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 Incorporated (CUZ - Free Report) reported third-quarter 2019 funds from operations (FFO) per share (before TIER transaction costs) of 72 cents, surpassing the Zacks Consensus Estimate of 69 cents. Further, the figure comes in higher than the prior-year quarter’s reported tally of 63 cents.
Cousins Properties’ third-quarter 2019 revenue figure also recorded year-over-year growth. The company also witnessed increase in same-property cash net operating income (NOI).
Rental property revenues for the quarter came in at $180.8 million, which compares favorably with the $115.7 million witnessed in the year-ago quarter. The reported figure also outpaced the Zacks Consensus Estimate of $175 million.
Quarter in Detail
Cousins Properties executed leases for 741,367 square feet of office space during the September-end quarter. Same-property NOI, on a cash basis, increased 2.9% from the year-ago quarter. Moreover, second-generation net rent per square foot (cash basis) increased 8.1%.
Weighted average occupancy for the company’s same-property portfolio shrunk 100 basis points to 90.9% for the quarter ended Sep 30, 2019.
Cousins Properties exited the third quarter with cash and cash equivalents of around $12.4 million compared with the $2.5 million recorded as of Dec 31, 2018.
2019 Outlook
Cousins Properties has raised and narrowed its guidance for the full-year 2019 FFO per share. The company expects FFO per share (excluding transaction costs) in the range of $2.93 to $3 compared with the previous guidance of $2.81 to $2.93. The Zacks Consensus Estimate for the current-year FFO per share is currently pinned at $2.90.
The projection for same property net operating income growth (on a cash basis) has been revised to 4-5%, up from 3.25-5.25%. Furthermore, fee and other income is projected at $35-$37 million, up from the $32-$34 million estimated earlier, due to higher lease termination fees.
2020 Outlook
Cousins Properties also provided its guidance for the full-year 2020 FFO per share. The company expects FFO per share in the $2.71-$2.85 band. The Zacks Consensus Estimate for the same is currently pinned at $2.81.
Same property net operating income growth (on a cash basis) is projected at 4-6%. Furthermore, fee and other income is anticipated in the range of $21 million to $23 million.
Conclusion
Third-quarter 2019 marked the first full reporting cycle after Cousins Properties completed its merger with TIER REIT. Realizing financial synergies, the company posted encouraging results. Moreover, solid fundamentals of the office market in the Sun Belt region and a portfolio of Class A properties helped the company register year-over-year growth in same-property NOI.
We now look forward to the earnings releases of other REITs like Alexandria Real Estate Equities (ARE - Free Report) , Vornado Realty Trust (VNO - Free Report) and Welltower Inc. (WELL - Free Report) . All three companies are scheduled to release their quarterly numbers on Oct 28.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Cousins Properties (CUZ) Trumps Q3 FFO & Revenue Estimates
Cousins Properties Incorporated (CUZ - Free Report) reported third-quarter 2019 funds from operations (FFO) per share (before TIER transaction costs) of 72 cents, surpassing the Zacks Consensus Estimate of 69 cents. Further, the figure comes in higher than the prior-year quarter’s reported tally of 63 cents.
Cousins Properties’ third-quarter 2019 revenue figure also recorded year-over-year growth. The company also witnessed increase in same-property cash net operating income (NOI).
Rental property revenues for the quarter came in at $180.8 million, which compares favorably with the $115.7 million witnessed in the year-ago quarter. The reported figure also outpaced the Zacks Consensus Estimate of $175 million.
Quarter in Detail
Cousins Properties executed leases for 741,367 square feet of office space during the September-end quarter. Same-property NOI, on a cash basis, increased 2.9% from the year-ago quarter. Moreover, second-generation net rent per square foot (cash basis) increased 8.1%.
Weighted average occupancy for the company’s same-property portfolio shrunk 100 basis points to 90.9% for the quarter ended Sep 30, 2019.
Cousins Properties exited the third quarter with cash and cash equivalents of around $12.4 million compared with the $2.5 million recorded as of Dec 31, 2018.
2019 Outlook
Cousins Properties has raised and narrowed its guidance for the full-year 2019 FFO per share. The company expects FFO per share (excluding transaction costs) in the range of $2.93 to $3 compared with the previous guidance of $2.81 to $2.93. The Zacks Consensus Estimate for the current-year FFO per share is currently pinned at $2.90.
The projection for same property net operating income growth (on a cash basis) has been revised to 4-5%, up from 3.25-5.25%. Furthermore, fee and other income is projected at $35-$37 million, up from the $32-$34 million estimated earlier, due to higher lease termination fees.
2020 Outlook
Cousins Properties also provided its guidance for the full-year 2020 FFO per share. The company expects FFO per share in the $2.71-$2.85 band. The Zacks Consensus Estimate for the same is currently pinned at $2.81.
Same property net operating income growth (on a cash basis) is projected at 4-6%. Furthermore, fee and other income is anticipated in the range of $21 million to $23 million.
Conclusion
Third-quarter 2019 marked the first full reporting cycle after Cousins Properties completed its merger with TIER REIT. Realizing financial synergies, the company posted encouraging results. Moreover, solid fundamentals of the office market in the Sun Belt region and a portfolio of Class A properties helped the company register year-over-year growth in same-property NOI.
Currently, Cousins Properties sports a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank 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 like Alexandria Real Estate Equities (ARE - Free Report) , Vornado Realty Trust (VNO - Free Report) and Welltower Inc. (WELL - Free Report) . All three companies are scheduled to release their quarterly numbers on Oct 28.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>