0000025232false00000252322023-07-272023-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 27, 2023
Cousins Properties Incorporated
(Exact name of registrant as specified in its charter)
Georgia 001-11312 58-0869052
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification Number)

3344 Peachtree Road NE, Suite 1800, Atlanta, Georgia 30326-4802
(Address of principal executive offices) (Zip Code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1 par value per shareCUZNew York Stock Exchange ("NYSE")

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

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


Item 2.02. Results of Operations and Financial Condition.
On July 27, 2023, Cousins Properties Incorporated (the “Company”) issued a Press Release and Quarterly Information Package containing information about the Company’s financial condition and results of operations for the quarter ended June 30, 2023. A copy of the Company’s Press Release and Quarterly Information Package is attached hereto as Exhibit 99.1. The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.
    (a)    Exhibits

Exhibit Number        Exhibit Description


Signatures

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

Date: July 27, 2023


COUSINS PROPERTIES INCORPORATED
By:/s/ Gregg D. Adzema
Gregg D. Adzema
Executive Vice President and Chief Financial Officer



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TABLE OF CONTENTS




Cousins Properties
1
Q2 2023 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, 2022, and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 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, 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; 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, 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; the impact of a public health crisis 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 or 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
Q2 2023 Supplemental Information
EARNINGS RELEASE

COUSINS PROPERTIES REPORTS SECOND QUARTER 2023 RESULTS
Raises Full Year 2023 FFO Guidance
ATLANTA (July 27, 2023) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended June 30, 2023.
“Our customers are returning to more frequent in-person work and our strong second quarter results broadly reflect this positive trend,” said Colin Connolly, president and chief executive officer of Cousins Properties. "Our late-stage leasing pipeline remains encouraging and nearly twice as large as it was at the beginning of the year. As we see first-hand, the highest quality properties that provide customers with a compelling lifestyle experience strongly outperform the broader market. Cousins is well-positioned for the future with a Sun Belt trophy portfolio and an exceptionally strong balance sheet."
Financial Results
For second quarter 2023:
•Net income available to common stockholders was $22.6 million, or $0.15 per share, compared to $34.1 million, or $0.23 per share, for second quarter 2022.
•Funds From Operations ("FFO") was $103.0 million, or $0.68 per share, compared to $104.7 million, or $0.70 per share, for second quarter 2022.
For six months ended June 30, 2023:
•Net income available to common stockholders was $44.8 million, or $0.29 per share, compared to $62.0 million, or $0.42 per share, for six months ended June 30, 2022.
•FFO was $201.0 million, or $1.32 per share, compared to $204.2 million, or $1.37 per share, for six months ended June 30, 2022.
During the second quarter 2023:
•Received formal rejection of SVB Financial's lease at Hayden Ferry in Phoenix, with an effective termination date no later than September 30, 2023. Reduction of $1.6 million in revenue related to the write-down of net assets associated with this lease is included in the results above.

Operations and Leasing Activity
For second quarter 2023:
•Same property net operating income ("NOI") on a cash-basis increased 3.7%.
•Second generation net rent per square foot on a cash-basis increased 7.9%.
•Executed 435,000 square feet of office leases, including 343,000 square feet of new and expansion leases, representing 79% of total leasing activity.
For six months ended June 30, 2023:
•Same property NOI on a cash-basis increased 4.3%.
•Second generation net rent per square foot on a cash-basis increased 7.2%.
•Executed 693,000 square feet of office leases, including 502,000 square feet of new and expansion leases, representing 72% of total leasing activity.





Cousins Properties
3
Q2 2023 Supplemental Information
EARNINGS RELEASE

Financing Activity
•In April 2023, we entered into a floating-to-fixed interest rate swap on $200 million of our recently issued $400 million Term Loan maturing March 2025, fixing the underlying daily SOFR rate at 4.298% through maturity.
•In May 2023, we refinanced the mortgage loan for our Medical Offices at Emory Hospital property in Atlanta, which is owned in a 50-50 joint venture with Emory University. The new $83 million mortgage loan matures in June 2032 and has a fixed interest rate of 4.80%. The proceeds were used to pay off the existing $62 million mortgage that matured on June 1, 2023.

Earnings Guidance
Full year 2023 earnings guidance updated as follows:
•Net income between $0.53 and $0.61 per share, updated from previous guidance of $0.53 and $0.63 per share.
•FFO between $2.57 and $2.65 per share, up from previous guidance between $2.55 and $2.65 per share.
•The change to FFO is primarily driven by an assumed effective termination date of September 30, 2023 for SVB Financial (previously assumed to be June 30, 2023) and higher parking income.
•Guidance does not include any operating property acquisitions, operating property dispositions, or development starts.
•Guidance reflects management’s current plans and assumptions as of the date of this report 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 11:00 a.m. (Eastern Time) on Friday, July 28, 2023 to discuss the results of the quarter ended June 30, 2023. 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 Second 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 2243407. The playback can also be accessed on the Company's website.




Cousins Properties
4
Q2 2023 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 & Chief Executive OfficerExecutive Vice President & Chief Financial OfficerExecutive Vice President, Chief Investment Officer & Managing DirectorExecutive Vice President, Operations
John S. McCollPamela F. RoperJeffrey D. Symes
Executive Vice President, DevelopmentExecutive Vice President, General Counsel & Corporate SecretarySenior Vice President &
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 SecuritiesBMO CapitalEvercore ISIGreen StreetJefferies
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
646.855.5042		John Kim
212.885.4115		Steve Sakwa
212.446.9462		Dylan Burzinski
949.640.8780		Peter Abramowitz
212.336.7241
Investor RelationsStock Exchange J.P. MorganMizuho SecuritiesRW BairdTruist SecuritiesWells FargoWolfe Research
Roni Imbeaux
Vice President, Finance &
Investor Relations
rimbeaux@cousins.com
404.407.1104		NYSE: CUZAnthony Paolone
212.622.6682		Vikram Malhotra
212.282.3827		Nicholas Thillman
414.298.5053		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
Q2 2023 Supplemental Information
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
June 30, 2023December 31, 2022
Assets: 
Real estate assets:  
Operating properties, net of accumulated depreciation of $1,197,310 and $1,079,662 in 2023 and 2022, respectively$6,740,557 $6,738,354 
Projects under development124,105 111,400 
Land158,429 158,430 
7,023,091 7,008,184 
Cash and cash equivalents8,031 5,145 
Accounts receivable12,466 8,653 
Deferred rents receivable196,349 184,043 
Investment in unconsolidated joint ventures138,992 112,839 
Intangible assets, net121,887 136,240 
Other assets, net94,969 81,912 
Total assets$7,595,785 $7,537,016 
Liabilities:
Notes payable$2,423,761 $2,334,606 
Accounts payable and accrued expenses241,563 271,103 
Deferred income172,552 128,636 
Intangible liabilities, net 46,511 52,280 
Other liabilities107,100 103,442 
Total liabilities2,991,487 2,890,067 
Commitments and contingencies
Equity:
Stockholders' investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 154,336,492 and 154,019,214 issued, and 151,774,468 and 151,457,190 outstanding in 2023 and 2022, respectively154,336 154,019 
Additional paid-in capital5,634,996 5,630,327 
Treasury stock at cost, 2,562,024 shares in 2023 and 2022(147,157)(147,157)
Distributions in excess of cumulative net income(1,066,369)(1,013,292)
Accumulated other comprehensive income5,565 1,767 
 Total stockholders' investment4,581,371 4,625,664 
Nonredeemable noncontrolling interests22,927 21,285 
Total equity4,604,298 4,646,949 
Total liabilities and equity$7,595,785 $7,537,016 




Cousins Properties
6
Q2 2023 Supplemental Information
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share amounts)

Three Months EndedSix Months Ended
June 30,June 30,
 2023202220232022
Revenues:   
Rental property revenues$203,954 $183,174 $404,030 $366,401 
Fee income352 2,305 726 3,693 
Other14 201 2,292 2,484 
 204,320 185,680 407,048 372,578 
Expenses:
Rental property operating expenses67,099 62,216 138,312 127,093 
Reimbursed expenses159 677 366 1,037 
General and administrative expenses8,021 6,996 16,459 15,059 
Interest expense25,972 16,549 51,002 32,074 
Depreciation and amortization80,269 69,861 156,039 140,605 
Other476 425 861 646 
 181,996 156,724 363,039 316,514 
Income from unconsolidated joint ventures753 5,280 1,426 6,404 
Gain (loss) on investment property transactions— 28 (2)(41)
Loss on extinguishment of debt— (100)— (100)
Net income23,077 34,164 45,433 62,327 
Net income attributable to noncontrolling interests(456)(112)(616)(291)
Net income available to common stockholders$22,621 $34,052 $44,817 $62,036 
Net income per common share — basic $0.15 $0.23 $0.30 $0.42 
Net income per common share — diluted$0.15 $0.23 $0.29 $0.42 
Weighted average shares — basic151,721 148,837 151,650 148,788 
Weighted average shares — diluted152,126 149,142 152,003 149,090 




Cousins Properties
7
Q2 2023 Supplemental Information
KEY PERFORMANCE METRICS (1)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Property Statistics
Consolidated Operating Properties323333333434343434
Consolidated Rentable Square Feet (in thousands)17,75818,13618,13618,13618,42418,42418,44418,44418,444
Unconsolidated Operating Properties333222222
Unconsolidated Rentable Square Feet (in thousands)1,1791,1791,179711711711711711711
Total Operating Properties353636353636363636
Total Rentable Square Feet (in thousands)18,93719,31519,31518,84719,13519,13519,15519,15519,155
Office Leasing Activity (2)
Net Leased during the Period (SF, in thousands)2,0963245884316321,976258435693
Net Rent (per SF)$35.24$35.45$32.34$35.49$34.04$34.08$34.45$38.65$37.09
Net Free Rent (per SF)(1.45)(2.36)(0.99)(1.97)(2.69)(1.97)(2.07)(2.04)(2.05)
Leasing Commissions (per SF)(2.77)(3.01)(2.65)(2.86)(2.60)(2.74)(2.83)(2.53)(2.64)
Tenant Improvements (per SF)(5.47)(6.34)(5.33)(5.69)(6.61)(5.98)(6.29)(5.88)(6.03)
Leasing Costs (per SF)(9.69)(11.71)(8.97)(10.52)(11.90)(10.69)(11.19)(10.45)(10.72)
Net Effective Rent (per SF)$25.55$23.74$23.37$24.97$22.14$23.39$23.26$28.20$26.37
Change in Second Generation Net Rent24.7 %27.4 %27.2 %20.4 %18.6 %23.2 %20.1 %19.6 %19.8 %
Change in Cash-Basis Second Generation Net Rent15.1 %15.4 %11.6 %4.8 %7.3 %9.5 %6.1 %7.9 %7.2 %
Same Property Information (3)
Percent Leased (period end)90.5 %90.0 %89.7 %89.2 %90.1 %90.1 %90.6 %90.5 %90.5 %
Weighted Average Occupancy 90.0 %87.0 %86.9 %86.6 %86.2 %86.6 %87.0 %87.3 %87.1 %
Change in NOI (over prior year period)(0.5)%(2.0)%(2.2)%1.8 %2.3 %0.0 %5.3 %6.3 %5.9 %
Change in Cash-Basis NOI (over prior year period)3.5 %0.1 %(0.2)%1.5 %2.5 %1.0 %4.9 %3.7 %4.3 %
Development Pipeline (4)
Estimated Project Costs (in thousands)$759,000$566,000$566,000$568,900$428,500$428,500$428,500$428,500$428,500
Estimated Project Costs/Total Undepreciated Assets8.9 %6.6 %6.5 %6.5 %4.8 %4.8 %4.8 %4.7 %4.7 %
Market Capitalization
Common Stock Price $40.28$40.29$29.23$23.35$25.29$25.29$21.38$22.80$22.80
Common Stock/Units Outstanding (in thousands)148,713148,788151,465151,459151,482151,482151,718151,774151,774
Equity Market Capitalization (in thousands)$5,990,160$5,994,669$4,427,322$3,536,568$3,830,980$3,830,980$3,243,731$3,460,447$3,460,447
Debt (in thousands)2,350,3142,462,1972,425,3392,372,9312,424,0042,424,0042,544,9562,548,0732,548,073
Total Market Capitalization (in thousands)$8,340,474$8,456,866$6,852,661$5,909,499$6,254,984$6,254,984$5,788,687$6,008,520$6,008,520
Continued on next page




Cousins Properties
8
Q2 2023 Supplemental Information
KEY PERFORMANCE METRICS (1)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Credit Ratios
Net Debt/Total Market Capitalization28.0 %28.9 %35.1 %39.9 %38.6 %38.6 %43.7 %42.1 %42.1 %
Net Debt/Total Undepreciated Assets27.5 %28.4 %27.7 %26.7 %27.2 %27.2 %28.1 %27.8 %27.8 %
Net Debt/Annualized EBITDAre
4.865.284.934.754.934.935.134.894.89
Fixed Charges Coverage (EBITDAre)
5.455.565.565.134.725.214.484.534.51
Dividend Information
Common Dividend per Share$1.24$0.32$0.32$0.32$0.32$1.28$0.32$0.32$0.64
Funds From Operations (FFO) Payout Ratio45.3 %48.7 %46.3 %46.4 %48.4 %47.4 %49.5 %47.3 %48.4 %
Funds Available for Distribution (FAD) Payout Ratio63.1 %65.7 %69.0 %72.2 %76.6 %70.6 %63.8 %70.6 %67.1 %
Operations Ratio
Annualized General and Administrative Expenses/ Total Undepreciated Assets0.34 %0.38 %0.32 %0.29 %0.30 %0.30 %0.37 %0.35 %0.35 %
Additional Information
In-Place Gross Rent (per SF) (5)$42.85$43.90$44.39$44.85$44.87$44.87$46.02$46.43$46.43
Straight-Line Rental Revenue (in thousands) $25,503$5,501$6,378$8,966$8,108$28,953$8,431$3,703$12,134
Above and Below Market Rents Amortization, Net
(in thousands)
$8,392$1,771$1,669$1,538$1,466$6,444$1,559$2,525$4,084
Second Generation Capital Expenditures
(in thousands)
$81,642$21,280$24,324$26,636$27,261$99,501$13,728$28,171$41,899
(1)For Non-GAAP Financial Measures, see the calculations and reconciliations on pages 31-38.
(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
9
Q2 2023 Supplemental Information
KEY PERFORMANCE METRICS


Total Rentable Square Feet             Equity Market Capitalization           Net Debt / Annualized EBITDAre
chart-3ce108371aba4af4bea.jpg chart-348cd5e0abee434dbd8.jpg chart-85ee4cdfc0744e3791a.jpg




Same Property NOI Change         Second Generation Net Rent Change      Annualized General & Administrative
Cash-Basis (1)                     Cash-Basis (1)             Expenses / Total Undepreciated Assets
chart-e9723c8c0f4d4067bd7.jpg chart-24dfb7d449d74b3fa9c.jpg chart-ee3f431b4cf640e0855.jpg
(1) Office properties only.
    
    Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.




Cousins Properties
10
Q2 2023 Supplemental Information
FUNDS FROM OPERATIONS - SUMMARY

(amounts in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Net Income$278,996 $28,163 $34,164 $80,769 $24,349 $167,445 $22,356 $23,077 $45,433 
Fee and Other Income(21,115)(5,133)(2,955)(1,957)(1,198)(11,243)(2,788)(6,936)(9,724)
General and Administrative Expenses29,321 8,063 6,996 6,498 6,762 28,319 8,438 8,021 16,459 
Interest Expense67,027 15,525 16,549 18,380 22,083 72,537 25,030 25,972 51,002 
Depreciation and Amortization288,092 70,744 69,861 79,116 75,866 295,587 75,770 80,269 156,039 
Reimbursed and Other Expenses4,607 581 1,102 649 1,826 4,158 592 635 1,227 
Income from Unconsolidated Joint Ventures(6,801)(1,124)(5,280)(634)(662)(7,700)(673)(753)(1,426)
NOI from Unconsolidated Joint Ventures19,223 2,719 2,542 2,819 1,444 9,524 1,409 1,559 2,968 
Transaction Loss (Gain)(165,630)69 72 (56,240)(328)(56,427)2 — 2 
NOI (1)$493,720 $119,607 $123,051 $129,400 $130,142 $502,200 $130,136 $131,844 $261,980 
Fee and Other Income (1)21,362 5,168 3,046 2,013 1,232 11,459 2,825 6,974 9,799 
General and Administrative Expenses(29,321)(8,063)(6,996)(6,498)(6,762)(28,319)(8,438)(8,021)(16,459)
Interest Expense (1)(69,937)(16,142)(17,238)(19,390)(22,370)(75,140)(25,310)(26,334)(51,644)
Reimbursed and Other Expenses (1)(5,936)(990)(1,474)(955)(1,942)(5,361)(1,011)(1,401)(2,412)
Depreciation and Amortization of Non-Real Estate Assets(623)(155)(158)(138)(107)(558)(108)(111)(219)
Gain (Loss) on Sales of Undepreciated Investment Properties(64)— 4,500 (22)— 4,478 — — — 
FFO (1)$409,201 $99,425 $104,731 $104,410 $100,193 $408,759 $98,094 $102,951 $201,045 
Weighted Average Shares - Diluted148,891 149,002 149,142 151,695 151,835 150,419 151,880 152,126 152,003 
FFO per Share (1)$2.75 $0.67 $0.70 $0.69 $0.66 $2.72 $0.65 $0.68 $1.32 

(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.




Cousins Properties
11
Q2 2023 Supplemental Information
FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
NOI
Consolidated Properties
The Domain (2)$60,987 $15,443 $15,510 $18,478 $19,273 $68,704 $18,144 $18,466 $36,610 
Terminus (2)27,148 7,439 7,673 9,228 8,568 32,908 8,097 8,442 16,539 
Corporate Center (2)29,106 7,050 7,090 7,144 7,310 28,594 7,467 7,600 15,067 
Spring & 8th (2)29,413 7,424 7,282 7,352 7,361 29,419 7,361 7,372 14,733 
Hayden Ferry (2)24,528 6,133 5,990 6,094 6,087 24,304 5,934 4,323 10,257 
Buckhead Plaza (2)12,577 3,646 4,013 4,563 4,758 16,980 4,766 5,312 10,078 
Northpark (2)26,562 6,098 6,317 5,278 5,006 22,699 5,136 4,901 10,037 
725 Ponce7,669 4,527 4,686 4,596 4,734 18,543 4,777 4,753 9,530 
Fifth Third Center18,592 4,229 4,340 4,675 4,431 17,675 4,732 4,726 9,458 
One Eleven Congress18,193 4,342 4,531 4,547 3,978 17,398 4,246 4,542 8,788 
Avalon (2)14,381 3,637 3,969 4,156 4,165 15,927 4,243 4,145 8,388 
300 Colorado (3)1,130 3,275 3,050 2,762 4,033 13,120 3,772 4,608 8,380 
3344 Peachtree14,927 3,966 3,931 3,848 3,946 15,691 3,992 4,107 8,099 
San Jacinto Center15,652 4,252 4,316 4,113 3,322 16,003 3,940 4,093 8,033 
The Terrace (2)16,713 3,133 3,583 3,225 3,472 13,413 3,698 3,903 7,601 
100 Mill— — 1,405 2,550 3,343 7,298 3,603 3,575 7,178 
BriarLake Plaza (2)18,142 3,879 3,740 3,547 3,580 14,746 3,545 3,588 7,133 
Colorado Tower13,060 3,155 2,746 3,226 3,325 12,452 3,282 3,740 7,022 
Promenade Tower14,933 2,968 2,901 2,867 3,434 12,170 3,377 3,483 6,860 
The RailYard12,496 3,153 3,258 3,255 3,234 12,900 3,332 3,308 6,640 
550 South10,593 2,652 2,665 2,654 2,723 10,694 2,698 2,730 5,428 
Heights Union (2)1,303 1,641 1,461 2,033 3,177 8,312 2,338 2,525 4,863 
Legacy Union One9,466 2,357 2,342 2,355 2,367 9,421 2,364 2,366 4,730 
Domain Point (2)5,055 1,761 1,741 1,837 1,746 7,085 2,025 2,260 4,285 
3350 Peachtree6,083 992 1,771 1,339 1,418 5,520 1,477 1,447 2,924 
111 West Rio5,630 1,419 1,416 1,424 1,410 5,669 1,417 1,395 2,812 
Meridian Mark Plaza4,110 1,042 1,408 1,268 1,243 4,961 1,286 1,215 2,501 
3348 Peachtree5,427 1,257 1,348 984 1,183 4,772 1,050 1,160 2,210 
Research Park V4,044 1,059 1,087 1,162 1,160 4,468 1,166 918 2,084 
Tempe Gateway6,086 1,423 1,057 1,077 716 4,273 819 957 1,776 
The Pointe4,685 1,156 1,211 1,234 1,251 4,852 1,056 695 1,751 
5950 Sherry Lane4,549 951 849 841 828 3,469 861 852 1,713 
Harborview Plaza3,211 844 882 842 861 3,429 849 841 1,690 
Promenade Central (4)9,026 — — — 224 224 716 775 1,491 
Other (5)19,020 585 940 2,027 1,031 4,583 1,161 1,162 2,323 
Subtotal - Consolidated474,497 116,888 120,509 126,581 128,698 492,676 128,727 130,285 259,012 
Continued on next page




Cousins Properties
12
Q2 2023 Supplemental Information
FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Unconsolidated Properties (6)
Medical Offices at Emory Hospital4,332 1,112 1,152 1,126 1,141 4,531 1,054 1,203 2,257 
120 West Trinity (2)827 301 305 350 346 1,302 326 338 664 
300 Colorado (3)2,931 — — — — — — — — 
Other (7)11,133 1,306 1,085 1,343 (43)3,691 29 18 47 
Subtotal - Unconsolidated19,223 2,719 2,542 2,819 1,444 9,524 1,409 1,559 2,968 
Total Net Operating Income (1)493,720 119,607 123,051 129,400 130,142 502,200 130,136 131,844 261,980 
Gain (Loss) on Sales of Undepreciated Investment Properties
Consolidated(64)— — — — — — — — 
Unconsolidated (6)— — 4,500 (22)— 4,478 — — — 
Total Gain (Loss) on Sales of Undepreciated Investment Properties(64)— 4,500 (22)— 4,478 — — — 
Fee and Other Income
Development Fees12,081 817 1,404 957 — 3,178 — — — 
Management Fees (8)3,374 571 901 720 749 2,941 374 352 726 
Termination Fees5,105 1,462 449 242 311 2,464 136 6,570 6,706 
Termination Fees - Unconsolidated (6)81 — — — — — — — — 
Leasing & Other Fees104 — — — — — — — — 
Interest and Other Income450 2,283 201 38 138 2,660 2,278 14 2,292 
Interest and Other Income - Unconsolidated (6)167 35 91 56 34 216 373875
Total Fee and Other Income21,362 5,168 3,046 2,013 1,232 11,459 2,825 6,974 9,799 
General and Administrative Expenses(29,321)(8,063)(6,996)(6,498)(6,762)(28,319)(8,438)(8,021)(16,459)
Interest Expense
Consolidated Interest Expense
Term Loan, Unsecured ($400M)— — — — (4,936)(4,936)(5,856)(6,158)(12,014)
Term Loan, Unsecured ($350M)(4,332)(1,430)(1,918)(3,279)(4,982)(11,609)(4,902)(4,944)(9,846)
Terminus (2)(5,779)(1,406)(1,309)(1,293)(1,636)(5,644)(3,513)(3,514)(7,027)
Credit Facility, Unsecured(5,602)(1,795)(2,585)(3,533)(1,846)(9,759)(3,054)(3,583)(6,637)
Senior Notes, Unsecured ($275M)(10,975)(2,744)(2,744)(2,743)(2,744)(10,975)(2,744)(2,744)(5,488)
Senior Notes, Unsecured ($250M)(9,958)(2,490)(2,489)(2,490)(2,489)(9,958)(2,490)(2,489)(4,979)
Senior Notes, Unsecured ($250M)(9,764)(2,441)(2,441)(2,441)(2,441)(9,764)(2,441)(2,441)(4,882)
Senior Notes, Unsecured ($125M)(4,789)(1,197)(1,198)(1,197)(1,197)(4,789)(1,197)(1,197)(2,394)
Fifth Third Center(4,625)(1,138)(1,131)(1,123)(1,116)(4,508)(1,108)(1,101)(2,209)
Senior Notes, Unsecured ($100M)(4,145)(1,036)(1,037)(1,036)(1,036)(4,145)(1,036)(1,036)(2,072)
Colorado Tower(4,006)(988)(982)(976)(971)(3,917)(965)(960)(1,925)
Domain 10 (3,095)(792)(788)(783)(778)(3,141)(774)(770)(1,544)
Other (9)(6,213)(1,519)(1,518)(1,512)(243)(4,792)(41)(40)(81)
Capitalized (10)6,257 3,451 3,591 4,026 4,332 15,400 5,091 5,005 10,096 
Subtotal - Consolidated Interest Expense(67,026)(15,525)(16,549)(18,380)(22,083)(72,537)(25,030)(25,972)(51,002)
Continued on next page




Cousins Properties
13
Q2 2023 Supplemental Information
FUNDS FROM OPERATIONS - DETAIL (1)


(amounts in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Unconsolidated Interest Expense (6)
Medical Offices at Emory Hospital(1,170)(288)(286)(284)(289)(1,147)(280)(362)(642)
Other (9)(1,741)(329)(403)(726)2 (1,456)— — — 
Subtotal - Unconsolidated Interest Expense(2,911)(617)(689)(1,010)(287)(2,603)(280)(362)(642)
Total Interest Expense(69,937)(16,142)(17,238)(19,390)(22,370)(75,140)(25,310)(26,334)(51,644)
Reimbursed and Other Expenses
Reimbursed Expenses (8)(2,476)(360)(677)(418)(569)(2,024)(207)(159)(366)
Property Taxes and Other Holding Costs(941)(230)(262)(247)(326)(1,065)(323)(276)(599)
Partners' Share of FFO in Consolidated Joint Ventures(1,284)(396)(258)(288)(362)(1,304)(406)(759)(1,165)
Severance (406)— (170)— — (170)(72)(90)(162)
Gain (Loss) on Extinguishment of Debt— — (100)— 269 169 — — — 
Predevelopment & Other Costs(829)(4)(7)(2)(954)(967)(3)(117)(120)
Total Reimbursed and Other Expenses(5,936)(990)(1,474)(955)(1,942)(5,361)(1,011)(1,401)(2,412)
Depreciation and Amortization of Non-Real Estate Assets(623)(155)(158)(138)(107)(558)(108)(111)(219)
FFO $409,201 $99,425 $104,731 $104,410 $100,193 $408,759 $98,094 $102,951 $201,045 
Weighted Average Shares - Diluted148,891 149,002 149,142 151,695 151,835 150,419 151,880 152,126 152,003 
FFO per Share$2.75 $0.67 $0.70 $0.69 $0.66 $2.72 $0.65 $0.68 $1.32 


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) In December 2021, we purchased the remaining 50% interest from our partners; as a result, we began consolidating 300 Colorado.
(4) A redevelopment of Promenade Central reached substantial completion in the fourth quarter of 2022.
(5) Primarily represents properties sold prior to June 30, 2023, see page 24. Also includes College Street Garage and properties in the final stages of development and not yet stabilized.
(6) 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.
(7) Primarily represents unconsolidated investments sold prior to June 30, 2023, see page 24. Also includes NOI from unconsolidated investments not yet stabilized.
(8) 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.
(9) Represents interest on consolidated loans repaid and our share of interests on loans of unconsolidated investments sold prior to June 30, 2023.
(10) 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
Q2 2023 Supplemental Information
PORTFOLIO STATISTICS
Office Properties (1)Rentable Square FeetFinancial Statement PresentationCompany's Ownership InterestEnd of Period LeasedWeighted Average Occupancy (2)% of Total
NOI / 2Q23		Property Level Debt ($ in thousands) (3)
2Q231Q232Q231Q23
Terminus (4)1,226,000 Consolidated100%84.4%86.4%82.6%81.1%6.4%$220,664 
Spring & 8th (4)765,000 Consolidated100%100.0%100.0%100.0%100.0%5.6%— 
Buckhead Plaza (4)678,000 Consolidated100%90.8%90.6%87.4%85.7%4.0%— 
Northpark (4)1,539,000 Consolidated100%73.8%76.7%71.9%74.6%3.7%— 
725 Ponce372,000 Consolidated100%100.0%100.0%98.4%98.4%3.6%— 
Avalon (4)480,000 Consolidated100%100.0%100.0%98.0%97.3%3.2%— 
3344 Peachtree484,000 Consolidated100%96.9%96.9%96.9%96.9%3.1%— 
Promenade Tower777,000 Consolidated100%88.3%81.7%74.3%71.2%2.7%— 
3350 Peachtree413,000 Consolidated100%59.8%57.8%54.3%53.3%1.1%— 
Meridian Mark Plaza160,000 Consolidated100%100.0%100.0%100.0%100.0%0.9%— 
Medical Offices at Emory Hospital358,000 Unconsolidated50%99.5%99.5%99.5%99.5%0.9%41,147 
3348 Peachtree258,000 Consolidated100%75.6%76.3%75.8%74.9%0.9%— 
Promenade Central (5) (6)378,000 Consolidated100%66.9%61.6%28.0%19.9%0.6%— 
120 West Trinity Office43,000 Unconsolidated20%100.0%100.0%100.0%100.0%0.1%— 
ATLANTA (6)7,931,000 86.5%86.6%83.5%83.2%36.8%261,811 
The Domain (4)1,899,000 Consolidated100%100.0%100.0%99.7%99.8%14.0%73,130 
300 Colorado378,000 Consolidated100%100.0%100.0%92.2%88.3%3.5%— 
One Eleven Congress519,000 Consolidated100%80.8%83.6%82.7%80.7%3.5%— 
San Jacinto Center399,000 Consolidated100%93.9%93.9%80.7%80.8%3.1%— 
The Terrace (4)619,000 Consolidated100%80.0%79.4%79.1%79.2%3.0%— 
Colorado Tower373,000 Consolidated100%98.8%97.4%90.8%87.6%2.8%107,914 
Domain Point (4)240,000 Consolidated96.5%100.0%100.0%100.0%97.7%1.7%— 
Research Park V173,000 Consolidated100%97.1%97.1%82.1%97.1%0.8%— 
AUSTIN 4,600,000 94.4%94.5%91.4%91.1%32.4%181,044 
Corporate Center (4)1,227,000 Consolidated100%96.9%96.2%96.3%96.9%5.8%— 
Heights Union (4) (5)294,000 Consolidated100%100.0%100.0%98.0%94.1%1.9%— 
Harborview Plaza205,000 Consolidated100%85.7%80.8%80.8%80.8%0.6%— 
The Pointe253,000 Consolidated100%86.3%87.3%82.5%86.0%0.6%— 
TAMPA1,979,000 94.8%94.1%93.2%93.4%8.9%— 
Fifth Third Center692,000 Consolidated100%90.8%90.8%90.8%90.8%3.6%128,160 
The RailYard329,000 Consolidated100%99.4%99.4%99.4%99.0%2.5%— 
550 South394,000 Consolidated100%97.9%97.9%97.9%97.9%2.1%— 
CHARLOTTE1,415,000 94.8%94.8%94.8%94.7%8.2%128,160 
Hayden Ferry (4) (7)792,000 Consolidated100%91.0%93.1%90.4%89.7%3.3%— 
100 Mill (5)288,000 Consolidated90%92.3%92.3%88.6%92.3%2.7%— 
111 West Rio225,000 Consolidated100%100.0%100.0%100.0%100.0%1.1%— 
Tempe Gateway264,000 Consolidated100%62.4%55.2%56.9%46.9%0.7%— 
PHOENIX1,569,000 87.6%87.5%85.7%84.3%7.8%— 
Continued on next page




Cousins Properties
15
Q2 2023 Supplemental Information
PORTFOLIO STATISTICS
Office Properties (1)Rentable Square FeetFinancial Statement PresentationCompany's Ownership InterestEnd of Period LeasedWeighted Average Occupancy (2)% of Total
NOI / 2Q23		Property Level Debt ($ in thousands) (3)
2Q231Q232Q231Q23
Legacy Union One319,000 Consolidated100%100.0%100.0%100.0%100.0%1.8%— 
5950 Sherry Lane197,000 Consolidated100%80.3%76.3%79.9%76.9%0.6%— 
DALLAS516,000 92.5%91.0%92.3%91.2%2.4%— 
BriarLake Plaza (4)835,000 Consolidated100%97.6%97.5%79.8%76.3%2.7%— 
HOUSTON835,000 97.6%97.5%79.8%76.3%2.7%— 
TOTAL OFFICE (6)18,845,000 90.8%90.8%87.7%87.2%99.2%$571,015 
Other Properties (1)
College Street Garage - Charlotte (5)N/AConsolidated100%N/AN/AN/AN/A0.7%— 
120 West Trinity Apartment - Atlanta (330 units) (5)310,000 Unconsolidated20%98.2%97.1%95.1%95.7%0.1%— 
TOTAL OTHER310,000 98.2%97.1%95.1%95.7%0.8%$— 
TOTAL (6) 19,155,000 90.8%90.8%87.7%87.2%100.0%$571,015 


(1)
Represents the Company's operating properties, excluding properties on the development pipeline and properties sold prior to June 30, 2023.
(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 June 30, 2023.
(4)Contains two or more buildings that are grouped together for reporting purposes.
(5)
Not included in Same Property as of June 30, 2023.
(6)
While under redevelopment and until stabilization, Promenade Central was excluded from the Atlanta, Total Office, and Total Portfolio calculations of end of period leased and weighted average occupancy at and for the quarters ended June 30, 2023 and March 31, 2023. Promenade Central will be added back to the total calculations when weighted average occupancy stabilizes, which is the earlier of when it reaches 90% occupancy or in fourth quarter 2023 (one year after the redevelopment activity was substantially complete).
(7)
Hayden Ferry 1 in this group of buildings has been excluded from Same Property as of June 30, 2023 due to the financial impact of the SVB Financial lease rejection and our plans to start a redevelopment of this building in the fourth quarter of 2023.















Cousins Properties
16
Q2 2023 Supplemental Information
PORTFOLIO STATISTICS


Second Quarter 2023 Portfolio NOI by Market


supplementmap.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
Q2 2023 Supplemental Information
SAME PROPERTY PERFORMANCE (1)


($ in thousands)
Three Months Ended June 30,
20232022% Change
Rental Property Revenues (2)$188,037$177,0776.2 %
Rental Property Operating Expenses (2)64,25860,6136.0 %
Same Property Net Operating Income$123,779$116,4646.3 %
Cash-Basis Rental Property Revenues (3)$177,940$170,1994.5 %
Cash-Basis Rental Property Operating Expenses (4)64,02160,3886.0 %
Cash-Basis Same Property Net Operating Income$113,919$109,8113.7 %
End of Period Leased90.5 %90.0 %
Weighted Average Occupancy87.3 %87.3 %
Six Months Ended June 30,
20232022% Change
Rental Property Revenues (2)$377,381$355,0276.3 %
Rental Property Operating Expenses (2)133,019124,2447.1 %
Same Property Net Operating Income$244,362$230,7835.9 %
Cash-Basis Rental Property Revenues (3)$358,112$339,9375.3 %
Cash-Basis Rental Property Operating Expenses (4)132,561123,7607.1 %
Cash-Basis Same Property Net Operating Income$225,551$216,1774.3 %
Weighted Average Occupancy87.1 %87.3 %


(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
Q2 2023 Supplemental Information
OFFICE LEASING ACTIVITY

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
NewRenewalExpansionTotalNewRenewalExpansionTotal
 Gross leased square feet (1)511,351841,459
 Less exclusions (2)(75,859)(148,129)
 Net leased square feet231,543 92,325 111,624 435,492379,937191,524121,869693,330
 Number of transactions 22 14 4 403328869
 Lease term in years (3)8.4 6.3 4.5 7.08.84.74.66.9
 Net effective rent calculation (per square foot
 per year) (3)
      Net annualized rent (4) $39.68 $36.84 $38.02 $38.65 $38.81 $33.38 $37.56 $37.09 
      Net free rent(2.55)(2.97)(0.20)(2.04)(2.61)(2.01)(0.37)(2.05)
      Leasing commissions (2.89)(2.96)(1.41)(2.53)(2.99)(2.67)(1.50)(2.64)
      Tenant improvements (8.39)(5.98)(0.63)(5.88)(8.51)(4.23)(1.16)(6.03)
      Total leasing costs(13.83)(11.91)(2.24)(10.45)(14.11)(8.91)(3.03)(10.72)
 Net effective rent $25.85 $24.93 $35.78 $28.20 $24.70 $24.47 $34.53 $26.37 
 Second generation leased square footage (5)256,190412,126
 Increase in straight-line basis second generation net rent per square foot (6) 19.6 %19.8 %
 Increase in cash-basis second generation net rent per square foot (7)7.9 %7.2 %

(1)Comprised of total square feet leased, unadjusted for ownership share and excluding apartment leasing.
(2)Adjusted for leases one year or less, along with 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 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 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
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Q2 2023 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.
2023706,497 4.3 %$29,254 3.5 %$41.41 
20241,049,765 6.4 %46,197 5.5 %44.01 
20251,748,189 10.6 %80,510 9.6 %46.05 
20261,283,069 7.8 %59,820 7.1 %46.62 
20271,694,776 10.3 %76,388 9.1 %45.07 
20281,638,813 9.9 %81,146 9.6 %49.51 
20291,587,005 9.6 %82,178 9.7 %51.78 
20301,518,114 9.2 %83,536 9.9 %55.03 
20311,175,109 7.1 %70,632 8.4 %60.11 
2032 & Thereafter4,119,319 24.8 %233,233 27.6 %56.62 
Total16,520,656 100.0 %$842,894 100.0 %$51.02 

chart-11b1ffd193324313803.jpg
(1) Company's share of leases expiring after June 30, 2023. 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
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Q2 2023 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)
1 Amazon531,107,805 $59,275 8.0%5.7
2 NCR Corporation22815,634 40,379 5.5%9.9
3 Pioneer Natural Resources21359,660 25,868 3.5%8.2
4 Meta Platforms11319,863 19,481 2.6%8.1
5 Expedia11315,882 17,926 2.4%7.8
6 Bank of America22347,139 12,406 1.7%2.5
7 Apache11210,012 9,658 1.3%13.5
8 Wells Fargo53201,801 9,219 1.2%2.6
9 SVB Financial Group (3)11204,751 8,596 1.2%0.3
10 Ovintiv USA11318,582 8,190 1.1%4.0
11 WeWork Companies42169,050 7,967 1.1%10.3
12 ADP11225,000 7,668 1.0%4.8
13 Westrock Shared Services11205,185 7,309 1.0%6.8
14 Regus Equity Business Centers54145,119 7,141 1.0%5.4
15 BlackRock11131,656 6,937 0.9%12.9
16 McGuireWoods22187,119 6,891 0.9%3.6
17 Workrise Technologies1193,210 6,681 0.9%5.1
18 Amgen11163,169 6,477 0.9%5.3
19 Samsung Engineering America11133,860 6,348 0.9%3.4
20 McKinsey & Company Inc.22130,513 6,308 0.9%9.4
Total5,785,010 $280,725 38.0%6.6
(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 June 30, 2023. If the tenant is in a free rent period as of June 30, 2023, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay full cash rent.
(3)Information related to SVB Financial Group's ("SVB Financial") lease, including its rejection in the SVB Financial bankruptcy proceedings, can be found in a Current Report on Form 8-K filed on June 5, 2023. SVB Financial's formal rejection order included an effective date no later than September 30, 2023.
Note:This schedule includes leases that have commenced. Leases that have been signed but have not commenced are excluded.






Cousins Properties
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Q2 2023 Supplemental Information
TENANT INDUSTRY DIVERSIFICATION
chart-d0e4523d216f4fb6b89.jpg


(1) Annualized Rent represents the annualized rent including the tenant's share of estimated operating expenses, if applicable, paid by the tenant as of June 30, 2023. If the tenant is in a free rent period as of June 30, 2023, 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.




Cousins Properties
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Q2 2023 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 $1,017,700 
Completed Property Developments
ProjectTypeMarketCompany's Ownership InterestTiming (5)Square FeetTotal Project Cost ($ in thousands) (1)
2022
300 ColoradoOfficeAustin100%1Q369,000 $193,000 
100 MillOfficePhoenix90%4Q288,000 156,000 
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 
2,927,000 $1,194,000 

(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 (90% economic occupancy or one year beyond the cessation of major construction activity).

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Q2 2023 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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Q2 2023 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)
Neuhoff (5)MixedNashville50 %3Q21$563,000 $281,500 $406,516 $203,258 
Commercial448,00011 %4Q234Q24
Apartments542— %2Q242Q25
Domain 9OfficeAustin100 %2Q21338,000147,000 147,000 117,850 117,850 97 %1Q241Q25
Total $710,000 $428,500 $524,366 $321,108 



(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 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 revenue recognition represents the quarter within which the Company first recognized or estimates it will begin recognizing revenue under GAAP.
(4)A project is stabilized when it 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 on the core building development. Until the project is stabilized, the Company capitalizes interest, real estate taxes, and certain operating expenses on the unoccupied portion of development properties, which have ongoing construction of tenant improvements.
(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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Q2 2023 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 $166,513 
159351
Company's Share46.4 $159,709 




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









Cousins Properties
26
Q2 2023 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 Date20232024202520262027ThereafterTotal PrincipalDeferred Loan Costs Total
Consolidated Debt - Floating Rate
Term Loan, Unsecured (Adjusted SOFR + 1.05% to 1.65%) (2)100%6.24%3/3/25$—$—$200,000$—$—$—$200,000$(872)$199,128 
Credit Facility, Unsecured (Adjusted SOFR + 0.90% to 1.40%) (3) 100%6.09%4/30/27————148,500—148,500— 148,500 
Total Consolidated Floating Rate Debt——200,000—148,500—348,500(872)347,628 
Consolidated Debt - Fixed Rate
Term Loan, Unsecured (4)100%5.38%8/30/24—350,000————350,000(750)349,250 
Senior Note, Unsecured100%3.95%7/6/29—————275,000275,000(673)274,327 
Senior Note, Unsecured100%3.91%7/6/25——250,000———250,000(366)249,634 
Senior Note, Unsecured100%3.86%7/6/28—————250,000250,000(566)249,434 
Terminus (5)100%6.34%1/15/31—————221,000221,000(336)220,664 
Term Loan, Unsecured (2)100%5.45%3/3/25——200,000———200,000(918)199,082 
Fifth Third Center 100%3.37%10/1/263,6833,8093,940116,941——128,373(213)128,160 
Senior Note, Unsecured100%3.78%7/6/27————125,000—125,000(254)124,746 
Colorado Tower 100%3.45%9/1/262,7362,8312,93199,721——108,219(305)107,914 
Senior Note, Unsecured100%4.09%7/6/27————100,000—100,000(208)99,792 
Domain 10100%3.75%11/1/242,00071,549————73,549(419)73,130 
Total Consolidated Fixed Rate Debt8,419428,189456,871216,662225,000746,0002,081,141(5,008)2,076,133 
Total Consolidated Debt8,419428,189656,871216,662373,500746,0002,429,641(5,880)2,423,761 
Unconsolidated Debt - Floating Rate
Neuhoff (SOFR + 3.45%) (6)50%8.60%9/30/25——84,550———84,550(1,385)83,165 
Total Unconsolidated Floating Rate Debt——84,550———84,550(1,385)83,165 
.
Unconsolidated Debt - Fixed Rate
Medical Offices at Emory Hospital (7)50%4.80%6/1/32—————41,50041,500(353)41,147 
Total Unconsolidated Fixed Rate Debt—————41,50041,500(353)41,147 
Total Unconsolidated Debt——84,550——41,500126,050(1,738)124,312 
Total Debt$8,419$428,189$741,421$216,662$373,500$787,500$2,555,691$(7,618)$2,548,073 
Total Maturities (8)$—$420,865$734,550$215,159$373,500$787,500$2,531,574
% of Maturities— %17 %29 %8 %15 %31 %100 %





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Cousins Properties
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Q2 2023 Supplemental Information
DEBT SCHEDULE (1)



Debt Maturity Schedule as of June 30, 2023


auditreportjune2023debtmat.jpg

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Cousins Properties
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Q2 2023 Supplemental Information
DEBT SCHEDULE (1)





Floating and Fixed Rate Debt Analysis

Total Principal
($ in thousands)		Total Debt (%)Weighted Average Interest RateWeighted Average Maturity (Years) (9)
Floating Rate Debt$433,050 17 %6.65 %2.5 
Fixed Rate Debt2,122,641 83 %4.51 %3.8 
Total Debt$2,555,691 100 %4.87 %3.5 












(1)All amounts are presented at Company share.
(2)
As of June 30, 2023, the spread over Adjusted SOFR (SOFR + 0.10%) under the Term Loan was 1.05%. The loan matures on March 3, 2025 with four consecutive options to extend the maturity date for an additional six months each. Effective April 19, 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 maturity date fixing the underlying SOFR rate at 4.298%.
(3)
As of June 30, 2023, the Company had $148.5 million drawn under the Credit Facility and had the ability to borrow the remaining $851.5 million. The spread over Adjusted SOFR (SOFR + 0.10%) under the Credit Facility at June 30, 2023 was 0.90%.
(4)
In the third quarter of 2022, the Company entered into a floating-to-fixed interest rate swap through the maturity date effectively fixing the underlying SOFR rate at 4.234%. The spread over Adjusted SOFR (SOFR + 0.10%) at June 30, 2023 was 1.05%. The Company has four consecutive options to extend the maturity date for an additional six months each.
(5)Represents $123.0 million and $98.0 million non-cross collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.
(6)The Company's share of the total borrowing capacity of the construction loan is $156.4 million. The joint venture has a one option to extend the maturity date for an additional 12 months. Effective April 10, 2023, the interest rate changed from LIBOR + 3.45% to SOFR + 3.45%.
(7)
In May 2023, the Company refinanced the mortgage loan for its Medical Offices at Emory Hospital property in Atlanta, owned in a 50-50 joint venture. This $83 million interest-only mortgage loan matures in June 2032 and has a fixed interest rate of 4.80%. The proceeds were used to pay off the existing $62 million mortgage that matured on June 1, 2023.
(8)Maturities include principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.
(9)If the Company exercises all available extension options noted above, the weighted average years to maturity increases to 4.0 years.




Cousins Properties
29
Q2 2023 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 promote.Cousins can trigger a sale process, 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 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, LLCMedical Offices at Emory Hospital50% 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 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.




Cousins Properties
30
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

($ in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
FFO and EBITDAre
Net income available to common stockholders$278,586 $27,984 $34,052 $80,639 $24,118 $166,793 $22,196 $22,621 $44,817 
Depreciation and amortization of real estate assets:
Consolidated properties287,469 70,589 69,703 78,978 75,759 295,029 75,662 80,158 155,820 
Share of unconsolidated joint ventures9,674 1,124 1,111 1,189 503 3,927 479 476 955 
Partners' share of real estate depreciation(929)(223)(153)(182)(236)(794)(249)(307)(556)
Loss (gain) on depreciated property transactions:
Consolidated properties(152,611)69 (28)20 (52)9 2 — 2 
Share of unconsolidated joint ventures39 (124)40 — 3 (81)— — — 
Sale of investments in unconsolidated joint ventures(13,083)— — (56,260)(7)(56,267)— — — 
Non-controlling interest related to unitholders56 6 6 26 105 143 4 3 7 
FFO (1)409,201 99,425 104,731 104,410 100,193 408,759 98,094 102,951 201,045 
Interest Expense69,938 16,142 17,238 19,390 22,369 75,139 25,310 26,334 51,644 
Non-Real Estate Depreciation and Amortization623 155 158 138 107 558 108 111 219 
EBITDAre (1)
479,762 115,722 122,127 123,938 122,669 484,456 123,512 129,396 252,908 
FFO and Net Operating Income from Unconsolidated Joint Ventures
Income from Unconsolidated Joint Ventures6,801 1,124 5,280 634 662 7,700 673 753 1,426 
Depreciation and Amortization of Real Estate9,674 1,124 1,111 1,189 503 3,927 479 476 955 
Loss (gain) on sale of depreciated investment properties, net39 (124)40 — 3 (81)— — — 
FFO - Unconsolidated Joint Ventures16,514 2,124 6,431 1,823 1,168 11,546 1,152 1,229 2,381 
Loss (gain) on sale of undepreciated property— — (4,500)22 — (4,478)— — — 
Interest Expense2,911 617 689 1,010 287 2,603 280 362 642 
Other Expense46 11 16 19 24 70 14 6 20 
Termination Fee Income(81)— — — — — — — — 
Other Income(167)(33)(94)(55)(35)(217)(37)(38)(75)
Net Operating Income - Unconsolidated Joint Ventures19,223 2,719 2,542 2,819 1,444 9,524 1,409 1,559 2,968 
Market Capitalization
Common Stock Price at Period End$40.28 $40.29 $29.23 $23.35 $25.29 $25.29 $21.38 $22.80 $22.80 
Number of Common Stock/Units Outstanding at
Period End		148,713 148,788 151,465 151,459 151,482 151,482 151,718 151,774 151,774 
Equity Market Capitalization5,990,160 5,994,669 4,427,322 3,536,568 3,830,980 3,830,980 3,243,731 3,460,447 3,460,447 
Consolidated Debt2,237,509 2,349,484 2,305,637 2,295,989 2,334,606 2,334,606 2,448,942 2,423,761 2,423,761 
Share of Unconsolidated Debt112,805 112,713 119,702 76,942 89,398 89,398 96,014 124,312 124,312 
Debt (1)2,350,314 2,462,197 2,425,339 2,372,931 2,424,004 2,424,004 2,544,956 2,548,073 2,548,073 
Total Market Capitalization8,340,474 8,456,866 6,852,661 5,909,499 6,254,984 6,254,984 5,788,687 6,008,520 6,008,520 
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Cousins Properties
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Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
($ in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Credit Ratios
Debt (1) 2,350,314 2,462,197 2,425,339 2,372,931 2,424,004 2,424,004 2,544,956 2,548,073 2,548,073 
Less: Cash and Cash Equivalents(8,937)(7,000)(4,057)(5,507)(5,145)(5,145)(3,585)(8,031)(8,031)
Less: Share of Unconsolidated Cash and Cash Equivalents (1)(4,285)(9,217)(13,110)(10,894)(1,721)(1,721)(8,905)(7,789)(7,789)
Net Debt (1)2,337,092 2,445,980 2,408,172 2,356,530 2,417,138 2,417,138 2,532,466 2,532,253 2,532,253 
Total Market Capitalization8,340,474 8,456,866 6,852,661 5,909,499 6,254,984 6,254,984 5,788,687 6,008,520 6,008,520 
Net Debt / Total Market Capitalization28.0 %28.9%35.1 %39.9 %38.6 %38.6 %43.7 %42.1 %42.1 %
Total Assets - Consolidated7,312,034 7,360,095 7,380,124 7,496,072 7,537,016 7,537,016 7,582,970 7,595,785 7,595,785 
Accumulated Depreciation - Consolidated1,065,047 1,110,315 1,158,044 1,218,996 1,261,752 1,261,752 1,314,000 1,381,054 1,381,054 
Undepreciated Assets - Unconsolidated (1)204,423 221,851 257,685 204,033 209,636 209,636 240,386 257,697 257,697 
Less: Investment in Unconsolidated Joint Ventures(77,811)(93,307)(103,215)(106,389)(112,839)(112,839)(136,721)(138,992)(138,992)
Total Undepreciated Assets (1)8,503,693 8,598,954 8,692,638 8,812,712 8,895,565 8,895,565 9,000,635 9,095,544 9,095,544 
Net Debt (1)2,337,092 2,445,980 2,408,172 2,356,530 2,417,138 2,417,138 2,532,466 2,532,253 2,532,253 
Net Debt / Total Undepreciated Assets (1)27.5 %28.4%27.7 %26.7 %27.2 %27.2 %28.1 %27.8 %27.8 %
Coverage Ratios (1)
Interest Expense69,938 16,142 17,238 19,390 22,369 75,139 25,310 26,334 51,644 
Scheduled Principal Payments18,131 4,675 4,719 4,764 3,616 17,774 2,272 2,214 4,486 
Fixed Charges88,069 20,817 21,957 24,154 25,985 92,913 27,582 28,548 56,130 
EBITDAre
479,762 115,722 122,127 123,938 122,669 484,456 123,512 129,396 252,908 
Fixed Charges Coverage Ratio (EBITDAre) (1)
5.45 5.56 5.56 5.13 4.72 5.21 4.48 4.53 4.51 
Net Debt2,337,092 2,445,980 2,408,172 2,356,530 2,417,138 2,417,138 2,532,466 2,532,253 2,532,253 
Annualized EBITDAre (2)
480,476 462,888 488,508 495,752 490,676 490,676 494,048 517,584 517,584 
Net Debt / Annualized EBITDAre
4.86 5.28 4.93 4.75 4.93 4.93 5.13 4.89 4.89 
Dividend Information
Common Dividends185,176 48,447 48,523 48,398 48,525 193,893 48,598 48,650 97,248 
FFO409,201 99,425 104,731 104,410 100,193 408,759 98,094 102,951 201,045 
FFO Payout Ratio45.3 %48.7%46.3 %46.4 %48.4 %47.4 %49.5 %47.3 %48.4 %
Continued on next page




Cousins Properties
32
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
($ in thousands, except per share amounts)
20212022 1st2022 2nd2022 3rd2022 4th20222023 1st2023 2ndYTD 2023
Net income available to common stockholders$278,586 $27,984 $34,052 $80,639 $24,118 $166,793 $22,196 $22,621 $44,817 
Depreciation and amortization of real estate assets296,214 71,490 70,661 79,985 76,026 298,162 75,892 80,327 156,219 
Loss (gain) on depreciated property transactions(165,655)(55)12 (56,240)(56)(56,339)2 — 2 
Non-controlling interest related to unitholders56 6 6 26 105 143 4 3 7 
FFO (1)409,201 99,425 104,731 104,410 100,193 408,759 98,094 102,951 201,045 
Amortization of Deferred Financing Costs3,063 973 923 818 683 3,397 1,030 1,044 2,074 
Non-Cash Stock-Based Compensation7,005 2,748 2,448 2,299 2,564 10,059 3,512 2,770 6,282 
Non-Real Estate Depreciation and Amortization623 155 158 138 107 558 108 111 219 
Lease Inducements3,434 351 375 440 463 1,629 492 1,991 2,483 
Straight-Line Rent Ground Leases449 124 121 121 125 491 126 125 251 
Above and Below Market Ground Rent159 92 82 82 83 339 82 82 164 
Debt Premium Amortization(3,664)(916)(998)(998)(1,001)(3,913)— — — 
Deferred Income - Tenant Improvements(9,430)(633)(611)(3,139)(3,022)(7,405)(3,609)(5,772)(9,381)
Above and Below Market Rents, Net(10,762)(1,771)(1,669)(1,538)(1,466)(6,444)(1,559)(2,525)(4,084)
Second Generation Capital Expenditures (CAPEX)(81,642)(21,280)(24,324)(26,636)(27,261)(99,501)(13,728)(28,171)(41,899)
Straight-Line Rental Revenue(24,821)(5,501)(6,378)(8,966)(8,108)(28,953)(8,431)(3,703)(12,134)
Loss (Gain) on Sales of Undepreciated Investment Properties64 — (4,500)22 — (4,478)— — — 
FAD (1)293,679 73,767 70,358 67,053 63,360 274,538 76,117 68,903 145,020 
Weighted Average Shares - Diluted148,891 149,002 149,142 151,695 151,835 150,419 151,880 152,126 152,003 
FAD per share$1.97 $0.50 $0.47 $0.44 $0.42 $1.83 $0.50 $0.45 $0.95 
Common Dividends185,176 48,447 48,523 48,398 48,525 193,893 48,598 48,650 97,248 
Common Dividends per share$1.24 $0.32 $0.32 $0.32 $0.32 $1.28 $0.32 $0.32 $0.64 
FAD Payout Ratio 63.1 %65.7%69.0 %72.2 %76.6 %70.6 %63.8 %70.6 %67.1 %
Operations Ratio
Total Undepreciated Assets (1)8,503,693 8,598,954 8,692,638 8,812,712 8,895,565 8,895,565 9,000,635 9,095,544 9,095,544 
General and Administrative Expenses29,321 8,063 6,996 6,498 6,762 28,319 8,438 8,021 16,459 
Annualized General and Administrative Expenses (2) / Total Undepreciated Assets0.34 %0.38%0.32 %0.29 %0.30 %0.30 %0.37 %0.35 %0.35 %
2nd Generation CAPEX
Second Generation Leasing Related Costs58,908 13,898 20,524 19,136 14,771 68,329 11,182 22,640 33,822 
Second Generation Building Improvements22,734 7,382 3,800 7,500 12,490 31,172 2,546 5,531 8,077 
81,642 21,280 24,324 26,636 27,261 99,501 13,728 28,171 41,899 
(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.







Cousins Properties
33
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

FUNDS FROM OPERATIONS

($ in thousands, except per share amounts)
 
Three Months Ended June 30,
 
2023
2022
DollarsWeighted Average Common SharesPer Share AmountDollarsWeighted Average Common SharesPer Share Amount
Net Income Available to Common Stockholders$22,621 151,721$0.15 $34,052 148,837 $0.23 
Noncontrolling interest related to unitholders 3 25— 6 25 — 
Conversion of unvested restricted stock units— 380— — 280 — 
Net Income — Diluted 22,624 152,1260.15 34,058 149,142 0.23 
Depreciation and amortization of real estate assets:
Consolidated properties80,158 — 0.53 69,703 — 0.47 
Share of unconsolidated joint ventures476 — — 1,111 — — 
Partners' share of real estate depreciation(307)— — (153)— — 
Loss (gain) on depreciated property transactions:
Consolidated properties— — — (28)— — 
Share of unconsolidated joint ventures— — — 40 — — 
Funds From Operations$102,951 152,126 $0.68 $104,731 149,142 $0.70 




















Cousins Properties
34
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS



($ in thousands, except per share amounts)
 Six Months Ended June 30,
 
2023
2022
DollarsWeighted Average Common SharesPer Share AmountDollarsWeighted Average Common SharesPer Share Amount
Net Income Available to Common Stockholders$44,817 151,650$0.30 $62,036 148,788 $0.42 
Noncontrolling interest related to unitholders 7 25— 12 25 — 
Conversion of unvested restricted stock units— 328(0.01)— 277 — 
Net Income — Diluted 44,824 152,0030.29 62,048 149,090 0.42 
Depreciation and amortization of real estate assets:
Consolidated properties155,820 — 1.03 140,292 — 0.94 
Share of unconsolidated joint ventures955 — — 2,235 — 0.01 
Partners' share of real estate depreciation(556)— — (376)— — 
Loss (gain) on depreciated property transactions:
Consolidated properties2 — — 41 — — 
Share of unconsolidated joint ventures— — — (84)— — 
Funds From Operations$201,045 152,003 $1.32 $204,156 149,090 $1.37 

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.







Cousins Properties
35
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS
($ in thousands)($ in thousands)
Three Months EndedSix Months Ended
Net Operating Income
June 30, 2023
June 30, 2022June 30, 2023June 30, 2022
Net income$23,077 $34,164 $45,433 $62,327 
Net operating income from unconsolidated joint ventures1,559 2,542 2,968 5,261 
Fee income(352)(2,305)(726)(3,693)
Termination fee income(6,570)(449)(6,706)(1,911)
Other income(14)(201)(2,292)(2,484)
Reimbursed expenses159 677 366 1,037 
General and administrative expenses8,021 6,996 16,459 15,059 
Interest expense25,972 16,549 51,002 32,074 
Depreciation and amortization80,269 69,861 156,039 140,605 
Other expenses476 425 861 646 
Income from unconsolidated joint ventures(753)(5,280)(1,426)(6,404)
Loss (gain) on investment property transactions— (28)2 41 
Loss on extinguishment of debt— 100 — 100 
Net Operating Income131,844 123,051 261,980 242,658 
Less:
Partners' share of NOI from consolidated joint ventures(437)(308)(898)(760)
Cousins' share of NOI$131,407 $122,743 $261,082 $241,898 
 
Net Operating Income$131,844 $123,051 $261,980 $242,658 
Non-cash income(11,220)(8,753)(24,668)(16,827)
Non-cash expense239 215 463 444 
Cash-Basis Net Operating Income$120,863 $114,513 $237,775 $226,275 
Net Operating Income
Same Property$123,779 $116,464 $244,362 $230,783 
Non-Same Property8,065 6,587 17,618 11,875 
$131,844 $123,051 $261,980 $242,658 
Cash-Basis Net Operating Income
Same Property$113,919 $109,811 $225,551 $216,177 
Non-Same Property6,944 4,702 12,224 10,098 
$120,863 $114,513 $237,775 $226,275 











Cousins Properties
36
Q2 2023 Supplemental Information
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS



RECONCILIATION OF 2023 PROJECTED NET INCOME AVAILABLE
TO COMMON STOCKHOLDERS TO 2023 PROJECTED FFO



Full Year 2023 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$80,797 $0.53 $92,962 $0.61 
Add: Noncontrolling interest related to unitholders16 — 16 — 
Net Income80,813 0.53 92,978 0.61 
Add: Depreciation and amortization of real estate assets309,968 2.04 309,968 2.04 
Funds From Operations$390,781 $2.57 $402,946 $2.65 
(1) Calculated based on projected weighted average shares outstanding of 152.1 million.













Cousins Properties
37
Q2 2023 Supplemental Information
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 project is stabilized when it 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 on the core building development. 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
38
Q2 2023 Supplemental Information
v3.23.2
Cover Page
Jul. 27, 2023
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jul. 27, 2023
Entity Registrant Name Cousins Properties Inc
Entity Central Index Key 0000025232
Amendment Flag false
Entity Incorporation, State or Country Code GA
Entity File Number 001-11312
Entity Tax Identification Number 58-0869052
Entity Address, Address Line One 3344 Peachtree Road NE
Entity Address, Address Line Two Suite 1800
Entity Address, City or Town Atlanta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30326-4802
City Area Code 404
Local Phone Number 407-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $1 par value per share
Trading Symbol CUZ
Security Exchange Name NYSE
Entity Emerging Growth Company false
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