Published on 28 Apr 2023 on Zacks via Yahoo Finance

Cousins Properties (CUZ) Beats on Q1 FFO & Revenues, Ups View

Cousins Properties’ CUZ first-quarter 2023 funds from operations (FFO) per share of 65 cents beat the Zacks Consensus Estimate by a penny. It also surpassed our estimate of 63 cents. However, the figure declined from the prior-year quarter’s 67 cents.Results reflect better-than-anticipated revenues, aided by healthy leasing activity and improvement in second-generation net rent per square foot. Yet, higher same-property rental property operating expenses acted as a dampener. The company also raised its 2023 FFO per share outlook.Quarterly rental property revenues came in at $200.1 million, surpassing the Zacks Consensus Estimate of $195.5 million and our estimate of $194.4 million. Moreover, the figure increased 9.2% year over year.

Quarter in Detail

Cousins Properties executed leases for 257,838 square feet of office space in the first quarter, including 158,639 square feet of new and expansion leases. This marked 61.5% of total leasing activity.The same-property rental property revenues, on a cash basis, rose 6.1% year over year to $182.5 million. The same-property rental property operating expenses on a cash basis increased by 8% to $69.1 million in the first quarter of 2023. As a result, the same-property net operating income, on a cash basis, climbed 4.9% to $113.4 million from the prior-year period.The weighted average occupancy of the same-property portfolio was 87%, down from 87.4% as of Mar 31, 2022. Our estimate for the same was 86.5%.CUZ ended the quarter with the same-property portfolio being leased 90.6%, up from 90.5% recorded at the end of the year-ago period.The second-generation net rent per square foot (cash basis) climbed 6.1%.