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1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
4
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations

Funds From Operations - Detail
Portfolio Statistics
Office Leasing Activity
Office Lease Expirations
Top 20 Office Tenants
Tenant Industry Diversification
Investment Activity
Land Inventory
Debt Schedule
Non-GAAP Financial Measures - Calculations and Reconciliations
Non-GAAP Financial Measures - Discussion
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Cousins Properties
 
Q3 2018 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 in the Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2018. 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 2018 guidance and underlying assumptions, business and financial strategy, future financings, future acquisitions and dispositions of land (including ground leases), future acquisitions and dispositions of operating assets, future development and redevelopment opportunities, future fee development opportunities, future issuances and repurchases of common or preferred stock, future distributions, future projected capital expenditures, future changes in interest rates, market and industry tends, 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 following: 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, Phoenix, and Tampa where we have high concentrations of our lease revenue, changes to our strategy with regard to 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), changes in senior management and 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, potential changes to state, local, or federal regulations applicable to our business, material changes in the dividend rates or the ability to pay dividends on common shares or other securities, potential changes to the tax laws and accounting standards 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
3
Q3 2018 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS THIRD QUARTER 2018 RESULTS
Third Quarter Highlights
Net income available to common stockholders was $0.05 per share.
Funds From Operations was $0.16 per share.
Same property net operating income on a cash-basis increased 4.4%.
Second generation net rent per square foot on a cash-basis increased 7.6%.
Executed 485,598 square feet of office leases.
Increased the size of 300 Colorado, a new office development in the Austin CBD, by two floors bringing the total to 358,000 square feet.
In October 2018, commenced operations at 858 Spring Street, Phase II of NCR's world headquarters in Midtown Atlanta.
ATLANTA (October 24, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended September 30, 2018.
Financial Results
Net income available to common stockholders was $19.5 million, or $0.05 per share, for the third quarter of 2018, compared with $12.1 million, or $0.03 per share, for the third quarter of 2017. Net Income available to common stockholders was $56.8 million, or $0.14 per share, for the nine months ended September 30, 2018, compared with $184.9 million, or $0.45 per share, for the nine months ended September 30, 2017. In the second quarter of 2017, the Company recognized a net gain of $119.8 million on the sale of the American Cancer Society Center in Atlanta.
Funds From Operations ("FFO") was $67.5 million, or $0.16 per share, for the third quarter of 2018 compared with $62.3 million, or $0.15 per share, for the third quarter of 2017. FFO was $196.7 million, or $0.46 per share, for the nine months ended September 30, 2018, compared to $195.7 million, or $0.46 per share, for the nine months ended September 30, 2017.
2018 Guidance
Based on third quarter 2018 results, the Company has raised and narrowed its full year 2018 net income guidance from $0.15 to $0.19 per share to $0.16 to $0.19 per share. The Company has also raised and narrowed its full year 2018 FFO guidance from $0.59 to $0.63 per share to $0.60 to $0.63 per share.
The Company leaves unchanged the previously provided assumptions of its 2018 net income and FFO guidance, except for the following update:
General and administrative expenses, net of capitalized salaries of $23.5 million to $25.5 million, down from the previous range of $25.5 million to $27.5 million, due to a decrease in long-term incentive compensation based on the Company's stock performance.




Cousins Properties
4
Q3 2018 Supplemental Information

EARNINGS RELEASE



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
$
0.16

 
$
0.19

Add: Real estate depreciation and amortization
0.44

 
0.44

Funds From Operations per share
$
0.60

 
$
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, October 25, 2018, to discuss the results of the quarter ended September 30, 2018. The number to call for this interactive teleconference is (877) 247-1056. The live webcast of this call can be accessed on the Company's website, www.cousins.com, through the “Cousins Properties Third Quarter Conference Call” link on the Investor Relations page.
A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10124642. The playback can also be accessed on the Company's website.
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
5
Q3 2018 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
September 30, 2018
 
December 31, 2017
 
(unaudited)
 
 
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $384,097 and $275,977 in 2018 and 2017, respectively
$
3,499,741

 
$
3,332,619

Projects under development
128,580

 
280,982

Land
4,221

 
4,221

 
3,632,542

 
3,617,822

 
 
 
 
Cash and cash equivalents
82,706

 
148,929

Restricted cash
419

 
56,816

Notes and accounts receivable, net of allowance for doubtful accounts of $456 and $535 in 2018 and 2017, respectively
10,400

 
14,420

Deferred rents receivable
76,494

 
58,158

Investment in unconsolidated joint ventures
154,070

 
101,414

Intangible assets, net
155,025

 
186,206

Other assets
31,943

 
20,854

Total assets
$
4,143,599

 
$
4,204,619

Liabilities:
 
 
 
Notes payable
$
1,065,012

 
$
1,093,228

Accounts payable and accrued expenses
114,229

 
137,909

Deferred income
40,035

 
37,383

Intangible liabilities, net of accumulated amortization of $39,332 and $28,960 in 2018 and 2017, respectively
60,082

 
70,454

Other liabilities
39,786

 
40,534

Total liabilities
1,319,144

 
1,379,508

Commitments and contingencies
 
 
 
Equity:
 
 
 
Stockholders' investment:
 
 
 
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2018 and 2017
6,867

 
6,867

Common stock, $1 par value, 700,000,000 shares authorized, 430,724,520 and 430,349,620 shares issued in 2018 and 2017, respectively
430,725

 
430,350

Additional paid-in capital
3,605,617

 
3,604,776

Treasury stock at cost, 10,339,735 and 10,329,082 shares in 2018 and 2017, respectively
(148,473
)
 
(148,373
)
Distributions in excess of cumulative net income
(1,124,518
)
 
(1,121,647
)
Total stockholders' investment
2,770,218

 
2,771,973

Nonredeemable noncontrolling interests
54,237

 
53,138

Total equity
2,824,455

 
2,825,111

Total liabilities and equity
$
4,143,599

 
$
4,204,619



Cousins Properties
6
Q3 2018 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
Rental property revenues
$
115,443

 
$
109,569

 
$
342,489

 
$
336,093

Fee income
2,519

 
2,597

 
7,211

 
6,387

Other
744

 
993

 
2,836

 
9,593

 
118,706

 
113,159

 
352,536

 
352,073

Expenses:
 
 
 
 
 
 
 
Rental property operating expenses
41,579

 
40,688

 
122,501

 
123,715

Reimbursed expenses
955

 
895

 
2,757

 
2,667

General and administrative expenses
3,913

 
7,193

 
18,793

 
21,993

Interest expense
9,551

 
7,587

 
29,043

 
25,851

Depreciation and amortization
45,068

 
47,622

 
135,836

 
152,546

Acquisition and transaction costs

 
(677
)
 
228

 
1,499

Other
93

 
423

 
457

 
1,063

 
101,159

 
103,731

 
309,615

 
329,334

Gain on extinguishment of debt
93

 
429

 
8

 
2,258

Income from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties
17,640

 
9,857

 
42,929

 
24,997

Income from unconsolidated joint ventures
2,252

 
2,461

 
10,173

 
43,362

Income from continuing operations before gain (loss) on sale of investment properties
19,892

 
12,318

 
53,102

 
68,359

Gain (loss) on sale of investment properties
(33
)
 
(33
)
 
4,912

 
119,729

Net Income
19,859

 
12,285

 
58,014

 
188,088

Net income attributable to noncontrolling interests
(374
)
 
(218
)
 
(1,210
)
 
(3,181
)
Net income available to common stockholders
$
19,485

 
$
12,067

 
$
56,804

 
$
184,907

Net income per common share — basic and diluted
$
0.05

 
$
0.03

 
$
0.14

 
$
0.45

Weighted average shares — basic
420,385

 
419,998

 
420,279

 
414,123

Weighted average shares — diluted
427,520

 
427,300

 
427,472

 
421,954


Cousins Properties
7
Q3 2018 Supplemental Information

KEY PERFORMANCE METRICS

 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
Property Statistics
 
 
 
 
 
 
 
 
 
 
Consolidated Operating Properties
24

25

25

25

22

22

23

23

23

23

Consolidated Rentable Square Feet (in thousands)
13,024

13,249

12,477

12,466

11,428

11,428

11,936

11,944

11,944

11,944

Unconsolidated Operating Properties
7

6

4

5

4

4

4

4

4

4

Unconsolidated Rentable Square Feet (in thousands)
3,999

3,774

2,988

3,456

3,113

3,113

3,113

3,113

3,113

3,113

Total Operating Properties
31

31

29

30

26

26

27

27

27

27

Total Rentable Square Feet (in thousands)
17,023

17,023

15,465

15,922

14,541

14,541

15,049

15,057

15,057

15,057

 
 
 
 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
 
 
 
Net Leased during the Period (square feet in thousands)
2,354

571

341

335

943

2,190

330

328

486

1,143

Net Rent (per square foot)
$24.52
$26.10
$28.58
$26.57
$32.73
$29.41
$33.35
$32.40
$28.46
$31.00
Free rent (per square foot)
(1.26)

(1.21)

(0.91)

(0.83)

(0.39)

(0.75)

(0.55)

(1.00)

(0.94)

(0.84)

Leasing commissions (per square foot) (2)
(1.78)

(1.93)

(2.78)

(2.32)

(2.40)

(2.32)

(2.67)

(2.49)

(2.40)

(2.50)

Tenant improvements (per square foot)
(3.91)

(4.78)

(4.66)

(3.46)

(4.49)

(4.43)

(3.07)

(4.50)

(4.29)

(4.00)

Net Effective Rent (per square foot)
$17.57
$18.18
$20.23
$19.96
$25.45
$21.91
$27.06
$24.41
$20.83
$23.66
Change in Second Generation Net Rent
20.0
%
15.8
%
28.5
%
16.9
%
19.7
%
19.6
%
35.2
%
34.2
%
25.8
%
31.1
%
Change in Cash-Basis Second Generation Net Rent
10.3
%
3.3
%
13.5
%
7.3
%
6.3
%
6.9
%
19.3
%
13.1
%
7.6
%
13.2
%
 
 
 
 
 
 
 
 
 
 
 
Same Property Information (3)
 
 
 
 
 
 
 
 
 
 
Percent Leased (period end)
91.8
%
92.1
%
93.9
%
92.9
%
92.6
%
92.6
%
93.6
%
93.5
%
94.2
%
94.2
%
Weighted Average Occupancy
89.4
%
89.9
%
90.7
%
89.1
%
87.7
%
89.4
%
92.0
%
91.9
%
91.8
%
91.9
%
Change in Net Operating Income (over prior year period)
6.1
%
5.5
%
6.8
%
1.3
%
3.6
%
4.4
%
2.6
%
1.3
%
2.7
%
2.2
%
Change in Cash-Basis Net Operating Income (over prior year period)
8.4
%
5.4
%
8.6
%
2.0
%
4.2
%
5.3
%
9.4
%
4.1
%
4.4
%
5.9
%
 
 
 
 
 
 
 
 
 
 
 
Development Pipeline
 
 
 
 
 
 
 
 
 
 
Estimated Project Costs (in thousands) (4)
$512,200
$529,200
$463,500
$402,000
$490,500
$490,500
$271,500
$358,800
$362,900
$362,900
Estimated Project Costs (4) / Total Undepreciated Assets
10.5
%
10.6
%
9.6
%
8.1
%
9.9
%
9.9
%
5.5
%
7.2
%
7.2
%
7.2
%
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization (5)
 
 
 
 
 
 
 
 
 
 
Common Stock Price (period end)
$8.51
$8.27
$8.79
$9.34
$9.25
$9.25
$8.68
$9.69
$8.89
$8.89
Common Stock/Units Outstanding (period end in thousands)
401,596

426,823

426,942

426,995

426,995

426,995

427,218

427,368

427,359

427,359

Equity Market Capitalization (in thousands)
$3,417,582
$3,529,826
$3,752,820
$3,988,133
$3,949,704
$3,949,704
$3,708,252
$4,141,196
$3,799,222
$3,799,222
Debt (in thousands)
1,632,270

1,498,044

1,205,632

1,286,252

1,262,523

1,262,523

1,262,833

1,261,459

1,236,891

1,236,891

Total Market Capitalization (in thousands)
$5,049,852
$5,027,870
$4,958,452
$5,274,385
$5,212,227
$5,212,227
$4,971,085
$5,402,655
$5,036,113
$5,036,113
 
 
 
 
 
 
 
 
 
 
 
Credit Ratios (5)
 
 
 
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
31.6
%
29.1
%
24.0
%
23.2
%
21.4
%
21.4
%
23.2
%
21.3
%
22.9
%
22.9
%
Net Debt/Total Undepreciated Assets
32.8
%
29.4
%
24.7
%
24.7
%
22.5
%
22.5
%
23.5
%
23.1
%
22.9
%
22.9
%
Net Debt/Annualized Adjusted EBITDAre
5.22

4.49

3.93

4.31

3.75

3.75

3.77

3.76

3.65

3.65

Fixed Charges Coverage (Adjusted EBITDAre)
4.63

5.13

5.49

5.82

6.01

5.58

5.39

5.37

5.67

5.48


Cousins Properties
8
Q3 2018 Supplemental Information

KEY PERFORMANCE METRICS

 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
 
 
 
 
 
 
 
 
 
 
 
Dividend Information (5)
 
 
 
 
 
 
 
 
 
 
Common Dividend per Share (6)
$0.30
$0.06
$0.06
$0.06
$0.06
$0.24
$0.065
$0.065
$0.065
$0.195
Funds From Operations (FFO) Payout Ratio
46.1
%
37.5
%
38.0
%
40.4
%
39.3
%
38.8
%
42.3
%
42.3
%
40.5
%
41.7
%
Funds Available for Distribution (FAD) Payout Ratio
59.0
%
56.4
%
52.9
%
67.2
%
66.8
%
60.2
%
61.9
%
61.2
%
59.1
%
60.7
%
 
 
 
 
 
 
 
 
 
 
 
Operations Ratio (5)
 
 
 
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.53
%
0.50
%
0.72
%
0.58
%
0.45
%
0.56
%
0.55
%
0.65
%
0.31
%
0.50
%
 
 
 
 
 
 
 
 
 
 
 
Additional Information (5) (in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
 
In-Place Gross Rent (per square foot) (7)
$32.64
$33.70
$33.13
$34.02
$34.19
$34.19
$34.98
$35.08
$35.23
$35.23
Straight Line Rental Revenue
$18,967
$9,608
$7,826
$6,825
$6,714
$30,973
$8,136
$5,690
$5,148
$18,974
Above and Below Market Rents Amortization
$7,097
$1,602
$1,929
$1,852
$1,838
$7,221
$1,793
$1,714
$1,730
$5,237
Second Generation Capital Expenditures
$46,876
$10,971
$7,569
$15,949
$18,996
$53,485
$11,256
$11,077
$15,152
$37,485
 
 
 
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 18 for additional detail and explanations.
(2) Effective in the second quarter 2018, the Company began including commissions paid to its internal leasing personnel. Prior period amounts presented have been adjusted from what was previously disclosed for this change.
(3) 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 34 for additional information.
(4) Represents Cousins' share of estimated project costs. See Development Pipeline on page 25 for additional detail.
(5) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 30.
(6) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.
(7) In-place gross rent represents the annualized cash basis base rent including tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.


Cousins Properties
9
Q3 2018 Supplemental Information

KEY PERFORMANCE METRICS


                                 
chart-c490d78426da57319b4.jpgchart-5156cfe8f9b6500781c.jpg chart-6c03da3e430c5b9c8c6.jpg
chart-36c7744e9bfc561192a.jpg chart-98b264c3a7d95f2292e.jpg chart-2ac72e8c5f295044b51.jpg

          

(1) Office properties only.
    
Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.

Cousins Properties
10
Q3 2018 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
(amounts in thousands, except per share amounts)
 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
Net Operating Income
$
260,281

$
80,167

$
80,115

$
75,815

$
77,109

$
313,206

$
80,578

$
80,195

$
80,858

$
241,631

Land Sales Less Cost of Sales
3,770


63

4


67

330

2,449


2,779

Fee Income
8,347

1,936

1,854

2,597

2,245

8,632

2,894

1,798

2,519

7,211

Other Income
5,525

6,889

5,304

1,634

2,164

15,991

1,034

1,212

915

3,161

Reimbursed Expenses
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
(942
)
(860
)
(955
)
(2,757
)
General and Administrative Expenses
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
(6,809
)
(8,071
)
(3,913
)
(18,793
)
Interest Expense
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
(11,293
)
(11,305
)
(11,208
)
(33,806
)
Other Expenses
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
(695
)
(365
)
(257
)
(1,317
)
Depreciation and Amortization of Non-Real Estate Assets
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
(473
)
(468
)
(469
)
(1,410
)
FFO (1)
$
160,628

$
67,037

$
66,360

$
62,334

$
64,169

$
259,900

$
64,624

$
64,585

$
67,490

$
196,699

Weighted Average Shares - Diluted
256,023

411,186

427,180

427,300

427,288

423,297

427,381

427,501

427,520

427,472

FFO per Share (1)
$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61

$
0.15

$
0.15

$
0.16

$
0.46




(1) See pages 30 and 33 for reconciliations of Funds from Operations to net income available to common stockholders.

Cousins Properties
11
Q3 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
 
 
 
Hearst Tower
$
5,957

$
6,356

$
6,370

$
6,302

$
7,158

$
26,186

$
6,493

$
6,426

$
6,456

$
19,375

Northpark (2)
22,144

5,410

5,130

4,945

5,021

20,506

5,731

5,814

6,204

17,749

Corporate Center (2)
5,005

4,761

5,374

5,308

5,446

20,889

5,780

5,956

5,947

17,683

Hayden Ferry (2)
3,881

5,209

5,307

5,466

5,968

21,950

5,766

5,433

5,894

17,093

Fifth Third Center
17,501

4,842

4,681

4,772

4,989

19,284

4,729

4,647

4,912

14,288

864 Spring Street




50

50

4,726

4,608

4,704

14,038

Buckhead Plaza (2)
4,186

4,418

4,143

4,389

4,566

17,516

4,330

4,382

4,367

13,079

Promenade
14,555

4,173

4,407

4,184

3,991

16,755

4,240

4,242

4,125

12,607

One Eleven Congress
3,256

3,713

3,735

4,172

3,526

15,146

4,036

4,039

4,034

12,109

San Jacinto Center
3,456

4,038

4,207

3,918

3,906

16,069

3,635

3,632

3,596

10,863

Colorado Tower
12,408

3,383

3,352

3,344

3,478

13,557

3,429

3,453

3,511

10,393

3344 Peachtree
3,505

3,235

2,884

2,705

2,085

10,909

2,994

3,069

2,970

9,033

816 Congress
9,900

2,694

2,641

2,766

2,797

10,898

2,780

2,911

3,016

8,707

NASCAR Plaza
2,507

2,477

2,394

2,609

2,709

10,189

2,652

2,590

2,683

7,925

Tempe Gateway
1,966

2,008

2,136

1,964

1,971

8,079

1,893

2,029

1,997

5,919

3350 Peachtree
2,006

2,264

2,288

2,153

1,968

8,673

1,987

1,899

1,888

5,774

3348 Peachtree
1,541

1,491

1,491

1,657

1,507

6,146

1,405

1,360

1,472

4,237

111 West Rio


1,396

1,236

1,412

4,044

1,314

1,419

1,374

4,107

8000 Avalon



80

353

433

1,357

1,350

1,144

3,851

The Pointe
1,227

1,146

1,146

1,069

1,207

4,568

1,236

1,170

1,179

3,585

Research Park V
844

359

916

874

827

2,976

1,012

1,016

1,023

3,051

Meridian Mark Plaza
3,674

989

997

979

1,116

4,081

920

1,006

1,049

2,975

Harborview Plaza
898

930

931

1,035

1,074

3,970

712

516

319

1,547

Other (3)
32,487

7,095

6,580

2,954

2,650

19,279





Subtotal - Consolidated
152,904

70,991

72,506

68,881

69,775

282,153

73,157

72,967

73,864

219,988

 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Properties (4)
 
 
 
 
 
 
 
 
 
 
Terminus (2)
14,340

3,710

3,655

3,598

3,514

14,477

3,486

3,415

3,345

10,246

Gateway Village (2)(5)
2,450

1,751

1,756

1,805

1,735

7,047

1,968

1,770

1,873

5,611

Emory University Hospital Midtown Medical Office Tower
3,970

989

948

961

1,015

3,913

990

1,031

1,028

3,049

Carolina Square (2)



47

658

705

928

975

747

2,650

300 Colorado






49

37

1

87

Other (3)
8,026

2,726

1,250

523

412

4,911





Subtotal - Unconsolidated
28,786

9,176

7,609

6,934

7,334

31,053

7,421

7,228

6,994

21,643

 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
78,591










 
 
 
 
 
 
 
 
 
 
 
Total Net Operating Income (1)
260,281

80,167

80,115

75,815

77,109

313,206

80,578

80,195

80,858

241,631

 
 
 
 
 
 
 
 
 
 
 
Sales Less Cost of Sales
 
 
 
 
 
 
 
 
 
 
Land Sales Less Cost of Sales - Consolidated
3,580


63

4


67





Land Sales Less Cost of Sales - Unconsolidated (4)
190






330

2,449


2,779

Total Sales Less Cost of Sales
3,770


63

4


67

330

2,449


2,779

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
12
Q3 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
Fee Income
 
 
 
 
 
 
 
 
 
 
Management Fees (7)
5,158

1,402

1,492

1,458

1,442

5,794

1,524

1,401

1,537

4,462

Development Fees
2,277

432

318

1,062

328

2,140

291

271

951

1,513

Leasing & Other Fees
912

102

44

77

475

698

1,079

126

31

1,236

Total Fee Income
8,347

1,936

1,854

2,597

2,245

8,632

2,894

1,798

2,519

7,211

 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
Termination Fees
122

5,238

2,913

734

385

9,270

360

639

276

1,275

Termination Fees - Unconsolidated (4)
3,000

959

195

132

8

1,294





Termination Fees - Discontinued Operations (6)
288










Interest and Other Income
928

188

262

258

1,540

2,248

600

493

468

1,561

Interest and Other Income - Unconsolidated (4)
1,188

504

105

81

231

921

74

80

78

232

Interest and Other Income - Discontinued Operations (6)
(1
)









Gain on Extinguishment of Debt


1,829

429


2,258



93

93

Total Other Income
5,525

6,889

5,304

1,634

2,164

15,991

1,034

1,212

915

3,161

 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
13,872

8,825

7,158

4,231

4,409

24,623

3,928

3,010

3,434

10,372

 
 
 
 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
(942
)
(860
)
(955
)
(2,757
)
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expenses
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
(6,809
)
(8,071
)
(3,913
)
(18,793
)
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 
 
 
 
 
 
 
 
 
Senior Notes, Unsecured ($250M)



(2,353
)
(2,489
)
(4,842
)
(2,489
)
(2,490
)
(2,488
)
(7,467
)
Term Loan, Unsecured
(386
)
(1,288
)
(1,564
)
(1,655
)
(1,691
)
(6,198
)
(1,858
)
(2,088
)
(2,205
)
(6,151
)
Fifth Third Center
(1,702
)
(1,272
)
(1,266
)
(1,260
)
(1,254
)
(5,052
)
(1,247
)
(1,241
)
(1,235
)
(3,723
)
Promenade
(4,614
)
(1,134
)
(1,127
)
(1,119
)
(1,112
)
(4,492
)
(1,102
)
(1,095
)
(1,085
)
(3,282
)
Colorado Tower
(1,412
)
(1,059
)
(1,059
)
(1,059
)
(1,059
)
(4,236
)
(1,059
)
(1,059
)
(1,059
)
(3,177
)
Senior Notes, Unsecured ($100M)


(876
)
(1,025
)
(1,036
)
(2,937
)
(1,036
)
(1,037
)
(1,036
)
(3,109
)
816 Congress Avenue
(3,268
)
(814
)
(810
)
(806
)
(803
)
(3,233
)
(799
)
(795
)
(792
)
(2,386
)
Credit Facility, Unsecured
(3,914
)
(1,035
)
(1,153
)
(444
)
(418
)
(3,050
)
(742
)
(754
)
(754
)
(2,250
)
Meridian Mark Plaza
(1,512
)
(373
)
(372
)
(370
)
(368
)
(1,483
)
(366
)
(368
)
(359
)
(1,093
)
Other (3)
(14,540
)
(4,356
)
(2,514
)
(197
)
(176
)
(7,243
)
(175
)
(177
)
(74
)
(426
)
Capitalized
4,697

1,590

2,218

2,701

2,733

9,242

1,095

1,390

1,536

4,021

Subtotal - Consolidated
(26,651
)
(9,741
)
(8,523
)
(7,587
)
(7,673
)
(33,524
)
(9,778
)
(9,714
)
(9,551
)
(29,043
)
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 
 
 
 
 
 
 
 
 
Terminus
(4,919
)
(1,214
)
(1,209
)
(1,204
)
(1,196
)
(4,823
)
(1,001
)
(995
)
(988
)
(2,984
)
Emory University Hospital Midtown Medical Office Tower
(1,311
)
(324
)
(322
)
(320
)
(319
)
(1,285
)
(317
)
(315
)
(314
)
(946
)
Carolina Square



(27
)
(157
)
(184
)
(197
)
(281
)
(355
)
(833
)
Other (3)
(2,193
)
(787
)
(390
)
(225
)
(164
)
(1,566
)




Subtotal - Unconsolidated
(8,423
)
(2,325
)
(1,921
)
(1,776
)
(1,836
)
(7,858
)
(1,515
)
(1,591
)
(1,657
)
(4,763
)
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
(6,021
)









 
 
 
 
 
 
 
 
 
 
 
Total Interest Expense
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
(11,293
)
(11,305
)
(11,208
)
(33,806
)
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
13
Q3 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
2018 2nd
2018 3rd
2018 YTD
Other Expenses
 
 
 
 
 
 
 
 
 
 
Severance
(249
)
(28
)

(73
)
(345
)
(446
)
(195
)
128

4

(63
)
Partners' share of FFO in consolidated joint ventures
(3,775
)


(4
)
(12
)
(16
)
(144
)
(134
)
(121
)
(399
)
Property Taxes and Other Holding Costs
(440
)
(304
)
(140
)
(139
)
(181
)
(764
)
(130
)
(152
)
(148
)
(430
)
Loss on Extinguishment of Debt - Consolidated






(85
)


(85
)
Loss on Extinguishment of Debt - Unconsolidated (4)
(5,180
)









Predevelopment & Other Costs
(943
)
(129
)
(156
)
(265
)
(253
)
(803
)
(50
)
(70
)
8

(112
)
Transaction Costs - Merger
(24,522
)
(1,930
)
(246
)
677

(162
)
(1,661
)
(91
)
(137
)

(228
)
Transaction Costs - Spin-off
(6,349
)









Impairment Loss
(4,526
)









Total Other Expenses
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
(695
)
(365
)
(257
)
(1,317
)
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
(473
)
(468
)
(469
)
(1,410
)
 
 
 
 
 
 
 
 
 
 
 
FFO (1)
$
160,628

$
67,037

$
66,360

$
62,334

$
64,169

$
259,900

$
64,624

$
64,585

$
67,490

$
196,699

Weighted Average Shares - Diluted
256,023

411,186

427,180

427,300

427,288

423,297

427,381

427,501

427,520

427,472

FFO per Share (1)
$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61

$
0.15

$
0.15

$
0.16

$
0.46

Note: Amounts may differ slightly from other schedules contained herein due to rounding.
(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 30.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) Represents properties sold and loans repaid prior to September 30, 2018 that are not considered discontinued operations.
(4) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but
      believes including these amounts in the categories indicated is meaningful to investors and analysts.
(5) Through December 1, 2016, the Company received an 11.46% current return on its $11.1 million investment in Gateway Village and, when certain other revenue criteria were met, received additional returns. The Company recognized these amounts as
      NOI from this venture. After December 1, 2016, net income and cash flows were allocated 50% to each joint venture member.
(6) Represents properties included in the spin-off in the 2016 merger-spin transaction with Parkway Properties, Inc.
(7) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.

Cousins Properties
14
Q3 2018 Supplemental Information

PORTFOLIO STATISTICS

 
Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased
 
Weighted Average Occupancy
 
% of Total
Net Operating
Income (1)
 
Property Level Debt ($000) (2)
 
 
 
 
 
3Q18
 
2Q18
 
3Q18
 
2Q18
 
 
 
Northpark (3)
 
1,539,000

 
Consolidated
 
100%
 
93.1%
 
86.4%
 
86.6%
 
84.8%
 
7.6%
 
$

 
864 Spring Street
 
506,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
5.8%
 

 
Buckhead Plaza (3)
 
671,000

 
Consolidated
 
100%
 
82.8%
 
86.7%
 
83.2%
 
88.2%
 
5.4%
 

 
Promenade
 
777,000

 
Consolidated
 
100%
 
89.3%
 
93.4%
 
90.5%
 
94.1%
 
5.1%
 
99,792

 
Terminus (3)
 
1,226,000

 
Unconsolidated
 
50%
 
88.8%
 
92.7%
 
87.0%
 
87.5%
 
4.2%
 
99,927

 
3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
92.4%
 
92.4%
 
91.5%
 
91.5%
 
3.7%
 

 
3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
94.4%
 
84.9%
 
84.9%
 
85.8%
 
2.3%
 

 
3348 Peachtree
 
258,000

 
Consolidated
 
100%
 
88.0%
 
88.0%
 
86.6%
 
86.0%
 
1.8%
 

 
8000 Avalon
 
229,000

 
Consolidated
 
90%
 
100.0%
 
98.2%
 
75.7%
 
73.4%
 
1.4%
 

 
Emory University Hospital Midtown Medical Office Tower
 
358,000

 
Unconsolidated
 
50%
 
99.1%
 
99.9%
 
99.6%
 
99.0%
 
1.3%
 
34,955

 
Meridian Mark Plaza
 
160,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.3%
 
23,607

 
ATLANTA
 
6,621,000

 
 
 
 
 
92.0%
 
90.9%
 
88.6%
 
89.2%
 
39.9%
 
258,281

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
 
966,000

 
Consolidated
 
100%
 
99.1%
 
99.1%
 
99.1%
 
99.1%
 
8.0%
 

 
Fifth Third Center
 
692,000

 
Consolidated
 
100%
 
99.8%
 
99.7%
 
99.7%
 
95.8%
 
6.1%
 
143,739

 
NASCAR Plaza
 
394,000

 
Consolidated
 
100%
 
98.8%
 
98.1%
 
98.5%
 
98.3%
 
3.3%
 

 
Gateway Village (3)
 
1,061,000

 
Unconsolidated
 
50%
 
99.4%
 
99.4%
 
99.4%
 
99.4%
 
2.3%
 

 
CHARLOTTE
 
3,113,000

 
 
 
 
 
99.3%
 
99.2%
 
99.2%
 
98.2%
 
19.7%
 
143,739