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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 Delivers Strong 2025 Performance

Cousins Properties reported a robust fourth quarter with FFO of $0.71 per share, in line with consensus estimates. For the full year 2025, the company delivered $2.84 per share, representing 5.6% growth over 2024. The strong performance was driven by robust leasing activity, with 700,000 square feet of leases completed during the quarter, the second-highest quarterly volume over the last four years. As Richard Hickson noted, "Our operations team ended 2025 with another great quarter, delivering a full year of fantastic operating results."

Publication Date: Feb -08

📋 Highlights
  • FFO Growth: 2025 full-year FFO of $2.84/share, up 5.6% YoY, with Q4 at $0.71/share matching consensus.
  • Leasing Momentum: 700,000 sq ft leased in Q4, the second-highest quarterly volume in 4 years, driving post-pandemic demand highs.
  • Trophy Acquisition: Purchased 300 South Tryon in Charlotte for $317M, a 20% rent-upgrade potential lifestyle office asset.
  • Occupancy Target: Aiming for 90%+ occupancy by 2026’s end, supported by a 1.1M sq ft late-stage lease pipeline.
  • 2026 Guidance: Midpoint FFO of $2.92/share, reflecting 2.8% growth, with $200M+ in non-core asset sales funding investments.

Operational Highlights

The company's office portfolio end-of-period leased and weighted average occupancy percentages were 90.7% and 88.3%, respectively. Leasing volume in the fourth quarter was very strong, with 39 office leases totaling 700,000 square feet. The company also acquired 300 South Tryon, a trophy lifestyle office property in Charlotte, for $317 million, strategically expanding its presence in the Uptown submarket.

Leasing and Occupancy Trends

Office fundamentals are improving, driven by a decline in vacancy and a growing demand for high-quality space. The company's leasing pipeline is robust across all markets, with a notable pickup in leasing interest from West Coast and New York City-based companies. Cousins Properties expects to grow occupancy in 2026, aiming for 90% or higher by year-end.

Valuation and Growth Prospects

With a P/E Ratio of 74.76 and an EV/EBITDA of 12.52, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.7%. The company's Dividend Yield of 4.99% is also attractive to income investors. Given the improving office fundamentals and the company's robust leasing pipeline, Cousins Properties is well-positioned for continued growth.

Strategic Initiatives

The company plans to execute additional accretive investment opportunities, targeting properties that can be repositioned into lifestyle office in its target Sun Belt markets. Cousins Properties will evaluate all options to fund new investments, including dispositions of non-core assets, share repurchases, and utilizing the balance sheet. The company introduced 2026 FFO guidance of $2.92 per share at the midpoint, implying 2.8% growth over 2025.

3. NewsRoom

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From Silicon To Steel: The Value Trade Returns

Feb -08

Source: seekingalpha.com

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Cousins Properties Q4 Earnings Call Highlights

Feb -08

Source: defenseworld.net

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Thrivent Financial for Lutherans Has $5.49 Million Stake in Cousins Properties Incorporated $CUZ

Feb -07

Source: defenseworld.net

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Cousins Properties Incorporated (CUZ) Q4 2025 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

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Cousins Properties Q4 FFO Meets Estimates, Revenues Beat

Feb -06

Source: zacks.com

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Cousins Properties (CUZ) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -06

Source: zacks.com

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Cousins Properties (CUZ) Matches Q4 FFO Estimates

Feb -06

Source: zacks.com

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Cousins Properties Acquires Lifestyle Office Property in Uptown Charlotte

Feb -05

Source: prnewswire.com

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
Boston Properties

A-Score: 5.4/10

Value: 5.7

Growth: 3.2

Quality: 4.1

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Cousins Properties

A-Score: 5.3/10

Value: 4.9

Growth: 2.7

Quality: 4.2

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Alexandria Real Estate Equities

A-Score: 5.3/10

Value: 7.3

Growth: 4.6

Quality: 4.7

Yield: 9.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Vornado Realty

A-Score: 5.2/10

Value: 7.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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Douglas Emmett

A-Score: 4.9/10

Value: 4.7

Growth: 4.6

Quality: 3.3

Yield: 9.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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SL Green Realty

A-Score: 3.9/10

Value: 2.5

Growth: 0.9

Quality: 3.8

Yield: 9.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.64$

Current Price

25.64$

Potential

-0.00%

Expected Cash-Flows