Cousins Properties Incorporated (NYSE:CUZ) Q3 2023 Earnings Call Transcript

Colin Connolly: Again, I think that will be fluid. But I think, look, looking to what WeWork is doing is certainly kind of our guide at the moment. And we’re able to — we own the properties we see who’s kind of coming and going and we see a lot of — if we see activity, physical activity in spaces. But again, our current guide is based on they’ve made a decision to pay rent on two and made a decision to not pay rent on the other two.

John Kim: Got it. Okay. On NCR, I know last quarter, you provided an update on the lease and the company subleasing some of that space. I was wondering if you could provide a further update to that? And if there’s any chance to give that some of that space back to you?

Colin Connolly: So the NCR did complete their corporate spin-off. So today, it is to there are two separately traded public companies. Our lease, our master lease is still with kind of our original lessor one of those two public companies. And as you mentioned, they have put some of the space on the sublease market as they’ve split into two companies and are attempting to become more efficient. But there is no ultimate change in our lease, and they have no rights to give any space back. They certainly have the right to sublease space. And I think it’s a potential that we’ll engage with them in some of those conversations, if an interesting opportunity comes along for our shareholders to go direct with a new long-term tenant customer in some of that space.

And I think they already have some — actually some meaningful prospects for that space. And so we’ll continue to stay in touch with them. And if there’s a win-win solution for them and our shareholders, we’ll certainly engage.

John Kim : Final question for Greg. On the improved disclosure on the stabilization periods on developments, can you just remind us on your capitalized interest policy, if you’re required to expense the interest one-year after completion? Or are there some ways that you could extend that capitalized interest period?

Gregg Adzema : No, it’s a drop that we did — that we typically capitalize interest on unoccupied space and no greater than one-year after completion.

John Kim : Got it. Okay. Thank you.

Gregg Adzema : Thank you, John.

Operator: This concludes our question-and-answer session. I’d like to turn the conference back over to Colin Connolly for any closing remarks.

Colin Connolly : Thank you for your time this morning, and your interest in Cousins Properties. We will look forward to hopefully seeing many of you out in NAREIT in a few weeks. Have a great weekend.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.