Mizuho's analysis indicates that both Cousins Properties and Phillips Edison & Company are well-positioned for growth within the real estate sector. Cousins Properties, which focuses on office spaces in Sunbelt markets, reported a second-quarter funds from operations (FFO) of 75 cents per share, exceeding expectations, and raised its full-year guidance.
Analyst Vikram Malhotra notes that the company could benefit from a recovery in office demand and has a strong leasing pipeline. He set a price target of $33, suggesting a 12% upside from its recent closing price. On the other hand, Phillips Edison & Company, which operates shopping centers primarily anchored by grocery stores, also beat earnings expectations with a core FFO of 69 cents per share.
Analyst Haendel St. Juste anticipates above-average FFO growth for the company, supported by high occupancy rates and limited exposure to financially troubled tenants. His price target of $43 implies a 7% upside. Overall, Mizuho's recommendations reflect confidence in these REITs' ability to navigate current market conditions and capitalize on growth opportunities