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Cousins Properties (CUZ) Q4 FFO & Revenues Lag Estimates

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Cousins Properties Incorporated’s CUZ fourth-quarter 2020 funds from operations (FFO) per share of 68 cents misses the Zacks Consensus Estimate by a whisker. Moreover, the reported FFO figure was lower than the prior-year quarter’s 72 cents.

Moreover, rental property revenues for the quarter were $178.9 million, lagging the Zacks Consensus Estimate of $179.6 million. Also, on a year-over-year basis, rental property revenues for the quarter slipped 5.5%.

Quarterly results reflect a decline in same-property net operating income (NOI). The company informed that its rent collection for the fourth quarter was 98.8%, including 99.2% from office tenants. In December, it collected 99.1% of its rents, including 99.4% from office tenants.

For 2020, the company reported FFO per share of $2.78, up 9.9% from the prior year’s $2.53. The reported figure, nonetheless, lagged the Zacks Consensus Estimate of $2.80. Total revenues of $721.9 million increased 14.8% year over year.

Same-property NOI, on a cash basis, for 2020, inched up 0.7% from the year-ago period.

Quarter in Detail

Cousins Properties executed leases for 387,611 square feet of office space in the December-end quarter. Same-property NOI, on a cash basis, decreased 3.3% from the year-ago quarter. As of Dec 31, 2020, 92.7% of its same-property portfolio was leased, contracting 96 basis points (bps) from the end of the third quarter.

Nonetheless, second-generation net rent per square foot (cash basis) climbed 8.9%. Weighted average occupancy for the company’s same-property portfolio of 92.4% for the quarter ended Dec 31, 2020, increased 54 bps from the prior quarter.

In the reported quarter, Cousins Properties acquired a 329,000-sq-ft office asset, The RailYard, in Charlotte for $201 million.

The company exited the fourth quarter with cash and cash equivalents of $4.3 million compared with $15.6 million recorded as of Dec 31, 2019.

Outlook

Cousins Properties expects 2021 FFO per share of $2.76-$2.86. The Zacks Consensus Estimate for the same is pegged at $2.83.

Cousins Properties Incorporated Price, Consensus and EPS Surprise

Cousins Properties Incorporated Price, Consensus and EPS Surprise
Cousins Properties Incorporated Price, Consensus and EPS Surprise

Cousins Properties Incorporated price-consensus-eps-surprise-chart | Cousins Properties Incorporated Quote

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITS

Equinix’s EQIX fourth-quarter 2020 adjusted FFO per share was $5.76, beating the Zacks Consensus Estimate of $5.65. The figure also improved 4.5% from the year-ago quarter’s $5.51.

Healthpeak Properties, Inc. PEAK reported fourth-quarter 2020 FFO as adjusted per share of 41 cents, surpassing the Zacks Consensus Estimate of 40 cents. However, the reported figure compared unfavorably with FFO as adjusted of 44 cents per share recorded in the prior-year quarter.

Highwoods Properties, Inc.’s HIW fourth-quarter 2020 FFO per share of 87 cents missed the Zacks Consensus Estimate of 88 cents. Also, the reported figure declined 4.4% from 91 cents recorded in the year-ago period.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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