Cousins Properties Inc (CUZ) 8-K Material Event Wed Feb 07 2018



Forward-Looking Statements	3
Earnings Release	4
Condensed Consolidated Statements of Operations	6
Condensed Consolidated Balance Sheets	7
Key Performance Metrics	8
Funds From Operations - Summary	11
Funds From Operations - Detail	12
Portfolio Statistics	15
Same Property Performance	17
Office Leasing Activity	19
Office Lease Expirations	20
Top 20 Office Tenants	22
Tenant Industry Diversification	23
Investment Activity	24
Development Pipeline	26
Land Inventory	27
Debt Schedule	28
Non-GAAP Financial Measures - Calculations and Reconciliations	31
Non-GAAP Financial Measures - Discussion	37



Cousins Properties Incorporated		Q4 2017 Supplemental Information



FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2017 and as itemized herein. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as, our business and financial strategy; future financing; future acquisitions and dispositions of operating assets; future acquisitions of land; future development and redevelopment opportunities; future dispositions of land and other non-core assets; future issuances and repurchases of common stock; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; the impact of the transactions involving us, Parkway Properties, Inc. ("Parkway") and Parkway, Inc. ("New Parkway"), including future financial and operating results, plans, objectives, expectations and intentions; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.

Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the availability and terms of capital; the ability to refinance or repay indebtedness as it matures; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions, investments, or dispositions; the potential dilutive effect of common stock or operating partnership unit issuances; the availability of buyers and pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Charlotte, Austin, and Phoenix where we have high concentrations of our lease revenue; changes to our strategy with regard to land and other non-core holdings that require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, and the risk of declining leasing rates; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; competition from other developers or investors; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements; risks associated with litigation resulting from the transactions with Parkway and from liabilities or contingent liabilities assumed in the transactions with Parkway; risks associated with any errors or omissions in financial or other information of Parkway that has been previously provided to the public; potential changes to state, local, or federal regulations applicable to our business; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; potential changes to the tax laws impacting REITs and real estate in general; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by the Company.

The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise, except as required under U.S. federal securities laws.



Cousins Properties Incorporated	3	Q4 2017 Supplemental Information



EARNINGS RELEASE

COUSINS PROPERTIES REPORTS RESULTS

FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017

Highlights


•	Net income available to common stockholders for the fourth quarter was $0.07 per share.


•	Funds From Operations for the fourth quarter was $0.15 per share.


•	Same property net operating income on a cash basis increased 4.2% during the fourth quarter.


•	Legacy Parkway same property net operating income on a cash basis increased 5.7% during the fourth quarter.


•	Second generation net rent per square foot on a cash basis increased 6.3% during the fourth quarter.


•	Executed 943,022 square feet of office leases during the fourth quarter.


•	Sold the three-property downtown Orlando portfolio for $208.1 million.


•	Sold the Company's 20% interest in Courvoisier Centre in Miami in a transaction that valued the Company's interest at $33.9 million.


•	Subsequent to quarter end, the Company:


◦	Completed the development of 864 Spring Street, Phase One of NCR's world headquarters in midtown Atlanta.


◦	Closed a new $1 billion unsecured revolving credit facility that replaced the existing $500 million facility.


◦	Announced 300 Colorado, a 100% leased, 309,000 square foot office tower development in downtown Austin.

ATLANTA (February 7, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2017.

“It was a solid quarter highlighted by several sizable transactions that we believe will generate significant value for our shareholders.” said Larry Gellerstedt, Chairman and Chief Executive Officer of Cousins Properties. “Looking forward, we are excited about the prospects in 2018 and beyond. We have built a unique and compelling company with an outstanding balance sheet that is in a strong position to take advantage of opportunities as they arise.”

Financial Results

Net income available to common stockholders was $31.4 million, or $0.07 per share, for the fourth quarter of 2017, compared with $36.9 million, or $0.10 per share, for the fourth quarter of 2016. Net income available to common stockholders was $216.3 million, or $0.52 per share, for the year ended December 31, 2017, compared with $79.1 million, or $0.31 per share, for the year ended December 31, 2016.

Funds From Operations ("FFO") was $64.2 million, or $0.15 per share, for the fourth quarter of 2017, compared with $27.4 million, or $0.07 per share, for the fourth quarter of 2016. FFO was $259.9 million, or $0.61 per share, for the year ended December 31, 2017, compared with $160.6 million, or $0.63 per share, for the year ended December 31, 2016.



Cousins Properties Incorporated	4	Q4 2017 Supplemental Information



EARNINGS RELEASE

2018 FFO Guidance

For the year ending December 31, 2018, the Company expects to report net income in the range of $0.15 to $0.19 per share and FFO in the range of $0.59 to $0.63 per share. This guidance reflects management's view of current and future market conditions, as well as the earnings impact of events referenced in this release and corresponding conference call.

2018 FFO guidance includes the following assumptions:


•	Same property net operating income growth of 2.0% to 4.0% on a GAAP basis.


•	Same property net operating income growth of 3.5% to 5.5% on a cash basis.


•	Fee and other income of $10 million to $12 million. Guidance does not include potential termination fees.


•	General and administrative expenses of $24 million to $26 million, net of capitalized salaries.


•	Interest and other expenses of $46 million to $48 million, net of capitalized interest.


•	No property acquisition or disposition activity.


•	No new development projects except those disclosed herein.


•	GAAP straight-lined rental revenue of $26.5 million to $28.5 million.


•	Above and below market rental revenue of $6.5 million to $8.5 million.

A reconciliation of projected net income per share to projected FFO per share is provided as follows:



	Full Year 2018 Range
	Low		High
Net income per share	$	0.15	$	0.19
Add: Real estate depreciation and amortization	0.44		0.44
Funds From Operations per share	$	0.59	$	0.63

The Company's guidance is provided for information purposes based on current plans and assumptions and is subject to change.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 8, 2018, to discuss the results of the quarter and year ended December 31, 2017. The number to call for this interactive teleconference is (877) 247-1056.

A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10115599. The live webcast and replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Cousins Properties Fourth Quarter 2017 Conference Call” link on the Investor Relations page.

Acting through its operating partnership Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.



Cousins Properties Incorporated	5	Q4 2017 Supplemental Information



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016
Revenues:
Rental property revenues	$	109,942		$	111,432		$	446,035		$	249,814
Fee income	2,245			2,379			8,632			8,347
Other	1,925			481			11,518			1,050
	114,112			114,292			466,185			259,211
Expenses:
Rental property operating expenses	40,167			41,456			163,882			96,908
Reimbursed expenses	860			796			3,527			3,259
General and administrative expenses	5,530			8,290			27,523			25,592
Interest expense	7,673			10,089			33,524			26,650
Depreciation and amortization	44,199			48,145			196,745			97,948
Acquisition and transaction costs	162			20,633			1,661			24,521
Other	733			5,205			1,796			5,888
	99,324			134,614			428,658			280,766
Gain (loss) on extinguishment of debt	—			(5,180		)	2,258			(5,180		)
Income (loss) from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties	14,788			(25,502		)	39,785			(26,735		)
Income from unconsolidated joint ventures	3,753			5,418			47,115			10,562
Income (loss) from continuing operations before gain on sale of investment properties	18,541			(20,084		)	86,900			(16,173		)
Gain on sale of investment properties	13,330			63,169			133,059			77,114
Income from continuing operations	31,871			43,085			219,959			60,941
Income (loss) from discontinued operations	—			(5,198		)	—			19,163
Net income	31,871			37,887			219,959			80,104
Net income attributable to noncontrolling interests	(503		)	(995		)	(3,684		)	(995		)
Net income available to common stockholders	$	31,368		$	36,892		$	216,275		$	79,109
Per common share information — basic and diluted:
Income from continuing operations for common stockholders	$	0.07		$	0.11		$	0.52		$	0.24
Income from discontinued operations for common stockholders	—			(0.01		)	—			0.07
Net income available to common stockholders	$	0.07		$	0.10		$	0.52		$	0.31
Weighted average shares — basic	420,021			383,654			415,610			253,895
Weighted average shares — diluted	427,288			391,413			423,297			256,023



Cousins Properties Incorporated	6	Q4 2017 Supplemental Information



CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	December 31, 2017			December 31, 2016
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $275,977 and $215,856 in 2017 and 2016, respectively	$	3,332,619		$	3,432,522
Projects under development	280,982			162,387
Land	4,221			4,221
	3,617,822			3,599,130

Cash and cash equivalents	148,929			35,687
Restricted cash	56,816			15,634
Notes and accounts receivable, net of allowance for doubtful accounts of $535 and $1,167 in 2017 and 2016, respectively	14,420			27,683
Deferred rents receivable	58,158			39,464
Investment in unconsolidated joint ventures	101,414			179,397
Intangible assets, net of accumulated amortization of $104,931 and $53,483 in 2017 and 2016, respectively	186,206			245,529
Other assets	20,854			29,083
Total assets	$	4,204,619		$	4,171,607
Liabilities:
Notes payable	$	1,093,228		$	1,380,920
Accounts payable and accrued expenses	137,909			109,278
Deferred income	37,383			33,304
Intangible liabilities, net of accumulated amortization of $28,960 and $12,227 in 2017 and 2016, respectively	70,454			89,781
Other liabilities	40,534			44,084
Total liabilities	1,379,508			1,657,367
Commitments and contingencies
Equity:
Stockholders' investment:
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2017 and 2016	6,867			6,867
Common stock, $1 par value, 700,000,000 shares authorized, 430,349,620 and 403,746,938 shares issued in 2017 and 2016, respectively	430,350			403,747
Additional paid-in capital	3,604,776			3,407,430
Treasury stock at cost, 10,329,082 shares in 2017 and 2016	(148,373		)	(148,373		)
Distributions in excess of cumulative net income	(1,121,647		)	(1,214,114		)
Total stockholders' investment	2,771,973			2,455,557
Nonredeemable noncontrolling interests	53,138			58,683
Total equity	2,825,111			2,514,240
Total liabilities and equity	$	4,204,619		$	4,171,607



Cousins Properties Incorporated	7	Q4 2017 Supplemental Information



KEY PERFORMANCE METRICS



	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Property Statistics
Consolidated Operating Properties	12		11		11		11		25		25		26		26		26		23		23
Consolidated Rentable Square Feet (in thousands)	12,122		11,993		11,993		11,993		13,024		13,024		13,249		12,477		12,466		11,428		11,428
Unconsolidated Operating Properties	6		6		6		6		8		8		7		5		6		5		5
Unconsolidated Rentable Square Feet (in thousands)	3,434		3,435		3,435		3,435		3,999		3,999		3,774		2,988		3,456		3,113		3,113
Total Operating Properties	18		17		17		17		33		33		33		31		32		28		28
Total Rentable Square Feet (in thousands)	15,556		15,428		15,428		15,428		17,023		17,023		17,023		15,465		15,922		14,541		14,541

Office Leasing Activity (1)
Net Leased during the period (square feet in thousands)	2,972		220		402		971		761		2,354		571		341		335		943		2,190
Net Rent (per square foot)	$18.30		$23.55		$22.73		$23.51		$26.32		$24.52		$26.10		$28.58		$26.57		$32.73		$29.41
Tenant improvements, leasing commissions, and free rent (per square foot)	(3.64)		(6.31)		(7.08)		(6.18)		(6.08)		(6.35)		(7.44)		(7.42)		(5.84)		(6.48)		(6.77)
Net Effective Rent (per square foot)	$14.66		$17.24		$15.65		$17.33		$20.24		$18.17		$18.66		$21.16		$20.73		$26.25		$22.64
Change in Second Generation Net Rent	36.7	%	18.9	%	17.2	%	27.9	%	18.7	%	20.0	%	15.8	%	28.5	%	16.9	%	19.7	%	19.6	%
Change in Cash-Basis Second Generation Net Rent	19.8	%	1.8%		4.3	%	9.1	%	14.7	%	10.3	%	3.3	%	13.5	%	7.3	%	6.3	%	6.9	%

Same Property Information (2)
Percent Leased (period end)	91.6	%	90.3	%	90.7	%	91.2	%	91.8	%	91.8	%	92.1	%	93.9	%	92.9	%	92.6	%	92.6	%
Weighted Average Occupancy	90.7	%	89.4	%	89.2	%	89.5	%	89.4	%	89.4	%	89.9	%	90.7	%	89.1	%	87.7	%	89.4	%
Change in Net Operating Income (over prior year period)	3.3	%	4.3	%	1.4	%	3.6	%	4.4	%	6.1	%	5.5	%	6.8	%	1.3	%	3.6	%	4.4	%
Change in Cash-Basis Net Operating Income (over prior year period)	7.3	%	8.6	%	3.9	%	4.3	%	7.1	%	8.4	%	5.4	%	8.6	%	2.0	%	4.2	%	5.3	%

Development Pipeline
Estimated Project Costs (in thousands) (3)	$261,500		$326,300		$340,200		$506,200		$512,200		$512,200		$529,200		$463,500		$402,000		$490,500		$490,500
Estimated Project Costs (3) / Total Undepreciated Assets	7.6	%	9.5	%	9.6	%	13.7	%	10.5	%	10.5	%	10.6	%	9.6	%	8.1	%	9.9	%	9.9	%

Market Capitalization (4)
Common Stock Price (period end)	$9.43		$10.38		$10.40		$10.44		$8.51		$8.51		$8.27		$8.79		$9.34		$9.25		$9.25
Common Shares/Units Outstanding (period end in thousands)	211,513		210,107		210,171		210,170		401,596		401,596		426,823		426,942		426,995		426,995		426,995
Equity Market Capitalization (in thousands)	$1,994,568		$2,180,911		$2,185,778		$2,194,175		$3,417,582		$3,417,582		$3,529,826		$3,752,820		$3,988,133		$3,949,704		$3,949,704
Debt (in thousands)	947,017		992,241		999,999		1,112,322		1,632,270		1,632,270		1,498,044		1,205,632		1,286,252		1,262,523		1,262,523
Total Market Capitalization (in thousands)	$2,941,585		$3,173,152		$3,185,777		$3,306,497		$5,049,852		$5,049,852		$5,027,870		$4,958,452		$5,274,385		$5,212,227		$5,212,227

Credit Ratios (4)
Net Debt/Total Market Capitalization	32.1	%	31.1	%	31.4	%	30.7	%	31.6	%	31.6	%	29.1	%	24.0	%	23.2	%	21.4	%	21.4	%
Net Debt/Total Undepreciated Assets	27.4	%	28.6	%	28.3	%	27.5	%	32.8	%	32.8	%	29.4	%	24.7	%	24.7	%	22.5	%	22.5	%
Net Debt/Annualized EBITDA	3.99		4.63		4.51		4.34		5.22		5.22		4.49		3.93		4.31		3.75		3.75
Fixed Charges Coverage	4.84		4.49		4.43		4.46		5.04		4.63		5.13		5.49		5.82		6.01		5.58



Cousins Properties Incorporated	8	Q4 2017 Supplemental Information



KEY PERFORMANCE METRICS



	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Dividend Information (4)
Common Dividend per Share (5)	$0.32		$0.08		$0.08		$0.08		$0.06		$0.30		$0.06		$0.06		$0.06		$0.06		$0.24
FFO Payout Ratio	35.9	%	38.9	%	38.8	%	36.2	%	85.9	%	46.1	%	37.5	%	38.0	%	40.4	%	39.3	%	38.8	%
FAD Payout Ratio	61.4	%	55.9	%	61.7	%	58.3	%	61.1	%	59.3	%	58.2	%	54.4	%	69.9	%	69.5	%	62.2	%

Operations Ratios (4)
Annualized General and Administrative Expenses/Total Undepreciated Assets	0.49	%	0.96	%	0.53	%	0.47	%	0.68	%	0.53	%	0.50	%	0.72	%	0.58	%	0.45	%	0.56	%

Additional Information (4)
Straight Line Rental Revenue	$20,009		$3,595		$3,434		$3,449		$8,489		$18,967		$9,608		$7,826		$6,825		$6,714		$30,973
Above and Below Market Rents Amortization	$7,981		$1,834		$1,854		$1,907		$1,502		$7,097		$1,602		$1,929		$1,852		$1,838		$7,221
Second Generation Capital Expenditures	$54,214		$7,904		$13,166		$13,968		$11,838		$46,876		$10,971		$7,569		$15,949		$18,996		$53,485

(1) See Office Leasing Activity on page 19 for additional detail and explanations.

(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 17 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 35 for additional information.

(3) Represents Cousins' share of estimated project costs. See Development Pipeline on page 26 for additional detail.

(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.

(5) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.



Cousins Properties Incorporated	9	Q4 2017 Supplemental Information



KEY PERFORMANCE METRICS

(1) Office properties only.

Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.



Cousins Properties Incorporated	10	Q4 2017 Supplemental Information



FUNDS FROM OPERATIONS - SUMMARY (1)



	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017

Net Operating Income	$	241,232		$	59,513		$	59,008		$	61,621		$	80,139		$	260,281		$	80,167		$	80,115		$	75,815		$	77,109		$	313,206
Land Sales Less Cost of Sales	3,905			—			—			—			3,770			3,770			—			63			4			—			67
Fee Income	7,297			2,199			1,824			1,945			2,379			8,347			1,936			1,854			2,597			2,245			8,632
Other Income	2,451			1,121			280			287			3,837			5,525			6,889			5,304			1,634			2,164			15,991
Reimbursed Expenses	(3,430		)	(870		)	(798		)	(795		)	(796		)	(3,259		)	(865		)	(907		)	(895		)	(860		)	(3,527		)
General and Administrative Expenses	(16,918		)	(8,243		)	(4,691		)	(4,368		)	(8,290		)	(25,592		)	(6,182		)	(8,618		)	(7,193		)	(5,530		)	(27,523		)
Interest Expense	(38,178		)	(9,421		)	(9,360		)	(9,748		)	(12,566		)	(41,095		)	(12,066		)	(10,444		)	(9,363		)	(9,509		)	(41,382		)
Other Expenses	(1,941		)	(465		)	(2,640		)	(2,175		)	(40,704		)	(45,984		)	(2,391		)	(542		)	196			(953		)	(3,690		)
Depreciation and Amortization of Non-Real Estate Assets	(1,669		)	(377		)	(335		)	(328		)	(325		)	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)
FFO (1)	$	192,749		$	43,457		$	43,288		$	46,439		$	27,444		$	160,628		$	67,037		$	66,360		$62,334			$	64,169		$	259,900
Weighted Average Shares - Diluted	215,979			210,974			210,362			210,326			391,413			256,023			411,186			427,180			427,300			427,288			423,297
FFO per Share (1)	$	0.89		$	0.21		$	0.21		$	0.22		$	0.07		$	0.63		$	0.16		$	0.16		$	0.15		$	0.15		$	0.61

(1) See pages 31 and 34 for reconciliations of Funds from Operations to net income available to common shareholders.



Cousins Properties Incorporated	11	Q4 2017 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017

Net Operating Income
Consolidated Properties
Hearst Tower	$	—	$	—	$	—	$	—	$	5,957	$	5,957	$	6,356	$	6,370	$	6,302	$	7,158	$	26,186
Hayden Ferry (2)	—		—		—		—		3,881		3,881		5,209		5,307		5,466		5,968		21,950
Corporate Center (2)	—		—		—		—		5,005		5,005		4,761		5,374		5,308		5,446		20,889
Northpark (2)	22,400		5,607		5,097		5,599		5,841		22,144		5,410		5,130		4,945		5,021		20,506
Fifth Third Center	14,956		4,238		4,349		4,451		4,463		17,501		4,842		4,681		4,772		4,989		19,284
Promenade	13,985		3,740		3,419		3,839		3,557		14,555		4,173		4,407		4,184		3,991		16,755
San Jacinto Center	—		—		—		—		3,456		3,456		4,038		4,207		3,918		3,906		16,069
One Eleven Congress	—		—		—		—		3,256		3,256		3,713		3,735		4,172		3,526		15,146
Colorado Tower	6,768		2,724		3,064		3,221		3,399		12,408		3,383		3,352		3,344		3,478		13,557
One Buckhead Plaza	—		—		—		—		2,817		2,817		3,097		2,806		3,071		2,760		11,734
3344 Peachtree	—		—		—		—		3,505		3,505		3,235		2,884		2,705		2,085		10,909
816 Congress Avenue	8,526		2,468		2,555		2,514		2,363		9,900		2,694		2,641		2,766		2,797		10,898
NASCAR Plaza	—		—		—		—		2,507		2,507		2,477		2,394		2,609		2,709		10,189
3350 Peachtree	—		—		—		—		2,006		2,006		2,264		2,288		2,153		1,968		8,673
Tempe Gateway	—		—		—		—		1,966		1,966		2,008		2,136		1,964		1,971		8,079
3348 Peachtree	—		—		—		—		1,541		1,541		1,491		1,491		1,657		1,507		6,146
Two Buckhead Plaza	—		—		—		—		1,369		1,369		1,321		1,337		1,318		1,806		5,782
The Pointe	—		—		—		—		1,227		1,227		1,146		1,146		1,069		1,207		4,568
Meridian Mark Plaza	3,777		908		857		954		955		3,674		989		997		979		1,116		4,081
111 West Rio	—		—		—		—		—		—		—		1,396		1,236		1,412		4,044
Harborview Plaza	—		—		—		—		898		898		930		931		1,035		1,074		3,970
Research Park V	—		—		144		288		412		844		359		916		874		827		2,976
8000 Avalon	—		—		—		—		—		—		—		—		80		353		433
NCR	—		—		—		—		—		—		—		—		—		50		50
Other (3)	43,287		7,864		7,443		7,587		9,593		32,487		7,095		6,580		2,954		2,650		19,279
Subtotal - Consolidated	113,699		27,549		26,928		28,453		69,974		152,904		70,991		72,506		68,881		69,775		282,153

Unconsolidated Properties (4)
Terminus 100	7,268		1,872		1,978		1,899		1,837		7,586		1,912		1,906		1,829		1,851		7,498
Gateway Village (2)(5)	1,208		536		451		460		1,003		2,450		1,751		1,756		1,805		1,735		7,047
Terminus 200	6,069		1,658		1,770		1,678		1,648		6,754		1,798		1,749		1,769		1,663		6,979
Emory University Hospital Midtown Medical Office Tower	3,974		987		1,000		975		1,008		3,970		989		948		961		1,015		3,913
Carolina Square	—		—		—		—		—		—		—		—		47		658		705
Other (3)	5,816		1,593		1,755		1,748		2,930		8,026		2,726		1,250		523		412		4,911
Subtotal - Unconsolidated	24,335		6,646		6,954		6,760		8,426		28,786		9,176		7,609		6,934		7,334		31,053

Discontinued Operations (6)	103,198		25,318		25,126		26,408		1,739		78,591		—		—		—		—		—

Total Net Operating Income (1)	241,232		59,513		59,008		61,621		80,139		260,281		80,167		80,115		75,815		77,109		313,206

Sales Less Cost of Sales
Land Sales Less Cost of Sales - Consolidated	1,625		—		—		—		3,580		3,580		—		63		4		—		67
Land Sales Less Cost of Sales - Unconsolidated (4)	2,280		—		—		—		190		190		—		—		—		—		—
Total Sales Less Cost of Sales	3,905		—		—		—		3,770		3,770		—		63		4		—		67



Cousins Properties Incorporated	12	Q4 2017 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017

Fee Income
Management Fees (7)	5,188		1,325		1,263		1,253		1,317		5,158		1,402		1,492		1,458		1,442		5,794
Development Fees	1,778		608		486		549		634		2,277		432		318		1,062		328		2,140
Leasing & Other Fees	331		266		75		143		428		912		102		44		77		475		698
Total Fee Income	7,297		2,199		1,824		1,945		2,379		8,347		1,936		1,854		2,597		2,245		8,632

Other Income
Termination Fees	398		—		—		—		122		122		5,238		2,913		734		385		9,270
Gain on Extinguishment of Debt	—		—		—		—		—		—		—		1,829		429		—		2,258
Interest and Other Income	460		390		27		153		358		928		188		262		258		1,540		2,248
Termination Fees - Unconsolidated (4)	419		—		—		—		3,000		3,000		959		195		132		8		1,294
Interest and Other Income - Unconsolidated (4)	747		546		151		134		357		1,188		504		105		81		231		921
Termination Fees - Discontinued Operations (6)	450		186		102		—		—		288		—		—		—		—		—
Interest and Other Income - Discontinued Operations (6)	(23	)	(1	)	—		—		—		(1	)	—		—		—		—		—
Total Other Income	2,451		1,121		280		287		3,837		5,525		6,889		5,304		1,634		2,164		15,991

Total Fee and Other Income	9,748		3,320		2,104		2,232		6,216		13,872		8,825		7,158		4,231		4,409		24,623

Reimbursed Expenses	(3,430	)	(870	)	(798	)	(795	)	(796	)	(3,259	)	(865	)	(907	)	(895	)	(860	)	(3,527	)

General and Administrative Expenses	(16,918	)	(8,243	)	(4,691	)	(4,368	)	(8,290	)	(25,592	)	(6,182	)	(8,618	)	(7,193	)	(5,530	)	(27,523	)

Interest Expense
Consolidated Debt
Term Loan, Unsecured	—		—		—		—		(386	)	(386	)	(1,288	)	(1,564	)	(1,655	)	(1,691	)	(6,198	)
Fifth Third Center	—		—		—		(427	)	(1,275	)	(1,702	)	(1,272	)	(1,266	)	(1,260	)	(1,254	)	(5,052	)
Promenade	(4,734	)	(1,165	)	(1,157	)	(1,150	)	(1,142	)	(4,614	)	(1,134	)	(1,127	)	(1,119	)	(1,112	)	(4,492	)
Senior Notes, Unsecured ($250M)	—		—		—		—		—		—		—		—		(2,353	)	(2,489	)	(4,842	)
Colorado Tower	—		—		—		(353	)	(1,059	)	(1,412	)	(1,059	)	(1,059	)	(1,059	)	(1,059	)	(4,236	)
816 Congress Avenue	(3,269	)	(817	)	(817	)	(817	)	(817	)	(3,268	)	(814	)	(810	)	(806	)	(803	)	(3,233	)
Credit Facility, Unsecured	(4,089	)	(832	)	(1,053	)	(870	)	(1,159	)	(3,914	)	(1,035	)	(1,153	)	(444	)	(418	)	(3,050	)
Senior Notes, Unsecured ($100M)	—		—		—		—		—		—		—		(876	)	(1,025	)	(1,036	)	(2,937	)
Meridian Mark Plaza	(1,538	)	(381	)	(379	)	(377	)	(375	)	(1,512	)	(373	)	(372	)	(370	)	(368	)	(1,483	)
The Pointe	—		—		—		—		(171	)	(171	)	(176	)	(178	)	(177	)	(176	)	(707	)
Other (3)	(12,684	)	(2,987	)	(2,979	)	(2,990	)	(5,413	)	(14,369	)	(4,180	)	(2,336	)	(20	)	—		(6,536	)
Capitalized	3,577		742		1,016		1,230		1,709		4,697		1,590		2,218		2,701		2,733		9,242
Subtotal - Consolidated	(22,737	)	(5,440	)	(5,369	)	(5,754	)	(10,088	)	(26,651	)	(9,741	)	(8,523	)	(7,587	)	(7,673	)	(33,524	)

Unconsolidated Debt (4)
Terminus 100	(3,436	)	(848	)	(844	)	(840	)	(836	)	(3,368	)	(831	)	(827	)	(824	)	(818	)	(3,300	)
Terminus 200	(1,560	)	(390	)	(389	)	(387	)	(385	)	(1,551	)	(383	)	(382	)	(380	)	(378	)	(1,523	)
Emory University Hospital Midtown Medical Office Tower	(1,333	)	(330	)	(329	)	(327	)	(325	)	(1,311	)	(324	)	(322	)	(320	)	(319	)	(1,285	)
Carolina Square	—		—		—		—		—		—		—		—		(27	)	(157	)	(184	)
Other (3)	(1,126	)	(439	)	(464	)	(484	)	(806	)	(2,193	)	(787	)	(390	)	(225	)	(164	)	(1,566	)
Subtotal - Unconsolidated	(7,455	)	(2,007	)	(2,026	)	(2,038	)	(2,352	)	(8,423	)	(2,325	)	(1,921	)	(1,776	)	(1,836	)	(7,858	)

Discontinued Operations (6)	(7,986	)	(1,974	)	(1,965	)	(1,956	)	(126	)	(6,021	)	—		—		—		—		—



Cousins Properties Incorporated	13	Q4 2017 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017


Total Interest Expense	(38,178	)	(9,421	)	(9,360	)	(9,748	)	(12,566	)	(41,095	)	(12,066	)	(10,444	)	(9,363	)	(9,509	)	(41,382	)

Other Expenses
Transaction Costs - Merger	—		(19	)	(2,424	)	(1,446	)	(20,633	)	(24,522	)	(1,930	)	(246	)	677		(162	)	(1,661	)
Property Taxes and Other Holding Costs	(828	)	(89	)	(98	)	(95	)	(158	)	(440	)	(304	)	(140	)	(139	)	(181	)	(764	)
Predevelopment & Other	(522	)	(108	)	(118	)	(140	)	(577	)	(943	)	(129	)	(156	)	(265	)	(253	)	(803	)
Severance	(181	)	(249	)	—		—		—		(249	)	(28	)	—		(73	)	(345	)	(446	)
Partners' share of FFO in consolidated joint ventures	(111	)	—		—		—		(3,775	)	(3,775	)	—		—		(4	)	(12	)	(16	)
Transaction Costs - Spin-off	—		—		—		(494	)	(5,855	)	(6,349	)	—		—		—		—		—
Loss on Extinguishment of Debt - Unconsolidated (4)	—		—		—		—		(5,180	)	(5,180	)	—		—		—		—		—
Impairment Loss	—		—		—		—		(4,526	)	(4,526	)	—		—		—		—		—
Acquisition Costs	(299	)	—		—		—		—		—		—		—		—		—		—
Total Other Expenses	(1,941	)	(465	)	(2,640	)	(2,175	)	(40,704	)	(45,984	)	(2,391	)

Cousins Properties Inc (CUZ) SEC Filing 8-K Material Event for the period ending Wednesday, February 7, 2018

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