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Top Reasons Why Cousins Properties Should Be Included in Your Portfolio Today

Top Reasons Why Cousins Properties Should Be Included in Your Portfolio Today

101 finance101 finance2026/03/09 15:39
By:101 finance

Cousins Properties: Performance Overview and Investment Appeal

Cousins Properties (CUZ) owns a portfolio of top-tier office buildings located in rapidly expanding Sun Belt cities. The company's focus on premium office spaces with superior amenities has attracted increased leasing interest, as more tenants seek high-quality work environments. With a broad mix of tenants, Cousins Properties benefits from reliable income streams. Their ongoing efforts to recycle capital and a strong financial position further enhance their ability to adapt and grow.

In the most recent quarter, this office-focused real estate investment trust (REIT) reported funds from operations (FFO) per share of $0.71, matching analyst expectations and representing a 2.9% increase from the previous year.

The quarter saw robust leasing momentum, though the average occupancy rate dipped and interest expenses rose, which tempered overall growth.

Analyst sentiment remains optimistic for this Zacks Rank #2 (Buy) stock. Over the past month, the consensus estimate for CUZ’s 2026 FFO per share has edged up by one cent to $2.93.

Despite these positives, the company’s share price has fallen 7.2% in the last three months, while the broader REIT sector has grown by 5.5%.

Zacks Investment Research

Image Source: Zacks Investment Research

Why Cousins Properties Stands Out

  • Exceptional Portfolio and Tenant Diversity: Cousins Properties boasts a collection of Class A office buildings concentrated in the Sun Belt, a region experiencing strong population and business growth. This migration trend, combined with a business-friendly climate, has spurred corporate relocations and expansions, fueling demand for office space. In 2025, the company achieved a 3.5% increase in second-generation net rent per square foot on a cash basis.
  • Resilient Revenue Streams: The company’s tenant base spans various industries, reducing reliance on any single sector and supporting stable revenue through different market cycles.
  • Leasing Recovery: Demand for Cousins Properties’ well-located, high-quality offices has rebounded, as evidenced by the execution of 167 leases covering 2.1 million square feet in 2025, with an average lease term of 8.5 years.
  • Strategic Growth in the Sun Belt: Continued population inflows and major investments by office tenants in the Sun Belt position Cousins Properties’ premium office assets to benefit from future growth.
  • Capital Recycling and Portfolio Enhancement: The company’s strategy of selling lower-growth assets and acquiring trophy properties has strengthened its portfolio. Notably, in February 2026, Cousins Properties purchased 300 South Tryon, a 638,000-square-foot property, for $317.5 million. Between 2020 and 2025, acquisitions totaled 3.7 million square feet for $1.84 billion.
  • Financial Strength: Cousins Properties maintains a healthy balance sheet with significant liquidity, allowing it to capitalize on market opportunities. At the end of 2025, the company held $5.7 million in cash and had a net debt-to-annualized EBITDAre ratio of 5.30. With $116 million drawn on a $1 billion credit facility, the company is well-positioned to pursue further growth.

Other Promising REIT Stocks

Investors may also want to consider other highly rated REITs, such as Digital Realty Trust (DLR) and W.P. Carey (WPC), both currently holding a Zacks Rank #2.

  • The 2026 FFO per share estimate for Digital Realty Trust stands at $7.96, suggesting a 7.7% year-over-year increase.
  • For W.P. Carey, the full-year FFO per share is projected at $5.16, representing a 3.8% rise from the prior year.

Note: All earnings figures referenced are based on funds from operations (FFO), a key metric for evaluating REIT performance.

5 Stocks with the Potential to Double

Zacks experts have identified five stocks they believe could gain 100% or more in the next year. While not every pick will be a winner, past selections have delivered impressive returns of 112%, 171%, 209%, and even 232%.

Many of these opportunities remain largely unnoticed by Wall Street, offering investors the chance to get in early.

For the latest stock recommendations from Zacks Investment Research, you can download the report on the 7 Best Stocks for the Next 30 Days.

Free Stock Analysis Reports

  • Cousins Properties Incorporated (CUZ)
  • Digital Realty Trust, Inc. (DLR)
  • W.P. Carey Inc. (WPC)

This article was originally published by Zacks Investment Research.

Zacks Investment Research

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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