CUZ
Cousins Properties Incorporated
$27.62
Real Estate Investment Trust
85%
P/FFO × Office REIT Multiple
Mild
·
Conviction
Fair Value
Trading 10.2% below fair value
You pay
$27.62
Bear
$24.10
Fair
$30.74
Bull
$37.39
Bear
$24.10
-12.8%
$2.77 FFO × 10x
Fair
$30.74
+11.3%
$2.77 FFO × 13x
Bull
$37.39
+35.4%
$2.77 FFO × 16x
Adjust Assumptions
13.0x
$
Key Value Driver
FFO/share ($2.77) × office P/FFO multiple
Implied Market Multiple
10.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$34.00
Divergence from AlphaVal
10%
Summary
At $2.77 FFO/share with a 13x office REIT multiple, the base-case value is $30.74 per share. Dividend yield: 4.6%. DDM cross-check: $18.47.
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