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Cousins Properties Incorporated’s (CUZ - Free Report) third-quarter 2021 funds from operations (FFO) per share of 69 cents came in line with the Zacks Consensus Estimate as well as the prior-year quarter figure.
The rental property revenues came in at $185.5 million, which exceeded the Zacks Consensus Estimate of $181.2 million. The reported figure also climbed 3.6% on a year-over-year basis. The REIT also raised and narrowed its 2021 guidance.
According to Colin Connolly, president and chief executive officer of Cousins Properties, “Leasing volume, at almost 600,000 square feet, continued to accelerate during the third quarter with 84% of the leases signed representing new and expansion space. In addition, cash net rents on these new leases were 23% higher than the leases they replaced,the largest increase for this important metric in nearly six years.”
Quarter in Detail
Cousins Properties executed leases for 597,000 square feet of office space in the September-end quarter, including 503,000 square feet of new and expansion leases. The same-property rental property revenues, on a cash basis, were up 2.9% year on year. The same-property NOI, on a cash basis, increased 3.6% from the year-ago period.
As of Sep 30, 2021, 90.7% of its same-property portfolio was leased, down from 92.8% at the end of the year-ago period. The weighted average occupancy for the company’s same-property portfolio came in at 89% for third-quarter 2021 compared with the year-ago period’s 91.4%. Nonetheless, the second-generation net rent per square foot (cash basis) climbed 23.1%.
The company exited third-quarter 2021 with cash and cash equivalents of $5.5 million compared with $4.3 million recorded as of Dec 31, 2020.
Portfolio Activity
During the third quarter, the company acquired 725 Ponce — a 372,000-square-foot office property — in Atlanta, GA, for $300.2 million. With an initial contribution of $4 million, the company entered into a 50/50 joint venture, which owns the 715 Ponce land parcel beside the 725 Ponce property. Further, it entered into a 50/50 joint venture to develop Neuhoff, a mixed-use project in Nashville, TN, for an estimated investment of $281.3 million at the company’s share.
Cousins Properties sold One South at the Plaza — an 891,000-square-foot office property in Charlotte, NC — for $271.5 million. The company also sold its 50% investment in Dimensional Place — a 281,000-square-foot office property in Charlotte, NC — for $60.8 million and vended a land parcel adjacent to its 100 Mill office development in Phoenix, AZ to a hotel developer for $6.4 million.
2021 Outlook
Cousins Properties raised and narrowed its outlook, and now projects FFO per share at $2.73-$2.77 versus the $2.70-$2.78 targeted earlier, increasing the midpoint to $2.75 from $2.74 per share. The Zacks Consensus Estimate for the same is currently pinned at $2.76.
Currently, Cousins Properties carries a Zacks Rank #4 (Sell).
We now look forward to the earnings releases of other REITs, including Regency Centers Corporation (REG - Free Report) , Public Storage (PSA - Free Report) and Iron Mountain Incorporated (IRM - Free Report) , which are slated to be reported next week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Cousins Properties (CUZ) Meets Q3 FFO Estimates, Raises View
Cousins Properties Incorporated’s (CUZ - Free Report) third-quarter 2021 funds from operations (FFO) per share of 69 cents came in line with the Zacks Consensus Estimate as well as the prior-year quarter figure.
The rental property revenues came in at $185.5 million, which exceeded the Zacks Consensus Estimate of $181.2 million. The reported figure also climbed 3.6% on a year-over-year basis. The REIT also raised and narrowed its 2021 guidance.
According to Colin Connolly, president and chief executive officer of Cousins Properties, “Leasing volume, at almost 600,000 square feet, continued to accelerate during the third quarter with 84% of the leases signed representing new and expansion space. In addition, cash net rents on these new leases were 23% higher than the leases they replaced,the largest increase for this important metric in nearly six years.”
Quarter in Detail
Cousins Properties executed leases for 597,000 square feet of office space in the September-end quarter, including 503,000 square feet of new and expansion leases. The same-property rental property revenues, on a cash basis, were up 2.9% year on year. The same-property NOI, on a cash basis, increased 3.6% from the year-ago period.
As of Sep 30, 2021, 90.7% of its same-property portfolio was leased, down from 92.8% at the end of the year-ago period. The weighted average occupancy for the company’s same-property portfolio came in at 89% for third-quarter 2021 compared with the year-ago period’s 91.4%. Nonetheless, the second-generation net rent per square foot (cash basis) climbed 23.1%.
The company exited third-quarter 2021 with cash and cash equivalents of $5.5 million compared with $4.3 million recorded as of Dec 31, 2020.
Portfolio Activity
During the third quarter, the company acquired 725 Ponce — a 372,000-square-foot office property — in Atlanta, GA, for $300.2 million. With an initial contribution of $4 million, the company entered into a 50/50 joint venture, which owns the 715 Ponce land parcel beside the 725 Ponce property. Further, it entered into a 50/50 joint venture to develop Neuhoff, a mixed-use project in Nashville, TN, for an estimated investment of $281.3 million at the company’s share.
Cousins Properties sold One South at the Plaza — an 891,000-square-foot office property in Charlotte, NC — for $271.5 million. The company also sold its 50% investment in Dimensional Place — a 281,000-square-foot office property in Charlotte, NC — for $60.8 million and vended a land parcel adjacent to its 100 Mill office development in Phoenix, AZ to a hotel developer for $6.4 million.
2021 Outlook
Cousins Properties raised and narrowed its outlook, and now projects FFO per share at $2.73-$2.77 versus the $2.70-$2.78 targeted earlier, increasing the midpoint to $2.75 from $2.74 per share. The Zacks Consensus Estimate for the same is currently pinned at $2.76.
Currently, Cousins Properties carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cousins Properties Incorporated Price, Consensus and EPS Surprise
Cousins Properties Incorporated price-consensus-eps-surprise-chart | Cousins Properties Incorporated Quote
We now look forward to the earnings releases of other REITs, including Regency Centers Corporation (REG - Free Report) , Public Storage (PSA - Free Report) and Iron Mountain Incorporated (IRM - Free Report) , which are slated to be reported next week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.