Cousins Properties: The 5.5% Dividend Yield Is Not A Buy

Pacifica Yield
12.47K Followers
(6min)

Summary

  • Cousins Properties is paying out a 5.5% dividend yield that is 215% covered by 2025 FFO per share.
  • The REIT's focus on Class A office properties has so far insulated its occupancy rates from weakness in Austin, its largest market by net operating income.
  • The current dividend yield is not attractive against underlying Austin weakness and does not provide a substantial spread above the US 10-year Treasury yield.
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Cousins Properties (NYSE:CUZ) was a clear buy when I first covered the Sun Belt office-focused REIT in 2023. The yield had swelled to just under 7% even as the dividend was comprehensively covered and management was ramping up plans to invest

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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