ATLANTA - Cousins Properties Incorporated (NYSE:CUZ), a $4.8 billion market cap real estate investment trust (REIT) known for its portfolio of Class A office buildings and its remarkable 45-year dividend payment history, announced the pricing of a $400 million offering of senior unsecured notes on Thursday. The notes, bearing an interest rate of 5.375% and maturing in 2032, were priced at 99.463% of their principal amount.
The offering is scheduled to close on December 17, 2024, contingent on customary closing conditions. Cousins Properties intends to allocate the net proceeds to partially fund the acquisition of 601 West 2nd Street, also called Sail Tower, an 804,000 square foot premium office property in Austin. Any remaining funds will be used to pay down borrowings under its credit facility and for general corporate purposes. According to InvestingPro data, the company's short-term obligations currently exceed its liquid assets, making this debt offering strategically important for its expansion plans. If the acquisition does not proceed, the company plans to use the proceeds for general corporate activities, which may include property acquisitions and development, opportunistic investments, and debt repayment.
The senior notes will be fully and unconditionally guaranteed by Cousins Properties. The joint book-running managers for the offering include J.P. Morgan, Truist Securities, US Bancorp (NYSE:USB), BofA Securities, Morgan Stanley (NYSE:MS), PNC Capital Markets LLC, TD Securities, and Wells Fargo (NYSE:WFC) Securities.
This press release does not constitute an offer to sell or a solicitation to buy the notes, and any sales will occur only through a prospectus supplement and accompanying prospectus. The offering is made under an effective shelf registration statement with the Securities and Exchange Commission (SEC).
Cousins Properties, headquartered in Atlanta, has a strategic focus on high-growth Sun Belt markets, leveraging its expertise in the development, acquisition, leasing, and management of high-quality real estate assets to create shareholder value. The company currently offers a 4.24% dividend yield and has seen its stock surge by 35.8% over the past six months. For deeper insights into Cousins Properties' financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers detailed research reports and additional ProTips for over 1,400 US stocks.
The company's forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from expectations. These factors include market conditions, the terms of capital, the success of real estate transactions, and broader economic influences. The information provided is based on a press release statement.
In other recent news, Cousins Properties has made significant strides in its business operations. The company announced a public offering of 9.5 million shares, managed by J.P. Morgan, and another offering of 6 million shares, aiming to raise approximately $188 million. These offerings are part of Cousins Properties' strategy to fund future acquisitions and development projects, including the purchase of an office property in Downtown Austin.
Cousins Properties recently acquired Sail Tower in Austin for $521.8 million and Vantage South End, an office property in Charlotte, for $328.5 million. These acquisitions align with the company's focus on trophy assets and opportunistic investments. The company's recent financial performance was robust, with Funds From Operations (FFO) reaching $0.67 per share and a 4.4% increase in same-property net operating income. Following these results, the company's 2024 FFO guidance was upgraded to between $2.66 and $2.70 per share.
On the analyst front, Baird maintained an Outperform rating on Cousins Properties and increased the price target to $34.00. Conversely, BMO Capital moved its rating to 'Market Perform' following a strong performance in 2024. These are recent developments in Cousins Properties' business operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.