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Cousins Properties Inc. (CUZ)
NYSE:CUZ
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Cousins Properties
(NYSE:CUZ)
Rating:63Neutral
Price Target:
$30.00
▲(5.71%Upside)
Positive Factors
Financial Performance
Cousins Properties reported higher than expected funds from operations per share, and increased their 2025 financial guidance.
Leasing Activity
Leasing activity improved significantly with a notable increase in leased square footage compared to previous averages.
Negative Factors
Expenses
General and administrative expenses for Cousins Properties increased in the first quarter.
Leasing Concessions
Leasing concessions for Cousins Properties remain high, representing a larger percentage of rent compared to the sector average.
Cousins Properties (CUZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.77B
Dividend Yield4.51%
Average Volume (3M)1.50M
Price to Earnings (P/E)84.8
Beta (1Y)0.95
Revenue Growth10.93%
EPS Growth-31.07%
CountryUS
Employees306
SectorReal Estate
Sector Strength59
IndustryREIT - Office
Share Statistics
EPS (TTM)0.12
Shares Outstanding167,911,650
10 Day Avg. Volume1,383,272
30 Day Avg. Volume1,498,561
Financial Highlights & Ratios
PEG Ratio10.42
Price to Book (P/B)1.00
Price to Sales (P/S)0.00
P/FCF Ratio26.59
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit15.31
Enterprise Value/Ebitda4.24
Forecast
1Y Price Target
$32.29Price Target Upside13.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Cousins Properties Business Overview & Revenue Model
Company DescriptionCousins 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 towers 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.
How the Company Makes MoneyCousins Properties makes money primarily through leasing office spaces in its portfolio of Class A office properties. The company's key revenue streams include rental income from long-term leases with tenants, which often consist of large, creditworthy corporations seeking premium office locations. Additional revenue is generated through property management fees and potentially through the strategic sale of properties when market conditions are favorable. The company's financial performance is also influenced by factors such as occupancy rates, rental rates, and operating expenses. Strategic partnerships and joint ventures can also play a role in expanding the company's asset base and enhancing its revenue potential.
Cousins Properties Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 3.31%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Cousins Properties demonstrated strong performance in the first quarter with significant leasing activity, increased guidance, and a resilient market outlook. However, macroeconomic uncertainties due to tariffs and expected short-term occupancy declines pose challenges.Q1-2025 Updates
Positive Updates
Strong First Quarter Performance
Cousins Properties delivered $0.74 per share in FFO and increased same-property net operating income by 2% on a cash basis. The company completed 539,000 square feet of leases with a 3.2% cash rent roll-up, marking the 44th consecutive quarter of positive rent roll-up. The company increased the midpoint of its guidance to $2.79 a share, representing a 3.7% growth rate over the previous year.
Leasing Success in Key Markets
The company's portfolio was 90% occupied at the end of the first quarter, up from 88.4% a year ago. Significant leasing activity was seen in Atlanta (213,000 sq ft), Austin (176,000 sq ft), and Tampa (84,000 sq ft), with positive rent roll-ups and strategic renewals.
Improved Market Fundamentals
The company observed improving fundamentals with the decline of older office supply and increasing demand. Leasing volume is now at 89% of pre-pandemic activity, and vacancy rates in the lifestyle office sector are believed to have peaked.
Robust Balance Sheet and Strategic Flexibility
Cousins Properties maintains a low leverage ratio with net debt to EBITDA at 4.9 times and strong liquidity. The company retains strategic flexibility to capitalize on accretive investment opportunities due to its solid financial position.
Negative Updates
Impact of Trade Dynamics and Tariffs
Recent tariff discussions have created macroeconomic uncertainty, leading to increased volatility in capital markets, potential concerns over a softening economy, weaker demand, and higher construction costs.
Lease Expirations and Occupancy Challenges
Occupancy is expected to decline through the third quarter due to anticipated move-outs, such as Bank of America in Charlotte. The company has only 9.3% of annual contractual rent expiring through 2026, but notable expirations include Bank of America and One Trust.
Company Guidance
In the recent Cousins Properties first-quarter conference call, the company reported positive financial performance and provided updated guidance. The team achieved $0.74 per share in funds from operations (FFO), with a 2% increase in same-property net operating income on a cash basis and completed 539,000 square feet of leases with a 3.2% cash rent roll-up. The company raised the midpoint of its guidance to $2.79 per share, representing a 3.7% growth rate over the previous year. Occupancy in their portfolio increased from 88.4% to 90% year-over-year. The company remains strategically focused on driving earnings growth and maintaining a robust balance sheet, with a reported net debt to EBITDA of 4.9 times. Cousins Properties highlighted the strength and resiliency of their Sun Belt lifestyle office portfolio amidst improving fundamentals, including a declining supply of office buildings and accelerating demand. They also noted a healthy leasing pipeline and an industry-leading balance sheet, positioning them well to capitalize on potential investment opportunities in the current market environment.Cousins Properties Financial Statement Overview
Summary
Cousins Properties exhibits a solid financial foundation with a strong balance sheet and healthy cash flows. However, declining revenue and profitability margins in the latest TTM period pose challenges that need addressing for future growth. The company should focus on improving operational efficiencies to enhance margins and profitability.Income Statement
Cousins Properties has shown a declining trend in revenue with the latest TTM revenue at $654.3 million compared to $856.8 million in the previous year, indicating a decrease. Gross profit margin for TTM stands at 53.35%, while net profit margin is 4.96%, showcasing moderate profitability. Both EBIT and EBITDA margins are stable but reflect a decline from previous periods, suggesting some operational challenges.60
Neutral
Balance Sheet
The balance sheet remains robust with a debt-to-equity ratio of 0.62, indicating moderate leverage. Return on equity for TTM is 0.67%, showing a decrease in profitability relative to equity. The equity ratio is strong at 55.82%, highlighting a solid equity base compared to total assets.75
Positive
Cash Flow
Free cash flow has grown by 23.33% from the previous year, and operating cash flow remains healthy, with an operating cash flow to net income ratio of 12.83. The company demonstrates effective cash management, although the free cash flow to net income ratio is 5.60, indicating room for improvement in cash conversion.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 856.76M | 802.87M | 762.29M | 755.07M | 740.34M |
| Gross Profit | 576.10M | 536.44M | 503.92M | 495.61M | 489.49M |
| EBITDA | 536.80M | 504.18M | 479.14M | 468.49M | 466.73M |
| Net Income | 45.96M | 82.96M | 279.65M | 209.37M | 172.40M |
Balance Sheet | |||||
| Total Assets | 8.80B | 7.63B | 7.54B | 7.31B | 7.11B |
| Cash, Cash Equivalents and Short-Term Investments | 7.35M | 6.05M | 5.14M | 8.94M | 4.29M |
| Total Debt | 3.15B | 2.51B | 2.33B | 2.24B | 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
28.38
Price Trends
28.75
Negative
28.24
Positive
28.96
Negative
Market Momentum
-0.19
Positive
41.84
Neutral
28.43
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 28.38 is below the 20-day moving average (MA) of 29.00, below the 50-day MA of 28.75, and below the 200-day MA of 28.96, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.43 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.95B | 22.53 | 3.69% | 5.71% | 1.11% | -3.07% | |
70 Outperform | $1.51B | ― | -2.11% | 0.54% | 1.67% | 73.75% | |
66 Neutral | $3.33B | 19.32 | 7.21% | 6.49% | -2.01% | 31.64% | |
65 Neutral | $3.22B | 50.21 | 2.49% | 4.79% | -1.98% | ― | |
64 Neutral | $6.89B | 17.45 | -1.92% | 7.02% | 4.59% | -24.66% | |
63 Neutral | $4.77B | 84.77 | 1.15% | 4.51% | 10.93% | -31.07% | |
58 Neutral | $4.58B | 663.10 | -0.35% | 5.07% | 14.21% | 79.46% |
* Real Estate Sector Average
Performance Comparison
CUZ
Cousins Properties
28.38
4.26
17.66%
DEI
Douglas Emmett
15.88
1.44
9.97%
HIW
Highwoods Properties
30.84
3.55
13.01%
KRC
Kilroy Realty
37.83
4.69
14.15%
SLG
SL Green Realty
60.25
<0.01
0.02%
PGRE
Paramount Group
6.51
1.38
26.90%
Cousins Properties Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Cousins Properties Enters Underwriting Agreement for Note Sale
Neutral
Jun 6, 2025
On May 28, 2025, Cousins Properties entered into an Underwriting Agreement with Wells Fargo Securities, BofA Securities, and TD Securities to sell notes, with the underwriters agreeing to purchase these notes under specified terms. This agreement, filed as part of a Current Report on Form 8-K, is intended to be incorporated into a Registration Statement on Form S-3, reflecting the company’s strategic financial maneuvering to potentially bolster its market position and liquidity.
The most recent analyst rating on (CUZ) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Cousins Properties stock, see the CUZ Stock Forecast page.
Business Operations and Strategy
Cousins Properties Highlights Premium Office Assets Strategy
Positive
May 5, 2025
On May 5, 2025, Cousins Properties presented an investor presentation at the Wells Fargo 28th Annual Real Estate Securities Conference in Charleston, SC. The presentation highlighted the company’s focus on premium office assets that are new or recently redeveloped, featuring high occupancy rates and premium rents. These properties are located in dynamic neighborhoods and offer extensive amenities, aligning with the industry’s shift towards quality office spaces. The presentation underscored the challenges faced by older office assets, which are becoming obsolete and may be redeveloped for other uses.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.