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Cousins Properties: More Or Less At Fair Value

Mar. 06, 2021 2:04 PM ETCousins Properties Incorporated (CUZ)1 Comment


  • Cousins Properties has proven itself to be an attractive growth prospect over the years.
  • The business is certainly not cheap, but it's not overvalued by any means.
  • In the long run it could do very well for investors, though it's important to temper expectations appropriately.
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Some investors who buy into the REIT space like to be able to focus on a particular niche. One example would be office REITs. But the opportunity to specify the kind of investment that you are looking for does not stop there. Some firms also provide an emphasis on a particular region. One firm that does just this is Cousins Properties Incorporated (NYSE:CUZ). By buying into Cousins, investors had the opportunity to own a REIT that focuses not only on office properties, but on office properties that are located in the Sun Belt. At this point in time, Cousins does not appear to be a particularly cheap company for investors to buy into, but it doesn't look to be overvalued either. On the whole, for investors interested in the space an interested in a company that has demonstrated consistent attractive growth, Cousins may be a reasonable prospect to buy into.

A look at Cousins

Cousins has a fairly large footprint. In all, the company owns more than 20 million square feet of space. 25% of its portfolio is under five years old, making these assets very new. In addition, the firm has another 1.5 million square feet of space in its development pipeline, 77% of which already is leased despite not being completed. Management also boasts a land bank at its disposal that amounts to 5.2 million square feet that could serve as additional development. Geographically, a lot of the company's business comes from a few specific areas. 35% of its NOI, or net operating income, comes from the 7.2 million square feet of properties leased out in Atlanta, GA. 27% comes from the 4.4 million square feet located in Austin, Texas. And 12% comes from its 2.6 million square feet located in Charlotte, NC. Across its entire portfolio, I counted 38 different properties. However, many of its properties have multiple buildings on them. The size of the properties also vary significantly. This smallest comes in at just 44,000

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This article was written by

Daniel Jones profile picture

Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

What Mr. Jones fails to mention is that three very large long-term investors own about 30% of the stock. They are Vanguard, BlackRock, and Principal Global and that has been the stable situation for many years. I’ll believe those three have performed analyses even more thoroughly than Mr. Jones and have regular contact with the outstanding management. To me, this is a very important fact ignored by all pundits on Seeking Alpha. My CUZ shares are not for sale.
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