EX-99.1 2 a8-kearningsreleaseex9.htm EXHIBIT 99.1 Exhibit
q42019supplementcover.jpg

1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations
Funds From Operations - Detail
Portfolio Statistics
Office Leasing Activity
Office Lease Expirations
Top 20 Office Tenants
Tenant Industry Diversification
Investment Activity
Land Inventory
Debt Schedule
Joint Venture Information
Non-GAAP Financial Measures - Calculations and Reconciliations
Non-GAAP Financial Measures - Discussion
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Cousins Properties
 
Q4 2019 Supplemental Information

FORWARD-LOOKING STATEMENTS


Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2019. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as the following: 2020 guidance and underlying assumptions; business and financial strategy; future debt financings; future acquisitions and dispositions of operating assets or joint venture interests; future acquisitions and dispositions of land, including ground leases; future development and redevelopment opportunities, including fee development opportunities; future issuances and repurchases of common stock; future distributions; projected capital expenditures; market and industry trends; entry into new markets; future changes in interest rates; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.
Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information that is currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following: the availability and terms of capital; the ability to refinance or repay indebtedness as it matures; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions, investments, or dispositions; the potential dilutive effect of common stock or operating partnership unit issuances; the availability of buyers and pricing with respect to the disposition of assets; changes in national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate (including supply and demand changes), particularly in Atlanta, Austin, Charlotte, Phoenix, Tampa, and Dallas where we have high concentrations of our lease revenues; changes to our strategy with regard to land and other non-core holdings that may require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, the failure of a tenant to occupy leased space, and the risk of declining leasing rates; changes in the needs of our tenants brought about by the desire for co-working arrangements, trends toward utilizing less office space per employee, and the effect of telecommuting; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; competition from other developers or investors; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); cyber security breaches; changes in senior management, changes in the Board of Directors, and the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements; potential changes to state, local, or federal regulations applicable to our business; material changes in the rates, or the ability to pay, dividends on common shares or other securities; potential changes to the tax laws impacting REITs and real estate in general; potential changes to the tax laws impacting REITs and real estate in general; the ability to realize anticipated benefits of the merger with TIER REIT, Inc. ("TIER"); and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by the Company.
The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise, except as required under U.S. federal securities laws.

Cousins Properties
3
Q4 2019 Supplemental Information

EARNINGS RELEASE


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

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

Cousins Properties
4
Q4 2019 Supplemental Information

EARNINGS RELEASE


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

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

 
$
1.84

Add: Real estate depreciation and amortization
1.92

 
1.92

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

 
$
2.86

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

Cousins Properties
5
Q4 2019 Supplemental Information

EARNINGS RELEASE


Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 6, 2020, to discuss the results of the quarter and year ended December 31, 2019. The number to call for this interactive teleconference is (877) 247-1056. The live webcast of this call can be accessed on the Company's website, www.cousins.com, through the “Cousins Properties Fourth Quarter Conference Call” link on the Investor Relations page. A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10138069. The playback can also be accessed on the Company's website.
Acting through its operating partnership Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.

Cousins Properties
6
Q4 2019 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

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

 
$
3,603,011

Projects under development
410,097

 
24,217

Land
116,860

 
72,563

 
6,196,281

 
3,699,791

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

 

Cash and cash equivalents
15,603

 
2,547

Restricted cash
2,005

 
148

Notes and accounts receivable
23,680

 
13,821

Deferred rents receivable
102,314

 
83,116

Investment in unconsolidated joint ventures
133,884

 
161,907

Intangible assets, net
257,649

 
145,883

Other assets
59,449

 
39,083

Total assets
$
7,151,447

 
$
4,146,296

Liabilities:
 
 
 
Notes payable
$
2,222,975

 
$
1,062,570

Accounts payable and accrued expenses
209,904

 
110,159

Deferred income
52,269

 
41,266

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

 
56,941

Other liabilities
134,128

 
54,204

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

 

Total liabilities
2,723,612

 
1,325,140

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

 
1,717

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

 
107,681

Additional paid-in capital
5,493,883

 
3,934,385

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

 
2,765,865

Nonredeemable noncontrolling interests
68,561

 
55,291

Total equity
4,427,835

 
2,821,156

Total liabilities and equity
$
7,151,447

 
$
4,146,296


Cousins Properties
7
Q4 2019 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 
$
119,640

 
$
628,751

 
$
463,401

Fee income
5,220

 
2,878

 
28,518

 
10,089

Other
92

 
158

 
246

 
1,722

 
194,439

 
122,676

 
657,515

 
475,212

Expenses:
 
 
 
 
 

 
 

Rental property operating expenses
66,308

 
42,177

 
222,146

 
164,678

Reimbursed expenses
735

 
1,025

 
4,004

 
3,782

General and administrative expenses
11,321

 
3,247

 
37,007

 
22,040

Interest expense
16,384

 
10,387

 
53,963

 
39,430

Depreciation and amortization
78,372

 
45,546

 
257,149

 
181,382

Transaction costs
2,003

 
20

 
52,881

 
248

Other
8

 
99

 
1,109

 
556

 
175,131

 
102,501

 
628,259

 
412,116

Income from unconsolidated joint ventures
2,887

 
2,051

 
12,666

 
12,224

Gain on investment property transactions
96,373

 
525

 
110,761

 
5,437

Gain on extinguishment of debt

 

 

 
8

Net income
118,568

 
22,751

 
152,683

 
80,765

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

 
$
22,360

 
$
150,418

 
$
79,164

 
 
 
 
 
 
 
 
Net income per common share - basic and diluted
$
0.80

 
$
0.21

 
$
1.17

 
$
0.75

Weighted average shares — basic
146,762

 
105,096

 
128,060

 
105,076

Weighted average shares — diluted
148,534

 
106,871

 
129,831

 
106,868

 
 
 
 
 
 
 
 



Cousins Properties
8
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS

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

23

23

23

23

23

24

33

33

34

34

Consolidated Rentable Square Feet (in thousands)
11,428

11,936

11,944

11,944

12,203

12,203

12,573

18,372

18,372

19,599

19,599

Unconsolidated Operating Properties
4

4

4

4

4

4

5

5

5

4

4

Unconsolidated Rentable Square Feet (in thousands)
3,113

3,113

3,113

3,113

3,113

3,113

3,394

3,394

3,394

2,168

2,168

Total Operating Properties
26

27

27

27

27

27

29

38

38

38

38

Total Rentable Square Feet (in thousands)
14,541

15,049

15,057

15,057

15,316

15,316

15,967

21,766

21,766

21,767

21,767

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

330

328

486

455

1,597

682

1,089

741

562

3,074

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

(0.55)

(1.00)

(0.94)

(0.86)

(0.85)

(0.49)

(0.52)

(0.64)

(1.01)

(0.63)

Leasing Commissions
(2.32)

(2.67)

(2.49)

(2.40)

(2.17)

(2.41)

(1.13)

(2.34)

(2.86)

(2.84)

(2.29)

Tenant Improvements
(4.43)

(3.07)

(4.50)

(4.29)

(5.43)

(4.40)

(1.74)

(4.69)

(3.13)

(4.89)

(3.69)

Leasing Costs
(7.50)

(6.29)

(7.99)

(7.63)

(8.46)

(7.66)

(3.36)

(7.55)

(6.63)

(8.74)

(6.61)

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

106,805

106,842

106,840

106,840

106,840

106,890

148,507

148,506

148,506

148,506

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

1,262,833

1,261,459

1,236,891

1,234,016

1,234,016

1,287,164

2,007,663

2,023,136

2,305,494

2,305,494

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

Cousins Properties
9
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS

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

3.77

3.76

3.65

3.68

3.68

3.29

5.21

4.05

4.55

4.55

Fixed Charges Coverage (Adjusted EBITDAre)
5.58

5.39

5.37

5.67

5.39

5.46

6.08

5.57

6.23

5.92

5.95

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

 
(1) See Office Leasing Activity on page 20 for additional detail and explanations.
(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 19 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 36 for additional information.
(3) Cousins' share of estimated project costs. See Development Pipeline on page 26 for additional detail.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 32.
(5) Given the timing of the closing of the TIER transaction, the actual calculation of this ratio was temporarily high for the second quarter of 2019 and decreased when a full quarter of TIER operations were included in EBITDAre. Second quarter EBITDAre, annualized for the calculation, included 17 days of Legacy TIER operations while the total impact of the TIER transaction was included in net debt as of June 30, 2019.
(6) The fourth quarter 2016 dividend was declared and paid in the first quarter of 2017.
(7) In-place gross rent equals the annualized cash basis base rent including tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.




Cousins Properties
10
Q4 2019 Supplemental Information

KEY PERFORMANCE METRICS


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

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

Cousins Properties
11
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

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

$
80,578

$
80,195

$
80,858

$
84,432

$
326,063

$
87,731

$
97,417

$
120,642

$
126,000

$
431,790

Gain on Sales of Undepreciated Investment Properties
67

330

2,449


512

3,291

13,132

1,337

21

3,692

18,182

Fee Income
8,632

2,894

1,798

2,519

2,878

10,089

8,728

7,075

7,495

5,220

28,518

Other Income
15,991

1,034

1,212

915

517

3,678

748

306

3,671

3,136

7,861

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

$
64,624

$
64,585

$
67,490

$
71,200

$
267,899

$
84,513

$
31,869

$
106,209

$
106,202

$
328,793

TIER transaction costs






3

49,827

1,048

1,999

52,877

FFO before TIER transaction costs
$
259,900

$
64,624

$
64,585

$
67,490

$
71,200

$
267,899

$
84,516

$
81,696

$
107,257

$
108,201

$
381,670

Weighted Average Shares - Diluted
105,824

106,845

106,875

106,880

106,871

106,868

106,901

114,670

148,530

148,534

129,831

FFO per Share (1)
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.28

$
0.72

$
0.72

$
2.53

FFO per Share before TIER transaction costs
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.71

$
0.72

$
0.73

$
2.94




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

Cousins Properties
12
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



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

$
4,726

$
4,608

$
4,704

$
7,412

$
21,450

$
7,218

$
7,385

$
7,392

$
7,374

$
29,369

Corporate Center (2)
20,889

5,780

5,956

5,947

6,263

23,946

6,386

6,785

6,619

6,694

26,484

Northpark (2)
20,506

5,731

5,814

6,204

6,669

24,418

6,463

6,039

6,521

6,249

25,272

Hearst Tower
26,186

6,493

6,426

6,456

6,544

25,919

6,492

6,512

5,875

6,099

24,978

Hayden Ferry (2)
21,950

5,766

5,433

5,894

6,372

23,465

5,945

6,154

5,721

6,118

23,938

The Domain (2)







1,881

8,926

9,138

19,945

Promenade
16,755

4,240

4,242

4,125

3,895

16,502

4,788

4,708

4,353

4,510

18,359

Fifth Third Center
19,284

4,729

4,647

4,912

4,842

19,130

4,735

4,503

4,408

4,347

17,993

One Eleven Congress
15,146

4,036

4,039

4,034

4,109

16,218

4,446

4,515

4,203

4,215

17,379

Buckhead Plaza (2)
17,516

4,330

4,382

4,367

3,772

16,851

4,047

3,968

3,765

3,299

15,079

San Jacinto Center
16,069

3,635

3,632

3,596

3,789

14,652

3,665

3,679

3,637

3,612

14,593

Colorado Tower
13,557

3,429

3,453

3,511

3,380

13,773

3,480

3,483

3,502

3,526

13,991

3344 Peachtree
10,909

2,994

3,069

2,970

3,149

12,182

3,142

3,328

3,345

3,488

13,303

816 Congress
10,898

2,780

2,911

3,016

2,949

11,656

3,290

2,879

2,969

2,709

11,847

Bank of America Plaza







933

5,103

4,569

10,605

NASCAR Plaza
10,189

2,652

2,590

2,683

2,409

10,334

2,538

2,494

2,586

2,682

10,300

BriarLake Plaza (2)







852

4,623

4,742

10,217

3350 Peachtree
8,673

1,987

1,899

1,888

1,859

7,633

2,011

2,345

2,329

2,272

8,957

The Terrace (2)







749

3,617

3,945

8,311

Burnett Plaza







710

3,556

3,963

8,229

Tempe Gateway
8,079

1,893

2,029

1,997

2,015

7,934

2,165

1,757

1,785

2,043

7,750

1200 Peachtree






775

2,318

2,332

2,266

7,691

8000 Avalon
433

1,357

1,350

1,144

1,581

5,432

1,714

1,916

1,899

1,879

7,408

Terminus (2) (3)









7,330

7,330

3348 Peachtree
6,146

1,405

1,360

1,472

1,483

5,720

1,527

1,499

1,598

1,543

6,167

111 West Rio
4,044

1,314

1,419

1,374

1,370

5,477

1,381

1,380

1,407

1,391

5,559

Legacy Union One







450

2,360

2,347

5,157

The Pointe
4,568

1,236

1,170

1,179

1,230

4,815

1,255

1,235

1,260

1,339

5,089

Meridian Mark Plaza
4,081

920

1,006

1,049

874

3,849

1,018

1,163

1,104

1,085

4,370

Research Park V
2,976

1,012

1,016

1,023

1,015

4,066

1,031

1,023

1,006

1,027

4,087

Domain Point (2)







348

1,571

1,139

3,058

5950 Sherry Lane







220

1,056

1,040

2,316

Woodcrest (2)







274

746

1,213

2,233

Harborview Plaza
3,970

712

516

319

206

1,753

346

553

431

683

2,013

Subtotal - Consolidated
282,153

73,157

72,967

73,864

77,187

297,175

79,858

88,038

111,605

119,876

399,377

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
13
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



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

3,486

3,415

3,345

3,255

13,501

3,670

3,662

3,216


10,548

Gateway Village (2)
7,047

1,968

1,770

1,873

1,819

7,430

1,837

1,839

1,807

1,964

7,447

Dimensional Place






206

1,770

1,912

1,873

5,761

Carolina Square (2)
705

928

975

747

1,173

3,823

1,097

1,053

1,009

1,208

4,367

Emory University Hospital Midtown
3,913

990

1,031

1,028

975

4,024

1,027

1,036

1,072

1,104

4,239

Other (5)
4,911

49

37

1

23

110

36

19

21

(25
)
51

Subtotal - Unconsolidated
31,053

7,421

7,228

6,994

7,245

28,888

7,873

9,379

9,037

6,124

32,413

 
 
 
 
 
 
 
 
 
 
 
 
Total Net Operating Income (1)
313,206

80,578

80,195

80,858

84,432

326,063

87,731

97,417

120,642

126,000

431,790

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




512

512

13,132

1,337

21

3,692

18,182

Sales Less Cost of Sales - Unconsolidated (4)

330

2,449



2,779






Total Gain on Sales of Undepreciated Investment Properties
67

330

2,449


512

3,291

13,132

1,337

21

3,692

18,182

 
 
 
 
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
 
 
 
 
Development Fees
2,140

291

271

951

1,422

2,935

7,022

5,112

5,670

4,254

22,058

Management Fees (6)
5,794

1,524

1,401

1,537

1,449

5,911

1,379

1,548

1,824

966

5,717

Leasing & Other Fees
698

1,079

126

31

7

1,243

327

415

1


743

Total Fee Income
8,632

2,894

1,798

2,519

2,878

10,089

8,728

7,075

7,495

5,220

28,518

 
 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
 
Termination Fees
9,270

360

639

276

273

1,548

520

190

3,575

2,942

7,227

Termination Fees - Unconsolidated (4)
1,294






3

4

9


16

Interest and Other Income
2,248

600

493

468

161

1,722

140

11

3

92

246

Interest and Other Income - Unconsolidated (4)
921

74

80

78

83

315

85

101

84

102

372

Gain on Extinguishment of Debt
2,258



93


93






Total Other Income
15,991

1,034

1,212

915

517

3,678

748

306

3,671

3,136

7,861

 
 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
24,623

3,928

3,010

3,434

3,395

13,767

9,476

7,381

11,166

8,356

36,379

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







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







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

Cousins Properties
14
Q4 2019 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



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







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









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







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

1,095

1,390

1,536

881

4,902

1,015

1,116

4,218

4,870

11,219

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

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










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

4

3

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

(85
)



(85
)





Income Tax Expense







(242
)
242

298

298

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

4

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






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

(20
)
(248
)



(4
)
(4
)
Total Other Expenses
(3,690
)
(695
)
(365
)
(257
)
(325
)
(1,642
)
(404
)
(50,699
)
(1,658
)
(2,286
)
(55,047
)
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
(1,874
)
(473
)
(468
)
(469
)
(462
)
(1,872
)
(456
)
(454
)
(443
)
(446
)
(1,799
)
 
 
 
 
 
 
 
 
 
 
 
 
FFO (1)
$
259,900

$
64,624

$
64,585

$
67,490

$
71,200

$
267,899

$
84,513

$
31,869

$
106,209

$
106,202

$
328,793

TIER transaction costs






3

49,827

1,048

1,999

52,877

FFO before TIER transaction costs
259,900

64,624

64,585

67,490

71,200

267,899

84,516

81,696

107,257

108,201

381,670

Weighted Average Shares - Diluted
105,824

106,845

106,875

106,880

106,871

106,868

106,901

114,670

148,530

148,534

129,831

FFO per Share (1)
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.28

$
0.72

$
0.72

$
2.53

FFO per Share before TIER transaction costs
$
2.46

$
0.60

$
0.60

$
0.63

$
0.67

$
2.51

$
0.79

$
0.71

$
0.72

$
0.73

$
2.94

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 32.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) On October 1, 2019, the Company purchased its partner's 50% interest in Terminus Office Holdings LLC.
(4) 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) In 2018 and 2019, other unconsolidated NOI related primarily to 300 Colorado and 120 West Trinity. In 2017, other unconsolidated NOI related primarily to Emory Point, which was sold in 2017.
(6) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.
(7) Amounts of interest expense related to consolidated debt that is capitalized to consolidated development projects and equity in unconsolidated development projects.
(8) In 2017 and 2018, transaction costs related primarily to the transactions with Parkway Properties, Inc.

Cousins Properties
15
Q4 2019 Supplemental Information

PORTFOLIO STATISTICS

Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased
 
Weighted Average Occupancy (1)
 
% of Total
Net Operating
Income (2)
 
Property Level Debt ($000) (3)
 
 
 
 
4Q19
 
3Q19
 
4Q19
 
3Q19
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Spring & 8th (4) (5)
 
765,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
5.9%
 
$

Terminus (4) (5)
 
1,226,000

 
Consolidated
 
100%
 
83.3%
 
83.1%
 
78.8%
 
77.1%
 
5.8%
 
203,309

Northpark (4)
 
1,539,000

 
Consolidated
 
100%
 
92.8%
 
93.1%
 
85.7%
 
86.1%
 
5.0%
 

Promenade
 
777,000

 
Consolidated
 
100%
 
90.5%
 
90.5%
 
89.6%
 
89.5%
 
3.6%
 
95,824

3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
94.2%
 
94.1%
 
89.3%
 
94.1%
 
2.8%
 

Buckhead Plaza (4)
 
671,000

 
Consolidated
 
100%
 
75.6%
 
76.9%
 
73.9%
 
77.9%
 
2.6%
 

1200 Peachtree (5)
 
370,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.8%
 

3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
95.2%
 
95.2%
 
95.0%
 
94.7%
 
1.8%
 

8000 Avalon (5)
 
229,000

 
Consolidated
 
90%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.5%
 

3348 Peachtree
 
258,000

 
Consolidated
 
100%
 
92.3%
 
92.2%
 
92.1%
 
92.1%
 
1.2%
 

Emory University Hospital Midtown
 
358,000

 
Unconsolidated
 
50%
 
99.1%
 
99.6%
 
98.5%
 
99.1%
 
0.9%
 
33,973

Meridian Mark Plaza
 
160,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
0.9%
 
22,964

ATLANTA (6)
 
7,250,000

 
 
 
 
 
91.2%
 
91.3%
 
88.2%
 
88.7%
 
33.8%
 
356,070

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

 
Consolidated
 
100%
 
99.7%
 
99.7%
 
89.2%
 
88.6%
 
7.3%
 

One Eleven Congress
 
519,000

 
Consolidated
 
100%
 
97.1%
 
95.1%
 
88.3%
 
92.4%
 
3.3%
 

The Terrace (4) (5)
 
619,000

 
Consolidated
 
100%
 
89.9%
 
90.8%
 
88.5%
 
87.3%
 
3.1%
 

San Jacinto Center
 
395,000

 
Consolidated
 
100%
 
97.9%
 
98.4%
 
89.9%
 
92.7%
 
2.9%
 

Colorado Tower
 
373,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
2.8%
 
116,443

816 Congress
 
435,000

 
Consolidated
 
100%
 
88.8%
 
88.7%
 
88.8%
 
89.1%
 
2.1%
 
79,590

Domain Point (4) (5)
 
242,000

 
Consolidated
 
96.5%
 
88.1%
 
95.8%
 
79.6%
 
95.8%
 
0.9%
 

Research Park V
 
173,000

 
Consolidated
 
100%
 
97.1%
 
97.1%
 
97.1%
 
97.1%
 
0.8%
 

AUSTIN
 
4,043,000

 
 
 
 
 
95.8%
 
96.1%
 
89.8%
 
91.2%
 
23.2%
 
196,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
 
966,000

 
Consolidated
 
100%
 
98.5%
 
98.4%
 
93.1%
 
92.0%
 
4.8%
 

Bank of America Plaza (5)
 
891,000

 
Consolidated
 
100%
 
90.4%
 
89.8%
 
88.4%
 
87.3%
 
3.6%
 

Fifth Third Center
 
692,000

 
Consolidated
 
100%
 
96.2%
 
96.2%
 
92.6%
 
92.6%
 
3.4%
 
139,884

NASCAR Plaza
 
395,000

 
Consolidated
 
100%
 
100.0%
 
98.2%
 
98.4%
 
98.2%
 
2.1%
 

Dimensional Place (5)
 
281,000

 
Unconsolidated
 
50%
 
95.6%
 
95.6%
 
94.7%
 
94.3%
 
1.5%
 

Gateway Village (4)
 
1,061,000

 
Unconsolidated
 
50%
 
99.4%
 
99.4%
 
99.4%
 
99.4%
 
1.5%
 

CHARLOTTE
 
4,286,000

 
 
 
 
 
96.2%
 
95.9%
 
93.4%
 
92.8%
 
16.9%
 
139,884

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hayden Ferry (4)
 
789,000

 
Consolidated
 
100%
 
97.8%
 
92.4%
 
92.8%
 
91.5%
 
4.9%
 

Tempe Gateway
 
264,000

 
Consolidated
 
100%
 
94.8%
 
94.8%
 
94.8%
 
86.7%
 
1.6%
 

111 West Rio
 
225,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.1%
 

PHOENIX
 
1,278,000

 
 
 
 
 
97.6%
 
94.2%
 
94.5%
 
92.0%
 
7.6%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Center (4)
 
1,224,000

 
Consolidated
 
100%
 
98.6%
 
98.3%
 
96.3%
 
97.1%
 
5.3%
 

The Pointe
 
253,000

 
Consolidated
 
100%
 
94.9%
 
97.3%
 
96.1%
 
97.1%
 
1.1%
 

Harborview Plaza
 
205,000

 
Consolidated
 
100%
 
80.0%
 
80.0%
 
62.8%
 
63.5%
 
0.5%
 

TAMPA
 
1,682,000

 
 
 
 
 
95.7%
 
95.9%
 
92.2%
 
93.0%
 
6.9%
 


Cousins Properties
16
Q4 2019 Supplemental Information

PORTFOLIO STATISTICS

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

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.9%
 
68,155

5950 Sherry Lane (5)
 
197,000

 
Consolidated
 
100%
 
90.3%
 
93.3%
 
83.5%
 
91.1%
 
0.8%
 

DALLAS
 
516,000

 
 
 
 
 
96.3%
 
97.4%
 
93.7%
 
96.6%
 
2.7%
 
68,155

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

 
Consolidated
 
100%
 
89.2%
 
88.9%
 
88.0%
 
85.0%
 
3.8%
 

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

 
Consolidated
 
100%
 
86.4%
 
86.7%
 
86.4%
 
85.6%
 
3.1%
 

Woodcrest - Cherry Hill (4) (5)
 
386,000

 
Consolidated
 
100%
 
92.0%
 
92.0%
 
82.4%
 
70.7%
 
1.0%
 

Carolina Square - Chapel Hill (5)
 
158,000

 
Unconsolidated
 
50%
 
93.4%
 
93.4%
 
79.5%
 
79.5%
 
0.3%
 
12,772

OTHER OFFICE
 
2,402,000

 
 
 
 
 
88.6%
 
88.6%
 
86.1%
 
82.7%
 
8.2%
 
12,772

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OFFICE
 
21,457,000

 
 
 
 
 
93.6%
 
93.5%
 
90.1%
 
90.0%
 
99.3%
 
$
772,914

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Apartment - Chapel Hill (246 units) (5)
 
266,000

 
Unconsolidated
 
50%
 
99.6%
 
100.0%
 
99.6%
 
96.7%
 
0.6%
 
21,502

Carolina Square Retail - Chapel Hill (5)
 
44,000

 
Unconsolidated
 
50%
 
89.3%
 
89.3%
 
89.3%
 
81.5%
 
0.1%
 
3,557

 TOTAL OTHER
 
310,000

 
 
 
 
 
98.1%
 
98.5%
 
98.1%
 
94.6%
 
0.7%
 
$
25,059

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL
 
21,767,000

 
 
 
 
 
93.6%
 
93.5%
 
90.1%
 
90.0%
 
100.0%
 
$
797,973

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See next page for footnotes


Cousins Properties
17
Q4 2019 Supplemental Information

PORTFOLIO STATISTICS

chart-652037a965445132850.jpg
(1
)
Represents the weighted average occupancy of the property over the period for which the property was available for occupancy.
(2
)
The Company's share of net operating income for the three months ended December 31, 2019.
(3
)
The Company's share of property specific mortgage debt, including premiums and net of unamortized loan costs, as of December 31, 2019.
(4
)
Contains two or more buildings that are grouped together for reporting purposes.
(5
)
Not included in Same Property as of December 31, 2019.
(6
)
Weighted average percentages for Atlanta for the third quarter of 2019 have been restated to reflect Terminus at the Company's current 100% ownership percentage.

Cousins Properties
18
Q4 2019 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

 
Net Operating Income ($ in thousands)
 
Three Months Ended December 31,
 
2019
 
2018
 
% Change
Rental Property Revenues (2)
$
115,004

 
$
112,425

 
2.3
%
Rental Property Operating Expenses (2)
43,005

 
41,441

 
3.8
%
Same Property Net Operating Income
$
71,999

 
$
70,984

 
1.4
%
 
 
 
 
 
 
Cash-Basis Rental Property Revenues (3)
$
109,834

 
$
104,512

 
5.1
%
Cash-Basis Rental Property Operating Expenses (4)
42,839

 
41,302

 
3.7
%
Cash-Basis Same Property Net Operating Income
$
66,995

 
$
63,210

 
6.0
%
 
 
 
 
 
 
End of Period Leased
94.6
%
 
94.7
%
 
 
Weighted Average Occupancy
91.1
%
 
92.5
%
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
2019
 
2018
 
% Change
Rental Property Revenues (2)
$
460,257

 
$
446,122

 
3.2
%
Rental Property Operating Expenses (2)
171,063

 
164,377

 
4.1
%
Same Property Net Operating Income
$
289,194

 
$
281,745

 
2.6
%
 
 
 
 
 
 
Cash-Basis Rental Property Revenues (3)
$
433,684

 
$
414,767

 
4.6
%
Cash-Basis Rental Property Operating Expenses (4)
170,404

 
163,632

 
4.1
%
Cash-Basis Same Property Net Operating Income
$
263,280

 
$
251,135

 
4.8
%
 
 
 
 
 
 
Weighted Average Occupancy
91.8
%
 
92.3
%
 
 
(1)
Same Properties include those office properties that were fully operational in each of the comparable reporting periods. See Portfolio Statistics beginning on page 16 for footnotes indicating which properties are not included in Same Property. On October 1, 2019, the Company purchased its partner's interest in Terminus Office Holdings LLC and, therefore, has excluded the Terminus properties from Same Property as of December 31, 2019. See Non-GAAP Financial Measures - Calculations and Reconciliations.
(2)
Rental Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures and exclude termination fee income. Net operating income for unconsolidated joint ventures is calculated as rental property revenues less termination fee income and rental property expenses at the joint ventures multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but believes that including these amounts with consolidated net operating income is meaningful to investors and analysts.
(3)
Cash-Basis Rental Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Revenues, excluding termination fee income, straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)
Cash-Basis Rental Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.

Cousins Properties
19
Q4 2019 Supplemental Information

OFFICE LEASING ACTIVITY(1)


 
Three Months Ended December 31, 2019
 
Year Ended December 31, 2019
 
New
 
Renewal
 
Expansion
 
Total
 
New
 
Renewal
 
Expansion
 
Total
 Gross leased (square feet)
 
 
 
 
 
 
687,885

 
 
 
 
 
 
 
3,584,798

 Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements
 
 
 
 
 
 
(126,234
)
 
 
 
 
 
 
 
(510,333
)
 Net leased (square feet)
153,195

 
322,036

 
86,420

 
561,651

 
1,558,196
 
1,060,293
 
455,976
 
3,074,465

 Number of transactions
16

 
22

 
9

 
47

 
57
 
72
 
34
 
163

 Lease term (years) (2)
8.1

 
5.3

 
6.2

 
6.2

 
9.4
 
5.7
 
8.1
 
7.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Net Effective Rent Calculation (per square foot per year) (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net annualized rent (3)
$
33.59

 
$
29.49

 
$
34.50

 
$
31.38

 
$
28.58

 
$
30.30

 
$
37.02

 
$
30.43

      Net free rent
(1.43
)
 
(0.72
)
 
(1.34
)
 
(1.01
)
 
(0.60
)
 
(0.60
)
 
(0.81
)
 
(0.63
)
      Leasing commissions
(3.08
)
 
(2.72
)
 
(2.91
)
 
(2.84
)
 
(1.84
)
 
(2.62
)
 
(3.10
)
 
(2.29
)
      Tenant improvements
(6.49
)
 
(3.74
)
 
(6.36
)
 
(4.89
)
 
(3.85
)
 
(3.02
)
 
(4.73
)
 
(3.69
)
Leasing Costs
(11.00
)
 
(7.18
)
 
(10.61
)
 
(8.74
)
 
(6.29
)
 
(6.24
)
 
(8.64
)
 
(6.61
)
      Net effective rent
$
22.59

 
$
22.31

 
$
23.89

 
$
22.64

 
$
22.29

 
$
24.06

 
$
28.38

 
$
23.82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Second generation leased square footage (4)(5)
 
 
 
 
 
 
445,196

 
 
 
 
 
 
 
2,146,608

 Increase in second generation net rent per square foot (2)(3)(4)(5)
 
 
 
25.5
%
 
 
 
 
 
 
 
21.3
%
 Increase in cash-basis second generation net rent per square foot (2)(4)(5)
 
12.6
%
 
 
 
 
 
 
7.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (1) Office leasing activity is comprised of total square feet leased, unadjusted for ownership share, and excluding apartment and retail leasing at our mixed-use projects.
 (2) Weighted average.
 (3) Straight-line 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) Increase in net rent at the end of term paid by the prior tenant compared to net rent at the beginning of term paid by the current tenant. For early renewals, the increase in net rent at the end of term of the original lease is compared to net rent at the beginning of the extended term of the lease.



Cousins Properties
20
Q4 2019 Supplemental Information

OFFICE LEASE EXPIRATIONS


Lease Expirations by Year (1)
 Year of Expiration
 
 Square Feet
Expiring
 
 % of Leased
Space
 
 Annual
Contractual Rent
($000's) (2)
 
 % of Annual
Contractual
Rent
 
 Annual
Contractual
Rent/Sq. Ft.
 
 
 
 
 
 
 
 
 
 
 
2020
 
1,470,908

 
7.7
%
 
$
47,658

 
5.9
%
 
$
32.53

2021
 
2,135,471

 
11.2
%
 
77,864

 
9.6
%
 
36.46

2022
 
1,385,805

 
7.3
%
 
56,590

 
6.9
%
 
40.84

2023
 
1,700,019

 
8.9
%
 
69,947

 
8.6
%
 
41.14

2024
 
1,216,461

 
6.4
%
 
48,970

 
6.0
%
 
40.26

2025
 
1,993,279

 
10.4
%
 
87,994

 
10.9
%
 
44.15

2026
 
2,068,688

 
10.8
%
 
83,204

 
10.3
%
 
40.22

2027
 
1,471,736

 
7.6
%
 
60,873

 
7.4
%
 
41.16

2028
 
1,172,249

 
6.1
%
 
49,825

 
6.1
%
 
42.38

2029 &Thereafter
 
4,495,284

 
23.6
%
 
229,494

 
28.3
%
 
51.06

 
 
 
 
 
 
 
 
 
 
 
Total
 
19,109,900

 
100.0
%
 
$
812,419

 
100.0
%
 
$ 42.51


chart-8358f4fc8bc0596ea8a.jpg
(1) Company's share.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an estimate of operating expenses, if applicable, as defined in the respective leases.

Cousins Properties
21
Q4 2019 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 Rent (2)
 
Percentage of Company's Share of Annualized Rent
 
 Weighted Average Remaining Lease Term (Years)
1

Bank of America
 
4
 
1
 
1,393,086

 
$
38,611,659

 
5.6%
 
4
2

NCR Corporation
 
1
 
1
 
762,090

 
36,166,613

 
5.3%
 
14
3

Amazon
 
4
 
3
 
391,187

 
17,810,008

 
2.6%
 
6
4

Expedia, Inc.
 
1
 
1
 
296,955

 
13,407,563

 
2.0%
 
9
5

Norfolk Southern Corporation
 
2
 
1
 
394,621

 
11,271,065

 
1.6%
 
2
6

Apache Corporation
 
1
 
1
 
210,012

 
9,232,036

 
1.3%
 
5
7

Wells Fargo Bank, NA
 
4
 
3
 
212,662

 
8,961,318

 
1.3%
 
3
8

Americredit Financial Services (dba GM Financial)
 
2
 
2
 
333,782

 
8,520,825

 
1.2%
 
10
9

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

 
7,944,527

 
1.2%
 
5
10

Encana Oil & Gas (USA) Inc.
 
1
 
1
 
318,582

 
7,831,964

 
1.1%
 
8
11

ADP, LLC
 
1
 
1
 
225,000

 
7,307,064

 
1.0%
 
8
12

McGuirewoods LLP
 
3
 
3
 
197,282

 
6,742,246

 
1.0%
 
7
13

Westrock Shared Services, LLC
 
1
 
1
 
205,185

 
6,701,263

 
0.9%
 
10
14

Dimensional Fund Advisors LP
 
1
 
1
 
132,434

 
6,235,230

 
0.9%
 
14
15

Morgan Stanley
 
2
 
2
 
130,863

 
5,925,364

 
0.9%
 
8
16

Regus Equity Business Centers, LLC
 
6
 
4
 
146,852

 
5,894,747

 
0.9%
 
5
17

Samsung Engineering America
 
1
 
1
 
133,860

 
5,857,544

 
0.9%
 
7
18

Anthem
 
1
 
1
 
198,834

 
5,642,481

 
0.8%
 
1
19

General Services Administration
 
3
 
3
 
220,600

 
5,613,079

 
0.8%
 
3
20

NASCAR Media Group, LLC
 
1
 
1
 
139,861

 
5,518,368

 
0.8%
 
1
 
Total
 
 
 
 
 
6,178,855

 
$
221,194,964

 
32.1%
 
7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)

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

Annualized Rent represents the annualized rent including tenant's share of estimated operating expenses, if applicable, 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 Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay rent.
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
22
Q4 2019 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION

chart-4fea0231a8e9572a811.jpg


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


Cousins Properties
23
Q4 2019 Supplemental Information

INVESTMENT ACTIVITY


Completed Property Acquisitions
Property
 
Type
 
Market
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Gross Purchase Price ($ in thousands) (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
1200 Peachtree
 
Office
 
Atlanta
 
100.0%
 
1Q
 
370,000

 
$
82,000

TIER REIT, Inc.
 
Office
 
Various
 
Various
 
2Q
 
5,799,000

 
(2
)
Terminus (3)
 
Office
 
Atlanta
 
100.0%
 
4Q
 
1,226,000

 
246,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
111 West Rio (4)
 
Office
 
Phoenix
 
100.0%
 
1Q
 
225,000

 
19,600

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

 
(5
)
Cousins Fund II, L.P. (6)
 
Office
 
Various
 
100.0%
 
4Q
 
(6
)
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18,665,000

 
$
1,189,700


Completed Property Developments
Project
 
Type
 
Market
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Total Project Cost
($ in thousands) (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
 
 
 
Dimensional Place
 
Office
 
Charlotte
 
50.0%
 
1Q
 
281,000

 
$
96,000

 
 
 
 
 
 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
 
 
 
 
Spring & 8th
 
Office
 
Atlanta
 
100.0%
 
1Q/4Q
 
765,000

 
332,500

 
 
 
 
 
 
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
8000 Avalon
 
Office
 
Atlanta
 
90.0%
 
2Q
 
229,000

 
73,000

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

 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,591,000

 
$
871,000


(1) Except as otherwise noted, amounts represent total purchase prices, total project cost paid by the company, and, where applicable, its joint venture partner, including certain allocated costs required by GAAP that are not incurred in a joint venture.
(2) Properties acquired in the merger with TIER REIT, Inc.
(3) Purchased outside interest of 50% in Terminus Office Holdings for $246 million before reductionsfor existing mortgage debt.
(4) Purchased outside interest of 25.4% in 111 West Rio.
(5) Properties acquired in the merger/spin with Parkway Properties, Inc.
(6) Purchased the outside interest (approximately 70%) in a consolidated partnership for $279.1 million.


Cousins Properties
24
Q4 2019 Supplemental Information

INVESTMENT ACTIVITY



     

Completed Property Dispositions
Property
 
Type
 
Market
 
Company's Ownership Interest
 
Timing
 
Square Feet
 
Gross Sales Price ($ in thousands) (1)
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 (2)
 
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 (3)
 
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
 
100.0%
 
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

 
 
 
 
 
 
 
 
 
 
14,690,000

 
$
1,784,800


(1) Except as otherwise noted, amounts represent total gross sales prices received by the Company and, where applicable, its joint venture partner.
(2) The Company sold its 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.
(3) These properties were spun off as part of the merger/spin with Parkway Properties, Inc.


Cousins Properties
25
Q4 2019 Supplemental Information

DEVELOPMENT PIPELINE (1)



Project
 
Type
 
Market
 
Company's Ownership Interest
 
Construction Start Date
 
Number of Square Feet /Apartment Units
 
Estimated Project Cost (1) (2) ($ in thousands)
 
Company's Share of Estimated Project Cost (2)
($ in thousands)
 
Project Cost Incurred to Date (2)
($ in thousands)
 
Company's Share of Project Cost Incurred to Date (2) ($ in thousands)
 
Percent Leased
 
Initial Occupancy (3)(5)
 
Estimated Stabilization (4)(5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120 West Trinity
 
Mixed
 
Atlanta
 
20
%
 
1Q17
 
 
 
$
85,000

 
$
17,000

 
$
77,449

 
$
15,490

 
 
 
 
 
 
Office
 
 
 
 
 
 
 
 
 
33,000

 
 
 
 
 
 
 
 
 
100
%
 
3Q20
 
3Q20
Retail
 
 
 
 
 
 
 
 
 
19,000

 
 
 
 
 
 
 
 
 
12
%
 
3Q20
 
4Q20
Apartments
 
 
 
 
 
 
 
 
 
330

 
 
 
 
 
 
 
 
 
12
%
 
4Q19
 
4Q20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10000 Avalon
 
Office
 
Atlanta
 
90
%
 
3Q18
 
251,000

 
96,000

 
86,400

 
87,331

 
78,598

 
59
%
 
1Q20
 
1Q21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300 Colorado
 
Office
 
Austin
 
50
%
 
4Q18
 
358,000

 
193,000

 
96,500

 
106,022

 
53,011

 
87
%
 
1Q21
 
1Q22
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domain 10
 
Office
 
Austin
 
100
%
 
4Q18
 
300,000

 
111,000

 
111,000

 
73,152

 
73,152

 
98
%
 
4Q20
 
3Q21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domain 12
 
Office
 
Austin
 
100
%
 
2Q18
 
320,000

 
117,000

 
117,000

 
87,189

 
87,189

 
100
%
 
2Q20
 
3Q20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 Mill
 
Office
 
Phoenix
 
90
%
 
1Q20
 
287,000

 
153,000

 
137,700

 
28,441

 
25,597

 
44
%
 
1Q22
 
1Q23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
$
755,000

 
$
565,600

 
$
459,584

 
$
333,037

 
 
 
 
 
 

(1)
This schedule shows projects currently under active development through the substantial completion of construction. Amounts included in the estimated project cost column are the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates.
(2)
Estimated and incurred project costs include financing costs only on project-specific debt, and exclude certain allocated capitalized costs required by GAAP that are not incurred in a joint venture and fair value adjustments for legacy TIER projects that were recorded as a result of the Merger.
(3)
Initial occupancy represents the quarter within which the Company estimates the first tenant will take occupancy.
(4)
Estimated stabilization is the quarter within which the Company estimates it will achieve 90% economic occupancy. Interest, taxes, and operating expenses are capitalized on the unoccupied portion of the building for the period beginning with initial occupancy until the earlier of the achievement of 90% economic occupancy or one year.
(5)
Initial occupancy and estimated stabilization are based, in part, on when the space is ready for its intended use, which is dependent upon the commencement and completion of tenant improvements. Since tenants in these properties generally control the timing of tenant improvements, timing of these estimates is subject to change.





Cousins Properties
26
Q4 2019 Supplemental Information

LAND INVENTORY


 
 
Market
 
Type
 
Company's Ownership Interest
 
Total Developable Land (Acres)
 
Cost Basis of Land ($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
3354 Peachtree
Atlanta
 
Commercial
 
95%
 
3.0

 
 
901 West Peachtree (1) (2)
Atlanta
 
Commercial
 
100%
 
1.0

 
 
The Avenue Forsyth-Adjacent Land
Atlanta
 
Commercial
 
100%
 
10.4

 
 
Wildwood Office Park - Joint Venture (3)
Atlanta
 
Commercial
 
50%
 
6.3

 
 
Domain 9
Austin
 
Commercial
 
100%
 
2.5

 
 
Domain 14 & 15
Austin
 
Commercial
 
100%
 
5.6

 
 
Legacy Union 2 & 3
Dallas
 
Commercial
 
95%
 
4.0

 
 
Victory Center
Dallas
 
Commercial
 
75%
 
3.0

 
 
Burnett Plaza-Adjacent Land
Fort Worth
 
Commercial
 
100%
 
1.4

 
 
Corporate Center 5 & 6 (4)
Tampa
 
Commercial
 
100%
 
14.1

 
 
Padre Island
Corpus Christi
 
Residential
 
50%
 
15.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
66.3

 
$
130,176

Company's Share
 
 
 
 
 
 
 
54.5

 
$
110,150


(1)
Includes two ground leases with future obligations to purchase.
(2)
During the fourth quarter of 2019, the Company purchased two adjacent land parcels bringing the assemblage to approximately 1 acre.
(3)
During January 2020, the Company sold its remaining interest in the Wildwood Associates joint venture to its venture partner and recognized a gain of $1.4 million.
(4)
Corporate Center 5 is controlled through a long-term ground lease.
Note:
Subsequent to quarter end, commenced development of 100 Mill. See Development Pipeline on page 26.







Cousins Properties
27
Q4 2019 Supplemental Information

DEBT SCHEDULE

 
 
 
 
 
 
 
Company's Share of Debt Maturities and Principal Payments
 
 
 
 
 
 
 
 
 
 
 
 
 
($ in thousands)
 
 
 
 
 
 
Description (Interest Rate Base, if not fixed)
Company's Ownership Interest
 
Rate at End of Quarter
 
Maturity Date
 
2020
 
2021
 
2022
 
2023
 
2024
 
Thereafter
 
Total Principal
 
Deferred Loan Costs
 
Above / Below Market Value
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt - Floating Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Credit Facility, Unsecured (LIBOR + 1.05%-1.45%) (1)
100%
 
2.81%
 
1/3/23
 
$

 
$

 
$

 
$
251,500

 
$

 
$

 
$
251,500

 
$

 
$

 
$
251,500

 Term Loan, Unsecured (LIBOR + 1.20%-1.70%) (2)
100%
 
2.96%
 
12/2/21
 

 
250,000

 

 

 

 

 
250,000

 
(774
)
 

 
249,226

Total Floating Rate Debt
 
 
 
 
 
 

 
250,000

 

 
251,500

 

 

 
501,500

 
(774
)
 

 
500,726

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt - Fixed Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019 Senior Notes, Unsecured
100%
 
3.95%
 
7/6/29
 

 

 

 

 

 
275,000

 
275,000

 
(1,068
)
 

 
273,932

2017 Senior Notes, Unsecured
100%
 
3.91%
 
7/6/25
 

 

 

 

 

 
250,000

 
250,000

 
(1,007
)
 

 
248,993

2019 Senior Notes, Unsecured
100%
 
3.86%
 
7/6/28
 

 

 

 

 

 
250,000

 
250,000

 
(965
)
 

 
249,035

Fifth Third Center
100%
 
3.37%
 
10/1/26
 
3,274

 
3,386

 
3,502

 
3,622

 
3,746

 
122,802

 
140,332

 
(448
)
 

 
139,884

2019 Senior Notes, Unsecured
100%
 
3.78%
 
7/6/27
 

 

 

 

 

 
125,000

 
125,000

 
(479
)
 

 
124,521

Terminus 100
100%
 
5.25%
 
1/1/23
 
3,149

 
3,319

 
3,497

 
108,181

 

 

 
118,146

 

 
7,158

 
125,304

Colorado Tower
100%
 
3.45%
 
9/1/26
 
2,425

 
2,510

 
2,598

 
2,689

 
2,783

 
104,080

 
117,085

 
(642
)
 

 
116,443

2017 Senior Notes, Unsecured
100%
 
4.09%
 
7/6/27
 

 

 

 

 

 
100,000

 
100,000

 
(401
)
 

 
99,599

Promenade
100%
 
4.27%
 
10/1/22
 
3,393

 
3,541

 
89,052

 

 

 

 
95,986

 
(162
)
 

 
95,824

816 Congress
100%
 
3.75%
 
11/1/24
 
1,754

 
1,821

 
1,891

 
1,963

 
72,558

 

 
79,987

 
(397
)
 

 
79,590

Terminus 200
100%
 
3.79%
 
1/1/23
 
1,726

 
1,792

 
1,861

 
70,700

 

 

 
76,079

 

 
1,926

 
78,005

Legacy Union One
100%
 
4.24%
 
1/1/23
 

 

 

 
66,000

 

 

 
66,000

 

 
2,155

 
68,155

Meridian Mark Plaza (6)
100%
 
6.00%
 
8/1/20
 
22,978

 

 

 

 

 

 
22,978

 
(14
)
 

 
22,964

Total Fixed Rate Debt
 
 
 
 
 
 
38,699

 
16,369

 
102,401

 
253,155

 
79,087

 
1,226,882

 
1,716,593

 
(5,583
)
 
11,239

 
1,722,249

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Consolidated Debt
 
 
 
 
 
 
38,699

 
266,369

 
102,401

 
504,655

 
79,087

 
1,226,882

 
2,218,093

 
(6,357
)
 
11,239

 
2,222,975

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt - Floating Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square (LIBOR + 1.90%) (3)
50%
 
3.66%
 
5/1/20
 
37,831

 

 

 

 

 

 
37,831

 

 

 
37,831

300 Colorado (LIBOR + 2.25%) (4)
50%
 
4.01%
 
1/17/22
 

 

 
10,715

 

 

 

 
10,715

 

 

 
10,715

Total Floating Rate Debt
 
 
 
 
 
 
37,831

 

 
10,715

 

 

 

 
48,546

 

 

 
48,546

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt - Fixed Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emory University Hospital Midtown
50%
 
3.50%
 
6/1/23
 
842

 
872

 
903

 
31,436

 

 

 
34,054

 
(81
)
 

 
33,973

Total Fixed Rate Debt
 
 
 
 
 
 
842

 
872

 
903

 
31,436

 

 

 
34,054

 
(81
)
 

 
33,973

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Unconsolidated Debt
 
 
 
 
 
 
38,673

 
872

 
11,618

 
31,436

 

 

 
82,600

 
(81
)
 

 
82,519

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Debt
 
 
 
 
 
 
$
77,372

 
$
267,241

 
$
114,019

 
$
536,091

 
$
79,087

 
$
1,226,882

 
$
2,300,693

 
$
(6,438
)
 
$
11,239

 
$
2,305,494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Maturities (5)
 
 
 
 
 
 
$
60,475

 
$
250,000

 
$
97,010

 
$
527,432

 
$
70,865

 
$
1,215,159

 
$
2,220,941

 
 
 
 
 
 
% of Maturities
 
 
 
 
 
 
3
%
 
11
%
 
4
%
 
24
%
 
3
%
 
55
%
 
100
%
 
 
 
 
 
 



Cousins Properties
28
Q4 2019 Supplemental Information

DEBT SCHEDULE


Floating and Fixed Rate Debt Analysis
 
 
Total Debt Principal ($)
 
Total Debt (%)
 
Weighted Average Interest Rate
 
Weighted Average Maturity (Yrs.)
Floating Rate Debt
 
$
550,046

 
24
%
 
2.96
%
 
2.3

Fixed Rate Debt
 
1,750,647

 
76
%
 
3.97
%
 
6.3

Total Debt
 
$
2,300,693

 
100
%
 
3.73
%
 
5.4


(1) As of December 31, 2019, the Company had $251.5 million drawn under the Credit Facility and had the ability to borrow $748.5 million of the $1 billion available. The spread over LIBOR at December 31, 2019 was 1.05%.
(2) The spread over LIBOR at December 31, 2019 was 1.20%.
(3) The Company's share of the total borrowing capacity of the facility is $39.9 million.
(4) The Company's share of the total borrowing capacity of the facility is $63.0 million.
(5) Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.
(6) On February 3, 2020, the Company prepaid in full, without penalty, the Meridian Mark Plaza mortgage note.

Cousins Properties
29
Q4 2019 Supplemental Information

DEBT SCHEDULE

chart-044572366b205e7bb81.jpg
                

Cousins Properties
30
Q4 2019 Supplemental Information

JOINT VENTURE INFORMATION (1)


Joint Venture
 
Property
 
Cash Flows to Cousins (2)
 
Options
AMCO 120 WT Holdings, LLC
 
120 West Trinity
 
20% of cash flows.
 
Cousins or Partner can trigger a buyout beginning 24 months after construction completion, upon which Cousins would receive the office component and Partner would receive the multifamily component, with a net settlement at a then agreed upon value.
Austin 300 Colorado Project, LP
 
300 Colorado
 
50% of cash flows.
 
Partners can put their combined interest to Cousins, or Cousins can call Partners' combined interest, at a then agreed upon value during a 24-month period following final phase rent commencement.
Carolina Square Holdings LP
 
Carolina Square
 
50% of cash flows.
 
Cousins or Partner can trigger sale process, subject to a right of first offer that can be exercised by the non-triggering party.
Charlotte Gateway Village LLC
 
Gateway Village
 
50% of cash flows.
 
Partner can trigger a purchase of Cousins' interest at a value that generates a 17% IRR on Cousins' invested capital.
Crawford Long-CPI, LLC
 
Emory University Hospital Midtown
 
50% of cash flows.
 
Cousins can put its interest to Partner, or Partner can call Cousins' interest, at a value determined by appraisal.
DC Charlotte Plaza, LLLP
 
Dimensional Place
 
50% of cash flows.
 
Partner can purchase Cousins' interest during Q2 2021 at a value determined by appraisal and subject to a cap rate range.
HICO 100 Mill, LLC
 
100 Mill
 
90% of cash flows until return of contributed capital to both partners.
 
Cousins can trigger sale process following construction completion, subject to a right of first offer that can be exercised by Partner.
HICO Avalon II, LLC
 
10000 Avalon
 
90% of cash flows until return of contributed capital to both Partners.
 
Cousins or Partner can trigger sale process 24 months after construction completion, subject to a right of first offer that can be exercised by the non-triggering party.
HICO Avalon, LLC
 
8000 Avalon
 
90% of cash flows until return of contributed capital to both Partners.
 
Cousins or Partner can trigger sale process, subject to a right of first offer that can be exercised by the non-triggering party.
TR Domain Point LLC
 
Domain Point
 
Preferred return on preferred equity contribution, then 90% of remaining cash flows.
 
Partner has put option beginning Q1 2023 under various circumstances.

(1
)
This schedule only contains information related to joint ventures that hold an ownership interest in operating assets or projects under development.
(2
)
Each respective joint venture agreement may contain additional terms that affect the distribution of operating cash flows and capital transaction proceeds that are not yet effective, including the distribution of promoted interest.


Cousins Properties
31
Q4 2019 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
 
 
 
 
 
 
 
 
 
 
 
 
FFO and EBITDAre
 
 
 
 
 
 
 
 
 
 
 
Net income available to common stockholders
$
216,275

$
16,043

$
21,276

$
19,485

$
22,360

$
79,164

$
35,341

$
(22,409
)
$
20,374

$
117,112

$
150,418

Depreciation and amortization of real estate assets:
 
 
 
 
 
 
 
 
 
 
 
Consolidated properties
194,869

44,620

45,207

44,599

45,084

179,510

45,405

50,450

81,569

77,925

255,349

Share of unconsolidated joint ventures
13,191

3,419

3,016

3,119

3,524

13,078

3,254

4,154

4,148

2,602

14,158

Partners' share of real estate depreciation
(23
)
(69
)
(70
)
(72
)
(91
)
(302
)
(96
)
(99
)
(171
)
(155
)
(521
)
(Gain) loss on sale of depreciated properties:
 
 
 
 
 
 
 
 
 


 
Consolidated properties
(133,043
)
372

(5,317
)
33

(13
)
(4,925
)
21

33

48

(92,680
)
(92,578
)
Share of unconsolidated joint ventures
(35,050
)
(48
)
63


14

29


5


10

15

Non-controlling interest related to unit holders
3,681

287

410

326

322

1,345

588

(265
)
241

1,388

1,952

FFO
259,900

64,624

64,585

67,490

71,200

267,899

84,513

31,869

106,209

106,202

328,793

Interest Expense
41,382

11,293

11,305

11,208

12,080

45,886

12,574

13,692

16,377

17,058

59,701

Non-Real Estate Depreciation and Amortization
1,874

473

468

469

462

1,872

456

454

443

446

1,799

EBITDAre (1)
303,156

76,390

76,358

79,167

83,742

315,657

97,543

46,015

123,029

123,706

390,293

Transaction Costs (2)
1,661

91

137


20

248

3

49,827

1,048

2,003

52,881

(Gain) Loss on Extinguishment of Debt
(2,258
)
85


(93
)

(8
)





Adjusted EBITDAre (1)
302,559

76,566

76,495

79,074

83,762

315,897

97,546

95,842

124,077

125,709

443,174

 
 
 
 
 
 
 
 
 
 
 
 
Income from Unconsolidated Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
 
Office Properties
27,187

6,933

6,685

6,557

6,469

26,644

7,006

8,670

8,369

5,310

29,355

Other Properties
3,866

488

543

437

776

2,244

867

709

668

814

3,058

Net Operating Income
31,053

7,421

7,228

6,994

7,245

28,888

7,873

9,379

9,037

6,124

32,413

Sales Less Cost of Sales

330

2,449



2,779






Interest Expense
(7,859
)
(1,515
)
(1,591
)
(1,657
)
(1,693
)
(6,456
)
(1,754
)
(1,633
)
(1,677
)
(674
)
(5,738
)
Termination Fee Income
1,294






3

4

9


16

Other Income
768

20

27

36

37

120

36

43

20

49

148

Funds from Operations - Unconsolidated Joint Ventures
25,256

6,256

8,113

5,373

5,589

25,331

6,158

7,793

7,389

5,499

26,839

Gain (Loss) on Sale of Depreciated Investment Properties, net
35,050

48

(61
)
(2
)
(14
)
(29
)

(5
)

(10
)
(15
)
Depreciation and Amortization of Real Estate
(13,191
)
(3,419
)
(3,016
)
(3,119
)
(3,524
)
(13,078
)
(3,254
)
(4,154
)
(4,148
)
(2,602
)
(14,158
)
Income from Unconsolidated Joint Ventures
47,115

2,885

5,036

2,252

2,051

12,224

2,904

3,634

3,241

2,887

12,666

 
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization
 
 
 
 
 
 
 
 
 
 
 
Common Stock Price at Period End
$
37.00

$
34.72

$
38.76

$
35.56

$
31.60

$
31.60

$
38.64

$
36.17

$
37.59

$
41.20

$
41.20

Number of Common Stock/Units Outstanding at Period End
106,749

106,805

106,842

106,840

106,840

106,840

106,890

148,507

148,506

148,506

148,506

Equity Market Capitalization
3,949,713

3,708,270

4,141,196

3,799,230

3,376,144

3,376,144

4,130,230

5,371,498

5,582,341

6,118,447

6,118,447

 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
1,093,228

1,091,258

1,089,264

1,065,012

1,062,570

1,062,570

1,116,474

1,837,449

1,850,817

2,222,975

2,222,975

Share of Unconsolidated Debt
169,295

171,575

172,195

171,879

171,446

171,446

170,690

170,214

172,319

82,519

82,519

Debt (1)
1,262,523

1,262,833

1,261,459

1,236,891

1,234,016

1,234,016

1,287,164

2,007,663

2,023,136

2,305,494

2,305,494

 
 
 
 
 
 
 
 
 
 
 
 
Total Market Capitalization
5,212,227

4,971,085

5,402,655

5,036,113

4,610,152

4,610,152

5,417,403

7,379,161

7,605,477

8,423,941

8,423,941

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
32
Q4 2019 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
 
 
 
 
 
 
 
 
 
 
 
 
Credit Ratios
 
 
 
 
 
 
 
 
 
 
 
Net Debt (Debt (1) minus Cash and Cash Equivalents)
1,113,594

1,154,681

1,151,227

1,154,185

1,231,469

1,231,469

1,283,708

1,995,778

2,010,740

2,289,891

2,289,891

Total Market Capitalization
5,212,227

4,971,085

5,402,655

5,036,113

4,610,152

4,610,152

5,417,403

7,379,161

7,605,477

8,423,941

8,423,941

Net Debt / Total Market Capitalization
21.4
%
23.2
%
21.3
%
22.9
%
26.7
%
26.7
%
23.7
%
27.0
%
26.4
%
27.2
%
27.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets - Consolidated
4,204,619

4,159,310

4,166,252

4,143,599

4,146,296

4,146,296

4,251,193

6,676,672

6,704,120

7,151,447

7,151,447

Accumulated Depreciation - Consolidated
380,908

427,216

474,064

546,989

566,749

566,749

643,140

696,531

781,998

802,807

802,807

Undepreciated Assets - Unconsolidated (1)
455,100

481,858

490,418

511,766

530,076

530,076

553,098

568,387

590,183

391,457

391,457

Less: Investment in Unconsolidated Joint Ventures
(101,414
)
(145,465
)
(143,201
)
(154,070
)
(161,907
)
(161,907
)
(167,429
)
(176,169
)
(186,079
)
(133,884
)
(133,884
)
Total Undepreciated Assets (1)
4,939,213

4,922,919

4,987,533

5,048,284

5,081,214

5,081,214

5,280,002

7,765,421

7,890,222

8,211,827

8,211,827

Net Debt (Debt (1) minus Cash and Cash Equivalents)
1,113,594

1,154,681

1,151,227

1,154,185

1,231,469

1,231,469

1,283,708

1,995,778

2,010,740

2,289,891

2,289,891

Undepreciated Assets (1)
4,939,213

4,922,919

4,987,533

5,048,284

5,081,214

5,081,214

5,280,002

7,765,421

7,890,222

8,211,827

8,211,827

Net Debt / Total Undepreciated Assets (1)
22.5
%
23.5
%
23.1
%
22.9
%
24.2
%
24.2
%
24.3
%
25.7
%
25.5
%
27.9
%
27.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Coverage Ratios (1)
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
41,382

11,293

11,305

11,208

12,080

45,886

12,574

13,692

16,377

17,058

59,701

Scheduled Principal Payments
12,859

2,900

2,929

2,733

3,446

12,008

3,481

3,516

3,551

4,178

14,726

Fixed Charges
54,241

14,193

14,234

13,941

15,526

57,894

16,055

17,208

19,928

21,236

74,427

EBITDAre
303,156

76,390

76,358

79,167

83,742

315,657

97,543

46,015

123,029

123,706

390,293

Fixed Charges Coverage Ratio (EBITDAre) (1)
5.59

5.38

5.36

5.68

5.39

5.45

6.08

2.67

6.17

5.83

5.24

Adjusted EBITDAre
302,559

76,566

76,495

79,074

83,762

315,897

97,546

95,842

124,077

125,709

443,174

Fixed Charges Coverage Ratio (Adjusted EBITDAre) (1)
5.58

5.39

5.37

5.67

5.39

5.46

6.08

5.57

6.23

5.92

5.95

 
 
 
 
 
 
 
 
 
 
 
 
Net Debt (Debt (1) minus Cash and Cash Equivalents)
1,113,594

1,154,681

1,151,227

1,154,185

1,231,469

1,231,469

1,283,708

1,995,778

2,010,740

2,289,891

2,289,891

Annualized EBITDAre (3)
296,700

305,564

305,432

316,668

334,968

334,968

390,172

184,060

492,116

494,824

494,824

Net Debt / Annualized EBITDAre (3)
3.75

3.78

3.77

3.64

3.68

3.68

3.29

10.84

4.09

4.63

4.63

Annualized Adjusted EBITDAre (3)
297,348

306,264

305,980

316,296

335,048

335,048

390,184

383,368

496,308

502,836

502,836

Net Debt / Annualized Adjusted EBITDAre (3)
3.75

3.77

3.76

3.65

3.68

3.68

3.29

5.21

4.05

4.55

4.55

 
 
 
 
 
 
 
 
 
 
 
 
Dividend Information
 
 
 
 
 
 
 
 
 
 
 
Common Dividends (4)
100,776

27,315

27,326

27,363

27,287

109,291

30,492

42,562

42,559

42,561

158,174

FFO
259,900

64,624

64,585

67,490

71,200

267,899

84,513

31,869

106,209

106,202

328,793

         FFO Payout Ratio
38.8
%
42.3
%
42.3
%
40.5
%
38.3
%
40.8
%
36.1
%
133.6
%
40.1
%
40.1
%
48.1
%
Transaction Costs (2)
1,661

91

137


20

248

3

49,827

1,048

2,003

52,881

FFO before Transaction Costs (2)
261,561

64,715

64,722

67,490

71,220

268,147

84,516

81,696

107,257

108,205

381,674

         FFO Payout Ratio before Transaction Costs (2)
38.5
%
42.2
%
42.2
%
40.5
%
38.3
%
40.8
%
36.1
%
52.1
%
39.7
%
39.3
%
41.4
%
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties
33
Q4 2019 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
2017
2018 1st
2018 2nd
2018 3rd
2018 4th
2018
2019 1st
2019 2nd
2019 3rd
2019 4th
2019
 
 
 
 
 
 
 
 
 
 
 
 
FFO
259,900

64,624

64,585

67,490

71,200

267,899

84,513

31,869

106,209

106,202

328,793

Amortization of Deferred Financing Costs
1,800

603

601

606

607

2,417

615

630

692

693

2,630

Non-Cash Stock-Based Compensation
1,983

543

579

560

575

2,257

607

625

615

621

2,468

Non-Real Estate Depreciation and Amortization
1,874

473

468

469

462

1,872

456

454

443

446

1,799

Lease Inducements
485

147

189

175

249

760

157

(401
)
(537
)
(514
)
(1,295
)
Straight Line Rent Ground Leases
440

110

110

243

126

589

127

124

123

126

500

Above and Below Market Ground Rent
159

39

40

39

40

158

39

40

39

40

158

Transaction Costs (2)
1,661

91

137


20

248

3

49,827

1,048

2,003

52,881

Debt Premium Amortization
(3,937
)
(239
)
(239
)
(213
)
(189
)
(880
)

(34
)
(180
)
(916
)
(1,130
)
(Gain) Loss on Extinguishment of Debt
(2,258
)
85


(93
)

(8
)





Deferred Income - Tenant Improvements
(2,868
)
(819
)
(857
)
(930
)
(1,166
)
(3,772
)
(870
)
(940
)
(923
)
(932
)
(3,665
)
Above and Below Market Rents
(7,221
)
(1,793
)
(1,714
)
(1,730
)
(1,640
)
(6,877
)
(1,670
)
(1,981
)
(3,042
)
(2,846
)
(9,539
)
Second Generation CAPEX
(53,485
)
(11,256
)
(11,077
)
(15,152
)
(19,182
)
(56,667
)
(8,074
)
(40,604
)
(18,946
)
(23,085
)
(90,709
)
Straight Line Rental Revenue
(30,973
)
(8,136
)
(5,690
)
(5,148
)
(7,043
)
(26,017
)
(8,732
)
(6,068
)
(6,522
)
(8,123
)
(29,445
)
Gain on Sales of Undepreciated Investment Properties
(67
)
(330
)
(2,449
)

(512
)
(3,291
)
(13,132
)
(1,337
)
(21
)
(3,692
)
(18,182
)
          FAD (1)
167,493

44,142

44,683

46,316

43,547

178,688

54,039

32,204

78,998

70,023

235,264

Common Dividends (4)
100,776

27,315

27,326

27,363

27,287

109,291

30,492

42,562

42,559

42,561

158,174

          FAD Payout Ratio (1)
60.2
%
61.9
%
61.2
%
59.1
%
62.7
%
61.2
%
56.4
%
132.2
%
53.9
%
60.8
%
67.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operations Ratio
 
 
 
 
 
 
 
 
 
 
 
Total Undepreciated Assets (1)
4,939,213

4,922,919

4,987,533

5,048,284

5,081,214

5,081,214

5,280,002

7,765,421

7,890,222

8,211,827

8,211,827

General and Administrative Expenses
27,523

6,809

8,071

3,913

3,247

22,040

11,460

8,374

5,852

11,321

37,007

Annualized General and Administrative Expenses (5) / Total Undepreciated Assets
0.56
%
0.55
%
0.65
%
0.31
%
0.26
%
0.43
%
0.87
%
0.43
%
0.30
%
0.55
%
0.45
%
 
 
 
 
 
 
 
 
 
 
 
 
2nd Generation TI & Leasing Costs & Building CAPEX
 
 
 
 
 
 
 
 
 
 
 
Second Generation Leasing Related Costs
50,616

10,319

10,379

14,853

15,598

51,149

7,527

39,834

15,891

17,248

80,500

Second Generation Building Improvements
2,869

937

698

299

3,584

5,518

547

770

3,055

5,837

10,209

 
53,485

11,256

11,077

15,152

19,182

56,667

8,074

40,604

18,946

23,085

90,709

 
 
 
 
 
 
 
 
 
 
 
 
(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) In 2017 and 2018, transaction costs related primarily to the transactions with Parkway Properties, Inc. In 2019, transaction costs relate primarily to the merger with TIER REIT, Inc.
(3) Annualized equals quarter amount annualized. Given the timing of the closing of the transactions with TIER, the actual calculation of this ratio was unusually high for the second quarter of 2019 and decreased once a full quarter of TIER operations was included in EBITDAre. Second quarter EBITADAre, annualized for the calculation, included 17 days of Legacy TIER operations while the total impact of the TIER transactions was included in net debt as of June 30, 2019.
(4) The fourth quarter 2016 dividend was declared and paid in the first quarter of 2017.
(5) 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
34
Q4 2019 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,
 
2019
 
2018
 
2019
 
2018
Net Income Available to Common Stockholders
$
117,112

 
$
22,360

 
$
150,418

 
$
79,164

Depreciation and amortization of real estate assets:
 
 
 
 
 
 
 
Consolidated properties
77,925

 
45,084

 
255,349

 
179,510

Share of unconsolidated joint ventures
2,602

 
3,524

 
14,158

 
13,078

Partners' share of real estate depreciation
(155
)
 
(91
)
 
(521
)
 
(302
)
(Gain) loss on sale of depreciated properties:
 
 
 
 
 
 
 
Consolidated properties
(92,680
)
 
(13
)
 
(92,578
)
 
(4,925
)
Share of unconsolidated joint ventures
10

 
14

 
15

 
29

     Non-controlling interest related to unitholders
1,388

 
322

 
1,952

 
1,345

Funds From Operations
$
106,202

 
$
71,200

 
$
328,793

 
$
267,899

TIER transaction costs
1,999

 

 
52,877

 

Funds From Operations before TIER transaction costs
$
108,201

 
$
71,200

 
$
381,670

 
$
267,899

Per Common Share — Diluted:
 
 
 
 
 
 
 
Net Income Available to Common Stockholders
$
0.80

 
$
0.21

 
$
1.17

 
$
0.75

Funds From Operations
$
0.72

 
$
0.67

 
$
2.53

 
$
2.51

Funds From Operations before TIER transaction costs
$
0.73

 
$
0.67

 
$
2.94

 
$
2.51

Weighted Average Shares — Diluted
148,534

 
106,871

 
129,831

 
106,868


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
35
Q4 2019 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS



 
Three Months Ended
 
Year Ended
Net Operating Income (in thousands)
December 31, 2019
 
December 31, 2018
 
December 31, 2019
 
December 31, 2018
 
 
 
 
 
 
 
 
Net income
$
118,568

 
$
22,751

 
$
152,683

 
$
80,765

Net operating income from unconsolidated joint ventures
6,124

 
7,245

 
32,413

 
28,888

Fee income
(5,220
)
 
(2,878
)
 
(28,518
)
 
(10,089
)
Termination fee income
(2,943
)
 
(273
)
 
(7,228
)
 
(1,548
)
Other income
(92
)
 
(161
)
 
(246
)
 
(1,722
)
Reimbursed expenses
735

 
1,025

 
4,004

 
3,782

General and administrative expenses
11,321

 
3,247

 
37,007

 
22,040

Interest expense
16,384

 
10,387

 
53,963

 
39,430

Depreciation and amortization
78,372

 
45,546

 
257,149

 
181,382

Acquisition and transaction costs
2,003

 
20

 
52,881

 
248

Other expenses
8

 
99

 
1,109

 
556

Gain on extinguishment of debt

 

 

 
(8
)
Income from unconsolidated joint ventures
(2,887
)
 
(2,051
)
 
(12,666
)
 
(12,224
)
(Gain) loss on sale of investment properties
(96,373
)
 
(525
)
 
(110,761
)
 
(5,437
)
Net Operating Income
$
126,000

 
$
84,432

 
$
431,790

 
$
326,063

 
 
 
 
 
 
 
 
Straight line rent
8,122

 
7,043

 
29,445

 
26,017

Non-cash income
4,291

 
2,558

 
14,499

 
9,890

Non-cash expense
(165
)
 
(140
)
 
(658
)
 
(747
)
Cash Basis Net Operating Income
$
113,752

 
$
74,971

 
$
388,504

 
$
290,903

 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
Same Property
$
71,999

 
$
70,984

 
$
289,194

 
$
281,745

Non-Same Property
54,001

 
13,448

 
142,596

 
44,318

 
$
126,000

 
$
84,432

 
$
431,790

 
$
326,063

 
 
 
 
 
 
 
 
Cash Basis Net Operating Income
 
 
 
 
 
 
 
Same Property
$
66,995

 
$
63,210

 
$
263,280

 
$
251,135

Non-Same Property
46,757

 
11,761

 
125,224

 
39,768

 
$
113,752

 
$
74,971

 
$
388,504

 
$
290,903

 
 
 
 
 
 
 
 

Cousins Properties
36
Q4 2019 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.
“Cash-Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements, amortization of acquired above and below market rents, and non-cash ground lease expense.
“EBITDAre is a supplemental operating performance measure used in the real estate industry. The Company calculates EBITDAre in accordance with the 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”)) plus interest expense, income tax expense, depreciation and amortization, losses (gains) on the disposition of depreciated property, and impairment losses. All additions include the Company's share of unconsolidated joint ventures. Management believes that EBITDAre provides analysts and investors with uniform and appropriate information to use in various ratios that evaluate the Company's level of debt.
“Adjusted EBITDAre represents EBITDAre plus loss on debt extinguishment and acquisition and transaction costs. Management believes that Adjusted EBITDAre 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 non-cash items, gains (losses) on undepreciated real estate sales, and transaction costs. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company's dividend policy with other real estate companies.
“Funds From Operations 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 NAREIT definition, which is net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, impairment 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.
“Net Debt” represents the Company's consolidated debt plus the Company's share of unconsolidated debt less cash and cash equivalents. The Company believes excluding cash and cash equivalents from total debt, provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts.
“Net Operating Income” ("NOI") is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Net Operating Income, which is rental property revenues less termination fees and 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.
“Second Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space in newly acquired buildings 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.


“Net Income and FFO Before Transaction Costs” represents net income and FFO before costs associated with the merger with TIER.  Management believes that Net Income and FFO Before Transaction Costs 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.




Cousins Properties
37
Q4 2019 Supplemental Information