Cousins Properties Incorporated : Press Release and Quarterly Information Package for the Quarter Ended March 31, 2022 – Form 8-K







Cousins Properties

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Q1 2022 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, 2021, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022. 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: 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, limited partnership units, or preferred stock; future distributions; projected capital expenditures; market and industry trends; entry into new markets or changes in existing market concentrations; 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, Dallas, and Nashville, 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 tenants, and the costs of operating our assets; sociopolitical unrest such as political instability, civil unrest, armed hostilities, or political activism which may result in a disruption of day-to-day building operations; changes to our strategy in regard to our real estate assets which may require impairment 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 commence or complete tenant improvements on schedule or 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 employees working remotely; any adverse change in the financial condition of one or more of our tenants; volatility in interest rates and insurance rates; inflation and continuing increases in the inflation rate; 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; 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

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Q1 2022 Supplemental Information

COUSINS PROPERTIES REPORTS FIRST QUARTER 2022 RESULTS

ATLANTA (April 28, 2022) – Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2022.

“We have been proactively assembling a Sun Belt trophy office portfolio for over a decade. The heavy lift of upgrading asset quality is largely behind us,” said Colin Connolly, president and chief executive officer of Cousins Properties. “We have firmly established a unique and compelling position in the office sector. Looking forward, we have never been more excited about the power of our platform to drive earnings and increase shareholder value.”

Financial Results

For first quarter 2022:

•Net income available to common stockholders was $28.0 million, or $0.19 per share, compared to $29.1 million, or $0.20 per share, for first quarter 2021.

•Funds From Operations (“FFO”) was $99.4 million, or $0.67 per share, compared to $102.0 million, or $0.69 per share, for first quarter 2021.

Operations and Leasing Activity

For first quarter 2022:

•Same property net operating income (“NOI”) on a cash-basis increased 0.1%.

•Second generation net rent per square foot on a cash-basis increased 15.4%.

•Executed 324,000 square feet of office leases, including 224,000 square feet of new and expansion leases, representing 69% of total leasing activity.

Investment and Financing Activity

Subsequent to quarter end:

•Purchased for $43.4 million our partner’s 10% interest in Avalon, a consolidated joint venture between Cousins and Hines that developed and owned the 8000 Avalon and 10000 Avalon office properties in Atlanta. The purchase price included a promote to our partner in excess of its partnership interest and represented a negotiated fair value for the properties of $301.5 million.

Cousins Properties

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Q1 2022 Supplemental Information

Earnings Guidance

Full year 2022 earnings guidance remains unchanged from the previous quarter.

•Net income in the range of $0.75 to $0.83 per share.

•FFO in the range of $2.70 to $2.78 per share.

•Guidance includes settlement, during the first half of 2022, of forward contracts outstanding for 2.6 million shares of common stock sold under the Company’s ATM program. Gross proceeds of approximately $105 million will fund the Company’s recent acquisition of Heights Union on a leverage neutral basis.

•Guidance does not include any speculative operating property acquisitions, operating property dispositions, or development starts.

•Guidance reflects management’s current plans and assumptions as of the date of this report, and it is subject to the risks and uncertainties more fully described in our Securities and Exchange Commission filings. Actual results could differ materially from this guidance.

Investor Conference Call and Webcast

The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Friday, April 29, 2022 to discuss the results of the quarter ended March 31, 2022. 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 1847512. The playback can also be accessed on the Company’s website.

Cousins Properties

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Q1 2022 Supplemental Information

THE COMPANY

Cousins Properties Incorporated (“Cousins”) is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments. For more information, please visit www.cousins.com.

MANAGEMENT

M. Colin Connolly Gregg D. Adzema Kennedy Hicks Richard G. Hickson IV
President and Chief Executive Officer Executive Vice President and Chief Financial Officer Executive Vice President, Investments and Managing Director – Atlanta Executive Vice President, Operations
John S. McColl Pamela F. Roper Jeffrey D. Symes
Executive Vice President, Development Executive Vice President, General Counsel and Corporate Secretary Senior Vice President and Chief Accounting Officer

BOARD OF DIRECTORS

Robert M. Chapman Charles T. Cannada M. Colin Connolly
Non-executive Chairman, Chief Executive Officer of Centerpoint Properties Trust Private Investor President and Chief Executive Officer of Cousins Properties
Scott W. Fordham Lillian C. Giornelli R. Kent Griffin Jr.
Former Chief Executive Officer and
Director of TIER REIT, Inc.
Chairman, Chief Executive Officer and Trustee of
The Cousins Foundation Inc.
Managing Director of Phicas Investors
Donna W. Hyland Dionne Nelson R. Dary Stone
President and Chief Executive Officer of
Children’s Healthcare of Atlanta
President and Chief Executive Officer of
Laurel Street Residential
President and Chief Executive Officer of R.D. Stone Interests

COMPANY INFORMATION / EQUITY COVERAGE(1)

Corporate Headquarters Transfer Agent BofA Securities RW Baird Wells Fargo Barclays
3344 Peachtree Road NE
Suite 1800
Atlanta GA 30326
404.407.1000
American Stock Transfer &
Trust Company LLC
astfinancial.com
800.937.5449
James Feldman
646.855.5808
David Rodgers
216.737.7341
Blaine Heck
443.263.6529
Anthony Powell 212.526.8768
Investor Relations Stock Exchange Green Street Advisors J.P. Morgan Truist Securities
Roni Imbeaux
Vice President, Finance and
Investor Relations
rimbeaux@cousins.com
404.407.1104
NYSE: CUZ Daniel Ismail
949.640.8780
Anthony Paolone
212.622.6682
Michael Lewis
212.319.5659

(1) Please note that any opinions, estimates, or forecasts regarding Cousins’ performance made by the analysts listed above are theirs alone and do not represent opinions, forecasts or predictions of Cousins or its management. Cousins does not, by its reference above or distribution, imply its endorsement of, or concurrence with such information, conclusions, or recommendations.

Cousins Properties

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Q1 2022 Supplemental Information

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

March 31, 2022 December 31, 2021
Assets: (unaudited)
Real estate assets:
Operating properties, net of accumulated depreciation of $923,735 and $874,988 in 2022 and 2021, respectively $ 6,497,936 $ 6,506,910
Projects under development 205,885 174,803
Land 157,680 157,681
6,861,501 6,839,394
Cash and cash equivalents 7,000 8,937
Restricted cash 1,231 1,231
Accounts receivable 16,790 12,553
Deferred rents receivable 160,501 154,866
Investment in unconsolidated joint ventures 93,307 77,811
Intangible assets, net 159,853 168,553
Other assets, net 59,912 48,689
Total assets $ 7,360,095 $ 7,312,034
Liabilities:
Notes payable $ 2,349,484 $ 2,237,509
Accounts payable and accrued expenses 192,028 224,523
Deferred income 74,951 74,515
Intangible liabilities, net 60,252 63,223
Other liabilities 100,735 111,864
Total liabilities 2,777,450 2,711,634
Commitments and contingencies
Equity:
Stockholders’ investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 151,348,628 and 151,272,969 shares issued and outstanding in 2022 and 2021, respectively 151,349 151,273
Additional paid-in capital 5,550,718 5,549,308
Treasury stock at cost, 2,584,933 shares in 2022 and 2021 (148,473) (148,473)
Distributions in excess of cumulative net income (1,005,951) (985,338)
Total stockholders’ investment 4,547,643 4,566,770
Nonredeemable noncontrolling interests 35,002 33,630
Total equity 4,582,645 4,600,400
Total liabilities and equity $ 7,360,095 $ 7,312,034
Cousins Properties

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Q1 2022 Supplemental Information

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

Three Months Ended
March 31,
2022 2021
Revenues:
Rental property revenues $ 183,227 $ 184,807
Fee income 1,388 4,529
Other 2,283 214
186,898 189,550
Expenses:
Rental property operating expenses 64,877 66,395
Reimbursed expenses 360 368
General and administrative expenses 8,063 6,733
Interest expense 15,525 17,208
Depreciation and amortization 70,744 70,870
Other 221 590
159,790 162,164
Income from unconsolidated joint ventures 1,124 1,903
Gain on sales of investments in unconsolidated joint ventures 39
Loss on investment property transactions (69) (17)
Net income 28,163 29,311
Net income attributable to noncontrolling interests (179) (201)
Net income available to common stockholders $ 27,984 $ 29,110
Net income per common share – basic and diluted $ 0.19 $ 0.20
Weighted average shares – basic 148,739 148,624
Weighted average shares – diluted 149,002 148,725
Cousins Properties

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Q1 2022 Supplemental Information

2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
Property Statistics
Consolidated Operating Properties 33 33 32 32 32 32 33
Consolidated Rentable Square Feet (in thousands) 18,897 19,145 18,122 17,899 17,758 17,758 18,136
Unconsolidated Operating Properties 3 3 4 3 3 3 3
Unconsolidated Rentable Square Feet (in thousands) 1,107 1,107 1,460 1,179 1,179 1,179 1,179
Total Operating Properties 36 36 36 35 35 35 36
Total Rentable Square Feet (in thousands) 20,004 20,252 19,582 19,078 18,937 18,937 19,315
Office Leasing Activity (1)
Net Leased during the Period (SF, in thousands) 1,421 271 484 597 743 2,096 324
Net Rent (per SF) $32.20 $31.12 $32.38 $34.73 $39.02 $35.24 $35.45
Net Free Rent (per SF) (1.38) (1.70) (1.33) (1.59) (1.31) (1.45) (2.36)
Leasing Commissions (per SF) (2.57) (2.26) (2.70) (3.05) (2.76) (2.77) (3.01)
Tenant Improvements (per SF) (3.75) (3.63) (4.58) (6.03) (6.26) (5.47) (6.34)
Leasing Costs (per SF) (7.70) (7.59) (8.61) (10.67) (10.33) (9.69) (11.71)
Net Effective Rent (per SF) $24.50 $23.53 $23.77 $24.06 $28.69 $25.55 $23.74
Change in Second Generation Net Rent 27.2 % 21.5 % 21.7 % 31.6 % 17.1 % 24.7 % 27.4 %
Change in Cash-Basis Second Generation Net Rent 13.1 % 10.5 % 12.9 % 23.1 % 6.0 % 15.1 % 15.4 %
Same Property Information (2)
Percent Leased (period end) 92.7 % 89.9 % 90.7 % 90.7 % 90.5 % 90.5 % 90.0 %
Weighted Average Occupancy 91.8 % 89.3 % 90.7 % 89.0 % 88.1 % 90.0 % 87.0 %
Change in NOI (over prior year period) (0.5) % (4.1) % 1.4 % (1.4) % (1.1) % (0.5) % (2.0) %
Change in Cash-Basis NOI (over prior year period) 0.7 % (2.7) % 7.1 % 3.6 % 2.1 % 3.5 % 0.1 %
Development Pipeline (3)
Estimated Project Costs (in thousands) $449,400 $363,000 $492,200 $662,500 $759,000 $759,000 $566,000
Estimated Project Costs/Total Undepreciated Assets 5.4 % 4.3 % 6.1 % 8.1 % 8.9 % 8.9 % 6.6 %
Market Capitalization (4)
Common Stock Price $33.50 $35.35 $36.78 $37.29 $40.28 $40.28 $40.29
Common Stock/Units Outstanding (in thousands) 148,589 148,679 148,713 148,713 148,713 148,713 148,788
Equity Market Capitalization (in thousands) $4,977,732 $5,255,803 $5,469,664 $5,545,508 $5,990,160 $5,990,160 $5,994,669
Debt (in thousands) 2,277,759 2,358,860 2,195,653 2,206,306 2,350,314 2,350,314 2,462,197
Total Market Capitalization (in thousands) $7,255,491 $7,614,663 $7,665,317 $7,751,814 $8,340,474 $8,340,474 $8,456,866
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Cousins Properties

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Q1 2022 Supplemental Information

2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
Credit Ratios (4)
Net Debt/Total Market Capitalization 31.2 % 30.7 % 28.4 % 28.1 % 28.0 % 28.0 % 28.9 %
Net Debt/Total Undepreciated Assets 27.0 % 27.6 % 26.9 % 26.7 % 27.5 % 27.5 % 28.4 %

Net Debt/Annualized EBITDAre

4.84 4.87 4.55 4.54 4.86 4.86 5.28

Fixed Charges Coverage (EBITDAre)

6.00 5.42 5.43 5.43 5.51 5.45 5.56
Dividend Information (4)
Common Dividend per Share $1.20 $0.31 $0.31 $0.31 $0.31 $1.24 $0.32
Funds From Operations (FFO) Payout Ratio 43.1 % 45.2 % 45.1 % 45.0 % 45.6 % 45.3 % 48.7 %
Funds Available for Distribution (FAD) Payout Ratio 67.9 % 57.8 % 64.6 % 66.6 % 64.9 % 63.3 % 67.3 %
Operations Ratio (4)
Annualized General and Administrative Expenses/ Total Undepreciated Assets 0.32 % 0.32 % 0.36 % 0.39 % 0.34 % 0.34 % 0.38 %
Additional Information
In-Place Gross Rent (per square foot) (5) $40.26 $40.71 $42.00 $42.87 $42.85 $42.85 $43.90
Straight-Line Rental Revenue (in thousands) (4) $42,215 $7,739 $5,625 $6,852 $5,287 $25,503 $5,501

Above and Below Market Rents Amortization, Net

(in thousands) (4)

$10,061 $2,388 $2,069 $1,989 $1,946 $8,392 $1,771

Second Generation Capital Expenditures

(in thousands) (4)

$97,783 $12,093 $23,118 $24,880 $24,365 $84,456 $23,096
(1) See Office Leasing Activity on page 19 for additional detail and explanations.
(2)

Same Property Information is derived from the pool of same office properties as existed in the period originally reported. See Same Property Performance on page 18 and Non-GAAP Financial Measures – Calculations and Reconciliations on page 31 for additional information.

(3) The Company’s share of estimated project costs. See Development Pipeline on page 25 for additional detail.
(4) See Non-GAAP Financial Measures – Calculations and Reconciliations beginning on page 31.
(5) In-place gross rent equals the annualized cash rent including the tenant’s share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.
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Q1 2022 Supplemental Information

Total Rentable Square Feet Equity Market Capitalization Net Debt / Annualized EBITDAre

Same Property NOI ChangeSecond Generation Net Rent Change Annualized General & Administrative

Cash-Basis (1)Cash-Basis (1)Expenses / Total Undepreciated Assets

(1) Office properties only.

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

Cousins Properties

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Q1 2022 Supplemental Information

FUNDS FROM OPERATIONS – SUMMARY (1)
(amounts in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
NOI $ 486,034 $ 123,124 $ 122,705 $ 124,148 $ 123,743 $ 493,720 $ 119,607
Gain (Loss) on Sales of Undepreciated Investment Properties 612 (64) (64)
Fee Income 18,226 4,530 4,803 3,094 3,132 15,559 1,388
Other Income 4,325 298 897 2,013 2,595 5,803 3,780
Reimbursed Expenses (1,580) (368) (398) (383) (1,327) (2,476) (360)
General and Administrative Expenses (27,034) (6,733) (7,313) (7,969) (7,306) (29,321) (8,063)
Interest Expense (62,676) (17,723) (17,519) (17,513) (17,182) (69,937) (16,142)
Other Expenses (3,972) (1,010) (967) (764) (719) (3,460) (630)
Depreciation and Amortization of Non-Real Estate Assets (688) (158) (157) (156) (152) (623) (155)
FFO (1) $ 413,247 $ 101,960 $ 102,051 $ 102,406 $ 102,784 $ 409,201 $ 99,425
Weighted Average Shares – Diluted 148,636 148,725 148,740 148,772 148,905 148,891 149,002
FFO per Share (1) $ 2.78 $ 0.69 $ 0.69 $ 0.69 $ 0.69 $ 2.75 $ 0.67

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

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Q1 2022 Supplemental Information

FUNDS FROM OPERATIONS – DETAIL (1)

(amounts in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
NOI
Consolidated Properties
The Domain (2) $ 43,006 $ 14,118 $ 15,019 $ 15,989 $ 15,861 $ 60,987 $ 15,443
Terminus (2) 27,695 7,192 6,461 6,390 7,105 27,148 7,439
Spring & 8th (2) 29,232 7,367 7,320 7,367 7,359 29,413 7,424
Corporate Center (2) 25,397 7,371 7,157 7,326 7,252 29,106 7,050
Hayden Ferry (2) 24,346 6,221 6,079 6,128 6,100 24,528 6,133
Northpark (2) 27,668 6,760 6,588 6,562 6,652 26,562 6,098
725 Ponce 3,132 4,537 7,669 4,527
One Eleven Congress 18,030 4,564 4,466 5,042 4,121 18,193 4,342
San Jacinto Center 14,966 3,750 3,912 3,871 4,119 15,652 4,252
Fifth Third Center 18,354 4,782 4,963 4,437 4,410 18,592 4,229
3344 Peachtree 15,083 3,549 3,690 3,874 3,814 14,927 3,966
BriarLake Plaza (2) 18,104 4,483 4,530 4,913 4,216 18,142 3,879
Buckhead Plaza (2) 12,278 2,509 2,980 3,207 3,881 12,577 3,646
Avalon (2) 10,999 3,714 3,993 3,283 3,391 14,381 3,637
300 Colorado 3,275
Colorado Tower 12,348 2,382 3,253 3,563 3,862 13,060 3,155
The RailYard 929 3,175 3,112 3,172 3,037 12,496 3,153
The Terrace (2) 16,141 4,341 4,213 4,132 4,027 16,713 3,133
Promenade Tower 16,813 4,060 4,116 4,156 2,601 14,933 2,968
550 South 10,720 2,687 2,626 2,684 2,596 10,593 2,652
Legacy Union One 9,585 2,363 2,371 2,367 2,365 9,466 2,357
Domain Point (2) 5,744 1,265 1,243 1,168 1,379 5,055 1,761
Heights Union (2) 1,303 1,303 1,641
Tempe Gateway 7,516 1,417 1,452 1,734 1,483 6,086 1,423
111 West Rio 5,497 1,387 1,397 1,437 1,409 5,630 1,419
3348 Peachtree 5,460 1,262 1,258 1,344 1,563 5,427 1,257
The Pointe 4,752 1,199 1,043 1,267 1,176 4,685 1,156
Research Park V 4,125 1,038 985 1,055 966 4,044 1,059
Meridian Mark Plaza 4,159 1,018 1,040 1,022 1,030 4,110 1,042
3350 Peachtree 9,651 2,280 2,255 609 939 6,083 992
5950 Sherry Lane 5,001 1,188 1,200 1,057 1,104 4,549 951
Harborview Plaza 3,291 831 720 841 819 3,211 844
Promenade Central (3) 9,340 2,286 2,278 2,242 2,220 9,026
Other (4) 50,968 7,811 5,548 3,015 3,776 20,150 585
Subtotal – Consolidated 467,198 118,370 117,268 118,386 120,473 474,497 116,888
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Q1 2022 Supplemental Information

FUNDS FROM OPERATIONS – DETAIL (1)

(amounts in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
Unconsolidated Properties (5)
Carolina Square (2) 4,940 1,315 1,517 1,192 1,228 5,252 1,313
Emory University Hospital Midtown 4,210 1,048 1,094 1,092 1,098 4,332 1,112
120 West Trinity (2) (49) 151 204 231 241 827 301
Other (6) 9,735 2,240 2,622 3,247 703 8,812 (7)
Subtotal – Unconsolidated 18,836 4,754 5,437 5,762 3,270 19,223 2,719
Total Net Operating Income (1) 486,034 123,124 122,705 124,148 123,743 493,720 119,607
Gain (Loss) on Sales of Undepreciated Investment Properties
Consolidated (64) (64)
Unconsolidated (5) 612
Total Gain (Loss) on Sales of Undepreciated Investment Properties 612 (64) (64)
Fee Income
Development Fees 15,334 3,900 4,173 2,476 1,532 12,081 817
Management Fees (7) 2,756 579 616 594 1,585 3,374 571
Leasing & Other Fees 136 51 14 24 15 104
Total Fee Income 18,226 4,530 4,803 3,094 3,132 15,559 1,388
Other Income
Termination Fees 3,834 42 782 1,775 2,506 5,105 1,462
Termination Fees – Unconsolidated (5) 9 7 74 81
Interest and Other Income 231 213 68 123 46 450 2,283
Interest and Other Income – Unconsolidated (5) 251 43 40 41 43 167 35
Total Other Income 4,325 298 897 2,013 2,595 5,803 3,780
Total Fee and Other Income 22,551 4,828 5,700 5,107 5,727 21,362 5,168
Reimbursed Expenses (7) (1,580) (368) (398) (383) (1,327) (2,476) (360)
General and Administrative Expenses (27,034) (6,733) (7,313) (7,969) (7,306) (29,321) (8,063)
Interest Expense
Consolidated Interest Expense
2019 Senior Notes, Unsecured ($275M) (10,975) (2,744) (2,744) (2,743) (2,744) (10,975) (2,744)
2017 Senior Notes, Unsecured ($250M) (9,958) (2,490) (2,489) (2,490) (2,489) (9,958) (2,490)
2019 Senior Notes, Unsecured ($250M) (9,764) (2,441) (2,441) (2,441) (2,441) (9,764) (2,441)
Credit Facility, Unsecured (5,768) (1,710) (1,299) (1,114) (1,479) (5,602) (1,795)
Term Loan, Unsecured (5,056) (948) (950) (1,214) (1,220) (4,332) (1,430)
Terminus (2) (6,016) (1,468) (1,452) (1,437) (1,422) (5,779) (1,406)
2019 Senior Notes, Unsecured ($125M) (4,789) (1,197) (1,198) (1,197) (1,197) (4,789) (1,197)
Fifth Third Center (4,737) (1,168) (1,159) (1,152) (1,146) (4,625) (1,138)
2017 Senior Notes, Unsecured ($100M) (4,145) (1,036) (1,037) (1,036) (1,036) (4,145) (1,036)
Colorado Tower (4,091) (1,009) (1,005) (998) (994) (4,006) (988)
Promenade Tower (4,081) (997) (988) (979) (969) (3,933) (959)
Domain 10 (8) (3,046) (751) (748) (800) (796) (3,095) (792)
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Q1 2022 Supplemental Information

FUNDS FROM OPERATIONS – DETAIL (1)

(amounts in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
Legacy Union One (2,127) (520) (528) (535) (536) (2,119) (520)
Other (9) (376) (41) (37) (44) (39) (161) (40)
Capitalized (10) 14,324 1,312 1,419 1,471 2,055 6,257 3,451
Subtotal – Consolidated Interest Expense (60,605) (17,208) (16,656) (16,709) (16,453) (67,026) (15,525)
Unconsolidated Interest Expense (5)
Carolina Square (2) (869) (134) (416) (328) (310) (1,188) (329)
Emory University Hospital Midtown (1,202) (296) (293) (291) (290) (1,170) (288)
Other (9) (85) (154) (185) (129) (553)
Subtotal – Unconsolidated Interest Expense (2,071) (515) (863) (804) (729) (2,911) (617)
Total Interest Expense (62,676) (17,723) (17,519) (17,513) (17,182) (69,937) (16,142)
Other Expenses
Property Taxes and Other Holding Costs (1,163) (345) (164) (215) (217) (941) (230)
Partners’ Share of FFO in Consolidated Joint Ventures (1,263) (407) (129) (339) (409) (1,284) (396)
Severance (69) (308) (19) (79) (406)
Predevelopment & Other Costs (1,049) 50 (655) (210) (14) (829) (4)
Transaction Costs (428)
Total Other Expenses (3,972) (1,010) (967) (764) (719) (3,460) (630)
Depreciation and Amortization of Non-Real Estate Assets (688) (158) (157) (156) (152) (623) (155)
FFO (1) $ 413,247 $ 101,960 $ 102,051 $ 102,406 $ 102,784 $ 409,201 $ 99,425
Weighted Average Shares – Diluted 148,636 148,725 148,740 148,772 148,905 148,891 149,002
FFO per Share (1) $ 2.78 $ 0.69 $ 0.69 $ 0.69 $ 0.69 $ 2.75 $ 0.67
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 31.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) Promenade Central is undergoing a full-building redevelopment and is currently not available for operations. See page 15 for additional details.

(4) Primarily represents properties sold prior to March 31, 2022, see page 24. Also, includes College Street Garage and, prior to first quarter 2022, 300 Colorado, while in its final stages of development and not yet stabilized.

(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) Primarily represents unconsolidated investments sold prior to March 31, 2022, see page 24. Also includes NOI from unconsolidated investments not yet stabilized.

(7) Reimbursed Expenses include costs incurred by the Company for management services provided to our unconsolidated joint ventures. The reimbursement of these costs by the unconsolidated joint ventures is included in Management Fees.
(8) In June 2021, we executed a collateral swap for the mortgage previously secured by 816 Congress, which Cousins sold in December 2021. The mortgage is now secured by the Company’s Domain 10 property. Terms of the mortgage were unchanged.

(9) Represents interest on loans repaid prior to March 31, 2022.

(10) Amounts of consolidated interest expense related to consolidated debt that are capitalized to consolidated development and redevelopment projects as well as to equity in unconsolidated development projects.
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Q1 2022 Supplemental Information

Office Properties (1) Rentable Square Feet Financial Statement Presentation Company’s Ownership Interest End of Period Leased Weighted Average Occupancy (2) % of Total
NOI / 1Q22
Property Level Debt (in thousands) (3)
1Q22 4Q21 1Q22 4Q21
Spring & 8th (4) 765,000 Consolidated 100% 100.0% 100.0% 100.0% 100.0% 6.2% $
Terminus (4) 1,226,000 Consolidated 100% 90.4% 90.6% 82.3% 81.4% 6.2% 185,379
Northpark (4) 1,539,000 Consolidated 100% 85.2% 87.1% 83.0% 85.7% 5.1%
725 Ponce (6) 372,000 Consolidated 100% 100.0% 100.0% 98.4% 99.0% 3.8%
3344 Peachtree 484,000 Consolidated 100% 97.7% 97.7% 96.9% 95.3% 3.3%
Buckhead Plaza (4) 666,000 Consolidated 100% 88.3% 87.0% 78.4% 76.7% 3.0%
Avalon (5) 480,000 Consolidated 90% 99.5% 99.5% 92.4% 83.7% 3.0%
Promenade Tower 777,000 Consolidated 100% 77.7% 75.5% 73.9% 73.4% 2.5% 88,117
3348 Peachtree 258,000 Consolidated 100% 80.9% 89.9% 86.2% 90.1% 1.1%
Emory University Hospital Midtown 358,000 Unconsolidated 50% 99.5% 98.2% 95.5% 94.3% 0.9% 32,090
Meridian Mark Plaza 160,000 Consolidated 100% 100.0% 100.0% 100.0% 100.0% 0.9%
3350 Peachtree 413,000 Consolidated 100% 52.5% 52.5% 50.2% 49.1% 0.8%
120 West Trinity Office (6) 43,000 Unconsolidated 20% 90.4% 90.4% 89.4% 87.2% 0.2%
Promenade Central (6) (7) 370,000 Consolidated 100% 41.4% 100.0% N/A 100.0% -%
ATLANTA (7) 7,911,000 88.3% 89.1% 84.5% 84.9% 37.0% 305,586
The Domain (5) 1,899,000 Consolidated 100% 100.0% 100.0% 92.9% 96.9% 13.0% 75,133
One Eleven Congress 519,000 Consolidated 100% 82.5% 84.6% 82.7% 84.6% 3.6%
San Jacinto Center 399,000 Consolidated 100% 96.1% 95.6% 94.9% 93.5% 3.6%
300 Colorado (6) (8) 378,000 Consolidated 100% 87.9% 87.9% 85.2% N/A 2.7%
The Terrace (4) 619,000 Consolidated 100% 76.9% 86.9% 72.4% 85.4% 2.6%
Colorado Tower 373,000 Consolidated 100% 100.0% 100.0% 87.0% 100.0% 2.6% 111,083
Domain Point (4) 240,000 Consolidated 96.5% 96.6% 96.6% 96.6% 83.3% 1.5%
Research Park V 173,000 Consolidated 100% 97.1% 97.1% 97.1% 97.1% 0.9%
AUSTIN (8) 4,600,000 93.3% 95.5% 88.4% 92.9% 30.5% 186,216
Corporate Center (4) 1,227,000 Consolidated 100% 94.7% 95.7% 93.8% 96.0% 5.9%
Heights Union (4) (6) (9) 294,000 Consolidated 100% 93.0% 93.0% 70.7% 57.6% 1.4%
The Pointe 253,000 Consolidated 100% 94.9% 90.5% 89.0% 87.8% 1.0%
Harborview Plaza 205,000 Consolidated 100% 80.8% 80.2% 79.8% 77.9% 0.7%
TAMPA (9) 1,979,000 93.0% 93.1% 91.4% 92.6% 9.0%
Fifth Third Center 692,000 Consolidated 100% 90.8% 94.4% 93.2% 94.4% 3.5% 132,510
The RailYard 329,000 Consolidated 100% 99.0% 98.2% 97.3% 96.8% 2.6%
550 South 394,000 Consolidated 100% 97.9% 97.9% 97.7% 97.7% 2.2%
CHARLOTTE 1,415,000 94.7% 96.3% 95.4% 95.9% 8.3% 132,510
Hayden Ferry (4) 792,000 Consolidated 100% 94.6% 94.6% 94.5% 94.6% 5.1%
Tempe Gateway 264,000 Consolidated 100% 77.2% 78.1% 72.3% 78.1% 1.2%
111 West Rio 225,000 Consolidated 100% 100.0% 100.0% 100.0% 100.0% 1.2%
PHOENIX 1,281,000 92.0% 92.2% 90.9% 92.2% 7.5%
Continued on next page
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Q1 2022 Supplemental Information

Office Properties (1) Rentable Square Feet Financial Statement Presentation Company’s Ownership Interest End of Period Leased Weighted Average Occupancy (2) % of Total
NOI / 1Q22
Property Level Debt (in thousands) (3)
1Q22 4Q21 1Q22 4Q21
Legacy Union One 319,000 Consolidated 100% 100.0% 100.0% 100.0% 100.0% 2.1% 66,539
5950 Sherry Lane 197,000 Consolidated 100% 80.4% 77.2% 76.5% 79.3% 0.8%
DALLAS 516,000 92.5% 91.3% 91.0% 92.1% 2.9% 66,539
BriarLake Plaza – Houston (4) 835,000 Consolidated 100% 77.8% 79.9% 77.7% 80.5% 3.2%
Carolina Square – Chapel Hill 158,000 Unconsolidated 50% 98.5% 98.5% 94.5% 94.1% 0.3% 22,357
OTHER OFFICE 993,000 79.6% 81.5% 79.1% 81.7% 3.5% 22,357
TOTAL OFFICE (7) (8) (10) 18,695,000 90.5% 91.5% 87.4% 89.0% 98.7% $ 713,208
Other Properties (1)
Carolina Square Apartment – Chapel Hill (246 units) (6) 266,000 Unconsolidated 50% 99.6% 100.0% 99.9% 98.4% 0.5% 37,638
Carolina Square Retail – Chapel Hill (6) 44,000 Unconsolidated 50% 89.8% 89.8% 88.9% 87.1% 0.1% 6,226
College Street Garage – Charlotte (6) N/A Consolidated 100% N/A N/A N/A N/A 0.5%

120 West Trinity Apartment – Atlanta (330 units) (6) 310,000 Unconsolidated 20% 96.8% 98.8% 95.3% 96.3% 0.2%
TOTAL OTHER 620,000 97.8% 98.6% 97.4% 96.6% 1.3% $ 43,864
TOTAL (7) (8) (10) 19,315,000 90.6% 91.6% 87.5% 89.1% 100.0% $ 757,072
(1)

Represents the Company’s operating properties, excluding properties on the development pipeline, and properties sold prior to March 31, 2022.

(2) The weighted average economic occupancy of the property over the period for which the property was available for occupancy.
(3)

The Company’s share of property-specific mortgage debt, including premiums and net of unamortized loan costs, as of March 31, 2022.

(4) Contains two or more buildings that are grouped together for reporting purposes.
(5)

Contains two or more buildings that are grouped together for reporting purposes, some of which are not included in Same Property as of March 31, 2022.

(6)

Not included in Same Property as of March 31, 2022.

(7)

While under redevelopment, Promenade Central has been excluded from the Atlanta and Total Office calculations of end of period leased and weighted average occupancy at March 31, 2022.

(8) In the first quarter 2022, 300 Colorado was moved off the development pipeline and into portfolio statistics. 300 Colorado has been excluded from the Austin and Total Office calculations of end of period leased and weighted average occupancy at December 31, 2021.
(9)

Heights Union is a recently developed property acquired by the Company on October 1, 2021. The occupancy at March 31, 2022 is 70.7% and stabilized occupancy of greater than 90% is anticipated to be achieved in the second quarter of 2022. Heights Union has been excluded from the Tampa and Total Office calculations of end of period leased and weighted average occupancy at March 31, 2022 and December 31, 2021.

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16

Q1 2022 Supplemental Information

First Quarter 2022 Portfolio NOI by Market

(1) The Company is developing a mixed-use project in Nashville through a 50 percent owned joint venture. See pages 25 and 30 for additional details.

Cousins Properties

17

Q1 2022 Supplemental Information

SAME PROPERTY PERFORMANCE (1)
($ in thousands)
Three Months Ended March 31,
2022 2021 % Change
Rental Property Revenues (2) $ 162,851 $ 163,834 (0.6) %
Rental Property Operating Expenses (2) 59,101 57,922 2.0 %
Same Property Net Operating Income $ 103,750 $ 105,912 (2.0) %
Cash-Basis Rental Property Revenues (3) $ 156,357 $ 155,120 0.8 %
Cash-Basis Rental Property Operating Expenses (4) 58,897 57,759 2.0 %
Cash-Basis Same Property Net Operating Income $ 97,460 $ 97,361 0.1 %
End of Period Leased 90.0 % 92.5 %
Weighted Average Occupancy 87.0 % 91.2 %
(1)

Same Properties include those office properties that were stabilized and owned by the Company for the entirety of all comparable reporting periods presented. See Portfolio Statistics beginning on pages 15 and 16 for footnotes indicating which properties are not included in Same Property. See Non-GAAP Financial Measures – Calculations and Reconciliations beginning on page 31.

(2) Rental Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures and exclude termination fee income. Net operating income for unconsolidated joint ventures is calculated as Rental Property Revenues less termination fee income and Rental Property Expenses at the joint ventures multiplied by the Company’s ownership interest. The Company does not control the operations of the unconsolidated joint ventures but believes that including these amounts with consolidated net operating income is meaningful to investors and analysts.
(3) Cash-Basis Rental Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Revenues, excluding termination fee income, straight-line rents and other deferred income amortization, amortization of lease inducements, and amortization of acquired above and below market rents.
(4) Cash-Basis Rental Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.
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18

Q1 2022 Supplemental Information

Three Months Ended March 31, 2022
New Renewal Expansion Total
Gross leased square feet (1) 424,743
Less exclusions (2) (100,913)
Net leased square feet 176,081 100,256 47,493 323,830
Number of transactions 15 15 7 37
Lease term in years (3) 8.7 7.3 8.7 8.2
Net effective rent calculation (per square foot
per year) (3)
Net annualized rent (4) $ 33.89 $ 38.10 $ 35.61 $ 35.45
Net free rent (3.06) (1.62) (1.33) (2.36)
Leasing commissions (2.70) (3.54) (3.04) (3.01)
Tenant improvements (7.97) (3.88) (5.51) (6.34)
Total leasing costs (13.73) (9.04) (9.88) (11.71)
Net effective rent $ 20.16 $ 29.06 $ 25.73 $ 23.74
Second generation leased square footage (5) 237,705
Increase in straight-line basis second generation net rent per square foot (6) 27.4 %
Increase in cash-basis second generation net rent per square foot (7) 15.4 %
(1) Comprised of total square feet leased, unadjusted for ownership share and excluding apartment leasing.
(2) Adjusted for leases one year or less, leases for retail, amenity, storage, percentage rent, intercompany space, and rent deferrals/extension agreements related to the COVID-19 pandemic.
(3) Weighted average of net leased square feet.
(4) Straight-line net rent per square foot (operating expense reimbursements deducted from gross leases) over the lease term prior to any deductions for leasing costs.
(5)

Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, and leases for spaces that have been vacant for one year or more.

(6) Increase in second generation straight-line basis net annualized rent on a weighted average basis.
(7) Increase in net cash rent at the end of the term paid by the prior tenant compared to net cash rent at the beginning of the term (after any free rent period) paid by the current tenant on a weighted average basis. For early renewals, the increase in net cash rent at the end of the term of the original lease is compared to net cash rent at the beginning of the extended term of the lease. Net cash rent is net of any recovery of operating expenses but prior to any deductions for leasing costs.
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Q1 2022 Supplemental Information

Lease Expirations by Year (1)

Year of Expiration Square Feet
Expiring
% of Leased
Space
Annual
Contractual Rent
(in thousands) (2)
% of Annual
Contractual
Rent
Annual
Contractual
Rent/Sq. Ft.
2022 714,775 4.9 % $ 29,706 3.7 % $ 38.10
2023 1,387,721 8.6 % 60,762 7.6 % 43.79
2024 1,091,807 6.9 % 48,756 6.1 % 43.83
2025 1,932,911 12.0 % 87,054 10.9 % 45.04
2026 1,445,559 9.2 % 69,367 8.7 % 47.08
2027 1,677,325 10.5 % 74,150 9.3 % 43.95
2028 1,216,430 7.7 % 61,098 7.7 % 49.10
2029 1,431,459 9.0 % 68,249 8.6 % 47.27
2030 1,298,223 8.1 % 85,329 10.7 % 65.73
2031 & Thereafter 3,642,481 23.1 % 212,986 26.7 % 57.16
Total 15,838,691 100.0 % $ 797,457 100.0 % $ 49.58
(1) Company’s share of leases expiring after March 31, 2022. Expiring square footage for which new leases have
been executed is reflected based on the expiration date of the new lease.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an estimate of the tenant’s share of operating expenses, if applicable, as defined in the respective leases.
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20

Q1 2022 Supplemental Information

Tenant (1) Number of Properties Occupied Number of Markets Occupied Company’s Share of Square Footage Company’s Share of Annualized Rent
(in thousands) (2)
Percentage of Company’s Share of Annualized Rent Weighted Average Remaining Lease Term (Years)
1 NCR 1 1 762,090 $ 37,564 5.5% 11.4
2 Amazon 4 3 692,474 35,850 5.3% 6.8
3 Meta Platforms 1 1 422,252 23,449 3.5% 7.9
4 Pioneer Natural Resources 2 1 359,660 23,336 3.4% 9.4
5 Expedia 1 1 315,882 17,045 2.5% 9.0
6 Bank of America 2 2 344,601 11,575 1.8% 3.7
7 Wells Fargo 4 3 198,270 8,910 1.3% 3.8
8 Apache 1 1 210,012 8,850 1.3% 2.6
9 Ovintiv USA (3) 1 1 318,582 8,069 1.2% 5.3
10 Allstate 2 2 214,380 7,688 1.1% 5.5
11 SVB Financial Group 1 1 188,940 7,627 1.1% 3.8
12 WeWork Companies 4 2 169,050 7,505 1.1% 11.5
13 Regus Equity Business Centers 6 4 158,740 7,368 1.1% 5.7
14 ADP 1 1 225,000 7,366 1.1% 6.0
15 Westrock Shared Services 1 1 205,185 7,172 1.1% 8.1
16 Workrise Technologies 1 1 93,210 6,592 1.0% 6.3
17 McGuireWoods 2 2 187,119 6,421 0.9% 4.7
18 BlackRock 1 1 131,656 6,415 0.9% 14.2
19 Amgen 1 1 163,169 6,183 0.9% 6.6
20 Samsung Engineering America 1 1 133,860 5,996 0.8% 4.7
Total 5,494,132 $ 250,981 36.9% 7.3
(1) In some cases, the actual tenant may be an affiliate of the entity shown.
(2) Annualized Rent represents the annualized cash rent including the tenant’s share of estimated operating expenses, if applicable, paid by the tenant as of March 31, 2022. If the tenant is in a free rent period as of March 31, 2022, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full cash rent.
(3) Ovintiv USA has multiple subleases for substantially all of its space. In the event of termination of the Ovintiv lease, such subleases would become direct leases with the Company.
Note: This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.
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Q1 2022 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION

Note: Management uses SIC codes when available, along with judgment, to determine tenant industry classification.

(1) Annualized Rent represents the annualized rent including the tenant’s share of estimated operating expenses, if applicable, paid by the tenant as of March 31, 2022. If the tenant is in a free rent period as of March 31, 2022, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full rent.

Cousins Properties

22

Q1 2022 Supplemental Information

Completed Operating Property Acquisitions

Property Type Market Company’s Ownership Interest Timing Square Feet Gross Purchase Price
(in thousands) (1)
2021
725 Ponce Office Atlanta 100% 3Q 372,000 $ 300,200
Heights Union Office Tampa 100% 4Q 294,000 144,800
2020
The RailYard Office Charlotte 100% 4Q 329,000 201,300
2019
Promenade Central Office Atlanta 100% 1Q 370,000 82,000
TIER REIT, Inc. Office Various Various 2Q 5,799,000 (2)
Terminus (3) Office Atlanta 100% 4Q 1,226,000 246,000
8,390,000 $ 974,300

Completed Property Developments

Project Type Market Company’s Ownership Interest Timing Square Feet Total Project Cost (in thousands) (1)
2022
300 Colorado Office Austin 100% 1Q 369,000 $ 193,000
2021
10000 Avalon Office Atlanta 90% 1Q 251,000 96,000
120 West Trinity Mixed Atlanta 20% 2Q 353,000 89,000
Domain 10 Office Austin 100% 3Q 300,000 111,000
2020
Domain 12 Office Austin 100% 4Q 320,000 117,000
2019
Dimensional Place Office Charlotte 50% 1Q 281,000 96,000
2018
Spring & 8th Office Atlanta 100% 1Q/4Q 765,000 336,000
2,639,000 $ 1,038,000

(1) Except as otherwise noted, amounts represent total purchase prices, total project cost paid by the Company and, where applicable, its joint venture partner,

including certain allocated costs required by GAAP that were not incurred by the joint venture.

(2) Properties acquired in the merger with TIER REIT, Inc.

(3) Purchased outside interest of 50% in Terminus Office Holdings, LLC for $246 million before reductions for existing mortgage debt.

Cousins Properties

23

Q1 2022 Supplemental Information

Completed Operating Property Dispositions

Property Type Market Company’s Ownership Interest Timing Square Feet Gross Sales Price
(in thousands) (1)
2021
Burnett Plaza Office Fort Worth 100% 2Q 1,023,000 $ 137,500
One South at the Plaza Office Charlotte 100% 3Q 891,000 271,500
Dimensional Place (2) Office Charlotte 50% 3Q 281,000 60,800
816 Congress Office Austin 100% 4Q 435,000 174,000
2020
Hearst Tower Office Charlotte 100% 1Q 966,000 455,500
Gateway Village (2) Office Charlotte 50% 1Q 1,061,000 52,200
Woodcrest Office Cherry Hill 100% 1Q 386,000 25,300
5,043,000 $ 1,176,800

(1) Except as otherwise noted, amounts represent total gross sales prices received by the Company and, where applicable, its joint venture partner.

(2) The Company sold its unconsolidated interest in the joint venture to its partner.

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24

Q1 2022 Supplemental Information

Project Type Market Company’s Ownership Interest Construction Start Date Square Feet/Units Estimated Project Cost (1) (2)
(in thousands)
Company’s Share of Estimated Project Cost (2)
(in thousands)
Project Cost Incurred to Date (2)
(in thousands)
Company’s Share of Project Cost Incurred to Date (2)
(in thousands)
Percent Leased Initial Revenue Recognition (3) Estimated Stabilization (4)
100 Mill Office Phoenix 90 % 1Q20 287,000 $ 153,000 $ 137,700 $ 129,634 $ 116,670 92 % 2Q22 4Q22
Neuhoff (5) Mixed Nashville 50 % 3Q21 562,500 281,300 167,757 83,879
Commercial 448,000 % 2Q23 2Q24
Apartments 542 % 2Q24 2Q25
Domain 9 Office Austin 100 % 2Q21 338,000 147,000 147,000 67,833 67,833 97 % 1Q24 1Q25
Total $ 862,500 $ 566,000 $ 365,224 $ 268,382
(1) This schedule shows projects currently under active development through the substantial completion of construction as well as properties in an initial lease up period prior to stabilization. Amounts included in the estimated project cost column are the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates.
(2) Estimated and incurred project costs are construction costs plus financing costs on project-specific debt. Neuhoff has a project-specific construction loan (see Note 5). The above excludes any financing cost assumptions for projects without project-specific debt and any other incremental capitalized costs required by GAAP. It also excludes fair value adjustments related to the acquisition of a project.
(3) Initial revenue recognition represents the quarter within which the Company first recognized or estimates it will begin recognizing revenue under GAAP.
(4) Estimated stabilization is the quarter within which the Company estimates it will achieve 90% economic occupancy. The Company capitalizes interest, real estate taxes, and certain operating expenses on the unoccupied portion of recently completed development properties until the date a project is substantially complete and held for occupancy, which is the earlier of (1) the date on which the project achieves 90% economic occupancy, or (2) one year from cessation of major construction activity.
(5) The Neuhoff estimated project cost will be funded with a combination of $250.6 million of equity contributed by the joint venture partners and a $312.7 million construction loan.
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25

Q1 2022 Supplemental Information

Market Company’s Ownership Interest Financial Statement Presentation Total Developable Land (Acres) Cost Basis of Land (in thousands)
3354/3356 Peachtree Atlanta 95% Consolidated 3.2
715 Ponce Atlanta 50% Unconsolidated 1.0
887 West Peachtree (1) Atlanta 100% Consolidated 1.6
The Avenue Forsyth-Adjacent Land Atlanta 100% Consolidated 10.4
Domain Point 3 Austin 90% Consolidated 1.7
Domain Central Austin 100% Consolidated 5.6
South End Station Charlotte 100% Consolidated 3.4
303 Tremont Charlotte 100% Consolidated 2.4
Legacy Union 2 & 3 Dallas 95% Consolidated 4.0
Victory Center Dallas 75% Unconsolidated 3.0
Corporate Center 5 & 6 (2) Tampa 100% Consolidated 14.1
Total 50.4 $ 175,486
159351
Company’s Share 48.6 $ 166,266
(1) Includes a ground lease with future obligation to purchase.
(2) Corporate Center 5 is controlled through a long-term ground lease.
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Q1 2022 Supplemental Information

Company’s Share of Debt Maturities and Principal Payments
($ in thousands)
Description (Interest Rate Base, if not fixed) Company’s Ownership Interest Rate at End of Quarter Maturity Date 2022 2023 2024 2025 2026 Thereafter Total Principal Deferred Loan Costs Above Market Premium Total
Consolidated Debt – Floating Rate
Term Loan, Unsecured
(LIBOR + 1.05% to 1.65%) (2)
100% 1.50% 8/30/24 $ $ $ 350,000 $ $ $ $ 350,000 $ (1,549) $ $ 348,451
Credit Facility, Unsecured
(LIBOR + 1.05% to 1.45%) (3)
100% 1.50% 1/3/23 345,000 345,000 345,000
Total Consolidated Floating Rate Debt 345,000 350,000 695,000 (1,549) 693,451
Consolidated Debt – Fixed Rate
2019 Senior Note C, Unsecured 100% 3.95% 7/6/29 275,000 275,000 (814) 274,186
2017 Senior Note A, Unsecured 100% 3.91% 7/6/25 250,000 250,000 (595) 249,405
2019 Senior Note B, Unsecured 100% 3.86% 7/6/28 250,000 250,000 (708) 249,292
Fifth Third Center 100% 3.37% 10/1/26 2,637 3,622 3,746 3,874 118,928 132,807 (297) 132,510
2019 Senior Note A, Unsecured 100% 3.78% 7/6/27 125,000 125,000 (334) 124,666
Terminus 100 100% 5.25% 1/1/23 2,640 108,181 110,821 1,935 112,756
Colorado Tower 100% 3.45% 9/1/26 1,957 2,689 2,783 2,881 101,198 111,508 (425) 111,083
2017 Senior Note B, Unsecured 100% 4.09% 7/6/27 100,000 100,000 (277) 99,723
Promenade Tower 100% 4.27% 10/1/22 88,143 88,143 (26) 88,117
Domain 10 100% 3.75% 11/1/24 1,425 1,963 72,557 75,945 (812) 75,133
Terminus 200 100% 3.79% 1/1/23 1,403 70,700 72,103 520 72,623
Legacy Union One 100% 4.24% 1/1/23 66,000 66,000 539 66,539
Total Consolidated Fixed Rate Debt 98,205 253,155 79,086 256,755 220,126 750,000 1,657,327 (4,288) 2,994 1,656,033
Total Consolidated Debt 98,205 598,155 429,086 256,755 220,126 750,000 2,352,327 (5,837) 2,994 2,349,484
Unconsolidated Debt – Floating Rate
Carolina Square (LIBOR + 1.80%) 50% 2.25% 3/18/26 765 1,020 1,020 1,020 63,015 66,840 (619) 66,221
Neuhoff (LIBOR + 3.60%) (4) 50% 4.05% 9/30/25 16,865 16,865 (2,463) 14,402
Total Unconsolidated Floating Rate Debt 765 1,020 1,020 17,885 63,015 83,705 (3,082) 80,623
.
Unconsolidated Debt – Fixed Rate
Emory University Hospital Midtown 50% 3.50% 6/1/23 680 31,436 32,116 (26) 32,090
Total Unconsolidated Fixed Rate Debt 680 31,436 32,116 (26) 32,090
Total Unconsolidated Debt 1,445 32,456 1,020 17,885 63,015 115,821 (3,108) 112,713
Total Debt $ 99,650 $ 630,611 $ 430,106 $ 274,640 $ 283,141 $ 750,000 $ 2,468,148 $ (8,945) $ 2,994 $ 2,462,197
Total Maturities (5) $ 86,295 $ 620,932 $ 420,865 $ 266,865 $ 277,919 $ 750,000 $ 2,422,876
% of Maturities 4 % 26 % 17 % 11 % 11 % 31 % 100 %
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Q1 2022 Supplemental Information

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Q1 2022 Supplemental Information

Floating and Fixed Rate Debt Analysis

Total Principal
(in thousands)
Total Debt (%) Weighted Average Interest Rate Weighted Average Maturity (Years)
Floating Rate Debt $ 778,705 32 % 1.62 % 1.8
Fixed Rate Debt 1,689,443 68 % 3.94 % 4.2
Total Debt $ 2,468,148 100 % 3.21 % 3.5
(1) All amounts are presented at Company share.
(2)

The spread over LIBOR under the Term Loan at March 31, 2022 was 1.05%.

(3)

As of March 31, 2022, the company had $345.0 million drawn under the Credit Facility and had the ability to borrow the remaining $655.0 million. The spread over LIBOR under the Credit Facility at March 31, 2022 was 1.05%.

(4) The Company’s share of the total borrowing capacity of the construction loan is $156.4 million.
(5) Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.
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Q1 2022 Supplemental Information

JOINT VENTURE INFORMATION (1)
Joint Venture Property Cash Flows to Cousins (2) Options
Consolidated:
HICO 100 Mill LLC 100 Mill 90% of cash flows until return of contributed capital to both Partners. Cousins can trigger a sale process following construction completion, subject to a right of first offer that can be exercised by Partner.
TR Domain Point LLC Domain Point Preferred return on preferred equity contribution, then 96.5% of remaining cash flows. Partner has put option beginning Q1 2023 under various circumstances.
Unconsolidated:
AMCO 120 WT Holdings LLC 120 West Trinity 20% of cash flows. Cousins or Partner can trigger a buyout upon which Cousins would receive the office component, and Partner would receive the multifamily component, with a net settlement at a then agreed upon value.
Carolina Square Holdings LP Carolina Square 50% of cash flows. Cousins or Partner can trigger a sale process, subject to a right of first offer that can be exercised by the non-triggering party.
Crawford Long-CPI, LLC Emory University Hospital Midtown 50% of cash flows. Cousins can put its interest to Partner, or Partner can call Cousins’ interest, at a value determined by appraisal.
Neuhoff Holdings LLC Neuhoff 50% of cash flows. Cousins or Partner can trigger a sale process, subject to a right of first offer that can be exercised by the non-triggering party.
(1) This schedule only contains information related to joint ventures that hold an ownership interest in operating assets or projects under active development.
(2) Each respective joint venture agreement may contain additional terms that affect the distribution of operating cash flows and capital transaction proceeds that are not yet effective, including the distribution of promoted interest.
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Q1 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st

FFO and EBITDAre

Net income available to common stockholders $ 237,278 $ 29,110 $ 28,153 $ 54,018 $ 167,305 $ 278,586 $ 27,984
Depreciation and amortization of real estate assets:
Consolidated properties 287,960 70,712 71,299 71,918 73,540 287,469 70,589
Share of unconsolidated joint ventures 8,740 2,365 2,810 2,917 1,582 9,674 1,124
Partners’ share of real estate depreciation (742) (211) (228) (231) (259) (929) (223)
(Gain) loss on depreciated property transactions:
Consolidated properties (90,105) 17 9 (13,127) (139,510) (152,611) 69
Share of unconsolidated joint ventures (450) 3 23 13 39 (124)
Sale of investments in unconsolidated joint ventures (44,578) (39) (13,121) 77 (13,083)
Impairment 14,829
Non-controlling interest related to unitholders 315 6 5 9 36 56 6
FFO 413,247 101,960 102,051 102,406 102,784 409,201 99,425
Interest Expense 62,676 17,723 17,519 17,513 17,183 69,938 16,142
Income Tax Expenses
Non-Real Estate Depreciation and Amortization 688 158 157 156 152 623 155

EBITDAre (1)

476,611 119,841 119,727 120,075 120,119 479,762 115,722
Income from Unconsolidated Joint Ventures
Net Operating Income
Office Properties 15,625 3,785 4,338 4,835 2,236 15,194 1,566
Other Properties 3,211 969 1,099 927 1,034 4,029 1,153
Net Operating Income 18,836 4,754 5,437 5,762 3,270 19,223 2,719
Loss on Sale of Undepreciated Property (598)
Interest Expense (2,071) (515) (863) (804) (729) (2,911) (617)
Termination Fee Income 9 7 74 81
Other Income 61 29 27 36 29 121 22
Funds from Operations – Unconsolidated Joint Ventures 16,237 4,268 4,608 5,068 2,570 16,514 2,124
Gain (Loss) on Sale of Depreciated Investment Properties, net 450 (3) (23) (13) (39) 124
Depreciation and Amortization of Real Estate (8,740) (2,365) (2,810) (2,917) (1,582) (9,674) (1,124)
Income from Unconsolidated Joint Ventures 7,947 1,903 1,795 2,128 975 6,801 1,124
Market Capitalization
Common Stock Price at Period End $ 33.50 $ 35.35 $ 36.78 $ 37.29 $ 40.28 $ 40.28 $ 40.29
Number of Common Stock/Units Outstanding at
Period End
148,589 148,679 148,713 148,713 148,713 148,713 148,788
Equity Market Capitalization 4,977,732 5,255,803 5,469,664 5,545,508 5,990,160 5,990,160 5,994,669
Consolidated Debt 2,162,719 2,214,692 2,050,173 2,047,599 2,237,509 2,237,509 2,349,484
Share of Unconsolidated Debt 115,040 144,168 145,480 158,707 112,805 112,805 112,713
Debt (1) 2,277,759 2,358,860 2,195,653 2,206,306 2,350,314 2,350,314 2,462,197
Total Market Capitalization 7,255,491 7,614,663 7,665,317 7,751,814 8,340,474 8,340,474 8,456,866
Continued on next page
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Q1 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
Credit Ratios
Debt (1) 2,277,759 2,358,860 2,195,653 2,206,306 2,350,314 2,350,314 2,462,197
Less: Cash and Cash Equivalents (4,290) (14,576) (9,792) (5,532) (8,937) (8,937) (7,000)
Less: Share of Unconsolidated Cash and Cash Equivalents (1) (9,419) (7,518) (7,598) (20,492) (4,285) (4,285) (9,217)
Net Debt (1) 2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980
Total Market Capitalization 7,255,491 7,614,663 7,665,317 7,751,814 8,340,474 8,340,474 8,456,866
Net Debt / Total Market Capitalization 31.2 % 30.7 % 28.4 % 28.1 % 28.0 % 28.0 % 28.9%
Total Assets – Consolidated 7,107,398 7,106,182 6,945,970 6,977,364 7,312,034 7,312,034 7,360,095
Accumulated Depreciation – Consolidated 1,090,566 1,164,427 975,658 1,054,847 1,065,047 1,065,047 1,110,315
Undepreciated Assets – Unconsolidated (1) 304,539 303,472 302,630 238,455 204,423 204,423 221,851
Less: Investment in Unconsolidated Joint Ventures (125,481) (113,353) (112,718) (111,351) (77,811) (77,811) (93,307)
Total Undepreciated Assets (1) 8,377,022 8,460,728 8,111,540 8,159,315 8,503,693 8,503,693 8,598,954
Net Debt (1) 2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980
Net Debt / Total Undepreciated Assets (1) 27.0 % 27.6 % 26.9 % 26.7 % 27.5 % 27.5 % 28.4%
Coverage Ratios (1)
Interest Expense 62,676 17,723 17,519 17,513 17,183 69,938 16,142
Scheduled Principal Payments 16,812 4,370 4,544 4,587 4,630 18,131 4,675
Fixed Charges 79,488 22,093 22,063 22,100 21,813 88,069 20,817

EBITDAre

476,611 119,841 119,727 120,075 120,119 479,762 115,722

Fixed Charges Coverage Ratio (EBITDAre) (1)

6.00 5.42 5.43 5.43 5.51 5.45 5.56
Net Debt 2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980

Annualized EBITDAre (2)

467,300 479,364 478,908 480,300 480,476 480,476 462,888

Net Debt / Annualized EBITDAre

4.84 4.87 4.55 4.54 4.86 4.86 5.28
Dividend Information
Common Dividends 178,263 46,135 46,038 46,094 46,909 185,176 48,447
FFO 413,247 101,960 102,051 102,406 102,784 409,201 99,425
FFO Payout Ratio 43.1 % 45.2 % 45.1 % 45.0 % 45.6 % 45.3 % 48.7%
Continued on next page
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NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
2020 2021 1st 2021 2nd 2021 3rd 2021 4th 2021 2022 1st
FFO 413,247 101,960 102,051 102,406 102,784 409,201 99,425
Amortization of Deferred Financing Costs 2,777 698 698 834 833 3,063 973
Non-Cash Stock-Based Compensation 5,298 1,667 1,708 1,800 1,830 7,005 2,748
Non-Real Estate Depreciation and Amortization 688 158 157 156 152 623 155
Lease Inducements 1,018 1,035 1,032 1,128 239 3,434 351
Straight-Line Rent Ground Leases 490 112 112 113 112 449 124
Above and Below Market Ground Rent 158 39 40 39 41 159 92
Transaction Costs (3) 428
Debt Premium Amortization (3,664) (916) (916) (916) (916) (3,664) (916)
Deferred Income – Tenant Improvements (7,532) (2,683) (2,769) (2,728) (1,250) (9,430) (633)
Above and Below Market Rents, Net (12,126) (2,374) (2,407) (2,973) (3,008) (10,762) (1,771)
Second Generation Capital Expenditures (CAPEX) (97,783) (12,093) (23,118) (24,880) (24,365) (84,456) (23,096)
Straight-Line Rental Revenue (40,437) (7,734) (5,509) (6,549) (5,029) (24,821) (5,501)
Loss (Gain) on Sales of Undepreciated Investment Properties (612) 64 64
FAD (1) 261,950 79,869 71,079 68,494 71,423 290,865 71,951
Weighted Average Shares – Diluted 148,636 148,725 148,740 148,772 148,905 148,891 149,002
FAD per share $ 1.76 $ 0.54 $ 0.48 $ 0.46 $ 0.48 $ 1.95 $ 0.48
Common Dividends 178,263 46,135 46,038 46,094 46,909 185,176 48,447
Common Dividends per share $ 1.20 $ 0.31 $ 0.31 $ 0.31 $ 0.31 $ 1.24 $ 0.32
FAD Payout Ratio (1) 68.1 % 57.8 % 64.8 % 67.3 % 65.7 % 63.7 % 67.3%
Operations Ratio
Total Undepreciated Assets (1) 8,377,022 8,460,728 8,111,540 8,159,315 8,503,693 8,503,693 8,598,954
General and Administrative Expenses 27,034 6,733 7,313 7,968 7,307 29,321 8,063
Annualized General and Administrative Expenses (2) / Total Undepreciated Assets 0.32 % 0.32 % 0.36 % 0.39 % 0.34 % 0.34 % 0.38%
2nd Generation CAPEX
Second Generation Leasing Related Costs 78,084 9,258 17,295 18,231 16,938 61,722 15,714
Second Generation Building Improvements 19,699 2,835 5,823 6,649 7,427 22,734 7,382
97,783 12,093 23,118 24,880 24,365 84,456 23,096
(1) Includes the Company’s share of unconsolidated joint ventures. These amounts are derived from the amounts in the categories indicated that are recorded at the joint venture multiplied by the Company’s ownership interest. The Company does not control the operations of the unconsolidated joint ventures but believes that including these amounts in the categories indicated is meaningful to investors and analysts.
(2) Amounts represent most recent quarter annualized.
(3) In 2020, transaction costs relate primarily to the merger with TIER REIT, Inc.
Note: Amounts may differ slightly from other schedules contained herein due to rounding.
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NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS

FUNDS FROM OPERATIONS

(in thousands, except per share amounts)

Three Months Ended March 31,

2022

2021

Dollars Weighted Average Common Shares Per Share Amount Dollars Weighted Average Common Shares Per Share Amount
Net Income Available to Common Stockholders $ 27,984 148,739 $ 0.19 $ 29,110 148,624 $ 0.20
Noncontrolling interest related to unitholders 6 25 6 25
Conversion of stock options 4
Conversion of unvested restricted stock units 238 72
Net Income – Diluted 27,990 149,002 0.19 29,116 148,725 0.20
Depreciation and amortization of real estate assets:
Consolidated properties 70,589 0.47 70,712 0.47
Share of unconsolidated joint ventures 1,124 0.01 2,365 0.02
Partners’ share of real estate depreciation (223) (211)
Loss (gain) on depreciated property transactions:
Consolidated properties 69 17
Share of unconsolidated joint ventures (124)
Sale of investments in unconsolidated joint ventures (39)
Funds From Operations $ 99,425 149,002 $ 0.67 $ 101,960 148,725 $ 0.69

The tables above show Funds From Operations (“FFO”) and the related reconciliation to Net Income Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the Nareit definition, which is net income available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, impairment on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts and investors as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, Nareit created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, as a performance measure for incentive compensation to its officers and other key employees.

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Q1 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS
(in thousands)
Three Months Ended
Net Operating Income

March 31, 2022

March 31, 2021
Net income $ 28,163 $ 29,311
Net operating income from unconsolidated joint ventures 2,719 4,754
Fee income (1,388) (4,529)
Termination fee income (1,462) (42)
Other income (2,283) (214)
Reimbursed expenses 360 368
General and administrative expenses 8,063 6,733
Interest expense 15,525 17,208
Depreciation and amortization 70,744 70,870
Other expenses 221 590
Income from unconsolidated joint ventures (1,124) (1,903)
Gain on sale of investment in unconsolidated joint ventures (39)
Loss on investment property transactions 69 17
Net Operating Income 119,607 123,124
Less:
Partners’ share of NOI from consolidated joint ventures (452) (415)
Cousins’ share of NOI $ 119,155 $ 122,709
Net Operating Income $ 119,607 $ 123,124
Non-cash income (8,075) (11,578)
Non-cash expense 229 151
Cash-Basis Net Operating Income $ 111,761 $ 111,697
Net Operating Income
Same Property $ 103,750 $ 105,912
Non-Same Property 15,857 17,212
$ 119,607 $ 123,124
Cash-Basis Net Operating Income
Same Property $ 97,460 $ 97,361
Non-Same Property 14,301 14,336
$ 111,761 $ 111,697
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35

Q1 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES – CALCULATIONS AND RECONCILIATIONS

RECONCILIATION OF PROJECTED NET INCOME AVAILABLE

TO COMMON STOCKHOLDERS TO PROJECTED FFO

Full Year 2022 Guidance
(in thousands, except per share amounts)
Low High
Dollars Per Share Amount (1) Dollars Per Share Amount (1)
Net Income Available to Common Stockholders and Net Income $ 113,000 $ 0.75 $ 125,000 $ 0.83
Add: Depreciation and amortization of real estate assets 295,000 1.95 295,000 1.95
Funds From Operations $ 408,000 $ 2.70 $ 420,000 $ 2.78
(1) Calculated based on projected weighted average shares outstanding of 151 million.
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36

Q1 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES – DEFINITIONS

The Company uses non-GAAP financial measures in its filings and other public disclosures. The following lists non-GAAP financial measures that the Company commonly uses, a description for each measure, the reasons that management believes the measure is useful to investors and, if material, any additional uses of the measure by management of the Company.

“Cash-Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements, amortization of acquired above and below market rents, and non-cash ground lease expense.

“EBITDAre” is a supplemental operating performance measure used in the real estate industry. The Company calculates EBITDAre in accordance with the Nareit definition, which is net income (loss) available to common stockholders (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, losses (gains) on the disposition of depreciated property, and impairment. All additions include the Company’s share of unconsolidated joint ventures. Management believes that EBITDAre provides analysts and investors with uniform and appropriate information to use in various ratios that evaluate the Company’s level of debt.

“Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of non-cash items and transaction costs and include deductions for second generation CAPEX. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company’s dividend policy with other real estate companies.

“Funds From Operations” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the Nareit definition: net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, impairment on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. FFO is used by industry analysts and investors as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, Nareit created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, as a performance measure for incentive compensation to its officers and other key employees.

“Net Debt” represents the Company’s consolidated debt plus the Company’s share of unconsolidated debt less consolidated cash and cash equivalents and our share of unconsolidated cash and cash equivalents. The Company believes excluding cash and cash equivalents from total debt provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts.

“Net Operating Income” (“NOI”) is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. NOI, which is rental property revenues (excluding termination fee income) less rental property operating expenses, excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property’s performance. Depreciation, amortization, and impairment are also excluded from NOI for the reasons described under FFO above.

“Same Property Net Operating Income” represents Net Operating Income or Cash-Basis Net Operating Income for those office properties that were stabilized and owned by the Company for the entirety of all comparable reporting periods presented. A stabilized property is one that has achieved 90% economic occupancy or has been substantially complete and owned by the Company for one year. Same Property Net Operating Income or Cash-Basis Same Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company’s portfolio.

“Second Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space in newly acquired buildings, leasing costs for spaces that have been vacant for one year or more, building improvements on newly acquired buildings that management identifies as necessary to bring the building to the Company’s operational standards, and leasing costs and building improvements associated with properties identified as under redevelopment or repositioning. In addition, the Company excludes building improvements intended to attract tenants to increase revenues and/or occupancy rates.

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Q1 2022 Supplemental Information

Disclaimer

Cousins Properties Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 22:10:52 UTC.

Publicnow 2022

All news about COUSINS PROPERTIES INCORPORATED

Analyst Recommendations on COUSINS PROPERTIES INCORPORATED

Sales 2022 760 M

Net income 2022 118 M

Net Debt 2022 2 286 M

P/E ratio 2022 43,6x
Yield 2022 3,36%
Capitalization 5 671 M
5 671 M
EV / Sales 2022 10,5x
EV / Sales 2023 9,99x
Nbr of Employees 294
Free-Float 97,8%

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Income Statement Evolution

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Mean consensus OUTPERFORM
Number of Analysts 7
Last Close Price 38,12 $
Average target price 44,43 $
Spread / Average Target 16,5%


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