A sampling of what analysts are saying about Cousins Properties, Inc.
Wachovia Capital Markets
RATING: OVERWEIGHT
TARGET PRICE: $33.39 (5/8/07)
Office portfolio results were slightly better than expected with higher sequential occupancy levels and pre-leasing at Terminus 100 Office tower in Buckhead Atlanta. Retail portfolio sequential occupancy dropped largely due to inclusion of San Jose MarketCenter (moved “into service” in Q1 2007). A slowdown in the land development business will likely cause year to year growth figures to be muted, yet impact to NAV may be less so given CUZ’s low-basis, lower-carry-costs and long-term monetization plans.
Lehman Brothers
RATING: OVERWEIGHT
TARGET PRICE: $40.00 (5/8/07)
News among the different divisions was mixed, with retail performing well, offset by further slowing of the core land business. Ahead of the call, we leave our estimates unchanged; we reiterate our overweight rating and $40 target price. The above-average FFO per share in Q1 was largely due to gains related to land leases, lot sales and termination fees that flowed through to FFO, and a tax benefit. Management spoke of the “significant” slow-down in the company’s residential lot business.
