Cousins Properties Receives Buy Rating on Strong Q1 Performance and Positive Outlook
In a report released yesterday, John Kim from BMO Capital maintained a Buy rating on Cousins Properties (CUZ – Research Report), with a price target of $28.00.
John Kim has given his Buy rating due to a combination of factors reflecting Cousins Properties’ strong performance and promising outlook. Firstly, the company’s first quarter of 2024 showcased a beat on funds from operations (FFOps) expectations and provided an upward guidance revision, which was supported by a notable increase in cash same-store net operating income (SSNOI) of 6.6%. This increase was attributed to improved parking revenue and higher occupancy rates. The forward-looking potential for occupancy growth appears robust, despite a moderate uptick in lease expirations in the subsequent year. Kim also noted the positive impact of Oracle’s decision to locate its global headquarters in Nashville, which is expected to bolster leasing activity in the Neuhoff area where Cousins Properties is well-represented.
In addition to the operational metrics, there were several key positives that informed Kim’s assessment. Cousins Properties reported a solid first-quarter leasing activity, marking the best first quarter performance since 2019, which led to an increase in occupancy. The Neuhoff development’s leasing status improved and is poised to benefit from its proximity to Oracle’s headquarters, despite a slight rise in projected costs. There was a slight improvement in 2024 lease expirations and an acceptable increase in 2025 expirations. Furthermore, the company’s consistent cash NOI growth bolsters the confidence in its ability to sustain and enhance shareholder value, which underpins the Buy rating.
Kim covers the Real Estate sector, focusing on stocks such as Prologis, Empire State Realty, and AvalonBay. According to TipRanks, Kim has an average return of 0.7% and a 48.79% success rate on recommended stocks.
In another report released on April 17, Barclays also maintained a Buy rating on the stock with a $25.00 price target.
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Cousins Properties (CUZ) Company Description:
Cousins Properties, Inc. engages in the development, acquisition, leasing and management of real estate assets. It invests in urban office towers located in Sunbelt markets. It operates through the following geographical segments: Atlanta, Charlotte, Austin, Phoenix, Tampa, Orlando and Houston. The company was founded by Thomas G. Cousins in 1958 and is headquartered in Atlanta, GA.
