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Cousins Properties’ (CUZ - Free Report) first-quarter 2024 funds from operations (FFO) per share of 65 cents beat the Zacks Consensus Estimate of 63 cents.
Results reflect better-than-anticipated revenues. Although the company witnessed healthy leasing activity, higher interest expenses acted as a dampener. CUZ also revised its 2024 outlook for FFO per share.
Quarterly rental property revenues came in at $208.8 million, outpacing the Zacks Consensus Estimate of $201.8 million.
On a year-over-year basis, while FFO per share remained unchanged, rental property revenues increased 4.4%.
Quarter in Detail
Cousins Properties executed leases for 403,654 square feet of office space in the first quarter, including 286,489 square feet of new and expansion leases.
The same-property rental property revenues, on a cash basis, rose 3.6% year over year to $190.8 million. The same-property rental property operating expenses on a cash basis fell 1.1% to $69.4 million in the first quarter of 2024. As a result, the same-property net operating income, on a cash basis, climbed 6.6% to $121.4 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 88.4%, up 140 basis points from a year ago. Our estimate was pegged at 88.5%.
CUZ ended the quarter with the same-property portfolio being leased 90.8%, up from 90.6% at the end of the year-ago period.
The second-generation net rent per square foot (cash basis) climbed 5.3%.
However, interest expenses jumped 15.5% year over year to $28.9 million during the quarter. Our estimate for the metric was pegged at $27.7 million.
Balance Sheet
CUZ exited the first quarter with cash and cash equivalents of $5.5 million, down from $6 million as of Dec 31, 2023.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.25 compared with 5.13 in the year-ago quarter.
2024 Outlook Revised
Cousins Properties revised its guidance for 2024 FFO per share to the range of $2.60-$2.67 from $2.57-$2.67 estimated earlier. The Zacks Consensus Estimate for the same is presently pegged at $2.61, which is within expectations.
The increase in FFO is mainly due to higher parking revenues and termination fees.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $2.35, which beat the Zacks Consensus Estimate of $2.31. The reported figure also climbed 7.3% from the year-ago quarter.
Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth. Alexandria also narrowed its 2024 outlook.
Crown Castle (CCI - Free Report) reported first-quarter 2024 AFFO per share of $1.72, outpacing the Zacks Consensus Estimate by a penny. Results reflected better-than-anticipated revenues, with the company reporting net revenues of $1.64 billion, beating the Zacks Consensus Estimate of $1.63 billion.
However, on a year-over-year basis, AFFO per share declined 9.9% while revenues fell 7.4%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Cousins Properties (CUZ) Q1 FFO & Revenues Beat Estimates
Cousins Properties’ (CUZ - Free Report) first-quarter 2024 funds from operations (FFO) per share of 65 cents beat the Zacks Consensus Estimate of 63 cents.
Results reflect better-than-anticipated revenues. Although the company witnessed healthy leasing activity, higher interest expenses acted as a dampener. CUZ also revised its 2024 outlook for FFO per share.
Quarterly rental property revenues came in at $208.8 million, outpacing the Zacks Consensus Estimate of $201.8 million.
On a year-over-year basis, while FFO per share remained unchanged, rental property revenues increased 4.4%.
Quarter in Detail
Cousins Properties executed leases for 403,654 square feet of office space in the first quarter, including 286,489 square feet of new and expansion leases.
The same-property rental property revenues, on a cash basis, rose 3.6% year over year to $190.8 million. The same-property rental property operating expenses on a cash basis fell 1.1% to $69.4 million in the first quarter of 2024. As a result, the same-property net operating income, on a cash basis, climbed 6.6% to $121.4 million from the prior-year period.
The weighted average occupancy of the same-property portfolio was 88.4%, up 140 basis points from a year ago. Our estimate was pegged at 88.5%.
CUZ ended the quarter with the same-property portfolio being leased 90.8%, up from 90.6% at the end of the year-ago period.
The second-generation net rent per square foot (cash basis) climbed 5.3%.
However, interest expenses jumped 15.5% year over year to $28.9 million during the quarter. Our estimate for the metric was pegged at $27.7 million.
Balance Sheet
CUZ exited the first quarter with cash and cash equivalents of $5.5 million, down from $6 million as of Dec 31, 2023.
The company’s net debt-to-annualized EBITDAre ratio in the quarter was 5.25 compared with 5.13 in the year-ago quarter.
2024 Outlook Revised
Cousins Properties revised its guidance for 2024 FFO per share to the range of $2.60-$2.67 from $2.57-$2.67 estimated earlier. The Zacks Consensus Estimate for the same is presently pegged at $2.61, which is within expectations.
The increase in FFO is mainly due to higher parking revenues and termination fees.
CUZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cousins Properties Incorporated Price, Consensus and EPS Surprise
Cousins Properties Incorporated price-consensus-eps-surprise-chart | Cousins Properties Incorporated Quote
Performance of Other REITs
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported first-quarter 2024 adjusted funds from operations (AFFO) per share of $2.35, which beat the Zacks Consensus Estimate of $2.31. The reported figure also climbed 7.3% from the year-ago quarter.
Results reflected a rise in revenues, aided by decent leasing activity and rental rate growth. Alexandria also narrowed its 2024 outlook.
Crown Castle (CCI - Free Report) reported first-quarter 2024 AFFO per share of $1.72, outpacing the Zacks Consensus Estimate by a penny. Results reflected better-than-anticipated revenues, with the company reporting net revenues of $1.64 billion, beating the Zacks Consensus Estimate of $1.63 billion.
However, on a year-over-year basis, AFFO per share declined 9.9% while revenues fell 7.4%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.