We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cousins Properties (CUZ) Q4 FFO in Line, Revenues Up Y/Y
Read MoreHide Full Article
Cousins Properties Inc. (CUZ - Free Report) reported fourth-quarter 2016 funds from operations (“FFO”) per share of 7 cents, against 23 cents reported in the year-ago period. However, FFO per share for fourth-quarter 2016, excluding special items, were 15 cents, in line with the Zacks Consensus Estimate.
The special items in the fourth quarter included around $26.5 million of Parkway transaction costs and loss on extinguishment of debt of $5.2 million. Notably, in Oct 2016, Cousins Properties and Parkway merged their operations and then spun off the Houston assets of this combined entity into a separate public REIT.
Total revenue for the quarter came in at $114.3 million, compared with $49.9 million reported in the prior-year period. Additionally, rental property revenues were $111.4 million, against $47.3 million in the year-ago quarter. The Zacks Consensus Estimates was pegged at $109 million.
For full-year 2016, the company reported FFO per share before special items of 77 cents, against 89 cents reported a year ago. Total revenue for the year came in at $259.2 million, up from $204.4 million a year ago. Moreover, rental property revenues were up 27.3% year over year to $249.8 million.
Quarter in Detail
Cousins Properties leased or renewed 761,087 square feet of office space in the quarter. Same property net operating income, on cash basis, rose 7.1% year over year. Moreover, second generation net rent per square foot (cash basis) moved 14.7% north.
Finally, Cousins Properties exited the quarter with cash and cash equivalents of $35.7 million, up from $2.0 million at the end of the prior year.
Parkway Transactions
On Oct 6, 2016, Cousins Properties and Parkway merged their operations, with shareholders of Parkway receiving 1.63 shares of Cousins’ stock for each share of Parkway stock. Subsequent to this, the company concluded the spin-off of the combined Houston assets of both companies into New Parkway, through a special taxable dividend.
The spin-off process resulted in each shareholder of Cousins receiving one share of New Parkway for every eight shares of Cousins’ common or limited voting preferred stock held on Oct 6, 2016.
Following this, the company entered into a series of transactions related to Parkway. This included the sale of two Liberty Place in Philadelphia, for a gross price of $219 million and repayment of a related $98.3 million mortgage loan. Further, Lincoln Place in Miami was sold for a gross price of $80 million.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of 56–62 cents. The Zacks Consensus Estimate for the year is currently pegged at 59 cents.
In Conclusion
Cousins Properties owns an unmatched portfolio of premium office assets located in high-growth Sun Belt markets. Further, the merger with Parkway Properties and the subsequent spin-off of the Houston-based assets of the combined company into a publicly-traded REIT has been a strategic fit as it aided the company in boosting its portfolio with premium properties and exiting the Houston office market. However, the company’s top line faces major headwinds. In addition, stiff competition and hike in interest rate remain concerns.
We now look forward to the earnings releases of HCP Inc. (HCP - Free Report) , Vornado Realty Trust (VNO - Free Report) and Federal Realty Investment Trust (FRT - Free Report) which are expected to report early next week.
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. All EPS numbers presented in this write up represent FFO per share.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Cousins Properties (CUZ) Q4 FFO in Line, Revenues Up Y/Y
Cousins Properties Inc. (CUZ - Free Report) reported fourth-quarter 2016 funds from operations (“FFO”) per share of 7 cents, against 23 cents reported in the year-ago period. However, FFO per share for fourth-quarter 2016, excluding special items, were 15 cents, in line with the Zacks Consensus Estimate.
The special items in the fourth quarter included around $26.5 million of Parkway transaction costs and loss on extinguishment of debt of $5.2 million. Notably, in Oct 2016, Cousins Properties and Parkway merged their operations and then spun off the Houston assets of this combined entity into a separate public REIT.
Total revenue for the quarter came in at $114.3 million, compared with $49.9 million reported in the prior-year period. Additionally, rental property revenues were $111.4 million, against $47.3 million in the year-ago quarter. The Zacks Consensus Estimates was pegged at $109 million.
For full-year 2016, the company reported FFO per share before special items of 77 cents, against 89 cents reported a year ago. Total revenue for the year came in at $259.2 million, up from $204.4 million a year ago. Moreover, rental property revenues were up 27.3% year over year to $249.8 million.
Quarter in Detail
Cousins Properties leased or renewed 761,087 square feet of office space in the quarter. Same property net operating income, on cash basis, rose 7.1% year over year. Moreover, second generation net rent per square foot (cash basis) moved 14.7% north.
Finally, Cousins Properties exited the quarter with cash and cash equivalents of $35.7 million, up from $2.0 million at the end of the prior year.
Parkway Transactions
On Oct 6, 2016, Cousins Properties and Parkway merged their operations, with shareholders of Parkway receiving 1.63 shares of Cousins’ stock for each share of Parkway stock. Subsequent to this, the company concluded the spin-off of the combined Houston assets of both companies into New Parkway, through a special taxable dividend.
The spin-off process resulted in each shareholder of Cousins receiving one share of New Parkway for every eight shares of Cousins’ common or limited voting preferred stock held on Oct 6, 2016.
Following this, the company entered into a series of transactions related to Parkway. This included the sale of two Liberty Place in Philadelphia, for a gross price of $219 million and repayment of a related $98.3 million mortgage loan. Further, Lincoln Place in Miami was sold for a gross price of $80 million.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of 56–62 cents. The Zacks Consensus Estimate for the year is currently pegged at 59 cents.
In Conclusion
Cousins Properties owns an unmatched portfolio of premium office assets located in high-growth Sun Belt markets. Further, the merger with Parkway Properties and the subsequent spin-off of the Houston-based assets of the combined company into a publicly-traded REIT has been a strategic fit as it aided the company in boosting its portfolio with premium properties and exiting the Houston office market. However, the company’s top line faces major headwinds. In addition, stiff competition and hike in interest rate remain concerns.
Currently, Cousins Properties has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cousins Properties Inc. Price, Consensus and EPS Surprise
Cousins Properties Incorporated Price, Consensus and EPS Surprise | Cousins Properties Incorporated Quote
We now look forward to the earnings releases of HCP Inc. (HCP - Free Report) , Vornado Realty Trust (VNO - Free Report) and Federal Realty Investment Trust (FRT - Free Report) which are expected to report early next week.
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. All EPS numbers presented in this write up represent FFO per share.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>