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1. Company Snapshot

1.a. Company Description

Cousins Properties is a fully integrated, self-administered and self-managed real estate investment trust (REIT).The Company, based in Atlanta, GA and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office towers located in high-growth Sun Belt markets.Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing and management of high-quality real estate assets.


The Company has a comprehensive strategy in place based on a simple platform, trophy assets and opportunistic investments.

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1.b. Last Insights on CUZ

Cousins Properties Incorporated faced challenges due to a modest reacceleration in price pressures, as reflected in recent inflation data. Despite solid Q2 FFO in line with estimates, concerns arise from a stable but inconsistent dividend growth case. However, a 'Buy' rating from a recent analysis cites portfolio growth, strong profit margins, and FFO growth as upside factors. The company recently acquired The Link, a lifestyle office property in Uptown Dallas, for $218 million. A policy pivot with expected rate cuts could impact the REIT's performance. (Source: Bloomberg, PRNewswire)

1.c. Company Highlights

2. Cousins Properties' Strong Q3 Earnings and Growth Outlook

Cousins Properties reported a strong third quarter with FFO per share of $0.69, in line with analyst estimates, representing 5.6% growth compared to the same period last year. The company's leasing activity remained robust, with 551,000 square feet of leases completed during the quarter, the second-highest quarterly volume in three years. The company's GAAP NOI grew 1.9% and cash NOI grew 0.3% during the third quarter, driven by positive cash leasing spreads and increased same-property year-over-year cash NOI.

Publication Date: Nov -10

📋 Highlights
  • FFO Growth: Earnings rose to $0.69/share (Q3), with 2025 guidance raised to $2.82–$2.86/share (midpoint $2.84), reflecting 5.6% growth over 2024.
  • Leasing Momentum: Secured 551,000 sq ft in leases (2nd-highest in 3 years) with 9.4-year weighted average lease terms and 4.2% year-over-year rent growth.
  • Strategic Acquisition: Purchased Dallas' Link property for $218 million, expanding in Sunbelt markets with strong demand from tech/financial firms.
  • Occupancy & Balance Sheet: Achieved 90% office portfolio occupancy, 88.3% weighted average occupancy, and net debt/EBITDA of 5.38x (target cap: 6x).
  • Market Positioning: Sunbelt migration drives demand; Charlotte’s 201 North Tryon redevelopment ($40M, Q1 2027 completion) targets lifestyle office growth.

Operational Highlights

The company's operations team delivered exceptional results, with total office portfolio end-of-period lease and weighted average occupancy percentages at 90% and 88.3%, respectively. They completed 40 office leases totaling 551,000 square feet, with a weighted average lease term of 9.4 years. Lease economics were strong, with second-generation cash rents increasing by 4.2% and average net effective rent at $28.37. As Michael Connolly noted, the company is close to an inflection point where it will become a landlord's market, with no new construction starting and demand accelerating, leading to a potential shortage of lifestyle office space.

Growth Opportunities and Capital Markets Activity

The company is evaluating several interesting investment opportunities, including property acquisitions, development, debt, and joint ventures. They have updated their 2025 earnings guidance to $2.82-$2.86 per share, with the midpoint of $2.84, driven by higher parking income, termination fees, and lower SOFR. The company's capital markets activity included amending an existing construction loan for their Neuhoff joint venture, paying off a $250 million note, and using proceeds from a $500 million bond offering to partially fund an acquisition.

Valuation and Outlook

With a P/E Ratio of 76.28 and an EV/EBITDA of 14.01, the market is pricing in a certain level of growth for Cousins Properties. Analysts estimate next year's revenue growth at 3.0%. The company's strong operational performance, robust leasing activity, and growth opportunities position it well for future success. As the economy grows and job reductions become job growth, Cousins Properties is bullish on the future, with a positive outlook for the next 4-5 years due to the lack of new supply.

Debt and Leverage

The company's net debt to EBITDA ratio is 6.19, and they have some capacity to increase leverage and drive growth at an opportune time, with an upper bound of leverage the company is willing to take around 6x net debt to EBITDA. The company's current leverage is at 5.38x, providing a buffer for potential future investments.

3. NewsRoom

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Fisher Asset Management LLC Reduces Stock Position in Cousins Properties Incorporated $CUZ

Dec -04

Source: defenseworld.net

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Cousins Properties Incorporated (NYSE:CUZ) Given Average Recommendation of “Moderate Buy” by Brokerages

Dec -01

Source: defenseworld.net

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Creative Planning Has $1.42 Million Holdings in Cousins Properties Incorporated $CUZ

Nov -29

Source: defenseworld.net

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Cousins Properties Incorporated $CUZ Shares Bought by Boston Partners

Nov -29

Source: defenseworld.net

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CUZ vs. EGP: Which Stock Is the Better Value Option?

Nov -28

Source: zacks.com

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Wall Street Analysts See a 25.31% Upside in Cousins Properties (CUZ): Can the Stock Really Move This High?

Nov -27

Source: zacks.com

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B&I Capital AG Makes New $6.31 Million Investment in Cousins Properties Incorporated $CUZ

Nov -27

Source: defenseworld.net

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Contrasting Cousins Properties (NYSE:CUZ) and OUTFRONT Media (NYSE:OUT)

Nov -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.49%)

6. Segments

Office

Expected Growth: 4.5%

Cousins Properties Incorporated's 4.5% office segment growth is driven by increasing demand for Class A office spaces, particularly in Sun Belt markets. Strong job market growth, fueled by the tech industry, and limited new supply are contributing to rising rents and occupancies. Additionally, Cousins' strategic portfolio repositioning and redevelopment efforts are enhancing the quality of its office portfolio, driving growth and value creation.

Non-Office

Expected Growth: 3.5%

Cousins Properties' Non-Office segment growth of 3.5% is driven by increasing demand for industrial and logistics spaces, fueled by e-commerce growth and supply chain shifts. Additionally, the company's strategic acquisitions and development projects in high-growth markets, such as Austin and Seattle, contribute to the segment's expansion.

7. Detailed Products

Office Properties

Cousins Properties Incorporated owns and operates a portfolio of high-quality office properties, providing tenants with premium spaces to conduct business.

Mixed-Use Developments

The company develops and manages mixed-use projects, combining office, retail, and residential spaces to create vibrant, walkable communities.

Retail Properties

Cousins Properties Incorporated owns and operates a portfolio of retail properties, offering a range of shopping and dining experiences.

Land Development

The company acquires and develops raw land, creating opportunities for future growth and development.

Property Management Services

Cousins Properties Incorporated offers comprehensive property management services, ensuring optimal property performance and tenant satisfaction.

8. Cousins Properties Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Cousins Properties Incorporated operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and diversified portfolio of properties.

Bargaining Power Of Customers

Cousins Properties Incorporated has a diverse tenant base, which reduces the bargaining power of individual customers. Additionally, the company's properties are located in high-demand areas, giving it an upper hand in negotiations.

Bargaining Power Of Suppliers

Cousins Properties Incorporated relies on a network of suppliers for construction materials, labor, and other services. While the company has some bargaining power due to its scale, suppliers still have some leverage, particularly in times of high demand.

Threat Of New Entrants

The commercial real estate industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and gives established players like Cousins Properties Incorporated a competitive advantage.

Intensity Of Rivalry

The commercial real estate industry is highly competitive, with many established players competing for a limited number of tenants and development opportunities. Cousins Properties Incorporated must continually innovate and improve its offerings to stay ahead of the competition.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.39%
Debt Cost 4.24%
Equity Weight 60.61%
Equity Cost 10.21%
WACC 7.86%
Leverage 64.99%

11. Quality Control: Cousins Properties Incorporated passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alexandria Real Estate Equities

A-Score: 5.8/10

Value: 7.9

Growth: 4.4

Quality: 6.1

Yield: 9.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 5.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Cousins Properties

A-Score: 5.2/10

Value: 3.6

Growth: 2.8

Quality: 4.2

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.3

Growth: 4.6

Quality: 3.7

Yield: 8.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Boston Properties

A-Score: 4.8/10

Value: 3.3

Growth: 3.1

Quality: 3.8

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
SL Green Realty

A-Score: 4.1/10

Value: 2.1

Growth: 0.9

Quality: 3.5

Yield: 9.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.87$

Current Price

24.88$

Potential

-0.00%

Expected Cash-Flows