EX-99.1 2 aearningsreleaseex9913q22.htm EX-99.1 Document

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TABLE OF CONTENTS




Cousins Properties
1
Q3 2022 Supplemental Information

FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2021, and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as: guidance and underlying assumptions; business and financial strategy; future debt financings; future acquisitions and dispositions of operating assets or joint venture interests; future acquisitions and dispositions of land, including ground leases; future development and redevelopment opportunities, including fee development opportunities; future issuances and repurchases of common stock, limited partnership units, or preferred stock; future distributions; projected capital expenditures; market and industry trends; entry into new markets or changes in existing market concentrations; future changes in interest rates; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.

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

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




Cousins Properties
2
Q3 2022 Supplemental Information

EARNINGS RELEASE

COUSINS PROPERTIES REPORTS THIRD QUARTER 2022 RESULTS
Raises Full Year 2022 Earnings Guidance

ATLANTA (October 27, 2022) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended September 30, 2022.
“Our solid operating results in this challenging economic environment validate the power of our trophy office portfolio in the most dynamic Sun Belt markets. We have now increased cash rents on expiring leases for 34 straight quarters," said Colin Connolly, president and chief executive officer of Cousins Properties. "Looking forward, higher interest rates are likely to bring further dislocation in the capital markets. At Cousins, we have prepared for the moment. I believe we are likely to uncover attractive investment opportunities in coming quarters. Our balance sheet is positioned to capitalize and to create value for our shareholders."
Financial Results
For third quarter 2022:
Net income available to common stockholders was $80.6 million, or $0.53 per share, compared to $54.0 million, or $0.36 per share, for third quarter 2021, driven by a gain recognized on the sale of our interest in a joint venture asset.
Funds From Operations ("FFO") was $104.4 million, or $0.69 per share, compared to $102.4 million, or $0.69 per share, for third quarter 2021.
For nine months ended September 30, 2022:
Net income available to common stockholders was $142.7 million, or $0.95 per share, compared to $111.3 million, or $0.75 per share, for nine months ended September 30, 2021.
FFO was $308.6 million, or $2.06 per share, compared to $306.4 million, or $2.06 per share, for nine months ended September 30, 2021.

Operations and Leasing Activity
For third quarter 2022:
Same property net operating income ("NOI") on a cash-basis increased 1.5%.
Second generation net rent per square foot on a cash-basis increased 4.8%; it increased 7.3% excluding our non-core Houston asset.
Executed 431,000 square feet of office leases.
For nine months ended September 30, 2022:
Same property NOI on a cash-basis increased 0.5%.
Second generation net rent per square foot on a cash-basis increased 10.5%; it increased 11.3% excluding our non-core Houston asset.
Executed 1,343,000 square feet of office leases.





Cousins Properties
3
Q3 2022 Supplemental Information

EARNINGS RELEASE
Investment and Financing Activity
Sold our 50% interest in Carolina Square, a 468,000 square foot mixed-use property in Chapel Hill, NC, to our joint venture partner for $105.0 million, recognizing a gain of $56.3 million.
Amended our $350 million Term Loan maturing in August 2024, changing the base interest rate to the Secured Overnight Financing Rate ("SOFR"), and entered into a floating-to-fixed interest rate swap fixing the underlying SOFR rate at 4.23% through maturity.
Initiated the process of extending the existing mortgages on our two Terminus properties in Atlanta with the current lender. The maturities will be extended from January 2023 to January 2031, the combined principal will increase to $221 million and the interest rate has been locked at 6.34%. This extension is expected to close before the end of the year.
Subsequent to quarter end, closed on a $400 million Term Loan that matures in March 2025, with four six-month extension options. The current applicable adjusted SOFR spread is 1.05%, which is consistent with our $350 million Term Loan, which we closed in 2021.
Subsequent to quarter end, repaid in full and without penalty our Promenade Tower and Legacy Union mortgages with maturity dates of October 2022 and January 2023, respectively.

Earnings Guidance
Full year 2022 earnings guidance raised as follows:
Net income between $1.10 and $1.14 per share, up from previous guidance between $0.79 and $0.85 per share, primarily driven by the gain on the sale of our interest in Carolina Square.
FFO between $2.69 and $2.73 per share, up from previous guidance between $2.67 and $2.73 per share, primarily driven by improvements in property NOI partially offset by increases in interest rates.
Guidance reflects management’s current plans and assumptions as of the date of this report, and it is subject to the risks and uncertainties more fully described in our Securities and Exchange Commission filings. Actual results could differ materially from this guidance.

Investor Conference Call and Webcast
The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Friday, October 28, 2022 to discuss the results of the quarter ended September 30, 2022. The number to call for this interactive teleconference is (877) 247-1056. The live webcast of this call can be accessed on the Company's website, www.cousins.com, through the “Cousins Properties Third 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 5916672. The playback can also be accessed on the Company's website.




Cousins Properties
4
Q3 2022 Supplemental Information

COMPANY INFORMATION

THE COMPANY
Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments. For more information, please visit www.cousins.com.
MANAGEMENT
M. Colin ConnollyGregg D. AdzemaKennedy HicksRichard G. Hickson IV
President and Chief Executive OfficerExecutive Vice President and Chief Financial OfficerExecutive Vice President, Investments and Managing Director - AtlantaExecutive Vice President, Operations
John S. McCollPamela F. RoperJeffrey D. Symes
Executive Vice President, DevelopmentExecutive Vice President, General Counsel and Corporate SecretarySenior Vice President and Chief Accounting Officer
BOARD OF DIRECTORS
Robert M. ChapmanCharles T. CannadaM. Colin Connolly
Non-executive Chairman of Cousins Properties, Chief Executive Officer of Centerpoint Properties TrustPrivate InvestorPresident and Chief Executive Officer of Cousins Properties
Scott W. FordhamLillian C. GiornelliR. Kent Griffin Jr.
Former Chief Executive Officer and
Director of TIER REIT, Inc.
Chairman, Chief Executive Officer and Trustee of
The Cousins Foundation Inc.
Managing Director of Phicas Investors
Donna W. HylandDionne NelsonR. Dary Stone
President and Chief Executive Officer of
Children's Healthcare of Atlanta
President and Chief Executive Officer of
Laurel Street Residential
President and Chief Executive Officer of R.D. Stone Interests
COMPANY INFORMATION / EQUITY COVERAGE(1)
Corporate HeadquartersTransfer AgentBarclaysBofA SecuritiesEvercore ISIGreen StreetJ.P. Morgan
3344 Peachtree Road NE
Suite 1800
Atlanta GA 30326
404.407.1000
American Stock Transfer &
Trust Company LLC
astfinancial.com
800.937.5449
Anthony Powell 212.526.8768Camille Bonnel
416.369.2140
Steve Sakwa
212.446.9642
Daniel Ismail
949.640.8780
Anthony Paolone
212.622.6682
Investor RelationsStock Exchange Mizuho SecuritiesRW BairdTruist SecuritiesWells FargoWolfe Research
Roni Imbeaux
Vice President, Finance and
Investor Relations
rimbeaux@cousins.com
404.407.1104
NYSE: CUZVikram Malhotra
212.282.3827
David Rodgers
216.737.7341
Michael Lewis
212.319.5659
Blaine Heck
443.263.6529
Andrew Rosivach
646.582.9250
(1) Please note that any opinions, estimates, or forecasts regarding Cousins' performance made by the analysts listed above are theirs alone and do not represent opinions, forecasts, or predictions of Cousins or its management. Cousins does not, by its reference above or distribution, imply its endorsement of, or concurrence with, such information, conclusions, or recommendations.




Cousins Properties
5
Q3 2022 Supplemental Information

CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
September 30, 2022December 31, 2021
Assets:(unaudited) 
Real estate assets:  
Operating properties, net of accumulated depreciation of $1,030,125 and $874,988 in 2022 and 2021, respectively$6,731,159 $6,506,910 
Projects under development102,007 174,803 
Land158,431 157,681 
6,991,597 6,839,394 
Cash and cash equivalents5,507 8,937 
Restricted cash1,231 1,231 
Accounts receivable7,195 12,553 
Deferred rents receivable175,511 154,866 
Investment in unconsolidated joint ventures106,389 77,811 
Intangible assets, net143,121 168,553 
Other assets, net65,521 48,689 
Total assets$7,496,072 $7,312,034 
Liabilities:
Notes payable$2,295,989 $2,237,509 
Accounts payable and accrued expenses268,153 224,523 
Deferred income108,316 74,515 
Intangible liabilities, net 54,734 63,223 
Other liabilities103,164 111,864 
Total liabilities2,830,356 2,711,634 
Commitments and contingencies
Equity:
Stockholders' investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 154,019,214 and 151,272,969 shares issued and outstanding in 2022 and 2021, respectively154,019 151,273 
Additional paid-in capital5,628,951 5,549,308 
Treasury stock at cost, 2,584,933 shares in 2022 and 2021(148,473)(148,473)
Distributions in excess of cumulative net income(988,488)(985,338)
Accumulated other comprehensive loss(652)— 
 Total stockholders' investment4,645,357 4,566,770 
Nonredeemable noncontrolling interests20,359 33,630 
Total equity4,665,716 4,600,400 
Total liabilities and equity$7,496,072 $7,312,034 




Cousins Properties
6
Q3 2022 Supplemental Information

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share amounts)

Three Months EndedNine Months Ended
September 30,September 30,
 2022202120222021
Revenues:   
Rental property revenues$193,455 $185,515 $559,856 $552,088 
Fee income1,677 3,094 5,370 12,426 
Other38 123 2,522 405 
 195,170 188,732 567,748 564,919 
Expenses:
Rental property operating expenses66,632 65,354 193,725 195,465 
Reimbursed expenses418 383 1,455 1,149 
General and administrative expenses6,498 7,968 21,557 22,014 
Interest expense18,380 16,709 50,454 50,573 
Depreciation and amortization79,116 72,073 219,721 214,399 
Other231 421 877 1,835 
 171,275 162,908 487,789 485,435 
Income from unconsolidated joint ventures634 2,128 7,038 5,826 
Gain on sales of investments in unconsolidated joint ventures56,260 13,121 56,260 13,160 
Gain (loss) on investment property transactions(20)13,063 (61)13,037 
Loss on extinguishment of debt — (100)— 
Net income80,769 54,136 143,096 111,507 
Net income attributable to noncontrolling interests(130)(118)(421)(226)
Net income available to common stockholders$80,639 $54,018 $142,675 $111,281 
Net income per common share — basic and diluted$0.53 $0.36 $0.95 $0.75 
Weighted average shares — basic151,435 148,688 149,670 148,659 
Weighted average shares — diluted151,695 148,772 149,946 148,743 




Cousins Properties
7
Q3 2022 Supplemental Information

KEY PERFORMANCE METRICS (1)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
Property Statistics
Consolidated Operating Properties33333232323233333333
Consolidated Rentable Square Feet (in thousands)18,89719,14518,12217,89917,75817,75818,13618,13618,13618,136
Unconsolidated Operating Properties3343333322
Unconsolidated Rentable Square Feet (in thousands)1,1071,1071,4601,1791,1791,1791,1791,179711711
Total Operating Properties36363635353536363535
Total Rentable Square Feet (in thousands)20,00420,25219,58219,07818,93718,93719,31519,31518,84718,847
Office Leasing Activity (2)
Net Leased during the Period (SF, in thousands)1,4212714845977432,0963245884311,343
Net Rent (per SF)$32.20$31.12$32.38$34.73$39.02$35.24$35.45$32.34$35.49$34.10
Net Free Rent (per SF)(1.38)(1.70)(1.33)(1.59)(1.31)(1.45)(2.36)(0.99)(1.97)(1.63)
Leasing Commissions (per SF)(2.57)(2.26)(2.70)(3.05)(2.76)(2.77)(3.01)(2.65)(2.86)(2.80)
Tenant Improvements (per SF)(3.75)(3.63)(4.58)(6.03)(6.26)(5.47)(6.34)(5.33)(5.69)(5.69)
Leasing Costs (per SF)(7.70)(7.59)(8.61)(10.67)(10.33)(9.69)(11.71)(8.97)(10.52)(10.12)
Net Effective Rent (per SF)$24.50$23.53$23.77$24.06$28.69$25.55$23.74$23.37$24.97$23.98
Change in Second Generation Net Rent27.2 %21.5 %21.7 %31.6 %17.1 %24.7 %27.4 %27.2 %20.4 %25.3 %
Change in Cash-Basis Second Generation Net Rent13.1 %10.5 %12.9 %23.1 %6.0 %15.1 %15.4 %11.6 %4.8 %10.5 %
Same Property Information (3)
Percent Leased (period end)92.7 %89.9 %90.7 %90.7 %90.5 %90.5 %90.0 %89.7 %89.2 %89.2 %
Weighted Average Occupancy 91.8 %89.3 %90.7 %89.0 %88.1 %90.0 %87.0 %86.9 %86.6 %86.8 %
Change in NOI (over prior year period)(0.5)%(4.1)%1.4 %(1.4)%(1.1)%(0.5)%(2.0)%(2.2)%1.8 %(0.7)%
Change in Cash-Basis NOI (over prior year period)0.7 %(2.7)%7.1 %3.6 %2.1 %3.5 %0.1 %(0.2)%1.5 %0.5 %
Development Pipeline (4)
Estimated Project Costs (in thousands)$449,400$363,000$492,200$662,500$759,000$759,000$566,000$566,000$568,900$568,900
Estimated Project Costs/Total Undepreciated Assets5.4 %4.3 %6.1 %8.1 %8.9 %8.9 %6.6 %6.5 %6.5 %6.5 %
Market Capitalization
Common Stock Price $33.50$35.35$36.78$37.29$40.28$40.28$40.29$29.23$23.35$23.35
Common Stock/Units Outstanding (in thousands)148,589148,679148,713148,713148,713148,713148,788151,465151,459151,459
Equity Market Capitalization (in thousands)$4,977,732$5,255,803$5,469,664$5,545,508$5,990,160$5,990,160$5,994,669$4,427,322$3,536,568$3,536,568
Debt (in thousands)2,277,7592,358,8602,195,6532,206,3062,350,3142,350,3142,462,1972,425,3392,372,9312,372,931
Total Market Capitalization (in thousands)$7,255,491$7,614,663$7,665,317$7,751,814$8,340,474$8,340,474$8,456,866$6,852,661$5,909,499$5,909,499
Continued on next page




Cousins Properties
8
Q3 2022 Supplemental Information

KEY PERFORMANCE METRICS (1)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
Credit Ratios
Net Debt/Total Market Capitalization31.2 %30.7 %28.4 %28.1 %28.0 %28.0 %28.9 %35.1 %39.9 %39.9 %
Net Debt/Total Undepreciated Assets27.0 %27.6 %26.9 %26.7 %27.5 %27.5 %28.4 %27.7 %26.7 %26.7 %
Net Debt/Annualized EBITDAre
4.844.874.554.544.864.865.284.934.754.75
Fixed Charges Coverage (EBITDAre)
6.005.425.435.435.515.455.565.565.135.41
Dividend Information
Common Dividend per Share$1.20$0.31$0.31$0.31$0.31$1.24$0.32$0.32$0.32$0.96
Funds From Operations (FFO) Payout Ratio43.1 %45.2 %45.1 %45.0 %45.6 %45.3 %48.7 %46.3 %46.4 %47.1 %
Funds Available for Distribution (FAD) Payout Ratio66.2 %57.3 %64.5 %66.7 %64.5 %63.1 %67.3 %70.6 %72.2 %68.8 %
Operations Ratio
Annualized General and Administrative Expenses/ Total Undepreciated Assets0.32 %0.32 %0.36 %0.39 %0.34 %0.34 %0.38 %0.32 %0.29 %0.29 %
Additional Information
In-Place Gross Rent (per SF) (5)$40.26$40.71$42.00$42.87$42.85$42.85$43.90$44.39$44.85$44.85
Straight-Line Rental Revenue (in thousands) $42,215$7,739$5,625$6,852$5,287$25,503$5,501$6,378$8,966$20,845
Above and Below Market Rents Amortization, Net
(in thousands)
$10,061$2,388$2,069$1,989$1,946$8,392$1,771$1,669$1,538$4,978
Second Generation Capital Expenditures
(in thousands)
90,39311,45222,81724,27523,09881,64221,28024,32426,63672,240
(1)For any Non-GAAP Financial Measures, see the calculations and reconciliations on pages 31-37.
(2)See Office Leasing Activity on page 19 for additional detail and explanations.
(3)
Same Property Information is derived from the pool of same office properties as existed in the period originally reported. See Same Property Performance on page 18 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 31 for additional information.
(4)The Company's share of estimated project costs. See Development Pipeline on page 25 for additional detail.
(5)In-place gross rent equals the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.







Cousins Properties
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Q3 2022 Supplemental Information

KEY PERFORMANCE METRICS


Total Rentable Square Feet             Equity Market Capitalization           Net Debt / Annualized EBITDAre
chart-868f0a86c2184f039e7a.jpg chart-361b41b6b34c447c8aea.jpg chart-e8fae44d80494e0ca86a.jpg




Same Property NOI Change         Second Generation Net Rent Change      Annualized General & Administrative
Cash-Basis (1)                     Cash-Basis (1)             Expenses / Total Undepreciated Assets
chart-b9c952c5b95b41cc878a.jpg chart-a3085ba3f7484345baea.jpg chart-e391f121be454ce7b4ea.jpg
(1) Office properties only.
    
    Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.




Cousins Properties
10
Q3 2022 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)



(amounts in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
NOI$486,034 $123,124 $122,705 $124,148 $123,743 $493,720 $119,607 $123,051 $129,400 $372,058 
Gain (Loss) on Sales of Undepreciated Investment Properties612 — — (64)— (64)— 4,500 (22)4,478 
Fee Income18,226 4,530 4,803 3,094 3,132 15,559 1,388 2,305 1,677 5,370 
Other Income4,325 298 897 2,013 2,595 5,803 3,780 741 336 4,857 
Reimbursed Expenses(1,580)(368)(398)(383)(1,327)(2,476)(360)(677)(418)(1,455)
General and Administrative Expenses(27,034)(6,733)(7,313)(7,969)(7,306)(29,321)(8,063)(6,996)(6,498)(21,557)
Interest Expense(62,676)(17,723)(17,519)(17,513)(17,182)(69,937)(16,142)(17,238)(19,390)(52,770)
Other Expenses(3,972)(1,010)(967)(764)(719)(3,460)(630)(797)(537)(1,964)
Depreciation and Amortization of Non-Real Estate Assets(688)(158)(157)(156)(152)(623)(155)(158)(138)(451)
FFO (1)$413,247 $101,960 $102,051 $102,406 $102,784 $409,201 $99,425 $104,731 $104,410 $308,566 
Weighted Average Shares - Diluted148,636 148,725 148,740 148,772 148,905 148,891 149,002 149,142 151,695 149,946 
FFO per Share (1)$2.78 $0.69 $0.69 $0.69 $0.69 $2.75 $0.67 $0.70 $0.69 $2.06 
    
(1) The above amounts include our share of amounts from unconsolidated joint ventures for the respective category. The Company does not control the operations of these unconsolidated joint ventures but believes including these amounts is meaningful to investors and analysts. See pages 31 and 34 for reconciliations of Funds From Operations to net income available to common shareholders.




Cousins Properties
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Q3 2022 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
NOI
Consolidated Properties
The Domain (2)$43,006 $14,118 $15,019 $15,989 $15,861 $60,987 $15,443 $15,510 $18,478 $49,431 
Terminus (2)27,695 7,192 6,461 6,390 7,105 27,148 7,439 7,673 9,228 24,340 
Spring & 8th (2)29,232 7,367 7,320 7,367 7,359 29,413 7,424 7,282 7,352 22,058 
Corporate Center (2)25,397 7,371 7,157 7,326 7,252 29,106 7,050 7,090 7,144 21,284 
Hayden Ferry (2)24,346 6,221 6,079 6,128 6,100 24,528 6,133 5,990 6,094 18,217 
Northpark (2)27,668 6,760 6,588 6,562 6,652 26,562 6,098 6,317 5,278 17,693 
725 Ponce— — — 3,132 4,537 7,669 4,527 4,686 4,596 13,809 
One Eleven Congress18,030 4,564 4,466 5,042 4,121 18,193 4,342 4,531 4,547 13,420 
Fifth Third Center18,354 4,782 4,963 4,437 4,410 18,592 4,229 4,340 4,675 13,244 
San Jacinto Center14,966 3,750 3,912 3,871 4,119 15,652 4,252 4,316 4,113 12,681 
Buckhead Plaza (2)12,278 2,509 2,980 3,207 3,881 12,577 3,646 4,013 4,563 12,222 
Avalon (2)10,999 3,714 3,993 3,283 3,391 14,381 3,637 3,969 4,156 11,762 
3344 Peachtree15,083 3,549 3,690 3,874 3,814 14,927 3,966 3,931 3,848 11,745 
BriarLake Plaza (2)18,104 4,483 4,530 4,913 4,216 18,142 3,879 3,740 3,547 11,166 
The Terrace (2)16,141 4,341 4,213 4,132 4,027 16,713 3,133 3,583 3,225 9,941 
The RailYard929 3,175 3,112 3,172 3,037 12,496 3,153 3,258 3,255 9,666 
Colorado Tower12,348 2,382 3,253 3,563 3,862 13,060 3,155 2,746 3,226 9,127 
300 Colorado— — — — — — 3,275 3,050 2,762 9,087 
Promenade Tower16,813 4,060 4,116 4,156 2,601 14,933 2,968 2,901 2,867 8,736 
550 South10,720 2,687 2,626 2,684 2,596 10,593 2,652 2,665 2,654 7,971 
Legacy Union One9,585 2,363 2,371 2,367 2,365 9,466 2,357 2,342 2,355 7,054 
Domain Point (2)5,744 1,265 1,243 1,168 1,379 5,055 1,761 1,741 1,837 5,339 
Heights Union (2)— — — — 1,303 1,303 1,641 1,461 2,033 5,135 
111 West Rio5,497 1,387 1,397 1,437 1,409 5,630 1,419 1,416 1,424 4,259 
3350 Peachtree9,651 2,280 2,255 609 939 6,083 992 1,771 1,339 4,102 
Meridian Mark Plaza4,159 1,018 1,040 1,022 1,030 4,110 1,042 1,408 1,268 3,718 
The Pointe4,752 1,199 1,043 1,267 1,176 4,685 1,156 1,211 1,234 3,601 
3348 Peachtree5,460 1,262 1,258 1,344 1,563 5,427 1,257 1,348 984 3,589 
Tempe Gateway7,516 1,417 1,452 1,734 1,483 6,086 1,423 1,057 1,077 3,557 
Research Park V4,125 1,038 985 1,055 966 4,044 1,059 1,087 1,162 3,308 
5950 Sherry Lane5,001 1,188 1,200 1,057 1,104 4,549 951 849 841 2,641 
Harborview Plaza3,291 831 720 841 819 3,211 844 882 842 2,568 
Promenade Central (3)9,340 2,286 2,278 2,242 2,220 9,026 — —   
Other (4) 50,968 7,811 5,548 3,015 3,776 20,150 585 2,345 4,577 7,507 
Subtotal - Consolidated467,198 118,370 117,268 118,386 120,473 474,497 116,888 120,509 126,581 363,978 
Continued on next page




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Q3 2022 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
Unconsolidated Properties (5)
Emory University Hospital Midtown4,210 1,048 1,094 1,092 1,098 4,332 1,112 1,152 1,126 3,390 
120 West Trinity (2)(49)151 204 231 241 827 301 305 350 956 
Other (6)14,675 3,555 4,139 4,439 1,931 14,064 1,306 1,085 1,343 3,734 
Subtotal - Unconsolidated18,836 4,754 5,437 5,762 3,270 19,223 2,719 2,542 2,819 8,080 
Total Net Operating Income (1)486,034 123,124 122,705 124,148 123,743 493,720 119,607 123,051 129,400 372,058 
Gain (Loss) on Sales of Undepreciated Investment Properties
Consolidated— — — (64)— (64)— —   
Unconsolidated (5)612 — — — — — — 4,500 (22)4,478 
Total Gain (Loss) on Sales of Undepreciated Investment Properties612 —  (64) (64) 4,500 (22)4,478 
Fee Income
Development Fees15,334 3,900 4,173 2,476 1,532 12,081 817 1,404 957 3,178 
Management Fees (7)2,756 579 616 594 1,585 3,374 571 901 720 2,192 
Leasing & Other Fees136 51 14 24 15 104 — —   
Total Fee Income18,226 4,530 4,803 3,094 3,132 15,559 1,388 2,305 1,677 5,370 
Other Income
Termination Fees3,834 42 782 1,775 2,506 5,105 1,462 449 242 2,153 
Termination Fees - Unconsolidated (5)— 74 — 81 — —   
Interest and Other Income231 213 68 123 46 450 2,283 201 38 2,522 
Interest and Other Income - Unconsolidated (5)251 43 40 41 43 167 35 91 56 182 
Total Other Income4,325 298 897 2,013 2,595 5,803 3,780 741 336 4,857 
Total Fee and Other Income22,551 4,828 5,700 5,107 5,727 21,362 5,168 3,046 2,013 10,227 
Reimbursed Expenses (7)(1,580)(368)(398)(383)(1,327)(2,476)(360)(677)(418)(1,455)
General and Administrative Expenses(27,034)(6,733)(7,313)(7,969)(7,306)(29,321)(8,063)(6,996)(6,498)(21,557)
Interest Expense
Consolidated Interest Expense
Senior Notes, Unsecured ($275M)(10,975)(2,744)(2,744)(2,743)(2,744)(10,975)(2,744)(2,744)(2,743)(8,231)
Credit Facility, Unsecured(5,768)(1,710)(1,299)(1,114)(1,479)(5,602)(1,795)(2,585)(3,533)(7,913)
Senior Notes, Unsecured ($250M)(9,958)(2,490)(2,489)(2,490)(2,489)(9,958)(2,490)(2,489)(2,490)(7,469)
Senior Notes, Unsecured ($250M)(9,764)(2,441)(2,441)(2,441)(2,441)(9,764)(2,441)(2,441)(2,441)(7,323)
Term Loan, Unsecured ($350M)(5,056)(948)(950)(1,214)(1,220)(4,332)(1,430)(1,918)(3,279)(6,627)
Terminus (2)(6,016)(1,468)(1,452)(1,437)(1,422)(5,779)(1,406)(1,309)(1,293)(4,008)
Senior Notes, Unsecured ($125M)(4,789)(1,197)(1,198)(1,197)(1,197)(4,789)(1,197)(1,198)(1,197)(3,592)
Fifth Third Center(4,737)(1,168)(1,159)(1,152)(1,146)(4,625)(1,138)(1,131)(1,123)(3,392)
Senior Notes, Unsecured ($100M)(4,145)(1,036)(1,037)(1,036)(1,036)(4,145)(1,036)(1,037)(1,036)(3,109)
Colorado Tower(4,091)(1,009)(1,005)(998)(994)(4,006)(988)(982)(976)(2,946)
Promenade Tower (8)(4,081)(997)(988)(979)(969)(3,933)(959)(950)(935)(2,844)
Domain 10 (9)(3,046)(751)(748)(800)(796)(3,095)(792)(788)(783)(2,363)
Continued on next page




Cousins Properties
13
Q3 2022 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
Legacy Union One (8)(2,127)(520)(528)(535)(536)(2,119)(520)(528)(535)(1,583)
Other (10)(376)(41)(37)(44)(39)(161)(40)(40)(42)(122)
Capitalized (11)14,324 1,312 1,419 1,471 2,055 6,257 3,451 3,591 4,026 11,068 
Subtotal - Consolidated Interest Expense(60,605)(17,208)(16,656)(16,709)(16,453)(67,026)(15,525)(16,549)(18,380)(50,454)
Unconsolidated Interest Expense (5)
Emory University Hospital Midtown(1,202)(296)(293)(291)(290)(1,170)(288)(286)(284)(858)
Other (10)(869)(219)(570)(513)(439)(1,741)(329)(403)(726)(1,458)
Subtotal - Unconsolidated Interest Expense(2,071)(515)(863)(804)(729)(2,911)(617)(689)(1,010)(2,316)
Total Interest Expense(62,676)(17,723)(17,519)(17,513)(17,182)(69,937)(16,142)(17,238)(19,390)(52,770)
Other Expenses
Property Taxes and Other Holding Costs(1,163)(345)(164)(215)(217)(941)(230)(262)(247)(739)
Partners' Share of FFO in Consolidated Joint Ventures(1,263)(407)(129)(339)(409)(1,284)(396)(258)(288)(942)
Severance (69)(308)(19)— (79)(406)— (170) (170)
Loss on Extinguishment of Debt— — — — — — — (100) (100)
Predevelopment & Other Costs(1,049)50 (655)(210)(14)(829)(4)(7)(2)(13)
Transaction Costs(428)— — — — — — —   
Total Other Expenses(3,972)(1,010)(967)(764)(719)(3,460)(630)(797)(537)(1,964)
Depreciation and Amortization of Non-Real Estate Assets(688)(158)(157)(156)(152)(623)(155)(158)(138)(451)
FFO $413,247 $101,960 $102,051 $102,406 $102,784 $409,201 $99,425 $104,731 $104,410 $308,566 
Weighted Average Shares - Diluted148,636 148,725 148,740 148,772 148,905 148,891 149,002 149,142 151,695 149,946 
FFO per Share$2.78 $0.69 $0.69 $0.69 $0.69 $2.75 $0.67 $0.70 $0.69 $2.06 


Note:Amounts may differ slightly from other schedules contained herein due to rounding.
(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) Promenade Central is undergoing a full-building redevelopment and is currently not available for operations.
(4) Primarily represents properties sold prior to September 30, 2022, see page 24. Also, includes College Street Garage and properties in final stages of development and not yet stabilized.
(5) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures but believes including these amounts in the categories indicated is meaningful to investors and analysts.
(6) Primarily represents unconsolidated investments sold prior to September 30, 2022, see page 24. Also includes NOI from unconsolidated investments not yet stabilized.
(7) Reimbursed Expenses include costs incurred by the Company for management services provided to our unconsolidated joint ventures. The reimbursement of these costs by the unconsolidated joint ventures is included in Management Fees.
(8) These mortgages were paid off in full and without penalty on October 3, 2022.
(9) In June 2021, we executed a collateral swap for the mortgage previously secured by 816 Congress, which Cousins sold in December 2021. The mortgage is now secured by the Company's Domain 10 property. Terms of the mortgage were unchanged.
(10) Represents interest on loans repaid and interests sold prior to September 30, 2022.
(11) Amounts of consolidated interest expense related to consolidated debt that are capitalized to consolidated development and redevelopment projects as well as to equity in unconsolidated development projects.




Cousins Properties
14
Q3 2022 Supplemental Information

PORTFOLIO STATISTICS
Office Properties (1)Rentable Square FeetFinancial Statement PresentationCompany's Ownership InterestEnd of Period LeasedWeighted Average Occupancy (2)% of Total
NOI / 3Q22
Property Level Debt (in thousands) (3)
3Q222Q223Q222Q22
Terminus (4)1,226,000 Consolidated100%89.0%87.6%83.6%88.3%7.4%$181,063 
Spring & 8th (4)765,000 Consolidated100%100.0%100.0%100.0%100.0%5.9%— 
Northpark (4)1,539,000 Consolidated100%76.4%83.4%74.2%80.0%4.2%— 
725 Ponce (6)372,000 Consolidated100%100.0%100.0%98.4%98.4%3.7%— 
Buckhead Plaza (4)666,000 Consolidated100%92.1%89.4%82.5%83.7%3.7%— 
Avalon (5)480,000 Consolidated100%99.5%99.5%99.5%99.5%3.3%— 
3344 Peachtree484,000 Consolidated100%96.9%96.9%95.3%95.3%3.1%— 
Promenade Tower777,000 Consolidated100%77.7%76.5%73.0%73.2%2.3%86,295 
3350 Peachtree413,000 Consolidated100%53.0%52.5%52.5%52.5%1.1%— 
Meridian Mark Plaza160,000 Consolidated100%100.0%100.0%100.0%100.0%1.0%— 
Emory University Hospital Midtown358,000 Unconsolidated50%99.5%99.5%97.7%97.7%0.9%31,651 
3348 Peachtree258,000 Consolidated100%74.9%81.5%74.9%81.5%0.8%— 
120 West Trinity Office (6)43,000 Unconsolidated20%90.4%90.4%90.4%90.4%0.1%— 
Promenade Central (6) (7)370,000 Consolidated100%55.3%55.3%N/AN/A—%— 
ATLANTA (7)7,911,000 86.3%87.4%83.3%85.7%37.5%299,009 
The Domain (5)1,899,000 Consolidated100%100.0%100.0%99.8%93.9%14.9%74,345 
One Eleven Congress519,000 Consolidated100%85.7%82.7%82.6%82.5%3.7%— 
San Jacinto Center399,000 Consolidated100%96.1%96.0%91.1%95.8%3.3%— 
Colorado Tower373,000 Consolidated100%95.6%100.0%87.7%80.6%2.6%109,833 
The Terrace (4)619,000 Consolidated100%80.6%79.4%72.2%72.0%2.6%— 
300 Colorado (6)378,000 Consolidated100%100.0%87.9%86.6%85.2%2.2%— 
Domain Point (4)240,000 Consolidated96.5%100.0%100.0%96.6%96.6%1.5%— 
Research Park V173,000 Consolidated100%97.1%97.1%97.1%97.1%0.9%— 
AUSTIN 4,600,000 95.0%93.8%91.0%88.3%31.7%184,178 
Corporate Center (4)1,227,000 Consolidated100%97.2%94.7%94.0%93.1%5.7%— 
Heights Union (4) (6) (8)294,000 Consolidated100%100.0%94.1%93.8%78.5%1.6%— 
The Pointe253,000 Consolidated100%94.1%91.6%90.9%91.4%1.0%— 
Harborview Plaza205,000 Consolidated100%80.8%80.8%80.8%80.3%0.7%— 
TAMPA (8)1,979,000 95.5%92.5%92.2%91.3%9.0% 
Fifth Third Center692,000 Consolidated100%90.8%90.8%90.8%90.8%3.8%130,792 
The RailYard329,000 Consolidated100%99.0%99.0%98.4%97.7%2.6%— 
550 South394,000 Consolidated100%97.9%97.9%97.9%97.9%2.1%— 
CHARLOTTE1,415,000 94.7%94.7%94.6%94.4%8.5%130,792 
Hayden Ferry (4)792,000 Consolidated100%93.7%95.2%93.1%93.4%4.9%— 
111 West Rio225,000 Consolidated100%100.0%100.0%100.0%100.0%1.1%— 
Tempe Gateway264,000 Consolidated100%68.0%77.2%68.2%64.7%0.9%— 
PHOENIX1,281,000 89.5%92.4%89.2%88.7%6.9% 
Continued on next page




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Q3 2022 Supplemental Information

PORTFOLIO STATISTICS
Office Properties (1)Rentable Square FeetFinancial Statement PresentationCompany's Ownership InterestEnd of Period LeasedWeighted Average Occupancy (2)% of Total
NOI / 3Q22
Property Level Debt (in thousands) (3)
3Q222Q223Q222Q22
Legacy Union One319,000 Consolidated100%100.0%100.0%100.0%100.0%1.9%66,180 
5950 Sherry Lane197,000 Consolidated100%71.9%76.1%71.0%75.9%0.7%— 
DALLAS516,000 89.3%90.9%88.9%90.8%2.6%66,180 
BriarLake Plaza (4)835,000 Consolidated100%77.9%76.9%74.6%74.3%2.9%— 
HOUSTON835,000 77.9%76.9%74.6%74.3%2.9% 
TOTAL OFFICE (7) (8)18,537,000 90.1%90.1%87.3%87.4%99.1%$680,159 
Other Properties (1)
College Street Garage - Charlotte (6)N/AConsolidated100%N/AN/AN/AN/A0.8%— 
120 West Trinity Apartment - Atlanta (330 units) (6) 310,000 Unconsolidated20%97.1%97.7%95.7%94.8%0.1%— 
TOTAL OTHER310,000 97.1%97.7%95.7%94.8%0.9%$ 
TOTAL (7) (8)18,847,000 90.2%90.1%87.4%87.5%100.0%$680,159 


(1)
Represents the Company's operating properties, excluding properties on the development pipeline, and properties sold prior to September 30, 2022.
(2)The weighted average economic occupancy of the property over the period for which the property was available for occupancy.
(3)
The Company's share of property-specific mortgage debt, including premiums and net of unamortized loan costs, as of September 30, 2022.
(4)Contains two or more buildings that are grouped together for reporting purposes.
(5)
Contains two or more buildings that are grouped together for reporting purposes, some of which are not included in Same Property as of September 30, 2022.
(6)
Not included in Same Property as of September 30, 2022.
(7)
While under redevelopment, Promenade Central has been excluded from the Atlanta and Total Office calculations of end of period leased and weighted average occupancy at and for the quarters ended September 30, 2022 and June 30, 2022. Promenade Central will be added back to the total calculations when weighted average occupancy stabilizes, i.e. reaches 90% occupancy or one year past completion of the redevelopment.
(8)Heights Union is a recently developed property acquired by the Company on October 1, 2021. Heights Union was excluded from the Tampa and Total Office end of period leased and weighted average occupancy calculations at and for the quarter ended June 30, 2022 because weighted average occupancy during this period was not yet stabilized.














Cousins Properties
16
Q3 2022 Supplemental Information

PORTFOLIO STATISTICS



Third Quarter 2022 Portfolio NOI by Market

supplementmapa.jpg


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




Cousins Properties
17
Q3 2022 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

($ in thousands)
Three Months Ended September 30,
20222021% Change
Rental Property Revenues (2)$168,804$165,1052.2 %
Rental Property Operating Expenses (2)60,27058,5333.0 %
Same Property Net Operating Income$108,534$106,5721.8 %
Cash-Basis Rental Property Revenues (3)$160,524$157,3682.0 %
Cash-Basis Rental Property Operating Expenses (4)60,08458,3702.9 %
Cash-Basis Same Property Net Operating Income$100,440$98,9981.5 %
End of Period Leased89.2 %92.1 %
Weighted Average Occupancy86.6 %89.7 %
Nine Months Ended September 30,
20222021% Change
Rental Property Revenues (2)$491,155$492,906(0.4)%
Rental Property Operating Expenses (2)174,262173,6840.3 %
Same Property Net Operating Income$316,893$319,222(0.7)%
Cash-Basis Rental Property Revenues (3)$471,471$469,4010.4 %
Cash-Basis Rental Property Operating Expenses (4)173,688173,1950.3 %
Cash-Basis Same Property Net Operating Income$297,783$296,2060.5 %
Weighted Average Occupancy86.8 %90.8 %


(1)
Same Properties include those office properties that were stabilized and owned by the Company for the entirety of all comparable reporting periods presented. See Portfolio Statistics on pages 15 and 16 for footnotes indicating which properties are not included in Same Property. See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.
(2)Rental Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures and exclude termination fee income. Net operating income for unconsolidated joint ventures is calculated as Rental Property Revenues less termination fee income and Rental Property Expenses at the joint ventures multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures but believes that including these amounts with consolidated net operating income is meaningful to investors and analysts.
(3)Cash-Basis Rental Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Revenues, excluding termination fee income, straight-line rents and other deferred income amortization, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)Cash-Basis Rental Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.




Cousins Properties
18
Q3 2022 Supplemental Information

OFFICE LEASING ACTIVITY

Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
NewRenewalExpansionTotalNewRenewalExpansionTotal
 Gross leased square feet (1)552,3171,718,376
 Less exclusions (2)(120,939)(375,098)
 Net leased square feet150,023 222,120 59,235 431,378523,124646,092174,0621,343,278
 Number of transactions 20 20 48565823137
 Lease term in years (3)9.4 7.5 8.7 8.38.97.58.18.1
 Net effective rent calculation (per square foot
 per year) (3)
      Net annualized rent (4) $41.94 $30.88 $36.49 $35.49$36.21 $31.99 $35.60 $34.10 
      Net free rent(1.30)(2.46)(1.83)(1.97)(1.96)(1.42)(1.47)(1.63)
      Leasing commissions (3.39)(2.45)(3.10)(2.86)(2.91)(2.71)(2.81)(2.80)
      Tenant improvements (7.64)(3.83)(7.70)(5.69)(7.75)(3.87)(6.27)(5.69)
      Total leasing costs(12.33)(8.74)(12.63)(10.52)(12.62)(8.00)(10.55)(10.12)
 Net effective rent $29.61 $22.14 $23.86 $24.97$23.59 $23.99 $25.05 $23.98 
 Second generation leased square footage (5)297,0151,021,797
 Increase in straight-line basis second generation net rent per square foot (6) 20.4 %25.3 %
 Increase in cash-basis second generation net rent per square foot (7)4.8 %10.5 %

(1)Comprised of total square feet leased, unadjusted for ownership share and excluding apartment leasing.
(2)Adjusted for leases one year or less, leases for retail, amenity, storage, percentage rent, and intercompany space.
(3)Weighted average of net leased square feet.
(4)Straight-line net rent per square foot (operating expense reimbursements deducted from gross leases) over the lease term prior to any deductions for leasing costs.
(5)
Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, and leases for spaces that have been vacant for one year or more.
(6)Increase in second generation straight-line basis net annualized rent on a weighted average basis.
(7)Increase in net cash rent at the end of the term paid by the prior tenant compared to net cash rent at the beginning of the term (after any free rent period) paid by the current tenant on a weighted average basis. For early renewals, the increase in net cash rent at the end of the term of the original lease is compared to net cash rent at the beginning of the extended term of the lease. Net cash rent is net of any recovery of operating expenses but prior to any deductions for leasing costs.




Cousins Properties
19
Q3 2022 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.
2022189,113 1.2 %$6,040 0.7 %$31.94 
20231,005,241 6.2 %43,413 5.3 %43.19 
20241,132,874 7.0 %50,668 6.1 %44.73 
20251,828,994 11.3 %83,287 10.1 %45.54 
20261,456,104 9.0 %69,848 8.5 %47.97 
20271,634,178 10.1 %71,790 8.7 %43.93 
20281,457,518 9.0 %72,468 8.8 %49.72 
20291,506,291 9.3 %72,050 8.7 %47.83 
20301,490,841 9.2 %96,787 11.7 %64.92 
2031 & Thereafter4,532,660 27.7 %258,587 31.4 %59.04 
Total16,233,814 100.0 %$824,938 100.0 %$50.82 

chart-a87465cdeb0641d38cda.jpg
(1) Company's share of leases expiring after September 30, 2022. Expiring square footage for which new leases have
     been executed is reflected based on the expiration date of the new lease.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an estimate of the tenant's share of operating expenses, if applicable, as defined in the respective leases.




Cousins Properties
20
Q3 2022 Supplemental Information

TOP 20 OFFICE TENANTS

Tenant (1)Number of Properties OccupiedNumber of Markets Occupied Company's Share of Square FootageCompany's Share of Annualized Rent
(in thousands) (2)
Percentage of Company's Share of Annualized Rent Weighted Average Remaining Lease Term (Years)
Amazon63971,879 $49,483 7.1%6.5
NCR Corporation11762,090 37,564 5.4%10.9
Meta Platforms 11422,252 23,818 3.4%7.4
Pioneer Natural Resources21359,660 23,336 3.3%8.9
Expedia11315,882 17,281 2.5%8.5
Bank of America22347,139 12,071 1.7%3.2
Wells Fargo 43198,270 8,937 1.3%3.3
Apache 11210,012 8,850 1.3%2.1
SVB Financial Group11204,751 8,432 1.2%3.3
10 Ovintiv USA11318,582 8,190 1.2%4.8
11 WeWork Companies42169,050 7,695 1.1%11.0
12 ADP11225,000 7,479 1.1%5.5
13 Westrock Shared Services11205,185 7,172 1.0%7.6
14 Regus Equity Business Centers54145,119 6,974 1.0%5.9
15 BlackRock11131,656 6,653 1.0%13.7
16 Workrise Technologies1193,210 6,652 1.0%5.8
17 McGuireWoods22187,119 6,556 0.9%4.2
18 Amgen11163,169 6,204 0.9%6.1
19 Samsung Engineering America11133,860 5,996 0.9%4.2
20 Time Warner Cable42120,140 5,810 0.7%3.3
Total5,684,025 $265,153 38.0%6.8
(1)In some cases, the actual tenant may be an affiliate of the entity shown.
(2)
Annualized Rent represents the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, paid by the tenant as of September 30, 2022. If the tenant is in a free rent period as of September 30, 2022, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full cash rent.
Note:This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.






Cousins Properties
21
Q3 2022 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION
chart-7bdb15b0ac2c48feb96a.jpg

Note: Management uses SIC codes when available, along with judgment, to determine tenant industry classification.
(1) Annualized Rent represents the annualized rent including the tenant's share of estimated operating expenses, if applicable, paid by the tenant as of September 30, 2022. If the tenant is in a free rent period as of September 30, 2022, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full rent.





Cousins Properties
22
Q3 2022 Supplemental Information

INVESTMENT ACTIVITY


Completed Operating Property Acquisitions
PropertyTypeMarketCompany's Ownership InterestTimingSquare FeetGross Purchase Price
(in thousands) (1)
2022
Avalon (2)OfficeAtlanta100%2Q480,000 $43,400 
2021
725 PonceOfficeAtlanta100%3Q372,000 300,200 
Heights UnionOfficeTampa100%4Q294,000 144,800 
2020
The RailYardOfficeCharlotte100%4Q329,000 201,300 
2019
Promenade Central OfficeAtlanta100%1Q370,000 82,000 
TIER REIT, Inc.OfficeVariousVarious2Q5,799,000 (3)
Terminus (4)OfficeAtlanta100%4Q1,226,000 246,000 
8,870,000 $1,017,700 
Completed Property Developments
ProjectTypeMarketCompany's Ownership InterestTimingSquare FeetTotal Project Cost (in thousands) (1)
2022
300 ColoradoOfficeAustin100%1Q369,000 $193,000 
2021
10000 AvalonOfficeAtlanta90%1Q251,000 96,000 
120 West TrinityMixedAtlanta20%2Q353,000 89,000 
Domain 10OfficeAustin100%3Q300,000 111,000 
2020
Domain 12OfficeAustin100%4Q320,000 117,000 
2019
Dimensional PlaceOfficeCharlotte50%1Q281,000 96,000 
2018
Spring & 8thOfficeAtlanta100%1Q/4Q765,000 336,000 
2,639,000 $1,038,000 
(1) Except as otherwise noted, amounts represent total purchase prices, total project cost paid by the Company and, where applicable, its joint venture partner,
including certain allocated costs required by GAAP that were not incurred by the joint venture.
(2) Purchased outside interest of 10% in HICO Avalon LLC and HICO Avalon II LLC for $43 million in a transaction that valued the properties at $302 million.
(3) Properties acquired in the merger with TIER REIT, Inc.
(4) Purchased outside interest of 50% in Terminus Office Holdings, LLC for $246 million before reductions for existing mortgage debt.






Cousins Properties
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Q3 2022 Supplemental Information

INVESTMENT ACTIVITY


Completed Operating Property Dispositions


PropertyTypeMarketCompany's Ownership InterestTimingSquare FeetGross Sales Price
(in thousands)
2022
Carolina SquareMixedCharlotte50%3Q468,000 $105,000 (1)
2021
Burnett PlazaOfficeFort Worth100%2Q1,023,000 137,500 
One South at the PlazaOfficeCharlotte100%3Q891,000 271,500 
Dimensional Place OfficeCharlotte50%3Q281,000 60,800 (1)
816 CongressOfficeAustin100%4Q435,000 174,000 
2020
Hearst TowerOfficeCharlotte100%1Q966,000 455,500 
Gateway Village OfficeCharlotte50%1Q1,061,000 52,200 (1)
WoodcrestOfficeCherry Hill100%1Q386,000 25,300 
5,511,000 $1,281,800 



(1) Amount represents proceeds, before debt and other adjustments, received by the Company for the sale of its unconsolidated interest in the joint venture to its partner.






Cousins Properties
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Q3 2022 Supplemental Information

DEVELOPMENT PIPELINE (1)

ProjectTypeMarketCompany's Ownership InterestConstruction Start DateSquare Feet/UnitsEstimated 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 LeasedInitial Revenue Recognition (3)Estimated Stabilization (4)
100 MillOfficePhoenix90 %1Q20287,000$156,000 $140,400 $145,221 $130,699 92 %2Q224Q22
Neuhoff (5)MixedNashville50 %3Q21563,000 281,500 276,488 138,244 
Commercial448,000— %3Q233Q24
Apartments542— %2Q242Q25
Domain 9OfficeAustin100 %2Q21338,000147,000 147,000 99,720 99,720 97 %1Q241Q25
Total $866,000 $568,900 $521,429 $368,663 



(1)This schedule shows projects currently under active development through the substantial completion of construction as well as properties in an initial lease up period prior to stabilization. Amounts included in the estimated project cost column are the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates.
(2)Estimated and incurred project costs are construction costs plus financing costs on project-specific debt. Neuhoff has a project-specific construction loan (see Note 5). The above schedule excludes any financing cost assumptions for projects without project-specific debt and any other incremental capitalized costs required by GAAP. It also excludes fair value adjustments related to the acquisition of a project.
(3)Initial revenue recognition represents the quarter within which the Company first recognized or estimates it will begin recognizing revenue under GAAP.
(4)Estimated stabilization is the quarter within which the Company estimates it will achieve 90% economic occupancy. The Company capitalizes interest, real estate taxes, and certain operating expenses on the unoccupied portion of recently completed development properties until the date a project is substantially complete and held for occupancy, which is the earlier of (1) the date on which the project achieves 90% economic occupancy, or (2) one year from cessation of major construction activity.
(5)The Neuhoff estimated project cost will be funded with a combination of $250.6 million of equity contributed by the joint venture partners and a $312.7 million construction loan.







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25
Q3 2022 Supplemental Information

LAND INVENTORY



MarketCompany's Ownership InterestFinancial Statement PresentationTotal Developable Land (Acres)Cost Basis of Land (in thousands)
3354/3356 PeachtreeAtlanta95%Consolidated3.2 
715 PonceAtlanta50%Unconsolidated1.0 
887 West Peachtree (1)Atlanta100%Consolidated1.6 
The Avenue Forsyth-Adjacent LandAtlanta100%Consolidated10.4 
Domain Point 3Austin90%Consolidated1.7 
Domain CentralAustin100%Consolidated5.6 
South End StationCharlotte100%Consolidated3.4 
303 TremontCharlotte100%Consolidated2.4 
Legacy Union 2 & 3Dallas95%Consolidated4.0 
Corporate Center 5 & 6 (2)Tampa100%Consolidated14.1 
Total47.4 $166,515 
159351
Company's Share46.4 $159,710 




(1)Includes a ground lease with future obligation to purchase.
(2)Corporate Center 5 is controlled through a long-term ground lease.









Cousins Properties
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Q3 2022 Supplemental Information

DEBT SCHEDULE (1)
Company's Share of Debt Maturities and Principal Payments
($ in thousands)
Description (Interest Rate Base, if not fixed)Company's Ownership InterestRate at End of QuarterMaturity Date20222023202420252026ThereafterTotal PrincipalDeferred Loan Costs Above Market PremiumTotal
Consolidated Debt - Floating Rate
Credit Facility, Unsecured (Adjusted SOFR +
  0.90% to 1.40%) (2)
100%3.98%4/30/27301,200301,200— — 301,200 
Total Consolidated Floating Rate Debt301,200301,200— — 301,200 
Consolidated Debt - Fixed Rate
Term Loan, Unsecured (3)100%5.38%8/30/24350,000350,000(1,255)— 348,745 
Senior Note, Unsecured100%3.95%7/6/29275,000275,000(758)— 274,242 
Senior Note, Unsecured100%3.91%7/6/25250,000250,000(504)— 249,496 
Senior Note, Unsecured100%3.86%7/6/28250,000250,000(651)— 249,349 
Fifth Third Center 100%3.37%10/1/268873,6223,7463,874118,926131,055(263)— 130,792 
Senior Note, Unsecured100%3.78%7/6/27125,000125,000(302)— 124,698 
Colorado Tower 100%3.45%9/1/266582,6892,7832,881101,199110,210(377)— 109,833 
Terminus 100100%5.25%1/1/23892108,181109,073— 645 109,718 
Senior Note, Unsecured100%4.09%7/6/27100,000100,000(249)— 99,751 
Promenade Tower (4)100%4.27%10/1/2286,29586,295— — 86,295 
Domain 10100%3.75%11/1/244791,96372,55875,000(655)— 74,345 
Terminus 200100%3.79%1/1/2347270,70071,172— 173 71,345 
Legacy Union One (4)100%4.24%1/1/2366,00066,000— 180 66,180 
Total Consolidated Fixed Rate Debt89,683253,155429,087256,755220,125750,0001,998,805(5,014)998 1,994,789 
Total Consolidated Debt89,683253,155429,087256,755220,1251,051,2002,300,005(5,014)998 2,295,989 
Unconsolidated Debt - Floating Rate
Neuhoff (LIBOR + 3.60%) (5)50%5.18%9/30/2547,13847,138(1,847)— 45,291 
Total Unconsolidated Floating Rate Debt47,13847,138(1,847)— 45,291 
.
Unconsolidated Debt - Fixed Rate
Emory University Hospital Midtown50%3.50%6/1/2322931,43631,665(14)— 31,651 
Total Unconsolidated Fixed Rate Debt22931,43631,665(14)— 31,651 
Total Unconsolidated Debt22931,43647,13878,803(1,861)— 76,942 
Total Debt$89,912$284,591$429,087$303,893$220,125$1,051,200$2,378,808$(6,875)$998 $2,372,931 
Total Maturities (6)$86,295$275,932$420,865$297,138$215,159$1,056,000$2,351,389
% of Maturities%12 %18 %13 %%45 %100 %





Cousins Properties
27
Q3 2022 Supplemental Information

DEBT SCHEDULE (1)
chart-60e422bca4254bc98daa.jpg







Cousins Properties
28
Q3 2022 Supplemental Information

DEBT SCHEDULE (1)



Floating and Fixed Rate Debt Analysis

Total Principal
(in thousands)
Total Debt (%)Weighted Average Interest RateWeighted Average Maturity (Years)
Floating Rate Debt$348,338 15 %4.14 %4.4 
Fixed Rate Debt2,030,470 85 %3.74 %3.4 
Total Debt$2,378,808 100 %3.80 %3.6 







(1)All amounts are presented at Company share.
(2)
As of September 30, 2022, the Company had $301.2 million drawn under the Credit Facility and had the ability to borrow the remaining $698.8 million. The spread over Adjusted SOFR under the Credit Facility at September 30, 2022 was 0.90%.
(3)
In the third quarter, the Company entered into a floating-to-fixed interest rate swap through the maturity date effectively fixing the underlying SOFR rate at 4.23%. The spread over Adjusted SOFR at September 30, 2022 was 1.05%.
(4)These mortgages were paid off in full and without penalty on October 3, 2022.
(5)The Company's share of the total borrowing capacity of the construction loan is $156.4 million.
(6)Maturities include principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.




Cousins Properties
29
Q3 2022 Supplemental Information

JOINT VENTURE INFORMATION (1)


Joint VenturePropertyCash Flows to Cousins (2)Options
Consolidated:
HICO 100 Mill LLC 100 Mill90% of cash flows until return of contributed capital to Partners; portions of cash amounts received in excess of contributed capital are paid to our partner as a promoteCousins can trigger a sale process following construction completion, subject to a right of first offer that can be exercised by Partner.
TR Domain Point LLCDomain PointPreferred return on preferred equity contribution, then 96.5% of remaining cash flows.Partner has put option beginning Q1 2023 under various circumstances.
Unconsolidated:
AMCO 120 WT Holdings LLC120 West Trinity20% of cash flows.Cousins or Partner can trigger a buyout upon which Cousins would receive the office component, and Partner would receive the multifamily component, with a net settlement at a then agreed upon value.
Crawford Long-CPI, LLCEmory University Hospital Midtown50% of cash flows.Cousins can put its interest to Partner, or Partner can call Cousins' interest, at a value determined by appraisal.
Neuhoff Holdings LLC Neuhoff50% of cash flows until return of contributed capital to Partners; portions of cash amounts received in excess of contributed capital are paid to a partner as a promoteCousins or Partner can trigger a sale process, subject to a right of first offer that can be exercised by the non-triggering party.



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




Cousins Properties
30
Q3 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
FFO and EBITDAre
Net income available to common stockholders$237,278 $29,110 $28,153 $54,018 $167,305 $278,586 $27,984 $34,052 $80,639 $142,675 
Depreciation and amortization of real estate assets:
Consolidated properties287,960 70,712 71,299 71,918 73,540 287,469 70,589 69,703 78,978 219,270 
Share of unconsolidated joint ventures8,740 2,365 2,810 2,917 1,582 9,674 1,124 1,111 1,189 3,424 
Partners' share of real estate depreciation(742)(211)(228)(231)(259)(929)(223)(153)(182)(558)
(Gain) loss on depreciated property transactions:
Consolidated properties(90,105)17 (13,127)(139,510)(152,611)69 (28)20 61 
Share of unconsolidated joint ventures(450)— 23 13 39 (124)40  (84)
Sale of investments in unconsolidated joint ventures(44,578)(39)— (13,121)77 (13,083)— — (56,260)(56,260)
Impairment14,829 — — — — — — —   
Non-controlling interest related to unitholders315 36 56 26 38 
FFO413,247 101,960 102,051 102,406 102,784 409,201 99,425 104,731 104,410 308,566 
Interest Expense62,676 17,723 17,519 17,513 17,183 69,938 16,142 17,238 19,390 52,770 
Non-Real Estate Depreciation and Amortization688 158 157 156 152 623 155 158 138 451 
EBITDAre (1)
476,611 119,841 119,727 120,075 120,119 479,762 115,722 122,127 123,938 361,787 
Income from Unconsolidated Joint Ventures
Net Operating Income
Office Properties15,625 3,785 4,338 4,835 2,236 15,194 1,566 1,607 1,647 4,820 
Other Properties3,211 969 1,099 927 1,034 4,029 1,153 935 1,172 3,260 
Net Operating Income18,836 4,754 5,437 5,762 3,270 19,223 2,719 2,542 2,819 8,080 
Gain (loss) on sale of undepreciated property(598)— — — — — — 4,500 (22)4,478 
Interest Expense(2,071)(515)(863)(804)(729)(2,911)(617)(689)(1,010)(2,316)
Termination Fee Income— 74 — 81 — —   
Other Income61 29 27 36 29 121 22 78 36 136 
Funds from Operations - Unconsolidated Joint Ventures16,237 4,268 4,608 5,068 2,570 16,514 2,124 6,431 1,823 10,378 
Gain (loss) on sale of depreciated investment properties, net450 — (3)(23)(13)(39)124 (40) 84 
Depreciation and Amortization of Real Estate(8,740)(2,365)(2,810)(2,917)(1,582)(9,674)(1,124)(1,111)(1,189)(3,424)
Income from Unconsolidated Joint Ventures7,947 1,903 1,795 2,128 975 6,801 1,124 5,280 634 7,038 
Market Capitalization
Common Stock Price at Period End$33.50 $35.35 $36.78 $37.29 $40.28 $40.28 $40.29 $29.23 $23.35 $23.35 
Number of Common Stock/Units Outstanding at
Period End
148,589 148,679 148,713 148,713 148,713 148,713 148,788 151,465 151,459 151,459 
Equity Market Capitalization4,977,732 5,255,803 5,469,664 5,545,508 5,990,160 5,990,160 5,994,669 4,427,322 3,536,568 3,536,568 
Consolidated Debt2,162,719 2,214,692 2,050,173 2,047,599 2,237,509 2,237,509 2,349,484 2,305,637 2,295,989 2,295,989 
Share of Unconsolidated Debt115,040 144,168 145,480 158,707 112,805 112,805 112,713 119,702 76,942 76,942 
Debt (1)2,277,759 2,358,860 2,195,653 2,206,306 2,350,314 2,350,314 2,462,197 2,425,339 2,372,931 2,372,931 
Total Market Capitalization7,255,491 7,614,663 7,665,317 7,751,814 8,340,474 8,340,474 8,456,866 6,852,661 5,909,499 5,909,499 
Continued on next page




Cousins Properties
31
Q3 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
Credit Ratios
Debt (1) 2,277,759 2,358,860 2,195,653 2,206,306 2,350,314 2,350,314 2,462,197 2,425,339 2,372,931 2,372,931 
Less: Cash and Cash Equivalents(4,290)(14,576)(9,792)(5,532)(8,937)(8,937)(7,000)(4,057)(5,507)(5,507)
Less: Share of Unconsolidated Cash and Cash Equivalents (1)(9,419)(7,518)(7,598)(20,492)(4,285)(4,285)(9,217)(13,110)(10,894)(10,894)
Net Debt (1)2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980 2,408,172 2,356,530 2,356,530 
Total Market Capitalization7,255,491 7,614,663 7,665,317 7,751,814 8,340,474 8,340,474 8,456,866 6,852,661 5,909,499 5,909,499 
Net Debt / Total Market Capitalization31.2 %30.7 %28.4 %28.1 %28.0 %28.0 %28.9%35.1 %39.9 %39.9 %
Total Assets - Consolidated7,107,398 7,106,182 6,945,970 6,977,364 7,312,034 7,312,034 7,360,095 7,380,124 7,496,072 7,496,072 
Accumulated Depreciation - Consolidated1,090,566 1,164,427 975,658 1,054,847 1,065,047 1,065,047 1,110,315 1,158,044 1,218,996 1,218,996 
Undepreciated Assets - Unconsolidated (1)304,539 303,472 302,630 238,455 204,423 204,423 221,851 257,685 204,033 204,033 
Less: Investment in Unconsolidated Joint Ventures(125,481)(113,353)(112,718)(111,351)(77,811)(77,811)(93,307)(103,215)(106,389)(106,389)
Total Undepreciated Assets (1)8,377,022 8,460,728 8,111,540 8,159,315 8,503,693 8,503,693 8,598,954 8,692,638 8,812,712 8,812,712 
Net Debt (1)2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980 2,408,172 2,356,530 2,356,530 
Net Debt / Total Undepreciated Assets (1)27.0 %27.6 %26.9 %26.7 %27.5 %27.5 %28.4%27.7 %26.7 %26.7 %
Coverage Ratios (1)
Interest Expense62,676 17,723 17,519 17,513 17,183 69,938 16,142 17,238 19,390 52,770 
Scheduled Principal Payments16,812 4,370 4,544 4,587 4,630 18,131 4,675 4,719 4,764 14,158 
Fixed Charges79,488 22,093 22,063 22,100 21,813 88,069 20,817 21,957 24,154 66,928 
EBITDAre
476,611 119,841 119,727 120,075 120,119 479,762 115,722 122,127 123,938 361,787 
Fixed Charges Coverage Ratio (EBITDAre) (1)
6.00 5.42 5.43 5.43 5.51 5.45 5.56 5.56 5.13 5.41 
Net Debt2,264,050 2,336,766 2,178,263 2,180,282 2,337,092 2,337,092 2,445,980 2,408,172 2,356,530 2,356,530 
Annualized EBITDAre (2)
467,300 479,364 478,908 480,300 480,476 480,476 462,888 488,508 495,752 495,752 
Net Debt / Annualized EBITDAre
4.84 4.87 4.55 4.54 4.86 4.86 5.28 4.93 4.75 4.75 
Dividend Information
Common Dividends178,263 46,135 46,038 46,094 46,909 185,176 48,447 48,523 48,398 145,368 
FFO413,247 101,960 102,051 102,406 102,784 409,201 99,425 104,731 104,410 308,566 
FFO Payout Ratio43.1 %45.2 %45.1 %45.0 %45.6 %45.3 %48.7%46.3 %46.4 %47.1 %
Continued on next page




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Q3 2022 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
20202021 1st2021 2nd2021 3rd2021 4th20212022 1st2022 2nd2022 3rdYTD 2022
FFO413,247 101,960 102,051 102,406 102,784 409,201 99,425 104,731 104,410 308,566 
Amortization of Deferred Financing Costs2,777 698 698 834 833 3,063 973 923 818 2,714 
Non-Cash Stock-Based Compensation5,298 1,667 1,708 1,800 1,830 7,005 2,748 2,448 2,299 7,495 
Non-Real Estate Depreciation and Amortization688 158 157 156 152 623 155 158 138 451 
Lease Inducements1,018 1,035 1,032 1,128 239 3,434 351 375 440 1,166 
Straight-Line Rent Ground Leases490 112 112 113 112 449 124 121 121 366 
Above and Below Market Ground Rent158 39 40 39 41 159 92 82 82 256 
Transaction Costs (3)428 — — — — — — —   
Debt Premium Amortization(3,664)(916)(916)(916)(916)(3,664)(916)(998)(998)(2,912)
Deferred Income - Tenant Improvements(7,532)(2,683)(2,769)(2,728)(1,250)(9,430)(633)(611)(3,139)(4,383)
Above and Below Market Rents, Net(12,126)(2,374)(2,407)(2,973)(3,008)(10,762)(1,771)(1,669)(1,538)(4,978)
Second Generation Capital Expenditures (CAPEX)(90,393)(11,452)(22,817)(24,275)(23,098)(81,642)(21,280)(24,324)(26,636)(72,240)
Straight-Line Rental Revenue(40,437)(7,734)(5,509)(6,549)(5,029)(24,821)(5,501)(6,378)(8,966)(20,845)
Loss (Gain) on Sales of Undepreciated Investment Properties(612)— 64 — 64 — (4,500)22 (4,478)
          FAD (1)269,340 80,510 71,380 69,099 72,690 293,679 71,951 68,776 67,053 211,178 
Weighted Average Shares - Diluted148,636 148,725 148,740 148,772 148,905 148,891 149,002 149,142 151,695 149,946 
FAD per share$1.81 $0.54 $0.48 $0.46 $0.49 $1.97 $0.48 $0.46 $0.44 $1.41 
Common Dividends178,263 46,135 46,038 46,094 46,909 185,176 48,447 48,523 48,398 145,368 
Common Dividends per share$1.20 $0.31 $0.31 $0.31 $0.31 $1.24 $0.32 $0.32 $0.32 $0.96 
          FAD Payout Ratio 66.2 %57.3 %64.5 %66.7 %64.5 %63.1 %67.3%70.6 %72.2 %68.8 %
Operations Ratio
Total Undepreciated Assets (1)8,377,022 8,460,728 8,111,540 8,159,315 8,503,693 8,503,693 8,598,954 8,692,638 8,812,712 8,812,712 
General and Administrative Expenses27,034 6,733 7,313 7,968 7,307 29,321 8,063 6,996 6,498 21,557 
Annualized General and Administrative Expenses (2) / Total Undepreciated Assets0.32 %0.32 %0.36 %0.39 %0.34 %0.34 %0.38%0.32 %0.29 %0.29 %
2nd Generation CAPEX
Second Generation Leasing Related Costs70,694 8,617 16,994 17,626 15,671 58,908 13,898 20,524 19,136 53,558 
Second Generation Building Improvements19,699 2,835 5,823 6,649 7,427 22,734 7,382 3,800 7,500 18,682 
90,393 11,452 22,817 24,275 23,098 81,642 21,280 24,324 26,636 72,240 
(1) Includes the Company's share of unconsolidated joint ventures. These amounts are derived from the amounts in the categories indicated that are recorded at the joint venture multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures but believes that including these amounts in the categories indicated is meaningful to investors and analysts.
(2) Amounts represent most recent quarter annualized.
(3) In 2020, transaction costs relate primarily to the merger with TIER REIT, Inc.
Note: Amounts may differ slightly from other schedules contained herein due to rounding.








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NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
FUNDS FROM OPERATIONS

(in thousands, except per share amounts)
 
Three Months Ended September 30,
 
2022
2021
DollarsWeighted Average Common SharesPer Share AmountDollarsWeighted Average Common SharesPer Share Amount
Net Income Available to Common Stockholders$80,639 151,435$0.53 $54,018 148,688 $0.36 
Noncontrolling interest related to unitholders 26 25 25 — 
Conversion of unvested restricted stock units 235 — 59 — 
Net Income — Diluted 80,665 151,6950.53 54,027 148,772 0.36 
Depreciation and amortization of real estate assets:
Consolidated properties78,978  0.52 71,918 — 0.49 
Share of unconsolidated joint ventures1,189  0.01 2,917 — 0.02 
Partners' share of real estate depreciation(182)  (231)— — 
Loss (gain) on depreciated property transactions:
Consolidated properties20   (13,127)— (0.09)
Share of unconsolidated joint ventures   23 — — 
Investments in unconsolidated joint ventures(56,260) (0.37)(13,121)— (0.09)
Funds From Operations$104,410 151,695 $0.69 $102,406 148,772 $0.69 




















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NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS


(in thousands, except per share amounts)
 Nine Months Ended September 30,
 
2022
2021
DollarsWeighted Average Common SharesPer Share AmountDollarsWeighted Average Common SharesPer Share Amount
Net Income Available to Common Stockholders$142,675 149,670$0.95 $111,281 148,659 $0.75 
Noncontrolling interest related to unitholders 38 25 20 25 — 
Conversion of stock options  — — 
Conversion of unvested restricted stock units 251 — 58 — 
Net Income — Diluted 142,713 149,9460.95 111,301 148,743 0.75 
Depreciation and amortization of real estate assets:
Consolidated properties219,270  1.46 213,929 — 1.44 
Share of unconsolidated joint ventures3,424  0.02 8,092 — 0.05 
Partners' share of real estate depreciation(558)  (670)— — 
Loss (gain) on depreciated property transactions:
Consolidated properties61   (13,101)— (0.09)
Share of unconsolidated joint ventures(84)  26 — — 
Investments in unconsolidated joint ventures(56,260) (0.37)(13,160)— (0.09)
Funds From Operations$308,566 149,946 $2.06 $306,417 148,743 $2.06 

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

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





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NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

(in thousands)
Three Months EndedNine Months Ended
Net Operating Income
September 30, 2022
September 30, 2021September 30, 2022September 30, 2021
Net income$80,769 $54,136 $143,096 $111,507 
Net operating income from unconsolidated joint ventures2,819 5,762 8,080 15,953 
Fee income(1,677)(3,094)(5,370)(12,426)
Termination fee income(242)(1,775)(2,153)(2,599)
Other income(38)(123)(2,522)(405)
Reimbursed expenses418 383 1,455 1,149 
General and administrative expenses6,498 7,968 21,557 22,014 
Interest expense18,380 16,709 50,454 50,573 
Depreciation and amortization79,116 72,073 219,721 214,399 
Other expenses231 421 877 1,835 
Income from unconsolidated joint ventures(634)(2,128)(7,038)(5,826)
Gain on sale of investment in unconsolidated joint ventures(56,260)(13,121)(56,260)(13,160)
Loss (gain) on investment property transactions20 (13,063)61 (13,037)
Loss on extinguishment of debt — 100 — 
Net Operating Income129,400 124,148 372,058 369,977 
Less:
Partners' share of NOI from consolidated joint ventures(347)(455)(1,107)(870)
Cousins' share of NOI$129,053 $123,693 $370,951 $369,107 
 
Net Operating Income$129,400 $124,148 $372,058 $369,977 
Non-cash income(13,531)(10,138)(30,367)(30,665)
Non-cash expense229 151 721 455 
Cash-Basis Net Operating Income$116,098 $114,161 $342,412 $339,767 
Net Operating Income
Same Property$108,534 $106,572 $316,893 $319,222 
Non-Same Property20,866 17,576 55,165 50,755 
$129,400 $124,148 $372,058 $369,977 
Cash-Basis Net Operating Income
Same Property$100,440 $98,998$297,783 $296,206 
Non-Same Property15,658 15,163 44,629 43,561 
$116,098 $114,161 $342,412 $339,767 









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NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS





RECONCILIATION OF 2022 PROJECTED NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS TO 2022 PROJECTED FFO




Full Year 2022 Guidance
(in thousands, except per share amounts)
LowHigh
DollarsPer Share Amount (1)DollarsPer Share Amount (1)
Net Income Available to Common Stockholders and Net Income$166,199 1.10 $172,199 $1.14 
Add: Noncontrolling interest related to unitholders— — — — 
Net Income166,199 1.10 172,199 1.14 
Add: Depreciation and amortization of real estate assets295,000 1.96 295,000 1.96 
Add: Loss on sale of investment properties61 — 61 — 
Less: Gain on sale of investments in joint ventures(56,260)(0.37)(56,260)(0.37)
Funds From Operations$405,000 $2.69 $411,000 $2.73 
(1) Calculated based on projected weighted average shares outstanding of 150.4 million.













Cousins Properties
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NON-GAAP FINANCIAL MEASURES - DEFINITIONS
The Company uses non-GAAP financial measures in its filings and other public disclosures. The following lists non-GAAP financial measures that the Company commonly uses, a description for each measure, the reasons that management believes the measure is useful to investors and, if material, additional uses of the measure by management of the Company.
“Cash-Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements, amortization of acquired above and below market rents, and non-cash ground lease expense.
“EBITDAre is a supplemental operating performance measure used in the real estate industry. The Company calculates EBITDAre in accordance with the Nareit definition, which is net income (loss) available to common stockholders (computed in accordance with GAAP) plus interest expense, income tax expense, depreciation and amortization, losses (gains) on the disposition of depreciated property, and impairment. All additions include the Company's share of unconsolidated joint ventures. Management believes that EBITDAre provides analysts and investors with uniform and appropriate information to use in various ratios that evaluate the Company's level of debt.
"Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of non-cash items and transaction costs and include deductions for second generation Capital Expenditures ("CAPEX"). Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company's dividend policy with other real estate companies.
“Funds From Operations” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the Nareit definition: net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, impairment on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. FFO is used by industry analysts and investors as a supplemental measure of an equity REIT's operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, Nareit created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, as a performance measure for incentive compensation to its officers and other key employees.
“Net Debt” represents the Company's consolidated debt plus the Company's share of unconsolidated debt, less consolidated cash and cash equivalents and our share of unconsolidated cash and cash equivalents. The Company believes excluding cash and cash equivalents from total debt provides an estimate of the net contractual amount of borrowed capital to be repaid, which it believes is a beneficial disclosure to investors and analysts.
“Net Operating Income” ("NOI") is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. NOI, which is rental property revenues (excluding termination fee income) less rental property operating expenses, excludes certain components from net income in order to provide results that are more closely related to a property's results of operations. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property's performance. Depreciation, amortization, and impairment are also excluded from NOI for the reasons described under FFO above.
“Same Property Net Operating Income” represents Net Operating Income or Cash-Basis Net Operating Income for those office properties that were stabilized and owned by the Company for the entirety of all comparable reporting periods presented. A stabilized property is one that has achieved 90% economic occupancy or has been substantially complete and owned by the Company for one year. Same Property Net Operating Income or Cash-Basis Same Property Net Operating Income allows analysts, investors, and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio.
“Second Generation Tenant Improvements and Leasing Costs and Building CAPEX” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space in newly acquired buildings, leasing costs for spaces that have been vacant for one year or more, building improvements on newly acquired buildings that management identifies as necessary to bring the building to the Company's operational standards, and leasing costs and building improvements associated with properties identified as under redevelopment or repositioning. In addition, the Company excludes building improvements intended to attract tenants to increase revenues and/or occupancy rates.




Cousins Properties
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