Cousins Properties (CUZ) reported 1Q FFO of $0.15 per share, $0.10 lower than our estimates due to higher expenses and lower top line revenue. CUZ has a concentration of assets in Atlanta and Dallas, two markets with increasing downtown and suburban office vacancies.
In addition, the company s retail portfolio continues to struggle. While the company’s office portfolio performed relatively
well in the 1st quarter, we think operations will deteriorate.
The dividend was cut 32% in an effort to conserve cash. Another cut could be coming in 2009 if conditions do not improve.Zacks Investment Research
