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Cousins Properties Inc. (CUZ)
NYSE:CUZ
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Cousins Properties
(NYSE:CUZ)76Outperform
Positive Factors
Financial Performance
CUZ had a strong 4Q24 headlined by an FFOps beat, '25 guidance ahead of the Street, and rising occupancy.
Market Positioning
CUZ remains the best positioned in the office sector to be opportunistic with acquisition opportunities, given its best-in-class balance sheet.
Negative Factors
Valuation Concerns
Analyst downgrades CUZ due to its strong performance year-to-date, indicating potential overvaluation.
Cousins Properties (CUZ) vs. S&P 500 (SPY)
Market Cap
$4.86B
Dividend Yield4.41%
Average Volume (3M)1.39M
Price to Earnings (P/E)97.2
Beta (1Y)1.30
Revenue Growth6.71%
EPS Growth-45.29%
CountryUS
Employees306
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.30
Shares Outstanding167,660,480
10 Day Avg. Volume1,523,478
30 Day Avg. Volume1,388,386
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.87
Price to Cash Flow (P/CF)10.40
P/FCF Ratio8.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$33.44Price Target Upside14.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Cousins Properties Business Overview & Revenue Model
Company DescriptionCousins Properties (CUZ) is a real estate investment trust (REIT) that specializes in the acquisition, development, and management of office properties primarily located in high-growth Sun Belt markets in the United States. The company focuses on creating and maintaining high-quality urban office spaces that attract a diverse range of tenants, including corporations, government entities, and other organizations. With a strategic emphasis on major metropolitan areas, Cousins Properties aims to deliver sustainable growth and value to its shareholders.
How the Company Makes MoneyCousins Properties generates revenue primarily through rental income from its portfolio of office properties. The company leases office space to a variety of tenants under long-term lease agreements, which provide a stable and predictable revenue stream. Additionally, Cousins Properties may engage in property development and sales, generating income from selling developed properties or land parcels. The company's focus on high-demand locations in the Sun Belt region contributes to strong occupancy rates and the ability to command premium rental rates. Furthermore, Cousins Properties may form strategic partnerships or joint ventures to enhance its development capabilities and expand its market presence.
Cousins Properties Financial Statement Overview
Summary
Cousins Properties shows a mixed financial profile. The income statement reflects declining revenue and profitability, while the balance sheet shows strong equity support with moderate leverage. Cash flow remains a positive aspect due to strong operating cash flow, despite historical negative free cash flow concerns.Income Statement
Cousins Properties shows a declining revenue trend with a significant drop in recent years. The gross profit margin remains high due to cost recovery, but negative EBIT and net income in the latest period highlight profitability challenges. Net profit margin has turned negative, indicating operational inefficiencies.62
Positive
Balance Sheet
The balance sheet reflects a stable equity base with moderate leverage as shown by a Debt-to-Equity ratio of 0.64. The equity ratio is solid at around 55%, suggesting good asset coverage by equity. However, the recent increase in total debt could signal potential risk if revenue continues to decline.78
Positive
Cash Flow
Cousins Properties maintains positive operating cash flow, though free cash flow growth is fluctuating, recently turning positive after prior negative years. The operating cash flow to net income ratio is strong, indicating efficient cash conversion from operations despite negative net income.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.22M | 802.87M | 762.29M | 755.07M | 740.34M | Gross Profit |
| 7.22M | 536.44M | 503.92M | 495.61M | 489.49M | EBIT |
| -273.44M | 190.90M | 183.56M | 180.39M | 178.08M | EBITDA |
| 534.10M | 504.18M | 479.14M | 468.49M | 466.73M | Net Income Common Stockholders |
| -619.00K | 82.96M | 279.65M | 209.37M | 172.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 7.35M | 6.05M | 5.14M | 8.94M | 4.29M | Total Assets |
| 8.80B | 7.63B | 7.54B | 7.31B | 7.11B | Total Debt |
| 3.15B | 2.51B | 2.33B | 2.24B | 2.22B | Net Debt |
| 3.14B | 2.50B | 2.33B | 2.23B | 2.22B | Total Liabilities |
| 3.93B | 3.09B | 2.89B | 2.71B | 2.61B | Stockholders Equity |
| 4.87B | 4.52B | 4.63B | 4.57B | 4.47B |
| Cash Flow | Free Cash Flow | |||
| 147.50M | 368.36M | 22.93M | -398.33M | -268.68M | Operating Cash Flow |
| 400.23M | 368.36M | 365.17M | 389.48M | 351.09M | Investing Cash Flow |
| -1.31B | -295.74M | -334.50M | -191.07M | -132.46M | Financing Cash Flow |
| 906.47M | -71.72M | -35.69M | -194.38M | -230.09M |
Cousins Properties Technical Analysis
Negative
29.20
Price Trends
30.13
Negative
30.39
Negative
27.88
Positive
Market Momentum
-0.24
Positive
41.11
Neutral
25.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUZ, the sentiment is Negative. The current price of 29.2 is below the 20-day moving average (MA) of 30.12, below the 50-day MA of 30.13, and above the 200-day MA of 27.88, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUZ.
Cousins Properties Risk Analysis
Cousins Properties disclosed 27 risk factors in its most recent earnings report. Cousins Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cousins Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.86B | 97.19 | 0.98% | 4.41% | 6.71% | -45.29% | |
64 Neutral | $14.58B | 907.36 | 1.32% | 1.94% | -1.30% | -80.81% | |
63 Neutral | $4.06B | 19.22 | 3.87% | 6.54% | 0.53% | -1.38% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $3.07B | 30.32 | 4.27% | 7.02% | -0.98% | -32.02% | |
60 Neutral | $11.60B | 737.50 | 0.23% | 5.88% | 4.10% | -92.47% | |
54 Neutral | $4.52B | 760.94 | 0.71% | 5.03% | 5.12% | ― |
* Real Estate Sector Average
Performance Comparison
CUZ
Cousins Properties
29.20
6.75
30.07%
BXP
Boston Properties
69.00
8.76
14.54%
HIW
Highwoods Properties
29.44
6.39
27.72%
KRC
Kilroy Realty
33.32
-0.13
-0.39%
SLG
SL Green Realty
61.96
13.98
29.14%
VNO
Vornado Realty
39.75
14.48
57.30%
Cousins Properties Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -4.76% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong fourth quarter performance with positive leasing momentum and accretive investments in strategic markets. Despite upcoming occupancy challenges and a difficult private capital market environment, the company's strong balance sheet and positive earnings guidance for 2025 contribute to an overall positive outlook.Highlights
Exceptional Fourth Quarter Earnings
Cousins Properties delivered $0.69 per share in FFO, exceeding the midpoint of guidance. Same property net operating income increased by 3.4% on a cash basis.
Strong Leasing Performance
Completed 462,000 square feet of leases during the quarter with a 6.7% cash rent roll-up. Total office portfolio occupancy increased to 89.2% at year-end from 87.6% the previous year.
Accretive Investments in Sunbelt Markets
Invested nearly $1 billion in Trophy lifestyle office properties, with transactions immediately accretive to earnings. Acquired Vantage South End in Charlotte and Sail Tower in Austin.
Positive Guidance for 2025
Released 2025 guidance with a midpoint of $2.78 per share, above consensus, representing approximately 3.5% growth compared to 2024.
Strong Balance Sheet and Market Position
Maintained leverage neutral growth with $469 million equity raised and $400 million in unsecured senior notes. Leverage is the lowest across the sector.
Lowlights
Upcoming Occupancy Challenges
Anticipated move-outs from OneTrust in Atlanta and Bank of America in Charlotte expected to lead to a temporary downdraft in occupancy.
Private Capital Markets Remain Challenging
Asset-level debt and equity limited and expensive, with many private equity investors on the sidelines due to legacy issues.
Interest Rate Sensitivity
Potential impact on earnings due to changes in interest rates, with 15% of debt floating rate and the need to refinance $250 million senior note in 2025.
Company Guidance
During the Cousins Properties Fourth Quarter Conference Call, the company provided guidance for 2025, highlighting several key metrics. The guidance anticipates full-year 2025 funds from operations (FFO) between $2.73 and $2.83 per share, with a midpoint of $2.78, representing a 3.5% growth compared to 2024. In the fourth quarter, Cousins delivered $0.69 per share in FFO, surpassing the midpoint of their guidance. Same property net operating income increased by 3.4% on a cash basis. Leasing performance was strong, with 462,000 square feet of leases signed, achieving a 6.7% cash rent roll-up. The company also invested nearly $1 billion in office properties within their Sunbelt markets and raised $469 million in equity alongside $400 million in debt to support these investments. Occupancy at year-end reached 89.2%, up from 87.6% the previous year, and the company projects continued growth in occupancy levels moving forward.Cousins Properties Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Cousins Properties Announces Board Changes for 2025
Neutral
Feb 4, 2025
On February 4, 2025, Cousins Properties announced that Lillian C. Giornelli would retire from its Board of Directors at the end of her term, concluding her service since May 1999. Concurrently, the company elected Susan L. Givens, a private investor with a robust background in real estate, to its Board, effective April 1, 2025. This change will maintain the number of directors at nine after the 2025 Annual Shareholder Meeting. Ms. Givens, who has held significant roles in various REITs and investment firms, is expected to bring valuable insights to the Board, enhancing Cousins’ strategic positioning in the real estate sector. The Board’s decision reflects Cousins’ continued focus on leadership with substantial sector experience, aiming to support the company’s growth in the competitive Sun Belt market.
M&A Transactions
Cousins Properties to Acquire Sail Tower in Austin
Positive
Dec 10, 2024
Cousins Properties announced it is under contract to purchase Sail Tower, an 804,000 square foot office property in Downtown Austin, for $521.8 million, with the transaction expected to close in December. The property, fully leased to a Fortune 20 company until 2038, will enhance Cousins’ Austin portfolio and is anticipated to be immediately accretive to earnings, reflecting Austin’s strong demand fundamentals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.