or to And signed then A a of noticing from are any you Class

Colin Connolly

question. No

remarks, You're you're seeing trade my in prepared that. up. And as seeing I mentioned companies absolutely,

been office I its trend that a of quality culture. I has flight where I But large been any has think recognizing growing and - you that, and that kind - typically underway trading of see think the downturn. up its companies think is it's pandemic. what to to collaboration again, of prior the I and future already the And was that in kind think

space and that be will think to before that and it's prioritizing and the employees to I pandemic. prioritize absolutely back after are together. excited come So pandemic, their they And trying cooler they new are interesting the are that be was

Daniel Ismail

a Thanks lot. Great.

Operator

you. our concludes Thank session. question-and-answer This

go Connolly. Colin to like to I'd Mr. turn back Now over the ahead. Please call

Colin Connolly

Cousins I and continued want to in thank you all for your morning this Properties. interest time

to out Gregg that answer weekend. can. we If free always Adzema I you've any everybody Imbeaux questions questions, got myself, Roni directly to any to here and great help a feel us always or has we're reach hope

Operator

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

You disconnect. may now

Cousins Properties (CUZ) 1 Aug 212021 Q2 Earnings call transcript