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 - Free Report) fourth-quarter 2023 funds from operations (FFO) per share of 65 cents were in line with the Zacks Consensus Estimate.
Results reflect year-over-year growth in the top line, aided by healthy leasing activity, a rise in occupancy levels, and decent improvement in second-generation net rent per square foot. However, higher same-property rental property operating expenses are a headwind in the quarter. CUZ also issued its 2024 outlook for FFO per share.
Quarterly rental property revenues came in at $196.6 million, lagging the Zacks Consensus Estimate of $202.4 million.
On a year-over-year basis, while FFO per share declined 1.5%, rental property revenues increased 1.5%.
In 2023, Cousins Properties reported an FFO per share of $2.62, in line with the Zacks Consensus Estimate. The figure fell 3.7% from the prior year’s $2.72. Full-year rental property revenues of $799 million increased 6% year over year. However, the reported figure missed the consensus mark of $807.1 million.
Quarter in Detail
Cousins Properties executed leases for 452,688 square feet of office space in the fourth quarter, including 190,589 square feet of new and expansion leases.
The same-property rental property revenues, on a cash basis, rose marginally year over year to $177.1 million. The same-property rental property operating expenses on a cash basis fell 4.6% to $60.4 million in the fourth quarter of 2023. As a result, the same-property net operating income, on a cash basis, climbed 3.5% to $116.7 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 87.5%, up 80 basis points from a year ago. Our estimate was pegged at 87.2%.
CUZ ended the quarter with the same-property portfolio being leased 90.6%, down from 90.7% at the end of the year-ago period.
The second-generation net rent per square foot (cash basis) climbed 0.8%.
However, interest expenses jumped 24.3% year over year to $27.5 million during the quarter. Our estimate for the metric was pegged at $27.6 million.
Balance Sheet
CUZ exited the fourth quarter with cash and cash equivalents of $6 million, down from $6.9 million as of Sep 30, 2023.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.14 compared with 4.93 in the year-ago quarter.
2024 Outlook
Cousins Properties expects 2024 FFO per share to be in the range of $2.57-$2.67. The Zacks Consensus Estimate for the same is presently pegged at $2.58, which is within expectations.
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 AFFO per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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 Meets Mark, '24 View Issued
Cousins Properties’ (CUZ - Free Report) fourth-quarter 2023 funds from operations (FFO) per share of 65 cents were in line with the Zacks Consensus Estimate.
Results reflect year-over-year growth in the top line, aided by healthy leasing activity, a rise in occupancy levels, and decent improvement in second-generation net rent per square foot. However, higher same-property rental property operating expenses are a headwind in the quarter. CUZ also issued its 2024 outlook for FFO per share.
Quarterly rental property revenues came in at $196.6 million, lagging the Zacks Consensus Estimate of $202.4 million.
On a year-over-year basis, while FFO per share declined 1.5%, rental property revenues increased 1.5%.
In 2023, Cousins Properties reported an FFO per share of $2.62, in line with the Zacks Consensus Estimate. The figure fell 3.7% from the prior year’s $2.72. Full-year rental property revenues of $799 million increased 6% year over year. However, the reported figure missed the consensus mark of $807.1 million.
Quarter in Detail
Cousins Properties executed leases for 452,688 square feet of office space in the fourth quarter, including 190,589 square feet of new and expansion leases.
The same-property rental property revenues, on a cash basis, rose marginally year over year to $177.1 million. The same-property rental property operating expenses on a cash basis fell 4.6% to $60.4 million in the fourth quarter of 2023. As a result, the same-property net operating income, on a cash basis, climbed 3.5% to $116.7 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 87.5%, up 80 basis points from a year ago. Our estimate was pegged at 87.2%.
CUZ ended the quarter with the same-property portfolio being leased 90.6%, down from 90.7% at the end of the year-ago period.
The second-generation net rent per square foot (cash basis) climbed 0.8%.
However, interest expenses jumped 24.3% year over year to $27.5 million during the quarter. Our estimate for the metric was pegged at $27.6 million.
Balance Sheet
CUZ exited the fourth quarter with cash and cash equivalents of $6 million, down from $6.9 million as of Sep 30, 2023.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.14 compared with 4.93 in the year-ago quarter.
2024 Outlook
Cousins Properties expects 2024 FFO per share to be in the range of $2.57-$2.67. The Zacks Consensus Estimate for the same is presently pegged at $2.58, which is within expectations.
CUZ currently carries a Zacks Rank #3 (Hold). 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
Performance of Other REITs
Boston Properties Inc.’s (BXP - Free Report) fourth-quarter 2023 FFO per share of $1.82 outpaced the Zacks Consensus Estimate by a penny. However, the reported figure fell 2.2% year over year.
BXP’s quarterly results reflect better-than-anticipated revenues on healthy leasing activity. However, higher interest expenses during the quarter marred its year-over-year FFO per share growth. BXP also issued its guidance for 2024 FFO per share.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2023 adjusted funds from operations (AFFO) per share of $2.28, missing the Zacks Consensus Estimate by a penny. However, the reported figure climbed 6.5% from the year-ago quarter.
Results reflect lower-than-anticipated AFFO per share. However, a rise in revenues, aided by decent leasing activity and rental rate growth, supports the results to some extent. ARE also issued its 2024 outlook.
Crown Castle Inc. (CCI - Free Report) reported fourth-quarter 2023 AFFO per share of $1.82, outpacing the Zacks Consensus Estimate of $1.79. However, the reported figure declined 1.6% from the year-ago quarter.
Results reflect better-than-anticipated revenues aided by healthy site-rental revenue growth. However, higher interest expense on debt obligations and lower contributions from adjusted EBITDA were undermining factors. CCI maintained its outlook for 2024.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.