Everything You Should Know About the Upgrade to Buy for Cousins Properties (CUZ) Rating
Cousins Properties Upgrade: Cousins Properties (CUZ) has received a Zacks Rank #2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which could lead to an increase in its stock price.
Earnings Estimate Revisions: The Zacks rating system, which focuses on earnings estimate revisions, shows a strong correlation between these revisions and stock price movements, making it a valuable tool for investors.
Analyst Consensus: Over the past three months, the Zacks Consensus Estimate for Cousins Properties has increased by 0.7%, reflecting analysts' growing confidence in the company's earnings potential.
Investment Opportunities: The article highlights the potential for significant returns from stocks with strong earnings revisions, positioning Cousins Properties as a solid candidate for market-beating performance in the near term.
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- Bond Offering Size: Cousins Properties LP announced the pricing of $500 million in senior unsecured notes at a 4.875% interest rate, priced at 99.259% of the principal amount, with the offering expected to close on February 20, 2026, indicating the company's strong capital market capabilities.
- Clear Use of Proceeds: The net proceeds from this offering will be used to repay a portion of borrowings under its credit facility, particularly those incurred in connection with the acquisition of 300 South Tryon, thereby optimizing the company's capital structure and financial flexibility.
- Acquisition Context: The 300 South Tryon property is a 638,000 square foot trophy lifestyle office space located in Charlotte, and acquiring such premium assets enhances the company's market competitiveness and long-term revenue potential.
- Strong Underwriter Lineup: The involvement of J.P. Morgan, BofA Securities, Morgan Stanley, and PNC Capital Markets LLC as joint book-running managers for this bond offering reflects market confidence and support for the transaction.
- Strong Financial Performance: Cousins Properties reported Q4 2025 FFO of $0.71 per share and full-year FFO of $2.84, reflecting a 5.6% growth over 2024, indicating the company's stability and profitability in the market.
- Robust Leasing Activity: The company completed 700,000 square feet of leasing this quarter, marking the second-highest quarterly volume in the past four years, demonstrating success in attracting tenants and further solidifying its market position.
- Strategic Acquisition: The acquisition of 300 South Tryon in Charlotte for $317.5 million is expected to enhance the company's presence in the Uptown submarket, with the purchase price significantly below replacement cost, showcasing a strong investment opportunity.
- 2026 Outlook: Cousins introduced a 2026 FFO guidance midpoint of $2.92 per share, representing a 2.8% increase over 2025, and plans to support future investment opportunities through asset dispositions and balance sheet flexibility, reflecting confidence in future growth.
- Strong Earnings Report: Cousins Properties reported a Q4 FFO of $0.71, aligning with market expectations, while revenue reached $255.03 million, reflecting a 13.2% year-over-year increase and exceeding forecasts by $3.54 million, indicating robust performance in the market.
- Future Guidance: The company anticipates net income per share to range between $0.23 and $0.33, with FFO projected between $2.87 and $2.97 per share by December 31, 2026, providing investors with clear earnings guidance that bolsters market confidence.
- Rating Downgrade: Despite the strong earnings, analysts have downgraded Cousins Properties' rating, citing sectoral headwinds that may impact future growth, prompting investors to remain cautious and monitor market developments closely.
- Dividend Stability: Cousins Properties' dividend scorecard reflects its stability in income distribution, attracting investors seeking reliable returns, even amidst market pressures.
- Earnings Release: Cousins Properties announced its fourth quarter and full year 2025 financial results on February 5, 2026, highlighting its investment performance in high-growth markets, although specific financial metrics were not disclosed, generating market interest.
- Conference Call Scheduled: The company will hold a conference call on February 6, 2026, at 10:00 a.m. (Eastern Time) to discuss its financial results, with the call-in number being (800) 836-8184, expected to attract significant participation from investors and analysts.
- Webcast Availability: The conference call will be accessible via a webcast on Cousins' website through the “Fourth Quarter Conference Call” link, providing real-time information for investors unable to dial in, thereby enhancing transparency.
- Company Overview: Founded in 1958, Cousins Properties focuses on the development, acquisition, leasing, and management of high-quality real estate assets, aiming to create shareholder value in rapidly growing Sun Belt markets, showcasing its expertise in the REIT sector.
- Acquisition Overview: Cousins Properties has acquired the 300 South Tryon office building in Charlotte for $317.5 million, encompassing 638,000 square feet and currently 100% leased with a six-year weighted average lease term, indicating strong market demand and stable cash flows.
- Funding Sources: The acquisition will be financed through proceeds from non-core asset sales, debt financing, and the settlement of previously issued common shares, with Cousins currently under contract to sell Harborview Plaza in Tampa and a land parcel at 303 Tremont in Charlotte for a combined gross of $63.2 million, enhancing its financial flexibility.
- Market Outlook: CEO Colin Connolly highlighted that the acquisition aligns with improving market fundamentals and increasing demand for lifestyle office spaces, which will immediately accrete earnings and strengthen future cash flows, reflecting the company's strategic positioning in the Charlotte market.
- Company Background: Founded in 1958, Cousins Properties focuses on high-growth Sun Belt markets, aiming to create shareholder value through the development, acquisition, leasing, and management of high-quality real estate assets, showcasing its expertise in the REIT sector.
- Market Outlook: The outlook for cousin properties is projected to be between 0.23 and 0.33 FY EPS.
- Investment Insights: Investors are advised to monitor the performance of cousin properties closely as market conditions evolve.




