CUZ
Cousins Properties Incorporated
$31.71
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Mild
·
Conviction
Overvalued
Trading 2.3% above fair value
You pay
$31.71
Bear
$24.30
Fair
$31.00
Bull
$37.70
Bear
$24.30
-23.4%
$2.77 FFO × 10x
Fair
$31.00
-2.2%
$2.77 FFO × 13x
Bull
$37.70
+18.9%
$2.77 FFO × 16x
Key Value Driver
FFO/share ($2.77) × office P/FFO multiple
Implied Market Multiple
11.4x
Summary
Our base-case estimate uses P/FFO × Office REIT Multiple. We then blend that result with the average analyst price target of $31.75 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $31.00 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