Cousins Properties Incorporated (NYSE:CUZ) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 10:00 am ET


Cousins Properties Incorporated (NYSE:CUZ) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Cousins Properties Second Quarter Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.

I'd now like to turn the conference over to Ms. Pamela Roper, General Counsel. Please, go ahead.

Pamela F. Roper

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, Operations; and Gregg Adzema, our 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 Reg G requirements. If you did not receive a copy, these documents are available through the quarterly disclosures and supplemental SEC information link on the Investor Relations page of our website. 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 and uncertainties and other factors, including the risk factors set forth in our Annual Report on Form 10-K and our other SEC filings.

In particular, there are significant risk and uncertainties related to the scope, severity and duration of the COVID-19 pandemic along with the direct and indirect impacts that the pandemic and related mitigation efforts, including governmental requirements and private sector responses, may have on our financial condition and operating results and those of our customers. 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 some potential risks, including those posed by COVID-19, is contained in our filings with the SEC.

With that, I'll turn the call over to Colin Connolly.

Colin Connolly

Thank you, Pam, and good morning everyone. At Cousins we have always taken the approach that if we take care of our dedicated employees who deliver excellent service to our customers, our Company will drive strong results for our shareholders. In this challenging environment we have taken great care to ensure that we are staying true to our values and principles. For this I am thankful and proud.

In the markets, we have adjusted our operations to ensure the safety of our employees and customers as our properties all remain open. Across our portfolio, physical occupancy has remained at approximately 15% since early June. Based on our discussions with customers, I anticipate a modest increase after Labor Day. However, ongoing health concerns related to COVID-19 and childcare challenges resulting from remote schooling will likely create headwinds to physical occupancy throughout 2020.

Despite the extraordinary environment, our team delivered solid financial results during the second quarter. I will share a few of the