CUZ
Cousins Properties Incorporated
$26.50
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Mild
·
Conviction
Fair Value
Trading 12.9% below fair value
You pay
$26.50
Bear
$23.86
Fair
$30.44
Bull
$37.02
Bear
$23.86
-10.0%
$2.77 FFO × 10x
Fair
$30.44
+14.9%
$2.77 FFO × 13x
Bull
$37.02
+39.7%
$2.77 FFO × 16x
Key Value Driver
FFO/share ($2.77) × office P/FFO multiple
Implied Market Multiple
9.6x
Summary
Our base-case estimate uses P/FFO × Office REIT Multiple. We then blend that result with the average analyst price target of $29.50 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $30.44 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Dividend-based valuation: $18.47 (40% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify