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1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
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
Joint Venture Information
Non-GAAP Financial Measures - Calculations and Reconciliations
Non-GAAP Financial Measures - Discussion
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Cousins Properties
 
Q4 2019 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, 2019. 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 the following: 2020 guidance and underlying assumptions; business and financial strategy; future debt financings; future acquisitions and dispositions of operating assets or joint venture interests; future acquisitions and dispositions of land, including ground leases; future development and redevelopment opportunities, including fee development opportunities; future issuances and repurchases of common stock; future distributions; projected capital expenditures; market and industry trends; entry into new markets; future changes in interest rates; 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 that is 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; changes in national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate (including supply and demand changes), particularly in Atlanta, Austin, Charlotte, Phoenix, Tampa, and Dallas where we have high concentrations of our lease revenues; changes to our strategy with regard to land and other non-core holdings that may 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, the failure of a tenant to occupy leased space, and the risk of declining leasing rates; changes in the needs of our tenants brought about by the desire for co-working arrangements, trends toward utilizing less office space per employee, and the effect of telecommuting; 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); cyber security breaches; changes in senior management, changes in the Board of Directors, 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 rates, 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; potential changes to the tax laws impacting REITs and real estate in general; the ability to realize anticipated benefits of the merger with TIER REIT, Inc. ("TIER"); and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") 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
Q4 2019 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS
Updates 2020 Earnings Guidance

Highlights
Net income per share was $0.80; net income per share was $0.81 before TIER transaction costs.
Funds from operations per share was $0.73 before TIER transaction costs.
Same property net operating income on a cash basis increased 6.0%.
Second generation net rent per square foot on a cash basis increased 12.6%.
Executed 561,651 square feet of office leases.
Pre-leasing on $565 million development pipeline was 80%.
Purchased remaining 50% interest in Terminus Office Holdings LLC from the joint venture partner in a transaction that valued the properties at $503 million. The Company recognized a gain on this transaction of $92.8 million.
Received notice of Truist's intent to exercise its purchase right for Hearst Tower, a 966,000 square foot office property in Charlotte, and subsequently entered into an agreement to sell the property for a gross sales price of $455.5 million. The Company anticipates closing on this sale at the end of the first quarter of 2020.
Sold remaining North Point land, a 9.2 acre parcel located in Atlanta, recognizing a gain on this transaction of $3.7 million.
Entered into an agreement to sell Woodcrest, a 386,000 square foot office property in Cherry Hill, New Jersey. The Company anticipates closing this sale during the first quarter of 2020.
Subsequent to quarter end:
The Company's partner in its Gateway Village joint venture executed its right to purchase the Company's interest for $52.2 million. This sales price generates a 17% internal rate of return for the Company on its invested capital over the life of the venture, as stipulated in the partnership agreement. The Company anticipates closing this sale at the end of the first quarter of 2020.
Sold its remaining interest in the Wildwood Associates joint venture, which owned a 6.3 acre parcel of land in Atlanta, to its venture partner, recognizing a gain of $1.4 million on this transaction.
Commenced development of 100 Mill, a 287,000 square foot office building in Tempe, Arizona, with a total estimated project cost of $153 million.
ATLANTA (February 5, 2020) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2019.
"Fourth quarter operating results were solid, highlighted by 6% same property NOI growth and a 12.6% increase in second generation rents," said Colin Connolly, president and chief executive officer of Cousins Properties. "Earnings exceeded our expectations aside from an increase in G&A expenses directly attributable to our strong share price performance during the quarter.  Looking forward, solid fundamentals in our Sunbelt markets will continue to drive both internal and external growth. Reflecting this strength, our updated earnings guidance includes 5% same property NOI growth as well as a new development start in Phoenix."

Cousins Properties
4
Q4 2019 Supplemental Information

EARNINGS RELEASE


Financial Results
Net income available to common stockholders was $117.1 million, or $0.80 per share, for the fourth quarter of 2019, compared with net income available to common stockholders of $22.4 million, or $0.21 per share, for the fourth quarter of 2018. Net income available to common stockholders was $150.4 million, or $1.17 per share, for the year ended December 31, 2019, compared with $79.2 million, or $0.75 per share, for the year ended December 31, 2018.
Funds From Operations ("FFO") was $106.2 million, or $0.72 per share, for the fourth quarter of 2019, compared with $71.2 million, or $0.67 per share, for the fourth quarter of 2018. FFO was $328.8 million, or $2.53 per share, for the year ended December 31, 2019, compared with $267.9 million, or $2.51 per share, for the year ended December 31, 2018.
The Company recorded costs associated with the TIER transaction of $2.0 million for the fourth quarter of 2019 and $52.9 million for the year ended December 31, 2019. Net income available to common stockholders excluding TIER transaction costs was $119.1 million, or $0.81 per share, for the fourth quarter of 2019 and $202.2 million, or $1.58 per share, for the year ended December 31, 2019. FFO excluding TIER transaction costs was $108.2 million, or $0.73 per share, for the fourth quarter of 2019 and $381.7 million, or $2.94 per share, for the year ended December 31, 2019.

2020 Guidance
The Company has raised its 2020 FFO guidance to $2.72 to $2.86 per share from $2.71 to $2.85 per share. The Company leaves unchanged the previously provided assumptions of its 2020 guidance, except for the following updates:
General and administrative expenses of $32 million to $34 million, net of capitalized salaries, down from the previous range of $33 million to $35 million.
Interest and other expenses, net of capitalized interest, of $68 million to $70 million, down from the previous range of $69 million to $71 million, due to an increase in capitalized interest on projects under development.
Gain on land sales of $1.4 million, due to the redemption of the remainder of the Wildwood Associates joint venture land occurring in the first quarter of 2020 instead of the fourth quarter of 2019.
Sale of Woodcrest in the first quarter of 2020 instead of the fourth quarter of 2019.
Sale of interest in Gateway Village joint venture at the end of the first quarter of 2020.
Commencement of development of 100 Mill.
A reconciliation of projected net income per share to projected FFO per share is provided as follows:
 
Full Year 2020 Range
 
Low
 
High
Net income per common share
$
1.70

 
$
1.84

Add: Real estate depreciation and amortization
1.92

 
1.92

Less: Gain on sale of depreciated real estate
(0.90
)
 
(0.90
)
Funds From Operations per share
$
2.72

 
$
2.86

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

Cousins Properties
5
Q4 2019 Supplemental Information

EARNINGS RELEASE


Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 6, 2020, to discuss the results of the quarter and year ended
December 31, 2019. 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 Fourth 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 10138069. 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
6
Q4 2019 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
December 31, 2019
 
December 31, 2018
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $577,139 and $421,495 in 2019 and 2018, respectively
$
5,669,324

 
$
3,603,011

Projects under development
410,097

 
24,217

Land
116,860

 
72,563

 
6,196,281

 
3,699,791

Real estate assets and other assets held for sale, net of accumulated depreciation and amortization of $61,093 in 2019
360,582

 

Cash and cash equivalents
15,603

 
2,547

Restricted cash
2,005

 
148

Notes and accounts receivable
23,680

 
13,821

Deferred rents receivable
102,314

 
83,116

Investment in unconsolidated joint ventures
133,884

 
161,907

Intangible assets, net
257,649

 
145,883

Other assets
59,449

 
39,083

Total assets
$
7,151,447

 
$
4,146,296

Liabilities:
 
 
 
Notes payable
$
2,222,975

 
$
1,062,570

Accounts payable and accrued expenses
209,904

 
110,159

Deferred income
52,269

 
41,266

Intangible liabilities, net of accumulated amortization of $55,798 and $42,473 in 2019 and 2018, respectively
83,105

 
56,941

Other liabilities
134,128

 
54,204

Liabilities of real estate assets held for sale, net of accumulated amortization of $7,771 in 2019
21,231

 

Total liabilities
2,723,612

 
1,325,140

Commitments and contingencies
 
 
 
Equity:
 
 
 
  Stockholders' investment:
 
 
 
Preferred stock, $1 par value, 20,000,000 shares authorized, 1,716,837 shares issued and outstanding in 2019 and 2018
1,717

 
1,717

Common stock, $1 par value, 300,000,000 and 175,000,000 shares authorized in 2019 and 2018, respectively, and 149,347,382 and 107,681,130 shares issued in 2019 and 2018, respectively
149,347

 
107,681

Additional paid-in capital
5,493,883

 
3,934,385

Treasury stock at cost, 2,584,933 shares in 2019 and 2018
(148,473
)
 
(148,473
)
Distributions in excess of cumulative net income
(1,137,200
)
 
(1,129,445
)
Total stockholders' investment
4,359,274

 
2,765,865

Nonredeemable noncontrolling interests
68,561

 
55,291

Total equity
4,427,835

 
2,821,156

Total liabilities and equity
$
7,151,447

 
$
4,146,296


Cousins Properties
7
Q4 2019 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended December 31,
 
Year Ended December 31,
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
Rental property revenues
$
189,127

 
$
119,640

 
$
628,751

 
$
463,401

Fee income
5,220

 
2,878

 
28,518

 
10,089

Other
92

 
158

 
246

 
1,722

 
194,439

 
122,676

 
657,515

 
475,212

Expenses:
 
 
 
 
 

 
 

Rental property operating expenses
66,308

 
42,177

 
222,146

 
164,678

Reimbursed expenses
735

 
1,025

 
4,004

 
3,782

General and administrative expenses
11,321

 
3,247

 
37,007

 
22,040

Interest expense
16,384

 
10,387

 
53,963

 
39,430

Depreciation and amortization
78,372

 
45,546

 
257,149

 
181,382

Transaction costs
2,003

 
20

 
52,881

 
248

Other
8

 
99

 
1,109

 
556

 
175,131

 
102,501

 
628,259

 
412,116

Income from unconsolidated joint ventures
2,887

 
2,051

 
12,666

 
12,224

Gain on investment property transactions
96,373

 
525

 
110,761

 
5,437

Gain on extinguishment of debt

 

 

 
8

Net income
118,568

 
22,751

 
152,683

 
80,765

Net income attributable to noncontrolling interests
(1,456
)
 
(391
)
 
(2,265
)
 
(1,601
)
Net income available to common stockholders
$
117,112

 
$
22,360

 
$
150,418

 
$
79,164

 
 
 
 
 
 
 
 
Net income per common share - basic and diluted
$
0.80

 
$
0.21

 
$
1.17

 
$
0.75

Weighted average shares — basic
146,762

 
105,096

 
128,060

 
105,076

Weighted average shares — diluted
148,534

 
106,871

 
129,831

 
106,868

 
 
 
 
 
 
 
 



Cousins Properties
8
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS

 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
Property Statistics
 
 
 
 
 
 
 
 
 
 
 
Consolidated Operating Properties
22

23

23

23

23

23

24

33

33

34

34

Consolidated Rentable Square Feet (in thousands)
11,428

11,936

11,944

11,944

12,203

12,203

12,573

18,372

18,372

19,599

19,599

Unconsolidated Operating Properties
4

4

4

4

4

4

5

5

5

4

4

Unconsolidated Rentable Square Feet (in thousands)
3,113

3,113

3,113

3,113

3,113

3,113

3,394

3,394

3,394

2,168

2,168

Total Operating Properties
26

27

27

27

27

27

29

38

38

38

38

Total Rentable Square Feet (in thousands)
14,541

15,049

15,057

15,057

15,316

15,316

15,967

21,766

21,766

21,767

21,767

 
 
 
 
 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
 
 
 
 
Net Leased during the Period (square feet in thousands)
2,190

330

328

486

455

1,597

682

1,089

741

562

3,074

Net Effective Rent Calculation (per square foot)
 
 
 
 
 
 
 
 
 
 
 
Net Rent
$29.41
$33.35
$32.40
$28.46
$31.02
$31.01
$27.86
$29.34
$33.66
$31.38
$30.43
Net Free Rent
(0.75)

(0.55)

(1.00)

(0.94)

(0.86)

(0.85)

(0.49)

(0.52)

(0.64)

(1.01)

(0.63)

Leasing Commissions
(2.32)

(2.67)

(2.49)

(2.40)

(2.17)

(2.41)

(1.13)

(2.34)

(2.86)

(2.84)

(2.29)

Tenant Improvements
(4.43)

(3.07)

(4.50)

(4.29)

(5.43)

(4.40)

(1.74)

(4.69)

(3.13)

(4.89)

(3.69)

Leasing Costs
(7.50)

(6.29)

(7.99)

(7.63)

(8.46)

(7.66)

(3.36)

(7.55)

(6.63)

(8.74)

(6.61)

Net Effective Rent
$21.91
$27.06
$24.41
$20.83
$22.56
$23.35
$24.50
$21.79
$27.03
$22.64
$23.82
Change in Second Generation Net Rent
19.6
%
35.2
%
34.2
%
25.8
%
36.0
%
32.5
%
22.8
%
21.5
%
17.2
%
25.5
%
21.3
%
Change in Cash-Basis Second Generation Net Rent
6.9
%
19.3
%
13.1
%
7.6
%
13.1
%
13.2
%
7.1
%
4.9
%
8.1
%
12.6
%
7.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Same Property Information (2)
 
 
 
 
 
 
 
 
 
 
 
Percent Leased (period end)
92.6
%
93.6
%
93.5
%
94.2
%
94.5
%
94.5
%
94.4
%
93.9
%
93.7
%
94.6
%
94.6
%
Weighted Average Occupancy
89.4
%
92.0
%
91.9
%
91.8
%
92.0
%
91.9
%
92.0
%
91.8
%
90.9
%
91.1
%
91.8
%
Change in Net Operating Income (over prior year period)
4.4
%
2.6
%
1.3
%
2.7
%
1.8
%
2.1
%
4.3
%
4.5
%
0.3
%
1.4
%
2.6
%
Change in Cash-Basis Net Operating Income (over prior year period)
5.3
%
9.4
%
4.1
%
4.4
%
1.2
%
4.7
%
4.0
%
5.5
%
2.9
%
6.0
%
4.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Development Pipeline
 
 
 
 
 
 
 
 
 
 
 
Estimated Project Costs (in thousands) (3)
$490,500
$271,500
$358,800
$362,900
$245,900
$245,900
$199,900
$427,900
$427,900
$565,600
$565,600
Estimated Project Costs (3) / Total Undepreciated Assets
9.9
%
5.5
%
7.2
%
7.2
%
4.7
%
4.7
%
3.8
%
5.5
%
5.4
%
6.9
%
6.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization (4)
 
 
 
 
 
 
 
 
 
 
 
Common Stock Price (period end)
$37.00
$34.72
$38.76
$35.56
$31.60
$31.60
$38.64
$36.17
$37.59
$41.20
$41.20
Common Stock/Units Outstanding (period end in thousands)
106,749

106,805

106,842

106,840

106,840

106,840

106,890

148,507

148,506

148,506

148,506

Equity Market Capitalization (in thousands)
$3,949,713
$3,708,270
$4,141,196
$3,799,230
$3,376,144
$3,376,144
$4,130,230
$5,371,498
$5,582,341
$6,118,447
$6,118,447
Debt (in thousands)
1,262,523

1,262,833

1,261,459

1,236,891

1,234,016

1,234,016

1,287,164

2,007,663

2,023,136

2,305,494

2,305,494

Total Market Capitalization (in thousands)
$5,212,227
$4,971,085
$5,402,655
$5,036,113
$4,610,152
$4,610,152
$5,417,403
$7,379,161
$7,605,477
$8,423,941
$8,423,941
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
9
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS

 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
Credit Ratios (4)
 
 
 
 
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
21.4
%
23.2
%
21.3
%
22.9
%
26.7
%
26.7
%
23.7
%
27.0
%
26.4
%
27.2
%
27.2
%
Net Debt/Total Undepreciated Assets
22.5
%
23.5
%
23.1
%
22.9
%
24.2
%
24.2
%
24.3
%
25.7
%
25.5
%
27.9
%
27.9
%
Net Debt/Annualized Adjusted EBITDAre (5)
3.75

3.77

3.76

3.65

3.68

3.68

3.29

5.21

4.05

4.55

4.55

Fixed Charges Coverage (Adjusted EBITDAre)
5.58

5.39

5.37

5.67

5.39

5.46

6.08

5.57

6.23

5.92

5.95

 
 
 
 
 
 
 
 
 
 
 
 
Dividend Information (4)
 
 
 
 
 
 
 
 
 
 
 
Common Dividend per Share (6)
$0.96
$0.26
$0.26
$0.26
$0.26
$1.04
$0.29
$0.29
$0.29
$0.29
$1.16
Funds From Operations (FFO) Payout Ratio before Transaction Costs
38.5
%
42.2
%
42.2
%
40.5
%
38.3
%
40.8
%
36.1
%
52.1
%
39.7
%
39.3
%
41.4
%
Funds Available for Distribution (FAD) Payout Ratio
60.2
%
61.9
%
61.2
%
59.1
%
62.7
%
61.2
%
56.4
%
131.6
%
53.9
%
60.8
%
67.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operations Ratio (4)
 
 
 
 
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.56
%
0.55
%
0.65
%
0.31
%
0.26
%
0.43
%
0.87
%
0.43
%
0.30
%
0.55
%
0.45
%
 
 
 
 
 
 
 
 
 
 
 
 
Additional Information (4) (in thousands, except per square foot amounts)
 
 
 
 
 
 
 
 
 
 
 
In-Place Gross Rent (per square foot) (7)
$34.19
$34.98
$35.08
$35.23
$36.41
$36.41
$36.95
$36.98
$37.26
$37.44
$37.44
Straight Line Rental Revenue
$30,973
$8,136
$5,690
$5,148
$7,043
$26,017
$8,732
$6,068
$6,522
$8,123
$29,445
Above and Below Market Rents Amortization
$7,221
$1,793
$1,714
$1,730
$1,640
$6,877
$1,670
$1,981
$3,042
$2,846
$9,539
Second Generation Capital Expenditures
$53,485
$11,256
$11,077
$15,152
$19,182
$56,667
$8,074
$40,604
$18,946
$23,085
$90,709
 
 
 
 
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 20 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 19 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 36 for additional information.
(3) 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 32.
(5) Given the timing of the closing of the TIER transaction, the actual calculation of this ratio was temporarily high for the second quarter of 2019 and decreased when a full quarter of TIER operations were included in EBITDAre. Second quarter EBITDAre, annualized for the calculation, included 17 days of Legacy TIER operations while the total impact of the TIER transaction was included in net debt as of June 30, 2019.
(6) The fourth quarter 2016 dividend was declared and paid in the first quarter of 2017.
(7) In-place gross rent equals 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
10
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS


                                 
chart-ab85cc12596e536c9e5.jpgchart-8fb0219d215d5bbeac5.jpg chart-e9c45709e6375b30b80.jpg
chart-8b2bc7efe6875ff3be5.jpg chart-44e922d87f315f9ba63.jpg chart-66e77918bd4b548db72.jpg

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

Cousins Properties
11
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
(amounts in thousands, except per share amounts)
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
Net Operating Income
$
313,206

$
80,578

$
80,195

$
80,858

$
84,432

$
326,063

$
87,731

$
97,417

$
120,642

$
126,000

$
431,790

Gain on Sales of Undepreciated Investment Properties
67

330

2,449


512

3,291

13,132

1,337

21

3,692

18,182

Fee Income
8,632

2,894

1,798

2,519

2,878

10,089

8,728

7,075

7,495

5,220

28,518

Other Income
15,991

1,034

1,212

915

517

3,678

748

306

3,671

3,136

7,861

Reimbursed Expenses
(3,527
)
(942
)
(860
)
(955
)
(1,025
)
(3,782
)
(932
)
(1,047
)
(1,290
)
(735
)
(4,004
)
General and Administrative Expenses
(27,523
)
(6,809
)
(8,071
)
(3,913
)
(3,247
)
(22,040
)
(11,460
)
(8,374
)
(5,852
)
(11,321
)
(37,007
)
Interest Expense
(41,382
)
(11,293
)
(11,305
)
(11,208
)
(12,080
)
(45,886
)
(12,574
)
(13,692
)
(16,377
)
(17,058
)
(59,701
)
Other Expenses
(3,690
)
(695
)
(365
)
(257
)
(325
)
(1,642
)
(404
)
(50,699
)
(1,658
)
(2,286
)
(55,047
)
Depreciation and Amortization of Non-Real Estate Assets
(1,874
)
(473
)
(468
)
(469
)
(462
)
(1,872
)
(456
)
(454
)
(443
)
(446
)
(1,799
)
FFO (1)
$
259,900

$
64,624

$
64,585

$
67,490

$
71,200

$
267,899

$
84,513

$
31,869

$
106,209

$
106,202

$
328,793

TIER transaction costs






3

49,827

1,048

1,999

52,877

FFO before TIER transaction costs
$
259,900

$
64,624

$
64,585

$
67,490

$
71,200

$
267,899

$
84,516

$
81,696

$
107,257

$
108,201

$
381,670

Weighted Average Shares - Diluted
105,824

106,845

106,875

106,880

106,871

106,868

106,901

114,670

148,530

148,534

129,831

FFO per Share (1)
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.28

$
0.72

$
0.72

$
2.53

FFO per Share before TIER transaction costs
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.71

$
0.72

$
0.73

$
2.94




(1) See pages 32 and 35 for reconciliations of Funds From Operations to net income available to common shareholders.

Cousins Properties
12
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
 
 
 
 
Spring & 8th (2)
$
50

$
4,726

$
4,608

$
4,704

$
7,412

$
21,450

$
7,218

$
7,385

$
7,392

$
7,374

$
29,369

Corporate Center (2)
20,889

5,780

5,956

5,947

6,263

23,946

6,386

6,785

6,619

6,694

26,484

Northpark (2)
20,506

5,731

5,814

6,204

6,669

24,418

6,463

6,039

6,521

6,249

25,272

Hearst Tower
26,186

6,493

6,426

6,456

6,544

25,919

6,492

6,512

5,875

6,099

24,978

Hayden Ferry (2)
21,950

5,766

5,433

5,894

6,372

23,465

5,945

6,154

5,721

6,118

23,938

The Domain (2)







1,881

8,926

9,138

19,945

Promenade
16,755

4,240

4,242

4,125

3,895

16,502

4,788

4,708

4,353

4,510

18,359

Fifth Third Center
19,284

4,729

4,647

4,912

4,842

19,130

4,735

4,503

4,408

4,347

17,993

One Eleven Congress
15,146

4,036

4,039

4,034

4,109

16,218

4,446

4,515

4,203

4,215

17,379

Buckhead Plaza (2)
17,516

4,330

4,382

4,367

3,772

16,851

4,047

3,968

3,765

3,299

15,079

San Jacinto Center
16,069

3,635

3,632

3,596

3,789

14,652

3,665

3,679

3,637

3,612

14,593

Colorado Tower
13,557

3,429

3,453

3,511

3,380

13,773

3,480

3,483

3,502

3,526

13,991

3344 Peachtree
10,909

2,994

3,069

2,970

3,149

12,182

3,142

3,328

3,345

3,488

13,303

816 Congress
10,898

2,780

2,911

3,016

2,949

11,656

3,290

2,879

2,969

2,709

11,847

Bank of America Plaza







933

5,103

4,569

10,605

NASCAR Plaza
10,189

2,652

2,590

2,683

2,409

10,334

2,538

2,494

2,586

2,682

10,300

BriarLake Plaza (2)







852

4,623

4,742

10,217

3350 Peachtree
8,673

1,987

1,899

1,888

1,859

7,633

2,011

2,345

2,329

2,272

8,957

The Terrace (2)







749

3,617

3,945

8,311

Burnett Plaza







710

3,556

3,963

8,229

Tempe Gateway
8,079

1,893

2,029

1,997

2,015

7,934

2,165

1,757

1,785

2,043

7,750

1200 Peachtree






775

2,318

2,332

2,266

7,691

8000 Avalon
433

1,357

1,350

1,144

1,581

5,432

1,714

1,916

1,899

1,879

7,408

Terminus (2) (3)









7,330

7,330

3348 Peachtree
6,146

1,405

1,360

1,472

1,483

5,720

1,527

1,499

1,598

1,543

6,167

111 West Rio
4,044

1,314

1,419

1,374

1,370

5,477

1,381

1,380

1,407

1,391

5,559

Legacy Union One







450

2,360

2,347

5,157

The Pointe
4,568

1,236

1,170

1,179

1,230

4,815

1,255

1,235

1,260

1,339

5,089

Meridian Mark Plaza
4,081

920

1,006

1,049

874

3,849

1,018

1,163

1,104

1,085

4,370

Research Park V
2,976

1,012

1,016

1,023

1,015

4,066

1,031

1,023

1,006

1,027

4,087

Domain Point (2)







348

1,571

1,139

3,058

5950 Sherry Lane







220

1,056

1,040

2,316

Woodcrest (2)







274

746

1,213

2,233

Harborview Plaza
3,970

712

516

319

206

1,753

346

553

431

683

2,013

Subtotal - Consolidated
282,153

73,157

72,967

73,864

77,187

297,175

79,858

88,038

111,605

119,876

399,377

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
13
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
Unconsolidated Properties (4)
 
 
 
 
 
 
 
 
 
 
 
Terminus (2) (3)
14,477

3,486

3,415

3,345

3,255

13,501

3,670

3,662

3,216


10,548

Gateway Village (2)
7,047

1,968

1,770

1,873

1,819

7,430

1,837

1,839

1,807

1,964

7,447

Dimensional Place






206

1,770

1,912

1,873

5,761

Carolina Square (2)
705

928

975

747

1,173

3,823

1,097

1,053

1,009

1,208

4,367

Emory University Hospital Midtown
3,913

990

1,031

1,028

975

4,024

1,027

1,036

1,072

1,104

4,239

Other (5)
4,911

49

37

1

23

110

36

19

21

(25
)
51

Subtotal - Unconsolidated
31,053

7,421

7,228

6,994

7,245

28,888

7,873

9,379

9,037

6,124

32,413

 
 
 
 
 
 
 
 
 
 
 
 
Total Net Operating Income (1)
313,206

80,578

80,195

80,858

84,432

326,063

87,731

97,417

120,642

126,000

431,790

 
 
 
 
 
 
 
 
 
 
 
 
Gain on Sales of Undepreciated Investment Properties
 
 
 
 
 
 
 
 
 
 
 
Sales Less Cost of Sales - Consolidated
67




512

512

13,132

1,337

21

3,692

18,182

Sales Less Cost of Sales - Unconsolidated (4)

330

2,449



2,779






Total Gain on Sales of Undepreciated Investment Properties
67

330

2,449


512

3,291

13,132

1,337

21

3,692

18,182

 
 
 
 
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
 
 
 
 
Development Fees
2,140

291

271

951

1,422

2,935

7,022

5,112

5,670

4,254

22,058

Management Fees (6)
5,794

1,524

1,401

1,537

1,449

5,911

1,379

1,548

1,824

966

5,717

Leasing & Other Fees
698

1,079

126

31

7

1,243

327

415

1


743

Total Fee Income
8,632

2,894

1,798

2,519

2,878

10,089

8,728

7,075

7,495

5,220

28,518

 
 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
 
Termination Fees
9,270

360

639

276

273

1,548

520

190

3,575

2,942

7,227

Termination Fees - Unconsolidated (4)
1,294






3

4

9


16

Interest and Other Income
2,248

600

493

468

161

1,722

140

11

3

92

246

Interest and Other Income - Unconsolidated (4)
921

74

80

78

83

315

85

101

84

102

372

Gain on Extinguishment of Debt
2,258



93


93






Total Other Income
15,991

1,034

1,212

915

517

3,678

748

306

3,671

3,136

7,861

 
 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
24,623

3,928

3,010

3,434

3,395

13,767

9,476

7,381

11,166

8,356

36,379

 
 
 
 
 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,527
)
(942
)
(860
)
(955
)
(1,025
)
(3,782
)
(932
)
(1,047
)
(1,290
)
(735
)
(4,004
)
 
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expenses
(27,523
)
(6,809
)
(8,071
)
(3,913
)
(3,247
)
(22,040
)
(11,460
)
(8,374
)
(5,852
)
(11,321
)
(37,007
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 
 
 
 
 
 
 
 
 
 
2017 Senior Notes, Unsecured ($250M)
(4,842
)
(2,489
)
(2,490
)
(2,488
)
(2,491
)
(9,958
)
(2,490
)
(2,489
)
(2,490
)
(2,489
)
(9,958
)
Term Loan, Unsecured
(6,198
)
(1,858
)
(2,088
)
(2,205
)
(2,344
)
(8,495
)
(2,422
)
(2,421
)
(2,302
)
(2,049
)
(9,194
)
Credit Facility, Unsecured
(3,050
)
(742
)
(754
)
(754
)
(773
)
(3,023
)
(1,289
)
(1,705
)
(1,628
)
(2,703
)
(7,325
)
2019 Senior Notes, Unsecured ($275M)







(366
)
(2,744
)
(2,743
)
(5,853
)
2019 Senior Notes, Unsecured ($250M)







(326
)
(2,440
)
(2,441
)
(5,207
)
Fifth Third Center
(5,052
)
(1,247
)
(1,241
)
(1,235
)
(1,228
)
(4,951
)
(1,221
)
(1,215
)
(1,208
)
(1,202
)
(4,846
)
Promenade
(4,492
)
(1,102
)
(1,095
)
(1,085
)
(1,078
)
(4,360
)
(1,069
)
(1,060
)
(1,052
)
(1,043
)
(4,224
)
Colorado Tower
(4,236
)
(1,059
)
(1,059
)
(1,059
)
(1,056
)
(4,233
)
(1,051
)
(1,046
)
(1,040
)
(1,036
)
(4,173
)
2017 Senior Notes, Unsecured ($100M)
(2,937
)
(1,036
)
(1,037
)
(1,036
)
(1,036
)
(4,145
)
(1,036
)
(1,037
)
(1,036
)
(1,036
)
(4,145
)
816 Congress
(3,233
)
(799
)
(795
)
(792
)
(787
)
(3,173
)
(784
)
(779
)
(776
)
(772
)
(3,111
)

Cousins Properties
14
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2019 Senior Notes, Unsecured ($125M)







(160
)
(1,197
)
(1,197
)
(2,554
)
Terminus (2) (3)









(1,540
)
(1,540
)
Meridian Mark Plaza
(1,483
)
(366
)
(368
)
(359
)
(360
)
(1,453
)
(358
)
(357
)
(354
)
(352
)
(1,421
)
Legacy Union One







(98
)
(536
)
(535
)
(1,169
)
Other
(7,243
)
(175
)
(177
)
(74
)
(115
)
(541
)
(115
)
(116
)
(115
)
(116
)
(462
)
Capitalized (7)
9,242

1,095

1,390

1,536

881

4,902

1,015

1,116

4,218

4,870

11,219

Subtotal - Consolidated
(33,524
)
(9,778
)
(9,714
)
(9,551
)
(10,387
)
(39,430
)
(10,820
)
(12,059
)
(14,700
)
(16,384
)
(53,963
)
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 
 
 
 
 
 
 
 
 
 
Terminus (2) (3)
(4,823
)
(1,001
)
(995
)
(988
)
(992
)
(3,976
)
(1,038
)
(905
)
(961
)

(2,904
)
Carolina Square (2)
(184
)
(197
)
(281
)
(355
)
(390
)
(1,223
)
(406
)
(420
)
(409
)
(370
)
(1,605
)
Emory University Hospital Midtown
(1,285
)
(317
)
(315
)
(314
)
(311
)
(1,257
)
(310
)
(308
)
(307
)
(304
)
(1,229
)
Other
(1,566
)










Subtotal - Unconsolidated
(7,858
)
(1,515
)
(1,591
)
(1,657
)
(1,693
)
(6,456
)
(1,754
)
(1,633
)
(1,677
)
(674
)
(5,738
)
 
 
 
 
 
 
 
 
 
 
 
 
Total Interest Expense
(41,382
)
(11,293
)
(11,305
)
(11,208
)
(12,080
)
(45,886
)
(12,574
)
(13,692
)
(16,377
)
(17,058
)
(59,701
)
 
 
 
 
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
 
 
 
 
Severance
(446
)
(195
)
128

4

3

(60
)
(23
)
(23
)
(84
)
(24
)
(154
)
Partners' share of FFO in consolidated joint ventures
(16
)
(144
)
(134
)
(121
)
(159
)
(558
)
(171
)
(192
)
(249
)
(221
)
(833
)
Property Taxes and Other Holding Costs
(764
)
(130
)
(152
)
(148
)
(153
)
(583
)
(184
)
(209
)
(392
)
(290
)
(1,075
)
Loss on Extinguishment of Debt

(85
)



(85
)





Income Tax Expense







(242
)
242

298

298

Predevelopment & Other Costs
(803
)
(50
)
(70
)
8

4

(108
)
(23
)
(206
)
(127
)
(46
)
(402
)
Transaction Costs - TIER






(3
)
(49,827
)
(1,048
)
(1,999
)
(52,877
)
Transaction/Acquisition Costs - Other (8)
(1,661
)
(91
)
(137
)