On Apr 16, 2014, we issued an updated research report on real
estate investment trust (REIT) -
Cousins Properties Inc.
On Feb 13, aided by a two-fold rise in quarterly revenues,
Cousins Properties reported a positive earnings surprise of 12.5%
in fourth-quarter 2013. In particular, the company reported FFO
per share of 18 cents in the quarter, beating the Zacks Consensus
Estimate by 2 cents and the year-ago figure by 4 cents.
Cousins Properties' diversified portfolio is primarily
concentrated in the high-growth Sun Belt markets, which exhibit
above-average job growth. Moreover, the company focuses on
increasing the value of its current portfolio by inking long-term
lease deals with high-end tenants which helps it experience
elevated levels of occupancy at its properties.
Additionally, the company's focus on simplifying its business
by specifically targeting trophy assets and opportunistic
investments is commendable. In addition, the company's
first-quarter dividend hike to boost stockholders' return is
However, stiff competition and sluggish recovery in office
market fundamentals may lower Cousins Properties' growth in
profitability. Also, increasing Internet sales that adversely
impact the demand for the company's retail space could limit its
growth prospects. Moreover, interest rates are anticipated to
rise in the long term and this may weigh on Cousins Properties'
ability to refinance existing debt.
Over the last 60 days, the Zacks Consensus Estimate for FFO
per share for both 2014 and 2015 moved up by 3 cents and 4 cents
to 71 cents and 77 cents per share, respectively. The stock
currently has a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Investors interested in the REIT industry may also consider
Duke Realty Corp.
SL Green Realty Corp.
Alexandria Real Estate Equities, Inc.
). All three stocks have the same rank as Cousins Properties.
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.
ALEXANDRIA REAL (ARE): Free Stock Analysis
COUSIN PROP INC (CUZ): Free Stock Analysis
DUKE REALTY CP (DRE): Free Stock Analysis
SL GREEN REALTY (SLG): Free Stock Analysis
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