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1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
Cousins COVID-19 Response
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
 
Q1 2020 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: 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, particularly in Atlanta, Austin, Charlotte, Phoenix, Tampa, and Dallas where we have high concentrations of our lease revenues, including the impact of high unemployment, volatility in the public equity and debt markets, and international economic and other conditions; the impact of a public health crisis, including the COVID-19 pandemic, and the governmental and third party response to such a crisis, which may affect our key personnel, our major tenants, and the costs of operating our assets; the impact of social distancing, shelter-in-place, border closings, travel restrictions, remote work requirements, and similar governmental and private measures taken to combat the spread of the COVID-19 pandemic on our operations and our tenants; 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; any adverse change in the financial condition of one or more of our 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; 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
Q1 2020 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES ANNOUNCES FIRST QUARTER 2020 RESULTS
Reports April Office Rent Collections of 96%

Highlights
Net income per share diluted was $1.18.
Funds from operations per share was $0.76.
Same property net operating income on a cash basis increased 11.4%.
Second generation net rent per square foot on a cash basis increased 14.3%.
Executed 475,783 square feet of office leases.
Sold Hearst Tower, a 966,000 square foot office property in Charlotte, for a gross sales price of $455.5 million and recognized a gain of $90.9 million.
Sold its interest in the Gateway Village joint venture to its venture partner for a gross sales price of $52.2 million and recognized a gain of $44.9 million. This sales price generated 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.
Sold Woodcrest, a 386,000 square foot office property in Cherry Hill, New Jersey, for a gross sales price of $25.3 million.
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 $1.3 million on this transaction.
Commenced development of 100 Mill, a 287,000 square foot office building in Phoenix, with a total estimated project cost of $153 million and with pre-leasing of 44%, anchored by a growing Fortune 50 tenant.
ATLANTA (April 30, 2020) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended
March 31, 2020
.
"At Cousins Properties, the health and safety of our customers and employees is our top priority. This is more important than ever as our country faces the current health crisis. We truly appreciate the efforts of the brave healthcare workers. In these challenging times, I am also proud that we have taken great care to ensure that we are staying true to our values and principles and we are giving back to our communities as well," said Colin Connolly, president and chief executive officer of Cousins Properties.
"While our first quarter results are fantastic, we are laser focused on what is to come. Cousins has planned both operationally and financially for potential disruptions, and we are well-prepared for the unprecedented change in the market. We have a diverse and financially strong customer base in our trophy portfolio in growing Sun Belt markets. Additionally, our balance sheet is exceptionally strong, with low leverage and liquidity of approximately $1.1 billion. Our $566 million development pipeline remains on time and on budget as construction continues across our markets, with 82% of the office pipeline committed.
"Our Cousins team continues to work tirelessly in all of our markets. Our essential property management and engineering teams have provided outstanding service to customers under the most difficult circumstances. I thank our entire team for their resilience and dedication to Cousins."

Cousins Properties
4
Q1 2020 Supplemental Information

EARNINGS RELEASE


Financial Results
Net income available to common stockholders was $174.9 million, or $1.18 per share, for the first quarter of 2020, compared with net income available to common stockholders of $35.3 million, or $0.34 per share, for the first quarter of 2019.
Funds From Operations ("FFO") was $112.7 million, or $0.76 per share, for the first quarter of 2020, compared with $84.5 million, or $0.79 per share, for the first quarter of 2019.

2020 Guidance
Due to uncertainty driven by the COVID-19 pandemic, the Company is withdrawing its previous 2020 earnings guidance. However, the Company is providing additional financial information, some of which is related to the effects of COVID-19 and some of which is not, to assist investors as they assess the Company’s outlook for the balance of 2020. This information reflects the Company’s current knowledge and estimates and may change as the impact of COVID-19 continues to develop. All information covers full year 2020 results.
An elimination of all remaining speculative leasing commencements for the balance of the year may reduce net operating income by approximately $1.5 million. Although the Company continues to have discussions with potential new customers for 2020 occupancy, the certainty and timing remains fluid.
Based on relief agreements we have completed, or are in active negotiations to complete, rent deferrals may reduce net operating income by $1 million to $3 million.
A reduction in parking revenue may reduce net operating income by $3.5 million to $9.5 million. This is primarily due to a potential reduction in transient parking, which comprises approximately 20% of total parking revenue.
General and administrative expenses may decrease by $3 million to $5 million due to lower long-term compensation and other potential non-compensation cost reduction measures.
Interest and other expense, net of capitalized interest, may decrease by $2 million to $4 million primarily due to lower short-term interest rates.
Fee and other income will increase by approximately $2 million due to a termination fee received from Parsley Energy at Colorado Tower in Austin. The Company has leased approximately 74,000 square feet of space currently occupied by Parsley to a leading global law firm. There will be a corresponding reduction of approximately $1 million in net operating income as this transition occurs.
This information does not include: 1) any incremental property operating expense increases or decreases, 2) any impacts associated with rent deferral relief agreements beyond those referenced above, and 3) any impacts associated with customer defaults, which although possible, are difficult to predict with any accuracy.



Cousins Properties
5
Q1 2020 Supplemental Information

EARNINGS RELEASE


Investor Conference Call and Webcast
The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Friday, May 1, 2020, to discuss the results of the quarter ended March 31, 2020. 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 First 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 10142121. 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
Q1 2020 Supplemental Information

COUSINS COVID-19 RESPONSE

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Cousins Properties
7
Q1 2020 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
March 31, 2020
 
December 31, 2019
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $633,654 and $577,139 in 2020 and 2019, respectively
$
5,740,337

 
$
5,669,324

Projects under development
368,414

 
410,097

Land
97,354

 
116,860

 
6,206,105

 
6,196,281

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
124,632

 
15,603

Restricted cash
1,947

 
2,005

Notes and accounts receivable
28,533

 
23,680

Deferred rents receivable
109,458

 
102,314

Investment in unconsolidated joint ventures
128,916

 
133,884

Intangible assets, net
240,286

 
257,649

Other assets
62,057

 
59,449

Total assets
$
6,901,934

 
$
7,151,447

Liabilities:
 
 
 
Notes payable
$
1,944,034

 
$
2,222,975

Accounts payable and accrued expenses
144,984

 
209,904

Deferred income
55,290

 
52,269

Intangible liabilities, net of accumulated amortization of $61,084 and $55,798 in 2020 and 2019, respectively
77,819

 
83,105

Other liabilities
120,809

 
134,128

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

 
21,231

Total liabilities
2,342,936

 
2,723,612

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

 
1,717

Common stock, $1 par value, 300,000,000 shares authorized, 151,124,621 and 149,347,382 shares issued in 2020 and 2019, respectively
151,125

 
149,347

Additional paid-in capital
5,538,875

 
5,493,883

Treasury stock at cost, 2,584,933 shares in 2020 and 2019
(148,473
)
 
(148,473
)
Distributions in excess of cumulative net income
(1,006,820
)
 
(1,137,200
)
Total stockholders' investment
4,534,707

 
4,359,274

Nonredeemable noncontrolling interests
24,291

 
68,561

Total equity
4,558,998

 
4,427,835

Total liabilities and equity
$
6,901,934

 
$
7,151,447


Cousins Properties
8
Q1 2020 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended March 31,
 
2020
 
2019
Revenues:
 
 
 
Rental property revenues
$
189,129

 
$
123,865

Fee income
4,732

 
8,728

Other
37

 
140

 
193,898

 
132,733

Expenses:
 
 
 
Rental property operating expenses
64,538

 
43,487

Reimbursed expenses
521

 
932

General and administrative expenses
5,652

 
11,460

Interest expense
15,904

 
10,820

Depreciation and amortization
71,614

 
45,861

Transaction costs
365

 
3

Other
566

 
180

 
159,160

 
112,743

Income from unconsolidated joint ventures
3,425

 
2,904

Gain on sales of investments in unconsolidated joint ventures
46,230

 

Gain on investment property transactions
90,916

 
13,111

Net income
175,309

 
36,005

Net income attributable to noncontrolling interests
(366
)
 
(664
)
Net income available to common stockholders
$
174,943

 
$
35,341

 
 
 
 
Net income per common share — basic
$
1.19

 
$
0.34

Net income per common share — diluted
$
1.18

 
$
0.34

Weighted average shares — basic
147,424

 
105,127

Weighted average shares — diluted
148,561

 
106,901

 
 
 
 



Cousins Properties
9
Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS

 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
Property Statistics
 
 
 
 
 
 
 
Consolidated Operating Properties
23

24

33

33

34

34

32

Consolidated Rentable Square Feet (in thousands)
12,203

12,573

18,372

18,372

19,599

19,599

18,249

Unconsolidated Operating Properties
4

5

5

5

4

4

3

Unconsolidated Rentable Square Feet (in thousands)
3,113

3,394

3,394

3,394

2,168

2,168

1,107

Total Operating Properties
27

29

38

38

38

38

35

Total Rentable Square Feet (in thousands)
15,316

15,967

21,766

21,766

21,767

21,767

19,356

 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
Net Leased during the Period (square feet in thousands)
1,597

682

1,089

741

562

3,074

476

Net Effective Rent Calculation (per square foot)
 
 
 
 
 
 
 
Net Rent
$31.01
$27.86
$29.34
$33.66
$31.38
$30.43
$34.88
Net Free Rent
(0.85)

(0.49)

(0.52)

(0.64)

(1.01)

(0.63)

(1.92)

Leasing Commissions
(2.41)

(1.13)

(2.34)

(2.86)

(2.84)

(2.29)

(2.68)

Tenant Improvements
(4.40)

(1.74)

(4.69)

(3.13)

(4.89)

(3.69)

(5.27)

Leasing Costs
(7.66)

(3.36)

(7.55)

(6.63)

(8.74)

(6.61)

(9.87)

Net Effective Rent
$23.35
$24.50
$21.79
$27.03
$22.64
$23.82
$25.01
Change in Second Generation Net Rent
32.5
%
22.8
%
21.5
%
17.2
%
25.5
%
21.3
%
26.9
%
Change in Cash-Basis Second Generation Net Rent
13.2
%
7.1
%
4.9
%
8.1
%
12.6
%
7.7
%
14.3
%
 
 
 
 
 
 
 
 
Same Property Information (2)
 
 
 
 
 
 
 
Percent Leased (period end)
94.5
%
94.4
%
93.9
%
93.7
%
94.6
%
94.6
%
94.8
%
Weighted Average Occupancy
91.9
%
92.0
%
91.8
%
90.9
%
91.1
%
91.8
%
91.4
%
Change in Net Operating Income (over prior year period)
2.1
%
4.3
%
4.5
%
0.3
%
1.4
%
2.6
%
3.2
%
Change in Cash-Basis Net Operating Income (over prior year period)
4.7
%
4.0
%
5.5
%
2.9
%
6.0
%
4.8
%
11.4
%
 
 
 
 
 
 
 
 
Development Pipeline (3)
 
 
 
 
 
 
 
Estimated Project Costs (in thousands)
$245,900
$199,900
$427,900
$427,900
$565,600
$565,600
$565,600
Estimated Project Costs/ Total Undepreciated Assets
4.7
%
3.8
%
5.5
%
5.4
%
6.9
%
6.9
%
7.1
%
 
 
 
 
 
 
 
 
Market Capitalization (4)
 
 
 
 
 
 
 
Common Stock Price (period end)
$31.60
$38.64
$36.17
$37.59
$41.20
$41.20
$29.27
Common Stock/Units Outstanding (period end in thousands)
106,840

106,890

148,507

148,506

148,506

148,506

148,565

Equity Market Capitalization (in thousands)
$3,376,144
$4,130,230
$5,371,498
$5,582,341
$6,118,447
$6,118,447
$4,348,498
Debt (in thousands)
1,234,016

1,287,164

2,007,663

2,023,136

2,305,494

2,305,494

2,036,955

Total Market Capitalization (in thousands)
$4,610,152
$5,417,403
$7,379,161
$7,605,477
$8,423,941
$8,423,941
$6,385,453
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
10
Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS

 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
Credit Ratios (4)
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
26.5
%
23.4
%
26.8
%
26.2
%
27.1
%
27.1
%
29.8
%
Net Debt/Total Undepreciated Assets
24.0
%
24.1
%
25.5
%
25.2
%
27.8
%
27.8
%
24.0
%
Net Debt/Annualized Adjusted EBITDAre (5)
3.64

3.26

5.15

4.02

4.55

4.55

3.66

Fixed Charges Coverage (Adjusted EBITDAre)
5.46

6.08

5.58

6.21

5.91

5.95

6.22

 
 
 
 
 
 
 
 
Dividend Information (4)
 
 
 
 
 
 
 
Common Dividend per Share
$1.04
$0.29
$0.29
$0.29
$0.29
$1.16
$0.30
Funds From Operations (FFO) Payout Ratio before Transaction Costs
40.8
%
36.1
%
52.1
%
39.7
%
39.3
%
41.4
%
39.4
%
Funds Available for Distribution (FAD) Payout Ratio
61.2
%
56.4
%
131.6
%
53.9
%
60.8
%
67.2
%
59.8
%
 
 
 
 
 
 
 
 
Operations Ratio (4)
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.43
%
0.87
%
0.43
%
0.30
%
0.55
%
0.45
%
0.28
%
 
 
 
 
 
 
 
 
Additional Information (4) (in thousands, except per square foot amounts)
 
 
 
 
 
 
 
In-Place Gross Rent (per square foot) (6)
$36.41
$36.95
$36.98
$37.26
$37.44
$37.44
$39.29
Straight Line Rental Revenue
$26,017
$8,732
$6,068
$6,522
$8,123
$29,445
$9,895
Above and Below Market Rents Amortization
$6,877
$1,670
$1,981
$3,042
$2,846
$9,539
$2,808
Second Generation Capital Expenditures
$56,667
$8,074
$40,604
$18,946
$23,085
$90,709
$23,817
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 21 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 20 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 37 for additional information.
(3) Cousins' share of estimated project costs. See Development Pipeline on page 27 for additional detail.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 33.
(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) 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
11
Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS


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

Cousins Properties
12
Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
(amounts in thousands, except per share amounts)
 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
Net Operating Income
$
326,063

$
87,731

$
97,417

$
120,642

$
126,000

$
431,790

$
127,782

Gain on Sales of Undepreciated Investment Properties
3,291

13,132

1,337

21

3,692

18,182

1,335

Fee Income
10,089

8,728

7,075

7,495

5,220

28,518

4,732

Other Income
3,678

748

306

3,671

3,136

7,861

2,994

Reimbursed Expenses
(3,782
)
(932
)
(1,047
)
(1,290
)
(735
)
(4,004
)
(521
)
General and Administrative Expenses
(22,040
)
(11,460
)
(8,374
)
(5,852
)
(11,321
)
(37,007
)
(5,652
)
Interest Expense
(45,886
)
(12,574
)
(13,692
)
(16,377
)
(17,058
)
(59,701
)
(16,554
)
Other Expenses
(1,642
)
(404
)
(50,699
)
(1,658
)
(2,286
)
(55,047
)
(1,188
)
Depreciation and Amortization of Non-Real Estate Assets
(1,872
)
(456
)
(454
)
(443
)
(446
)
(1,799
)
(207
)
FFO (1)
$
267,899

$
84,513

$
31,869

$
106,209

$
106,202

$
328,793

$
112,721

TIER transaction costs

3

49,827

1,048

1,999

52,877

365

FFO before TIER transaction costs
$
267,899

$
84,516

$
81,696

$
107,257

$
108,201

$
381,670

$
113,086

Weighted Average Shares - Diluted
106,868

106,901

114,670

148,530

148,534

129,831

148,561

FFO per Share (1)
$
2.51

$
0.79

$
0.28

$
0.72

$
0.72

$
2.53

$
0.76

FFO per Share before TIER transaction costs
$
2.51

$
0.79

$
0.71

$
0.72

$
0.73

$
2.94

$
0.76




(1) See pages 33 and 36 for reconciliations of Funds From Operations to net income available to common shareholders.

Cousins Properties
13
Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
The Domain (2)
$

$

$
1,881

$
8,926

$
9,138

$
19,945

$
9,068

Spring & 8th (2)
21,450

7,218

7,385

7,392

7,374

29,369

7,351

Terminus (2) (3)




7,330

7,330

6,949

Northpark (2)
24,418

6,463

6,039

6,521

6,249

25,272

6,916

Hayden Ferry (2)
23,465

5,945

6,154

5,721

6,118

23,938

6,321

Corporate Center (2)
23,946

6,386

6,785

6,619

6,694

26,484

6,157

Bank of America Plaza


933

5,103

4,569

10,605

5,323

3344 Peachtree
12,182

3,142

3,328

3,345

3,488

13,303

5,267

BriarLake Plaza (2)


852

4,623

4,742

10,217

4,681

Fifth Third Center
19,130

4,735

4,503

4,408

4,347

17,993

4,573

Promenade
16,502

4,788

4,708

4,353

4,510

18,359

4,506

One Eleven Congress
16,218

4,446

4,515

4,203

4,215

17,379

4,396

The Terrace (2)


749

3,617

3,945

8,311

3,988

Burnett Plaza


710

3,556

3,963

8,229

3,631

Buckhead Plaza (2)
16,851

4,047

3,968

3,765

3,299

15,079

3,617

San Jacinto Center
14,652

3,665

3,679

3,637

3,612

14,593

3,617

Colorado Tower
13,773

3,480

3,483

3,502

3,526

13,991

3,350

NASCAR Plaza
10,334

2,538

2,494

2,586

2,682

10,300

2,750

816 Congress
11,656

3,290

2,879

2,969

2,709

11,847

2,636

3350 Peachtree
7,633

2,011

2,345

2,329

2,272

8,957

2,450

Legacy Union One


450

2,360

2,347

5,157

2,400

1200 Peachtree

775

2,318

2,332

2,266

7,691

2,332

Tempe Gateway
7,934

2,165

1,757

1,785

2,043

7,750

2,084

8000 Avalon
5,432

1,714

1,916

1,899

1,879

7,408

1,759

3348 Peachtree
5,720

1,527

1,499

1,598

1,543

6,167

1,502

111 West Rio
5,477

1,381

1,380

1,407

1,391

5,559

1,388

5950 Sherry Lane


220

1,056

1,040

2,316

1,239

The Pointe
4,815

1,255

1,235

1,260

1,339

5,089

1,192

Domain Point (2)


348

1,571

1,139

3,058

1,187

Meridian Mark Plaza
3,849

1,018

1,163

1,104

1,085

4,370

1,067

Research Park V
4,066

1,031

1,023

1,006

1,027

4,087

1,029

Harborview Plaza
1,753

346

553

431

683

2,013

795

Other (4)
25,919

6,492

6,786

6,621

7,312

27,211

6,226

Subtotal - Consolidated
297,175

79,858

88,038

111,605

119,876

399,377

121,747

 
 
 
 
 
 
 
 

Cousins Properties
14
Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
Unconsolidated Properties (5)
 
 
 
 
 
 
 
Dimensional Place

206

1,770

1,912

1,873

5,761

1,900

Carolina Square (2)
3,823

1,097

1,053

1,009

1,208

4,367

1,255

Emory University Hospital Midtown
4,024

1,027

1,036

1,072

1,104

4,239

1,078

Terminus (2) (3)
13,501

3,670

3,662

3,216


10,548


Other (4)
7,540

1,873

1,858

1,828

1,939

7,498

1,802

Subtotal - Unconsolidated
28,888

7,873

9,379

9,037

6,124

32,413

6,035

 
 
 
 
 
 
 
 
Total Net Operating Income (1)
326,063

87,731

97,417

120,642

126,000

431,790

127,782

 
 
 
 
 
 
 
 
Gain on Sales of Undepreciated Investment Properties
 
 
 
 
 
 
 
Sales Less Cost of Sales - Consolidated
512

13,132

1,337

21

3,692

18,182


Sales Less Cost of Sales - Unconsolidated (5)
2,779






1,335

Total Gain on Sales of Undepreciated Investment Properties
3,291

13,132

1,337

21

3,692

18,182

1,335

 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
Development Fees
2,935

7,022

5,112

5,670

4,254

22,058

3,835

Management Fees (6)
5,911

1,379

1,548

1,824

966

5,717

762

Leasing & Other Fees
1,243

327

415

1


743

135

Total Fee Income
10,089

8,728

7,075

7,495

5,220

28,518

4,732

 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
Termination Fees
1,548

520

190

3,575

2,942

7,227

2,844

Termination Fees - Unconsolidated (5)

3

4

9


16

1

Interest and Other Income
1,722

140

11

3

92

246

37

Interest and Other Income - Unconsolidated (5)
315

85

101

84

102

372

112

Gain on Extinguishment of Debt
93







Total Other Income
3,678

748

306

3,671

3,136

7,861

2,994

 
 
 
 
 
 
 
 
Total Fee and Other Income
13,767

9,476

7,381

11,166

8,356

36,379

7,726

 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,782
)
(932
)
(1,047
)
(1,290
)
(735
)
(4,004
)
(521
)
 
 
 
 
 
 
 
 
General and Administrative Expenses
(22,040
)
(11,460
)
(8,374
)
(5,852
)
(11,321
)
(37,007
)
(5,652
)
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
Consolidated Debt
 
 
 
 
 
 
 
Credit Facility, Unsecured
(3,023
)
(1,289
)
(1,705
)
(1,628
)
(2,703
)
(7,325
)
(3,081
)
2019 Senior Notes, Unsecured ($275M)


(366
)
(2,744
)
(2,743
)
(5,853
)
(2,744
)
2017 Senior Notes, Unsecured ($250M)
(9,958
)
(2,490
)
(2,489
)
(2,490
)
(2,489
)
(9,958
)
(2,489
)
2019 Senior Notes, Unsecured ($250M)


(326
)
(2,440
)
(2,441
)
(5,207
)
(2,441
)
Term Loan, Unsecured
(8,495
)
(2,422
)
(2,421
)
(2,302
)
(2,049
)
(9,194
)
(1,891
)
Terminus (2) (3)




(1,540
)
(1,540
)
(1,526
)
2019 Senior Notes, Unsecured ($125M)


(160
)
(1,197
)
(1,197
)
(2,554
)
(1,197
)
Fifth Third Center
(4,951
)
(1,221
)
(1,215
)
(1,208
)
(1,202
)
(4,846
)
(1,194
)
2017 Senior Notes, Unsecured ($100M)
(4,145
)
(1,036
)
(1,037
)
(1,036
)
(1,036
)
(4,145
)
(1,036
)
Promenade
(4,360
)
(1,069
)
(1,060
)
(1,052
)
(1,043
)
(4,224
)
(1,034
)
Colorado Tower
(4,233
)
(1,051
)
(1,046
)
(1,040
)
(1,036
)
(4,173
)
(1,030
)

Cousins Properties
15
Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
(amounts in thousands, except per share amounts)
 
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
2020 1st
816 Congress
(3,173
)
(784
)
(779
)
(776
)
(772
)
(3,111
)
(768
)
Legacy Union One


(98
)
(536
)
(535
)
(1,169
)
(528
)
Other (4)
(1,994
)
(473
)
(473
)
(469
)
(468
)
(1,883
)
(254
)
Capitalized (7)
4,902

1,015

1,116

4,218

4,870

11,219

5,309

Subtotal - Consolidated
(39,430
)
(10,820
)
(12,059
)
(14,700
)
(16,384
)
(53,963
)
(15,904
)
 
 
 
 
 
 
 
 
Unconsolidated Debt (5)
 
 
 
 
 
 
 
Terminus (2) (3)
(3,976
)
(1,038
)
(905
)
(961
)

(2,904
)

Carolina Square (2)
(1,223
)
(406
)
(420
)
(409
)
(370
)
(1,605
)
(347
)
Emory University Hospital Midtown
(1,257
)
(310
)
(308
)
(307
)
(304
)
(1,229
)
(303
)
Subtotal - Unconsolidated
(6,456
)
(1,754
)
(1,633
)
(1,677
)
(674
)
(5,738
)
(650
)
 
 
 
 
 
 
 
 
Total Interest Expense
(45,886
)
(12,574
)
(13,692
)
(16,377
)
(17,058
)
(59,701
)
(16,554
)
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
Severance
(60
)
(23
)
(23
)
(84
)
(24
)
(154
)
(51
)
Partners' Share of FFO in Consolidated Joint Ventures
(558
)
(171
)
(192
)
(249
)
(221
)
(833
)
(213
)
Property Taxes and Other Holding Costs
(583
)
(184
)
(209
)
(392
)
(290
)
(1,075
)
(356
)
Loss on Extinguishment of Debt
(85
)






Income Tax Expense


(242
)
242

298

298

(50
)
Predevelopment & Other Costs
(108
)
(23
)
(206
)
(127
)
(46
)
(402
)
(153
)
Transaction Costs - TIER

(3
)
(49,827
)
(1,048
)
(1,999
)
(52,877
)
(365
)
Transaction/Acquisition Costs - Other
(248
)



(4
)
(4
)

Total Other Expenses
(1,642
)
(404
)
(50,699
)
(1,658
)
(2,286
)
(55,047
)
(1,188
)
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
(1,872
)
(456
)
(454
)
(443
)
(446
)
(1,799
)
(207
)
 
 
 
 
 
 
 
 
FFO (1)
$
267,899

$
84,513

$
31,869

$
106,209

$
106,202

$
328,793

$
112,721

TIER transaction costs

3

49,827

1,048

1,999

52,877

365

FFO before TIER transaction costs
$
267,899

$
84,516

$
81,696

$
107,257

$
108,201

$
381,670

$
113,086

Weighted Average Shares - Diluted
106,868

106,901

114,670

148,530

148,534

129,831

148,561

FFO per Share (1)
$
2.51

$
0.79

$
0.28

$
0.72

$
0.72

$
2.53

$
0.76

FFO per Share before TIER transaction costs
$
2.51

$
0.79

$
0.71

$
0.72

$
0.73

$
2.94

$
0.76

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 33.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) On October 1, 2019, the Company purchased its partner's 50% interest in Terminus Office Holdings LLC.
(4) Primarily represents properties sold and loans repaid prior to March 31, 2020 that are not considered discontinued operations. The Company sold the Hearst Tower and Woodcrest operating properties and its interest in the Gateway Village
unconsolidated joint venture in the first quarter of 2020. Includes preliminary operational activity at 120 West Trinity and 10000 Avalon, which are in the final stages of development.
(5) 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.
(6) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.
(7) Amounts of interest expense related to consolidated debt that is capitalized to consolidated development projects and equity in unconsolidated development projects.

Cousins Properties
16
Q1 2020 Supplemental Information

PORTFOLIO STATISTICS

Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased
 
Weighted Average Occupancy (1)
 
% of Total
Net Operating
Income (2)
 
Property Level Debt ($000) (3)
 
 
 
 
1Q20
 
4Q19
 
1Q20
 
4Q19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spring & 8th (4)
 
765,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
6.1%
 
$

Terminus (4) (5)
 
1,226,000

 
Consolidated
 
100%
 
83.5%
 
83.3%
 
78.2%
 
78.8%
 
5.8%
 
201,376

Northpark (4)
 
1,539,000

 
Consolidated
 
100%
 
93.1%
 
92.8%
 
88.5%
 
85.7%
 
5.8%
 

3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
97.1%
 
94.2%
 
86.4%
 
89.3%
 
4.4%
 

Promenade
 
777,000

 
Consolidated
 
100%
 
90.5%
 
90.5%
 
89.6%
 
89.6%
 
3.8%
 
95,005

Buckhead Plaza (4)
 
667,000

 
Consolidated
 
100%
 
77.5%
 
75.6%
 
72.6%
 
73.9%
 
3.0%
 

3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
95.2%
 
95.2%
 
95.2%
 
95.0%
 
2.0%
 

1200 Peachtree (5)
 
370,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.9%
 

8000 Avalon
 
229,000

 
Consolidated
 
90%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.6%
 

3348 Peachtree
 
258,000

 
Consolidated
 
100%
 
92.3%
 
92.3%
 
91.7%
 
92.1%
 
1.3%
 

Emory University Hospital Midtown
 
358,000

 
Unconsolidated
 
50%
 
98.3%
 
99.1%
 
97.7%
 
98.5%
 
0.9%
 
33,771

Meridian Mark Plaza
 
160,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
0.9%
 

ATLANTA
 
7,246,000

 
 
 
 
 
91.6%
 
91.2%
 
88.4%
 
88.2%
 
37.5%
 
330,152

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Domain (4) (5)
 
1,287,000

 
Consolidated
 
100%
 
99.7%
 
99.7%
 
89.3%
 
89.2%
 
7.6%
 

One Eleven Congress
 
519,000

 
Consolidated
 
100%
 
95.0%
 
97.1%
 
88.8%
 
88.3%
 
3.7%
 

The Terrace (4) (5)
 
619,000

 
Consolidated
 
100%
 
89.9%
 
89.9%
 
86.6%
 
88.5%
 
3.3%
 

San Jacinto Center
 
399,000

 
Consolidated
 
100%
 
96.2%
 
97.9%
 
87.8%
 
89.9%
 
3.0%
 

Colorado Tower
 
373,000

 
Consolidated
 
100%
 
97.8%
 
100.0%
 
98.7%
 
100.0%
 
2.8%
 
115,868

816 Congress
 
435,000

 
Consolidated
 
100%
 
90.2%
 
88.8%
 
86.3%
 
88.8%
 
2.2%
 
79,177

Domain Point (4) (5)
 
243,000

 
Consolidated
 
96.5%
 
90.6%
 
88.1%
 
76.8%
 
79.6%
 
1.0%
 

Research Park V
 
173,000

 
Consolidated
 
100%
 
97.1%
 
97.1%
 
97.1%
 
97.1%
 
0.9%
 

AUSTIN
 
4,048,000

 
 
 
 
 
95.4%
 
95.8%
 
88.8%
 
89.8%
 
24.5%
 
195,045

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank of America Plaza (5)
 
891,000

 
Consolidated
 
100%
 
85.6%
 
90.4%
 
90.3%
 
88.4%
 
4.4%
 

Fifth Third Center
 
692,000

 
Consolidated
 
100%
 
99.8%
 
96.2%
 
96.2%
 
92.6%
 
3.8%
 
139,091

NASCAR Plaza
 
394,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
99.3%
 
98.4%
 
2.3%
 

Dimensional Place (5)
 
281,000

 
Unconsolidated
 
50%
 
95.6%
 
95.6%
 
94.7%
 
94.7%
 
1.6%
 

CHARLOTTE
 
2,258,000

 
 
 
 
 
93.6%
 
94.4%
 
94.2%
 
92.1%
 
12.1%
 
139,091

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hayden Ferry (4)
 
789,000

 
Consolidated
 
100%
 
97.8%
 
97.8%
 
93.5%
 
92.8%
 
5.3%
 

Tempe Gateway
 
264,000

 
Consolidated
 
100%
 
94.8%
 
94.8%
 
94.8%
 
94.8%
 
1.7%
 

111 West Rio
 
225,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.2%
 

PHOENIX
 
1,278,000

 
 
 
 
 
97.6%
 
97.6%
 
94.9%
 
94.5%
 
8.2%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Center (4)
 
1,226,000

 
Consolidated
 
100%
 
97.9%
 
98.6%
 
93.2%
 
96.3%
 
5.1%
 

The Pointe
 
253,000

 
Consolidated
 
100%
 
94.4%
 
94.9%
 
93.4%
 
96.1%
 
1.0%
 

Harborview Plaza
 
205,000

 
Consolidated
 
100%
 
80.0%
 
80.0%
 
79.1%
 
62.8%
 
0.7%
 

TAMPA
 
1,684,000

 
 
 
 
 
95.2%
 
95.7%
 
91.5%
 
92.2%
 
6.8%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
17
Q1 2020 Supplemental Information

PORTFOLIO STATISTICS

Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased
 
Weighted Average Occupancy (1)
 
% of Total
Net Operating
Income (2)
 
Property Level Debt ($000) (3)
 
 
 
 
1Q20
 
4Q19
 
1Q20
 
4Q19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legacy Union One (5)
 
319,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
2.0%
 
67,976

5950 Sherry Lane (5)
 
197,000

 
Consolidated
 
100%
 
93.1%
 
90.3%
 
88.7%
 
83.5%
 
1.0%
 

DALLAS
 
516,000

 
 
 
 
 
97.4%
 
96.3%
 
95.7%
 
93.7%
 
3.0%
 
67,976

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BriarLake Plaza - Houston (4) (5)
 
835,000

 
Consolidated
 
100%
 
89.2%
 
89.2%
 
88.3%
 
88.0%
 
3.9%
 

Burnett Plaza - Fort Worth (5)
 
1,023,000

 
Consolidated
 
100%
 
87.6%
 
86.4%
 
86.6%
 
86.4%
 
3.0%
 

Carolina Square - Chapel Hill
 
158,000

 
Unconsolidated
 
50%
 
93.3%
 
93.4%
 
79.5%
 
79.5%
 
0.3%
 
12,842

OTHER OFFICE
 
2,016,000

 
 
 
 
 
88.6%
 
87.9%
 
87.1%
 
86.8%
 
7.2%
 
12,842

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OFFICE
 
19,046,000

 
 
 
 
 
93.3%
 
93.2%
 
89.9%
 
89.8%
 
99.3%
 
$
745,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Apartment - Chapel Hill (246 units)
 
266,000

 
Unconsolidated
 
50%
 
100.0%
 
99.6%
 
99.9%
 
99.6%
 
0.6%
 
21,619

Carolina Square Retail - Chapel Hill
 
44,000

 
Unconsolidated
 
50%
 
89.8%
 
89.3%
 
89.8%
 
89.3%
 
0.1%
 
3,576

 TOTAL OTHER
 
310,000

 
 
 
 
 
98.6%
 
98.1%
 
98.4%
 
98.1%