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) Q1 FFO & Revenues Top Estimates
Read MoreHide Full Article
Cousins Properties Incorporated (CUZ - Free Report) reported first-quarter 2017 funds from operations (“FFO”) per share of 16 cents compared with 21 cents in the year-ago period. Excluding $1.9 million of transaction costs, FFO per share for the quarter came in at 17 cents, surpassing the Zacks Consensus Estimate of 15 cents.
The first quarter transaction costs emanated from the company’s merger with Parkway Properties in Oct 2016 and subsequent spin off of the Houston assets of the combined entity into a separate public company, Parkway, Inc.
Total revenue for the quarter came in at $119.9 million, compared with $47.9 million reported in the prior-year period. The Zacks Consensus Estimates was pegged at $117 million. Additionally, rental property revenues were $112.5 million compared with $45.4 million in the year-ago quarter.
Quarter in Detail
Cousins Properties leased or renewed 570,744 square feet of office space in the quarter. Same property net operating income, on a cash basis, rose 5.5% year over year. Moreover, second generation net rent per square foot (cash basis) moved 3.3% north.
Cousins Properties exited the quarter with cash and cash equivalents of $35.8 million, almost flat from the prior-year quarter.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of 58–63 cents per share. The Zacks Consensus Estimate for the year is currently pegged at 60 cents.
Moreover, the company expects its current year net income in the range of 41–49 cents per share.
The company also increased estimates for fee and other income and rental income to a range of $15-$17 million and $29-$31 million, respectively. However, the guidance for disposition activity has been revised down to a range of $300-$325 million primarily due to the closure of common equity issuance in the quarter.
In Conclusion
The company’s diversified portfolio, presence of high-end tenants in its roster, and opportunistic investments in best sub-markets should help it to keep the growth momentum alive.
However, intense competition, high dependence on its office portfolio and further hike in interest rates remain the key concerns.
Cousins Properties Incorporated Price, Consensus and EPS Surprise
We now look forward to the earnings releases of other REITs like HCP, Inc. (HCP - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . HCP, Inc. and Federal Realty Investment Trust are slated to report results on May 2 and May 3, respectively.
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' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Cousins Properties (CUZ) Q1 FFO & Revenues Top Estimates
Cousins Properties Incorporated (CUZ - Free Report) reported first-quarter 2017 funds from operations (“FFO”) per share of 16 cents compared with 21 cents in the year-ago period. Excluding $1.9 million of transaction costs, FFO per share for the quarter came in at 17 cents, surpassing the Zacks Consensus Estimate of 15 cents.
The first quarter transaction costs emanated from the company’s merger with Parkway Properties in Oct 2016 and subsequent spin off of the Houston assets of the combined entity into a separate public company, Parkway, Inc.
Total revenue for the quarter came in at $119.9 million, compared with $47.9 million reported in the prior-year period. The Zacks Consensus Estimates was pegged at $117 million. Additionally, rental property revenues were $112.5 million compared with $45.4 million in the year-ago quarter.
Quarter in Detail
Cousins Properties leased or renewed 570,744 square feet of office space in the quarter. Same property net operating income, on a cash basis, rose 5.5% year over year. Moreover, second generation net rent per square foot (cash basis) moved 3.3% north.
Cousins Properties exited the quarter with cash and cash equivalents of $35.8 million, almost flat from the prior-year quarter.
2017 Outlook
Cousins Properties projects 2017 FFO per share in the range of 58–63 cents per share. The Zacks Consensus Estimate for the year is currently pegged at 60 cents.
Moreover, the company expects its current year net income in the range of 41–49 cents per share.
The company also increased estimates for fee and other income and rental income to a range of $15-$17 million and $29-$31 million, respectively. However, the guidance for disposition activity has been revised down to a range of $300-$325 million primarily due to the closure of common equity issuance in the quarter.
In Conclusion
The company’s diversified portfolio, presence of high-end tenants in its roster, and opportunistic investments in best sub-markets should help it to keep the growth momentum alive.
However, intense competition, high dependence on its office portfolio and further hike in interest rates remain the key concerns.
Cousins Properties Incorporated Price, Consensus and EPS Surprise
Cousins Properties Incorporated Price, Consensus and EPS Surprise | Cousins Properties Incorporated Quote
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.
We now look forward to the earnings releases of other REITs like HCP, Inc. (HCP - Free Report) and Federal Realty Investment Trust (FRT - Free Report) . HCP, Inc. and Federal Realty Investment Trust are slated to report results on May 2 and May 3, respectively.
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' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>