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powered byCUZ (Cousins Properties)
Buy CUZ. Mizuho’s call is backed by Q2 beat and raised full-year guidance, plus clear Sunbelt leasing momentum (cash rent spreads up ~12% H1) and a 1M sq ft pipeline. The setup is a rebound story with improving fundamentals and a ~4.3% dividend while the market re-rates office landlords.
Key Risk: Sunbelt office leasing stalls again, forcing rent spreads and occupancy to roll over and making guidance lifts look temporary.
PECO (Phillips Edison)
Buy PECO. Grocery-anchored centers are the “need-to-have” retail REIT, and the thesis is supported by Q2 core FFO beat, raised guidance, ~97.5% occupancy, and limited new supply. Mizuho also expects above-average FFO growth through 2027, with a ~3.2% dividend as carry.
Key Risk: A wave of grocery-tenant weakness or lease losses (or a supply shock) drives occupancy/FFO down despite the “necessity” model.
Mizuho has refreshed its rolling conviction list of top real estate investment trusts (REITs) for the second half of 2026, pointing investors toward subsectors with proven earnings momentum.
The investment bank selected office landlord “Cousins Properties” and grocery-anchored owner “Phillips Edison & Company” as its standout picks across commercial property.
Both companies delivered Q2 earnings that topped Wall Street estimates, prompting management teams to lift full-year profit guidance.
Mizuho analysts have set price objectives for both REITs, implying meaningful upside from current levels, anchoring their thesis in strong operational execution.
These single-stock calls also arrive alongside broad tailwinds for real estate stocks, which continue to post better returns than the broader market this year.
A fundamental rebound across Sunbelt office markets underpins the case for Cousins Properties.
Analyst Vikram Malhotra maintains a $33 price target on the stock – implying about a 12% upside from recent trading levels, on top of significant year-to-date gains.
The Atlanta-based REIT manages some 20 million square feet of office space across high-growth hubs such as Austin, Dallas, and Charlotte.
Its Q2 funds from operations reached 75 cents per share on $268.5 million in revenue, exceeding estimates of 74 cents and $263.5 million – bringing enough confidence for the management to lift the lower end of its full-year guidance.
In its press release, CUZ said growth is being driven by leasing momentum, cash rent spreads up roughly 12% in first-half of this year, and a 1-million-square-foot pipeline.
Finally, balance sheet capacity supports opportunistic acquisitions, while Cousins Properties stock pays a rather lucrative 4.31% dividend yield as well.
Other Wall Street analysts also agree with Mizuho’s view on CUZ, given the consensus rating on it sits at Buy with price targets going as high as $35.
Phillips Edison stock rests on a necessity-based retail thesis: grocery-anchored centers hold demand through economic cycles.
Mizuho analyst Haendel St. Juste has a $43 price target, implying about 7% upside on top of nearly 14% rally since the start of this year.
PECO’s portfolio spans roughly 330 shopping centers anchored by grocers like Kroger and Publix, with occupancy near the sector-leading 97.5%.
Its Q2 core FFO reached 69 cents per share on $189.6 million in revenue, beating estimates of 68 cents and $187.5 million, prompting management to raise full-year guidance.
St. Juste expects above-average FFO growth through 2027 on acquisitions and limited new supply, with minimal watchlist tenant exposure. Plus, any bankruptcies would offer a chance to re-let space at higher rents,
PECO shares also currently pay a 3.2% dividend yield – while Wall Street more broadly rates the real estate investment trust at Overweight. The consensus $46 price target signals significant upside potential from here.