Cousins Properties Incorporated (
, a real estate investment trust (REIT), reported third quarter
2012 FFO (fund from operations) of $25.7 million or 25 cents per
share, compared with $14.3 million or 14 cents in the
Excluding certain non-recurring items, recurring FFO for the
reported quarter was 15 cents per share. The recurring FFO beat
the Zacks Consensus Estimate by $0.02.
Total revenues were $43.7 million during the reported quarter
versus $31.5 million in the year-ago period. Total revenue during
third quarter 2012 beat the Zacks Consensus Estimate of $37
During the reported quarter, Cousins Properties executed strong
leasing activities and leased 175,000 square feet of office space
and 119,000 square feet of retail space. At quarter-end, the
company's same-store office portfolio was 91% leased, while its
retail properties were 89% leased. Subsequent to end of the
quarter, the company executed 25,000 square feet of additional
leases at Promenade in Atlanta, Georgia.
Total same-store revenue increased 0.1% in third quarter 2012
compared to the year-earlier quarter (office down 0.5%, and
retail up 2.0%), while operating expenses decreased 4.1% (office
down 3.2%, and retail down 8.2%). Total same-store net operating
income (NOI) in the reported quarter increased 2.9% on a year
over year basis (office up 1.6% and retail up 6.4%).
During third quarter 2012, Cousins Properties entered into
agreements to divest two retail lifestyle centers in Atlanta,
Georgia. Additionally the company completed the sale of Cousins
Properties Services - a business unit providing third-party
services to Class A office buildings for a gain of $7.4 million.
Subsequent to the quarter end, the company sold Cosmopolitan
Center - an office complex in Atlanta, Georgia for $7.0
The asset sale was part of the long-term strategy of the
company to upgrade its overall portfolio by acquiring newer
high-quality properties and divesting non-core assets. During the
reported quarter, Cousins Properties also acquired Ross Avenue, a
Class-A office tower spanning 844,000 square feet in Dallas,
Texas for $59.2 million. Additionally, the company commenced
operations at Emory Point in Atlanta, Georgia and Mahan Village
in Tallahassee, Florida.
Cousins Properties is currently shoring up its balance sheet
and increasing liquidity by selling non-core assets. At the same
time, the company remains focused on leasing activities and
continues to pursue attractive investment opportunities. At
quarter-end, Cousins Properties had cash and cash equivalents of
COUSIN PROP INC (CUZ): Free Stock Analysis
DUKE REALTY CP (DRE): Free Stock Analysis
To read this article on Zacks.com click here.
Cousins Properties currently retain a Zacks #4 Rank, which
translates into a short-term Sell rating. We also maintain our
long-term Neutral recommendation on the stock. One of its
Duke Realty Corp. (
holds a Zacks #3 Rank, which translates into a short- term Hold
Note: FFO, a widely used metric to gauge the performance of
REITs, are obtained after adding depreciation, amortization and
other non-cash expenses to net income.