Q2 2026 Cousins Properties Inc Earnings Call

July 31, 2026

Speaker #1: Good morning, ladies and gentlemen, and welcome to the Cousins Properties second quarter conference call. At this time, note that all participant lines are in a listen-only mode.

Operator 2: Good morning, ladies and gentlemen, and welcome to the Cousins Properties Q2 conference call. At this time, note that all participant lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also, note that this call is being recorded on Friday, 31 July 2026. I would now like to turn the conference over to Pamela Roper, General Counsel. Please go ahead.

Operator: Good morning, ladies and gentlemen, and welcome to the Cousins Properties Q2 conference call. At this time, note that all participant lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also, note that this call is being recorded on Friday, 31 July 2026. I would now like to turn the conference over to Pamela Roper, General Counsel. Please go ahead.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator.

Speaker #1: Also note that this call is being recorded on Friday, July 31st, 2026. I would now like to turn the conference over to Pamela Roper, General Counsel.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good morning, and welcome to Cousins Properties' second quarter earnings conference call. With me today are Colin Connolly, our President and Chief Executive Officer; Richard Hickson, our Executive Vice President of Operations; Kennedy Hicks, our Executive Vice President and Chief Investment Officer; and Gregg Adzema, our Executive Vice President and Chief Financial Officer.

Pamela Roper: Thank you. Good morning and welcome to Cousins Properties Q2 earnings conference call. With me today are Colin Connolly, our President and Chief Executive Officer, Richard Hickson, our Executive Vice President of Operations, Kennedy Hicks, our Executive Vice President and Chief Investment Officer, and Gregg Adzema, our Executive Vice President and Chief Financial Officer. The press release and supplemental package were distributed yesterday afternoon, as well as furnished on Form 8-K. In the supplemental package, the company has reconciled all non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Regulation G requirements. If you did not receive a copy, these documents are available through the quarterly disclosures and supplemental SEC information links on the investor relations page of our website, cousins.com.

Speaker #2: The press release and supplemental package were distributed yesterday afternoon, as well as furnished on Form 8K. In the supplemental package, the company is reconciled all non-GAAP financial measures to the most directly comparable GAAP measures, in accordance with Reg G requirements.

Speaker #2: If you did not receive a copy, these documents are available through the quarterly disclosures and supplemental SEC information links on the Investor Relations page of our website, cousins.com.

Speaker #2: Please be aware that certain matters discussed today may constitute forward-looking statements within the meaning of federal securities laws and actual results may differ materially from these statements due to a variety of risk and uncertainties in other factors, including the risk factors set forth in our annual report on Form 10K and our other SEC filings.

Pamela Roper: Please be aware that certain matters discussed today may constitute forward-looking statements within the meaning of federal securities laws, and actual results may differ materially from these statements due to a variety of risks, uncertainties, and other factors, including the risk factors set forth in our annual report on Form 10-K and our other SEC filings. The company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The full declaration regarding forward-looking statements is available in the supplemental package posted yesterday, and a detailed discussion of the potential risks is contained in our filings with the SEC. With that, I'll turn the call over to Colin Connolly.

Speaker #2: The company does not undertake any duty to update any forward-looking statements, whether as a result of new information, future events, or otherwise. The full declaration regarding forward-looking statements is available in the supplemental package posted yesterday.

Speaker #2: And a detailed discussion of some potential risks contained in our filings with the SEC. With that, I'll turn the call over to Colin Connolly.

Speaker #3: Thank you, Pam, and good morning, everyone. We had an excellent second quarter at Cousins. On the earnings front, the team delivered 75 cents a share in FFO, in addition, we increased the midpoint of our FFO guidance by 1 cent per share to $2.95 per share for the full year in 2026, which represents 3.9% growth over 2025.

Colin Connolly: Thank you, Pam, and good morning, everyone. We had an excellent Q2 at Cousins. On the earnings front, the team delivered $0.75 a share in FFO. In addition, we increased the midpoint of our FFO guidance by $0.01 per share to $2.95 per share for the full year in 2026, which represents 3.9% growth over 2025. This would be our third consecutive year of FFO growth and represents a 4% compounded annual growth rate since 2023. Cousins' earnings growth during this three-year timeframe is unmatched among traditional office REITs. Leasing remained robust. For the second consecutive quarter, we delivered one of our highest leasing volumes in the history of the company. We completed 924,000 square feet of leases, bringing occupancy to 98.8% leased, the highest level since the Q1 of 2020.

Speaker #3: This would be our third consecutive year of FFO growth and represents a 4% compounded annual growth rate since 2023. Cousins' earnings growth during this three-year time frame is unmatched among traditional office REITs.

Speaker #3: Leasing remained robust. For the second consecutive quarter, we delivered one of our highest leasing volumes in the history of the company. We completed 924,000 square feet of leases, bringing an occupancy to 98.8% leased, the highest level since the first quarter of 2020.

Speaker #3: Our cash rent roll-up on second-generation leasing was 9.2%, which marks 49 consecutive quarters of positive rent roll-ups. These results underscore the strength of our portfolio and the depth of customer demand for high-quality, lifestyle office space.

Colin Connolly: Our cash rent roll-up on second-generation leasing was 9.2%, which marks 49 consecutive quarters of positive rent roll-ups. These results underscore the strength of our portfolio and the depth of customer demand for high-quality lifestyle office space. Let me highlight several important trends that continue to shape the office landscape. First, demand is improving. According to JLL, leasing activity hit a post-pandemic high during the Q2. In addition, net absorption has been positive for four straight quarters. As a result, again, according to JLL, available space is declining at one of the fastest paces in office market history. Second, to date, AI is proving to be more of a friend than a foe to the office sector. Employment data has shown no material negative trends due to AI, and on the ground, we are seeing AI-related office demand broaden across the country into all of our markets.

Speaker #3: Let me highlight several important trends that continue to shape the office landscape. First, demand is improving. According to JLL, leasing activity hit a post-pandemic high during the second quarter, in addition, net absorption has been positive for four straight quarters, and as a result, again, according to JLL, available space is declining at one of the fastest paces in office market history.

Speaker #3: Second, to date, AI is proving to be more of a friend than a foe to the office sector. Employment data has shown no material negative trends due to AI, and on the ground, we are seeing AI-related office demand broaden across the country into all of our markets.

Speaker #3: As an example, according to VTS, there is approximately 1.2 million square feet of AI office demand in Austin. Third, the flight to quality is unrelenting.

Colin Connolly: As an example, according to BTS, there is approximately 1.2 million square feet of AI office demand in Austin. Third, the flight to quality is unrelenting. Customers are prioritizing high-quality and well-located buildings to promote engagement and collaboration. Again, according to JLL, nearly all of the positive net absorption in the office sector since the onset of COVID has occurred in buildings that were delivered from 2010 to the present. Fourth, the Sun Belt migration continues to re-accelerate. In addition to full corporate relocations, we see an uptick in companies from high cost, less business-friendly cities in the Northeast and West Coast open new Sun Belt corporate hubs. We believe that we are still in the early innings of this migration trend and expect these announcements to continue. Lastly, new construction starts are at historic lows.

Speaker #3: Customers are prioritizing high-quality and well-located buildings to promote engagement and collaboration. Again, according to JLL, nearly all of the positive net absorption in the office sector since the onset of COVID has occurred in buildings that were delivered from 2010 to the present.

Speaker #3: Fourth, the Sunbelt migration continues to re-accelerate. In addition to full corporate relocations, we see an uptick in companies from high-cost, less-business-friendly cities in the Northeast and West Coast open new Sunbelt corporate hubs.

Speaker #3: We believe that we are still in the early innings of this migration trend and expect these announcements to continue. Lastly, new construction starts are at historic lows.

Speaker #3: Given the 3 to 4-year lead time to deliver a new project, supply is unlikely to grow until 2030 at the earliest. What are the implications of these trends?

Colin Connolly: Given the 3 to 4-year lead time to deliver a new project, supply is unlikely to grow until 2030 at the earliest. What are the implications of these trends? Simply stated, the office market has bifurcated. The commodity office sector has minimal demand and is significantly oversupplied, or said differently, under demolished. At the same time, the lifestyle office sector is increasingly undersupplied. The net result for Cousins is an emerging shortage of premier lifestyle office space in the best submarkets of the Sun Belt, a shortage that will become increasingly acute over the next several years and favor landlords. Cousins is uniquely positioned to benefit from these trends. Turning to our strategy, as we outlined on prior earnings calls, our focus remains unchanged.

Speaker #3: Simply stated, the office market has bifurcated. The commodity office sector has minimal demand and is significantly oversupplied, or, said differently, under-demolished. At the same time, the lifestyle office sector is increasingly undersupplied. The net result for Cousins is an emerging shortage of premier lifestyle office space in the best submarkets of the Sunbelt—a shortage that will become increasingly acute over the next several years and favor landlords.

Speaker #3: Cousins is uniquely positioned to benefit from these trends. Turning to our strategy, as we outlined on prior earnings calls, our focus remains unchanged. We are sharply focused on driving sustainable earnings growth while maintaining our best-in-class balance sheet and continuing to enhance the quality of our Sunbelt lifestyle office portfolio.

Colin Connolly: We are sharply focused on driving sustainable earnings growth while maintaining our best-in-class balance sheet and continuing to enhance the quality of our Sun Belt lifestyle office portfolio. During Q2, we advanced this strategy. First, we increased occupancy by 50 basis points to 89.4% across the portfolio as a result of the robust leasing activity. Second, we closed on a series of new investments and dispositions, which upgraded the quality of our portfolio and enhanced our geographic diversification. Third, we closed on a new 5-year, $1.2 billion unsecured credit facility and improved the borrowing spread by 15 basis points. Looking ahead, our team's ability to drive both internal and external growth will be key to increasing FFO. We are in a great position to do both. Looking at internal growth opportunities, we remain confident that the portfolio will reach 90% occupancy at year-end.

Speaker #3: During the second quarter, we advanced this strategy. First, we increased occupancy by 50 basis points to 89.4% across the portfolio, as a result of the robust leasing activity.

Speaker #3: Second, we closed on a series of new investments and dispositions, which upgraded the quality of our portfolio and enhanced our geographic diversification. Third, we closed on a new five-year, $1.2 billion unsecured credit facility and improved the borrowing spread by 15 basis points.

Speaker #3: Looking ahead, our team's ability to drive both internal and external growth will be key to increasing FFO. We are in a great position to do both.

Speaker #3: Looking at internal growth opportunities, we remain confident that the portfolio will reach 90% occupancy at year-end. We have modest near-term lease expirations and a robust late-stage leasing pipeline that will support this effort.

Colin Connolly: We have modest near-term lease expirations and a robust late-stage leasing pipeline that will support this effort. Shifting to external growth opportunities, the strength of our balance sheet provides us flexibility to selectively pursue compelling new investments, including both acquisitions and new developments. As I said previously, the lack of large blocks of available space in many of our markets is likely to be the catalyst for new development opportunities. While nothing is done yet, we are hopeful to have news to share in coming quarters. We are excited about what lies ahead for Cousins. The office market is rebalancing, new construction is virtually nonexistent, and high-quality lifestyle office space is becoming increasingly scarce. The office fundamentals in the Sun Belt are without a doubt tightening, and we expect the positive momentum to continue.

Speaker #3: Shifting to external growth opportunities, the strength of our balance sheet provides us flexibility to selectively pursue compelling new investments, including both acquisitions and new developments.

Speaker #3: As I've said previously, the lack of large blocks of available space in many of our markets is likely to be the catalyst for new development opportunities.

Speaker #3: While nothing is done yet, we are hopeful to have news to share in the coming quarters. We are excited about what lies ahead for Cousins. The office market is rebalancing, new construction is virtually nonexistent, and high-quality lifestyle office space is becoming increasingly scarce.

Speaker #3: The office fundamentals in the Sunbelt are without a doubt tightening, and we expect the positive momentum to continue. Despite ongoing macro volatility, Cousins continues to outperform, supported by a strong operating platform, a highly efficient G&A structure, and one of the strongest balance sheets in the office REIT sector.

Colin Connolly: Despite ongoing macro volatility, Cousins continues to outperform, supported by a strong operating platform, a highly efficient G&A structure, and one of the strongest balance sheets in the office REIT sector. Before turning the call over to Richard, I want to thank our talented Cousins employees. Their commitment to excellence and to serving our customers and each other is the foundation of our success. Richard?

Speaker #3: Before turning the call over to Richard, I want to thank our talented Cousins employees. Their commitment to excellence and to serving our customers and each other is the foundation of our success.

Speaker #3: Richard?

Speaker #2: Thanks, Colin. Good morning, everyone. Our operations team delivered another exceptional performance in the second quarter. Our 924,000 square feet of quarterly leasing activity matched our strong first quarter, resulting in 1.9 million square feet of total volume for the first half of the year.

Richard Hickson: Thanks, Colin. Good morning, everyone. Our operations team delivered another exceptional performance in Q2. Our 924,000 sq ft of quarterly leasing activity matched our strong Q1, resulting in 1.9 million sq ft of total volume for H1. For context, if you look to the past decade, our average annual leasing volume was roughly equal to what we have posted in the first six months of this year. Our Q2 square footage volume was also the second highest quarterly level since mid-2019, with the technology and legal sectors each accounting for about 30% of our activity. On a square foot basis, 43% of our completed leases this quarter were new and expansion leases, totaling 395,000 sq ft, well above our three-year run rate.

Speaker #2: For context, if you look to the past decade, our average annual leasing volume was roughly equal to what we have posted in the first six months of this year.

Speaker #2: Our second quarter square footage volume was also the second-highest quarterly level since mid-2019, with the technology and legal sectors each accounting for about 30% of our activity.

Speaker #2: On a square-foot basis, 43% of our completed leases this quarter were new and expansion leases, totaling 395,000 square feet. Well above our three-year run rate.

Speaker #2: The team also completed 19 renewals, during the second quarter, with renewal square-foot volume at its highest level in well over a decade. This included five renewals greater than 50,000 square feet spanning four different markets, importantly, all five of those renewals either retained or expanded their footprint.

Richard Hickson: The team also completed 19 renewals during Q2, with renewal square foot volume at its highest level in well over a decade. This included five renewals greater than 50,000 sq ft, spanning four different markets. Importantly, all five of those renewals either retained or expanded their footprint. Beyond our fantastic completed activity, our overall leasing pipeline remains strong and at a level consistent with last quarter. As far as our late-stage pipeline is concerned, in our June investor presentation, we shared that 1 million sq ft of activity was either signed Q2 to date or in lease negotiations. As of today, one month into Q3, we have approximately 820,000 sq ft of leases signed or in lease negotiations. Given the strength of our early-stage pipeline, we are confident that number should again surpass the 1 million sq ft mark soon. Turning to lease economics.

Speaker #2: Beyond our fantastic completed activity, our overall leasing pipeline remains strong and at a level consistent with last quarter. As far as our late-stage pipeline is concerned, in our June investor presentation, we shared that 1 million square feet of activity was either signed in the second quarter to date or in lease negotiations.

Speaker #2: As of today, one month into the third quarter, we have approximately 820,000 square feet of leases signed or in lease negotiations. Given the strength of our early-stage pipeline, we are confident that numbers should again surpass the 1 million square foot mark soon.

Speaker #2: Turning to lease economics, quarterly average net rent came in at $41.35, average leasing concessions were $10.17, and average net effective rent was $28.05. Second quarter and first half of 2026 average net effective rent both grew nicely relative to the full year 2025.

Richard Hickson: Quarterly average net rent came in at $41.35. Average leasing concessions were $10.17, and average net effective rent was $28.05. Q2 and H1 2026 average net effective rent both grew nicely relative to the full year 2025 at 8.5% and 16.8% respectively. Finally, second generation cash rents increased again this quarter by 9.2%, with the increases broad based across nearly all of our markets. For the quarter, our total office portfolio end of period leased and weighted average occupancy percentages were 92.8% and 89.4% respectively. Both went up meaningfully sequentially, as well as for the third consecutive quarter. Our portfolio lease percentage increased in all but two markets, with Atlanta as the largest positive contributor by a wide margin. The largest market contributors to organic growth in our weighted average occupancy were Atlanta and Charlotte.

Speaker #2: At 8.5% and 16.8%, respectively. Finally, second-generation cash rents increased again this quarter by 9.2%, with the increases broad-based across nearly all of our markets.

Speaker #2: For the quarter, our total office portfolio end-of-period leased and weighted average occupancy percentages were 92.8% and 89.4%, respectively. Both went up meaningfully, sequentially as well as for the third consecutive quarter.

Speaker #2: Our portfolio leased percentage increased in all but two markets, with Atlanta as the largest positive contributor by a wide margin. The largest market contributors to organic growth in our weighted average occupancy were Atlanta and Charlotte.

Speaker #2: I would also note that the current 3.4% spread between our leased and occupied percentages is at its widest in over three years. As Colin mentioned, our year-end occupancy outlook is unchanged.

Richard Hickson: I would also note that the current 3.4% spread between our leased and occupied percentages is at its widest in over three years. As Colin mentioned, our year-end occupancy outlook is unchanged. I want to remind everyone that we have a couple of large expirations in Charlotte that could result in a modest downtick in occupancy next quarter. However, with low lease expirations and a large backlog of new and expansion leases set to commence in H2 and weighted toward Q4, we remain comfortable with our 90% year-end occupancy goal. Turning to the markets. CBRE notes that this quarter, the Atlanta office market recorded its strongest quarterly activity in four years, and that for the first time in 15 years, no new office projects over 100,000 sq ft are underway, which is truly remarkable.

Speaker #2: I want to remind everyone that we have a couple of large expirations in Charlotte that could result in a modest downtick in occupancy next quarter.

Speaker #2: However, with low lease expirations and a large backlog of new and expansion leases set to commence in the second half and weighted toward the fourth quarter, we remain comfortable with our 90% year-end occupancy goal.

Speaker #2: Turning to the markets, CBRE notes that this quarter the Atlanta office market recorded its strongest quarterly activity in four years, and that for the first time in 15 years, no new office projects over 100,000 square feet are underway, which is truly remarkable.

Speaker #2: We continue to see outsized demand in our portfolio, where we signed 404,000 square feet of leases this quarter. And 51% were new and expansion leases.

Richard Hickson: We continue to see outsized demand in our portfolio, where we signed 404,000 square feet of leases this quarter. 51% were new and expansion leases. With this quarter's outstanding activity, I am pleased to say that Atlanta now stands at 91.6% leased, with a leased to occupied spread of 5.9%. Our new activity included a 46,000 square foot lease with a technology company at 725 Ponce in Midtown, as well as three leases totaling 77,000 square feet at Terminus in Buckhead. The team also rolled up cash rents by 14.3% this quarter. Charlotte saw market fundamentals continue to improve during the quarter, and vacancy reached its lowest level since Q3 2023 per JLL. Our 550 South redevelopment has delivered and is receiving great market feedback.

Speaker #2: With this quarter's outstanding activity, I'm pleased to say that Atlanta now stands at 91.6% leased, with a lease-to-occupied spread of 5.9%. Our new activity included a 46,000-square-foot lease with a technology company at $72.50 in Midtown, as well as three leases totaling 77,000 square feet at Terminus and Buckhead.

Speaker #2: The team also rolled up cash rents by 14.3% this quarter. Charlotte saw market fundamentals continue to improve during the quarter, and vacancy reached its lowest level since the third quarter of 2023, per JLL.

Speaker #2: Our 550 South redevelopment has delivered and is receiving great market feedback. Occupancy at the property increased nearly 10% this quarter, with the commencement of Scout Motors and we are in lease negotiations with three new customers totaling 24,000 square feet.

Richard Hickson: Occupancy at the property increased nearly 10% this quarter with the commencement of Scout Motors. We are in lease negotiations with three new customers totaling 24,000 square feet. The redevelopment of 201 North Tryon is progressing well, and we still expect substantial completion during Q1 2027. Like we stated last quarter, we are taking a patient approach to leasing at this property as the redevelopment progresses. Even still, we are encouraged by our early stage leasing pipeline. In fact, our overall leasing pipeline in Charlotte is nearly 3x what it was this time last quarter. In Austin, JLL notes that the office market recorded over 200,000 square feet of net absorption in H1 2026, marking the first positive H1 reading since 2022.

Speaker #2: The redevelopment of 201 North Tryon is progressing well, and we still expect substantial completion during the first quarter of 2027. Like we stated last quarter, we are taking a patient approach to leasing at this property as the redevelopment progresses.

Speaker #2: Even still, we are encouraged by our early-stage leasing pipeline. In fact, our overall leasing pipeline in Charlotte is nearly three times what it was at this time last quarter.

Speaker #2: In Austin, JLL notes that the office market recorded over 200,000 square feet of net absorption in the first half of 2026. Marking the first positive first-half reading since 2022.

Speaker #2: Despite being nearly 96% leased to start the quarter, the Austin team still signed 74,000 square feet of new and expansion leases, and 42,000 square feet of that was with technology companies.

Richard Hickson: Despite being nearly 96% leased to start the quarter, the Austin team still signed 74,000 square feet of new and expansion leases. 42,000 square feet of that was with technology companies. The team also rolled up cash rents by 16.3%. Finally, subsequent to quarter end, we also completed a 76,000 square foot renewal with a Fortune 10 technology company at Domain7, which was previously a 2027 expiration. In Tampa, JLL notes that trophy buildings had a vacancy rate of only 8.9% in Q2, with a direct asking full service rents in the low $50s per square foot, more than double the average for Class B assets. Our portfolio is also now seeing full service rents strike north of $50 per square foot.

Speaker #2: The team also rolled up cash rents by 16.3%. Finally, subsequent to quarter-end, we also completed a 76,000-square-foot renewal with a Fortune 10 technology company at Domain 7.

Speaker #2: Which was previously a 2027 expiration. In Tampa, JLL notes the trophy buildings had a vacancy rate of only 8.9% in the second quarter, with a direct asking full-service rents in the low 50s per square foot, more than double the average for Class B assets.

Speaker #2: Our portfolio is also now seeing full-service rents strike north of $50 per square foot. For the quarter, we signed 168,000 square feet of leases, including an 89,000-square-foot renewal with a law firm at Corporate Center and a 23,000-square-foot renewal with Deloitte at The Point.

Richard Hickson: For the quarter, we signed 168,000 square feet of leases, including an 89,000 square foot renewal with a law firm at Corporate Center and a 23,000 square foot renewal with Deloitte at The Point. Cushman & Wakefield reports that the Phoenix office vacancy rate fell this quarter by the fastest pace in over a decade. Further, CBRE recently placed Phoenix fourth nationally for net corporate headquarters relocations. Our portfolio has certainly been a beneficiary of that activity over the past few quarters. We do not see it stopping. This quarter, our team signed 139,000 square feet of leases, including a 109,000 square foot renewal with the same Fortune 10 technology company that we just renewed in Austin. The team also completed two smaller new leases with companies in the AI space. In Dallas, JLL notes that the quarter saw positive absorption, restrained new construction, and continued large corporate in-migrations.

Speaker #2: Cushman & Wakefield reports the Phoenix office vacancy rate fell this quarter by the fastest pace in over a decade. Further, CBRE recently placed Phoenix fourth nationally for net corporate headquarters relocations.

Speaker #2: Our portfolio has certainly been a beneficiary of that activity over the past few quarters, and we do not see it stopping. This quarter, our team signed 139,000 square feet of leases.

Speaker #2: Including a 109,000 square foot renewal with the same Fortune 10 technology company that we just renewed in Austin. The team also completed two smaller new leases with companies in the AI space.

Speaker #2: In Dallas, JLL notes that the quarter saw positive absorption, restrained new construction, and continued large corporate and migrations. In our portfolio, we signed 57,000 square feet of renewals, including a 52,000 square foot renewal with US Renal Care at Legacy Union One in Plano.

Richard Hickson: In our portfolio, we signed 57,000 sq ft of renewals, including a 52,000 sq ft renewal with U.S. Renal Care at Legacy Union 1 in Plano. Recall that we took over management of Legacy Union 1 from Ovintiv in Q1. Ovintiv has now since expired at Q2 end, enabling us to go direct with all of their subtenants, now collectively occupying 282,000 sq ft of space in the building. Of that square footage, roughly 80% is set to expire in May 2027. With that said, I'm pleased to announce that we are in lease negotiations with three customers totaling 214,000 sq ft. This includes two renewals and one large new lease. Upon execution of these leases, we would be 91% leased on what will ultimately be about a 300,000 sq ft building.

Speaker #2: Recall that we took over management of Legacy Union One from Ovintive in the first quarter. Ovintive has now since expired its second quarter-end, enabling us to go direct with all of their subtenants.

Speaker #2: Now collectively occupying 282,000 square feet of space in the building. Of that square footage, roughly 80% is set to expire in May of 2027.

Speaker #2: With that said, I'm pleased to announce that we are in lease negotiations with three customers totaling 214,000 square feet. This includes two renewals and one large new lease.

Speaker #2: Upon execution of these leases, we would be 91% leased on what will ultimately be about a 300,000-square-foot building. Note the new lease does not commence until early 2028, so we expect to have downtime on that space, and possibly the remaining pending vacancy, which totals 187,000 square feet, starting in June commencements.

Richard Hickson: Note, the new lease does not commence until early 2028. We expect to have downtime on that space and possibly the remaining pending vacancy, which totals 187,000 sq ft starting in June 2027 through commencements. Last but not least, our leasing volume this quarter included 49,000 sq ft of activity at Neuhoff in Nashville. Kennedy will share more details about Neuhoff in her remarks. As always, thank you to our entire team for the work you put in to make the start of this year incredibly positive. We appreciate everything you do. I'll now turn it over to Kennedy.

Speaker #2: Last but not least, our leasing volume this quarter included 49,000 square feet of activity at Newhoff in Nashville. Kennedy will share more details about Newhoff and her remarks.

Speaker #2: As always, thank you for our entire team for the work you put in to make the start of this year incredibly positive. We appreciate everything you do.

Speaker #2: I'll now turn it over to Kennedy.

Speaker #1: Thanks, Richard. I'll start by giving a little more detail on Newhoff. Our recently delivered mixed-use project in Nashville. As Richard mentioned, we have now signed the 2-floor lease that I referenced on last quarter's call, which is an expansion with Oracle, bringing the tech firm's footprint to 161,000 square feet.

Kennedy Hicks: Thanks, Richard. I'll start by giving a little more detail on Neuhoff, our recently delivered mixed-use project in Nashville. As Richard mentioned, we have now signed the two-floor lease that I referenced on last quarter's call, which is an expansion with Oracle, bringing the tech firm's footprint to 161,000 sq ft. This lease, combined with a new spec suite lease, brings the office component of the project to 96% leased, all with occupancy that will commence by the end of the year. The multi-family component continues to perform well, having reached over 94% leased and 90% occupancy in recent weeks. As a reminder, we have a future development phase that can accommodate over 300,000 sq ft of additional office space. With the initial phase of Neuhoff stabilized, we are focused on securing some pre-leasing for the next building and encouraged by early discussions.

Speaker #1: This lease, combined with a new spec suite lease, brings the office component of the project to 96% leased. All with occupancy that will commence by the end of the year.

Speaker #1: The multifamily component continues to perform well, having reached over 94% leased, and 90% occupancy in recent weeks. As a reminder, we have a future development phase that can accommodate over 300,000 square feet of additional office space.

Speaker #1: With the initial phase of Newhoff stabilized, we are focused on securing some pre-leasing for the next building, and encouraged by early discussions. On the investment side, we had another productive quarter.

Kennedy Hicks: On the investment side, we had another productive quarter, advancing our core goal of enhancing both our portfolio composition and earnings while maintaining our balance sheet. With each month, the office investments market appears to be functioning better as sales volumes increase and more debt options become available. We have used this opportunity to selectively dispose of a few non-core assets. In June, we sold Research Park Plaza V in Austin for a gross price of $42 million or $243 per sq ft. Research Park was a stand-alone building for us in Northwest Austin with what we viewed as a lower growth profile, and we felt our capital and focus was best invested elsewhere. We have also now closed on the previously announced sale of 111 Congress, a CBD Austin building built in the late 1980s.

Speaker #1: Advancing our core goal of enhancing both our portfolio composition and earnings while maintaining our balance sheet. With each month, the office investments market appears to be functioning better.

Speaker #1: As sales volumes increase and more debt options become available, we have used this opportunity to selectively dispose of a few non-core assets. In June, we sold Research Park Plaza 5 in Austin for a gross price of $42 million, or $243 per square foot.

Speaker #1: Research Park was a standalone building for us in Northwest Austin, with what we viewed as a lower growth profile, and we felt our capital and focus was best invested elsewhere.

Speaker #1: We have also now closed on the previously announced sale of 111 Congress, a CBD Austin building built in the late 1980s. We sold the 519,000-square-foot tower for a gross price of $208 million, or $400 per square foot.

Kennedy Hicks: We sold the 519,000 square foot tower for a gross price of $208 million, or $400 per square foot. Both of these marketed assets received good buyer interest and traded around a 9% combined cap rate. As a reminder, these were non-core assets with limited remaining lease term, and in the case of 111 Congress, ongoing capital needs, which was reflected in the prices. This profile is not reflective of our overall portfolio, which is why we chose to sell. We are always evaluating our portfolio and weighing dispositions relative to new opportunities and the impact to earnings. We will only pursue sales if we have identified a better use of proceeds.

Speaker #1: Both of these marketed assets received good buyer interest and traded around a 9% combined cap rate. As a reminder, these were non-core assets with limited remaining lease term and, in the case of 111 Congress, ongoing capital needs, which was reflected in the prices.

Speaker #1: This profile is not reflective of our overall portfolio, which is why we chose to sell. We are always evaluating our portfolio, and weighing dispositions relative to new opportunities and the impact to earnings.

Speaker #1: As we have discussed in the past, there are very few assets remaining within our portfolio that we consider non-core. However, we will only pursue sales if we have identified a better use of proceeds.

Speaker #1: On the acquisition side, we bought out our partner's 10% interest in 100 Mill for $18.5 million, which was based on a value of $158.7 million or $552 per square foot.

Kennedy Hicks: On the acquisition side, we bought out our partner's 10% interest in 100 Mill for $18.5 million, which was based on a value of $158.7 million or $552 per square foot. 100 Mill is a trophy office building in the heart of Tempe that we delivered in 2022. Today, it is over 98% leased. The buyout was always part of our business plan, giving us 100% ownership of our premier Tempe portfolio. As Richard commented, we are enthusiastic about how quickly the vacancy has dropped in this sub-market and believe that this asset offers a great long-term growth profile given the ongoing rent growth that we are experiencing. We also entered into a new joint venture in Austin on a development project called 5th & Walsh, which broke ground this month.

Speaker #1: 100 Mill is a trophy office building in the heart of Tempe that we delivered in 2022. Today, it is over 98% leased. The buyout was always part of our business plan, giving us 100% ownership of our premier Tempe portfolio.

Speaker #1: As Richard commented, we are enthusiastic about how quickly the vacancy has dropped in this submarket, and believe that this asset offers a great long-term growth profile.

Speaker #1: Given the ongoing rent growth that we are experiencing, we also entered into a new joint venture in Austin on a development project called Fifth and Walsh, which broke ground this month.

Speaker #1: Fifth and Walsh is in the dynamic and highly desirable Clarksville neighborhood, just on the western edge of downtown, one mile from Sale Tower. Clarksville benefits from high barriers to entry and great access to affluent residential neighborhoods.

Kennedy Hicks: 5th & Walsh is in the dynamic and highly desirable Clarksville neighborhood, just on the western edge of downtown, 1 mile from Sail Tower. Clarksville benefits from high barriers to entry and great access to affluent residential neighborhoods. It is known for its vibrancy with a wide array of walkable amenities authentic to the city. The boutique 199,000 square foot building will feature 22,000 square feet of ground level retail and four stories of trophy quality office space, which is already 58% leased. Our investment in the project is in a preferred equity position of up to $31.5 million. We anticipate funding this mostly over H2 2027, and upon funding will receive a 10% preferred return. As part of the agreement, we have a right of first offer to purchase the building post-completion.

Speaker #1: It is known for its vibrancy, with a wide array of walkable amenities authentic to the city. The boutique 199,000 square foot building will feature 22,000 square feet of ground level retail and four stories of trophy quality office space, which has already 58% leased.

Speaker #1: Our investment in the project is in a preferred equity position of up to $31.5 million. We anticipate funding this mostly over the second half of 2027, and upon funding, will receive a 10% preferred return.

Speaker #1: As part of the agreement, we have a right of first offer to purchase the building post-completion. We believe that this is a great way to generate near-term earnings coupled with a future acquisition opportunity, with an underlying building that fits squarely into our strategy.

Kennedy Hicks: We believe that this is a great way to generate near-term earnings coupled with a future acquisition opportunity with an underlying building that fits squarely into our strategy. The net result of these transactions is a newer, higher quality, more geographically balanced portfolio. As Colin mentioned, we continue to evaluate other development opportunities and have the ability to be flexible in terms of structure. Given the emerging scarcity of available lifestyle office space, we maintain our belief that there will be select office development projects that offer an appropriate and compelling return premium. These could come both in the form of a JV with a developer or developments that we execute ourselves utilizing our strong land bank.

Speaker #1: The net result of these transactions is a newer, higher-quality, more geographically balanced portfolio. As Colin mentioned, we continue to evaluate other development opportunities and have the ability to be flexible in terms of structure.

Speaker #1: Given the emerging scarcity of available lifestyle office space, we maintain our belief that there will be select office development projects that offer an appropriate and compelling return premium.

Speaker #1: These could come both in the form of a JV with a developer, or as developments that we execute ourselves, using our strong land bank. We also intend to remain acquisitive.

Colin Connolly: We also intend to remain acquisitive. We are laser-focused on quality and executing acquisitions in a manner that is accretive to earnings. We believe that we have a continued competitive advantage given the limited pool of investors that can transact on large office assets, our best-in-class balance sheet, and market intelligence. In short, we are optimistic about H2 of the year. With that, I'll turn the call over to Gregg.

Speaker #1: We are laser-focused on quality and executing acquisitions in a manner that is accretive to earnings. We believe that we have a continued competitive advantage given the limited pool of investors that can transact on large office assets, our best-in-class balance sheet, and market intelligence.

Speaker #1: In short, we are optimistic about the second half of the year. With that, I'll turn the call over to Gregg.

Speaker #2: Thanks, Kennedy. I'll begin my remarks by providing a brief overview of our results, spending a moment on our same property performance. Then moving on to our property transactions and capital markets activity, before closing my remarks by updating our 2026 earnings guidance.

Gregg Adzema: Thanks, Kennedy. I'll begin my remarks by providing a brief overview of our results, spending a moment on our same property performance, then moving on to our property transactions and capital markets activity before closing my remarks by updating our 2026 earnings guidance. Overall, as Colin stated upfront, our Q2 results were outstanding. Second-generation cash leasing spreads were positive, same property year-over-year cash NOI increased, and leasing volume was exceptionally strong. Focusing on same property performance for a moment, cash NOI grew 5.9% during Q2 compared to last year. This follows a 5.5% increase during Q1. These numbers are a clear reflection of the increasingly healthy office fundamentals in our Sun Belt markets.

Speaker #2: Overall, as Colin stated upfront, our second quarter results were outstanding. Second generation cash leasing spreads were positive, same property year over year cash MMI increased, and leasing volume was exceptionally strong.

Speaker #2: Focusing on same-property performance for a moment, cash NOI grew 5.9% during the second quarter compared to last year. This follows a 5.5% increase during the first quarter.

Speaker #2: These numbers are a clear reflection of the increasingly healthy office fundamentals in our Sunbelt markets. As Kennedy discussed earlier, we closed several property-level transactions since our last earnings call, and although she outlined the rationale and the economics for these deals, I thought it might be helpful to provide a little clarity on the accounting treatment for each.

Gregg Adzema: As Kennedy discussed earlier, we closed several property-level transactions since our last earnings call. Although she outlined the rationale and the economics for these deals, I thought it might be helpful to provide a little clarity on the accounting treatment for each. First transaction, the purchase of our joint venture partner's 10% interest in 100 Mill, was recorded as an equity transaction under GAAP. Therefore, did not result in any gain or loss running through our income statement. Second transaction, our sale of Research Park V, generated a gain of $9.2 million, which ran through net income, but not FFO or FAD. The third, our preferred equity investment in 5th & Walsh, will be classified as an investment in real estate debt, and the cash flow will run through our income statement as interest income.

Speaker #2: The first transaction, the purchase of our joint venture partner's 10% interest in 100 Mill, was recorded as an equity transaction under GAAP and, therefore, did not result in any gain or loss running through our income statement.

Speaker #2: Second transaction, our sale of Research Park Five, generated a gain of $9.2 million, which ran through net income, but not FFO or FAD.

Speaker #2: The third, our preferred equity investment in Fifth and Walsh, will be classified as an investment in real estate debt, and the cash flow will run through our income statement as interest income.

Speaker #2: And finally, we moved 111 Congress to held for sale on our balance sheet during the second quarter. As you may recall, we marked this asset to market last quarter, and therefore the sale did not generate a significant gain or loss upon closing earlier this week.

Gregg Adzema: Finally, we moved 111 Congress to held for sale on our balance sheet during Q2. As you may recall, we marked this asset to market last quarter. Therefore, the sale did not generate a significant gain or loss upon closing earlier this week. Moving to our capital markets activity, it was a very busy and productive quarter. We closed on a recast of our unsecured credit facility, extending the term by 5 years and increasing the size to $1.2 billion. We also added extension options on 2 term loans totaling $500 million. With that, I'll close our prepared remarks by updating our 2026 earnings guidance. We currently anticipate full year 2026 FFO between $2.92 and $2.98 per share, with a midpoint of $2.95. This is up from a prior midpoint of $2.94 per share and represents an increase of 3.9% over the prior year.

Speaker #2: Moving to our capital markets activity, it was a very busy and productive quarter. We closed on a recast of our unsecured credit facility, extending the term by five years and increasing the size to $1.2 billion.

Speaker #2: We also added extension options on two term loans totaling $500 million. With that, I'll close our prepared remarks by updating our 2026 earnings guidance.

Speaker #2: We currently anticipate full year 26 FFO between 292 and 298 per share. With a midpoint of $2.95. This is up from a prior midpoint of $2.94 per share, and represents an increase of 3.9% over the prior year.

Speaker #2: The increase in FFO guidance is primarily driven by leasing activity that exceeded our prior forecast, as well as the impact of the property-level transactions that have recently taken place.

Gregg Adzema: The increase in FFO guidance is primarily driven by leasing activity that exceeded our prior forecast, as well as the impact of the property-level transactions that have recently taken place. Our updated guidance also assumes the 2.9 million shares we previously issued on a forward basis are settled during Q3, a quarter later than our prior guidance. We continue to monitor the office sales market, as Kennedy discussed earlier, and explore additional non-core property sales. If we do move forward with additional sales, we may again delay the share settlement. However, for modeling purposes, we assume the settlement of all outstanding forward shares during Q3, and that's what's in our guidance. Beyond the transactions completed to date, the only remaining property transaction currently included in our updated guidance is the sale of our 303 Tremont land parcel during Q4.

Speaker #2: Our updated guidance also assumes the 2.9 million shares we previously issued on a forward basis are settled during the third quarter, a quarter later than our prior guidance.

Speaker #2: We continue to monitor the office sales market, as Kennedy discussed earlier, and explore additional non-core property sales. If we do move forward with additional sales, we may again delay the share settlement.

Speaker #2: However, for modeling purposes, we assume the settlement of all outstanding forward shares during the third quarter, and that's what's in our guidance. Beyond the transactions completed to date, the only remaining property transaction currently included in our updated guidance is the sale of our 303 Tremont land parcel during the fourth quarter.

Speaker #2: If we do ultimately complete any other sales, purchases, or development starts during '26, we'll update our guidance accordingly. With that, let me turn the call back over to the operator for your questions.

Gregg Adzema: If we do ultimately complete any other sales, purchases, or development starts during 2026, we'll update our guidance accordingly. With that, let me turn the call back over to the operator for your questions.

Speaker #3: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star, followed by one, on your touch-tone phone.

Operator 2: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touchtone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you do have any questions. First, we will hear from Anthony Paolone at JPMorgan Chase. Please go ahead.

Operator: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touchtone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you do have any questions. First, we will hear from Anthony Paolone at JPMorgan Chase. Please go ahead.

Speaker #3: You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two.

Speaker #3: And if you're using your speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now.

Speaker #3: If you do have any questions. First, we will hear from Anthony Palone at JPMorgan Chase. Please go ahead.

Speaker #4: Gregg, thank you, and good morning. My first question relates to rent spreads. I think back in June, at the NAREIT Conference, you talked about how there had been so much leasing for top space that you were starting to see some real step functions up in rent.

Anthony Paolone: Great. Thank you, and good morning. My first question relates to rent spreads. I think back in June at the Nareit conference, you talked about how there had been so much leasing for top space that you were starting to see some real step functions up in rent, and I think your spreads in the quarter were good, but they've been at about that 10% level on average for a while now. I was wondering if you can talk to whether we should expect to see some movement in that or maybe just add a bit more color on what's been happening to market rents.

Speaker #4: And I think your spreads in the quarter were good, but they've been at about that 10% level on average for a while now. So I was wondering if you can talk to whether we should expect to see some movement in that, or maybe just add a bit more color on what's been happening to market rents.

Speaker #5: Good morning, Tony. It's Colin. Again, we were very pleased to have our 49th straight quarter of positive rent roll-ups. You mentioned the 9% number, which is very strong.

Colin Connolly: Good morning, Tony. It's Colin. Again, we were very pleased to have our 49th straight quarter of positive rent roll-ups. You mentioned the 9% number, which is very strong. What was below the double-digit cash rent spread we had in Q1, but I would remind you that quarter to quarter, the rent spreads are a function of the mix in that particular quarter. At the same time, they're really a function of terms that were perhaps agreed to a quarter or two prior. As I mentioned in past meetings, we have had, I'd say, at Cousins, a bit of a bias to drive occupancy.

Speaker #5: What was below the double digit cash rent spread we had in the first quarter. But I would remind you that quarter to quarter, the rent spreads are a function of the mix in that particular quarter.

Speaker #5: And at the same time, they're really a function of terms that were perhaps agreed to a quarter or two prior. So, as I mentioned in past meetings, we have had, I'd say, at Cousins, a bit of a bias to drive occupancy.

Speaker #5: We now think that we are at an inflection point—certainly in most of our submarkets—where we'll have an opportunity, given fewer blocks of space, to both drive occupancy but also drive net effective rents through, hopefully, higher rents and lower concessions.

Colin Connolly: We now think that we are at an inflection point, certainly in most of our submarkets, where we'll have an opportunity, given the fewer blocks of space, to both drive occupancy but also drive net effective rents through hopefully higher rents and lower concessions. We're pretty optimistic that in coming quarters, we're going to continue to post some pretty strong rent numbers.

Speaker #5: So we're pretty optimistic that in coming quarters, we're going to continue to post some pretty strong rent numbers.

Speaker #4: Okay, thanks for that. And then, excuse me, my follow-up is just with regards to cap rates. You talked about the non-core being in that 9–10% range on the dispositions.

Anthony Paolone: Okay. Thanks for that. Then, excuse me, my follow-up is just with regards to cap rates. You talked about just the non-core being in that 9% to 10% range on the dispositions. Any sense as to if you continue to make investments, and it sounds like you're still considering some further asset sales, what the spread might be that we should think about? Where is the spread if the non-core stuff is 9 to 10, versus maybe where you might buy?

Speaker #4: Any sense as to, if you continue to make investments—and it sounds like you're still considering some further asset sales—what the spread might be that we should think about?

Speaker #4: Where is the spread if the non-core stuff is 9 to 10, versus maybe where you might buy?

Speaker #5: Yeah. So Tony, again, it's Colin. The one, I'd say with the recycling activity that we've done really over the last 18 months, but even over the last five years, we while we might have a non-core asset or two left, we really believe that at Cousins, we're in a fortunate position where we're almost at a non-core and we just are transitioning to, we'll always have a bottom 5%.

Colin Connolly: Yeah. Tony, again, it's Colin. One, I'd say with the recycling activity that we've done really over the last 18 months, but even over the last 5 years, while we might have a non-core asset or two left, we really believe that at Cousins we're in a fortunate position where we're almost out of non-core and we just are transitioning to we'll always have a bottom 5%. I think in time, the spread of any sale that we make relative to how we reinvest it will be much tighter, which is a great position to be in. I would just refer back again to our strategic priority, which is to drive sustainable earnings growth while maintaining our best-in-class balance sheet and continuing to enhance the quality of our Sun Belt office portfolio.

Speaker #5: And so I think in time, the spread of any sale that we make relative to how we reinvest it is going to be will be much tighter.

Speaker #5: Which is a great position to be in. And so, I would just refer back again to our strategic priority, which is to drive sustainable earnings growth, while maintaining our best-in-class balance sheet and continuing to enhance the quality of our Sunbelt office portfolio.

Speaker #5: So, with leverage levels as strong as they are, and the overall portfolio as strong as it is, we're not in a position where we need to sell.

Colin Connolly: With leverage levels as strong as they are and the overall portfolio as strong as it is, we're not in a position where we need to sell. We will sell if we can make sense that the source of the cash, i.e., a disposition relative to the return on the use of cash, it creates accretion to our earnings profile. If it doesn't, we're just unlikely to be a seller.

Speaker #5: We will sell if we can make sense that the source of the cash, i.e., a disposition relative to the return on the use of cash creates accretion to our earnings profile.

Speaker #5: And if it doesn't, we're just unlikely to be a seller.

Speaker #4: Okay. Thank you.

Anthony Paolone: Okay. Thank you.

Speaker #3: Last question will be from Blaine Heck at Wells Fargo. Please go ahead.

Operator 2: Our question will be from Blaine Heck at Wells Fargo. Please go ahead.

Operator: Our question will be from Blaine Heck at Wells Fargo. Please go ahead.

Speaker #2: Great, thanks. Good morning, everyone. It sounds like the interest in 201 North Tryon is strong and potentially outpacing your expectations. I guess—could you give a little more color on the overall square footage of prospective tenants that you're having discussions with?

Blaine Heck: Great. Thanks. Good morning, everyone. It sounds like the interest in 201 North Tryon is strong and potentially outpacing your expectations. I guess, can you give a little more color on the overall square footage of prospective tenants that you're having discussions with? What types of tenants are most interested, kind of what industry, and how motivated you guys are to get some near-term pre-leasing done as you get closer to completion, versus maybe continuing to wait for better rent economics?

Speaker #2: What types of tenants are most interested? Kind of, what industry? And how motivated are you guys to get some near-term pre-leasing done as you get closer to completion, versus maybe continuing to wait for better rent economics?

Speaker #6: Sure. Hey, it's Richard. The size range of the prospects in our pipeline right now are pretty diverse. We have a couple that are as large as 200,000 square feet.

Richard Hickson: Sure. Hey, it's Richard. The size range of the prospects in our pipeline right now are pretty diverse. We have a couple that are as large as 200,000 square feet. I would say they're really early, and they've frankly been in the pipeline for a little while, not terribly fast to move. What we have seen over the last couple of months is more activity in the single floor to two to three floor level. Call it 25 to 75,000 square feet. Those tend to be not the larger traditional financial services, but more niche financial services uses, and then also legal and general professional services. It's a good diverse pipeline from an industry perspective. In terms of how aggressive we'll be, again, we are being patient, but we are by no means hitting the brakes completely on leasing.

Speaker #6: I would say they're really early, and they've frankly been in the pipeline for a little while, and so not terribly fast to move. What we have seen over the last couple of months is more activity in the single-floor to two-, three-, and four-level.

Speaker #6: So call it 25,000 to 75,000 square feet. And those tend to be not the larger financials—traditional financial services—but more niche financial services uses.

Speaker #6: And then also legal and general professional services. So it's a good, diverse pipeline from an industry perspective. In terms of how aggressive we'll be, again, we are being patient, but we are by no means hitting the brakes completely on leasing.

Speaker #6: So, if we see a great business that we think is a good fit, we are going to be aggressive and still look in certain instances.

Richard Hickson: If we see a great business that we think is a good fit, we are going to be aggressive and still look in certain instances, and I think 201 North Tryon is one, where we will look to drive occupancy. Again, we're also keeping an eye on doing what's right for the long term, and where we think we can hold out, especially on a bigger requirement, and get better economics, we're going to look to do that.

Speaker #6: And I think 201 North Tryon is one where we will look to drive occupancy. But again, we are also keeping an eye on doing what's right for the long term and where we think we can hold out, especially on a bigger requirement and get better economics.

Speaker #6: We're going to look to do that.

Speaker #2: Okay, great, that's helpful. I guess related to that, if you were to sign a lease on that space today, could it be rent-paying in early '27 at completion?

Blaine Heck: Okay, great. That's helpful. I guess related to that, if you were to sign a lease on that space today, could it be rent paying in early 2027 at completion, or would the build-out of the specific space kind of push revenue recognition to later in the year, or even 2028?

Speaker #2: Or would the build-out of the specific space kind of push revenue recognition to later in the year? Or even '28?

Richard Hickson: We do have a couple of floors that are leftover floors from prior tenants that are in really good condition. It is possible that if somebody wanted plug-and-play space, we could get them, depending on their timing, get them in pretty quickly, but I would not expect that to be the base case. I think what we're going to see is that it will likely be late 2027 to maybe 2028 when we actually start to get occupancy on a traditional deal that requires a full build-out.

Speaker #6: We do have a couple of floors that are leftover floors from prior tenants that are in really good condition. So, it is possible that if somebody wanted plug-and-play space, we could get them, depending on their timing, get them in pretty quickly.

Speaker #6: But I would not expect that to be the base case. I think what we're going to see is that it will likely be late '27 to maybe '28 when we actually start to get occupancy on a traditional deal that requires a full build-out.

Speaker #5: Yeah. Blaine, last quarter, I mentioned that last quarter I mentioned that based on our prior experience with a lot of the renovations that we've done, that we oftentimes see a pretty material change in the rental rate that we can achieve.

Colin Connolly: Yeah, Blaine. Last quarter I mentioned that.

Blaine Heck: Go ahead, Colin.

Colin Connolly: Last quarter I mentioned that based on our prior experience with a lot of the renovations that we've done, that we oftentimes see a pretty material change in the rental rate that we can achieve. In some cases, $5 a square foot or more from the, call it, the mid-construction rent profile to, Hey, this is a finished product. You can walk tour, kind of experience the space. We're very mindful of that, particularly when we think we'll be signing 10 and 15-year leases. If kind of waiting till year end to achieve a $5 a foot premium is out there, we'll certainly be very thoughtful and think through that. Again, if there's certain situations that come along for a floor or 2 that can drive some near-term occupancy, we'll look at it.

Speaker #5: In some cases, $5 a square foot or more. From the—call it the mid-construction rent profile—to, hey, this is a finished product. You can walk to or kind of experience the space.

Speaker #5: And so we're very mindful of that, particularly when we think we'll be signing 10- and 15-year leases. So, if it means waiting till year-end to achieve a $5 per foot premium that's out there, we'll certainly be very thoughtful and think through that.

Speaker #5: But again, if there are certain situations that come along for a floor or two, that can drive some near-term occupancy, we'll look at it. But I think we just have to balance it, because we think it's a pretty significant jump in the rental rate profile when this project is done at year-end.

Colin Connolly: I think we just got to balance it because it's a pretty significant, we think, jump in the rental rate profile when this project is done at year end.

Speaker #2: Okay, that makes a lot of sense. And then, last one—just switching gears to the potential development opportunities you're pursuing. I was hoping you could give some color on where your required returns or yields are in the current environment, whether you'd lean towards build-to-suit, or if you have the capacity to take on some risk in speculative construction. And related to that, whether there are any pre-leasing hurdles that you'd need to clear.

Blaine Heck: Okay. That makes a lot of sense. Last one, just switching gears to the potential development opportunities you're pursuing. I was hoping you could give some color on where your required returns or yields are in the current environment, whether you lean towards build to suit or have the capacity to take on some risk in speculative construction and, related to that, whether there are any pre-leasing hurdles that you'd kind of need to clear.

Speaker #5: Blaine, it's a broad question, and I think ultimately our view is it's very situational. I think certainly development as an overall opportunity is becoming more viable to Cousins because we do have our own capital and our own development platform.

Colin Connolly: Blaine, it's a broad question. I think ultimately, our view is it's very situational. I think certainly development as an overall opportunity is becoming more viable to Cousins, because we do have our own capital, and our own development platform. There are fewer and fewer blocks of available space. I think ultimately what the return profile is on a development, it absolutely would be a premium over acquisition cap rates. Depending though ultimately what that level is. Is it more build to suit? Is it speculative? We would expect to be compensated if we're taking more speculative risk. I think we're going to just ultimately have to evaluate those opportunities as they come. I do think we're seeing that more broad-based across a lot of our different markets.

Speaker #5: And there are fewer and fewer blocks of available space. So, I think ultimately what the return profile is on a development, it absolutely would be a premium over acquisition cap rates.

Speaker #5: Depending though ultimately what that level is, is it more build to suit? Is it speculative? We would expect to be compensated if we're taking more speculative risk.

Speaker #5: So I think we're going to just ultimately have to evaluate those opportunities as they come. I do think that we're seeing that more broad-based across a lot of our different markets.

Speaker #5: And so we are hopeful that we are going to identify compelling projects that will have compelling returns relative to the risk. But I want to be careful in terms of kind of quoting a specific number.

Colin Connolly: We are hopeful that we are going to identify compelling projects that will have compelling returns relative to the risk. I want to be careful in terms of kind of quoting a specific number. I think competitively, that could put us in a disadvantage.

Speaker #5: I think competitively that could put us in a disadvantage.

Speaker #2: Great, thanks a lot. And nice quarter.

Blaine Heck: Great. Thanks a lot and nice quarter.

Speaker #5: Thanks, Blaine.

Colin Connolly: Thanks, Blaine.

Speaker #4: Next question will be from Andrew Berger at Bank of America. Please go ahead.

Operator 2: Next question will be from Andrew Berger at Bank of America. Please go ahead.

Operator: Next question will be from Andrew Berger at Bank of America. Please go ahead.

Speaker #2: Great. Thank you. And congratulations on another strong quarter. I just wanted to touch on leasing volume and sort of level set expectations going forward.

Andrew Berger: Great. Thank you, and congratulations on another strong quarter. I just wanted to touch on leasing volume and sort of level set expectations going forward. Obviously, again, very strong H1 of the year, but just given you have relatively lower expirations for the remainder of this year and 2027. Could you just help us think about whether or not the volume should taper off at all as we sort of get back into the H2 of this year in 2027? It sounds like the late stage pipeline's still pretty robust. Do you feel like there's enough new demand coming for later and later, so let's say 2028 and beyond, to sort of just help sustain this type of volume going forward? Thank you.

Speaker #2: Obviously, again, very strong first half of the year, but just giving you a relatively lower expirations for the remainder of this year in 2027.

Speaker #2: Could you just help us think about what type of whether or not the volume should taper off at all as we sort of get back into the back half of this year in '27?

Speaker #2: Or it sounds like the late stage pipeline is still pretty robust. Do you feel like there's enough new demand coming for later and later?

Speaker #2: So, let's say 2028 and beyond, to sort of just help sustain this type of volume going forward. Thank you.

Speaker #5: Yeah. Good morning. Again, it's hard for us to predict forward leasing volumes. Because again, that is very situational and sometimes things beyond our control.

Colin Connolly: Yeah. Good morning. Again, it's hard for us to predict forward leasing volumes, because again, that is very situational and sometimes things beyond our control. I guess I would characterize the H1 of this year, the two quarters were both in the top 5 largest leasing volumes in the history of the company, going back 60+ years. I think looking forward though, we're still confident that leasing volumes could achieve above average levels relative to the last 3 to 5 years because we are seeing increasing demand. It is really supported by the two trends we've talked about, the flight to quality, and the Sun Belt migration. We do think we're going to be above average trend. At the same time, we can't promise top 5 quarters every single quarter. We're optimistic that volumes will continue to be strong.

Speaker #5: I guess I would characterize the first half of this year—both quarters were in the top five largest leasing volumes in the history of the company, going back 60-plus years.

Speaker #5: I think kind of looking forward, though, we're still confident that leasing volumes could achieve above average levels relative to the last three to five years because we are seeing increasing demand and it is really supported by the two trends we've talked about, the flight to quality and the Sunbelt migration.

Speaker #5: So, we do think we're going to be above average trend, but at the same time, we can't promise kind of top-five quarters every single quarter.

Speaker #5: But we're optimistic that volumes will continue to be strong. And I'd say one other trend that I think will be supportive of leasing volumes—while you're right, we've got less available space.

Colin Connolly: I'd say kind of one other trend that I think will be supportive of leasing volumes. While you're right, we've got less available space. One thing that we're now seeing in the market is a trend of early renewal asks from some of our larger customers. I think if anybody is evaluating the office market and understanding the relative strength, or is it a landlord or tenant friendly market. When you see an uptick in early renewals, that typically signals customers expect that rental rates are going up and they're going to have fewer options in the future. They're trying to pull forward and lock in some of those renewals early. I think that could be a strong source of leasing demand for our portfolio.

Speaker #5: One thing that we're now seeing in the market is a trend of early renewal asks from some of our larger customers. And I think, as anybody is evaluating the office market and understanding the relative strength—whether it is a landlord- or tenant-friendly market—when you see an uptick in early renewals, that typically signals customers expect that rental rates are going up and they're going to have fewer options in the future.

Speaker #5: And so they're trying to pull forward and lock in some of those renewals early, and I think that could be a strong source of leasing demand for our portfolio.

Speaker #2: Great, thank you. And I just wanted to circle back to Charlotte. I know it was mentioned that there are a couple of larger expirations coming up.

Andrew Berger: Great. Thank you. I just wanted to circle back to Charlotte. I know it was mentioned that there's a couple of larger expirations coming up. Can you just talk about prospects for those spaces and whether or not the current leases are above or below market? Thank you.

Speaker #2: Can you just talk about prospects for those spaces and whether or not the current leases are above or below market? Thank you.

Speaker #5: Sure. No, I spoke

Richard Hickson: Sure. This is Richard. I spoke to the fact that the pipeline in Charlotte has increased pretty substantially quarter over quarter. That applies not just to 201 North Tryon, but also to 550 South. We've had probably the most robust pipeline at 550 so far this year as we've had year to date. Feel good about it. As I mentioned, we've got 24,000 square feet. It's roughly about a floor of new deals and leases. To be clear, the expirations that we have that are at 550 were actually more or less end of Q2. They've happened. They'll just show up in the occupancy numbers starting in Q3.

Speaker #6: This is Richard. I spoke to the fact that the pipeline in Charlotte has increased pretty substantially quarter over quarter, and that applies not just to 201 North Tryon, but also to 550 South.

Speaker #6: We've had probably the most robust pipeline in 550 so far this year as we've had year to date, so I feel good about it. As I mentioned, we've got 24,000 square feet.

Speaker #6: It's roughly about a floor of new deals and leases. And to be clear, the expirations that we have that are at 550 were actually more or less end of the second quarter.

Speaker #6: So they've happened. They'll just show up in the occupancy numbers starting in a third quarter.

Speaker #5: And we've talked about these expirations many times in the past.

Colin Connolly: We've talked about these expirations many times in the past.

Speaker #6: That's right. That's right.

Colin Connolly: That's right.

Speaker #2: Thank you.

Andrew Berger: Thank you.

Operator 2: Next question will be from John Kim at BMO Capital Markets. Please go ahead.

Operator: Next question will be from John Kim at BMO Capital Markets. Please go ahead.

Speaker #4: Next question will be from John Kim at BMO Capital Markets. Please go ahead.

Speaker #2: Thank you. Colin, you mentioned net new supply not increasing until 2030, and I just wanted some clarity as to whether this is all of your markets or if there are certain markets where this supply might come earlier?

David Brown: Thank you. Colin, you mentioned net new supply not increasing until 2030. I just wanted some clarity as to if this is all of your markets or are there certain markets where this supply might come earlier. Aside from that, where do you think rents could go over the next few years? Just given, it seems like a unique situation with not a lot of new supply, especially the type of assets that you own and improving demand at the same time.

John Kim: Thank you. Colin, you mentioned net new supply not increasing until 2030. I just wanted some clarity as to if this is all of your markets or are there certain markets where this supply might come earlier. Aside from that, where do you think rents could go over the next few years? Just given, it seems like a unique situation with not a lot of new supply, especially the type of assets that you own and improving demand at the same time.

Speaker #2: But aside from that, where do you think rents could go over the next few years? Just given it seems like a unique situation with not a lot of new supply, especially the type of assets that you own, and improving demand at the same time.

Speaker #5: Yeah. Great question, John. And we've been predicting this for many quarters. A pending shortage of tier one high-quality space because demand was improving and there has been a no new supply.

Colin Connolly: Great question, John. We've been predicting this for many quarters of a pending shortage of tier 1 high quality space because demand was improving and there has been no new supply. My commentary around 2030 is, here we are in the H2 2026, and the lead time to build is typically somewhere between 3 and 4 years. I really don't think you're going to see any meaningful uptick in deliveries until that time. Again, if the market is already tightening today and very little new supply able to deliver in that timeframe, I do think that you're ultimately going to see, in some cases, a pretty material increase in net effective rents. It's just basic supply and demand. We've already seen that in some markets.

Speaker #5: And so my commentary around 2030 is, here we are in the second half of 2026, and the lead time to build is typically somewhere between three and four years.

Speaker #5: So I really don't think you're going to see any meaningful uptick in deliveries until that time. And so again, if the market has already tightened today, and with very little new supply able to deliver in that timeframe, I do think that you're ultimately going to see, in some cases, a pretty material increase in net effective rents.

Speaker #5: It's just basic supply and demand, and we've already seen that in some markets. I think if you look at Uptown Dallas, that's, I'd say, a pretty good proxy of how that works.

Colin Connolly: I think if you looked at Uptown Dallas, that is a, I'd say, a pretty good proxy of how that works. It's not a simple 3% a year change. We've seen rents in Uptown Dallas over the last 5 years, probably almost double on their base net rental rates. Not saying that's going to be the case in every market, as you have increasing demand and just few options for customers, it will lead to, I'd say, more meaningful rent growth and net effective rent growth that is not just a linear 3% a year. I think it could be double-digit type rent growth.

Speaker #5: And it's not a simple 3% a year change. We've seen rents in Uptown Dallas over the last five years probably almost double on their kind of base net rental rates.

Speaker #5: I'm not saying that's going to be the case in every market, but as you have increasing demand and just a few options for customers, it will lead to, I'd say, more meaningful rent growth and net effective rent growth that is not just a linear kind of 3% a year.

Speaker #5: I think it could be double-digit type rent growth.

Speaker #2: Okay. And I'm not sure if you addressed this on the call, but Fifth—and is the coupon rate on your investment? Do you plan to acquire the assets upon completion?

David Brown: Okay. I'm not sure if you addressed this on the call, Fifth & Walsh, your preferred investment, what is the coupon rate on your investment? Do you plan to acquire the assets upon completion? Has the demand in AI in Austin, has that changed your view on increasing your overall exposure to that market?

John Kim: Okay. I'm not sure if you addressed this on the call, Fifth & Walsh, your preferred investment, what is the coupon rate on your investment? Do you plan to acquire the assets upon completion? Has the demand in AI in Austin, has that changed your view on increasing your overall exposure to that market?

Speaker #2: And has the demand in AI in Austin—has that changed your view on increasing your overall exposure to that market?

Speaker #7: Hey John, it's Kennedy. Yeah, we're really excited about Fifth and Walsh. I did mention that we are getting a 10% preferred return on our position.

Kennedy Hicks: Hey, John, it's Kennedy. We're really excited about Fifth & Walsh. I did mention that we are getting a 10% preferred return on our position. As you alluded to, we do have a right of first offer to purchase it. We'll make that decision if and when that comes up. It's the type of asset that fits right within our portfolio, and it's already 58% pre-leased, which I think is a testament to its reception in the market. We're excited about that and I think have always remained confident in Austin's ability to be pretty resilient. Certainly having this AI demand is helping that, and we've been able to rebalance our position there a little bit with the recent dispositions. We really like our portfolio that's there.

Speaker #7: And as you alluded to, we do have a right of first offer to purchase it. So we'll make that decision if and when that comes up.

Speaker #7: But it's the type of asset that fits right within our portfolio. And it's already 58% pre-leased, which I think is a testament to its reception in the market.

Speaker #7: So we're excited about that, and I think we've always remained confident in Austin's ability to be pretty resilient, and certainly having this AI demand is helping that.

Speaker #7: And we've been able to rebalance our position there a little bit with the recent dispositions, and so we really like our portfolio that's there.

Speaker #5: And John, I'd just add to that—we're excited to partner. We're excited to partner with Endeavor. They are a terrific local sharpshooter in Austin.

Colin Connolly: John, I'd just add to that, we're excited to partner with Endeavor. They are a terrific local sharpshooter in Austin. We've known them for many years and worked with them for many years. They help us lease our product up at The Domain. To expand our relationship with them to this new project at 5th & Walsh, we're excited and look forward to working with them more.

Speaker #5: We've known them for many years and worked with them for many years. They help us lease our product up at the Domain. And so, to expand our relationship with them to this new project at Fifth and Walsh, we're excited and look forward to working with them more.

Speaker #2: Okay. And can I just ask, on Newhoff—now that the office is basically stabilized or fully leased—what is the updated stabilized NOI on that project?

David Brown: Okay. Can I just ask on Neuhoff, now that the office is basically stabilized or fully leased, what is the updated stabilized NOI on that project, and what kind of pre-leasing are you required to move forward with phase II?

John Kim: Okay. Can I just ask on Neuhoff, now that the office is basically stabilized or fully leased, what is the updated stabilized NOI on that project, and what kind of pre-leasing are you required to move forward with phase II?

Speaker #2: And what kind of pre-leasing are you required to move forward with Phase Two?

Speaker #7: I'm not sure we've given an updated stabilized NOI. But in terms of Phase Two, I mean, look, we're having discussions with a variety of size customers.

Kennedy Hicks: I'm not sure we've given an updated stabilized NOI. In terms of phase II, look, we're having discussions with a variety of size customers. The rents, and as Colin alluded to, need to be higher than our current project, but we feel like we can achieve those. There's not a black-and-white line, but we want to make sure that the rents and that we feel like the project's been validated, but that the rents are achievable. We're closely watching that. We do have a partner in that project, so we'll make that decision together as the discussions evolve.

Speaker #7: The rents, I mean, as Colin alluded to, need to be higher than our current project. But we feel like we can achieve those. So, there's not a black and white line, but we want to make sure that the rents—and that we feel like the project's been validated—but that the rents are achievable.

Speaker #7: So we're closely watching that. We do have a partner in that project, so we'll make that decision together as the discussions evolve.

Speaker #2: Okay. Thank you.

David Brown: Okay. Thank you.

Operator 2: Next question will be from Nick Thillman at Baird. Please go ahead.

Operator: Next question will be from Nick Thillman at Baird. Please go ahead.

Speaker #4: Next question will be from Nick Tillman at Baird. Please go ahead.

Speaker #6: Hey, good morning. Colin, you touched a little bit on just the pull-forward of renewals for 2028 and 2029. I was hoping you could maybe bucket the renewal activity into Q and what's included in the pipeline of those leases that are rolling out in '28 and '29 compared to '26 and '27.

Nick Thillman: Hey, good morning. Colin, you touched a little bit on just the pull forward of renewals for 2028, 2029. I was hoping you could maybe bucket the renewal activity in Q2 and what's included in the pipeline of those leases that are rolling out in 2028 and 2029 compared to 2026, 2027. I know that the 2027 pool has a little bit of some shift with 111 coming out of there. I know there was some near term roll and move out from that asset in particular. If you could just break that out. I'm guessing it has to do with the five larger over 50,000 square foot ones, but just point of clarification on that.

Speaker #6: I know that the '27 pool has a little bit of some shift. With 111 coming out of there, I know there were some near-term roll and move-outs in that asset in particular.

Speaker #6: So, just if you could break that out—I’m guessing it has to do with the five larger, over 50,000 square foot ones—but just a point of clarification on that.

Speaker #5: Well, if you looked at the second quarter activity, I think renewals accounted for about 55%-ish of the activity. And as we look forward to the existing late-stage pipeline that Richard outlined, I'd say the percent of new and renewal there is about 50%, which is what it typically is.

Colin Connolly: Well, if you look at the Q2 activity, I think renewals accounted for about 55-ish% of the-

Nick Thillman: That's right.

Colin Connolly: activity. As we look forward to the existing late-stage pipeline that Richard outlined, I'd say the percent of new and renewal there is about 50%, which is what it typically is. I think that as we look out in future quarters, perhaps we could see kind of more of these early renewals happen. I'd say this is a recent phenomenon of discussions on some of these early renewals, and I'd say they're really not yet reflected in our late-stage leasing pipeline.

Speaker #5: I think that the, as we look out in future quarters, perhaps we could see kind of more of these early renewals happen. I'd say this is a recent phenomenon that of discussions on some of these early renewals.

Speaker #5: And I'd say they're really not yet reflected in our late-stage leasing pipeline.

Speaker #2: Okay. So the 50%

Nick Thillman: Okay. The 50% number that you're quoting isn't 50% of 2028, 2029 expirations were addressed in that renewal?

Speaker #6: The number that you're quoting isn't 50% of '28 and '29 expirations; those were addressed in that renewal.

Colin Connolly: No.

Speaker #5: No, no.

Speaker #6: Bucket. Okay.

Nick Thillman: bucket.

Speaker #5: No, no, I'm just saying in our leasing activity in the second quarter, renewals accounted for about 45%—excuse me, 55%—of the activity. And as we look at our late-stage leasing pipeline, renewals account for about 50% of that.

Colin Connolly: No.

Nick Thillman: Yeah. Okay.

Colin Connolly: No. I'm just saying in our leasing activity in Q2, renewals accounted for about 45%, excuse me, 55% of the activity. As we look at our late-stage leasing pipeline, renewals account for about 50% of that. No, we were not saying that 50% of our 2028 expirations are in discussions. We're just saying we are seeing, as a general statement, more 2028 and 2029 expirations reach out and want to discuss renewal possibilities.

Speaker #5: And no, we were not saying that 50% of our 2028 expirations are in discussions. We're just saying we are seeing, in general, that more 2028 and 2029 expirations are reaching out and want to discuss renewal possibilities.

Nick Thillman: Got it.

Richard Hickson: One other data point that might be helpful. For the Q2 activity, if you look at we did 19 renewals. I would characterize three of those as early renewals, so an expiration that was beyond 2027, 2028. The majority of the activity were 2027 expirations, if that helps.

Speaker #6: One other data point that might be helpful for the second quarter activity: if you look at it, we did 19 renewals. I would characterize three of those as early renewals.

Speaker #6: So an expiration that was beyond 2027, '28. So the majority of the activity were '27 expirations. That helps. Yeah, I know that's helpful. And then it seems as though you guys are angling a little bit more on the development side, potentially of getting a start here by year-end.

Nick Thillman: Yeah, no, that's helpful. It seems as though you guys are angling a little bit more on the development side potentially of getting a start here by year-end. Colin, you've talked about the investment cycle. First, it's the core product, and then those yields sort of compress there, and then you can move to the core plus product. I guess, is there any opportunities you're seeing with maybe some now given the lease-up in a lot of the properties for some more maybe newly delivered but with some vacancy that you guys could still potentially get in at a good basis, and still have some upside?

Speaker #6: But Colin, you've talked about the investment cycle. First, it's the core product, and then those yields sort of compress there, and then you can move to the core plus product.

Speaker #6: I guess, is there any opportunities you're seeing with maybe some now, given the lease up in a lot of the properties, for some more maybe newly delivered, but with some vacancy that you guys could still potentially get in at a good basis and still have some upside?

Speaker #5: Yeah, we're absolutely open to that. But I'd say what's a bit unique in this cycle is that, for some various structural reasons with core funds and private REITs, we still have not seen a real re-emergence of core capital. We've seen that maybe the greatest pricing opportunity, or kind of mispriced office real estate, has been more on the core side.

Colin Connolly: Yeah. We're absolutely open to that. I'd say what's a bit unique in this cycle is that, for some various structural reasons with core funds and private REITs, we still have not seen a real reemergence of core capital. We've seen kind of the, maybe the greatest pricing opportunity or kind of mispriced office real estate has been more on the core side. If that opportunity continues to exist like we've done at Sail Tower and like we did at 300 South Tryon in Charlotte, we think that there's still some opportunity there. If capital shifts in and cap rates compress, we'll absolutely look at some core plus opportunities. As Kennedy and I have both mentioned, development, select development, is a possibility as well. We're a bit agnostic.

Speaker #5: And so, if that opportunity continues to exist, like we've done at Sale Tower and like we did at 300 South Tryon in Charlotte, we think that there's still some opportunity there.

Speaker #5: But if capital shifts in and cap rates compress, we'll absolutely look at some core-plus opportunities. And as Kennedy and I have both mentioned, select development is a possibility as well.

Speaker #5: We're a bit agnostic. Again, we always pivot back to our strategic plan, which is to grow earnings while maintaining the balance sheet and upgrading the quality of the portfolio.

Colin Connolly: Again, we always pivot back to our strategic plan, which is to grow earnings while maintaining the balance sheet and upgrading the quality of the portfolio. If we can do that through core acquisitions, core plus, or development, we're a bit agnostic. We look at the risk-return profile and how, ultimately, it impacts that strategic goal, and that's how we make our decisions.

Speaker #5: And if we can do that through core acquisitions, core plus, or development, we're a bit agnostic. We look at the risk-return profile and how ultimately it impacts that strategic goal, and that's how we make our decisions.

Speaker #6: And just the cleanup question for Gregg. Does the guidance assume just the payoff of the two notes with the proceeds of the forward equity and then the disposition sale in Q3?

Nick Thillman: Just a cleanup question for Gregg. Does the guidance assume just the payoff of the two notes with the proceeds of the forward equity and then the disposition sale in three-two?

Speaker #3: Yeah, the two notes that mature for a little over $200 million—one in September, one in October—we pre-refinanced those with our bond deal back in February.

Gregg Adzema: Yeah. The two notes that mature for a little over $200 million, one in September, one in October, we pre-refinanced those with our bond deal back in February.

Speaker #6: Okay, that's it for me. Thank you, all.

Nick Thillman: Okay. That's it for me. Thank you, all.

Speaker #4: Next question will be from Vikram Malhotra at Mizuho. Please go ahead.

Operator 2: Next question will be from Vikram Malhotra at Mizuho. Please go ahead.

Operator: Next question will be from Vikram Malhotra at Mizuho. Please go ahead.

Vikram Malhotra: Morning. Congrats on a strong quarter. I guess if you could expand, you mentioned AI leases or AI leasing. Do you mind digging into that a bit across your markets? How does that specific pipeline look? In the same vein, just on AI, any other thoughts or data points on sort of the concerns some people have on the Sun Belt and just a greater theoretical risk, in their minds of AI and support jobs and how that may be playing out? Thanks.

Speaker #2: Morning, congrats on a strong quarter. I guess if you could expand, you mentioned AI leases or AI leasing. Do you mind digging into that a bit across your markets and how does that specific pipeline look?

Speaker #2: And then in the same vein, just on AI, any other thoughts or data points on the concerns some people have about the Sunbelt and the greater theoretical risk, in their minds, of AI and support jobs, and how that may be playing out?

Speaker #2: Thanks.

Colin Connolly: Vikram, why don't you take the first half about kind of AI pipeline we're seeing across our markets, I'll touch on the broader.

Speaker #5: I want you to take the first half about the kind of AI pipeline we're seeing across our markets, and I'll touch on the broader—sure, sure.

Richard Hickson: Sure. Again, we mentioned Austin has a pretty robust pipeline, and we've seen that in our portfolio. If you look to Q2, how I would characterize the AI demand that showed up in our executed activity, we saw companies that are obviously technology companies that either had an AI driver or component to their business, all the way to hyperscalers like an Oracle, in Atlanta, in Austin, obviously, in Nashville with our Oracle activity, and then also in Phoenix. I'd say beyond Austin, we continue to see some interesting bubbling up of AI companies continue to happen. It is very clear that Austin is the most robust market for us in terms of AI activity.

Speaker #5: Again, we mentioned Austin has a pretty robust pipeline, and we've seen that in our portfolio. If you look to Q2, how I would characterize the AI demand that showed up in our executed activity: we saw companies that are obviously technology companies that either had an AI driver or component to their business, all the way to hyperscalers like an Oracle.

Speaker #5: In Atlanta, in Austin obviously, in Nashville with our Oracle activity, and then also in Phoenix. I'd say beyond Austin, we continue to see some interesting bubbling up of AI companies continuing to happen.

Speaker #5: But it is very clear that Austin is the most robust market for us in terms of AI activity. Yeah. And to your broader question about AI and implications for the Sunbelt, I think it's a bit of a false narrative that the Sunbelt is more back office than the West Coast or the Northeast.

Colin Connolly: Yeah. To your broader question about AI and implications for the Sun Belt, I think it's a bit of a false narrative that the Sun Belt is more back office than the West Coast or the Northeast. Vikram, I think you've actually done some research on that we found that very much confirms what we see on the ground. I think it's more important as you think about risk relative to AI, is to think about what's the underlying quality of the asset that you own. At Cousins, we're fortunate to have arguably one of the highest quality portfolios across the office REIT sector. If you tour our properties, I think you'll very quickly realize that none of our properties are occupied by back office type workers. Their rent profile simply wouldn't support that use. We're, again, full of knowledge workers.

Speaker #5: Vikram, I think you've actually done some research on that, and we found that it very much confirms what we see on the ground.

Speaker #5: I think it's kind of more important, if you think about risk relative to AI, to think about what's the underlying quality of the asset that you own.

Speaker #5: And at Cousins, we're fortunate to have arguably one of the highest quality portfolios across the office sector. If you tour our properties, I think you'll very quickly realize that none of our properties are occupied by back-office type workers.

Speaker #5: Their rent profile simply wouldn't support that use. And so we're, again, full of knowledge workers. And I think over time, again, maybe in my opinion, a bit of a false narrative is that, unlike the technology sector as a whole—which has made a very intentional decision to grow, including their front-of-house revenue-producing employees, outside of places like San Francisco and Seattle, and instead do that in places like Austin and Nashville—that for some reason, the AI component of the tech sector is going to buck that trend.

Colin Connolly: I think over time, again, maybe in my opinion, a bit of a false narrative is that unlike the technology sector as a whole, which has made a very intentional decision to grow, including their front of house revenue producing employees to grow outside of places like San Francisco and Seattle, and instead do that in places like Austin and Nashville, that for some reason, the AI component of the tech sector is going to buck that trend and not also move their future growth to some of these exciting cities because they're far easier to do business with. They're actually much more open and less regulated as it relates to AI, and they're also much more affordable for their employees, while also still offering all of the vibrancy and a great place to live. I think time will prove that out.

Speaker #5: And not only move their future growth to some of these exciting cities because they're far easier to do business with—they're actually much more open and less regulated as it relates to AI—and they're also much more affordable for their employees, while still offering all of the vibrancy and being a great place to live.

Speaker #5: So, I think time will prove that out.

Speaker #2: Oh, that's helpful. Thanks so much. Just maybe one last one. You've talked about the strong demand profile and very limited supply. So, I'm wondering, when you compare to pre-COVID or just what you're seeing on market rents?

Vikram Malhotra: Oh, that's helpful. Thanks so much. Just maybe one last one. You've talked about the strong demand profile and very limited supply. I'm wondering whether you compare to pre-COVID or just like what you're seeing on market rents. What's the tipping point for Cousins and occupancy? Like you hit 90% this year. At what point can you really see rent spikes such that the rent spread profile almost elongates for you? What's that tipping point? Are we there now? Is it a couple of hundred basis points? Maybe just can you give us some context, that'll be helpful.

Speaker #2: What's the tipping point for Cousins and occupancy? You hit 90% this year. At what point can you really see rent spikes such that the rent spread profile almost elongates for you?

Speaker #2: What's that tipping point? Are we there now? Is it a couple of hundred basis points? Maybe just—can you give us some context? That would be helpful.

Speaker #5: Yeah, I think 90% is a pretty good proxy. And it's less about kind of what is the hard and fast line for Cousins. But at 90%, when you look around at what the available blocks of space are across a particular submarket, at 90%, there are very few large blocks of space.

Colin Connolly: Yeah. I think 90% is a pretty good proxy, and it's less about kind of what is the hard and fast line for Cousins. At 90%, when you look around what the available blocks of space are across a particular sub-market, at 90%, there are very few large blocks of space. A lot of times that 90% is made up of a half floor here and a three-quarters floor there. When a customer needs to renew on 50,000 feet or 75,000 square feet, they just have fewer options, and therefore, the simple laws of supply and demand allows you to increase the price. I'd use the market that I'm sitting in today, being Buckhead, as a pretty good proxy.

Speaker #5: A lot of times that 90% is made up of a half floor here and three-quarters of a floor there. And so when a customer needs to renew on 50,000 feet or 75,000 square feet, they just have fewer options, and therefore the simple laws of supply and demand allow you to increase the price.

Speaker #5: I'd use the market that I'm sitting in today—being Buckhead—as a pretty good proxy for the market as a whole. If you were to go look at CoStar statistics, it would tell you that the Buckhead submarket is, some call it, 18 million square feet or more, and that it's probably 25% vacant.

Colin Connolly: The market as a whole, if you were to go look at CoStar statistics, it would tell you that the Buckhead sub-market is some, call it 18 million square feet or more, and that it's probably 25% vacant. The reality is when we look at the subset of buildings that we actually compete with, Enterprises, approximately seven and a half million square feet, and it is closer to 88%, 89% leased. If somebody that needed 75,000 square feet of contiguous space in the Buckhead sub-market today, they have exactly one option. In the coming quarter or two, they could have zero options, which means a landlord looking to renew a customer like that is in a pretty strong position.

Speaker #5: The reality is, when we look at the subset of buildings that we actually compete with, it comprises approximately 7.5 million square feet, and it's closer to 88 to 89 percent leased.

Speaker #5: And if somebody needed 75,000 square feet of contiguous space in the Buckhead submarket today, they have exactly one option. And in the coming quarter or two, they could have zero options, which means a landlord looking to renew a customer like that is in a pretty strong position.

Speaker #2: Great. Thanks so much.

Vikram Malhotra: Great. Thanks so much.

Speaker #1: Next question will be from Pal Rana at KeyBanc Capital Markets. Please go ahead.

Operator 2: Next question will be from Upal Rana at KeyBanc Capital Markets. Please go ahead.

Operator: Next question will be from Upal Rana at KeyBanc Capital Markets. Please go ahead.

Speaker #4: Great, thank you. Just a quick one on Hayden Ferry One. The building's fully leased now, but at 50% occupancy. Is there any timing on when you plan on adding the property back into the same-store pool, and how much incremental NOI do you expect from that? Thanks.

Upal Rana: Great, thank you. Just had a quick one on Hayden Ferry I. The building's fully leased now, but at 50% occupancy. Any timing there that you plan on adding the property back into the same-store pool, and how much incremental NOI do you expect from there? Thanks.

Speaker #6: Sure. This is Richard. Good question. The timing on stabilization, we expect to be early 2027. So you'll see it come back into our operating statistics then.

Richard Hickson: Sure. This is Richard. Good question. The timing on stabilization, we expect to be early 2027, so you'll see it come back into our operating statistics then. I don't believe we've commented on a stabilized NOI.

Speaker #6: And I don't believe we've commented on a stabilized NOI.

Gregg Adzema: It's great. We'd have to have a good year-over-year comp to do a same-property number. It's probably going to come back in at 2029 because you're not going to full year 2027, so you can't pull it into 2028. You're going to have to wait a little bit. In terms of the operating statistics, we'll pull it back into all the operating statistics. We do, though, also publish quarterly NOI numbers, so you'll be able to see that number.

Speaker #7: It's Greg. We'd have to have a good year-over-year comp to do the same property number. So it's probably going to come back in in '29 because you're not going to have a full year '27, so you can't pull it in '28.

Speaker #7: You're going to have to wait a little bit. But in terms of the operating statistics, we'll pull it back into all the operating statistics very soon.

Speaker #5: Yeah. And we do also publish quarterly NOI numbers. So you'll be able to see that number.

Speaker #7: Yeah, yeah. That's true. Yeah. Putting it into the same property pool is not nearly as relevant for you, from a modeling perspective or a performance perspective, as just getting it back into operations and us pulling it out and giving you the NOI on a quarterly basis, which we're going to do very soon.

Gregg Adzema: That's true. Putting it into the same-property pool is not nearly as relevant for you from a modeling perspective, a performance perspective, as just getting it back into operations and us pulling it out and giving you the NOI on a quarterly basis, which we're going to do very soon.

Speaker #4: Okay, great. That was helpful. And then maybe a quick one for Kennedy. Could you give us a sense of the types of transaction opportunities you are seeing in your markets—whether it's quality, pricing, size, or geography?

Upal Rana: Okay, great. That was helpful. Maybe a quick one for Kennedy. Could you give us a sense on the types of transaction opportunities you are seeing in your markets, whether it's quality, pricing, size, or geographically? I know you're looking at everything and ultimately deciding on what to transact has many moving pieces, but wanted to get your sense of what you're seeing out there. Thanks.

Speaker #4: I know you're looking at everything and ultimately deciding on what to transact has many moving pieces, but wanted to get your sense of what you're seeing out there.

Speaker #4: Thanks.

Speaker #1: Yeah. Hey, good question. I mean, it's a total mixed bag in terms of what's being marketed. So we're looking at things that are marketed that fit our profile, but as we've done with some past transactions, we're also looking at things that maybe aren't being broadly marketed.

Kennedy Hicks: Yeah. Hey, good question. It's a total mixed bag in terms of what's being marketed. We're looking at things that are marketed that fit our profile. But as we've done with some past transactions, we're also looking at things that maybe aren't being broadly marketed and leveraging our relationships to try to find assets that fit the profile and make sense for us price-wise. Still, I would say fairly limited pool of assets on the market, just given that there hadn't been the data points. As Colin mentioned, there hadn't been the core buyer pool to sell into. We're confident that we'll find some opportunities that will work for us.

Speaker #1: And leveraging our relationships to try to find assets that fit the profile and make sense for us price-wise. So still, I would say, a fairly limited pool of assets on the market, just given that there haven't been the data points and, as Colin mentioned, there hasn't been the core buyer pool to sell into.

Speaker #1: But we're confident that we'll find some opportunities that will work for us.

Speaker #4: Okay. Great. Thank you.

Upal Rana: Okay, great. Thank you.

Gregg Adzema: That's okay.

Operator 2: Next question will be from Brendan Lynch at Barclays. Please go ahead.

Operator: Next question will be from Brendan Lynch at Barclays. Please go ahead.

Speaker #1: Next question will be from Brandon Lynch at Barclays. Please go ahead.

Speaker #8: Good morning. Thanks for taking the questions. Obviously, you're making a lot of progress on capital recycling down to fewer non-core assets. Colin, I think you mentioned there's always a bottom 5% in your pool.

Brendan Lynch: Good morning. Thanks for taking the questions. Obviously, you're making a lot of progress on capital recycling down to fewer non-core assets. Colin, I think you mentioned there's always a bottom 5% in your pool. How should we think about that in terms of redevelopment opportunities? I think you've made a lot of progress on that. I'm just curious if there's other ones that you've identified more recently that we could see over the next couple of years.

Speaker #8: How should we think about that in terms of redevelopment opportunities? I think you've made a lot of progress on that. I'm just curious if there's other ones that you've identified more recently that we could see over the next couple of years.

Speaker #5: Yeah. Good morning. The in addition to the recycling that we've done, we've also over the last year or five years pursued a pretty aggressive redevelopment campaign.

Colin Connolly: Yeah. Good morning. In addition to the recycling that we've done, we've also, over the last five years, pursued a pretty aggressive redevelopment campaign. I'd say largely that was driven by a view that if an asset we believe can be upgraded and firmly repositioned into that tier 1 lifestyle office sector, the best time to execute that repositioning was when our customers were actually not using the property. We made a lot of headway during COVID. More recently, we're very hard at work in Charlotte, having just completed 550, 201 North Tryon, obviously, as I mentioned, will complete kind of end of the year, Q1. As we look forward, there's far fewer of those redevelopment projects. The ones that I'd point out that are kind of upcoming would be Terminus here in Atlanta.

Speaker #5: And I'd say largely that was driven by a view that if we're going to an asset we believe can be upgraded and firmly repositioned into that tier one lifestyle office sector, the best time to execute that repositioning was when our customers were actually not using the property.

Speaker #5: So we made a lot of headway during COVID. More recently, we're very hard at work in Charlotte having just completed 550, 201 North Tryon.

Speaker #5: Obviously, as I mentioned, we'll complete kind of end of the year, first quarter. And so as we look forward, there's far fewer of those redevelopment projects that the ones that I'd point out that are kind of upcoming would be terminus here in Atlanta.

Speaker #5: We just completed a repositioning of the lobby of the terminus 200 building, and we're now going to turn our attention to the 100 building.

Colin Connolly: We just completed a repositioning of the lobby of the Terminus 200 building. We're now going to turn our attention to the 100 building in a great location in the middle of Buckhead, a trophy iconic building. Our team's going to do great work there. Richard touched on Legacy in Dallas, in the Legacy submarket of Dallas. We are in the midst of effectively turning a single tenant building into a multi-tenant building. We're excited that we've already knocked out the vast majority of the leasing. As a part of those leases, we have committed to the repositioning, again, to convert it to its multi-tenant use. Again, we're excited that we've significantly de-risked that from an occupancy perspective, from a leasing perspective.

Speaker #5: It's in a great location, in the middle of Buckhead—a trophy, iconic building—and our team's going to do great work there. Richard touched on Legacy in Dallas, in the Legacy submarket of Dallas.

Speaker #5: There are we are in the midst of effectively turning a single-tenant building into a multi-tenant building. And we're excited that we've already knocked out the vast majority of the leasing but as a part of those leases, we have committed to the repositioning again to convert it to its multi-tenant use.

Speaker #5: And again, we're excited that we've significantly de-risked that from an occupancy perspective, from a leasing perspective.

Speaker #8: Great, thanks. That's helpful. And maybe one for Gregg. On the equity settlement, you suggested you could delay it again. Can you just walk us through the mechanics and your considerations in potentially doing so?

Brendan Lynch: Great. Thanks. That's helpful. Maybe one for Gregg on the equity settlement. You suggested you could delay it again. Can you just walk us through the mechanics and your considerations in potentially doing so?

Speaker #7: Yeah, well, the mechanics are pretty simple. We're not plowing new ground here. We've issued equity on a forward basis using our ATM. You've got an agreement with the institutions on the other side of the transaction.

Gregg Adzema: Well, the mechanics are pretty simple. We're not plowing new ground here. We've issued equity on a forward basis using our ATM. You've got an agreement with the institutions on the other side of that transaction. The current agreement that we have with the institutions expires year-end 2026, you can extend those. They're commonly extended. There really isn't a governor on our ability to extend based just on the agreement. In terms of our decision making around it, as Colin said upfront, and as we've said many times, it just comes down to a sources and uses for us. We want to make sure that we do these transactions that we're talking about, whether it's an acquisition or a development, on an accretive basis. Got to increase earnings. That's the North Star.

Speaker #7: The current agreement that we have with the institutions expires year-end 2026, but you can extend those. They're commonly extended, and so there really isn't a governor on our ability to extend based just on the agreement.

Speaker #7: And then in terms of our decision-making around it, as Colin said upfront and as we've said many times, it just comes down to a sources and uses for us.

Speaker #7: We want to make sure that we do these transactions that we're talking about, whether it's an acquisition or development, on an accretive basis. Got to increase earnings.

Speaker #7: That's the North Star. But we're not going to do it at the expense of our balance sheet. And so the genius of having these forward shares outstanding is as we uncover new investment opportunities and we look to fund them. If we can fund them with dispositions on an accretive basis, perfect.

Gregg Adzema: We're not going to do it at the expense of our balance sheet. The genius of having these forward shares outstanding is as we uncover new investment opportunities and we look to fund them, if we can fund them with dispositions on an accretive basis, perfect. If we can't, we've got these shares that we can settle that we know we can do on an accretive basis. I know it's not a lot, it's only $90 million, I think it's an underappreciated and an undervalued asset on our balance sheet that gives us all kinds of optionality as we go out there and look at new investments.

Speaker #7: If we can't, we've got these shares that we can settle that we know we can do on an accretive basis. So, I think it's a— I know it's not a lot.

Speaker #7: It's only $90 million but I think it's an underappreciated and undervalued asset on our balance sheet. That gives us all kinds of optionality as we go out there and look at new investments.

Speaker #8: Great. Thank you very much.

Brendan Lynch: Great. Thank you very much.

Speaker #1: Now, our last question will be from Dylan Buzzyski at Green Street. Please go ahead.

Operator 2: Our last question will be from Dylan Burzinski at Green Street. Please go ahead.

Operator: Our last question will be from Dylan Burzinski at Green Street. Please go ahead.

Speaker #9: Hi guys, thanks for taking the question. I guess, just sort of looking at the spread between portfolio lease percentage and occupancy, I think it's sort of at a recent high of, call it, 3.5% versus a historical average in the low 2% range.

Dylan Burzinski: Hi, guys. Thanks for taking the question.

Dylan Burzinski: I guess just sort of looking at the spread between portfolio lease percentage and occupancy. I think it's sort of at a recent high of, call it 3.5%, versus the historical average in the low 2% range. We sort of think about, or can you sort of help us think about, I guess, the timeline of when that would compress? Obviously that's going to be a natural boost to NOI growth. Just curious there.

Speaker #9: As we sort of think about or can you sort of help us think about, I guess, the timeline of when that would compress? Because obviously, that's going to be a natural boost to NOI growth.

Speaker #9: Just curious there.

Speaker #7: Sure. This is Richard. Well, obviously, some component of that is going to live in 2026 commencements in the second half, but you'll see that continue to compress.

Richard Hickson: Sure. This is Richard. Well, obviously some component of that is going to live in 2026 commencements in H2. You'll see that continue to compress. Obviously, this is going to be contingent on future activity in the mix, it's hard to really predict. It should start to compress, again, as we get into 2027. It's really hard to predict quarter to quarter what that spread is going to be.

Speaker #7: Obviously, this is going to be contingent on future activity in the mix, so it's hard to really predict when it should start to compress.

Speaker #7: Again, as we get into 2027, but it's really hard to predict quarter to quarter what that spread is going to be.

Speaker #9: Yeah. Not necessarily looking on a quarter to quarter basis, just on is this a one-year process, two-year process, three-year process, anything sort of related to that outlook, I think, is more so what I was looking for.

Dylan Burzinski: Yeah. Not necessarily looking at it on a quarter-to-quarter basis, just on, is this a one-year process, two-year process, three-year process? Anything sort of related to that outlook, I think is more so what I was looking for.

Speaker #5: Well, yeah, again, obviously, as we're signing leases, we also always have some component of expirations and move-outs. And so those numbers you've got multiple factors kind of flowing in there.

Colin Connolly: Well, yeah, again, obviously as we're signing leases, we also always have some component of expirations and move outs. Those numbers, you've got multiple factors kind of flowing in there. Again, our target for year end is to bring occupancy, to compress that and achieve the 90% occupancy. As we look forward over the coming years, again, we're not going to make a specific goal today. Our hope is that the percentage lease is a signal that we're going to have the ability to drive occupancy past 90% in the coming years. Again, that's all driven by strong underlying demand and less available supply. We intend to continue to push the portfolio back to, I'd say, more historical normalized levels of leasing and occupancy. I think the portfolio today is as strong as it's ever been.

Speaker #5: But again, our target for year-end is to bring occupancy up to compress that and achieve 90% occupancy. And then, as we look forward over the coming years, again, we're not going to make a specific goal today.

Speaker #5: But our hope is to that the percentage lease is a signal that we're going to have the ability to drive occupancy past 90% in the coming years.

Speaker #5: And so again, that's all driven by strong underlying demand and less available supply. And we intend to continue to push the portfolio back to, I'd say, more historical normalized levels of leasing and occupancy and I think the portfolio today is strong as it's ever been.

Speaker #5: And so we remain confident that we're going to do that.

Colin Connolly: We remain confident that we're going to do that.

Speaker #9: Great. Thanks, guys. Appreciate it.

Operator 1: Great. Thanks, guys. Appreciate it.

Operator: Great. Thanks, guys. Appreciate it.

Speaker #5: Thanks, Dylan.

Colin Connolly: Thanks, Dylan.

Speaker #1: Thank you. At this time, we have no other questions registered. I would now like to turn the call over to Colin Connolly.

Operator 2: Thank you. At this time, we have no other questions registered. I would like to turn the call over to Colin Connolly.

Operator: Thank you. At this time, we have no other questions registered. I would like to turn the call over to Colin Connolly.

Speaker #5: Well, thank you all for your time this morning and your continued interest in Cousins Properties. If you have any additional follow-up questions, please feel free to reach out to Greg Adzema or Ronnie Imbo.

Colin Connolly: Well, thank you all for your time this morning and your continued interest in Cousins Properties. If you have any additional follow-up questions, please feel free to reach out to Gregg Adzema or Roni Imbeaux. Have a great rest of the day and a great weekend.

Speaker #5: Have a great rest of the day and a great weekend.

Speaker #1: Thank you, sir. Ladies and gentlemen, this does indeed conclude the conference call for today. Once again, thank you for attending. And at this time, we ask that you please disconnect your lines.

Operator 2: Thank you, sir. Ladies and gentlemen, this does indeed conclude the conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude the conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.

Q2 2026 Cousins Properties Inc Earnings Call

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