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Cousins Properties (CUZ) Q4 FFO Tops Estimates, Down Y/Y

Cousins Properties Inc.CUZ reported fourth-quarter 2015 FFO (funds from operations) of 23 cents per share, beating the Zacks Consensus Estimate by 2 cents. However, the figure fell short of the year-ago tally by a penny. Results were aided by growth in same property net operating income ("NOI").

Rental property revenues for the quarter came in at $90.8 million, down 8.7% year over year. Moreover, the figure lagged the Zacks Consensus Estimate of $96.1 million.

For full-year 2015, FFO came in at 89 cents per share, up 8 cents year over year. Rental property revenues for 2015 were $373.1 million, 8.5% above the 2014 tally.

Quarter in Detail

Cousins Properties leased or renewed 1,240,017 square feet of office space in the quarter. Same property NOI, on cash basis, rose 8.2% year over year. Moreover, second generation net office rent per square foot (cash basis) moved north 23.8%.

During fourth-quarter 2015, Cousins Properties divested The Points at Waterview in Dallas, TX for $26.8 million. Also, the REIT sold 3 North Point Center East office buildings in Atlanta, GA for $70.3 million. Further, the company started operations at Research Park V in Austin, TX.

2016 Outlook

Cousins Properties disclosed FFO per share guidance for 2016. It expects 2016 FFO per share in a range of 86-92 cents. The Zacks Consensus Estimate of 91 cents falls in the guided range.

Our Take

Keeping its winning streak alive, Cousins Properties came up with strong results once again, driven by impressive performance of its operating portfolio.

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

REIT stocks that are scheduled to release fourth-quarter 2015 results next week include PS Business Parks Inc. PSB , Vornado Realty Trust VNO and Healthcare Realty Trust Incorporated HR .

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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VORNADO RLTY TR (VNO): 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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