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Cousins Properties Inc. (CUZ)
NYSE:CUZ
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Cousins Properties
(NYSE:CUZ)
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Rating:68Neutral
Price Target:
$31.00
▲(9.35% Upside)
Cousins Properties' strong earnings call performance, with raised guidance and strategic acquisitions, is the most significant factor driving the score. However, financial performance challenges, particularly in net profitability and cash flow, along with technical indicators suggesting bearish trends and overvaluation concerns, moderate the overall score.
Positive Factors
Strategic Acquisitions
The acquisition of The Link, a high-occupancy property, enhances Cousins Properties' portfolio, providing immediate earnings accretion and long-term growth potential in a strong market.
Leasing Activity
Robust leasing activity, with a significant portion being new or expansion leases, indicates strong demand for Cousins Properties' office spaces, supporting future revenue stability.
Guidance Increase
Increasing guidance reflects management's confidence in sustained financial performance and growth, driven by strategic initiatives and market demand.
Negative Factors
Occupancy Decline
Occupancy declines from major tenant move-outs could pressure revenue and profitability, highlighting the need for effective tenant retention strategies.
Leverage Increase
Rising leverage may constrain financial flexibility, increasing risk in economic downturns and potentially impacting future investment capacity.
Net Profit Margin Decline
Declining net profit margins suggest pressure on profitability, necessitating cost management and efficiency improvements to sustain long-term financial health.
Cousins Properties (CUZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.76B
Dividend Yield4.51%
Average Volume (3M)1.53M
Price to Earnings (P/E)76.3
Beta (1Y)0.84
Revenue Growth13.07%
EPS Growth-4.94%
CountryUS
Employees306
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.09
Shares Outstanding167,967,650
10 Day Avg. Volume1,548,418
30 Day Avg. Volume1,528,223
Financial Highlights & Ratios
PEG Ratio-2.25
Price to Book (P/B)0.97
Price to Sales (P/S)5.49
P/FCF Ratio31.87
Enterprise Value/Market Cap1.74
Enterprise Value/Revenue8.98
Enterprise Value/Gross Profit13.09
Enterprise Value/Ebitda14.08
Forecast
1Y Price Target
$32.38Price Target Upside14.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Cousins Properties Business Overview & Revenue Model
Company DescriptionCousins 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.
How the Company Makes MoneyCousins Properties generates revenue primarily through leasing its commercial office spaces to tenants. The company earns rental income from long-term leases with various businesses, which are typically structured to include base rent along with additional costs such as property operating expenses and taxes. Additionally, Cousins Properties may engage in property sales or repositioning, generating capital gains. The company also benefits from strategic partnerships with developers and investors, allowing it to expand its portfolio and enhance its revenue-generating capabilities. Market demand for office spaces in targeted regions and the company’s focus on sustainable and innovative building practices further contribute to its revenue growth.
Cousins Properties Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
Cousins Properties reported strong financial results for the second quarter, exceeding earnings expectations and raising guidance. The acquisition of The Link in Dallas represents a strategic expansion into a strong market. However, the company faces challenges with occupancy declines due to major tenant move-outs and slower lease-up at the Neuhoff development. Overall, the highlights outweigh the lowlights, with strategic acquisitions and a healthy leasing pipeline pointing to future growth.Q2-2025 Updates
Positive Updates
Strong Second Quarter Results
Cousins Properties reported a strong second quarter with $0.70 per share in FFO, which was $0.01 above consensus. Same-property net operating income increased 1.2% on a cash basis and 1.6% year-to-date. Leasing remained robust with 334,000 square feet of leases completed, 80% of which were new or expansion leases. Cash rents on second-generation space increased by 10.9% in the quarter.
Acquisition of The Link
Cousins acquired The Link in Uptown Dallas for $218 million, representing a discount to replacement cost and immediately accretive to earnings. The property is 94% leased with a weighted average lease term of 9.3 years, and in-place rents are nearly $20 per square foot below current market rates.
Increased Guidance
The company raised the midpoint of its full-year 2025 FFO guidance to $2.82 per share, representing a 4.8% growth rate over last year.
Leasing Pipeline and Market Strength
The leasing pipeline remains very healthy, with the late-stage pipeline at its highest level since tracking began. Markets like Austin, Atlanta, and Charlotte show strong demand, with new-to-market activity accelerating.
Negative Updates
Occupancy Decline Due to Major Move-Outs
Occupancy levels declined due to the anticipated move-out of OneTrust at North Park in Atlanta and the expiration of Bank of America's lease in Charlotte. Occupancy is expected to decline through the third quarter before starting to recover.
Challenges at Neuhoff Development
The Neuhoff mixed-use development in Nashville has seen slower than expected lease-up of its commercial component, with stabilization now anticipated in the third quarter of 2026.
Company Guidance
During the Cousins Properties Second Quarter Conference Call, the company provided several key metrics and guidance updates. The team reported a strong performance with $0.70 per share in funds from operations (FFO), which exceeded consensus by $0.01. Same-property net operating income (NOI) rose by 1.2% on a cash basis and 1.6% year-to-date. Leasing activity was robust, with 334,000 square feet of leases completed, 80% of which were new or expansion leases. Cash rents on second-generation space increased by 10.9% during the quarter and 5.4% year-to-date. Following these results, Cousins Properties increased the midpoint of its guidance to $2.82 per share, representing a 4.8% growth over the previous year. The company also highlighted its acquisition of The Link, a lifestyle office property in Uptown Dallas, as part of its strategic growth plan. Looking forward, Cousins emphasized its focus on growing earnings, cash flow, and net asset value (NAV) by increasing occupancy, reducing capital expenditures, and investing in new opportunities while maintaining a strong balance sheet.Cousins Properties Financial Statement Overview
Summary
Cousins Properties displays a solid financial foundation with a strong balance sheet and healthy cash flows. However, declining revenue and profitability margins in the latest TTM period present challenges. The company should focus on improving operational efficiencies to enhance margins and profitability.Income Statement
Cousins Properties has shown a declining trend in revenue with the latest TTM revenue at $654.3 million compared to $856.8 million in the previous year, indicating a decrease. Gross profit margin for TTM stands at 53.35%, while net profit margin is 4.96%, showcasing moderate profitability. Both EBIT and EBITDA margins are stable but reflect a decline from previous periods, suggesting some operational challenges.75
Positive
Balance Sheet
The balance sheet remains robust with a debt-to-equity ratio of 0.62, indicating moderate leverage. Return on equity for TTM is 0.67%, showing a decrease in profitability relative to equity. The equity ratio is strong at 55.82%, highlighting a solid equity base compared to total assets.70
Positive
Cash Flow
Free cash flow has grown by 23.33% from the previous year, and operating cash flow remains healthy, with an operating cash flow to net income ratio of 12.83. The company demonstrates effective cash management, although the free cash flow to net income ratio is 5.60, indicating room for improvement in cash conversion.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 925.00M | 856.76M | 802.87M | 762.29M | 755.07M | 740.34M |
| Gross Profit | 634.71M | 576.10M | 536.44M | 503.92M | 495.61M | 489.49M |
| EBITDA | 590.02M | 536.80M | 504.18M | 479.14M | 468.49M | 466.73M |
| Net Income | 39.12M | 45.96M | 82.96M | 279.65M | 209.37M | 172.40M |
Balance Sheet | ||||||
| Total Assets | 9.05B | 8.80B | 7.63B | 7.54B | 7.31B | 7.11B |
| Cash, Cash Equivalents and Short-Term Investments | 416.84M | 7.35M | 6.05M | 5.14M | 8.94M | 4.29M |
| Total Debt | 3.53B | 3.15B | 2.51B | 2.39B | 2.29B | 2.22B |
| Total Liabilities | 4.25B | 3.93B | 3.09B | 2.89B | 2.71B | 2.61B |
| Stockholders Equity | 4.78B | 4.85B | 4.52B | 4.63B | 4.57B | 4.47B |
Cash Flow | ||||||
| Free Cash Flow | 170.84M | 147.50M | 368.36M | 22.93M | -398.33M | -268.68M |
| Operating Cash Flow | 413.74M | 400.23M | 368.36M | 365.17M | 389.48M | 351.09M |
| Investing Cash Flow | -1.15B | -1.31B | -295.74M | -334.50M | -191.07M | -132.46M |
| Financing Cash Flow | 1.15B | 906.47M | -71.72M | -35.69M | -194.38M | -230.09M |
Cousins Properties Technical Analysis
Negative
28.35
Price Trends
28.22
Positive
28.45
Negative
28.58
Negative
Market Momentum
0.03
Positive
45.10
Neutral
17.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUZ, the sentiment is Negative. The current price of 28.35 is below the 20-day moving average (MA) of 29.03, above the 50-day MA of 28.22, and below the 200-day MA of 28.58, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 17.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUZ.
Cousins Properties Risk Analysis
Cousins Properties disclosed 27 risk factors in its most recent earnings report. Cousins Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cousins Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 6.61B | 23.05 | 9.33% | 4.10% | 2.95% | ― | |
69 Neutral | 5.09B | 23.52 | 4.08% | 5.06% | 2.26% | 10.15% | |
68 Neutral | $4.76B | 76.30 | 1.30% | 4.51% | 13.07% | -4.94% | |
68 Neutral | 3.38B | 26.51 | 5.44% | 6.39% | -2.16% | -16.41% | |
59 Neutral | 4.50B | -105.64 | 0.78% | 5.17% | 15.25% | 79.18% | |
58 Neutral | 3.16B | 71.40 | 1.89% | 4.88% | -0.57% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
CUZ
Cousins Properties
28.35
0.11
0.39%
DEI
Douglas Emmett
15.56
-1.41
-8.31%
HIW
Highwoods Properties
31.30
-0.04
-0.13%
KRC
Kilroy Realty
42.65
5.67
15.33%
SLG
SL Green Realty
59.37
-7.17
-10.78%
CDP
COPT Defense Properties
29.29
-0.09
-0.31%
Cousins Properties Corporate Events
Business Operations and Strategy
Cousins Properties Highlights Growth at BofA Conference
Positive
Sep 8, 2025
On September 8, 2025, Cousins Properties provided an investor presentation at the BofA Securities Global Real Estate Conference. The presentation highlighted the company’s strategic positioning in the Sun Belt, emphasizing its focus on high-quality, amenity-rich office spaces that command premium rents and enjoy high occupancy rates. Cousins Properties is benefiting from trends such as the migration to the Sun Belt, increased in-office requirements, and a shrinking supply of new office spaces. These factors position the company for continued growth and success in the office sector.
M&A TransactionsBusiness Operations and Strategy
Cousins Properties Acquires The Link in Dallas
Positive
Jul 31, 2025
On July 31, 2025, Cousins Properties announced the acquisition of The Link, a 292,000 square foot lifestyle office property in Uptown Dallas, for $218 million. The acquisition, which closed on July 28, 2025, is part of Cousins’ strategy to expand its presence in high-growth markets, enhancing its portfolio and geographic concentration. The property is 93.6% leased with a weighted average lease term of over nine years, and the acquisition is expected to be immediately accretive to earnings, funded through a combination of excess proceeds from a senior note offering and other financial strategies.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.