A month has gone by since the last earnings report for Cousins Properties (CUZ Quick QuoteCUZ - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cousins Properties due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Cousins Properties Q2 FFO In Line, Revenues Up Y/Y

Cousins Properties reported second-quarter 2020 FFO per share of 66 cents, in line with the Zacks Consensus Estimate. Notably, the reported figure comes in lower than the prior-year quarter’s 71 cents.

Rental property revenues for the quarter came in at $175.1 million, marking a 30% jump, year on year. The figure also outpaced the Zacks Consensus Estimate of $172.6 million.

Quarterly results reflect growth in rental property revenues and net rent per square foot. However, fall in same-property NOI was a concern. The company informed that its rent collection for the second quarter was 97%, including 98% from office tenants. In July, the company collected 98% of its rents, including 98% from office tenants.

It also updated the current-year outlook in light of the coronavirus pandemic.

Quarter in Detail

Cousins Properties executed leases for 302,877 square feet of office space during the June-end quarter. Same-property NOI, on a cash basis, edged down 1.6% from the year-ago quarter. As of Jun 30, 2020, 94.4% of its same-property portfolio was leased, declining 40 basis points (bps) from the first-quarter end.

Temporary rent deferral agreements and a decline in parking revenues affected same-property performance in the second quarter.

Nonetheless, second-generation net rent per square foot (cash basis) climbed 20.6%. Weighted average occupancy for the company’s same-property portfolio of 91.5% for the quarter ended Jun 30, 2020, expanded 10 bps from the prior quarter.

Cousins Properties exited the second quarter with cash and cash equivalents of $28.3 million compared with $15.6 million recorded as of Dec 31, 2019. The company has in excess of $1 billion of available liquidity.

2020 Outlook

The company has provided updates regarding its current year guidance.

On May 4, the company acquired a parking garage in Charlotte for a gross price of $85 million. The property is expected to generate NOI of $1.5-2 million during the company's ownership period this year and stabilized NOI of $4.5-5 million. The company expects a fall in parking revenues to affect NOI by $5.5-9.5 million compared to $3.5-9.5 million earlier. Moreover, fee and other income is projected to reduce by $2 million.

Nonetheless, in the current year, Cousins Properties expects general and administrative expenses (net of capitalized salaries) of $27-29 million, 18% lower from $33-35 million mentioned earlier. Additionally, the company expects a rise in property level NOI amounting to about $0.3 million. This due to the prior disclosed Parsley Energy lease amendment at Colorado Tower which was accounted for as a lease modification rather than a termination.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

Currently, Cousins Properties has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Cousins Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.