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Cousins Extends Post Oak Central Lease Deal with Apache

In a notable development, Cousins Properties IncorporatedCUZ has extended its lease deal with Apache Corporation at Post Oak Central in Houston, TX for another year. Specifically, the Atlanta, GA-based real estate investment trust ("REIT") extended the duration of the lease, spanning 524,000 square feet, to Dec 2019 from Dec 2018. This move will likely be accretive to the company, going forward.

Post Oak Central is located in a prime position in the Galleria submarket of Houston. Hence, extension of the lease deal with Apache is consistent with Cousins Properties' strategy of strengthening its first-class office portfolio.

Cousins Properties is engaged in acquisition, ownership, development and management of upscale office and retail properties throughout the Sunbelt markets of the U.S., with special focus on Georgia, Texas and North Carolina. The REIT enjoys solid demand for its properties and generally enters into long-term leases with high-end tenants. This strategy shields the company from short-term market swings that weigh on other players in the industry.

Cousins Properties reported third-quarter 2015 FFO (funds from operations) of 24 cents per share, beating the Zacks Consensus Estimate by 3 cents. The figure also came 4 cents ahead of the year-ago tally. Results were aided by growth in same property net operating income ("NOI").

Cousins Properties currently has a Zacks Rank #3 (Hold).

Investors interested in the REIT industry may consider stocks like CorEnergy Infrastructure Trust, Inc. CORR , Extra Space Storage Inc. EXR and Gramercy Property Trust Inc. GPT . All three stocks sport 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.

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COUSIN PROP INC (CUZ): Free Stock Analysis Report

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GRAMERCY PROPRT (GPT): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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