Published on 10 Feb 2023 on Zacks via Yahoo Finance

Cousins Properties' (CUZ) Q4 FFO Beats, Revenues Rise Y/Y

Cousins Properties’ CUZ fourth-quarter 2022 FFO per share of 66 cents beat the Zacks Consensus Estimate by a penny. However, the figure declined 4.3% from the prior-year quarter’s 69 cents. Our estimate for FFO per share was pegged at 65 cents.Results reflect year-over-year growth in the top line aided by healthy leasing activity and improvement in second-generation net rent per square foot. Yet, higher same-property rental property operating expenses and lower occupancy levels were headwinds in the quarter.Quarterly rental property revenues, although missing the Zacks Consensus Estimate by just 0.06%, increased 3.6% year over year to $193.6 million. We estimated the same to be $191.3 million.In 2022, Cousins Properties reported FFO per share of $2.72, outpacing the Zacks Consensus Estimate of $2.71. The figure, however, fell 1.1% from the prior year’s $2.75. Our estimate was pegged at $2.71. Full-year rental property revenues of $753.5 million increased 1.9% year over year. The reported figure missed the consensus mark by a whisker. We estimated the same to be $751.3 million.

Quarter in Detail

Cousins Properties executed leases for 632,379 square feet of office space in the December quarter, including 300,300 square feet of new and expansion leases. This marked 52.5% of total leasing activity.The same-property rental property revenues, on a cash basis, rose 2.8% year over year to $160.4 million. The same-property rental property operating expenses on a cash basis increased 3.3% to $59.3 million in fourth-quarter 2022. The same-property NOI, on a cash basis, climbed 2.5% to $101.2 million from the prior-year period.The weighted average occupancy of the same-property portfolio was 86.2%, down from 88.5% as of Dec 31, 2021. Our estimate for the same was 86.3%.CUZ ended the quarter with the same-property portfolio being leased 90.1%, down from 90.8% recorded at the end of the year-ago period.The second-generation net rent per square foot (cash basis) climbed 7.3%.During the reported quarter, CUZ closed a $400 million Term Loan that matures in March 2025 and has four six-month extension options.