On Nov 2, 2013, Zacks Investment Research upgraded
Cousins Properties Incorporated
) - a real estate investment trust (REIT) - to a Zacks Rank #2
(Buy). This was based on the company's better-than-expected
third-quarter 2013 results.
Why the Upgrade?
On Oct 30, 2013, Cousins Properties reported third-quarter
2013 funds from operations (FFO) per share of 11 cents, beating
the Zacks Consensus Estimate by a penny. This was driven by
increase in revenues as well as occupancy and leasing gains.
Total revenue for the quarter jumped 32.6% year over year to
$52.1 million and also substantially exceeded the Zacks Consensus
Estimate of $42 million.
Notably, Cousins Properties' focus on building its business on
a simpler platform, by specifically targeting trophy assets and
opportunistic investments, ensures a steady revenue stream. In
this context, the Texas-portfolio acquisition in the
third-quarter 2013, the largest in the company's history is
noteworthy. Moreover, Cousins Properties maintains a flexible
balance sheet with ample liquidity that enables it to capitalize
on acquisition opportunities to fuel its growth engine.
As a result of these bullish factors, the tendency for an
upward estimate revision has been obvious in recent times. Over
the last 7 days, the Zacks Consensus Estimate for 2013 FFO per
share rose 6% to 53 cents. Also, for 2014, the Zacks Consensus
Estimate for FFO per share rose1.5% to 68 cents.
Other Stocks to Consider
Other well-performing REITs include
DuPont Fabros Technology, Inc.
Getty Realty Corp.
Parkway Properties Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
Note: 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.
COUSIN PROP INC (CUZ): Free Stock Analysis
DUPONT FABROS (DFT): Free Stock Analysis
GETTY REALTY CP (GTY): Free Stock Analysis
PARKWAY PPTY (PKY): Free Stock Analysis
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