A real estate investment trust that owns, develops, and manages amenity-rich "lifestyle office" buildings in fast-growing Sun Belt cities like Austin, Atlanta, Charlotte, Tampa, Phoenix, Dallas, and Nashville. Its properties include The Link in Dallas, Domain 9 in Austin, and the Neuhoff mixed-use project in Nashville. Founded in 1958 by 26-year-old Tom Cousins, who started building homes in Atlanta with his father and later shifted to commercial real estate. In 1968, Cousins bought the NBA's St. Louis Hawks and moved them to Atlanta, largely to justify building the Omni sports complex.
Same-property NOI growth slowed to 2.0% in Q2 2026, its weakest pace in over two years, as a $36.6M impairment on One Eleven Congress pushed first-half net income to just $1.3M.
Same-property growth decelerated to 2.0%, the slowest rate in the current streak of eleven consecutive quarterly increases. rose 11.8% to $268.5 million and per share reached $0.75, driven by acquisitions that nearly doubled , but a $36.6 million on One Eleven Congress in the prior quarter left six-month at $1.3 million. The core portfolio is still growing, but the pace is fading and asset write-downs are cutting into the bottom line.
Key takeaways
Same-property rose 2.0% in Q2 2026, extending the streak of consecutive quarterly increases to eleven, but the pace decelerated from 3.2% a year ago as higher occupancy at Promenade Tower, Avalon, 3350 Peachtree, and Corporate Center was partially offset by rising operating expenses.
Total consolidated rose 9.3% to $178.8 million, with nearly doubling to $24.6 million from the acquisitions of 300 South Tryon in February 2026 and The Link in July 2025, partially offset by the sales of Harborview and Research Park V.
Section summaries
Management's Discussion and Analysis
Same-property NOI grew 2.0% in Q2 2026, driven by Sun Belt office leasing and acquisitions, while a $36.6M impairment on One Eleven Congress reduced net income.
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Total consolidated rose 9.3% to $178.8M in Q2 2026, with up 2.2% due to higher occupancy at Promenade Tower, Avalon, 3350 Peachtree, and Corporate Center.
available to common stockholders was $26.2 million in Q2 2026, up from $14.5 million a year ago, but six-month net income fell to $1.3 million because of a $36.6 million on the One Eleven Congress property in Austin recorded in Q1 2026.
rose 22.2% to $47.1 million, driven by the February 2026 issuance of $500 million in senior notes and higher balances, partially offset by a $150 million term loan repayment.
The company recast its to $1.2 billion, extended the maturity to 2031, and improved borrowing spreads by 15 to 30 ; $1.0 billion remained available at quarter-end against $167 million drawn.
per diluted share rose to $0.75 from $0.70 a year ago, and six-month FFO reached $1.49 per share, as the is excluded from the FFO calculation.
What changed
The One Eleven Congress flagged in Q1 2026 as a potential signal of Austin valuation pressure did not repeat in Q2, but the $36.6 million charge remains the dominant factor in year-to-date results, compressing six-month to $1.3 million.
Same-property growth continued to decelerate — from 3.2% in Q2 2025 to 1.4% in Q1 2026 to 2.0% in Q2 2026 — confirming the trend flagged in FY 2025 that prior occupancy gains are now fully absorbed and the 3-5% range may no longer be the baseline.
rose 22.2% to $47.1 million, a step up from the $38.8 million run rate in Q2 2025, as the February 2026 $500 million senior note issuance added to the $1.4 billion in notes already placed since August 2024.
The recast to $1.2 billion with a 2031 maturity and improved spreads addresses the liquidity and refinancing risk flagged in prior quarters, providing a larger and cheaper backstop as reached $3.73 billion.
What to watch
Whether same-property growth can stabilize above 2% or continues to fade now that the occupancy lift from Promenade Tower, Avalon, 3350 Peachtree, and Corporate Center has been realized, and whether the 2.0% pace represents a new trend.
The trajectory of now that the February 2026 $500 million note issuance is fully reflected in the run rate, and whether growth can widen the spread between property income and financing costs.
Whether the One Eleven Congress remains an isolated event or signals broader valuation pressure in the Austin market, where technology tenants represent 52% of that market's rent.
The pace of lease-up at the Neuhoff mixed-use development in Nashville, a 50%-owned joint venture, and its initial contribution to as it nears completion.
Non- nearly doubled to $24.6M, primarily from the acquisitions of 300 South Tryon in February 2026 and The Link in July 2025, partially offset by sales of Harborview and Research Park V.
available to common stockholders was $26.2M in Q2 2026, up from $14.5M a year ago, but six-month net income fell to $1.3M due to a $36.6M on One Eleven Congress.
increased 22.2% to $47.1M in Q2 2026, driven by the February 2026 issuance of $500M senior notes and higher balances, partially offset by a $150M term loan repayment.
The company recast its to $1.2B, extended maturity to 2031, and improved borrowing spreads by 15-30 , with $167M drawn and $1.0B available as of June 30, 2026.
per share was $0.75 in Q2 2026, up from $0.70 a year ago, reflecting higher and the exclusion of the One Eleven Congress from the six-month FFO of $1.49 per share.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the market risk associated with our notes payable at June 30, 2026, compared to that as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes in the market risk associated with our notes payable at June 30, 2026, compared to that as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Information regarding legal proceedings is described under the subheading "Litigation" in note 10 of the notes to condensed consolidated financial statements.
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Information regarding legal proceedings is described under the subheading "Litigation" in note 10 of the notes to condensed consolidated financial statements.
Risk factors that affect our business and financial results are discussed in Part I, "Item 1A. Risk Factors," of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in our risk factors from those previously disclosed in our An…
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Risk factors that affect our business and financial results are discussed in Part I, "Item 1A. Risk Factors," of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes in our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual Report, which could materially affect our business, financial condition, or future results. The risks described in our Annual Report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem immaterial also may materially adversely affect our business, financial condition, and/or operating results. If any of the risks actually occur, our business, financial condition, and/or results of operations could be negatively affected.
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