8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 30, 2020

Cousins Properties Incorporated

(Exact name of registrant as specified in its charter)

Georgia 001-11312 58-0869052

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification Number)

3344 Peachtree Road NE, Suite 1800, Atlanta, Georgia 30326-4802

(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 407-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1 par value per share	CUZ	New York Stock Exchange	("NYSE")

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the securities Act of 1933 (§230.405 of this chapter) or Rule 12b-12 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On April 30, 2020, Cousins Properties Incorporated (the “Company”) issued a Press Release and Quarterly Information Package containing information about the Company’s financial condition and results of operations for the quarter ended March 31, 2020. A copy of the Company’s Press Release and Quarterly Information Package is attached hereto as Exhibit 99.1. The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

(a)    Exhibits

Exhibit Number        Exhibit Description

99.1 Press Release and Quarterly Information Package for the Quarter Ended March 31, 2020.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 30, 2020

COUSINS PROPERTIES INCORPORATED

By: /s/ Gregg D. Adzema

Gregg D. Adzema

Executive Vice President and Chief Financial Officer

EX-99.1

1

TABLE OF CONTENTS

Forward-Looking Statements	3
Earnings Release	4
Cousins COVID-19 Response	7
Condensed Consolidated Balance Sheets	8
Condensed Consolidated Statements of Operations	9
Key Performance Metrics	10
Funds From Operations - Summary	13
Funds From Operations - Detail	14
Portfolio Statistics	17
Same Property Performance	20
Office Leasing Activity	21
Office Lease Expirations	22
Top 20 Office Tenants	23
Tenant Industry Diversification	24
Investment Activity	25
Development Pipeline	27
Land Inventory	28
Debt Schedule	29
Joint Venture Information	32
Non-GAAP Financial Measures - Calculations and Reconciliations	33
Non-GAAP Financial Measures - Discussion	38

Cousins Properties Q1 2020 Supplemental Information

FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2019. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as the following: guidance and underlying assumptions; business and financial strategy; future debt financings; future acquisitions and dispositions of operating assets or joint venture interests; future acquisitions and dispositions of land, including ground leases; future development and redevelopment opportunities, including fee development opportunities; future issuances and repurchases of common stock; future distributions; projected capital expenditures; market and industry trends; entry into new markets; future changes in interest rates; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.

Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information that is currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following: the availability and terms of capital; the ability to refinance or repay indebtedness as it matures; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions, investments, or dispositions; the potential dilutive effect of common stock or operating partnership unit issuances; the availability of buyers and pricing with respect to the disposition of assets; changes in national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Austin, Charlotte, Phoenix, Tampa, and Dallas where we have high concentrations of our lease revenues, including the impact of high unemployment, volatility in the public equity and debt markets, and international economic and other conditions; the impact of a public health crisis, including the COVID-19 pandemic, and the governmental and third party response to such a crisis, which may affect our key personnel, our major tenants, and the costs of operating our assets; the impact of social distancing, shelter-in-place, border closings, travel restrictions, remote work requirements, and similar governmental and private measures taken to combat the spread of the COVID-19 pandemic on our operations and our tenants; changes to our strategy with regard to land and other non-core holdings that may require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, the failure of a tenant to occupy leased space, and the risk of declining leasing rates; changes in the needs of our tenants brought about by the desire for co-working arrangements, trends toward utilizing less office space per employee, and the effect of telecommuting; any adverse change in the financial condition of one or more of our tenants; volatility in interest rates and insurance rates; competition from other developers or investors; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); cyber security breaches; changes in senior management, changes in the Board of Directors, and the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements; potential changes to state, local, or federal regulations applicable to our business; material changes in the rates, or the ability to pay, dividends on common shares or other securities; potential changes to the tax laws impacting REITs and real estate in general; potential changes to the tax laws impacting REITs and real estate in general; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by the Company.

The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise, except as required under U.S. federal securities laws.

Cousins Properties 3 Q1 2020 Supplemental Information

EARNINGS RELEASE

COUSINS PROPERTIES ANNOUNCES FIRST QUARTER 2020 RESULTS

Reports April Office Rent Collections of 96%

Highlights

• Net income per share diluted was $1.18.

• Funds from operations per share was $0.76.

• Same property net operating income on a cash basis increased 11.4%.

• Second generation net rent per square foot on a cash basis increased 14.3%.

• Executed 475,783 square feet of office leases.

• Sold Hearst Tower, a 966,000 square foot office property in Charlotte, for a gross sales price of $455.5 million and recognized a gain of $90.9 million.

• Sold its interest in the Gateway Village joint venture to its venture partner for a gross sales price of $52.2 million and recognized a gain of $44.9 million. This sales price generated a 17% internal rate of return for the Company on its invested capital over the life of the venture, as stipulated in the partnership agreement.

• Sold Woodcrest, a 386,000 square foot office property in Cherry Hill, New Jersey, for a gross sales price of $25.3 million.

• Sold its remaining interest in the Wildwood Associates joint venture, which owned a 6.3 acre parcel of land in Atlanta, to its venture partner, recognizing a gain of $1.3 million on this transaction.

• Commenced development of 100 Mill, a 287,000 square foot office building in Phoenix, with a total estimated project cost of $153 million and with pre-leasing of 44%, anchored by a growing Fortune 50 tenant.

ATLANTA (April 30, 2020) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2020.

"At Cousins Properties, the health and safety of our customers and employees is our top priority. This is more important than ever as our country faces the current health crisis. We truly appreciate the efforts of the brave healthcare workers. In these challenging times, I am also proud that we have taken great care to ensure that we are staying true to our values and principles and we are giving back to our communities as well," said Colin Connolly, president and chief executive officer of Cousins Properties.

"While our first quarter results are fantastic, we are laser focused on what is to come. Cousins has planned both operationally and financially for potential disruptions, and we are well-prepared for the unprecedented change in the market. We have a diverse and financially strong customer base in our trophy portfolio in growing Sun Belt markets. Additionally, our balance sheet is exceptionally strong, with low leverage and liquidity of approximately $1.1 billion. Our $566 million development pipeline remains on time and on budget as construction continues across our markets, with 82% of the office pipeline committed.

"Our Cousins team continues to work tirelessly in all of our markets. Our essential property management and engineering teams have provided outstanding service to customers under the most difficult circumstances. I thank our entire team for their resilience and dedication to Cousins."

Cousins Properties 4 Q1 2020 Supplemental Information

EARNINGS RELEASE

Financial Results

Net income available to common stockholders was $174.9 million, or $1.18 per share, for the first quarter of 2020, compared with net income available to common stockholders of $35.3 million, or $0.34 per share, for the first quarter of 2019.

Funds From Operations ("FFO") was $112.7 million, or $0.76 per share, for the first quarter of 2020, compared with $84.5 million, or $0.79 per share, for the first quarter of 2019.

2020 Guidance

Due to uncertainty driven by the COVID-19 pandemic, the Company is withdrawing its previous 2020 earnings guidance. However, the Company is providing additional financial information, some of which is related to the effects of COVID-19 and some of which is not, to assist investors as they assess the Company’s outlook for the balance of 2020. This information reflects the Company’s current knowledge and estimates and may change as the impact of COVID-19 continues to develop. All information covers full year 2020 results.

• An elimination of all remaining speculative leasing commencements for the balance of the year may reduce net operating income by approximately $1.5 million. Although the Company continues to have discussions with potential new customers for 2020 occupancy, the certainty and timing remains fluid.

• Based on relief agreements we have completed, or are in active negotiations to complete, rent deferrals may reduce net operating income by $1 million to $3 million.

• A reduction in parking revenue may reduce net operating income by $3.5 million to $9.5 million. This is primarily due to a potential reduction in transient parking, which comprises approximately 20% of total parking revenue.

• General and administrative expenses may decrease by $3 million to $5 million due to lower long-term compensation and other potential non-compensation cost reduction measures.

• Interest and other expense, net of capitalized interest, may decrease by $2 million to $4 million primarily due to lower short-term interest rates.

• Fee and other income will increase by approximately $2 million due to a termination fee received from Parsley Energy at Colorado Tower in Austin. The Company has leased approximately 74,000 square feet of space currently occupied by Parsley to a leading global law firm. There will be a corresponding reduction of approximately $1 million in net operating income as this transition occurs.

This information does not include: 1) any incremental property operating expense increases or decreases, 2) any impacts associated with rent deferral relief agreements beyond those referenced above, and 3) any impacts associated with customer defaults, which although possible, are difficult to predict with any accuracy.

Cousins Properties 5 Q1 2020 Supplemental Information

EARNINGS RELEASE

Investor Conference Call and Webcast

The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Friday, May 1, 2020, to discuss the results of the quarter ended March 31, 2020. The number to call for this interactive teleconference is (877) 247-1056. The live webcast of this call can be accessed on the Company's website, www.cousins.com, through the “Cousins Properties First Quarter Conference Call” link on the Investor Relations page. A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10142121. The playback can also be accessed on the Company's website.

Acting through its operating partnership, Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.

Cousins Properties 6 Q1 2020 Supplemental Information

COUSINS COVID-19 RESPONSE

Cousins Properties 7 Q1 2020 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	March 31, 2020			December 31, 2019
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $633,654 and $577,139 in 2020 and 2019, respectively	$	5,740,337		$	5,669,324
Projects under development	368,414			410,097
Land	97,354			116,860
	6,206,105			6,196,281
Real estate assets and other assets held for sale, net of accumulated depreciation and amortization of $61,093 in 2019	—			360,582
Cash and cash equivalents	124,632			15,603
Restricted cash	1,947			2,005
Notes and accounts receivable	28,533			23,680
Deferred rents receivable	109,458			102,314
Investment in unconsolidated joint ventures	128,916			133,884
Intangible assets, net	240,286			257,649
Other assets	62,057			59,449
Total assets	$	6,901,934		$	7,151,447
Liabilities:
Notes payable	$	1,944,034		$	2,222,975
Accounts payable and accrued expenses	144,984			209,904
Deferred income	55,290			52,269
Intangible liabilities, net of accumulated amortization of $61,084 and $55,798 in 2020 and 2019, respectively	77,819			83,105
Other liabilities	120,809			134,128
Liabilities of real estate assets held for sale, net of accumulated amortization of $7,771 in 2019	—			21,231
Total liabilities	2,342,936			2,723,612
Commitments and contingencies
Equity:
Stockholders' investment:
Preferred stock, $1 par value, 20,000,000 shares authorized, 1,716,837 shares issued and outstanding in 2019	—			1,717
Common stock, $1 par value, 300,000,000 shares authorized, 151,124,621 and 149,347,382 shares issued in 2020 and 2019, respectively	151,125			149,347
Additional paid-in capital	5,538,875			5,493,883
Treasury stock at cost, 2,584,933 shares in 2020 and 2019	(148,473		)	(148,473		)
Distributions in excess of cumulative net income	(1,006,820		)	(1,137,200		)
Total stockholders' investment	4,534,707			4,359,274
Nonredeemable noncontrolling interests	24,291			68,561
Total equity	4,558,998			4,427,835
Total liabilities and equity	$	6,901,934		$	7,151,447

Cousins Properties 8 Q1 2020 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2020			2019
Revenues:
Rental property revenues	$	189,129		$	123,865
Fee income	4,732			8,728
Other	37			140
	193,898			132,733
Expenses:
Rental property operating expenses	64,538			43,487
Reimbursed expenses	521			932
General and administrative expenses	5,652			11,460
Interest expense	15,904			10,820
Depreciation and amortization	71,614			45,861
Transaction costs	365			3
Other	566			180
	159,160			112,743
Income from unconsolidated joint ventures	3,425			2,904
Gain on sales of investments in unconsolidated joint ventures	46,230			—
Gain on investment property transactions	90,916			13,111
Net income	175,309			36,005
Net income attributable to noncontrolling interests	(366		)	(664		)
Net income available to common stockholders	$	174,943		$	35,341
Net income per common share — basic	$	1.19		$	0.34
Net income per common share — diluted	$	1.18		$	0.34
Weighted average shares — basic	147,424			105,127
Weighted average shares — diluted	148,561			106,901

Cousins Properties 9 Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS

	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Property Statistics
Consolidated Operating Properties	23		24		33		33		34		34		32
Consolidated Rentable Square Feet (in thousands)	12,203		12,573		18,372		18,372		19,599		19,599		18,249
Unconsolidated Operating Properties	4		5		5		5		4		4		3
Unconsolidated Rentable Square Feet (in thousands)	3,113		3,394		3,394		3,394		2,168		2,168		1,107
Total Operating Properties	27		29		38		38		38		38		35
Total Rentable Square Feet (in thousands)	15,316		15,967		21,766		21,766		21,767		21,767		19,356
Office Leasing Activity (1)
Net Leased during the Period (square feet in thousands)	1,597		682		1,089		741		562		3,074		476
Net Effective Rent Calculation (per square foot)
Net Rent	$31.01		$27.86		$29.34		$33.66		$31.38		$30.43		$34.88
Net Free Rent	(0.85)		(0.49)		(0.52)		(0.64)		(1.01)		(0.63)		(1.92)
Leasing Commissions	(2.41)		(1.13)		(2.34)		(2.86)		(2.84)		(2.29)		(2.68)
Tenant Improvements	(4.40)		(1.74)		(4.69)		(3.13)		(4.89)		(3.69)		(5.27)
Leasing Costs	(7.66)		(3.36)		(7.55)		(6.63)		(8.74)		(6.61)		(9.87)
Net Effective Rent	$23.35		$24.50		$21.79		$27.03		$22.64		$23.82		$25.01
Change in Second Generation Net Rent	32.5	%	22.8	%	21.5	%	17.2	%	25.5	%	21.3	%	26.9	%
Change in Cash-Basis Second Generation Net Rent	13.2	%	7.1	%	4.9	%	8.1	%	12.6	%	7.7	%	14.3	%
Same Property Information (2)
Percent Leased (period end)	94.5	%	94.4	%	93.9	%	93.7	%	94.6	%	94.6	%	94.8	%
Weighted Average Occupancy	91.9	%	92.0	%	91.8	%	90.9	%	91.1	%	91.8	%	91.4	%
Change in Net Operating Income (over prior year period)	2.1	%	4.3	%	4.5	%	0.3	%	1.4	%	2.6	%	3.2	%
Change in Cash-Basis Net Operating Income (over prior year period)	4.7	%	4.0	%	5.5	%	2.9	%	6.0	%	4.8	%	11.4	%
Development Pipeline (3)
Estimated Project Costs (in thousands)	$245,900		$199,900		$427,900		$427,900		$565,600		$565,600		$565,600
Estimated Project Costs/ Total Undepreciated Assets	4.7	%	3.8	%	5.5	%	5.4	%	6.9	%	6.9	%	7.1	%
Market Capitalization (4)
Common Stock Price (period end)	$31.60		$38.64		$36.17		$37.59		$41.20		$41.20		$29.27
Common Stock/Units Outstanding (period end in thousands)	106,840		106,890		148,507		148,506		148,506		148,506		148,565
Equity Market Capitalization (in thousands)	$3,376,144		$4,130,230		$5,371,498		$5,582,341		$6,118,447		$6,118,447		$4,348,498
Debt (in thousands)	1,234,016		1,287,164		2,007,663		2,023,136		2,305,494		2,305,494		2,036,955
Total Market Capitalization (in thousands)	$4,610,152		$5,417,403		$7,379,161		$7,605,477		$8,423,941		$8,423,941		$6,385,453

Cousins Properties 10 Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS

	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Credit Ratios (4)
Net Debt/Total Market Capitalization	26.5	%	23.4	%	26.8	%	26.2	%	27.1	%	27.1	%	29.8	%
Net Debt/Total Undepreciated Assets	24.0	%	24.1	%	25.5	%	25.2	%	27.8	%	27.8	%	24.0	%
Net Debt/Annualized Adjusted EBITDAre (5)	3.64		3.26		5.15		4.02		4.55		4.55		3.66
Fixed Charges Coverage (Adjusted EBITDAre)	5.46		6.08		5.58		6.21		5.91		5.95		6.22
Dividend Information (4)
Common Dividend per Share	$1.04		$0.29		$0.29		$0.29		$0.29		$1.16		$0.30
Funds From Operations (FFO) Payout Ratio before Transaction Costs	40.8	%	36.1	%	52.1	%	39.7	%	39.3	%	41.4	%	39.4	%
Funds Available for Distribution (FAD) Payout Ratio	61.2	%	56.4	%	131.6	%	53.9	%	60.8	%	67.2	%	59.8	%
Operations Ratio (4)
Annualized General and Administrative Expenses/Total Undepreciated Assets	0.43	%	0.87	%	0.43	%	0.30	%	0.55	%	0.45	%	0.28	%
Additional Information (4) (in thousands, except per square foot amounts)
In-Place Gross Rent (per square foot) (6)	$36.41		$36.95		$36.98		$37.26		$37.44		$37.44		$39.29
Straight Line Rental Revenue	$26,017		$8,732		$6,068		$6,522		$8,123		$29,445		$9,895
Above and Below Market Rents Amortization	$6,877		$1,670		$1,981		$3,042		$2,846		$9,539		$2,808
Second Generation Capital Expenditures	$56,667		$8,074		$40,604		$18,946		$23,085		$90,709		$23,817

(1) See Office Leasing Activity on page 21 for additional detail and explanations.

(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 20 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 37 for additional information.

(3) Cousins' share of estimated project costs. See Development Pipeline on page 27 for additional detail.

(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 33.

(5) Given the timing of the closing of the TIER transaction, the actual calculation of this ratio was temporarily high for the second quarter of 2019 and decreased when a full quarter of TIER operations were included in EBITDAre. Second quarter EBITDAre, annualized for the calculation, included 17 days of Legacy TIER operations while the total impact of the TIER transaction was included in net debt as of June 30, 2019.

(6) In-place gross rent equals the annualized cash basis base rent including tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.

Cousins Properties 11 Q1 2020 Supplemental Information

KEY PERFORMANCE METRICS

(1) Office properties only.

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

Cousins Properties 12 Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

	(amounts in thousands, except per share amounts)
	2018			2019 1st			2019 2nd			2019 3rd			2019 4th			2019			2020 1st
Net Operating Income	$	326,063		$	87,731		$	97,417		$	120,642		$	126,000		$	431,790		$	127,782
Gain on Sales of Undepreciated Investment Properties	3,291			13,132			1,337			21			3,692			18,182			1,335
Fee Income	10,089			8,728			7,075			7,495			5,220			28,518			4,732
Other Income	3,678			748			306			3,671			3,136			7,861			2,994
Reimbursed Expenses	(3,782		)	(932		)	(1,047		)	(1,290		)	(735		)	(4,004		)	(521		)
General and Administrative Expenses	(22,040		)	(11,460		)	(8,374		)	(5,852		)	(11,321		)	(37,007		)	(5,652		)
Interest Expense	(45,886		)	(12,574		)	(13,692		)	(16,377		)	(17,058		)	(59,701		)	(16,554		)
Other Expenses	(1,642		)	(404		)	(50,699		)	(1,658		)	(2,286		)	(55,047		)	(1,188		)
Depreciation and Amortization of Non-Real Estate Assets	(1,872		)	(456		)	(454		)	(443		)	(446		)	(1,799		)	(207		)
FFO (1)	$	267,899		$	84,513		$	31,869		$	106,209		$	106,202		$	328,793		$	112,721
TIER transaction costs	—			3			49,827			1,048			1,999			52,877			365
FFO before TIER transaction costs	$	267,899		$	84,516		$	81,696		$	107,257		$	108,201		$	381,670		$	113,086
Weighted Average Shares - Diluted	106,868			106,901			114,670			148,530			148,534			129,831			148,561
FFO per Share (1)	$	2.51		$	0.79		$	0.28		$	0.72		$	0.72		$	2.53		$	0.76
FFO per Share before TIER transaction costs	$	2.51		$	0.79		$	0.71		$	0.72		$	0.73		$	2.94		$	0.76

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

Cousins Properties 13 Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	(amounts in thousands, except per share amounts)
	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Net Operating Income
Consolidated Properties
The Domain (2)	$	—	$	—	$	1,881	$	8,926	$	9,138	$	19,945	$	9,068
Spring & 8th (2)	21,450		7,218		7,385		7,392		7,374		29,369		7,351
Terminus (2) (3)	—		—		—		—		7,330		7,330		6,949
Northpark (2)	24,418		6,463		6,039		6,521		6,249		25,272		6,916
Hayden Ferry (2)	23,465		5,945		6,154		5,721		6,118		23,938		6,321
Corporate Center (2)	23,946		6,386		6,785		6,619		6,694		26,484		6,157
Bank of America Plaza	—		—		933		5,103		4,569		10,605		5,323
3344 Peachtree	12,182		3,142		3,328		3,345		3,488		13,303		5,267
BriarLake Plaza (2)	—		—		852		4,623		4,742		10,217		4,681
Fifth Third Center	19,130		4,735		4,503		4,408		4,347		17,993		4,573
Promenade	16,502		4,788		4,708		4,353		4,510		18,359		4,506
One Eleven Congress	16,218		4,446		4,515		4,203		4,215		17,379		4,396
The Terrace (2)	—		—		749		3,617		3,945		8,311		3,988
Burnett Plaza	—		—		710		3,556		3,963		8,229		3,631
Buckhead Plaza (2)	16,851		4,047		3,968		3,765		3,299		15,079		3,617
San Jacinto Center	14,652		3,665		3,679		3,637		3,612		14,593		3,617
Colorado Tower	13,773		3,480		3,483		3,502		3,526		13,991		3,350
NASCAR Plaza	10,334		2,538		2,494		2,586		2,682		10,300		2,750
816 Congress	11,656		3,290		2,879		2,969		2,709		11,847		2,636
3350 Peachtree	7,633		2,011		2,345		2,329		2,272		8,957		2,450
Legacy Union One	—		—		450		2,360		2,347		5,157		2,400
1200 Peachtree	—		775		2,318		2,332		2,266		7,691		2,332
Tempe Gateway	7,934		2,165		1,757		1,785		2,043		7,750		2,084
8000 Avalon	5,432		1,714		1,916		1,899		1,879		7,408		1,759
3348 Peachtree	5,720		1,527		1,499		1,598		1,543		6,167		1,502
111 West Rio	5,477		1,381		1,380		1,407		1,391		5,559		1,388
5950 Sherry Lane	—		—		220		1,056		1,040		2,316		1,239
The Pointe	4,815		1,255		1,235		1,260		1,339		5,089		1,192
Domain Point (2)	—		—		348		1,571		1,139		3,058		1,187
Meridian Mark Plaza	3,849		1,018		1,163		1,104		1,085		4,370		1,067
Research Park V	4,066		1,031		1,023		1,006		1,027		4,087		1,029
Harborview Plaza	1,753		346		553		431		683		2,013		795
Other (4)	25,919		6,492		6,786		6,621		7,312		27,211		6,226
Subtotal - Consolidated	297,175		79,858		88,038		111,605		119,876		399,377		121,747

Cousins Properties 14 Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	(amounts in thousands, except per share amounts)
	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Unconsolidated Properties (5)
Dimensional Place	—		206		1,770		1,912		1,873		5,761		1,900
Carolina Square (2)	3,823		1,097		1,053		1,009		1,208		4,367		1,255
Emory University Hospital Midtown	4,024		1,027		1,036		1,072		1,104		4,239		1,078
Terminus (2) (3)	13,501		3,670		3,662		3,216		—		10,548		—
Other (4)	7,540		1,873		1,858		1,828		1,939		7,498		1,802
Subtotal - Unconsolidated	28,888		7,873		9,379		9,037		6,124		32,413		6,035
Total Net Operating Income (1)	326,063		87,731		97,417		120,642		126,000		431,790		127,782
Gain on Sales of Undepreciated Investment Properties
Sales Less Cost of Sales - Consolidated	512		13,132		1,337		21		3,692		18,182		—
Sales Less Cost of Sales - Unconsolidated (5)	2,779		—		—		—		—		—		1,335
Total Gain on Sales of Undepreciated Investment Properties	3,291		13,132		1,337		21		3,692		18,182		1,335
Fee Income
Development Fees	2,935		7,022		5,112		5,670		4,254		22,058		3,835
Management Fees (6)	5,911		1,379		1,548		1,824		966		5,717		762
Leasing & Other Fees	1,243		327		415		1		—		743		135
Total Fee Income	10,089		8,728		7,075		7,495		5,220		28,518		4,732
Other Income
Termination Fees	1,548		520		190		3,575		2,942		7,227		2,844
Termination Fees - Unconsolidated (5)	—		3		4		9		—		16		1
Interest and Other Income	1,722		140		11		3		92		246		37
Interest and Other Income - Unconsolidated (5)	315		85		101		84		102		372		112
Gain on Extinguishment of Debt	93		—		—		—		—		—		—
Total Other Income	3,678		748		306		3,671		3,136		7,861		2,994
Total Fee and Other Income	13,767		9,476		7,381		11,166		8,356		36,379		7,726
Reimbursed Expenses	(3,782	)	(932	)	(1,047	)	(1,290	)	(735	)	(4,004	)	(521	)
General and Administrative Expenses	(22,040	)	(11,460	)	(8,374	)	(5,852	)	(11,321	)	(37,007	)	(5,652	)
Interest Expense
Consolidated Debt
Credit Facility, Unsecured	(3,023	)	(1,289	)	(1,705	)	(1,628	)	(2,703	)	(7,325	)	(3,081	)
2019 Senior Notes, Unsecured ($275M)	—		—		(366	)	(2,744	)	(2,743	)	(5,853	)	(2,744	)
2017 Senior Notes, Unsecured ($250M)	(9,958	)	(2,490	)	(2,489	)	(2,490	)	(2,489	)	(9,958	)	(2,489	)
2019 Senior Notes, Unsecured ($250M)	—		—		(326	)	(2,440	)	(2,441	)	(5,207	)	(2,441	)
Term Loan, Unsecured	(8,495	)	(2,422	)	(2,421	)	(2,302	)	(2,049	)	(9,194	)	(1,891	)
Terminus (2) (3)	—		—		—		—		(1,540	)	(1,540	)	(1,526	)
2019 Senior Notes, Unsecured ($125M)	—		—		(160	)	(1,197	)	(1,197	)	(2,554	)	(1,197	)
Fifth Third Center	(4,951	)	(1,221	)	(1,215	)	(1,208	)	(1,202	)	(4,846	)	(1,194	)
2017 Senior Notes, Unsecured ($100M)	(4,145	)	(1,036	)	(1,037	)	(1,036	)	(1,036	)	(4,145	)	(1,036	)
Promenade	(4,360	)	(1,069	)	(1,060	)	(1,052	)	(1,043	)	(4,224	)	(1,034	)
Colorado Tower	(4,233	)	(1,051	)	(1,046	)	(1,040	)	(1,036	)	(4,173	)	(1,030	)

Cousins Properties 15 Q1 2020 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	(amounts in thousands, except per share amounts)
	2018			2019 1st			2019 2nd			2019 3rd			2019 4th			2019			2020 1st
816 Congress	(3,173		)	(784		)	(779		)	(776		)	(772		)	(3,111		)	(768		)
Legacy Union One	—			—			(98		)	(536		)	(535		)	(1,169		)	(528		)
Other (4)	(1,994		)	(473		)	(473		)	(469		)	(468		)	(1,883		)	(254		)
Capitalized (7)	4,902			1,015			1,116			4,218			4,870			11,219			5,309
Subtotal - Consolidated	(39,430		)	(10,820		)	(12,059		)	(14,700		)	(16,384		)	(53,963		)	(15,904		)
Unconsolidated Debt (5)
Terminus (2) (3)	(3,976		)	(1,038		)	(905		)	(961		)	—			(2,904		)	—
Carolina Square (2)	(1,223		)	(406		)	(420		)	(409		)	(370		)	(1,605		)	(347		)
Emory University Hospital Midtown	(1,257		)	(310		)	(308		)	(307		)	(304		)	(1,229		)	(303		)
Subtotal - Unconsolidated	(6,456		)	(1,754		)	(1,633		)	(1,677		)	(674		)	(5,738		)	(650		)
Total Interest Expense	(45,886		)	(12,574		)	(13,692		)	(16,377		)	(17,058		)	(59,701		)	(16,554		)
Other Expenses
Severance	(60		)	(23		)	(23		)	(84		)	(24		)	(154		)	(51		)
Partners' Share of FFO in Consolidated Joint Ventures	(558		)	(171		)	(192		)	(249		)	(221		)	(833		)	(213		)
Property Taxes and Other Holding Costs	(583		)	(184		)	(209		)	(392		)	(290		)	(1,075		)	(356		)
Loss on Extinguishment of Debt	(85		)	—			—			—			—			—			—
Income Tax Expense	—			—			(242		)	242			298			298			(50		)
Predevelopment & Other Costs	(108		)	(23		)	(206		)	(127		)	(46		)	(402		)	(153		)
Transaction Costs - TIER	—			(3		)	(49,827		)	(1,048		)	(1,999		)	(52,877		)	(365		)
Transaction/Acquisition Costs - Other	(248		)	—			—			—			(4		)	(4		)	—
Total Other Expenses	(1,642		)	(404		)	(50,699		)	(1,658		)	(2,286		)	(55,047		)	(1,188		)
Depreciation and Amortization of Non-Real Estate Assets	(1,872		)	(456		)	(454		)	(443		)	(446		)	(1,799		)	(207		)
FFO (1)	$	267,899		$	84,513		$	31,869		$	106,209		$	106,202		$	328,793		$	112,721
TIER transaction costs	—			3			49,827			1,048			1,999			52,877			365
FFO before TIER transaction costs	$	267,899		$	84,516		$	81,696		$	107,257		$	108,201		$	381,670		$	113,086
Weighted Average Shares - Diluted	106,868			106,901			114,670			148,530			148,534			129,831			148,561
FFO per Share (1)	$	2.51		$	0.79		$	0.28		$	0.72		$	0.72		$	2.53		$	0.76
FFO per Share before TIER transaction costs	$	2.51		$	0.79		$	0.71		$	0.72		$	0.73		$	2.94		$	0.76

Note: Amounts may differ slightly from other schedules contained herein due to rounding.

(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 33.

(2) Contains multiple buildings that are grouped together for reporting purposes.

(3) On October 1, 2019, the Company purchased its partner's 50% interest in Terminus Office Holdings LLC.

(4) Primarily represents properties sold and loans repaid prior to March 31, 2020 that are not considered discontinued operations. The Company sold the Hearst Tower and Woodcrest operating properties and its interest in the Gateway Village
unconsolidated joint venture in the first quarter of 2020. Includes preliminary operational activity at 120 West Trinity and 10000 Avalon, which are in the final stages of development.

(5) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but
believes including these amounts in the categories indicated is meaningful to investors and analysts.

(6) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.

(7) Amounts of interest expense related to consolidated debt that is capitalized to consolidated development projects and equity in unconsolidated development projects.

Cousins Properties 16 Q1 2020 Supplemental Information

PORTFOLIO STATISTICS

Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased		Weighted Average Occupancy (1)		% of Total Net Operating Income (2)	Property Level Debt ($000) (3)
				1Q20	4Q19	1Q20	4Q19
Spring & 8th (4)	765,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	6.1%	$	—
Terminus (4) (5)	1,226,000	Consolidated	100%	83.5%	83.3%	78.2%	78.8%	5.8%	201,376
Northpark (4)	1,539,000	Consolidated	100%	93.1%	92.8%	88.5%	85.7%	5.8%	—
3344 Peachtree	484,000	Consolidated	100%	97.1%	94.2%	86.4%	89.3%	4.4%	—
Promenade	777,000	Consolidated	100%	90.5%	90.5%	89.6%	89.6%	3.8%	95,005
Buckhead Plaza (4)	667,000	Consolidated	100%	77.5%	75.6%	72.6%	73.9%	3.0%	—
3350 Peachtree	413,000	Consolidated	100%	95.2%	95.2%	95.2%	95.0%	2.0%	—
1200 Peachtree (5)	370,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.9%	—
8000 Avalon	229,000	Consolidated	90%	100.0%	100.0%	100.0%	100.0%	1.6%	—
3348 Peachtree	258,000	Consolidated	100%	92.3%	92.3%	91.7%	92.1%	1.3%	—
Emory University Hospital Midtown	358,000	Unconsolidated	50%	98.3%	99.1%	97.7%	98.5%	0.9%	33,771
Meridian Mark Plaza	160,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	0.9%	—
ATLANTA	7,246,000			91.6%	91.2%	88.4%	88.2%	37.5%	330,152
The Domain (4) (5)	1,287,000	Consolidated	100%	99.7%	99.7%	89.3%	89.2%	7.6%	—
One Eleven Congress	519,000	Consolidated	100%	95.0%	97.1%	88.8%	88.3%	3.7%	—
The Terrace (4) (5)	619,000	Consolidated	100%	89.9%	89.9%	86.6%	88.5%	3.3%	—
San Jacinto Center	399,000	Consolidated	100%	96.2%	97.9%	87.8%	89.9%	3.0%	—
Colorado Tower	373,000	Consolidated	100%	97.8%	100.0%	98.7%	100.0%	2.8%	115,868
816 Congress	435,000	Consolidated	100%	90.2%	88.8%	86.3%	88.8%	2.2%	79,177
Domain Point (4) (5)	243,000	Consolidated	96.5%	90.6%	88.1%	76.8%	79.6%	1.0%	—
Research Park V	173,000	Consolidated	100%	97.1%	97.1%	97.1%	97.1%	0.9%	—
AUSTIN	4,048,000			95.4%	95.8%	88.8%	89.8%	24.5%	195,045
Bank of America Plaza (5)	891,000	Consolidated	100%	85.6%	90.4%	90.3%	88.4%	4.4%	—
Fifth Third Center	692,000	Consolidated	100%	99.8%	96.2%	96.2%	92.6%	3.8%	139,091
NASCAR Plaza	394,000	Consolidated	100%	100.0%	100.0%	99.3%	98.4%	2.3%	—
Dimensional Place (5)	281,000	Unconsolidated	50%	95.6%	95.6%	94.7%	94.7%	1.6%	—
CHARLOTTE	2,258,000			93.6%	94.4%	94.2%	92.1%	12.1%	139,091
Hayden Ferry (4)	789,000	Consolidated	100%	97.8%	97.8%	93.5%	92.8%	5.3%	—
Tempe Gateway	264,000	Consolidated	100%	94.8%	94.8%	94.8%	94.8%	1.7%	—
111 West Rio	225,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.2%	—
PHOENIX	1,278,000			97.6%	97.6%	94.9%	94.5%	8.2%	—
Corporate Center (4)	1,226,000	Consolidated	100%	97.9%	98.6%	93.2%	96.3%	5.1%	—
The Pointe	253,000	Consolidated	100%	94.4%	94.9%	93.4%	96.1%	1.0%	—
Harborview Plaza	205,000	Consolidated	100%	80.0%	80.0%	79.1%	62.8%	0.7%	—
TAMPA	1,684,000			95.2%	95.7%	91.5%	92.2%	6.8%	—

Cousins Properties 17 Q1 2020 Supplemental Information

PORTFOLIO STATISTICS

Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased		Weighted Average Occupancy (1)		% of Total Net Operating Income (2)	Property Level Debt ($000) (3)
				1Q20	4Q19	1Q20	4Q19
Legacy Union One (5)	319,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	2.0%	67,976
5950 Sherry Lane (5)	197,000	Consolidated	100%	93.1%	90.3%	88.7%	83.5%	1.0%	—
DALLAS	516,000			97.4%	96.3%	95.7%	93.7%	3.0%	67,976
BriarLake Plaza - Houston (4) (5)	835,000	Consolidated	100%	89.2%	89.2%	88.3%	88.0%	3.9%	—
Burnett Plaza - Fort Worth (5)	1,023,000	Consolidated	100%	87.6%	86.4%	86.6%	86.4%	3.0%	—
Carolina Square - Chapel Hill	158,000	Unconsolidated	50%	93.3%	93.4%	79.5%	79.5%	0.3%	12,842
OTHER OFFICE	2,016,000			88.6%	87.9%	87.1%	86.8%	7.2%	12,842
TOTAL OFFICE	19,046,000			93.3%	93.2%	89.9%	89.8%	99.3%	$	745,106
Other Properties
Carolina Square Apartment - Chapel Hill (246 units)	266,000	Unconsolidated	50%	100.0%	99.6%	99.9%	99.6%	0.6%	21,619
Carolina Square Retail - Chapel Hill	44,000	Unconsolidated	50%	89.8%	89.3%	89.8%	89.3%	0.1%	3,576
TOTAL OTHER	310,000			98.6%	98.1%	98.4%	98.1%	0.7%	$	25,195
TOTAL	19,356,000			93.3%	93.2%	90.0%	89.9%	100.0%	$	770,301
See next page for footnotes

Cousins Properties 18 Q1 2020 Supplemental Information

PORTFOLIO STATISTICS

(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 March 31, 2020.
(3	)	The Company's share of property specific mortgage debt, including premiums and net of unamortized loan costs, as of March 31, 2020.
(4	)	Contains two or more buildings that are grouped together for reporting purposes.
(5	)	Not included in Same Property as of March 31, 2020.

Cousins Properties 19 Q1 2020 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

	Net Operating Income ($ in thousands)
	Three Months Ended March 31,
	2020			2019			% Change
Rental Property Revenues (2)	$	115,251		$	115,042		0.2	%
Rental Property Operating Expenses (2)	39,073			41,195			(5.2	)%
Same Property Net Operating Income	$	76,178		$	73,847		3.2	%
Cash-Basis Rental Property Revenues (3)	$	109,999		$	104,832		4.9	%
Cash-Basis Rental Property Operating Expenses (4)	38,907			41,030			(5.2	)%
Cash-Basis Same Property Net Operating Income	$	71,092		$	63,802		11.4	%
End of Period Leased	94.8		%	94.5		%
Weighted Average Occupancy	91.4		%	92.0		%

(1)	Same Properties include those office properties that were fully operational in each of the comparable reporting periods. See Portfolio Statistics beginning on page 17 for footnotes indicating which properties are not included in Same Property. See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 33.
(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 20 Q1 2020 Supplemental Information

OFFICE LEASING ACTIVITY(1)

	Three Months Ended March 31, 2020
	New			Renewal			Expansion			Total
Gross leased (square feet)										632,090
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(156,307		)
Net leased (square feet)	249,494			130,322			95,967			475,783
Number of transactions	14			17			8			39
Lease term (years) (2)	8.4			5.5			7.8			7.5
Net Effective Rent Calculation (per square foot per year) (2)
Net annualized rent (3)	$	39.35		$	29.99		$	29.88		$	34.88
Net free rent	(2.64		)	(1.42		)	(0.73		)	(1.92		)
Leasing commissions	(2.86		)	(2.62		)	(2.32		)	(2.68		)
Tenant improvements	(6.83		)	(2.35		)	(5.16		)	(5.27		)
Leasing Costs	(12.33		)	(6.39		)	(8.21		)	(9.87		)
Net effective rent	$	27.02		$	23.60		$	21.67		$	25.01
Second generation leased square footage (4)(5)										245,802
Increase in second generation net rent per square foot (2)(3)(4)(5)										26.9		%
Increase in cash-basis second generation net rent per square foot (2)(4)(5)										14.3		%
(1) Office leasing activity is comprised of total square feet leased, unadjusted for ownership share, and excluding apartment and retail leasing.
(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 21 Q1 2020 Supplemental Information

OFFICE LEASE EXPIRATIONS

Lease Expirations by Year (1)

Year of Expiration	Square Feet Expiring	% of Leased Space		Annual Contractual Rent (in thousands) (2)		% of Annual Contractual Rent		Annual Contractual Rent/Sq. Ft.
2020	1,065,756	6.1	%	$	35,008	4.5	%	$	32.85
2021	2,027,468	11.6	%	76,511		9.8	%	37.74
2022	1,313,119	7.5	%	55,406		7.1	%	42.19
2023	1,734,101	9.9	%	72,322		9.2	%	41.71
2024	1,107,943	6.3	%	46,988		6.0	%	42.41
2025	1,979,304	11.3	%	89,746		11.5	%	45.34
2026	1,511,826	8.6	%	70,392		9.0	%	46.56
2027	1,502,737	8.6	%	63,513		8.1	%	42.27
2028	1,242,532	7.1	%	56,702		7.3	%	45.63
2029 &Thereafter	4,003,913	23.0	%	214,895		27.5	%	53.67
Total	17,488,699	100.0	%	$	781,483	100.0	%	$	44.69

(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 22 Q1 2020 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	NCR Corporation	1	1	762,090	$	35,578,695	5.4%	13
2	Amazon	4	3	430,099	20,315,885		3.1%	5
3	Bank of America	4	1	616,423	18,019,916		2.7%	3
4	Expedia, Inc.	1	1	296,955	13,893,857		2.1%	9
5	Norfolk Southern Corporation	2	1	394,621	9,701,740		1.5%	2
6	Apache Corporation	1	1	210,012	9,048,341		1.4%	5
7	Americredit Financial Services (dba GM Financial)	2	2	333,782	8,804,286		1.3%	10
8	Parsley Energy, L.P.	1	1	135,107	8,569,405		1.3%	5
9	Wells Fargo Bank, NA	4	3	198,376	8,469,674		1.3%	6
10	Ovintiv USA Inc. (fka Encana Oil & Gas (USA) Inc.) (3)	1	1	318,582	7,831,964		1.2%	7
11	ADP, LLC	1	1	225,000	7,561,812		1.2%	8
12	Westrock Shared Services, LLC	1	1	205,185	6,789,331		1.1%	10
13	McGuirewoods LLP	3	3	197,282	6,762,058		1.0%	6
14	Dimensional Fund Advisors LP	1	1	132,434	6,760,473		1.0%	14
15	Samsung Engineering America	1	1	133,860	6,019,230		0.9%	7
16	Anthem	1	1	198,834	6,012,164		0.9%	1
17	Regus Equity Business Centers, LLC	6	4	146,852	5,967,803		0.9%	5
18	Morgan Stanley	2	2	130,863	5,662,738		0.9%	8
19	General Services Administration	3	3	220,600	5,613,079		0.9%	3
20	OneTrust LLC	1	1	175,833	5,591,435		0.9%	5
	Total			5,462,790	$	202,973,886	31.0%	9
(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.
(3)	Ovintiv USA Inc. has multiple subleases for substantially all of its space. In the event of termination of the Ovintiv lease, such subleases would become direct leases with Cousins.
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 23 Q1 2020 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION

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

(1) Several of our Energy & Utilities tenants have entered into subleases with unaffiliated parties for large portions of their space. In the event of lease terminations, generally such subleases would become direct leases with the Company, although the lease term and rent due under such subleases may differ from the prime lease. In addition, in April 2020, one of our larger energy tenants executed a partial termination, and the Company released the surrendered space to a legal tenant. After considering these subleases and this April 2020 activity, the portion of our rent from Energy & Utilities tenants is reduced to 3.7%. Note that the chart above has not been adjusted to reflect the various industry sectors of such subtenants or the change from this April 2020 activity.

Cousins Properties 24 Q1 2020 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%	1Q	370,000		$	82,000
TIER REIT, Inc.	Office	Various	Various	2Q	5,799,000		(2		)
Terminus (3)	Office	Atlanta	100%	4Q	1,226,000		246,000
2017
111 West Rio (4)	Office	Phoenix	100%	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%	4Q	(6	)	279,100
					16,439,000		$	626,700

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%	1Q	281,000	96,000
2018
Spring & 8th	Office	Atlanta	100%	1Q/4Q	765,000	332,500
2017
8000 Avalon	Office	Atlanta	90%	2Q	229,000	73,000
Carolina Square	Mixed	Chapel Hill	50%	3Q	468,000	123,000
2015
Colorado Tower	Office	Austin	100%	1Q	373,000	126,100
Emory Point - Phase II	Mixed	Atlanta	75%	3Q	302,000	75,400
Research Park V	Office	Austin	100%	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 reductions for existing mortgage debt.

(4) Purchased outside interest of 25.4% in 111 West Rio.

(5) Properties acquired in the merger with Parkway Properties, Inc.

(6) Purchased the outside interest (approximately 70%) in a consolidated partnership for $279.1 million.

Cousins Properties 25 Q1 2020 Supplemental Information

INVESTMENT ACTIVITY

Completed Property Dispositions

Property	Type	Market	Company's Ownership Interest	Timing	Square Feet	Gross Sales Price ($ in thousands) (1)
2020
Hearst Tower	Office	Charlotte	100%	1Q	966,000	$	455,500
Gateway Village (2)	Office	Charlotte	50%	1Q	1,061,000	52,200
Woodcrest	Office	Cherry Hill	100%	1Q	386,000	25,300
2017
Emory Point I and II	Mixed	Atlanta	75%	2Q	786,000	199,000
American Cancer Society Center	Office	Atlanta	100%	2Q	996,000	166,000
Bank of America Center, One Orlando  ---Centre, and Citrus Center	Office	Orlando	100%	4Q	1,038,000	208,100
Courvoisier Centre (3)	Office	Miami	20%	4Q	343,000	33,900
2016
100 North Point Center East	Office	Atlanta	100%	1Q	129,000	22,000
Post Oak Central and Greenway Plaza (4)	Office	Houston	100%	4Q	5,628,000	—
Two Liberty Place	Office	Philadelphia	100%	4Q	941,000	219,000
191 Peachtree	Office	Atlanta	100%	4Q	1,225,000	267,500
Lincoln Place	Office	Miami	100%	4Q	140,000	80,000
The Forum	Office	Atlanta	100%	4Q	220,000	70,000
2015
2100 Ross	Office	Dallas	100%	3Q	844,000	131,000
200, 333, and 555 North Point Center East	Office	Atlanta	100%	4Q	411,000	70,300
The Points at Waterview	Office	Dallas	100%	4Q	203,000	26,800
					15,317,000	$	2,026,600

(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 interest in the joint venture to its partner for $52.2 million. The proceeds represent a 17% internal rate of return for the Company on its invested capital, as stipulated in the partnership agreement.

(3) 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.

(4) After the merger with Parkway Properties, Inc., these properties were spun off in a related transaction to Parkway, Inc.

Cousins Properties 26 Q1 2020 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 Revenue Recognition (3)	Estimated Stabilization (4)
120 West Trinity	Mixed	Atlanta	20	%	1Q17		$	85,000	$	17,000	$	80,507	$	16,101
Office						33,000									100	%	2Q20	3Q20
Retail						19,000									12	%	3Q20	4Q20
Apartments						330									31	%	4Q19	4Q20
10000 Avalon	Office	Atlanta	90	%	3Q18	251,000	96,000		86,400		92,260		83,034		75	%	1Q20	1Q21
300 Colorado (5)	Office	Austin	50	%	4Q18	358,000	193,000		96,500		133,759		66,880		87	%	1Q21	1Q22
Domain 10	Office	Austin	100	%	4Q18	300,000	111,000		111,000		80,265		80,265		98	%	4Q20	3Q21
Domain 12	Office	Austin	100	%	2Q18	320,000	117,000		117,000		88,160		88,160		100	%	2Q20	3Q20
100 Mill	Office	Phoenix	90	%	1Q20	287,000	153,000		137,700		34,181		30,763		44	%	1Q22	1Q23
Total							$	755,000	$	565,600	$	509,132	$	365,203

(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 revenue recognition represents the quarter within which the Company estimates it will begin recognizing revenue under GAAP.
(4)	Estimated stabilization is the quarter within which the Company estimates it will achieve 90% economic occupancy. 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)	300 Colorado estimated project cost will be funded with a combination of $67 million of equity contributed by the joint venture partners, followed by a $126 million construction loan.

Cousins Properties 27 Q1 2020 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)	Atlanta	Commercial	100%	1.0
The Avenue Forsyth-Adjacent Land	Atlanta	Commercial	100%	10.4
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 (2)	Tampa	Commercial	100%	14.1
Padre Island	Corpus Christi	Residential	50%	15.0
Total				60.0	$	119,154
Company's Share				51.4	$	110,150

(1)	As of March 31, 2020, included two ground leases with future obligations to purchase. In April 2020, the Company purchased one of the two ground leased parcels.
(2)	Corporate Center 5 is controlled through a long-term ground lease.

Cousins Properties 28 Q1 2020 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
Term Loan, Unsecured (LIBOR + 1.20%-1.70%) (1)	100%	2.19%	12/2/21	—			250,000			—			—			—			—			250,000			(673		)	—		249,327
Credit Facility, Unsecured (LIBOR + 1.05%-1.45%) (2)	100%	2.04%	1/3/23	—			—			—			—			—			—			—			—			—		—
Total Floating Rate Debt				—			250,000			—			—			—			—			250,000			(673		)	—		249,327
Consolidated Debt - Fixed Rate
2019 Senior Notes, Unsecured	100%	3.95%	7/6/29	—			—			—			—			—			275,000			275,000			(1,039		)	—		273,961
2017 Senior Notes, Unsecured	100%	3.91%	7/6/25	—			—			—			—			—			250,000			250,000			(961		)	—		249,039
2019 Senior Notes, Unsecured	100%	3.86%	7/6/28	—			—			—			—			—			250,000			250,000			(936		)	—		249,064
Fifth Third Center	100%	3.37%	10/1/26	2,465			3,386			3,502			3,622			3,746			122,802			139,522			(431		)	—		139,091
2019 Senior Notes, Unsecured	100%	3.78%	7/6/27	—			—			—			—			—			125,000			125,000			(463		)	—		124,537
Terminus 100	100%	5.25%	1/1/23	2,378			3,319			3,497			108,181			—			—			117,375			—			6,577		123,952
Colorado Tower	100%	3.45%	9/1/26	1,826			2,510			2,598			2,689			2,783			104,080			116,486			(618		)	—		115,868
2017 Senior Notes, Unsecured	100%	4.09%	7/6/27	—			—			—			—			—			100,000			100,000			(387		)	—		99,613
Promenade	100%	4.27%	10/1/22	2,559			3,541			89,052			—			—			—			95,152			(147		)	—		95,005
816 Congress	100%	3.75%	11/1/24	1,322			1,821			1,891			1,963			72,558			—			79,554			(377		)	—		79,177
Terminus 200	100%	3.79%	1/1/23	1,301			1,791			1,861			70,700			—			—			75,654			—			1,770		77,424
Legacy Union One	100%	4.24%	1/1/23	—			—			—			66,000			—			—			66,000			—			1,976		67,976
Total Fixed Rate Debt				11,851			16,368			102,401			253,155			79,087			1,226,882			1,689,743			(5,359		)	10,323		1,694,707
Total Consolidated Debt				11,851			266,368			102,401			253,155			79,087			1,226,882			1,939,743			(6,032		)	10,323		1,944,034
Unconsolidated Debt - Floating Rate
Carolina Square (LIBOR + 1.90%) (3)	50%	2.89%	5/1/20	38,037			—			—			—			—			—			38,037			—			—		38,037
300 Colorado (LIBOR + 2.25%) (4)	50%	3.24%	1/17/22	—			—			21,113			—			—			—			21,113			—			—		21,113
Total Floating Rate Debt				38,037			—			21,113			—			—			—			59,150			—			—		59,150
Unconsolidated Debt - Fixed Rate
Emory University Hospital Midtown	50%	3.50%	6/1/23	634			872			903			31,436			—			—			33,846			(75		)			33,771
Total Fixed Rate Debt				634			872			903			31,436			—			—			33,846			(75		)	—		33,771
Total Unconsolidated Debt				38,671			872			22,016			31,436			—			—			92,996			(75		)	—		92,921
Total Debt				$	50,522		$	267,240		$	124,417		$	284,591		$	79,087		$	1,226,882		$	2,032,739		$	(6,107	)	$	10,323	$	2,036,955
Total Maturities (5)				$	37,872		$	250,000		$	104,230		$	275,932		$	70,865		$	1,215,159		$	1,954,058
% of Maturities				2		%	13		%	5		%	14		%	4		%	62		%	100		%

Cousins Properties 29 Q1 2020 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	$	309,150	15	%	2.34	%	1.5
Fixed Rate Debt	1,723,589		85	%	3.94	%	6.2
Total Debt	$	2,032,739	100	%	3.70	%	5.5

(1) The spread over LIBOR at March 31, 2020 was 1.20%.

(2) As of March 31, 2020, the Company had no amount drawn under the Credit Facility and had the ability to borrow the full $1.0 billion available. The spread over LIBOR at March 31, 2020 was 1.05%.

(3) The Company's share of the total borrowing capacity of the facility is $39.9 million. In April 2020, the Carolina Square Holdings LP joint venture executed an amendment for its associated construction loan, extending the maturity date to May 2021 and reducing the spread over LIBOR from 1.90% to 1.25%.

(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.

Cousins Properties 30 Q1 2020 Supplemental Information

DEBT SCHEDULE

(1) In April 2020, the Carolina Square Holdings LP joint venture executed an amendment for its associated construction loan, extending the maturity date to May 2021 and reducing the spread over LIBOR from 1.90% to 1.25%.

Cousins Properties 31 Q1 2020 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.
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 32 Q1 2020 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2018			2019 1st			2019 2nd			2019 3rd			2019 4th			2019			2020 1st
FFO and EBITDAre
Net income (loss) available to common stockholders	$	79,164		$	35,341		$	(22,409	)	$	20,374		$	117,112		$	150,418		$	174,943
Depreciation and amortization of real estate assets:
Consolidated properties	179,510			45,405			50,450			81,569			77,925			255,349			71,406
Share of unconsolidated joint ventures	13,078			3,254			4,154			4,148			2,602			14,158			2,347
Partners' share of real estate depreciation	(302		)	(96		)	(99		)	(171		)	(155		)	(521		)	(149		)
(Gain) loss on sale of depreciated properties:
Consolidated properties	(4,925		)	21			33			48			(92,680		)	(92,578		)	(90,916		)
Share of unconsolidated joint ventures	29			—			5			—			10			15			(318		)
Investments in unconsolidated joint ventures	—			—			—			—			—			—			(44,894		)
Non-controlling interest related to unit holders	1,345			588			(265		)	241			1,388			1,952			302
FFO	267,899			84,513			31,869			106,209			106,202			328,793			112,721
Interest Expense	45,886			12,574			13,692			16,377			17,058			59,701			16,554
Income Tax Expenses	—			—			242			(242		)	(298		)	(298		)	50
Non-Real Estate Depreciation and Amortization	1,872			456			454			443			446			1,799			207
EBITDAre (1)	315,657			97,543			46,257			122,787			123,408			389,995			129,532
Transaction Costs (2)	248			3			49,827			1,048			2,003			52,881			365
Gain on Extinguishment of Debt	(8		)	—			—			—			—			—			—
Adjusted EBITDAre (1)	315,897			97,546			96,084			123,835			125,411			442,876			129,897
Income from Unconsolidated Joint Ventures
Net Operating Income
Office Properties	26,644			7,006			8,670			8,369			5,310			29,355			5,219
Other Properties	2,244			867			709			668			814			3,058			816
Net Operating Income	28,888			7,873			9,379			9,037			6,124			32,413			6,035
Sales Less Cost of Sales	2,779			—			—			—			—			—			—
Interest Expense	(6,456		)	(1,754		)	(1,633		)	(1,677		)	(674		)	(5,738		)	(650		)
Termination Fee Income	—			3			4			9			—			16			1
Other Income	120			36			43			20			49			148			68
Funds from Operations - Unconsolidated Joint Ventures	25,331			6,158			7,793			7,389			5,499			26,839			5,454
Gain (Loss) on Sale of Depreciated Investment Properties, net	(29		)	—			(4		)	—			(10		)	(15		)	318
Depreciation and Amortization of Real Estate	(13,078		)	(3,254		)	(4,154		)	(4,148		)	(2,602		)	(14,158		)	(2,347		)
Income from Unconsolidated Joint Ventures	12,224			2,904			3,634			3,241			2,887			12,666			3,425
Market Capitalization
Common Stock Price at Period End	$	31.60		$	38.64		$	36.17		$	37.59		$	41.20		$	41.20		$	29.27
Number of Common Stock/Units Outstanding at Period End	106,840			106,890			148,507			148,506			148,506			148,506			148,565
Equity Market Capitalization	3,376,144			4,130,230			5,371,498			5,582,341			6,118,447			6,118,447			4,348,498
Consolidated Debt	1,062,570			1,116,474			1,837,449			1,850,817			2,222,975			2,222,975			1,944,034
Share of Unconsolidated Debt	171,446			170,690			170,214			172,319			82,519			82,519			92,921
Debt (1)	1,234,016			1,287,164			2,007,663			2,023,136			2,305,494			2,305,494			2,036,955
Total Market Capitalization	4,610,152			5,417,403			7,379,161			7,605,477			8,423,941			8,423,941			6,385,453

Cousins Properties 33 Q1 2020 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Credit Ratios
Debt (1)	1,234,016		1,287,164		2,007,663		2,023,136		2,305,494		2,305,494		2,036,955
Less: Cash and Cash Equivalents	(2,547	)	(3,456	)	(11,885	)	(12,396	)	(15,603	)	(15,603	)	(124,632	)
Less: Share of Unconsolidated Cash and Cash Equivalents	(10,302	)	(13,427	)	(15,671	)	(20,154	)	(8,634	)	(8,634	)	(9,516	)
Net Debt	1,221,167		1,270,281		1,980,107		1,990,586		2,281,257		2,281,257		1,902,807
Total Market Capitalization	4,610,152		5,417,403		7,379,161		7,605,477		8,423,941		8,423,941		6,385,453
Net Debt / Total Market Capitalization	26.5	%	23.4	%	26.8	%	26.2	%	27.1	%	27.1	%	29.8	%
Total Assets - Consolidated	4,146,296		4,251,193		6,676,672		6,704,120		7,151,447		7,151,447		6,901,934
Accumulated Depreciation - Consolidated	566,749		643,140		696,531		781,998		802,807		802,807		878,199
Undepreciated Assets - Unconsolidated (1)	530,076		553,098		568,387		590,183		391,457		391,457		290,134
Less: Investment in Unconsolidated Joint Ventures	(161,907	)	(167,429	)	(176,169	)	(186,079	)	(133,884	)	(133,884	)	(128,916	)
Total Undepreciated Assets (1)	5,081,214		5,280,002		7,765,421		7,890,222		8,211,827		8,211,827		7,941,351
Net Debt	1,221,167		1,270,281		1,980,107		1,990,586		2,281,257		2,281,257		1,902,807
Net Debt / Total Undepreciated Assets (1)	24.0	%	24.1	%	25.5	%	25.2	%	27.8	%	27.8	%	24.0	%
Coverage Ratios (1)
Interest Expense	45,886		12,574		13,692		16,377		17,058		59,701		16,554
Scheduled Principal Payments	12,008		3,481		3,516		3,551		4,178		14,726		4,334
Fixed Charges	57,894		16,055		17,208		19,928		21,236		74,427		20,888
EBITDAre	315,657		97,543		46,257		122,787		123,408		389,995		129,532
Fixed Charges Coverage Ratio (EBITDAre) (1)	5.45		6.08		2.69		6.16		5.81		5.24		6.20
Adjusted EBITDAre	315,897		97,546		96,084		123,835		125,411		442,876		129,897
Fixed Charges Coverage Ratio (Adjusted EBITDAre) (1)	5.46		6.08		5.58		6.21		5.91		5.95		6.22
Net Debt	1,221,167		1,270,281		1,980,107		1,990,586		2,281,257		2,281,257		1,902,807
Annualized EBITDAre (3)	334,968		390,172		185,028		491,148		493,632		493,632		518,128
Net Debt / Annualized EBITDAre (3)	3.65		3.26		10.70		4.05		4.62		4.62		3.67
Annualized Adjusted EBITDAre (3)	335,048		390,184		384,336		495,340		501,644		501,644		519,588
Net Debt / Annualized Adjusted EBITDAre (3)	3.64		3.26		5.15		4.02		4.55		4.55		3.66
Dividend Information
Common Dividends	109,291		30,492		42,562		42,559		42,561		158,174		44,562
FFO	267,899		84,513		31,869		106,209		106,202		328,793		112,721
FFO Payout Ratio	40.8	%	36.1	%	133.6	%	40.1	%	40.1	%	48.1	%	39.5	%
Transaction Costs (2)	248		3		49,827		1,048		2,003		52,881		365
FFO before Transaction Costs (2)	268,147		84,516		81,696		107,257		108,205		381,674		113,086
FFO Payout Ratio before Transaction Costs (2)	40.8	%	36.1	%	52.1	%	39.7	%	39.3	%	41.4	%	39.4	%

Cousins Properties 34 Q1 2020 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
FFO	267,899		84,513		31,869		106,209		106,202		328,793		112,721
Amortization of Deferred Financing Costs	2,417		615		630		692		693		2,630		700
Non-Cash Stock-Based Compensation	2,257		607		625		615		621		2,468		696
Non-Real Estate Depreciation and Amortization	1,872		456		454		443		446		1,799		207
Lease Inducements	760		157		(401	)	(537	)	(514	)	(1,295	)	(532	)
Straight Line Rent Ground Leases	589		127		124		123		126		500		126
Above and Below Market Ground Rent	158		39		40		39		40		158		39
Transaction Costs (2)	248		3		49,827		1,048		2,003		52,881		365
Debt Premium Amortization	(880	)	—		(34	)	(180	)	(916	)	(1,130	)	(1,130	)
Gain on Extinguishment of Debt	(8	)	—		—		—		—		—		—
Deferred Income - Tenant Improvements	(3,772	)	(870	)	(940	)	(923	)	(932	)	(3,665	)	(851	)
Above and Below Market Rents	(6,877	)	(1,670	)	(1,981	)	(3,042	)	(2,846	)	(9,539	)	(2,808	)
Second Generation Capital Expenditures (CAPEX)	(56,667	)	(8,074	)	(40,604	)	(18,946	)	(23,085	)	(90,709	)	(23,817	)
Straight Line Rental Revenue	(26,017	)	(8,732	)	(6,068	)	(6,522	)	(8,123	)	(29,445	)	(9,895	)
Gain on Sales of Undepreciated Investment Properties	(3,291	)	(13,132	)	(1,337	)	(21	)	(3,692	)	(18,182	)	(1,335	)
FAD (1)	178,688		54,039		32,204		78,998		70,023		235,264		74,486
Common Dividends (4)	109,291		30,492		42,562		42,559		42,561		158,174		44,562
FAD Payout Ratio (1)	61.2	%	56.4	%	132.2	%	53.9	%	60.8	%	67.2	%	59.8	%
Operations Ratio
Total Undepreciated Assets (1)	5,081,214		5,280,002		7,765,421		7,890,222		8,211,827		8,211,827		7,941,351
General and Administrative Expenses	22,040		11,460		8,374		5,852		11,321		37,007		5,652
Annualized General and Administrative Expenses (4) / Total Undepreciated Assets	0.43	%	0.87	%	0.43	%	0.30	%	0.55	%	0.45	%	0.28	%
2nd Generation TI & Leasing Costs & Building CAPEX
Second Generation Leasing Related Costs	51,149		7,527		39,834		15,891		17,248		80,500		19,444
Second Generation Building Improvements	5,518		547		770		3,055		5,837		10,209		4,373
	56,667		8,074		40,604		18,946		23,085		90,709		23,817
(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 2018, transaction costs related primarily to the transactions with Parkway Properties, Inc. In 2019 and 2020, 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) 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 35 Q1 2020 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended March 31,
	2020							2019
	Dollars			Weighted Average Common Shares	Per Share Amount			Dollars			Weighted Average Common Shares	Per Share Amount
Net Income Available to Common Stockholders	$	174,943		147,424	$	1.19		$	35,341		105,127	$	0.34
Noncontrolling interest related to unitholders	302			1,120	(0.01		)	588			1,744	—
Conversion of stock options	—			15	—			—			30	—
Conversion of unvested restricted stock units	—			2	—			—			—	—
Net Income — Diluted	175,245			148,561	1.18			35,929			106,901	0.34
Depreciation and amortization of real estate assets:
Consolidated properties	71,406			—	0.48			45,405			—	0.42
Share of unconsolidated joint ventures	2,347			—	0.02			3,254			—	0.03
Partners' share of real estate depreciation	(149		)	—	—			(96		)	—	—
(Gain) loss on sale of depreciated properties:
Consolidated properties	(90,916		)	—	(0.61		)	21			—	—
Share of unconsolidated joint ventures	(318		)	—	—			—			—	—
Investments in unconsolidated joint ventures	(44,894		)	—	(0.31		)	—			—	—
Funds From Operations	$	112,721		148,561	$	0.76		$	84,513		106,901	$	0.79
TIER transaction costs	365			—	—			3			—	—
Funds From Operations before TIER transaction costs	$	113,086		148,561	$	0.76		$	84,516		106,901	$	0.79

The table above shows Funds From Operations (“FFO”) and the related reconciliation to Net Income Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the 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 36 Q1 2020 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	Three Months Ended
Net Operating Income (in thousands)	March 31, 2020			March 31, 2019
Net income	$	175,309		$	36,005
Net operating income from unconsolidated joint ventures	6,035			7,873
Fee income	(4,732		)	(8,728		)
Termination fee income	(2,844		)	(520		)
Other income	(37		)	(140		)
Reimbursed expenses	521			932
General and administrative expenses	5,652			11,460
Interest expense	15,904			10,820
Depreciation and amortization	71,614			45,861
Transaction costs	365			3
Other expenses	566			180
Income from unconsolidated joint ventures	(3,425		)	(2,904		)
Gain on sale of investment in unconsolidated joint ventures	(46,230		)	—
Gain on investment property transactions	(90,916		)	(13,111		)
Net Operating Income	$	127,782		$	87,731
Straight line rent	(9,895		)	(8,731		)
Non-cash income	(4,192		)	(2,383		)
Non-cash expense	165			177
Cash Basis Net Operating Income	$	113,860		$	76,794
Net Operating Income
Same Property	$	76,178		$	73,847
Non-Same Property	51,604			13,884
	$	127,782		$	87,731
Cash Basis Net Operating Income
Same Property	$	71,092		$	63,802
Non-Same Property	42,768			12,992
	$	113,860		$	76,794

Cousins Properties 37 Q1 2020 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 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” (“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 38 Q1 2020 Supplemental Information

XML

Cover Page	Apr. 30, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 30, 2020
Entity Registrant Name	Cousins Properties Inc
Entity Central Index Key	0000025232
Amendment Flag	false
Entity Incorporation, State or Country Code	GA
Entity File Number	001-11312
Entity Tax Identification Number	58-0869052
Entity Address, Address Line One	3344 Peachtree Road NE
Entity Address, Address Line Two	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326-4802
City Area Code	404
Local Phone Number	407-1000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $1 par value per share
Trading Symbol	CUZ
Security Exchange Name	NYSE
Entity Emerging Growth Company	false