ATLANTA, March 4, 2019 /PRNewswire/ -- Cousins
Properties (NYSE: CUZ) announced today that it has entered into
three strategic transactions in Atlanta that increase its 2019 earnings
guidance. Based on these transactions, the Company is raising its
2019 net income guidance from $0.27
to $0.29 per share to $0.35 to $0.38 per
share and its 2019 FFO guidance from $0.61 to $0.65 per
share to $0.70 to $0.75 per share.
On February 26, 2019, Cousins
closed on the sale of its air rights that cover approximately eight
acres within an area of Downtown
Atlanta known as The Gulch to developer CIM Group for a
gross sale price of $13.25
million. As part of the agreement with CIM, under
certain conditions, Cousins retains office development rights on
the Gulch site.
On March 1, 2019, Cousins entered
into an agreement to develop 650 West Peachtree in Midtown Atlanta
on a site it recently acquired near Georgia
Tech. Cousins sold the site to Norfolk Southern for its new
headquarters and will serve as fee developer. Construction
will commence in the first quarter of 2019 with delivery targeted
for the third quarter of 2021.
Concurrent with the agreement to develop 650 West Peachtree,
Cousins also closed on the acquisition of 1200 Peachtree, a 370,000
square-foot Class A office building located in Midtown Atlanta
adjacent to its Promenade office tower. 1200 Peachtree is
100% leased to Norfolk Southern through year-end 2021.
"We are excited that Norfolk Southern has chosen Atlanta to be its new home and selected
Cousins to be its development partner," said Colin Connolly, President and Chief Executive
Officer of Cousins. "While the sale of our air rights to CIM and
the development agreement at 650 West Peachtree will have
an immediate positive impact on our earnings, we are also
excited about the longer-term value creation opportunity from our
acquisition of 1200 Peachtree and the future development rights we
retained in The Gulch."
Please refer to the Investor Relations page of Cousins' website
for a presentation with additional information on the transactions
discussed above.
The Company leaves unchanged the previously provided assumptions
to its 2019 net income and FFO guidance, except for the following
updates:
- Gain on land sale of $13.1
million, due to the sale of The Gulch air rights, which had
no basis on the Company's balance sheet.
- Fee and other income of $28
million to $30 million, up
from the previous range of $7 million
to $9 million, due to the portion of
fees associated with the development of 650 West Peachtree that
will be recognized during 2019.
- The acquisition of 1200 Peachtree for $82 million and the associated GAAP NOI of
$8 million that will be recognized
for the 10 months of ownership during 2019.
- Interest and other expenses of $49.5
million to $51.5 million, up
from the previous range of $48.5
million to $50.5 million.
A reconciliation of projected net income per share to projected
FFO per share is provided as follows:
|
Full Year 2019
Range
|
|
Low
|
|
High
|
Net income per
share
|
$
|
0.35
|
|
|
$
|
0.38
|
|
Add: Real estate
depreciation and amortization
|
0.44
|
|
|
0.44
|
|
Less: Gain on sale of
depreciated real estate
|
(0.09)
|
|
|
(0.07)
|
|
Funds From
Operations per share
|
$
|
0.70
|
|
|
$
|
0.75
|
|
The Company's guidance is provided for information purposes
based on current plans and assumptions and is subject to
change.
About Cousins Properties
Cousins Properties is a fully integrated, self-administered and
self-managed real estate investment trust (REIT). The Company,
based in Atlanta, GA and acting
through its operating partnership, Cousins Properties LP, primarily
invests in Class A office towers located in high-growth Sun Belt
markets. Founded in 1958, Cousins creates shareholder value through
its extensive expertise in the development, acquisition, leasing
and management of high-quality real estate assets. The Company has
a comprehensive strategy in place based on a simple platform,
trophy assets and opportunistic investments. For more information,
please visit www.cousins.com.
About Norfolk Southern
Norfolk Southern Corporation (NYSE: NSC) is one of the nation's
premier transportation companies. Its Norfolk Southern Railway
Company subsidiary operates approximately 19,500 route miles in 22
states and the District of
Columbia, serves every major container port in the eastern
United States, and provides
efficient connections to other rail carriers. Norfolk Southern is a
major transporter of industrial products, including chemicals,
agriculture, and metals and construction materials. In addition,
the railroad operates the most extensive intermodal network in the
East and is a principal carrier of coal, automobiles, and
automotive parts.
CONTACT:
Roni
Imbeaux
Vice President, Finance and Investor Relations
404-407-1104
rimbeaux@cousins.com
View original
content:http://www.prnewswire.com/news-releases/cousins-properties-raises-2019-earnings-guidance-300805754.html
SOURCE Cousins Properties