Atlanta, GA-based Cousins Properties, Inc. (CUZ) is a Real Estate Investment Trust (REIT) involved in the acquisition, financing, development, management, and leasing of office, retail and industrial properties. CUZ controls properties throughout the US, including Atlanta, Charlotte, Austin, San Francisco, Los Angeles and Washington, DC.
We maintain our Sell rating due to macroeconomic factors. Job growth and consumer spending continue to plummet along with the US economy. CUZ has a heavy concentration of office assets in Atlanta, a market with increasing downtown and suburban office vacancies. The company also has a large development pipeline with lease-up risk from new retail projects.
To conserve cash, the company cuts its 4Q dividend by 32%. On a P/FFO [price-to-funds from operations] basis, the company is valued at an unwarranted premium to office and retail peers. On a positive note, the company has low 2009 debt maturities and plenty of cash and availability on its line to be active in acquisitions if the opportunity arises.
Read the full analyst report on CUZ
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