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Cousins Inks Lease Deal with FLEETCOR for Atlanta Property

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Cousins Properties Incorporated (CUZ - Free Report) is witnessing solid activity in the Buckhead sub-market in recent months and most recently, signed a lease deal with FLEETCOR Technologies, Inc. . The long-term lease is for 46,000 square feet of space at Terminus 100, which is a 660,000-square-foot office tower positioned in the Buckhead sub-market of Atlanta.  

Management noted that established technology-driven companies are largely aiding solid activity in this sub-market and specifically in the Piedmont Road corridor. Cousins Properties is not only gaining from this encouraging activity, but also recently grabbed headlines, having announced a merger agreement with TIER REIT, Inc. for combining in a 100% stock-for-stock deal that will create a Sun Belt-focused Class A office REIT, with total market capitalization of nearly $7.8 billion.

The transaction is anticipated to close in third-quarter 2019. Upon merger completion, equity ownership for Cousins and TIER stockholders will be nearly 72% and 28% of the combined company’s stock. Post merger, Cousins Properties will retain its name and ticker, and be headquartered in Atlanta, GA.   
This move will create a larger company with a combined portfolio of more than 21 million square feet spanning across the Sun Belt region, better positioning it to absorb market cycles. It will deepen Cousins Properties’ portfolio of trophy office assets in Atlanta, Austin, Charlotte, Dallas, Phoenix and Tampa, making it a leading owner in the fast-growing Sun Belt region.

Along with a complementary geographic footprint, the combined company will have a strong balance sheet, a highly pre-leased development pipeline and significant land holdings in strategic locations that provide opportunities for future development. (Read more: Cousins Properties Announces Merger With TIER REIT)

Cousins Properties presently carries a Zacks Rank #2 (Buy).

Another Top Pick

Investors can also consider another similarly-ranked stock — Boston Properties, Inc. (BXP - Free Report) from the REIT industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Properties’ FFO per share estimates for the ongoing year have been revised marginally upward to $6.93 in seven days’ time. Additionally, it has a long-term growth rate of 6.30%.

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