Cousins Properties Announces Public Offering of 9,500,000 Shares of Common Stock

Rhea-AI Summary

Cousins Properties (NYSE: CUZ) has announced a public offering of 9,500,000 shares of common stock. The company plans to use the net proceeds primarily to fund the purchase of an office property in Downtown Austin. If the acquisition doesn't materialize, the funds will be allocated to general corporate purposes, including office property acquisitions and development, opportunistic investments, and debt repayment.

J.P. Morgan will act as the sole book-running manager for the offering, which will be conducted under the company's effective shelf registration statement dated May 8, 2024.

Positive

• Potential expansion into Downtown Austin market through property acquisition
• Strategic flexibility in fund allocation for property development and acquisitions
• Option to reduce debt leverage using proceeds

Negative

• Significant shareholder dilution through 9.5M share offering
• Uncertainty regarding the completion of the Austin property acquisition

Insights

Financial Analyst

This share offering of 9.5 million shares represents a significant capital raise for Cousins Properties, likely aimed at funding their expansion in the attractive Austin market. Based on the current market cap and share price, this offering could dilute existing shareholders by approximately 6-7%. While stock dilution typically pressures share prices in the short term, the strategic acquisition in Downtown Austin could be value-accretive given the city's strong office market fundamentals and growing tech presence. The flexibility in the use of proceeds, including potential debt repayment, provides financial optionality but also introduces some uncertainty about the final allocation of capital. The selection of J.P. Morgan as the sole book-runner suggests a streamlined process and potentially favorable terms for the offering.

Real Estate Market Analyst

The planned acquisition in Downtown Austin aligns with current market trends, as the city continues to attract major corporate relocations and expansions, particularly in the tech sector. Austin's office market has shown resilience compared to other major markets, with strong demand drivers and relatively lower vacancy rates. The timing of this capital raise suggests Cousins Properties is positioning itself to capitalize on potential market opportunities, possibly at attractive valuations. However, the office sector faces broader headwinds from remote work trends, making the success of this investment heavily dependent on the specific property's location, quality and tenant mix. The company's existing presence in Austin could provide operational synergies and market knowledge advantages.

ATLANTA, Dec. 10, 2024 /PRNewswire/ -- Cousins Properties Incorporated (the "Company") (NYSE: CUZ) today announced that it has commenced an underwritten public offering of 9,500,000 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 Downtown Austin. 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.

J.P. Morgan 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: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.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-9-500-000-shares-of-common-stock-302328164.html

SOURCE Cousins Properties

FAQ

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

Cousins Properties is offering 9,500,000 shares of common stock in its December 2024 public offering.

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

The primary purpose is to fund the purchase of an office property in Downtown Austin, with alternative uses including property acquisitions, development, opportunistic investments, and debt repayment if the Austin acquisition is not completed.

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

J.P. Morgan is serving as the sole book-running manager for the offering.