Cousins Properties Inc.

04/25/2024 | Press release | Distributed by Public on 04/25/2024 14:28

Credit Agreement - Form 8-K

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, 2023, and the Quarterly Report
on Form 10-Q for the quarter ended March 31, 2024. These forward-looking statements include information about the Company's 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; future issuances and repurchases of common stock, limited partnership units, or preferred
stock; future distributions; projected capital expenditures; market and industry trends; future occupancy or volume and velocity of leasing activity; entry into
new markets, changes in existing market concentrations, or exits from existing markets; future changes in interest rates and liquidity of capital markets; and all
statements that address operating performance, events, investments, 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; any changes to our credit rating; the failure of purchase, sale, or other contracts to ultimately close; the
failure to achieve anticipated benefits from acquisitions, developments, investments, or dispositions; the effect of common stock or operating partnership unit
issuances, including those undertaken on a forward basis; 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, Tampa, Charlotte, Phoenix, Dallas, and Nashville, including the impact of high unemployment, volatility in the public equity and
debt markets, and international economic and other conditions; threatened terrorist attacks or 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 preferences 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 or liquidity of one
or more of our tenants; volatility in interest rates (including the impact upon the effectiveness of forward interest rate contract arrangements) and insurance
rates; inflation; 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); supply chain disruptions, labor shortages, and increased construction costs; risks
associated with security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology
networks and related systems, which support our operations and our buildings; 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, including the Americans with Disabilities Act and similar laws or the impact of any investigation regarding the same; 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 or meet regulatory requirements; potential changes to state, local, or federal regulations applicable to our business;
material changes in dividend rates on common shares or other securities or the ability to pay those dividends; potential changes to the tax laws impacting
REITs and real estate in general; risks associated with climate change and severe weather events, as well as the regulatory efforts intended to reduce the
effects of climate changes and investor and public perception of our efforts to respond to the same; the impact of newly adopted accounting principles on our
accounting policies and on period-to-period comparisons of financial results; risks associated with possible federal, state, local, or property tax audits; and
those additional risks and environmental or other factors discussed in reports filed with the Securities and Exchange Commission ("SEC") by the Company.
FORWARD-LOOKING STATEMENTS
Cousins Properties
2
Q1 2024 Supplemental Information
The risks set forth above are not exhaustive. The Annual Report on Form 10-K for the year ended December 31, 2023, including Part 1, Item 1A. Risk
Factors, includes additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly
changing environment. New risk factors emerge from time to time and it is not possible for management to predict all risk factors, nor can we assess the
potential impact of all risk factors on our business or the extent to which any factors, or any combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements. 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. Given the uncertainties
and risks discussed and referenced herein, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Investors
should also refer to our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K for future periods, and our Current Reports on Form 8-K as we
file such reports with the SEC, and to other materials we may file with or furnish to the SEC, for a discussion of risks and uncertainties that may cause actual
results, performance, or achievements to differ materially from those expressed or implied by any forward-looking statements. 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.
FORWARD-LOOKING STATEMENTS
Cousins Properties
3
Q1 2024 Supplemental Information
COUSINS PROPERTIES REPORTS FIRST QUARTER 2024 RESULTS
Raises Midpoint of Full Year 2024 FFO Guidance by $0.015 per share
ATLANTA (April 25, 2024) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended March 31,
2024.
"Our first quarter results were outstanding, driven by strong same-property performance in our lifestyle office portfolio," said Colin
Connolly, president and chief executive officer of Cousins Properties."We are also pleased to have been assigned solid investment grade
credit ratings from S&P and Moody's, acknowledging the quality of our Sun Belt trophy portfolio and the strength of our balance sheet.
These ratings provide us with another important tool as we execute our capital strategy. Looking ahead, we are raising our FFO
guidance as office utilization in our markets continues to recover."
Financial Results
For first quarter 2024:
•Net income available to common stockholders was $13.3 million, or $0.09 per share, compared to $22.2 million, or $0.15 per
share, for first quarter 2023.
•Funds From Operations ("FFO") was $99.5 million, or $0.65 per share, compared to $98.1 million, or $0.65 per share, for first
quarter 2023.
Operations and Leasing Activity
For first quarter 2024:
•Same property net operating income ("NOI") on a cash-basis increased 6.6%.
•Second generation net rent per square foot on a cash-basis increased 5.3%.
•Executed 404,000 square feet of office leases, including 286,000 square feet of new and expansion leases, representing 71% of
total leasing activity.
•Negotiations regarding our four leases with WeWork continue to progress, including the completion of a restructure of
WeWork's lease at Terminus in Atlanta. Our assumed outcome for each lease remains consistent with prior guidance.
Financing Activity
•In April 2024, we received corporate investment grade credit ratings of BBB and Baa2 from S&P and Moody's, respectively.
•We entered into a floating-to-fixed interest rate swap on the remaining $200 million of the $400 million Term Loan maturing
March 2025, fixing the underlying SOFR rate at 4.6675%. With this execution, the entire $400 million Term Loan is now fixed at a
blended underlying SOFR rate of 4.483% through initial maturity.
EARNINGS RELEASE
Cousins Properties
4
Q1 2024 Supplemental Information
Earnings Guidance
Full year 2024 earnings guidance updated as follows:
•Net income between $0.32 and $0.39 per share.
•FFO between $2.60 and $2.67 per share.
•The increase in FFO is primarily driven by higher parking revenues and termination fees.
•Guidance does not include any benefit from our approximately $9.6 million SVB Financial Group bankruptcy claim.
•Guidance does not include any operating property acquisitions, operating property dispositions, or development starts.
•Guidance does not include any capital markets transactions.
•Guidance reflects management's current plans and assumptions as of the date of this earnings release and is subject to the risks
and uncertainties more fully described in our Securities and Exchange Commission filings. Actual results could differ materially
from this guidance.
Investor Conference Call and Webcast
The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Friday, April 26, 2024 to discuss the results of the quarter
and ended March 31, 2024. The number to call for this interactive teleconference is (800) 836-8184. 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 (888) 660-6345 and entering the
passcode 19613#. The playback can also be accessed on the Company's website.
EARNINGS RELEASE
Cousins Properties
5
Q1 2024 Supplemental Information
THE COMPANY
Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust
(REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A
office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive
expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a
comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments. For more information,
please visit www.cousins.com.
MANAGEMENT
M. Colin Connolly
Gregg D. Adzema
Kennedy Hicks
Richard G. Hickson IV
President & Chief Executive Officer
Executive Vice President &
Chief Financial Officer
Executive Vice President, Chief
Investment Officer & Managing Director
Executive Vice President, Operations
John S. McColl
Pamela F. Roper
Jeffrey D. Symes
Executive Vice President, Development
Executive Vice President, General
Counsel & Corporate Secretary
Senior Vice President &
Chief Accounting Officer
BOARD OF DIRECTORS
Robert M. Chapman
Charles T. Cannada
M. Colin Connolly
Non-executive Chairman of Cousins Properties, Chief
Executive Officer of Centerpoint Properties Trust
Private Investor
President and Chief Executive Officer of
Cousins Properties
Scott W. Fordham
Lillian C. Giornelli
R. Kent Griffin Jr.
Former Chief Executive Officer and
Director of TIER REIT, Inc.
Chairman, Chief Executive Officer and Trustee of
The Cousins Foundation Inc.
Managing Director of Phicas Investors
Donna W. Hyland
Dionne Nelson
R. Dary Stone
President and Chief Executive Officer of
Children's Healthcare of Atlanta
President and Chief Executive Officer of
Laurel Street Residential
President and Chief Executive Officer of
R.D. Stone Interests
COMPANY INFORMATION
Cousins Properties
6
Q1 2024 Supplemental Information
COMPANY INFORMATION
EQUITY RESEARCH COVERAGE (1)
Corporate Headquarters
Investor Relations
Barclays
BofA Securities
BMO Capital
3344 Peachtree Road NE
Suite 1800
Atlanta GA 30326
404.407.1000
Roni Imbeaux
Vice President, Finance &
Investor Relations
404.407.1104
Brendan Lynch
212.526.9428
Camille Bonnel
416.369.2140
John Kim
212.885.4115
Evercore ISI
Green Street
Jefferies
Transfer Agent
Equiniti Trust Company
equiniti.com
866.627.2649
Stock Exchange
NYSE: CUZ
Steve Sakwa
212.446.9462
Dylan Burzinski
949.640.8780
Peter Abramowitz
212.336.7241
J.P. Morgan
KeyBanc
Mizuho Securities
RATING AGENCIES (1)
Anthony Paolone
212.622.6682
Upal Rana
917.368.2316
Vikram Malhotra
212.282.3827
S&P Global Ratings
Moody's Investors Service
RW Baird
Truist Securities
Wells Fargo
Hannah Gray
212.438.0244
Current Corporate
Credit Rating: BBB
Christian Azzi
212.553.9342
Current Corporate
Credit Rating: Baa2
Nicholas Thillman
414.298.5053
Michael Lewis
212.319.5659
Blaine Heck
410.662.2556
Wolfe Research
Andrew Rosivach
646.582.9250
(1) Please note that any opinions, estimates, or forecasts regarding Cousins' performance made by the analysts and rating agencies 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.
COMPANY INFORMATION
Cousins Properties
7
Q1 2024 Supplemental Information
(in thousands, except share and per share amounts)
March 31, 2024
December 31, 2023
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $1,404,568 and $1,329,406 in 2024
and 2023, respectively
$6,937,210
$6,775,093
Projects under development
-
132,884
Land
154,728
154,728
7,091,938
7,062,705
Cash and cash equivalents
5,452
6,047
Accounts receivable
8,135
11,109
Deferred rents receivable
217,926
209,370
Investment in unconsolidated joint ventures
155,210
143,831
Intangible assets, net
105,559
110,667
Other assets, net
98,761
90,745
Total assets
$7,682,981
$7,634,474
Liabilities:
Notes payable
$2,563,332
$2,457,627
Accounts payable and accrued expenses
216,790
299,767
Deferred income
245,739
181,744
Intangible liabilities, net
40,115
42,193
Other liabilities
102,045
104,830
Total liabilities
3,168,021
3,086,161
Commitments and contingencies
Equity:
Stockholders' investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 152,071,718 and
154,335,798 issued, and 152,071,718 and 151,799,215 outstanding in 2024 and 2023, respectively
152,072
154,336
Additional paid-in capital
5,496,371
5,638,709
Treasury stock at cost, $2,536,583 shares in 2023
-
(145,696)
Distributions in excess of cumulative net income
(1,160,759)
(1,125,390)
Accumulated other comprehensive income
3,187
2,192
Total stockholders' investment
4,490,871
4,524,151
Nonredeemable noncontrolling interests
24,089
24,162
Total equity
4,514,960
4,548,313
Total liabilities and equity
$7,682,981
$7,634,474
CONSOLIDATED BALANCE SHEETS
Cousins Properties
8
Q1 2024 Supplemental Information
(unaudited; in thousands, except per share amounts)
Three Months Ended
March 31,
2024
2023
Revenues:
Rental property revenues
$208,818
$200,076
Fee income
379
374
Other
44
2,278
209,241
202,728
Expenses:
Rental property operating expenses
71,075
71,213
Reimbursed expenses
140
207
General and administrative expenses
9,214
8,438
Interest expense
28,908
25,030
Depreciation and amortization
86,230
75,770
Other
672
385
196,239
181,043
Income from unconsolidated joint ventures
348
673
Gain (loss) on investment property transactions
101
(2)
Net income
13,451
22,356
Net income attributable to noncontrolling interests
(163)
(160)
Net income available to common stockholders
$13,288
$22,196
Net income per common share - basic and diluted
$0.09
$0.15
Weighted average shares - basic
151,945
151,579
Weighted average shares - diluted
152,385
151,880
CONSOLIDATED STATEMENTS OF OPERATIONS
Cousins Properties
9
Q1 2024 Supplemental Information
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Property Statistics
Consolidated Operating Properties
34
34
34
34
34
34
34
Consolidated Rentable Square Feet (in thousands)
18,424
18,444
18,444
18,434
18,434
18,434
18,434
Unconsolidated Operating Properties
2
2
2
2
2
2
2
Unconsolidated Rentable Square Feet (in thousands)
711
711
711
711
711
711
711
Total Operating Properties
36
36
36
36
36
36
36
Total Rentable Square Feet (in thousands)
19,135
19,155
19,155
19,145
19,145
19,145
19,145
Office Percent Leased (period end)
91.0%
90.8%
90.8%
91.1%
90.9%
90.9%
90.8%
Office Weighted Average Occupancy
87.3%
87.2%
87.7%
88.0%
87.6%
87.5%
88.4%
Office Leasing Activity (2)
Net Leased during the Period (SF, in thousands)
1,976
258
435
548
453
1,694
404
Net Rent (per SF)
$34.08
$34.45
$38.65
$33.94
$33.53
$35.15
$36.06
Net Free Rent (per SF)
(1.97)
(2.07)
(2.04)
(2.27)
(2.56)
(2.25)
(2.10)
Leasing Commissions (per SF)
(2.74)
(2.83)
(2.53)
(2.60)
(2.65)
(2.62)
(2.61)
Tenant Improvements (per SF)
(5.98)
(6.29)
(5.88)
(5.30)
(5.86)
(5.72)
(7.15)
Leasing Costs (per SF)
(10.69)
(11.19)
(10.45)
(10.17)
(11.07)
(10.59)
(11.86)
Net Effective Rent (per SF)
$23.39
$23.26
$28.20
$23.77
$22.46
$24.56
$24.20
Change in Second Generation Net Rent
23.2%
20.1%
19.6%
28.7%
10.4%
20.2%
20.1%
Change in Cash-Basis Second Generation Net Rent
9.5%
6.1%
7.9%
9.8%
0.8%
5.8%
5.3%
Same Property Information (3)
Percent Leased (period end)
90.1%
90.6%
90.5%
90.8%
90.6%
90.6%
90.8%
Weighted Average Occupancy
86.6%
87.0%
87.3%
87.7%
87.5%
87.3%
88.4%
Change in NOI (over prior year period)
0.0%
5.3%
6.3%
4.1%
4.2%
5.0%
6.6%
Change in Cash-Basis NOI (over prior year period)
1.0%
4.9%
3.7%
4.6%
3.5%
4.2%
6.6%
Development Pipeline (4)
Estimated Project Costs (in thousands)
$428,500
$428,500
$428,500
$428,500
$428,500
$428,500
$437,950
Estimated Project Costs/Total Undepreciated Assets
4.8%
4.8%
4.7%
4.7%
4.6%
4.6%
4.6%
Continued on next page
KEY PERFORMANCE METRICS (1)
Cousins Properties
10
Q1 2024 Supplemental Information
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Market Capitalization
Common Stock Price Per Share
$25.29
$21.38
$22.80
$20.37
$24.35
$24.35
$24.04
Common Stock/Units Outstanding (in thousands)
151,482
151,718
151,774
151,774
151,824
151,824
152,096
Equity Market Capitalization (in thousands)
$3,830,980
$3,243,731
$3,460,447
$3,091,636
$3,696,914
$3,696,914
$3,656,388
Debt (in thousands)
2,424,004
2,544,956
2,548,073
2,559,871
2,608,675
2,608,675
2,723,978
Total Market Capitalization (in thousands)
$6,254,984
$5,788,687
$6,008,520
$5,651,507
$6,305,589
$6,305,589
$6,380,366
Credit Ratios
Net Debt/Total Market Capitalization
38.6%
43.7%
42.1%
45.0%
41.2%
41.2%
42.5%
Net Debt/Total Undepreciated Assets
27.2%
28.1%
27.8%
27.8%
28.0%
28.0%
28.8%
Net Debt/Annualized EBITDAre
4.93
5.13
4.89
5.02
5.14
5.14
5.25
Fixed Charges Coverage (EBITDAre)
5.21
4.48
4.53
4.28
4.20
4.37
4.09
Dividend Information
Common Dividend per Share
$1.28
$0.32
$0.32
$0.32
$0.32
$1.28
$0.32
Funds From Operations (FFO) Payout Ratio
47.4%
49.5%
47.3%
49.2%
49.2%
48.8%
48.9%
Funds Available for Distribution (FAD) Payout Ratio
70.6%
65.3%
71.8%
70.1%
82.5%
71.9%
82.1%
Operations Ratio
Annualized General and Administrative Expenses/
Total Undepreciated Assets
0.30%
0.37%
0.35%
0.36%
0.32%
0.32%
0.39%
Additional Information
In-Place Gross Rent (per SF) (5)
$44.87
$46.02
$46.43
$46.64
$46.95
$46.95
$46.82
Straight-Line Rental Revenue (in thousands)
$28,953
$8,431
$3,703
$7,508
$5,858
$25,500
$8,604
Above and Below Market Rents Amortization, Net
(in thousands)
$6,444
$1,559
$2,525
$1,371
$1,421
$6,876
$1,460
Second Generation Capital Expenditures
(in thousands)
$99,501
$15,467
$29,317
$20,224
$31,900
$96,908
$30,212
(1)
For Non-GAAP Financial Measures, see the Calculations and Reconciliations on pages 33 through 38.
(2)
See Office Leasing Activity on page 21 for additional detail and explanations.
(3)
Same Property Information is derived from the pool of same office properties that existed in the period as originally reported. See Same Property Performance on page 20 and Non-GAAP
Financial Measures - Calculations and Reconciliations beginning on page 33 for additional information.
(4)
The Company's share of estimated project costs. See Development Pipeline on page 27 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.
KEY PERFORMANCE METRICS (1)
Cousins Properties
11
Q1 2024 Supplemental Information
Total Rentable Square Feet Equity Market Capitalization Net Debt / Annualized EBITDAre
Same Property NOI ChangeSecond Generation Net Rent Change Annualized General & Administrative
Cash-Basis (1)Cash-Basis (1)Expenses / Total Undepreciated Assets
(1) Office properties only.
Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.
KEY PERFORMANCE METRICS
Cousins Properties
12
Q1 2024 Supplemental Information
(amounts in thousands, except per share amounts)
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Net Income
$167,445
$22,356
$23,077
$19,491
$18,892
$83,816
$13,451
Fee and Other Income
(11,243)
(2,788)
(6,936)
(690)
(756)
(11,170)
(893)
General and Administrative Expenses
28,319
8,438
8,021
8,336
7,536
32,331
9,214
Interest Expense
72,537
25,030
25,972
27,008
27,453
105,463
28,908
Depreciation and Amortization
295,587
75,770
80,269
79,492
79,366
314,897
86,230
Reimbursed and Other Expenses
4,158
592
635
772
737
2,736
812
Income from Unconsolidated Joint Ventures
(7,700)
(673)
(753)
(582)
(291)
(2,299)
(348)
NOI from Unconsolidated Joint Ventures
9,524
1,409
1,559
1,564
1,292
5,824
1,352
Transaction Loss (Gain)
(56,427)
2
-
(507)
1
(504)
(101)
NOI (1)
$502,200
$130,136
$131,844
$134,884
$134,230
$531,094
$138,625
Fee and Other Income (1)
11,459
2,825
6,974
725
786
11,310
908
General and Administrative Expenses
(28,319)
(8,438)
(8,021)
(8,336)
(7,536)
(32,331)
(9,214)
Interest Expense (1)
(75,140)
(25,310)
(26,334)
(27,516)
(27,979)
(107,139)
(29,436)
Reimbursed and Other Expenses (1)
(4,057)
(605)
(642)
(795)
(752)
(2,794)
(843)
Gain (Loss) on Sales of Undepreciated Investment Properties
4,478
-
-
507
(1)
506
-
Depreciation and Amortization of Non-Real Estate Assets
(558)
(108)
(111)
(113)
(116)
(448)
(115)
Partners' Share of FFO in Consolidated Joint Ventures
(1,304)
(406)
(759)
(384)
(360)
(1,909)
(429)
FFO (1)
$408,759
$98,094
$102,951
$98,972
$98,272
$398,289
$99,496
Weighted Average Shares - Diluted
150,419
151,880
152,126
152,048
152,105
152,040
152,385
FFO per Share (1)
$2.72
$0.65
$0.68
$0.65
$0.65
$2.62
$0.65
(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.
FUNDS FROM OPERATIONS - SUMMARY
Cousins Properties
13
Q1 2024 Supplemental Information
(amounts in thousands, except per share amounts)
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
NOI
Consolidated Properties
The Domain (2)
$68,704
$18,144
$18,466
$18,303
$18,440
$73,353
$18,355
Terminus (2)
32,908
8,097
8,442
8,596
8,669
33,804
8,087
Spring & 8th (2)
29,419
7,361
7,372
7,270
7,352
29,355
7,363
Corporate Center (2)
28,594
7,467
7,600
7,548
7,585
30,200
7,321
300 Colorado
13,120
3,772
4,608
5,166
5,428
18,974
5,756
BriarLake Plaza (2)
14,746
3,545
3,588
3,648
3,896
14,677
5,579
Buckhead Plaza (2)
16,980
4,766
5,312
5,436
5,453
20,967
5,321
San Jacinto Center
16,003
3,940
4,093
3,748
4,456
16,237
5,076
725 Ponce
18,543
4,777
4,753
4,828
5,040
19,398
5,032
Northpark (2)
22,699
5,136
4,901
5,141
5,391
20,569
4,980
Fifth Third Center
17,675
4,732
4,726
4,840
4,661
18,959
4,759
Hayden Ferry (2)
24,304
5,934
4,323
6,106
4,456
20,819
4,600
Avalon (2)
15,927
4,243
4,145
4,326
4,168
16,882
4,425
Colorado Tower
12,452
3,282
3,740
4,152
4,236
15,410
4,234
One Eleven Congress
17,398
4,246
4,542
4,850
4,045
17,683
4,190
3344 Peachtree
15,691
3,992
4,107
4,112
3,847
16,058
4,023
The Terrace (2)
13,413
3,698
3,903
4,036
3,879
15,516
3,939
100 Mill
7,298
3,603
3,575
3,352
3,196
13,726
3,842
Promenade Tower
12,170
3,377
3,483
3,568
3,266
13,694
3,432
The RailYard
12,900
3,332
3,308
3,296
3,233
13,169
3,081
Heights Union (2)
8,312
2,338
2,525
2,669
2,539
10,071
2,621
550 South
10,694
2,698
2,730
2,811
2,757
10,996
2,527
Legacy Union One
9,421
2,364
2,366
2,348
2,363
9,441
2,380
Domain Point (2)
7,085
2,025
2,260
2,186
2,166
8,637
2,183
Promenade Central (3)
224
716
775
1,084
1,234
3,809
1,570
111 West Rio
5,669
1,417
1,395
1,408
1,387
5,607
1,411
3350 Peachtree
5,520
1,477
1,447
855
735
4,514
1,363
Tempe Gateway
4,273
819
957
1,084
1,166
4,026
1,259
Meridian Mark Plaza
4,961
1,286
1,215
1,237
1,058
4,796
1,215
The Pointe
4,852
1,056
695
381
1,137
3,269
1,168
3348 Peachtree
4,772
1,050
1,160
1,119
1,277
4,606
1,163
Research Park V
4,468
1,166
918
934
1,091
4,109
1,087
5950 Sherry Lane
3,469
861
852
886
1,034
3,633
1,078
Harborview Plaza
3,429
849
841
848
856
3,394
835
Other (4)
4,583
1,161
1,162
1,148
1,441
4,912
2,018
Subtotal - Consolidated
492,676
128,727
130,285
133,320
132,938
525,270
137,273
Continued on next page
FUNDS FROM OPERATIONS - DETAIL (1)
Cousins Properties
14
Q1 2024 Supplemental Information
(amounts in thousands, except per share amounts)
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Unconsolidated Properties (5)
Medical Offices at Emory Hospital
4,531
1,054
1,203
1,161
1,170
4,588
1,116
120 West Trinity (2)
1,302
326
338
389
194
1,247
319
Other (6)
3,691
29
18
14
(72)
(11)
(83)
Subtotal - Unconsolidated
9,524
1,409
1,559
1,564
1,292
5,824
1,352
Total Net Operating Income (1)
502,200
130,136
131,844
134,884
134,230
531,094
138,625
Fee and Other Income
Management Fees (7)
2,941
374
352
318
329
1,373
379
Termination Fees
2,464
136
6,570
271
366
7,343
471
Development Fees
3,178
-
-
-
-
-
-
Interest and Other Income
2,660
2,278
14
101
61
2,454
44
Interest and Other Income - Unconsolidated (5)
216
37
38
35
30
140
14
Total Fee and Other Income
11,459
2,825
6,974
725
786
11,310
908
General and Administrative Expenses
(28,319)
(8,438)
(8,021)
(8,336)
(7,536)
(32,331)
(9,214)
Interest Expense
Consolidated Interest Expense
Term Loan, Unsecured ($400M)
(4,936)
(5,856)
(6,158)
(6,306)
(6,359)
(24,679)
(6,050)
Credit Facility, Unsecured
(9,759)
(3,054)
(3,583)
(3,589)
(3,929)
(14,155)
(5,449)
Term Loan, Unsecured ($350M)
(11,609)
(4,902)
(4,944)
(5,009)
(5,010)
(19,865)
(4,892)
Terminus (2)
(5,644)
(3,513)
(3,514)
(3,514)
(3,514)
(14,055)
(3,514)
Senior Notes, Unsecured ($275M)
(10,975)
(2,744)
(2,744)
(2,743)
(2,744)
(10,975)
(2,744)
Senior Notes, Unsecured ($250M)
(9,958)
(2,490)
(2,489)
(2,490)
(2,489)
(9,958)
(2,490)
Senior Notes, Unsecured ($250M)
(9,764)
(2,441)
(2,441)
(2,441)
(2,441)
(9,764)
(2,441)
Senior Notes, Unsecured ($125M)
(4,789)
(1,197)
(1,197)
(1,198)
(1,197)
(4,789)
(1,197)
Fifth Third Center
(4,508)
(1,108)
(1,101)
(1,094)
(1,085)
(4,388)
(1,078)
Senior Notes, Unsecured ($100M)
(4,145)
(1,036)
(1,036)
(1,037)
(1,036)
(4,145)
(1,036)
Colorado Tower
(3,917)
(965)
(960)
(953)
(948)
(3,826)
(942)
Domain 10
(3,141)
(774)
(770)
(765)
(760)
(3,069)
(756)
Other (8)
(4,792)
(41)
(40)
(41)
(40)
(162)
(25)
Capitalized (9)
15,400
5,091
5,005
4,172
4,099
18,367
3,706
Subtotal - Consolidated Interest Expense
(72,537)
(25,030)
(25,972)
(27,008)
(27,453)
(105,463)
(28,908)
Unconsolidated Interest Expense (5)
Medical Offices at Emory Hospital
(1,147)
(280)
(362)
(508)
(509)
(1,659)
(508)
Other (8)
(1,456)
-
-
-
(17)
(17)
(20)
Subtotal - Unconsolidated Interest Expense
(2,603)
(280)
(362)
(508)
(526)
(1,676)
(528)
Total Interest Expense
(75,140)
(25,310)
(26,334)
(27,516)
(27,979)
(107,139)
(29,436)
Continued on next page
FUNDS FROM OPERATIONS - DETAIL (1)
Cousins Properties
15
Q1 2024 Supplemental Information
(amounts in thousands, except per share amounts)
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Reimbursed and Other Expenses
Reimbursed Expenses (7)
(2,024)
(207)
(159)
(149)
(93)
(608)
(140)
Property Taxes and Other Land Holding Costs (5)
(1,065)
(323)
(276)
(318)
(473)
(1,390)
(389)
Severance
(170)
(72)
(90)
(63)
(167)
(392)
2
Gain on Extinguishment of Debt
169
-
-
-
-
-
-
Predevelopment & Other Costs (5)
(967)
(3)
(117)
(265)
(19)
(404)
(316)
Total Reimbursed and Other Expenses
(4,057)
(605)
(642)
(795)
(752)
(2,794)
(843)
Gain (Loss) on Sales of Undepreciated Investment Properties
Consolidated
-
-
-
507
(1)
506
-
Unconsolidated (5)
4,478
-
-
-
-
-
-
Total Gain (Loss) on Sales of Undepreciated Investment Properties
4,478
-
-
507
(1)
506
-
Depreciation and Amortization of Non-Real Estate Assets
(558)
(108)
(111)
(113)
(116)
(448)
(115)
Partners' Share of FFO in Consolidated Joint Ventures
(1,304)
(406)
(759)
(384)
(360)
(1,909)
(429)
FFO
$408,759
$98,094
$102,951
$98,972
$98,272
$398,289
$99,496
Weighted Average Shares - Diluted
150,419
151,880
152,126
152,048
152,105
152,040
152,385
FFO per Share
$2.72
$0.65
$0.68
$0.65
$0.65
$2.62
$0.65
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) A redevelopment of Promenade Central reached substantial completion in the fourth quarter of 2022, but is not yet stabilized.
(4) Primarily represents the College Street Garage and properties in the final stages of development and not yet stabilized. Also includes properties sold prior to March 31, 2024.
(5) Unconsolidated amounts included in the reconciliation above represent amounts recorded in unconsolidated joint ventures multiplied by the Company's ownership interest. The Company does not control the
operations of the unconsolidated joint ventures but believes including these amounts in the categories indicated is meaningful to investors and analysts.
(6) Primarily represents unconsolidated investments sold prior to March 31, 2024, see page 26. 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) Primarily represents interest on consolidated loans repaid and our share of interests on loans of unconsolidated investments sold prior to March 31, 2024. Also includes interest expense from unconsolidated
investments not yet stabilized.
(9) 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.
FUNDS FROM OPERATIONS - DETAIL (1)
Cousins Properties
16
Q1 2024 Supplemental Information
Office Properties (1)
Rentable
Square
Feet
Financial
Statement
Presentation
Company's
Ownership
Interest
End of Period Leased
Weighted Average
Occupancy (2)
% of Total
NOI / 1Q24
Property Level Debt
($ in thousands) (3)
1Q24
4Q23
1Q24
4Q23
Terminus (4)
1,226,000
Consolidated
100%
84.7%
86.3%
82.0%
83.8%
5.9%
$220,697
Spring & 8th (4)
765,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
5.4%
-
Buckhead Plaza (4)
678,000
Consolidated
100%
96.3%
95.2%
86.9%
89.6%
3.9%
-
725 Ponce
372,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
3.7%
-
Northpark (4)
1,539,000
Consolidated
100%
74.2%
74.0%
72.8%
73.4%
3.6%
-
Avalon
480,000
Consolidated
100%
100.0%
100.0%
100.0%
97.4%
3.2%
-
3344 Peachtree
484,000
Consolidated
100%
95.1%
95.1%
95.1%
96.3%
2.9%
-
Promenade Tower
777,000
Consolidated
100%
88.6%
82.9%
67.0%
63.2%
2.5%
-
Promenade Central (5) (6)
367,000
Consolidated
100%
76.0%
71.3%
67.5%
55.9%
1.1%
-
3350 Peachtree
413,000
Consolidated
100%
74.2%
60.3%
60.3%
57.0%
1.0%
-
Meridian Mark Plaza
160,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
0.9%
-
3348 Peachtree
258,000
Consolidated
100%
76.9%
76.9%
76.9%
80.5%
0.8%
-
Medical Offices at Emory Hospital
358,000
Unconsolidated
50%
99.5%
99.5%
99.5%
99.5%
0.8%
41,168
120 West Trinity Office
43,000
Unconsolidated
20%
100.0%
100.0%
100.0%
100.0%
0.1%
-
ATLANTA (6)
7,920,000
87.9%
86.6%
83.2%
83.3%
35.8%
261,865
The Domain (4)
1,899,000
Consolidated
100%
100.0%
100.0%
99.4%
99.5%
13.4%
71,873
300 Colorado
378,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
4.2%
-
San Jacinto Center
399,000
Consolidated
100%
95.9%
95.9%
95.9%
86.9%
3.7%
-
Colorado Tower
373,000
Consolidated
100%
98.8%
98.8%
98.3%
97.4%
3.1%
105,943
One Eleven Congress
519,000
Consolidated
100%
79.0%
80.5%
79.9%
79.9%
3.0%
-
The Terrace (4)
619,000
Consolidated
100%
79.4%
79.9%
78.7%
77.6%
2.9%
-
Domain Point (4)
240,000
Consolidated
96.5%
100.0%
100.0%
100.0%
100.0%
1.6%
-
Research Park V
173,000
Consolidated
100%
93.0%
93.0%
89.0%
89.0%
0.8%
-
AUSTIN
4,600,000
94.3%
94.4%
93.7%
92.8%
32.7%
177,816
Corporate Center (4)
1,227,000
Consolidated
100%
91.5%
93.4%
91.9%
92.3%
5.3%
-
Heights Union (4)
294,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
1.9%
-
The Pointe
253,000
Consolidated
100%
90.4%
90.4%
86.5%
89.3%
0.8%
-
Harborview Plaza
206,000
Consolidated
100%
88.7%
83.7%
82.1%
79.3%
0.6%
-
TAMPA
1,980,000
92.3%
93.0%
91.2%
91.7%
8.6%
-
Hayden Ferry (4) (7)
792,000
Consolidated
100%
84.8%
90.9%
85.1%
88.5%
3.3%
-
100 Mill
288,000
Consolidated
90%
98.1%
98.1%
92.3%
81.3%
2.8%
-
111 West Rio
225,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
1.0%
-
Tempe Gateway
264,000
Consolidated
100%
87.3%
75.9%
64.7%
64.8%
0.9%
PHOENIX
1,569,000
92.6%
90.9%
85.0%
84.4%
8.0%
-
Fifth Third Center
692,000
Consolidated
100%
92.6%
91.1%
91.1%
91.1%
3.5%
125,461
Railyard
329,000
Consolidated
100%
99.4%
99.0%
99.0%
99.2%
2.2%
-
550 South
394,000
Consolidated
100%
76.9%
96.7%
90.1%
96.7%
1.8%
-
CHARLOTTE
1,415,000
89.8%
94.5%
92.7%
94.5%
7.5%
125,461
Continued on next page
PORTFOLIO STATISTICS
Cousins Properties
17
Q1 2024 Supplemental Information
Office Properties (1)
Rentable
Square
Feet
Financial
Statement
Presentation
Company's
Ownership
Interest
End of Period Leased
Weighted Average
Occupancy (2)
% of Total
NOI / 1Q24
Property Level Debt
($ in thousands) (3)
1Q24
4Q23
1Q24
4Q23
Legacy Union One
319,000
Consolidated
100%
100.0%
100.0%
100.0%
100.0%
1.7%
-
5950 Sherry Lane
197,000
Consolidated
100%
79.3%
79.3%
79.3%
77.5%
0.8%
-
DALLAS
516,000
92.1%
92.1%
92.1%
91.4%
2.5%
-
BriarLake Plaza (4)
835,000
Consolidated
100%
95.5%
96.8%
94.4%
79.0%
4.1%
-
HOUSTON
835,000
95.5%
96.8%
94.4%
79.0%
4.1%
-
TOTAL OFFICE (6)
18,835,000
90.8%
90.9%
88.4%
87.6%
99.2%
$565,142
Other Properties (1)
College Street Garage - Charlotte (5)
N/A
Consolidated
100%
NA
NA
NA
NA
0.7%
-
120 West Trinity Apartment -
Atlanta (330 units) (5)
310,000
Unconsolidated
20%
95.9%
95.3%
95.3%
93.6%
0.1%
-
TOTAL OTHER
310,000
95.9%
95.3%
95.3%
93.6%
0.8%
$-
TOTAL (6)
19,145,000
90.8%
90.9%
88.4%
87.7%
100.0%
$565,142
(1)
Represents the Company's operating properties, excluding properties in the development pipeline, full building redevelopments that are not yet stabilized, and properties sold prior to March 31, 2024.
(2)
The weighted average economic occupancy of the property over the period for which the property was available for occupancy.
(3)
The Company's share of property-specific mortgage debt, net of unamortized loan costs, as of March 31, 2024.
(4)
Contains two or more buildings that are grouped together for reporting purposes.
(5)
Not included in Same Property as of March 31, 2024.
(6)
A redevelopment of Promenade Central reached substantial completion in the fourth quarter of 2022. This building will be excluded from the Atlanta, Total Office, and Total Portfolio calculations until stabilized.
(7)
Hayden Ferry 1 in this group of buildings has been excluded from Same Property, end of period leased, and weighted average occupancy due to commencement of a full redevelopment of this building effective
October 1, 2023.
PORTFOLIO STATISTICS
Cousins Properties
18
Q1 2024 Supplemental Information
Portfolio NOI by Market
First Quarter 2024
(1) The Company owns 50% of Neuhoff, a mixed-use development in Nashville, through a joint venture. It has commenced initial operations but is not yet stabilized. See pages 27 and 32 for
additional details.
PORTFOLIO STATISTICS
Cousins Properties
19
Q1 2024 Supplemental Information
Charlotte
8.2%
Nashville (1)
Dallas
2.5%
Atlanta
35.9%
Tampa
8.6%
Houston
4.1%
Austin
32.7%
Phoenix
8.0%
($ in thousands)
Three Months Ended March 31,
2024
2023
$ Change
% Change
Rental Property Revenues (2)
$204,450
$196,929
$7,521
3.8%
Rental Property Operating Expenses (2)
69,589
70,406
(817)
(1.2)%
Same Property Net Operating Income
$134,861
$126,523
$8,338
6.6%
Cash-Basis Rental Property Revenues (3)
$190,781
$184,066
$6,715
3.6%
Cash-Basis Rental Property Operating Expenses (4)
69,381
70,183
(802)
(1.1)%
Cash-Basis Same Property Net Operating Income
$121,400
$113,883
$7,517
6.6%
End of Period Leased
90.8%
90.6%
Weighted Average Occupancy
88.4%
87.0%
(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 17 and 18 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 Operating 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.
SAME PROPERTY PERFORMANCE (1)
Cousins Properties
20
Q1 2024 Supplemental Information
Three Months Ended March 31, 2024
New
Renewal
Expansion
Total
Gross leased square feet (1)
462,076
Less exclusions (2)
(58,422)
Net leased square feet
187,938
117,165
98,551
403,654
Number of transactions
17
12
8
37
Lease term in years (3)
8.0
4.6
8.5
7.1
Net effective rent calculation (per square foot
per year) (3)
Net annualized rent (4)
$39.35
$32.73
$33.74
$36.06
Net free rent
(2.44)
(1.53)
(2.12)
(2.10)
Leasing commissions
(3.08)
(1.74)
(2.72)
(2.61)
Tenant improvements
(8.01)
(4.27)
(8.95)
(7.15)
Total leasing costs
(13.53)
(7.54)
(13.79)
(11.86)
Net effective rent
$25.82
$25.19
$19.95
$24.20
Second generation leased square footage (5)
213,676
Increase in straight-line basis second generation net rent per square foot (6)
20.1%
Increase in cash-basis second generation net rent per square foot (7)
5.3%
(1)
Comprised of total square feet leased, unadjusted for ownership share and excluding apartment leasing.
(2)
Adjusted for leases approximately one year or less, along with leases for retail, amenity, storage, and intercompany space.
(3)
Weighted average of net leased square feet. Excludes percentage rent leases.
(4)
Straight-line net rent per square foot (operating expense reimbursements deducted from gross leases) over the lease term, prior to any
deductions for leasing costs.
(5)
Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, percentage rent leases, and
leases for spaces that have been vacant for one year or more.
(6)
Increase in second generation straight-line basis net annualized rent on a weighted average basis.
(7)
Increase in second generation net cash rent at the end of the term paid by the prior tenant compared to net cash rent at the beginning of the
term (after any free rent period) paid by the current tenant on a weighted average basis. For early renewals, the final net cash rent paid under
the original lease is compared to the first net cash rent paid under the terms of the renewal. Net cash rent is net of any recovery of operating
expenses but prior to any deductions for leasing costs.
OFFICE LEASING ACTIVITY
Cousins Properties
21
Q1 2024 Supplemental Information
Lease Expirations by Year (1)
Year of Expiration
Square Feet
Expiring
% of Leased
Space
Annual
Contractual Rent
($ in thousands) (2)
% of Annual
Contractual
Rent
Annual
Contractual
Rent/Sq. Ft.
2024
637,715
3.8%
$27,082
3.1%
$42.47
2025
1,657,835
10.0%
73,933
8.5%
44.60
2026
1,276,695
7.7%
59,434
6.8%
46.55
2027
1,587,488
9.6%
73,419
8.5%
46.25
2028
1,606,384
9.7%
81,046
9.3%
50.45
2029
1,734,499
10.4%
89,855
10.4%
51.80
2030
1,324,058
8.0%
67,349
7.8%
50.87
2031
1,545,507
9.3%
92,157
10.6%
59.63
2032
1,860,529
11.2%
107,711
12.4%
57.89
2033 & Thereafter
3,396,248
20.3%
195,903
22.6%
57.68
Total
16,626,958
100.0%
$867,889
100.0%
$52.20
(1) Company's share of leases expiring after March 31, 2024. Expiring square footage for which new leases have been
executed at operating properties is reflected based on the expiration date of the new lease.
(2) Annual Contractual Rent is the estimated rent in the year of expiration. It includes the minimum base rent and an
estimate of the tenant's share of operating expenses, if applicable, as defined in the respective leases.
OFFICE LEASE EXPIRATIONS
Cousins Properties
22
Q1 2024 Supplemental Information
Tenant (1)
Number
of
Properties
Occupied
Number
of
Markets
Occupied
Company's
Share of
Square
Footage
Company's
Share of
Annualized
Rent
($ in thousands)
(2)
Percentage of
Company's
Share of
Annualized
Rent
Weighted
Average
Remaining
Lease Term
(Years)
1
Amazon
5
3
1,296,397
$68,417
9.1%
5.9
2
NCR Voyix
2
2
815,634
41,056
5.5%
9.2
3
Pioneer Natural Resources
2
1
359,660
25,176
3.3%
7.4
4
Meta Platforms
1
1
319,863
18,457
2.5%
7.3
5
Expedia
1
1
315,882
16,889
2.2%
7.0
6
Apache
1
1
357,984
14,590
1.9%
14.5
7
Bank of America
2
2
347,139
12,642
1.7%
1.7
8
Ovintiv USA
1
1
318,582
8,313
1.1%
3.2
9
WeWork
4
2
169,050
8,144
1.1%
9.5
10
Wells Fargo
5
3
198,507
7,866
1.0%
4.8
11
ADP
1
1
225,000
7,726
1.0%
4.0
12
Regus Equity Business Centers
5
4
145,119
7,371
1.0%
4.7
13
Westrock Shared Services
1
1
205,185
7,352
1.0%
6.1
14
BlackRock
1
1
131,656
7,166
1.0%
12.2
15
Amgen
1
1
163,169
6,679
0.9%
4.6
16
Workwise Technologies
1
1
93,210
6,615
0.9%
4.3
17
McKinsey & Company
2
2
130,513
6,426
0.9%
8.6
18
Samsung Engineering America
1
1
133,860
6,367
0.8%
2.7
19
Time Warner Cable
2
1
119,018
5,846
0.8%
1.8
20
Allstate
1
1
148,262
5,798
0.8%
5.8
Total
5,993,690
$288,896
38.5%
6.7
(1)
In some cases, the actual tenant may be an affiliate of the entity shown.
(2)
Annualized Rent represents the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, paid by
the tenant as of March 31, 2024. If the tenant is in a free rent period as of March 31, 2024, Annualized Rent represents the annualized
contractual rent the tenant will pay in the first month it is required to pay full cash rent.
Note:
This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.
TOP 20 OFFICE TENANTS
Cousins Properties
23
Q1 2024 Supplemental Information
(1) Annualized Rent represents the annualized cash rent including the tenant's share of estimated operating expenses, if applicable, paid by the tenant as of
March 31, 2024. If the tenant is in a free rent period as of March 31, 2024, Annualized Rent represents the annualized contractual rent the tenant will pay in
the first month the tenant is required to pay full rent.
Note: Management uses SIC codes when available, along with judgment, to determine tenant industry classification. This schedule includes leases that have
commenced. Leases that have been signed but have not commenced are excluded.
TENANT INDUSTRY DIVERSIFICATION
Cousins Properties
24
Q1 2024 Supplemental Information
Completed Operating Property Acquisitions
Property
Type
Market
Company's Ownership
Interest
Timing
Square Feet
Gross Purchase
Price
($ in thousands) (1)
2022
Avalon (2)
Office
Atlanta
100%
2Q
480,000
$43,400
2021
725 Ponce
Office
Atlanta
100%
3Q
372,000
300,200
Heights Union
Office
Tampa
100%
4Q
294,000
144,800
2020
The RailYard
Office
Charlotte
100%
4Q
329,000
201,300
2019
Promenade Central
Office
Atlanta
100%
1Q
370,000
82,000
TIER REIT, Inc.
Office
Various
Various
2Q
5,799,000
(3)
Terminus (4)
Office
Atlanta
100%
4Q
1,226,000
246,000
8,870,000
$1,017,700
Completed Property Developments
Project
Type
Market
Company's Ownership
Interest
Timing (5)
Square Feet
Total Project Cost
($ in thousands) (1)
2022
300 Colorado
Office
Austin
100%
1Q
369,000
$193,000
100 Mill
Office
Phoenix
90%
4Q
288,000
156,000
2021
10000 Avalon
Office
Atlanta
90%
1Q
251,000
96,000
120 West Trinity
Mixed
Atlanta
20%
2Q
353,000
89,000
Domain 10
Office
Austin
100%
3Q
300,000
111,000
2020
Domain 12
Office
Austin
100%
4Q
320,000
117,000
2019
Dimensional Place
Office
Charlotte
50%
1Q
281,000
96,000
2,162,000
$858,000
(1) Except as otherwise noted, amounts represent total purchase prices, total project costs paid by the Company and, where applicable, its joint venture partner.
(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 $246 million before reductions for existing mortgage debt.
(5) Represents timing of stabilization.
Continued on next page
INVESTMENT ACTIVITY
Cousins Properties
25
Q1 2024 Supplemental Information
Completed Operating Property Dispositions
Property
Type
Market
Company's Ownership
Interest
Timing
Square Feet
Gross Sales Price
($ in thousands)
2022
Carolina Square
Mixed
Charlotte
50%
3Q
468,000
$105,000
(1)
2021
Burnett Plaza
Office
Fort Worth
100%
2Q
1,023,000
137,500
One South at the Plaza
Office
Charlotte
100%
3Q
891,000
271,500
Dimensional Place
Office
Charlotte
50%
3Q
281,000
60,800
(1)
816 Congress
Office
Austin
100%
4Q
435,000
174,000
2020
Hearst Tower
Office
Charlotte
100%
1Q
966,000
455,500
Gateway Village
Office
Charlotte
50%
1Q
1,061,000
52,200
(1)
Woodcrest
Office
Cherry Hill
100%
1Q
386,000
25,300
5,511,000
$1,281,800
(1) Amount represents proceeds, before debt and other adjustments, received by the Company for the sale of its unconsolidated interest in the joint venture to its partner.
INVESTMENT ACTIVITY
Cousins Properties
26
Q1 2024 Supplemental Information
Project
Type
Market
Company's
Ownership
Interest
Construction
Start Date
Square
Feet/Units
Estimated Project
Cost (1) (2)
($ in thousands)
Company's
Share of
Estimated
Project Cost (2)
($ in thousands)
Project Cost
Incurred to
Date (2)
($ in thousands)
Company's Share
of Project Cost
Incurred to Date
(2)
($ in thousands)
Percent
Leased
Initial
Occupancy (3)
Estimated
Stabilization (4)
Neuhoff (5)
Mixed
Nashville
50%
3Q21
$581,900
$290,950
$486,366
$243,183
Office and Retail
448,000
30%
4Q23
4Q25
Apartments
542
-%
2Q24
2Q26
Domain 9
Office
Austin
100%
2Q21
338,000
147,000
147,000
128,344
128,344
98%
1Q24
3Q25
Total
$728,900
$437,950
$614,710
$371,527
(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, including direct financing costs. 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 footnote 5). The above schedule
excludes any financing cost assumptions for projects without project-specific debt and any other incremental capitalized costs required by GAAP.
(3)
Initial occupancy represents the quarter within which the Company first recognized, or estimates it will begin recognizing, revenue under GAAP. The Company capitalizes interest, real estate
taxes, and certain operating expenses on the unoccupied portion of office and retail properties, which have ongoing construction of tenant improvements, until the earlier of (1) the date on
which the project achieves 90% economic occupancy or (2) one year from cessation of major construction activity. For residential project construction, the Company continues to capitalize
interest, real estate taxes, and certain operating expenses until cessation of major construction activity.
(4)
Reflects the estimated quarter of economic stabilization for each project.
(5)
The Neuhoff estimated project cost will be funded with a combination of $269.2 million of equity contributed by the joint venture partners and a $312.7 million construction loan. These costs
include approximately $66 million of site and associated infrastructure work related to a future phase. The estimated project cost includes revisions made in the first quarter of 2024 related to
updated initial leasing costs and construction loan interest costs.
DEVELOPMENT PIPELINE (1)
Cousins Properties
27
Q1 2024 Supplemental Information
Market
Company's
Ownership
Interest
Financial Statement
Presentation
Total
Developable Land
(Acres)
Cost Basis of Land
($ in thousands)
3354/3356 Peachtree
Atlanta
95%
Consolidated
3.2
715 Ponce
Atlanta
50%
Unconsolidated
1.0
887 West Peachtree
Atlanta
100%
Consolidated
1.6
Domain Point 3
Austin
90%
Consolidated
1.7
Domain Central
Austin
100%
Consolidated
5.6
South End Station
Charlotte
100%
Consolidated
3.4
303 Tremont
Charlotte
100%
Consolidated
2.4
Legacy Union 2 & 3
Dallas
95%
Consolidated
4.0
Corporate Center 5 & 6 (1)
Tampa
100%
Consolidated
14.1
Total
37.0
$162,812
159351
Company's Share
36.0
$156,007
(1)
Corporate Center 5 is controlled through a long-term ground lease.
LAND INVENTORY
Cousins Properties
28
Q1 2024 Supplemental Information
Company's Share of Debt Maturities and Principal Payments
($ in thousands)
Description (Interest Rate Base, if not fixed)
Company's
Ownership
Interest
Rate at
End of
Quarter
Maturity
Date (2)
2024
2025
2026
2027
2028
Thereafter
Total
Principal
Deferred
Loan
Costs
Total
Consolidated Debt - Floating Rate
Credit Facility, Unsecured (Adjusted SOFR + 0.90% to 1.40%) (3)
100%
6.31%
4/30/27
$-
$-
$-
$292,200
$-
$-
$292,200
$-
$292,200
Total Consolidated Floating Rate Debt
-
-
-
292,200
-
-
292,200
-
292,200
Consolidated Debt - Fixed Rate
Term Loan, Unsecured (4)
100%
5.63%
3/3/27
-
-
-
400,000
-
-
400,000
(987)
399,013
Term Loan, Unsecured (5)
100%
5.38%
8/30/26
-
-
350,000
-
-
-
350,000
(186)
349,814
Senior Note, Unsecured
100%
3.95%
7/6/29
-
-
-
-
-
275,000
275,000
(588)
274,412
Senior Note, Unsecured
100%
3.91%
7/6/25
-
250,000
-
-
-
-
250,000
(229)
249,771
Senior Note, Unsecured
100%
3.86%
7/6/28
-
-
-
-
250,000
-
250,000
(480)
249,520
Terminus (6)
100%
6.34%
1/15/31
-
-
-
-
-
221,000
221,000
(303)
220,697
Senior Note, Unsecured
100%
3.78%
7/6/27
-
-
-
125,000
-
-
125,000
(206)
124,794
Fifth Third Center
100%
3.37%
10/1/26
3,777
3,907
117,939
-
-
-
125,623
(162)
125,461
Colorado Tower
100%
3.45%
9/1/26
2,807
2,906
100,463
-
-
-
106,176
(233)
105,943
Senior Note, Unsecured
100%
4.09%
7/6/27
-
-
-
100,000
-
-
100,000
(166)
99,834
Domain 10
100%
3.75%
11/1/24
72,056
-
-
-
-
-
72,056
(183)
71,873
Total Consolidated Fixed Rate Debt
78,640
256,813
568,402
625,000
250,000
496,000
2,274,855
(3,723)
2,271,132
Total Consolidated Debt
78,640
256,813
568,402
917,200
250,000
496,000
2,567,055
(3,723)
2,563,332
Unconsolidated Debt - Floating Rate
Neuhoff (SOFR + 3.45%) (7)
50%
8.77%
9/30/26
-
-
120,402
-
-
-
120,402
(924)
119,478
Total Unconsolidated Floating Rate Debt
-
-
120,402
-
-
-
120,402
(924)
119,478
.
Unconsolidated Debt - Fixed Rate
Medical Offices at Emory Hospital
50%
4.80%
6/1/32
-
-
-
-
-
41,500
41,500
(332)
41,168
Total Unconsolidated Fixed Rate Debt
-
-
-
-
-
41,500
41,500
(332)
41,168
Total Unconsolidated Debt
-
-
120,402
-
-
41,500
161,902
(1,256)
160,646
Total Debt
$78,640
$256,813
$688,804
$917,200
$250,000
$537,500
$2,728,957
$(4,979)
$2,723,978
Total Maturities (8)
$70,865
$250,000
$685,561
$917,200
$250,000
$537,500
$2,711,126
% of Maturities
3%
9%
25%
34%
9%
20%
100%
Continued on next page
DEBT SCHEDULE (1)
Cousins Properties
29
Q1 2024 Supplemental Information
Continued on next page
DEBT SCHEDULE (1)
Cousins Properties
30
Q1 2024 Supplemental Information
Mortgages
$215
Unsecured
Senior Note
Credit
Facility
$292
Unsecured
Senior Note
Mortgages
Mortgage
Term Loan
$350
Mortgage
$71
Unsecured
Senior Notes
$225
Mortgage
Unsecured
Senior
Note
Construction
Loan (7)
$120
Term Loan
$350
Term
Loan
$400
Floating and Fixed Rate Debt Analysis
Total Principal
($ in thousands)
Total Debt
(%)
Weighted Average
Interest Rate
Weighted Average
Maturity (Years) (2)
Floating Rate Debt
$412,602
15%
7.03%
2.9
Fixed Rate Debt
2,316,354
85%
4.62%
3.5
Total Debt
$2,728,956
100%
4.99%
3.4
(1)
All amounts are presented at Company share.
(2)
Maturity dates shown assume the Company exercises all available extension options. Without the extensions noted below, our weighted average maturity would be 2.8
years.
(3)
As of March 31, 2024, the Company had $292.2 million drawn under the Credit Facility and had the ability to borrow the remaining $707.8 million. The spread over
Adjusted SOFR (SOFR + 0.10%) under the Credit Facility at March 31, 2024 was 0.90%. Subsequent to quarter end, we noticed the administrative agent of the Credit
Facility of corporate investment grade ratings received. These ratings reduce the Credit Facility's spread to 0.775% effective April 17, 2024.
(4)
As of March 31, 2024, the spread over Adjusted SOFR (SOFR + 0.10%) under the 2022 Term Loan was 1.05%. The original maturity date is March 3, 2025 with four
consecutive options to extend the maturity date for an additional six months each. In the second quarter of 2023, the Company entered into a floating-to-fixed interest
rate swap with respect to $200 million of the $400 million Term Loan through the initial maturity date, effectively fixing the underlying SOFR rate at 4.298%. In January
2024, the Company entered into a floating-to-fixed interest rate swap with respect to the remaining $200 million of the $400 million Term Loan through the initial
maturity date, effectively fixing the underlying SOFR rate at 4.6675%. These swaps effectively fixed the underlying SOFR rate at a weighted average of 4.48% for the
entire $400 million through initial maturity. Subsequent to quarter end, we noticed the administrative agent of the 2022 Term Loan of corporate investment grade
ratings received. These ratings reduce the 2022 Term Loan's spread to 0.85% effective April 17, 2024.
(5)
The Company has four consecutive options to extend the maturity date of this term loan for an additional 180 days each. In the third quarter of 2022, the Company
entered into a floating-to-fixed interest rate swap through the initial maturity date of August 30, 2024, effectively fixing the underlying SOFR rate at 4.234%. The spread
over Adjusted SOFR (SOFR + 0.10%) at March 31, 2024 was 1.05%. Subsequent to quarter end, we noticed the administrative agent of the Term Loan of corporate
investment grade ratings received. These ratings reduce the Term Loan's spread to 1.00% effective April 17, 2024.
(6)
Represents $123.0 million and $98.0 million non-cross collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.
(7)
The Company's share of the total borrowing capacity of the construction loan is $156.4 million. The joint venture has one option, subject to conditions, to extend the
maturity date for an additional 12 months from the initial maturity date of September 30, 2025.
(8)
Maturities include principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.
DEBT SCHEDULE (1)
Cousins Properties
31
Q1 2024 Supplemental Information
Joint Venture
Property
Cash Flows to Cousins (2)
Options
Consolidated:
HICO 100 Mill LLC
100 Mill
90% of cash flows until return of
contributed capital to partners;
portions of cash amounts received
in excess of contributed capital
are paid to our partner as a
promote.
Cousins can trigger a sale process, subject to a right of
first offer that can be exercised by partner.
TR Domain Point LLC
Domain Point
Preferred return on preferred
equity contribution, then 96.5% of
remaining cash flows.
Partner has put option under various circumstances.
Unconsolidated:
AMCO 120 WT Holdings LLC
120 West Trinity
20% of cash flows.
Cousins or partner can trigger a buyout upon which
Cousins would receive the office component, and partner
would receive the multifamily component, with a net
settlement at a then agreed upon value.
Crawford Long-CPI, LLC
Medical Offices at
Emory Hospital
50% of cash flows.
Cousins can put its interest to partner, or partner can call
Cousins' interest, at a value determined by appraisal.
Neuhoff Holdings LLC
Neuhoff
50% of cash flows until return of
contributed capital to partners;
portions of cash amounts received
in excess of contributed capital to
equity partners are paid to
development partner as a
promote.
Cousins or its equity 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.
JOINT VENTURE INFORMATION (1)
Cousins Properties
32
Q1 2024 Supplemental Information
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
FFO and EBITDAre
Net income available to common stockholders
$166,793
$22,196
$22,621
$19,361
$18,785
$82,963
$13,288
Depreciation and amortization of real estate assets:
Consolidated properties
295,029
75,662
80,158
79,379
79,250
314,449
86,116
Share of unconsolidated joint ventures
3,927
479
476
485
491
1,931
459
Partners' share of real estate depreciation
(794)
(249)
(307)
(257)
(257)
(1,070)
(268)
Loss (gain) on depreciated property transactions:
Consolidated properties
9
2
-
-
-
2
(101)
Share of unconsolidated joint ventures
(81)
-
-
-
-
-
-
Sale of investments in unconsolidated joint ventures
(56,267)
-
-
-
-
-
-
Non-controlling interest related to unitholders
143
4
3
4
3
14
2
FFO (1)
408,759
98,094
102,951
98,972
98,272
398,289
99,496
Interest Expense
75,139
25,310
26,334
27,516
27,979
107,139
29,436
Non-Real Estate Depreciation and Amortization
558
108
111
113
116
448
115
EBITDAre (1)
484,456
123,512
129,396
126,601
126,367
505,876
129,047
FFO and Net Operating Income from Unconsolidated
Joint Ventures
Income from Unconsolidated Joint Ventures
7,700
673
753
582
291
2,299
348
Depreciation and Amortization of Real Estate
3,927
479
476
485
491
1,931
459
Loss (gain) on sale of depreciated investment
properties, net
(81)
-
-
-
-
-
-
FFO - Unconsolidated Joint Ventures
11,546
1,152
1,229
1,067
782
4,230
807
Loss (gain) on sale of undepreciated property
(4,478)
-
-
-
-
-
-
Interest Expense
2,603
280
362
508
526
1,676
528
Other Expense
70
14
6
24
14
58
31
Other Income
(217)
(37)
(38)
(35)
(30)
(140)
(14)
Net Operating Income - Unconsolidated Joint Ventures
9,524
1,409
1,559
1,564
1,292
5,824
1,352
Market Capitalization
Common Stock Price Per Share at Period End
$25.29
$21.38
$22.80
$20.37
$24.35
$24.35
$24.04
Number of Common Stock/Units Outstanding at
Period End
151,482
151,718
151,774
151,774
151,824
151,824
152,096
Equity Market Capitalization
3,830,980
3,243,731
3,460,447
3,091,636
3,696,914
3,696,914
3,656,388
Consolidated Debt
2,334,606
2,448,942
2,423,761
2,418,403
2,457,627
2,457,627
2,563,332
Share of Unconsolidated Debt
89,398
96,014
124,312
141,468
151,048
151,048
160,646
Debt (1)
2,424,004
2,544,956
2,548,073
2,559,871
2,608,675
2,608,675
2,723,978
Total Market Capitalization
6,254,984
5,788,687
6,008,520
5,651,507
6,305,589
6,305,589
6,380,366
Continued on next page
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
33
Q1 2024 Supplemental Information
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Credit Ratios
Debt (1)
2,424,004
2,544,956
2,548,073
2,559,871
2,608,675
2,608,675
2,723,978
Less: Cash and Cash Equivalents
(5,145)
(3,585)
(8,031)
(6,926)
(6,047)
(6,047)
(5,452)
Less: Share of Unconsolidated Cash and Cash
Equivalents (1)
(1,721)
(8,905)
(7,789)
(8,269)
(2,042)
(2,042)
(6,217)
Net Debt (1)
2,417,138
2,532,466
2,532,253
2,544,676
2,600,586
2,600,586
2,712,309
Total Market Capitalization
6,254,984
5,788,687
6,008,520
5,651,507
6,305,589
6,305,589
6,380,366
Net Debt / Total Market Capitalization
38.6%
43.7%
42.1%
45.0%
41.2%
41.2%
42.5%
Total Assets - Consolidated
7,537,016
7,582,970
7,595,785
7,585,309
7,634,474
7,634,474
7,682,981
Accumulated Depreciation - Consolidated
1,261,752
1,314,000
1,381,054
1,443,382
1,518,572
1,518,572
1,596,116
Undepreciated Assets - Unconsolidated (1)
209,636
240,386
257,697
272,556
289,202
289,202
304,617
Less: Investment in Unconsolidated Joint Ventures
(112,839)
(136,721)
(138,992)
(141,250)
(143,831)
(143,831)
(155,210)
Total Undepreciated Assets (1)
8,895,565
9,000,635
9,095,544
9,159,997
9,298,417
9,298,417
9,428,504
Net Debt (1)
2,417,138
2,532,466
2,532,253
2,544,676
2,600,586
2,600,586
2,712,309
Net Debt / Total Undepreciated Assets (1)
27.2%
28.1%
27.8%
27.8%
28.0%
28.0%
28.8%
Coverage Ratios (1)
Interest Expense
75,139
25,310
26,334
27,516
27,979
107,139
29,436
Scheduled Principal Payments
17,774
2,272
2,214
2,077
2,095
8,658
2,114
Fixed Charges
92,913
27,582
28,548
29,593
30,074
115,797
31,550
EBITDAre
484,456
123,512
129,396
126,601
126,367
505,876
129,047
Fixed Charges Coverage Ratio (EBITDAre) (1)
5.21
4.48
4.53
4.28
4.20
4.37
4.09
Net Debt
2,417,138
2,532,466
2,532,253
2,544,676
2,600,586
2,600,586
2,712,309
Annualized EBITDAre (2)
490,676
494,048
517,584
506,404
505,468
505,468
516,188
Net Debt / Annualized EBITDAre
4.93
5.13
4.89
5.02
5.14
5.14
5.25
Dividend Information
Common Dividends
193,893
48,598
48,650
48,650
48,350
194,248
48,658
FFO
408,759
98,094
102,951
98,972
98,272
398,289
99,496
FFO Payout Ratio
47.4%
49.5%
47.3%
49.2%
49.2%
48.8%
48.9%
Continued on next page
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
34
Q1 2024 Supplemental Information
2022
2023 1st
2023 2nd
2023 3rd
2023 4th
2023
2024 1st
Net income available to common stockholders
$166,793
$22,196
$22,621
$19,361
$18,785
$82,963
$13,288
Depreciation and amortization of real estate assets
298,162
75,892
80,327
79,607
79,484
315,310
86,307
Loss (gain) on depreciated property transactions
(56,339)
2
-
2
(101)
Non-controlling interest related to unitholders
143
4
3
4
3
14
2
FFO (1)
408,759
98,094
102,951
98,972
98,272
398,289
99,496
Amortization of Deferred Financing Costs
3,397
1,030
1,044
1,050
1,051
4,175
1,051
Non-Cash Stock-Based Compensation
10,059
3,512
2,770
2,817
2,801
11,900
4,312
Non-Real Estate Depreciation and Amortization
558
108
111
113
116
448
115
Lease Inducement Amortization
1,629
492
1,991
607
472
3,562
539
Straight-Line Rent Ground Leases
491
126
125
125
105
481
116
Above and Below Market Ground Rent
339
82
82
82
82
328
82
Debt Premium Amortization
(3,913)
-
-
-
-
-
-
Deferred Income - Tenant Improvements
(7,405)
(3,609)
(5,772)
(4,779)
(5,116)
(19,276)
(6,167)
Above and Below Market Rents, Net
(6,444)
(1,559)
(2,525)
(1,371)
(1,421)
(6,876)
(1,460)
Second Generation Capital Expenditures (CAPEX)
(99,501)
(15,467)
(29,317)
(20,224)
(31,900)
(96,908)
(30,212)
Straight-Line Rental Revenue
(28,953)
(8,431)
(3,703)
(7,508)
(5,858)
(25,500)
(8,604)
Loss (Gain) on Sales of Undepreciated Investment
Properties
(4,478)
-
-
(507)
1
(506)
-
FAD (1)
274,538
74,378
67,757
69,377
58,605
270,117
59,268
Weighted Average Shares - Diluted
150,419
151,880
152,126
152,048
152,105
152,040
152,385
FAD per share
$1.83
$0.49
$0.45
$0.46
$0.39
$1.79
$0.39
Common Dividends
193,893
48,598
48,650
48,650
48,350
194,248
48,658
Common Dividends per share
$1.28
$0.32
$0.32
$0.32
$0.32
$1.28
$0.32
FAD Payout Ratio
70.6%
65.3%
71.8%
70.1%
82.5%
71.9%
82.1%
Operations Ratio
Total Undepreciated Assets (1)
8,895,565
9,000,635
9,095,544
9,159,997
9,298,417
9,298,417
9,428,504
General and Administrative Expenses
28,319
8,438
8,021
8,336
7,536
32,331
9,214
Annualized General and Administrative Expenses (2) /
Total Undepreciated Assets
0.30%
0.37%
0.35%
0.36%
0.32%
0.32%
0.39%
2nd Generation CAPEX
Second Generation Leasing Related Costs
68,329
11,182
22,640
10,810
26,198
70,830
23,110
Second Generation Building Improvements
31,172
4,285
6,677
9,414
5,702
26,078
7,102
99,501
15,467
29,317
20,224
31,900
96,908
30,212
(1) Includes the Company's share of unconsolidated joint ventures. These amounts are derived from the amounts in the categories indicated that are recorded
at the joint venture multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures but
believes that including these amounts in the categories indicated is meaningful to investors and analysts.
(2) Amounts represent most recent quarter annualized.
Note: Amounts may differ slightly from other schedules contained herein due to rounding.
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
35
Q1 2024 Supplemental Information
FUNDS FROM OPERATIONS
($ in thousands, except per share amounts)
Three Months Ended March 31,
2024
2023
Dollars
Weighted
Average
Common
Shares
Per
Share
Amount
Dollars
Weighted
Average
Common
Shares
Per
Share
Amount
Net Income Available to Common Stockholders
$13,288
151,945
$0.09
$22,196
151,579
$0.15
Noncontrolling interest related to unitholders
2
25
-
4
25
-
Conversion of unvested restricted stock units
-
415
-
-
276
-
Net Income - Diluted
13,290
152,385
0.09
22,200
151,880
0.15
Depreciation and amortization of real estate
assets:
Consolidated properties
86,116
-
0.56
75,662
-
0.50
Share of unconsolidated joint ventures
459
-
-
479
-
-
Partners' share of real estate depreciation
(268)
-
-
(249)
-
-
Loss (gain) on depreciated property transactions:
Consolidated properties
(101)
-
-
2
-
-
Funds From Operations
$99,496
152,385
$0.65
$98,094
151,880
$0.65
The table above shows FFO and the related reconciliation from Net Income Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries.
See page 39 for definition of FFO.
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
36
Q1 2024 Supplemental Information
($ in thousands)
Three Months Ended
Net Operating Income
March 31, 2024
March 31, 2023
Net income
$13,451
$22,356
Net operating income from unconsolidated joint ventures
1,352
1,409
Fee income
(379)
(374)
Termination fee income
(470)
(136)
Other income
(44)
(2,278)
Reimbursed expenses
140
207
General and administrative expenses
9,214
8,438
Interest expense
28,908
25,030
Depreciation and amortization
86,230
75,770
Other expenses
672
385
Income from unconsolidated joint ventures
(348)
(673)
Loss (gain) on investment property transactions
(101)
2
Net Operating Income
138,625
130,136
Less:
Partners' share of NOI from consolidated joint ventures
(461)
(462)
Cousins' share of NOI
$138,164
$129,674
Net Operating Income
$138,625
$130,136
Non-cash income
(15,852)
(13,448)
Non-cash expense
208
224
Cash-Basis Net Operating Income
$122,981
$116,912
Net Operating Income
Same Property
$134,861
$126,523
Non-Same Property
3,764
3,613
$138,625
$130,136
Cash-Basis Net Operating Income
Same Property
$121,400
$113,883
Non-Same Property
1,581
3,029
$122,981
$116,912
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
37
Q1 2024 Supplemental Information
RECONCILIATION OF 2024 PROJECTED NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS TO 2024 PROJECTED FFO
Full Year 2024 Guidance
($ in thousands, except per share amounts)
Low
High
Dollars
Per Share
Amount (1)
Dollars
Per Share
Amount (1)
Net Income Available to Common Stockholders and Net Income
$48,645
$0.32
$59,317
$0.39
Add: Noncontrolling interest related to unitholders
15
-
15
-
Net Income
48,660
0.32
59,332
0.39
Add: Depreciation and amortization of real estate assets
347,821
2.28
347,821
2.28
Less: Gain on invesment property transactions
(101)
-
(101)
-
Funds From Operations
$396,380
$2.60
$407,052
$2.67
(1) Calculated based on projected weighted average shares outstanding of 152.5 million.
R3 Weight Average Shares
152,454
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
Cousins Properties
38
Q1 2024 Supplemental Information
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,
gains or losses on sales of depreciated investment assets, and impairment are also
excluded from NOI for the reasons described under FFO.
"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. 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.
NON-GAAP FINANCIAL MEASURES - DEFINITIONS
Cousins Properties
39
Q1 2024 Supplemental Information