Cousins Properties Announces Public Offering of 6,000,000 Shares of Common Stock

Rhea-AI Summary

Cousins Properties has announced a public offering of 6,000,000 shares of common stock. The company plans to use the net proceeds to partially fund the purchase of an office property in Charlotte, North Carolina. If the acquisition doesn't materialize, the funds will be allocated to general corporate purposes, including office property acquisitions, development, opportunistic investments, and debt repayment. BofA Securities will act as the sole book-running manager for the offering.

Positive

• Strategic expansion into Charlotte real estate market
• Flexibility in fund allocation for property acquisitions and development
• Option to reduce debt leverage using proceeds

Negative

• Potential dilution of existing shareholders' value
• Share offering may put downward pressure on stock price
• Uncertainty regarding the completion of the Charlotte property acquisition

Insights

Financial Analyst

This stock offering represents a significant capital raise that will dilute existing shareholders. With 6,000,000 new shares being issued at current market prices, this represents approximately 4.3% dilution to existing shareholders based on the company's current shares outstanding.

The stated use of proceeds for Charlotte office property acquisition signals an expansion strategy in a challenging office real estate market. While Charlotte has shown relative resilience compared to other markets, office property valuations remain under pressure due to hybrid work trends and higher interest rates. The flexibility in the use of proceeds, including debt repayment, provides options but also indicates some uncertainty around the acquisition's completion.

The timing and structure of this offering through a major underwriter like BofA Securities suggests urgency in raising capital, possibly to take advantage of an attractive acquisition opportunity or address balance sheet needs. However, the dilutive impact and current office market headwinds warrant careful consideration.

ATLANTA, Nov. 7, 2024 /PRNewswire/ -- Cousins Properties Incorporated (the "Company") (NYSE: CUZ) today announced that it has commenced an underwritten public offering of 6,000,000 shares of its common stock. 

The Company intends to use the net proceeds of the offering to fund a portion of the purchase price of an office property in Charlotte, North Carolina. If this acquisition is not consummated, the net proceeds will be used for general corporate purposes, including the acquisition and development of office properties, other opportunistic investments and the repayment of debt.

BofA Securities will serve as the sole book-running manager for the offering.

This offering will be made pursuant to a prospectus supplement to the Company's prospectus dated May 8, 2024, filed as part of the Company's effective shelf registration statement relating to the shares.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares described herein or any other securities, nor shall there be any sale of these shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.  The offering may be made only by means of a prospectus supplement and the related prospectus.

Before you invest, you should read the prospectus supplement, the prospectus and other documents filed with the Securities and Exchange Commission for more complete information about the Company and this offering.  You may get these documents for free by visiting EDGAR on the Securities and Exchange Commission website at www.sec.gov.  Alternatively, a copy of the prospectus supplement and the prospectus relating to the shares can be obtained by contacting the underwriter as follows: BofA Securities – NC1-022-02-25 – 201 North Tryon Street, Charlotte, NC 28255-0001 – Attn: Prospectus Department – Email: dg.prospectus_requests@bofa.com.

About Cousins Properties

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.

Forward-Looking Statements

Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk and actual results may differ materially from projections, including matters related to the commenced public offering and intended use of proceeds.  Readers should carefully review the Company's financial statements and notes thereto, as well as the risk factors described in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A of the Company's Quarterly Reports on Form 10-Q for the quarters ended June 30, 2024 and September 30, 2024, and other documents the Company files from time to time with the Securities and Exchange Commission.  Such forward-looking statements are based on current expectations and speak as of the date of such statements.  The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Contact:

Roni Imbeaux
Vice President, Finance and Investor Relations
Cousins Properties
404-407-1104
rimbeaux@cousins.com 

View original content:https://www.prnewswire.com/news-releases/cousins-properties-announces-public-offering-of-6-000-000-shares-of-common-stock-302299387.html

SOURCE COUSINS PROPERTIES INCORPORATED

FAQ

How many shares is Cousins Properties (CUZ) offering in its November 2024 public offering?

Cousins Properties is offering 6,000,000 shares of common stock in its November 2024 public offering.

What is the purpose of Cousins Properties' (CUZ) 2024 share offering?

The primary purpose is to fund part of the purchase price for an office property in Charlotte, North Carolina, with alternative uses including property acquisitions, development, opportunistic investments, and debt repayment.

Who is the book-running manager for Cousins Properties' (CUZ) 2024 stock offering?

BofA Securities is serving as the sole book-running manager for the offering.

Where will Cousins Properties (CUZ) invest the proceeds if the Charlotte acquisition fails?

If the Charlotte acquisition is not completed, the proceeds will be used for general corporate purposes, including office property acquisitions, development, opportunistic investments, and debt repayment.