EX-99.1 2 a8-kearningsreleaseex9914q.htm EXHIBIT 99.1 Exhibit
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1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
4
Condensed Consolidated Statements of Operations
6
Condensed Consolidated Balance Sheets
Funds From Operations - Detail
Portfolio Statistics
Office Leasing Activity
Office Lease Expirations
Top 20 Office Tenants
Tenant Industry Diversification
Investment Activity
Land Inventory
Debt Schedule
Non-GAAP Financial Measures - Calculations and Reconciliations
Non-GAAP Financial Measures - Discussion
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Cousins Properties Incorporated
 
Q4 2017 Supplemental Information

FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2017 and as itemized herein. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as, our business and financial strategy; future financing; future acquisitions and dispositions of operating assets; future acquisitions of land; future development and redevelopment opportunities; future dispositions of land and other non-core assets; future issuances and repurchases of common stock; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; the impact of the transactions involving us, Parkway Properties, Inc. ("Parkway") and Parkway, Inc. ("New Parkway"), including future financial and operating results, plans, objectives, expectations and intentions; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.
Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the availability and terms of capital; the ability to refinance or repay indebtedness as it matures; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions, investments, or dispositions; the potential dilutive effect of common stock or operating partnership unit issuances; the availability of buyers and pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Charlotte, Austin, and Phoenix where we have high concentrations of our lease revenue; changes to our strategy with regard to land and other non-core holdings that require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, and the risk of declining leasing rates; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; competition from other developers or investors; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements; risks associated with litigation resulting from the transactions with Parkway and from liabilities or contingent liabilities assumed in the transactions with Parkway; risks associated with any errors or omissions in financial or other information of Parkway that has been previously provided to the public; potential changes to state, local, or federal regulations applicable to our business; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; potential changes to the tax laws impacting REITs and real estate in general; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by the Company.
The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise, except as required under U.S. federal securities laws.

Cousins Properties Incorporated
3
Q4 2017 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017

Highlights
Net income available to common stockholders for the fourth quarter was $0.07 per share.
Funds From Operations for the fourth quarter was $0.15 per share.
Same property net operating income on a cash basis increased 4.2% during the fourth quarter.
Legacy Parkway same property net operating income on a cash basis increased 5.7% during the fourth quarter.
Second generation net rent per square foot on a cash basis increased 6.3% during the fourth quarter.
Executed 943,022 square feet of office leases during the fourth quarter.
Sold the three-property downtown Orlando portfolio for $208.1 million.
Sold the Company's 20% interest in Courvoisier Centre in Miami in a transaction that valued the Company's interest at $33.9 million.
Subsequent to quarter end, the Company:
Completed the development of 864 Spring Street, Phase One of NCR's world headquarters in midtown Atlanta.
Closed a new $1 billion unsecured revolving credit facility that replaced the existing $500 million facility.
Announced 300 Colorado, a 100% leased, 309,000 square foot office tower development in downtown Austin.
ATLANTA (February 7, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2017.
“It was a solid quarter highlighted by several sizable transactions that we believe will generate significant value for our shareholders.” said Larry Gellerstedt, Chairman and Chief Executive Officer of Cousins Properties. “Looking forward, we are excited about the prospects in 2018 and beyond. We have built a unique and compelling company with an outstanding balance sheet that is in a strong position to take advantage of opportunities as they arise.”
Financial Results
Net income available to common stockholders was $31.4 million, or $0.07 per share, for the fourth quarter of 2017, compared with $36.9 million, or $0.10 per share, for the fourth quarter of 2016. Net income available to common stockholders was $216.3 million, or $0.52 per share, for the year ended December 31, 2017, compared with $79.1 million, or $0.31 per share, for the year ended December 31, 2016.
Funds From Operations ("FFO") was $64.2 million, or $0.15 per share, for the fourth quarter of 2017, compared with $27.4 million, or $0.07 per share, for the fourth quarter of 2016. FFO was $259.9 million, or $0.61 per share, for the year ended December 31, 2017, compared with $160.6 million, or $0.63 per share, for the year ended December 31, 2016.


Cousins Properties Incorporated
4
Q4 2017 Supplemental Information

EARNINGS RELEASE


2018 FFO Guidance
For the year ending December 31, 2018, the Company expects to report net income in the range of $0.15 to $0.19 per share and FFO in the range of $0.59 to $0.63 per share. This guidance reflects management's view of current and future market conditions, as well as the earnings impact of events referenced in this release and corresponding conference call.
2018 FFO guidance includes the following assumptions:
Same property net operating income growth of 2.0% to 4.0% on a GAAP basis.
Same property net operating income growth of 3.5% to 5.5% on a cash basis.
Fee and other income of $10 million to $12 million. Guidance does not include potential termination fees.
General and administrative expenses of $24 million to $26 million, net of capitalized salaries.
Interest and other expenses of $46 million to $48 million, net of capitalized interest.
No property acquisition or disposition activity.
No new development projects except those disclosed herein.
GAAP straight-lined rental revenue of $26.5 million to $28.5 million.
Above and below market rental revenue of $6.5 million to $8.5 million.
A reconciliation of projected net income per share to projected FFO per share is provided as follows:
 
Full Year 2018 Range
 
Low
 
High
Net income per share
$
0.15

 
$
0.19

Add: Real estate depreciation and amortization
0.44

 
0.44

Funds From Operations per share
$
0.59

 
$
0.63

The Company's guidance is provided for information purposes based on current plans and assumptions and is subject to change.
Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 8, 2018, to discuss the results of the quarter and year ended December 31, 2017. The number to call for this interactive teleconference is (877) 247-1056.
A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10115599. The live webcast and replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Cousins Properties Fourth Quarter 2017 Conference Call” link on the Investor Relations page.
Acting through its operating partnership Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.

Cousins Properties Incorporated
5
Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended December 31,
 
Year Ended December 31,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Rental property revenues
$
109,942

 
$
111,432

 
$
446,035

 
$
249,814

Fee income
2,245

 
2,379

 
8,632

 
8,347

Other
1,925

 
481

 
11,518

 
1,050

 
114,112

 
114,292

 
466,185

 
259,211

Expenses:
 

 
 

 
 

 
 

Rental property operating expenses
40,167

 
41,456

 
163,882

 
96,908

Reimbursed expenses
860

 
796

 
3,527

 
3,259

General and administrative expenses
5,530

 
8,290

 
27,523

 
25,592

Interest expense
7,673

 
10,089

 
33,524

 
26,650

Depreciation and amortization
44,199

 
48,145

 
196,745

 
97,948

Acquisition and transaction costs
162

 
20,633

 
1,661

 
24,521

Other
733

 
5,205

 
1,796

 
5,888

 
99,324

 
134,614

 
428,658

 
280,766

Gain (loss) on extinguishment of debt

 
(5,180
)
 
2,258

 
(5,180
)
Income (loss) from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties
14,788

 
(25,502
)
 
39,785

 
(26,735
)
Income from unconsolidated joint ventures
3,753

 
5,418

 
47,115

 
10,562

Income (loss) from continuing operations before gain on sale of investment properties
18,541

 
(20,084
)
 
86,900

 
(16,173
)
Gain on sale of investment properties
13,330

 
63,169

 
133,059

 
77,114

Income from continuing operations
31,871

 
43,085

 
219,959

 
60,941

Income (loss) from discontinued operations

 
(5,198
)
 

 
19,163

Net income
31,871

 
37,887

 
219,959

 
80,104

Net income attributable to noncontrolling interests
(503
)
 
(995
)
 
(3,684
)
 
(995
)
Net income available to common stockholders
$
31,368

 
$
36,892

 
$
216,275

 
$
79,109

Per common share information — basic and diluted:
 
 
 
 
 
 
 
Income from continuing operations for common stockholders
$
0.07

 
$
0.11

 
$
0.52

 
$
0.24

Income from discontinued operations for common stockholders

 
(0.01
)
 

 
0.07

Net income available to common stockholders
$
0.07

 
$
0.10

 
$
0.52

 
$
0.31

Weighted average shares — basic
420,021

 
383,654

 
415,610

 
253,895

Weighted average shares — diluted
427,288

 
391,413

 
423,297

 
256,023


Cousins Properties Incorporated
6
Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
December 31, 2017
 
December 31, 2016
 
(unaudited)
 
 
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $275,977 and $215,856 in 2017 and 2016, respectively
$
3,332,619

 
$
3,432,522

Projects under development
280,982

 
162,387

Land
4,221

 
4,221

 
3,617,822

 
3,599,130

 
 
 
 
Cash and cash equivalents
148,929

 
35,687

Restricted cash
56,816

 
15,634

Notes and accounts receivable, net of allowance for doubtful accounts of $535 and $1,167 in 2017 and 2016, respectively
14,420

 
27,683

Deferred rents receivable
58,158

 
39,464

Investment in unconsolidated joint ventures
101,414

 
179,397

Intangible assets, net of accumulated amortization of $104,931 and $53,483 in 2017 and 2016, respectively
186,206

 
245,529

Other assets
20,854

 
29,083

Total assets
$
4,204,619

 
$
4,171,607

Liabilities:
 
 
 
Notes payable
$
1,093,228

 
$
1,380,920

Accounts payable and accrued expenses
137,909

 
109,278

Deferred income
37,383

 
33,304

Intangible liabilities, net of accumulated amortization of $28,960 and $12,227 in 2017 and 2016, respectively
70,454

 
89,781

Other liabilities
40,534

 
44,084

Total liabilities
1,379,508

 
1,657,367

Commitments and contingencies
 
 
 
Equity:
 
 
 
Stockholders' investment:
 
 
 
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2017 and 2016
6,867

 
6,867

Common stock, $1 par value, 700,000,000 shares authorized, 430,349,620 and 403,746,938 shares issued in 2017 and 2016, respectively
430,350

 
403,747

Additional paid-in capital
3,604,776

 
3,407,430

Treasury stock at cost, 10,329,082 shares in 2017 and 2016
(148,373
)
 
(148,373
)
Distributions in excess of cumulative net income
(1,121,647
)
 
(1,214,114
)
Total stockholders' investment
2,771,973

 
2,455,557

Nonredeemable noncontrolling interests
53,138

 
58,683

Total equity
2,825,111

 
2,514,240

Total liabilities and equity
$
4,204,619

 
$
4,171,607



Cousins Properties Incorporated
7
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
Property Statistics
 
 
 
 
 
 
 
 
 
 
 
Consolidated Operating Properties
12

11

11

11

25

25

26

26

26

23

23

Consolidated Rentable Square Feet (in thousands)
12,122

11,993

11,993

11,993

13,024

13,024

13,249

12,477

12,466

11,428

11,428

Unconsolidated Operating Properties
6

6

6

6

8

8

7

5

6

5

5

Unconsolidated Rentable Square Feet (in thousands)
3,434

3,435

3,435

3,435

3,999

3,999

3,774

2,988

3,456

3,113

3,113

Total Operating Properties
18

17

17

17

33

33

33

31

32

28

28

Total Rentable Square Feet (in thousands)
15,556

15,428

15,428

15,428

17,023

17,023

17,023

15,465

15,922

14,541

14,541

 
 
 
 
 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
 
 
 
 
Net Leased during the period (square feet in thousands)
2,972

220

402

971

761
2,354

571

341

335

943

2,190

Net Rent (per square foot)
$18.30
$23.55
$22.73
$23.51
$26.32
$24.52
$26.10
$28.58
$26.57
$32.73
$29.41
Tenant improvements, leasing commissions, and free rent
    (per square foot)
(3.64)

(6.31)

(7.08)

(6.18)

(6.08)

(6.35)

(7.44)

(7.42)

(5.84)

(6.48)

(6.77)

Net Effective Rent (per square foot)
$14.66
$17.24
$15.65
$17.33
$20.24
$18.17
$18.66
$21.16
$20.73
$26.25
$22.64
Change in Second Generation Net Rent
36.7
%
18.9
%
17.2
%
27.9
%
18.7
%
20.0
%
15.8
%
28.5
%
16.9
%
19.7
%
19.6
%
Change in Cash-Basis Second Generation Net Rent
19.8
%
1.8%

4.3
%
9.1
%
14.7
%
10.3
%
3.3
%
13.5
%
7.3
%
6.3
%
6.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Same Property Information (2)
 
 
 
 
 
 
 
 
 
 
 
Percent Leased (period end)
91.6
%
90.3
%
90.7
%
91.2
%
91.8
%
91.8
%
92.1
%
93.9
%
92.9
%
92.6
%
92.6
%
Weighted Average Occupancy
90.7
%
89.4
%
89.2
%
89.5
%
89.4
%
89.4
%
89.9
%
90.7
%
89.1
%
87.7
%
89.4
%
Change in Net Operating Income (over prior year period)
3.3
%
4.3
%
1.4
%
3.6
%
4.4
%
6.1
%
5.5
%
6.8
%
1.3
%
3.6
%
4.4
%
Change in Cash-Basis Net Operating Income (over prior year period)
7.3
%
8.6
%
3.9
%
4.3
%
7.1
%
8.4
%
5.4
%
8.6
%
2.0
%
4.2
%
5.3
%
 
 
 
 
 
 
 
 
 
 
 
 
Development Pipeline
 
 
 
 
 
 
 
 
 
 
 
Estimated Project Costs (in thousands) (3)
$261,500
$326,300
$340,200
$506,200
$512,200
$512,200
$529,200
$463,500
$402,000
$490,500
$490,500
Estimated Project Costs (3) / Total Undepreciated Assets
7.6
%
9.5
%
9.6
%
13.7
%
10.5
%
10.5
%
10.6
%
9.6
%
8.1
%
9.9
%
9.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization (4)
 
 
 
 
 
 
 
 
 
 
 
Common Stock Price (period end)
$9.43
$10.38
$10.40
$10.44
$8.51
$8.51
$8.27
$8.79
$9.34
$9.25
$9.25
Common Shares/Units Outstanding (period end in thousands)
211,513

210,107

210,171

210,170

401,596

401,596

426,823

426,942

426,995

426,995

426,995

Equity Market Capitalization (in thousands)
$1,994,568
$2,180,911
$2,185,778
$2,194,175
$3,417,582
$3,417,582
$3,529,826
$3,752,820
$3,988,133
$3,949,704
$3,949,704
Debt (in thousands)
947,017

992,241

999,999

1,112,322

1,632,270

1,632,270

1,498,044

1,205,632

1,286,252

1,262,523

1,262,523

Total Market Capitalization (in thousands)
$2,941,585
$3,173,152
$3,185,777
$3,306,497
$5,049,852
$5,049,852
$5,027,870
$4,958,452
$5,274,385
$5,212,227
$5,212,227
 
 
 
 
 
 
 
 
 
 
 
 
Credit Ratios (4)
 
 
 
 
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
32.1
%
31.1
%
31.4
%
30.7
%
31.6
%
31.6
%
29.1
%
24.0
%
23.2
%
21.4
%
21.4
%
Net Debt/Total Undepreciated Assets
27.4
%
28.6
%
28.3
%
27.5
%
32.8
%
32.8
%
29.4
%
24.7
%
24.7
%
22.5
%
22.5
%
Net Debt/Annualized EBITDA
3.99

4.63

4.51

4.34

5.22

5.22

4.49

3.93

4.31

3.75

3.75

Fixed Charges Coverage
4.84

4.49

4.43

4.46

5.04

4.63

5.13

5.49

5.82

6.01

5.58

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
8
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
Dividend Information (4)
 
 
 
 
 
 
 
 
 
 
 
Common Dividend per Share (5)
$0.32
$0.08
$0.08
$0.08
$0.06
$0.30
$0.06
$0.06
$0.06
$0.06
$0.24
FFO Payout Ratio
35.9
%
38.9
%
38.8
%
36.2
%
85.9
%
46.1
%
37.5
%
38.0
%
40.4
%
39.3
%
38.8
%
FAD Payout Ratio
61.4
%
55.9
%
61.7
%
58.3
%
61.1
%
59.3
%
58.2
%
54.4
%
69.9
%
69.5
%
62.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operations Ratios (4)
 
 
 
 
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.49
%
0.96
%
0.53
%
0.47
%
0.68
%
0.53
%
0.50
%
0.72
%
0.58
%
0.45
%
0.56
%
 
 
 
 
 
 
 
 
 
 
 
 
Additional Information (4)
 
 
 
 
 
 
 
 
 
 
 
Straight Line Rental Revenue
$20,009
$3,595
$3,434
$3,449
$8,489
$18,967
$9,608
$7,826
$6,825
$6,714
$30,973
Above and Below Market Rents Amortization
$7,981
$1,834
$1,854
$1,907
$1,502
$7,097
$1,602
$1,929
$1,852
$1,838
$7,221
Second Generation Capital Expenditures
$54,214
$7,904
$13,166
$13,968
$11,838
$46,876
$10,971
$7,569
$15,949
$18,996
$53,485
 
 
 
 
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 19 for additional detail and explanations.
(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 17 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 35 for additional information.
(3) Represents Cousins' share of estimated project costs. See Development Pipeline on page 26 for additional detail.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.
(5) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.


Cousins Properties Incorporated
9
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS


                                 
chart-e8133b2757015145984.jpgchart-7dbb1ad22efe539e8c9.jpg chart-1107cc7e44af534b979.jpg
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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 Incorporated
10
Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
$
241,232

$
59,513

$
59,008

$
61,621

$
80,139

$
260,281

$
80,167

$
80,115

$
75,815

$
77,109

$
313,206

Land Sales Less Cost of Sales
3,905




3,770

3,770


63

4


67

Fee Income
7,297

2,199

1,824

1,945

2,379

8,347

1,936

1,854

2,597

2,245

8,632

Other Income
2,451

1,121

280

287

3,837

5,525

6,889

5,304

1,634

2,164

15,991

Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(40,704
)
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$62,334
$
64,169

$
259,900

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

427,288

423,297

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61




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

Cousins Properties Incorporated
11
Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
$

$

$

$

$
5,957

$
5,957

$
6,356

$
6,370

$
6,302

$
7,158

$
26,186

Hayden Ferry (2)




3,881

3,881

5,209

5,307

5,466

5,968

21,950

Corporate Center (2)




5,005

5,005

4,761

5,374

5,308

5,446

20,889

Northpark (2)
22,400

5,607

5,097

5,599

5,841

22,144

5,410

5,130

4,945

5,021

20,506

Fifth Third Center
14,956

4,238

4,349

4,451

4,463

17,501

4,842

4,681

4,772

4,989

19,284

Promenade
13,985

3,740

3,419

3,839

3,557

14,555

4,173

4,407

4,184

3,991

16,755

San Jacinto Center




3,456

3,456

4,038

4,207

3,918

3,906

16,069

One Eleven Congress




3,256

3,256

3,713

3,735

4,172

3,526

15,146

Colorado Tower
6,768

2,724

3,064

3,221

3,399

12,408

3,383

3,352

3,344

3,478

13,557

One Buckhead Plaza




2,817

2,817

3,097

2,806

3,071

2,760

11,734

3344 Peachtree




3,505

3,505

3,235

2,884

2,705

2,085

10,909

816 Congress Avenue
8,526

2,468

2,555

2,514

2,363

9,900

2,694

2,641

2,766

2,797

10,898

NASCAR Plaza




2,507

2,507

2,477

2,394

2,609

2,709

10,189

3350 Peachtree




2,006

2,006

2,264

2,288

2,153

1,968

8,673

Tempe Gateway




1,966

1,966

2,008

2,136

1,964

1,971

8,079

3348 Peachtree




1,541

1,541

1,491

1,491

1,657

1,507

6,146

Two Buckhead Plaza




1,369

1,369

1,321

1,337

1,318

1,806

5,782

The Pointe




1,227

1,227

1,146

1,146

1,069

1,207

4,568

Meridian Mark Plaza
3,777

908

857

954

955

3,674

989

997

979

1,116

4,081

111 West Rio







1,396

1,236

1,412

4,044

Harborview Plaza




898

898

930

931

1,035

1,074

3,970

Research Park V


144

288

412

844

359

916

874

827

2,976

8000 Avalon








80

353

433

NCR









50

50

Other (3)
43,287

7,864

7,443

7,587

9,593

32,487

7,095

6,580

2,954

2,650

19,279

Subtotal - Consolidated
113,699

27,549

26,928

28,453

69,974

152,904

70,991

72,506

68,881

69,775

282,153

 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Properties (4)
 
 
 
 
 
 
 
 
 
 
 
Terminus 100
7,268

1,872

1,978

1,899

1,837

7,586

1,912

1,906

1,829

1,851

7,498

Gateway Village (2)(5)
1,208

536

451

460

1,003

2,450

1,751

1,756

1,805

1,735

7,047

Terminus 200
6,069

1,658

1,770

1,678

1,648

6,754

1,798

1,749

1,769

1,663

6,979

Emory University Hospital Midtown Medical Office Tower
3,974

987

1,000

975

1,008

3,970

989

948

961

1,015

3,913

Carolina Square








47

658

705

Other (3)
5,816

1,593

1,755

1,748

2,930

8,026

2,726

1,250

523

412

4,911

Subtotal - Unconsolidated
24,335

6,646

6,954

6,760

8,426

28,786

9,176

7,609

6,934

7,334

31,053

 
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
103,198

25,318

25,126

26,408

1,739

78,591






 
 
 
 
 
 
 
 
 
 
 
 
Total Net Operating Income (1)
241,232

59,513

59,008

61,621

80,139

260,281

80,167

80,115

75,815

77,109

313,206

 
 
 
 
 
 
 
 
 
 
 
 
Sales Less Cost of Sales
 
 
 
 
 
 
 
 
 
 
 
Land Sales Less Cost of Sales - Consolidated
1,625




3,580

3,580


63

4


67

Land Sales Less Cost of Sales - Unconsolidated (4)
2,280




190

190






Total Sales Less Cost of Sales
3,905




3,770

3,770


63

4


67

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
12
Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
 
 
 
 
Management Fees (7)
5,188

1,325

1,263

1,253

1,317

5,158

1,402

1,492

1,458

1,442

5,794

Development Fees
1,778

608

486

549

634

2,277

432

318

1,062

328

2,140

Leasing & Other Fees
331

266

75

143

428

912

102

44

77

475

698

Total Fee Income
7,297

2,199

1,824

1,945

2,379

8,347

1,936

1,854

2,597

2,245

8,632

 
 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
 
Termination Fees
398




122

122

5,238

2,913

734

385

9,270

Gain on Extinguishment of Debt







1,829

429


2,258

Interest and Other Income
460

390

27

153

358

928

188

262

258

1,540

2,248

Termination Fees - Unconsolidated (4)
419




3,000

3,000

959

195

132

8

1,294

Interest and Other Income - Unconsolidated (4)
747

546

151

134

357

1,188

504

105

81

231

921

Termination Fees - Discontinued Operations (6)
450

186

102



288






Interest and Other Income - Discontinued Operations (6)
(23
)
(1
)



(1
)





Total Other Income
2,451

1,121

280

287

3,837

5,525

6,889

5,304

1,634

2,164

15,991

 
 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
9,748

3,320

2,104

2,232

6,216

13,872

8,825

7,158

4,231

4,409

24,623

 
 
 
 
 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
 
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 


 
 
 
 
 
 
 
Term Loan, Unsecured




(386
)
(386
)
(1,288
)
(1,564
)
(1,655
)
(1,691
)
(6,198
)
Fifth Third Center



(427
)
(1,275
)
(1,702
)
(1,272
)
(1,266
)
(1,260
)
(1,254
)
(5,052
)
Promenade
(4,734
)
(1,165
)
(1,157
)
(1,150
)
(1,142
)
(4,614
)
(1,134
)
(1,127
)
(1,119
)
(1,112
)
(4,492
)
Senior Notes, Unsecured ($250M)








(2,353
)
(2,489
)
(4,842
)
Colorado Tower



(353
)
(1,059
)
(1,412
)
(1,059
)
(1,059
)
(1,059
)
(1,059
)
(4,236
)
816 Congress Avenue
(3,269
)
(817
)
(817
)
(817
)
(817
)
(3,268
)
(814
)
(810
)
(806
)
(803
)
(3,233
)
Credit Facility, Unsecured
(4,089
)
(832
)
(1,053
)
(870
)
(1,159
)
(3,914
)
(1,035
)
(1,153
)
(444
)
(418
)
(3,050
)
Senior Notes, Unsecured ($100M)







(876
)
(1,025
)
(1,036
)
(2,937
)
Meridian Mark Plaza
(1,538
)
(381
)
(379
)
(377
)
(375
)
(1,512
)
(373
)
(372
)
(370
)
(368
)
(1,483
)
The Pointe




(171
)
(171
)
(176
)
(178
)
(177
)
(176
)
(707
)
Other (3)
(12,684
)
(2,987
)
(2,979
)
(2,990
)
(5,413
)
(14,369
)
(4,180
)
(2,336
)
(20
)

(6,536
)
Capitalized
3,577

742

1,016

1,230

1,709

4,697

1,590

2,218

2,701

2,733

9,242

Subtotal - Consolidated
(22,737
)
(5,440
)
(5,369
)
(5,754
)
(10,088
)
(26,651
)
(9,741
)
(8,523
)
(7,587
)
(7,673
)
(33,524
)
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 


 
 
 
 
 
 
 
Terminus 100
(3,436
)
(848
)
(844
)
(840
)
(836
)
(3,368
)
(831
)
(827
)
(824
)
(818
)
(3,300
)
Terminus 200
(1,560
)
(390
)
(389
)
(387
)
(385
)
(1,551
)
(383
)
(382
)
(380
)
(378
)
(1,523
)
Emory University Hospital Midtown Medical Office Tower
(1,333
)
(330
)
(329
)
(327
)
(325
)
(1,311
)
(324
)
(322
)
(320
)
(319
)
(1,285
)
Carolina Square








(27
)
(157
)
(184
)
Other (3)
(1,126
)
(439
)
(464
)
(484
)
(806
)
(2,193
)
(787
)
(390
)
(225
)
(164
)
(1,566
)
Subtotal - Unconsolidated
(7,455
)
(2,007
)
(2,026
)
(2,038
)
(2,352
)
(8,423
)
(2,325
)
(1,921
)
(1,776
)
(1,836
)
(7,858
)
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
(7,986
)
(1,974
)
(1,965
)
(1,956
)
(126
)
(6,021
)






Cousins Properties Incorporated
13
Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
 
 
 
 
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
 
 
 
 
Transaction Costs - Merger

(19
)
(2,424
)
(1,446
)
(20,633
)
(24,522
)
(1,930
)
(246
)
677

(162
)
(1,661
)
Property Taxes and Other Holding Costs
(828
)
(89
)
(98
)
(95
)
(158
)
(440
)
(304
)
(140
)
(139
)
(181
)
(764
)
Predevelopment & Other
(522
)
(108
)
(118
)
(140
)
(577
)
(943
)
(129
)
(156
)
(265
)
(253
)
(803
)
Severance
(181
)
(249
)



(249
)
(28
)

(73
)
(345
)
(446
)
Partners' share of FFO in consolidated joint ventures
(111
)



(3,775
)
(3,775
)


(4
)
(12
)
(16
)
Transaction Costs - Spin-off



(494
)
(5,855
)
(6,349
)





Loss on Extinguishment of Debt - Unconsolidated (4)




(5,180
)
(5,180
)





Impairment Loss




(4,526
)
(4,526
)





Acquisition Costs
(299
)










Total Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(40,704
)
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
(1,621
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
Unconsolidated (4)
(48
)










Total Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
 
 
 
 
 
 
 
 
 
 
 
 
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$
62,334

$
64,169

$
259,900

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

427,288

423,297

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61

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) Represents properties sold and loans repaid prior to December 31, 2017 that are not considered discontinued operations.
(4) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but
      believes including these amounts in the categories indicated is meaningful to investors and analysts.
(5) Through December 1, 2016, the Company received an 11.46% current return on its $11.1 million investment in Gateway Village and, when certain other revenue criteria were met, received additional returns. The Company recognized these amounts as
      NOI from this venture. After December 1, 2016, net income and cash flows were allocated 50% to each joint venture member.
(6) Primarily represents Greenway Plaza and Post Oak Central.
(7) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.

Cousins Properties Incorporated
14
Q4 2017 Supplemental Information

PORTFOLIO STATISTICS

 
Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased 4Q17
 
End of Period Leased 3Q17
 
Weighted Average Occupancy 4Q17
 
Weighted Average Occupancy 3Q17
 
% of Total
Net Operating
Income (1)
 
Property Level Debt ($000) (2)
 
Northpark (3)
 
1,528,000

 
Consolidated
 
100%
 
86.3%
 
88.1%
 
75.3%
 
78.7%
 
6.8%
 
$

 
Promenade
 
777,000

 
Consolidated
 
100%
 
94.1%
 
94.1%
 
94.1%
 
94.2%
 
5.4%
 
102,071

 
One Buckhead Plaza
 
461,000

 
Consolidated
 
100%
 
89.6%
 
89.5%
 
89.5%
 
90.4%
 
3.7%
 

 
3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
91.7%
 
91.7%
 
90.6%
 
89.8%
 
2.8%
 

 
3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
86.2%
 
93.2%
 
93.2%
 
93.1%
 
2.7%
 

 
Terminus 100
 
660,000

 
Unconsolidated
 
50%
 
93.7%
 
89.9%
 
88.6%
 
89.9%
 
2.5%
 
61,922

 
Two Buckhead Plaza
 
210,000

 
Consolidated
 
100%
 
91.0%
 
85.1%
 
83.9%
 
82.5%
 
2.4%
 

 
Terminus 200
 
566,000

 
Unconsolidated
 
50%
 
94.1%
 
98.2%
 
90.6%
 
94.0%
 
2.2%
 
39,644

 
3348 Peachtree
 
258,000

 
Consolidated
 
100%
 
87.1%
 
89.7%
 
88.9%
 
90.0%
 
2.0%
 

 
Meridian Mark Plaza
 
160,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.5%
 
23,970

 
Emory University Hospital Midtown Medical Office Tower
 
358,000

 
Unconsolidated
 
50%
 
99.5%
 
99.5%
 
98.5%
 
96.3%
 
1.4%
 
35,523

 
8000 Avalon
 
224,000

 
Consolidated
 
90%
 
94.1%
 
93.9%
 
39.0%
 
4.8%
 
0.5%
 

 
ATLANTA
 
6,099,000

 
 
 
 
 
90.5%
 
91.4%
 
84.9%
 
84.8%
 
33.9%
 
263,130

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
 
966,000

 
Consolidated
 
100%
 
98.9%
 
98.7%
 
98.7%
 
98.6%
 
9.7%
 

 
Fifth Third Center
 
698,000

 
Consolidated
 
100%
 
98.8%
 
96.7%
 
95.9%
 
95.9%
 
6.7%
 
145,974

 
NASCAR Plaza
 
394,000

 
Consolidated
 
100%
 
98.7%
 
98.7%
 
98.7%
 
98.6%
 
3.7%
 

 
Gateway Village (3)
 
1,061,000

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

 
CHARLOTTE
 
3,119,000

 
 
 
 
 
98.9%
 
98.3%
 
98.1%
 
98.0%
 
22.4%
 
145,974

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
San Jacinto Center
 
395,000

 
Consolidated
 
100%
 
94.4%
 
98.9%
 
98.7%
 
99.2%
 
5.3%
 

 
One Eleven Congress
 
519,000

 
Consolidated
 
100%
 
87.8%
 
88.1%
 
85.0%
 
84.4%
 
4.8%
 

 
Colorado Tower
 
373,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
4.7%
 
119,165

 
816 Congress
 
435,000

 
Consolidated
 
100%
 
95.2%
 
95.2%
 
95.2%
 
94.6%
 
3.8%
 
82,742

 
Research Park V
 
173,000

 
Consolidated
 
100%
 
97.1%
 
97.1%
 
85.7%
 
85.7%
 
1.1%
 

 
AUSTIN
 
1,895,000

 
 
 
 
 
94.1%
 
95.1%
 
93.2%
 
93.0%
 
19.7%
 
201,907

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hayden Ferry (3)
 
789,000

 
Consolidated
 
100%
 
96.2%
 
93.0%
 
91.2%
 
92.9%
 
8.0%
 

 
Tempe Gateway
 
264,000

 
Consolidated
 
100%
 
98.6%
 
98.5%
 
98.5%
 
97.3%
 
2.7%
 

 
111 West Rio
 
225,000

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

 
PHOENIX
 
1,278,000

 
 
 
 
 
97.3%
 
95.4%
 
94.3%
 
95.0%
 
12.6%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Center (3)
 
1,224,000

 
Consolidated
 
100%
 
96.7%
 
96.5%
 
91.8%
 
86.9%
 
7.3%
 

 
The Pointe
 
253,000

 
Consolidated
 
100%
 
93.1%
 
97.6%
 
95.0%
 
94.7%
 
1.6%
 
22,729

 
Harborview Plaza
 
205,000

 
Consolidated
 
100%
 
99.7%
 
98.0%
 
98.0%
 
98.0%
 
1.5%
 

 
TAMPA
 
1,682,000

 
 
 
 
 
96.5%
 
96.9%
 
93.1%
 
89.4%
 
10.4%
 
22,729

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Office (4)
 
158,000

 
Unconsolidated
 
50%
 
74.8%
 
74.3%
 
23.1%
 
—%
 
0.2%
 
10,873

 
CHAPEL HILL
 
158,000

 
 
 
 
 
74.8%
 
74.3%
 
23.1%
 
—%
 
0.2%
 
10,873

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OFFICE
 
14,231,000

 
 
 
 
 
94.1%
 
94.4%
 
90.4%
 
89.8%
 
99.2%
 
$
644,613

 
 
Other Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Retail (4)
 
44,000

 
Unconsolidated
 
50%
 
81.5%
 
81.5%
 
58.0%
 
41.3%
 
0.1%
 
3,028

 
Carolina Square Apartments (246 Units) (4)
 
266,000

 
Unconsolidated
 
50%
 
91.1%
 
87.0%
 
87.4%
 
55.0%
 
0.7%
 
18,305

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OTHER
 
310,000

 
 
 
 
 
89.7%
 
86.2%
 
83.2%
 
53.1%
 
0.8%
 
$
21,333

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL
 
14,541,000

 
 
 
 
 
 
 
 
 
 
 
 
 
100.0%
 
$
665,946

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See next page for footnotes

Cousins Properties Incorporated
15
Q4 2017 Supplemental Information

PORTFOLIO STATISTICS



chart-785bec3ffcd35ada857.jpg
(1
)
Represents the Company's share of net operating income for the three months ended December 31, 2017.
(2
)
Represents the Company's share of property specific mortgage debt as of December 31, 2017.
(3
)
Contains multiple buildings that are grouped together for reporting purposes.
(4
)
The Company's share of Carolina Square debt has been allocated to office, retail, and apartments based on their relative square footage.


Cousins Properties Incorporated
16
Q4 2017 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

 
COUSINS PROPERTIES INCORPORATED
 
 
 
 
Net Operating Income ($ in thousands)
 
 
 
 
Three Months Ended December 31,
 
 
 
 
2017
 
2016
 
% Change
 
 
 
Property Revenues (2)
$
35,167

 
$
34,764

 
1.2
 %
 
 
 
Property Operating Expenses (2)
12,724

 
13,091

 
(2.8
)%
 
 
 
Property Net Operating Income
$
22,443

 
$
21,673

 
3.6
 %
 
 
 
 
 
 
 
 
 
 
 
 
Cash Basis Property Revenues (3)
$
33,409

 
$
32,943

 
1.4
 %
 
 
 
Cash Basis Property Operating Expenses (4)
12,735

 
13,103

 
(2.8
)%
 
 
 
Cash Basis Property Net Operating Income
$
20,674

 
$
19,840

 
4.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
End of Period Leased
92.6
%
 
91.6
%
 
 
 
 
 
Weighted Average Occupancy
87.7
%
 
90.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
 
2017
 
2016
 
% Change
 
 
 
Property Revenues (2)
$
142,087

 
$
135,371

 
5.0
 %
 
 
 
Property Operating Expenses (2)
52,174

 
49,284

 
5.9
 %
 
 
 
Property Net Operating Income
$
89,913

 
$
86,087

 
4.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Cash Basis Property Revenues (3)
$
134,860

 
$
127,815

 
5.5
 %
 
 
 
Cash Basis Property Operating Expenses (4)
52,220

 
49,331

 
5.9
 %
 
 
 
Cash Basis Property Net Operating Income
$
82,640

 
$
78,484

 
5.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Same Properties include those office properties that were operational and stabilized on January 1, 2016, excluding properties subsequently sold. See Non-GAAP Financial Measures - Calculation and Reconciliations. Properties included in this reporting period are as follows:
 
Northpark
Emory University Hospital Midtown Medical Office Tower
Meridian Mark Plaza
 
Promenade
Terminus 100
Terminus 200
 
816 Congress
Fifth Third Center
 
 
 
 
 
(2)
Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures. Net operating income for unconsolidated joint ventures is calculated as property revenues less 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 Same Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Property Revenues, excluding straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)
Cash Basis Same Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.



Cousins Properties Incorporated
17
Q4 2017 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

 
LEGACY PARKWAY PROPERTIES
 
 
Net Operating Income ($ in thousands)
 
 
Three Months Ended December 31,
 
 
2017
 
2016
 
% Change
 
Cash Basis Property Revenues (2)
$
58,631

 
$
56,022

 
4.7
%
 
Cash Basis Property Operating Expenses (3)
22,440

 
21,790

 
3.0
%
 
Cash Basis Property Net Operating Income
$
36,191

 
$
34,232

 
5.7
%
 
 
 
 
 
 
 
 
End of Period Leased
94.3
%
 
93.3
%
 
 
 
Weighted Average Occupancy
93.0
%
 
91.4
%
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
% Change
 
Cash Basis Property Revenues (2)
$
228,469

 
$
207,904

 
9.9
%
 
Cash Basis Property Operating Expenses (3)
87,756

 
79,742

 
10.0
%
 
Cash Basis Property Net Operating Income
$
140,713

 
$
128,162

 
9.8
%
 
(1)
Same Properties include those office properties that were operational and stabilized on January 1, 2016, excluding properties subsequently sold. Properties included in this reporting period are as follows:
 
3344 Peachtree
Harborview Plaza
Corporate Center
 
3348 Peachtree
Hayden Ferry
San Jacinto Center
 
3350 Peachtree
Hearst Tower
Tempe Gateway
 
One Eleven Congress
NASCAR Plaza
The Pointe
 
One Buckhead Plaza
Two Buckhead Plaza

 
 
 
 
(2)
Cash Basis Same Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Property Revenues, excluding straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(3)
Cash Basis Same Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.


Cousins Properties Incorporated
18
Q4 2017 Supplemental Information

OFFICE LEASING ACTIVITY(1)


 
Three Months Ended December 31, 2017
 
Year Ended December 31, 2017
 
New
 
Renewal
 
Expansion
 
Total
 
New
 
Renewal
 
Expansion
 
Total
Gross leased (square feet)
 
 
 
 
 
 
1,000,195
 
 
 
 
 
 
 
2,452,812
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements
 
 
 
 
 
 
(57,173)
 
 
 
 
 
 
 
(263,133)
Net leased (square feet)
422,479

 
420,365

 
100,178

 
943,022
 
1,088,475
 
836,396
 
264,808
 
2,189,679
Number of transactions
11

 
11

 
7

 
29
 
58
 
61
 
22
 
141
Lease term (years) (2)
11.4

 
3.5

 
8.0

 
7.5
 
10.2
 
4.5
 
7.0
 
7.6
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net rent (per square foot) (3)
$
39.64

 
$
26.19

 
$
31.04

 
$
32.73

 
$
31.68

 
$
26.42

 
$
29.50

 
$
29.41

Free rent (per square foot)
(0.34
)
 
(0.18
)
 
(1.46
)
 
(0.39
)
 
(0.83
)
 
(0.51
)
 
(1.18
)
 
(0.75
)
Tenant Improvements and Commissions (per square foot)
(8.28
)
 
(3.85
)
 
(6.22
)
 
(6.09
)
 
(7.49
)
 
(4.03
)
 
(6.31
)
 
(6.02
)
Net effective rent (per square foot)
$
31.02

 
$
22.16

 
$
23.36

 
$
26.25

 
$
23.36

 
$
21.88

 
$
22.01

 
$
22.64

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second generation leased square feet (4)
 
 
 
 
 
 
545,089

 
 
 
 
 
 
 
1,319,149

Increase in second generation net rent (2)(3)(4)
 
 
 
19.7
%
 
 
 
 
 
 
 
19.6
%
Increase in cash basis second generation net rent (2)(4)(5)
 
6.3
%
 
 
 
 
 
 
 
6.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Excludes apartment and retail leasing at mixed-use projects.
(2) Weighted average.
(3) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term.
(4) 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.
(5) Represents increase in net rent at the end of term paid by the prior tenant compared to net rent at beginning of term paid by the current tenant. For early renewals, represents increase in net rent at the end of the term of the original lease compared to net rent at the beginning of the extended term of the lease.



Cousins Properties Incorporated
19
Q4 2017 Supplemental Information

OFFICE LEASE EXPIRATIONS

Lease Expirations by Year (1)
 Year of Expiration

Square Feet
Expiring

 % of Leased Space

 Annual Contractual Rents ($000's) (2)

 % of Total Annual Contractual Rents

 Annual Contractual Rent/Sq. Ft. (2)
 
 
 
 
 
 
 
 
 
 
 
2018
 
777,011

 
6.5
%
 
21,006

 
5.4
%
 
27.03

2019
 
892,339

 
7.4
%
 
26,841

 
7.0
%
 
30.08

2020
 
871,998

 
7.3
%
 
28,110

 
7.3
%
 
32.24

2021
 
1,315,069

 
10.9
%
 
40,888

 
10.6
%
 
31.09

2022
 
1,472,160

 
12.2
%
 
44,626

 
11.6
%
 
30.31

2023
 
1,076,065

 
8.9
%
 
36,944

 
9.6
%
 
34.33

2024
 
945,557

 
7.9
%
 
34,525

 
8.9
%
 
36.51

2025
 
1,352,057

 
11.2
%
 
44,389

 
11.5
%
 
32.83

2026 & Thereafter
 
3,335,996

 
27.7
%
 
108,721

 
28.1
%
 
32.59

 
 
 
 
 
 
 
 
 
 
 
Total
 
12,038,252

 
100.0
%
 
$
386,050

 
100.0
%
 
$
32.07


Lease Expirations Greater than 100,000 Square Feet Through Year End 2020
Expiration Date
 
 Tenant
 
 Market
 
 Building
 
Square Feet Expiring
January 2019
 
National Union Fire Insurance Company (dba AIG)
 
Atlanta
 
Northpark
 
105,362


(1) Company's share.
(2) Annual Contractual Rent shown is the rate in the year of expiration. It includes the minimum contractual rent paid by the tenant which may or may not include a base year of operating expenses depending upon the terms of the lease.





Cousins Properties Incorporated
20
Q4 2017 Supplemental Information

OFFICE LEASE EXPIRATIONS

chart-de700903668d5a079bf.jpg



(1) Company's share




Cousins Properties Incorporated
21
Q4 2017 Supplemental Information

TOP 20 OFFICE TENANTS

 
Tenant (1)
 
Number of Properties Occupied
 
Number of Markets Occupied
 
 Company's Share of Square Footage
 
 Company's Share of Annualized Base Rent (2)
 
Percentage of Total Company's Share of Annualized Base Rent
 
 Weighted Average Remaining Lease Term (Years)
1

Bank of America, N.A.
 
4
 
2
 
1,103,765

 
$
18,825,511

 
5.7%
 
7
2

Wells Fargo Bank, N.A.
 
5
 
4
 
236,033

 
7,064,444

 
2.1%
 
5
3

Blue Cross Blue Shield
 
1
 
1
 
227,592

 
6,136,052

 
1.9%
 
3
4

McGuirewoods LLP
 
3
 
3
 
198,648

 
5,921,920

 
1.8%
 
9
5

ADP, LLC
 
1
 
1
 
225,000

 
5,400,000

 
1.6%
 
10
6

Smith, Gambrell & Russell, LLP
 
1
 
1
 
159,136

 
5,059,025

 
1.5%
 
3
7

Regus Equity Business Centers, LLC
 
7
 
4
 
169,994

 
5,019,436

 
1.5%
 
4
8

OSI Restaurant Partners, LLC (dba Outback Steakhouse)
 
1
 
1
 
167,723

 
4,886,131

 
1.5%
 
7
9

NASCAR Media Group, LLC
 
1
 
1
 
139,461

 
4,796,073

 
1.5%
 
3
10

Hearst Communications, Inc.
 
1
 
1
 
137,724

 
4,269,444

 
1.3%
 
12
11

Amazon
 
3
 
2
 
120,153

 
4,209,909

 
1.3%
 
6
12

Parsley Energy, L.P.
 
1
 
1
 
135,107

 
4,116,710

 
1.2%
 
7
13

Board of Regents of the University System of Georgia (dba Georgia State University)
 
1
 
1
 
135,124

 
3,991,563

 
1.2%
 
6
14

K & L Gates LLP
 
1
 
1
 
110,914

 
3,838,935

 
1.2%
 
10
15

Fifth Third Bank
 
2
 
2
 
120,436

 
3,458,125

 
1.0%
 
4
16

Carlton Fields Jorden Burt, PA
 
1
 
1
 
83,798

 
3,351,082

 
1.0%
 
14
17

Westrock Shared Services, LLC
 
1
 
1
 
107,578

 
3,300,936

 
1.0%
 
6
18

SVB Financial Group (dba Silicon Valley Bank)
 
1
 
1
 
100,532

 
3,043,323

 
0.9%
 
6
19

National Union Fire Insurance Company (dba AIG)
 
1
 
1
 
105,362

 
3,037,233

 
0.9%
 
1
20

US Bank National Association
 
2
 
2
 
89,363

 
2,776,764

 
0.8%
 
8
 
Grand Total
 
 
 
 
 
3,873,443

 
$
102,502,616

 
30.9%
 
7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (1)

In some cases, the actual tenant may be an affiliate of the entity shown.
 (2)

Annualized Base Rent represents the annualized minimum rent paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Base Rent represents the annualized minimum contractual rent the tenant will pay in the first month it is required to pay rent which may or may not include a base year of operating expenses depending upon the terms of the lease.
Note:

This schedule includes tenants whose leases have commenced and/or who have taken occupancy. Leases that have been signed but have not commenced are excluded.




Cousins Properties Incorporated
22
Q4 2017 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION

chart-2cb96a389c3b5ae7976.jpg


(1) Represents Company's share of total revenues excluding properties sold prior to December 31, 2017.

Cousins Properties Incorporated
23
Q4 2017 Supplemental Information

INVESTMENT ACTIVITY


Completed Property Acquisitions
Property
 
Type
 
Metropolitan Area
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Gross Purchase Price ($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
111 West Rio (1)
 
Office
 
Phoenix
 
100.0%
 
1Q
 
225,000

 
$
19,600

 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
Parkway Properties
 
Office
 
Various
 
Various
 
4Q
 
8,819,000

 
(2
)
Cousins Fund II, L.P. (3)
 
Office
 
Various
 
100.0%
 
4Q
 
(3
)
 
279,100

 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Fifth Third Center
 
Office
 
Charlotte
 
100.0%
 
3Q
 
698,000

 
215,000

Northpark
 
Office
 
Atlanta
 
100.0%
 
4Q
 
1,528,000

 
348,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
Post Oak Central
 
Office
 
Houston
 
100.0%
 
1Q
 
1,280,000

 
230,900

Terminus 200
 
Office
 
Atlanta
 
50.0%
 
1Q
 
566,000

 
164,000

816 Congress
 
Office
 
Austin
 
100.0%
 
2Q
 
435,000

 
102,400

Greenway Plaza
 
Office
 
Houston
 
100.0%
 
3Q
 
4,348,000

 
950,000

777 Main
 
Office
 
Fort Worth
 
100.0%
 
3Q
 
980,000

 
160,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
2100 Ross
 
Office
 
Dallas
 
100.0%
 
3Q
 
844,000

 
59,200

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19,723,000

 
$
2,528,200


Completed Property Developments
Project
 
Type
 
Metropolitan Area
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Total Project Cost
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
8000 Avalon
 
Office
 
Atlanta
 
90.0%
 
2Q
 
224,000

 
73,000

Carolina Square
 
Mixed
 
Chapel Hill
 
50.0%
 
3Q
 
468,000

(4)
$
123,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
Colorado Tower
 
Office
 
Austin
 
100.0%
 
1Q
 
373,000

 
126,100

Emory Point - Phase II
 
Mixed
 
Atlanta
 
75.0%
 
3Q
 
302,000

 
75,400

Research Park V
 
Office
 
Austin
 
100.0%
 
4Q
 
173,000

 
45,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
Emory Point - Phase I
 
Mixed
 
Atlanta
 
75.0%
 
4Q
 
484,000

 
102,300

 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
Mahan Village
 
Retail
 
Tallahassee
 
50.5%
 
4Q
 
147,000

 
25,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2,171,000

 
$
570,600

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) The Company acquired a 74.6% interest in 111 West Rio as part of the Parkway merger and, in the first quarter of 2017, purchased the remaining 25.4% interest from American Airlines.
(2) This transaction was part of the Parkway Merger. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the years ended
December 31, 2016 and December 31, 2017, respectively, and reports filed with the SEC by the Company, Parkway, and New Parkway.
(3) Purchased the outside interest (approximately 70%) in a consolidated partnership for $279.1 million; this included cash from the sale of Two Liberty Place in Philadelphia as well as the
Hayden Ferry buildings in Tempe and 3344 Peachtree in Atlanta.
(4) Carolina Square is comprised of 202,000 square feet of office and retail space and 246 apartments.

Cousins Properties Incorporated
24
Q4 2017 Supplemental Information

INVESTMENT ACTIVITY


Completed Property Dispositions
Property
 
Type
 
Metropolitan Area
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Gross Sales Price ($ in thousands)
2017
 
 
 
 
 
 
 
 
 
 
 
 
Emory Point I and II
 
Mixed
 
Atlanta
 
75.0%
 
2Q
 
786,000

 
$
199,000

American Cancer Society Center
 
Office
 
Atlanta
 
100.0%
 
2Q
 
996,000

 
166,000

Bank of America Center, One Orlando  ---Centre, and Citrus Center
 
Office
 
Orlando
 
100.0%
 
4Q
 
1,038,000

 
208,100

Courvoisier Centre (1)
 
Office
 
Miami
 
20.0%
 
4Q
 
343,000

 
33,900

 
 
 
 
 
 
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
100 North Point Center East
 
Office
 
Atlanta
 
100.0%
 
1Q
 
129,000

 
22,000

Post Oak Central and Greenway Plaza (2)
 
Office
 
Houston
 
100.0%
 
4Q
 
5,628,000

 

Two Liberty Place
 
Office
 
Philadelphia
 
100.0%
 
4Q
 
941,000

 
219,000

191 Peachtree
 
Office
 
Atlanta
 
100.0%
 
4Q
 
1,225,000

 
267,500

Lincoln Place
 
Office
 
Miami
 
100.0%
 
4Q
 
140,000

 
80,000

The Forum
 
Office
 
Atlanta
 
 
 
4Q
 
220,000

 
70,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
2100 Ross
 
Office
 
Dallas
 
100.0%
 
3Q
 
844,000

 
131,000

200, 333, and 555 North Point Center East
 
Office
 
Atlanta
 
100.0%
 
4Q
 
411,000

 
70,300

The Points at Waterview
 
Office
 
Dallas
 
100.0%
 
4Q
 
203,000

 
26,800

 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Lakeshore and University Park Place
 
Office
 
Birmingham
 
100.0%
 
3Q
 
320,000

 
44,700

Mahan Village
 
Retail
 
Florida
 
50.5%
 
4Q
 
147,000

 
29,500

Cousins Watkins LLC
 
Retail
 
Other
 
50.5%
 
4Q
 
339,000

 
50,000

777 Main
 
Office
 
Fort Worth
 
100.0%
 
4Q
 
980,000

 
167,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
Terminus 100
 
Office
 
Atlanta
 
100.0%
 
1Q
 
656,000

 
209,200

Tiffany Springs MarketCenter
 
Retail
 
Kansas City
 
88.5%
 
3Q
 
238,000

 
53,500

The Avenue Murfreesboro
 
Retail
 
Nashville
 
50.0%
 
3Q
 
752,000

 
164,000

CPV Two LLC and CPV Five LLC
 
Retail
 
Other
 
10.3%
 
3Q
 
2,113,000

 
522,300

Inhibitex
 
Office
 
Atlanta
 
100.0%
 
4Q
 
51,000

 
8,300

 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
The Avenue Collierville
 
Retail
 
Memphis
 
100.0%
 
2Q
 
511,000

 
55,000

Galleria 75
 
Office
 
Atlanta
 
100.0%
 
2Q
 
111,000

 
9,200

Ten Peachtree Place
 
Office
 
Atlanta
 
50.0%
 
2Q
 
260,000

 
45,300

The Avenue Webb Gin
 
Retail
 
Atlanta
 
100.0%
 
4Q
 
322,000

 
59,600

The Avenue Forsyth
 
Retail
 
Atlanta
 
88.5%
 
4Q
 
524,000

 
119,000

Cosmopolitan Center
 
Office
 
Atlanta
 
100.0%
 
4Q
 
51,000

 
7,000

Palisades West
 
Office
 
Austin
 
50.0%
 
4Q
 
373,000

 
64,800

Presbyterian Medical Plaza
 
Office
 
Charlotte
 
11.5%
 
4Q
 
69,000

 
4,500

 
 
 
 
 
 
 
 
 
 
20,721,000

 
$
3,106,500


(1) The Company sold its partnership interest for $12.6 million in a transaction that valued its interest in the property at $33.9 million, prior to deduction for existing mortgage debt.
(2) This transaction was part of the Parkway Merger. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the years ended
December 31, 2016 and December 31, 2017, respectively, and reports filed with the SEC by the Company, Parkway, and New Parkway.

Cousins Properties Incorporated
25
Q4 2017 Supplemental Information

DEVELOPMENT PIPELINE (1)



Project

Type

Metropolitan Area

Company's Ownership Interest

Actual or Projected Construction Start Date

Number of Square Feet /Apartment Units

Estimated Project Cost (1) ($ in thousands)
 
Company's Share of Estimated Project Costs

Project Cost Incurred to Date ($ in thousands)
 
Company's Share of Project Costs Incurred to Date

Percent Leased

Initial Occupancy (2)

Estimated Stabilization (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
864 Spring Street
(NCR Phase I)
 
Office
 
Atlanta, GA
 
100
%
 
3Q15
 
503,000

 
219,000

 
219,000

 
212,628

 
212,628

 
100
%
 
1Q18 (5)
 
1Q18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
858 Spring Street
(NCR Phase II)
 
Office
 
Atlanta, GA
 
100
%
 
4Q16
 
260,000

 
120,000

 
120,000

 
68,354

 
68,354

 
100
%
 
4Q18
 
4Q18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dimensional Place
 
Office
 
Charlotte, NC
 
50
%
 
4Q16
 
 
 
94,000

 
47,000

 
53,199

 
26,600

 
 
 
 
 
 
Office
 
 
 
 
 
 
 
 
 
266,000

 
 
 
 
 
 
 
 
 
100
%
 
4Q18
 
4Q18
Retail
 
 
 
 
 
 
 
 
 
16,000

 
 
 
 
 
 
 
 
 
%
 
4Q18
 
4Q18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120 West Trinity
 
Mixed
 
Atlanta, GA
 
20
%
 
1Q17
 
 
 
85,000

 
17,000

 
18,066

 
3,613

 
 
 
 
 
 
Office
 
 
 
 
 
 
 
 
 
33,000

 
 
 
 
 
 
 
 
 
%
 
1Q19
 
1Q20
Retail
 
 
 
 
 
 
 
 
 
19,000

 
 
 
 
 
 
 
 
 
%
 
1Q19
 
1Q20
Apartments
 
 
 
 
 
 
 
 
 
330

 
 
 
 
 
 
 
 
 
%
 
1Q19
 
1Q20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300 Colorado (4)
 
Office
 
Austin, TX
 
50
%
 
4Q18
 
 
 
175,000

 
87,500

 

 

 
 
 
 
 
 
Office
 
 
 
 
 
 
 
 
 
302,000

 
 
 
 
 
 
 
 
 
100
%
 
1Q21
 
1Q21
Retail
 
 
 
 
 
 
 
 
 
7,000

 
 
 
 
 
 
 
 
 
100
%
 
1Q21
 
1Q21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
$
693,000

 
$
490,500

 
$
352,247

 
$
311,195

 
 
 
 
 
 

(1)
This schedule shows projects currently under active development through the substantial completion of construction. Amounts included in the estimated project cost column represent 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. The projected stabilization dates are also estimates and are subject to change as the project proceeds through the development process.
(2)
The quarter within which the Company estimates the first tenant will take occupancy.
(3)
Stabilization is the earlier of the quarter within which the Company estimates it will achieve 90% economic occupancy or one year from initial occupancy.
(4)
The budget is not finalized, and it is subject to change. In January 2018, the joint venture acquired the land for this project, and construction is expected to commence December 2018.
(5)
Initial occupancy took place on January 1, 2018.





Cousins Properties Incorporated
26
Q4 2017 Supplemental Information

LAND INVENTORY


 
 
Metropolitan Area
 
Type
 
Company's Ownership Interest
 
Total Developable Land (Acres)
 
Company's Share (Acres)
 
 
 
 
 
 
 
 
 
 
 
Wildwood Office Park
 
Atlanta
 
Commercial
 
50%
 
22

 
 
North Point
 
Atlanta
 
Commercial
 
100%
 
12

 
 
The Avenue Forsyth-Adjacent Land
 
Atlanta
 
Commercial
 
100%
 
10

 
 
10000 Avalon
 
Atlanta
 
Commercial
 
75%
 
3

 
 
Georgia
 
 
 
 
 
 
 
47

 
 
 
 
 
 
 
 
 
 
 
 
 
Padre Island
 
Corpus Christi
 
Residential
 
50%
 
15

 
 
Victory Center
 
Dallas
 
Commercial
 
75%
 
3

 
 
        Texas
 
 
 
 
 
 
 
18

 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Center
 
Tampa
 
Commercial
 
100%
 
7

 
 
        Florida
 
 
 
 
 
 
 
7

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Land Held (Acres)
 
 
 
 
 
 
 
72

 
52

Total Land Held (Cost Basis)
 
 
 
 
 
 
 
$
47,902

 
$
23,254

 
 
 
 
 
 
 
 
 
 
 






Cousins Properties Incorporated
27
Q4 2017 Supplemental Information

DEBT SCHEDULE

 
 
 
 
 
 
 
Company's Share of Debt Maturities and Principal Payments
 
 
 
 
 
 
Description (Interest Rate Base, if not fixed)
Company's Ownership Interest
 
Rate at End of Quarter
 
Maturity Date
 
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
 
Total Principal
 
Deferred Loan Costs
 
Above/Below Market Value
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term Loan, Unsecured (LIBOR + 1.20%-1.70%) (1)
100%
 
2.76%
 
12/2/21
 
$

 
$

 
$

 
$
250,000

 
$

 
$

 
$
250,000

 
$
(1,541
)
 
$

 
$
248,459

Credit Facility, Unsecured (LIBOR + 1.10%-1.45%) (2)(5)
100%
 
2.66%
 
5/28/19
 

 

 

 

 

 

 

 

 

 

Total Floating Rate Debt
 
 
 
 
 
 

 

 

 
250,000

 

 


250,000


(1,541
)



248,459

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes, Unsecured
100%
 
3.91%
 
7/6/25
 

 

 

 

 

 
250,000

 
250,000

 
(1,371
)
 

 
248,629

Fifth Third Center
100%
 
3.37%
 
10/1/26
 
3,061

 
3,165

 
3,274

 
3,386

 
3,502

 
130,169

 
146,557

 
(583
)
 

 
145,974

Colorado Tower
100%
 
3.45%
 
9/1/26
 
573

 
2,343

 
2,425

 
2,510

 
2,598

 
109,551

 
120,000

 
(835
)
 

 
119,165

Promenade
100%
 
4.27%
 
10/1/22
 
3,116

 
3,252

 
3,393

 
3,541

 
89,053

 

 
102,355

 
(284
)
 

 
102,071

Senior Notes, Unsecured
100%
 
4.09%
 
7/6/27
 

 

 

 

 

 
100,000

 
100,000

 
(511
)
 

 
99,489

816 Congress
100%
 
3.75%
 
11/1/24
 
1,628

 
1,690

 
1,754

 
1,821

 
1,890

 
74,521

 
83,304

 
(562
)
 

 
82,742

Meridian Mark Plaza
100%
 
6.00%
 
8/1/20
 
514

 
546

 
22,978

 

 

 

 
24,038

 
(68
)
 

 
23,970

The Pointe
100%
 
4.01%
 
2/10/19
 
455

 
22,055

 

 

 

 

 
22,510

 

 
219

 
22,729

Total Fixed Rate Debt
 
 
 
 
 
 
9,347


33,051


33,824


11,258


97,043


664,241


848,764


(4,214
)

219

 
844,769

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Consolidated Debt
 
 
 
 
 
 
$
9,347


$
33,051


$
33,824


$
261,258


$
97,043

 
$
664,241


$
1,098,764


$
(5,755
)

$
219

 
$
1,093,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 

Unconsolidated Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Floating Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square (LIBOR + 1.90%) (3)
50%
 
3.46%
 
5/1/18
 
32,206

 

 

 

 

 

 
32,206

 

 

 
32,206

Total Floating Rate Debt
 
 
 
 
 
 
32,206









 


32,206



 

 
32,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
.
 
 
 
 
 
 
 
 
Fixed Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Terminus 100
50%
 
5.25%
 
1/1/23
 
1,418

 
1,494

 
1,575

 
1,659

 
1,749

 
54,091

 
61,986

 
(64
)
 

 
61,922

 Terminus 200
50%
 
3.79%
 
1/1/23
 
800

 
831

 
863

 
896

 
931

 
35,350

 
39,671

 
(27
)
 

 
39,644

 Emory University Hospital Midtown Medical Office
      Tower
50%
 
3.50%
 
6/1/23
 
786

 
813

 
842

 
872

 
903

 
31,436

 
35,652

 
(129
)
 

 
35,523

Total Fixed Rate Debt
 
 
 
 
 
 
3,004


3,138


3,280


3,427


3,583

 
120,877


137,309


(220
)


 
137,089

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unconsolidated Debt
 
 
 
 
 
 
35,210


3,138


3,280


3,427


3,583

 
120,877


169,515


(220
)


 
169,295

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt
 
 
 
 
 
 
$
44,557


$
36,189


$
37,104


$
264,685


$
100,626

 
$
785,118


$
1,268,279


$
(5,975
)

$
219

 
$
1,262,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Maturities (4)
 
 
 
 
 
 
$
32,206

 
$
22,018

 
$
22,644

 
$
250,000

 
$
86,295

 
$
756,515

 
$
1,169,678


 
 
 
 

% of Maturities
 
 
 
 
 
 
3
%
 
1
%
 
2
%
 
21
%
 
8
%
 
65
%
 
100
%
 
 
 
 
 
 



Cousins Properties Incorporated
28
Q4 2017 Supplemental Information

DEBT SCHEDULE


Floating and Fixed Rate Debt Analysis
 
 
Total Debt ($)
 
Total Debt (%)
 
Weighted Average Interest Rate
 
Weighted Average Maturity (Yrs.)
Floating Rate Debt
 
$
282,206

 
22
%
 
2.84
%
 
3.5

Fixed Rate Debt
 
986,073

 
78
%
 
3.93
%
 
7.1

Total Debt
 
$
1,268,279

 
100
%
 
3.69
%
 
6.3


(1) The spread over LIBOR at December 31, 2017 was 1.20%.
(2) Total borrowing capacity of the Credit Facility as of December 31, 2017 was $500 million. The spread over LIBOR at December 31, 2017 was 1.10%.
(3) The Company's share of the total borrowing capacity of the facility is $39.9 million.
(4) Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.
(5) Subsequent to year end, the Company entered into a Fourth Amended and Restated Credit Agreement under which the Company may borrow up to $1 billion if certain conditions are satisfied. The new Credit Facility matures in January 2023.

Cousins Properties Incorporated
29
Q4 2017 Supplemental Information

DEBT SCHEDULE

chart-c5380b4c880751d3851.jpg
                

Cousins Properties Incorporated
30
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Income from Discontinued Operations
 
 
 
 
 
 
 
 
 
 
 
Rental Property Revenues
$
176,828

$
43,123

$
44,281

$
46,046

$
3,477

$
136,927

$

$

$

$

$

Rental Property Operating Expenses
(73,630
)
(17,805
)
(19,155
)
(19,638
)
(1,738
)
(58,336
)





Net Operating Income
103,198

25,318

25,126

26,408

1,739

78,591






 
 
 
 
 
 
 
 
 
 
 
 
Termination Fees
450

186

102



288






Interest and Other Expense
(8,009
)
(1,975
)
(1,965
)
(1,956
)
(126
)
(6,022
)





Transaction Costs



(494
)
(5,855
)
(6,349
)





FFO from Discontinued Operations
95,639

23,529

23,263

23,958

(4,242
)
66,508






 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Real Estate
(63,791
)
(15,428
)
(15,740
)
(15,221
)
(956
)
(47,345
)





Income (Loss) from Discontinued Operations
31,848

8,101

7,523

8,737

(5,198
)
19,163






 
 
 
 
 
 
 
 
 
 
 
 
FFO and EBITDA
 
 
 
 
 
 
 
 
 
 
 
Net income available to common stockholders
125,518

79,109

7,765

11,657

36,892

79,109

4,751

168,089

12,067

31,368

216,275

Depreciation and amortization of real estate assets:
 
 
 
 
 
 
 
 
 
 
 
Consolidated properties
70,003

16,164

16,306

16,293

47,819

96,583

54,433

49,575

47,161

43,700

194,869

Share of unconsolidated joint ventures
11,645

3,259

3,231

3,268

4,146

13,904

4,195

3,478

2,862

2,656

13,191

Discontinued properties
63,791

15,428

15,740

15,221

956

47,345






Partners' share of real estate depreciation




(3,564
)
(3,564
)


(4
)
(19
)
(23
)
(Gain) loss on sale of depreciated properties:
 
 
 
 
 
 
 
 
 
 


Consolidated properties
(78,759
)
(14,190
)
246


(59,589
)
(73,533
)
18

(119,767
)
36

(13,330
)
(133,043
)
Share of unconsolidated joint ventures






3,539

(37,871
)

(718
)
(35,050
)
Discontinued properties
551











Non-controlling interest related to unit holders




784

784

101

2,856

212

512

3,681

FFO
192,749

43,457

43,288

46,439

27,444

160,628

67,037

66,360

62,334

64,169

259,900

Interest Expense
38,178

9,421

9,359

9,748

12,566

41,094

12,066

10,444

9,363

9,509

41,382

Non-Real Estate Depreciation and Amortization
1,669

377

335

328

325

1,365

451

465

461

497

1,874

Acquisition and Merger Costs
299

19

2,424

1,940

26,488

30,871

1,930

246

(677
)
162

1,661

(Gain)/Loss on Extinguishment of Debt




5,180

5,180


(1,829
)
(429
)

(2,258
)
Impairment Loss




4,526

4,526






EBITDA (1)
232,895

53,274

55,406

58,455

76,529

243,664

81,484

75,686

71,052

74,337

302,559

 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Unconsolidated Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
 
Office Properties
18,501

5,050

5,213

5,013

6,123

21,400

6,909

6,750

6,890

6,638

27,187

Other Properties
5,834

1,596

1,741

1,747

2,302

7,386

2,267

859

44

696

3,866

Net Operating Income
24,335

6,646

6,954

6,760

8,425

28,785

9,176

7,609

6,934

7,334

31,053

Sales Less Cost of Sales
2,280




190

190






Termination Fees
419




3,000

3,000

959

195

132

8

1,294

Interest Expense
(7,455
)
(2,007
)
(2,026
)
(2,038
)
(2,352
)
(8,423
)
(2,325
)
(1,922
)
(1,776
)
(1,836
)
(7,859
)
Other Income/(Expense)
368

454

87

72

303

916

505

45

33

185

768

Funds from Operations - Unconsolidated Joint Ventures
19,947

5,093

5,015

4,794

9,566

24,468

8,315

5,927

5,323

5,691

25,256


Cousins Properties Incorporated
31
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Depreciated Investment Properties, net
$

$

$

$

$

$

$
(3,539
)
$
37,871

$

$
718

$
35,050

Depreciation and Amortization of Real Estate
(11,645
)
(3,259
)
(3,231
)
(3,268
)
(4,147
)
(13,905
)
(4,195
)
(3,478
)
(2,862
)
(2,656
)
(13,191
)
Net Income from Unconsolidated Joint Ventures
8,302

1,834

1,784

1,526

5,419

10,563

581

40,320

2,461

3,753

47,115

 
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization
 
 
 
 
 
 
 
 
 
 
 
Common Stock price at Period End
9.43

10.38

10.40

10.44

8.51

8.51

8.27

8.79

9.34

9.25

9.25

Number of Common Shares/Units Outstanding at Period End
211,513

210,107

210,171

210,170

401,596

401,596

426,823

426,942

426,995

426,995

426,995

Common Stock Capitalization
1,994,568

2,180,911

2,185,778

2,194,175

3,417,582

3,417,582

3,529,826

3,752,820

3,988,133

3,949,704

3,949,704

 
 
 
 
 
 
 
 
 
 
 
 
Debt
721,293

767,811

777,485

888,378

1,380,920

1,380,920

1,240,728

1,019,619

1,095,177

1,093,228

1,093,228

Share of Unconsolidated Debt
225,724

224,430

222,514

223,944

251,350

251,350

257,316

186,013

191,075

169,295

169,295

Debt (1)
947,017

992,241

999,999

1,112,322

1,632,270

1,632,270

1,498,044

1,205,632

1,286,252

1,262,523

1,262,523

 
 
 
 
 
 
 
 
 
 
 
 
Total Market Capitalization
2,941,585

3,173,152

3,185,777

3,306,497

5,049,852

5,049,852

5,027,870

4,958,452

5,274,385

5,212,227

5,212,227

 
 
 
 
 
 
 
 
 
 
 
 
Credit Ratios
 
 
 
 
 
 
 
 
 
 
 
Net Debt (Debt (1) minus Cash)
945,014

986,777

999,053

1,015,081

1,596,583

1,596,583

1,462,289

1,189,212

1,224,085

1,113,594

1,113,594

Total Market Capitalization
2,941,585

3,173,152

3,185,777

3,306,497

5,049,852

5,049,852

5,027,870

4,958,452

5,274,385

5,212,227

5,212,227

Net Debt / Total Market Capitalization
32.1
%
31.1
%
31.4
%
30.7
%
31.6
%
31.6
%
29.1
%
24.0
%
23.2
%
21.4
%
21.4
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets - Consolidated
2,597,803

2,610,408

2,622,995

2,760,732

4,171,607

4,171,607

4,206,289

4,136,046

4,224,200

4,204,619

4,204,619

Accumulated Depreciation - Consolidated
463,008

486,747

519,075

539,719

269,339

269,339

326,039

303,266

352,425

380,908

380,908

Undepreciated Assets - Unconsolidated (1)
486,941

460,516

504,408

507,611

604,236

604,236

578,207

467,992

483,299

455,100

455,100

Less: Investment in Unconsolidated Joint Ventures
(102,577
)
(110,138
)
(114,455
)
(116,933
)
(179,397
)
(179,397
)
(128,589
)
(101,532
)
(109,222
)
(101,414
)
(101,414
)
Total Undepreciated Assets (1)
3,445,175

3,447,533

3,532,023

3,691,129

4,865,785

4,865,785

4,981,946

4,805,772

4,950,702

4,939,213

4,939,213

Net Debt (Debt (1) minus Cash)
945,014

986,777

999,053

1,015,081

1,596,583

1,596,583

1,462,289

1,189,212

1,224,085

1,113,594

1,113,594

Undepreciated Assets (1)
3,445,175

3,447,533

3,532,023

3,691,129

4,865,785

4,865,785

4,981,946

4,805,772

4,950,702

4,939,213

4,939,213

Net Debt / Total Undepreciated Assets (1)
27.4
%
28.6
%
28.3
%
27.5
%
32.8
%
32.8
%
29.4
%
24.7
%
24.7
%
22.5
%
22.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Coverage Ratios (1)
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
38,178

9,421

9,359

9,748

12,566

41,094

12,066

10,444

9,363

9,509

41,382

Scheduled Principal Payments
9,892

2,444

3,143

3,344

2,632

11,563

3,810

3,334

2,846

2,869

12,859

Fixed Charges
48,070

11,865

12,502

13,092

15,198

52,657

15,876

13,778

12,209

12,378

54,241

EBITDA
232,895

53,274

55,406

58,455

76,529

243,664

81,484

75,686

71,052

74,337

302,559

Fixed Charges Coverage Ratio (1)
4.84

4.49

4.43

4.46

5.04

4.63

5.13

5.49

5.82

6.01

5.58

 
 
 
 
 
 
 
 
 
 
 
 
Net Debt (Debt (1) minus Cash)
945,014

986,777

999,053

1,015,081

1,596,583

1,596,583

1,462,289

1,189,212

1,224,085

1,113,594

1,113,594

Annualized EBITDA (2)
236,754

213,096

221,624

233,820

306,116

306,116

325,936

302,744

284,208

297,348

297,348

Net Debt / Annualized EBITDA (2)
3.99

4.63

4.51

4.34

5.22

5.22

4.49

3.93

4.31

3.75

3.75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
32
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Dividend Information
 
 
 
 
 
 
 
 
 
 
 
Common Dividends (3)
$
69,196

$
16,918

$
16,810

$
16,821

$
23,577

$
74,126

$
25,161

$
25,212

$
25,201

$
25,202

$
100,776

FFO
192,749

43,457

43,288

46,439

27,444

160,628

67,037

66,360

62,334

64,169

259,900

         FFO Payout Ratio
35.9
%
38.9
%
38.8
%
36.2
%
85.9
%
46.1
%
37.5
%
38.0
%
40.4
%
39.3
%
38.8
%
 
 
 
 
 
 
 
 
 
 
 
 
FFO
192,749

43,457

43,288

46,439

27,444

160,628

67,037

66,360

62,334

64,169

259,900

Straight Line Rental Revenue
(20,009
)
(3,595
)
(3,434
)
(3,449
)
(8,489
)
(18,967
)
(9,608
)
(7,826
)
(6,825
)
(6,714
)
(30,973
)
Above and Below Market Rents
(7,981
)
(1,834
)
(1,854
)
(1,907
)
(1,502
)
(7,097
)
(1,602
)
(1,929
)
(1,852
)
(1,838
)
(7,221
)
Amortization of Above and Below Market Debt




(2,999
)
(2,999
)
(3,190
)
(646
)
(51
)
(50
)
(3,937
)
Lease Inducements
1,807

441

499

373

209

1,522

133

103

114

135

485

Ground Lease Straight Line Rent
88

(2
)
(2
)
(2
)
110

104

110

110

110

110

440

Above and Below Market Rents Ground Rent
(55
)
(14
)
(14
)
(14
)
39

(3
)
40

40

40

39

159

Acquisition and Merger Costs
299

19

2,424

1,940

26,488

30,871

1,930

246

(677
)
162

1,661

(Gain) loss on Extinguishment of Debt




5,180

5,180


(1,829
)
(429
)

(2,258
)
Impairment Loss




4,526

4,526






Second Generation CAPEX
(54,214
)
(7,904
)
(13,166
)
(13,968
)
(11,838
)
(46,876
)
(10,971
)
(7,569
)
(15,949
)
(18,996
)
(53,485
)
Deferred Income - Tenant Improvements
(48
)
(280
)
(488
)
(564
)
(594
)
(1,926
)
(625
)
(732
)
(761
)
(750
)
(2,868
)
          FAD (1)
112,636

30,288

27,253

28,848

38,574

124,963

43,254

46,328

36,054

36,267

161,903

Common Dividends (3)
69,196

16,918

16,810

16,821

23,577

74,126

25,161

25,212

25,201

25,202

100,776

          FAD Payout Ratio (1)
61.4
%
55.9
%
61.7
%
58.3
%
61.1
%
59.3
%
58.2
%
54.4
%
69.9
%
69.5
%
62.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operations Ratios
 
 
 
 
 
 
 
 
 
 
 
Total Undepreciated Assets (1)
3,445,175

3,447,533

3,532,023

3,691,129

4,865,785

4,865,785

4,981,946

4,805,772

4,950,702

4,939,213

4,939,213

General and Administrative Expenses
16,918

8,242

4,691

4,368

8,290

25,591

6,182

8,618

7,193

5,530

27,523

Annualized General and Administrative Expenses (4) / Total Undepreciated Assets
0.49
%
0.96
%
0.53
%
0.47
%
0.68
%
0.53
%
0.50
%
0.72
%
0.58
%
0.45
%
0.56
%
 
 
 
 
 
 
 
 
 
 
 
 
2nd Generation TI & Leasing Costs & Building CAPEX
 
 
 
 
 
 
 
 
 
 
 
Second Generation Leasing Related Costs
46,821

4,867

10,356

7,992

10,021

33,236

10,710

7,258

15,480

17,168

50,616

Second Generation Building Improvements
7,393

3,037

2,810

5,976

1,817

13,640

261

311

469

1,828

2,869

 
54,214

7,904

13,166

13,968

11,838

46,876

10,971

7,569

15,949

18,996

53,485

 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes Company 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) Annualized equals quarter amount annualized.
(3) The fourth quarter 2016 dividend was declared and paid a quarter in arrears.
(4) Quarter amount represents quarter annualized; year-to-date represents year-to-date actual annualized.
 
Note: Amounts may differ slightly from other schedules contained herein due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
33
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS


FUNDS FROM OPERATIONS
(unaudited; in thousands, except per share amounts)

 
Three Months Ended December 31,
 
Year Ended December 31,
 
2017
 
2016
 
2017
 
2016
Net Income Available to Common Stockholders
$
31,368

 
$
36,892

 
$
216,275

 
$
79,109

Depreciation and amortization of real estate assets:
 
 
 
 
 
 
 
Consolidated properties
43,700

 
47,819

 
194,869

 
96,583

Discontinued properties

 
956

 

 
47,345

Share of unconsolidated joint ventures
2,656

 
4,146

 
13,191

 
13,904

      Partners' share of real estate depreciation
(19
)
 
(3,564
)
 
(23
)
 
(3,564
)
(Gain) loss on sale of depreciated properties:
 
 
 
 
 
 
 
Consolidated properties
(13,330
)
 
(59,589
)
 
(133,043
)
 
(73,533
)
Share of unconsolidated joint ventures
(718
)
 

 
(35,050
)
 

     Non-controlling interest related to unit holders
512

 
784

 
3,681

 
784

Funds From Operations
$
64,169

 
$
27,444

 
$
259,900

 
$
160,628

Per Common Share — Diluted:
 
 
 
 
 
 
 
Net Income Available Available to Common
Shareholders
$
0.07

 
$
0.10

 
$
0.52

 
$
0.31

Funds from Operations
$
0.15

 
$
0.07

 
$
0.61

 
$
0.63

Weighted Average Shares — Diluted
427,288

 
391,413

 
423,297

 
256,023


The table above shows Funds From Operations Available to Common Stockholders (“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 National Association of Real Estate Investment Trusts' ("NAREIT") definition, which is net income (loss) 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 losses 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 along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.








Cousins Properties Incorporated
34
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS


 
Three Months Ended
 
Year Ended
 
Cousins Net Operating Income (in thousands)
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Net income
$
31,871

 
$
37,887

 
$
219,959

 
$
80,104

 
Net operating income from unconsolidated joint ventures
7,334

 
8,426

 
31,053

 
28,785

 
Net operating income from discontinued operations

 
1,739

 

 
78,591

 
Fee income
(2,245
)
 
(2,379
)
 
(8,632
)
 
(8,347
)
 
Other income
(1,925
)
 
(481
)
 
(11,518
)
 
(1,050
)
 
Reimbursed expenses
860

 
796

 
3,527

 
3,259

 
General and administrative expenses
5,530

 
8,290

 
27,523

 
25,592

 
Interest expense
7,673

 
10,089

 
33,524

 
26,650

 
Depreciation and amortization
44,199

 
48,145

 
196,745

 
97,948

 
Acquisition and transaction costs
162

 
20,633

 
1,661

 
24,521

 
Other expenses
733

 
5,205

 
1,796

 
5,888

 
(Gain) loss on extinguishment of debt

 
5,180

 
(2,258
)
 
5,180

 
Income from unconsolidated joint ventures
(3,753
)
 
(5,418
)
 
(47,115
)
 
(10,562
)
 
(Gain) loss on sale of investment properties
(13,330
)
 
(63,169
)
 
(133,059
)
 
(77,114
)
 
Income from discontinued operations

 
5,198

 

 
(19,163
)
 
Net Operating Income
$
77,109

 
$
80,141

 
$
313,206

 
$
260,282

 
 
 
 
 
 
 
 
 
 
Straight line rent
6,714

 
8,489

 
30,973

 
18,968

 
Non-cash income
2,454

 
1,887

 
9,602

 
7,500

 
Non-cash expense
(149
)
 
(148
)
 
(597
)
 
(102
)
 
Cash Basis Net Operating Income
$
68,090

 
$
69,913

 
$
273,228

 
$
233,916

 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
Same Property
$
22,443

 
$
21,673

 
$
89,913

 
$
86,087

 
Non-Same Property
54,666

 
58,468

 
223,293

 
174,195

 
 
$
77,109

 
$
80,141

 
$
313,206

 
$
260,282

 
 
 
 
 
 
 
 
 
 
Cash Basis Net Operating Income
 
 
 
 
 
 
 
 
Same Property
$
20,674

 
$
19,840

 
$
82,640

 
$
78,484

 
Non-Same Property
47,416

 
50,073

 
190,588

 
155,432

 
 
$
68,090

 
$
69,913

 
$
273,228

 
$
233,916

 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
35
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
Three Months Ended
 
Year Ended
 
Legacy Parkway Net Operating Income (in thousands)
December 31, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Net income
$
31,871

 
$
37,887

 
$
219,959

 
$
80,104

 
Net operating income from unconsolidated joint ventures
7,334

 
8,426

 
31,053

 
28,785

 
Net operating income from discontinued operations

 
1,739

 

 
78,591

 
Fee income
(2,245
)
 
(2,379
)
 
(8,632
)
 
(8,347
)
 
Other income
(1,925
)
 
(481
)
 
(11,518
)
 
(1,050
)
 
Reimbursed expenses
859

 
796

 
3,527

 
3,259

 
General and administrative expenses
5,530

 
8,290

 
27,523

 
25,592

 
Interest expense
7,673

 
10,089

 
33,524

 
26,650

 
Depreciation and amortization
44,199

 
48,145

 
196,745

 
97,948

 
Acquisition and transaction costs
162

 
20,633

 
1,661

 
24,521

 
Other expenses
733

 
5,205

 
1,796

 
5,888

 
(Gain) loss on extinguishment of debt

 
5,180

 
(2,258
)
 
5,180

 
Income from unconsolidated joint ventures
(3,753
)
 
(5,418
)
 
(47,115
)
 
(10,562
)
 
(Gain) loss on sale of investment properties
(13,330
)
 
(63,169
)
 
(133,059
)
 
(77,114
)
 
Income from discontinued operations

 
5,198

 

 
(19,163
)
 
Net Operating Income for non-Legacy Parkway Same Properties
(36,174
)
 
(41,820
)
 
(152,059
)
 
(221,961
)
 
Net Operating Income for Legacy Parkway Same Properties included in Cousins' consolidated results
40,934

 
38,321

 
161,147

 
38,321

 
Net Operating Income for Legacy Parkway Same Properties not included in Cousins' consolidated results (1)

 
2,091

 

 
108,795

 
Legacy Parkway Same Property Net Operating Income
40,934

 
40,412

 
161,147

 
147,116

 
 
 
 
 
 
 
 
 
 
Legacy Parkway Same Property Net Operating Income
40,934

 
40,412

 
161,147

 
147,116

 
Straight line rent
(3,320
)
 
(5,161
)
 
(16,040
)
 
(16,558
)
 
Non-cash income
(1,586
)
 
(1,189
)
 
(5,044
)
 
(2,963
)
 
Non-cash expense
163

 
170

 
650

 
567

 
Legacy Parkway Same Property Cash Basis Net Operating Income
$
36,191

 
$
34,232

 
$
140,713

 
$
128,162

 
 


 

 


 

 
(1) Cousins merged with Parkway Properties, Inc. on October 6, 2016. Therefore, the operations of the Parkway properties acquired in the merger are included in the consolidated operations of Cousins from October 6, 2016 forward. The operations of the Parkway properties from periods prior to October 6, 2016 must be added to the operations including and subsequent to October 6, 2016 to present a full comparable period for purposes of reporting Legacy Parkway Same Property information.
 
 
 
 
 
 
 
 
 
 


Cousins Properties Incorporated
36
Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - DISCUSSION


The Company uses non-GAAP financial measures in its filings and other public disclosures. The following is a list of non-GAAP financial measures that the Company commonly uses and a description for each measure of (1) the reasons that management believes the measure is useful to investors and (2) if material, any additional uses of the measure by management of the Company.
“2nd 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 as well as building improvements on newly acquired buildings that management identifies as necessary to bring the building to the Company's operational standards. In addition, the Company excludes leasing costs and building improvements associated with properties identified as under redevelopment or repositioning.
“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.
“EBITDA” represents FFO plus consolidated and Company share of unconsolidated interest expense, non-real estate depreciation and amortization, income taxes, impairment losses, predevelopment charges, loss on debt extinguishment, gain on sale of third party business, participation interest income, acquisition and merger costs, and preferred stock dividends and original issuance costs. Management believes that EBITDA provides analysts and investors with 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 straight-line rent and above and below market lease amortization less 2nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures. 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.
“FAD Before Certain Charges” represents FAD before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and merger costs, interest income and separation charges. Management believes that FAD Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations and dividend policy with other real estate companies.
“Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the National Association of Real Estate Investment
 
Trusts' (“NAREIT”) definition, which is net income (loss) 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 real property, plus depreciation and amortization of real estate assets, impairment losses 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.
FFO Before Certain Charges” represents FFO before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and merger costs, gain on sale of third party business, participation interest income and separation charges. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations with other real estate companies.
“Net Operating Income” ("NOI") is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Net Operating Income, which is rental property revenues 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 and amortization are also excluded from Net Operating Income 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 have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy or has been substantially complete and owned by the Company for each of the two periods presented. 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.

Cousins Properties Incorporated
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Q4 2017 Supplemental Information