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Section 1: 8-K (8-K)

Document
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): October 25, 2017
Cousins Properties Incorporated
(Exact name of registrant as specified in its charter)

Georgia
(State or other jurisdiction of incorporation)

001-11312
(Commission File Number)

58-0869052
(IRS Employer Identification Number)


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

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

Former Address
(191 Peachtree Street, Suite 500, Atlanta, Georgia 30308-1740)

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):

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

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. o




Item 2.02. Results of Operations and Financial Condition
On October 25, 2017, 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 September 30, 2017. 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.

(c)    Exhibits

Exhibit Number        Exhibit Description

99.1    

        




 





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: October 25, 2017


COUSINS PROPERTIES INCORPORATED

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




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
390774903_q3supplementcover.jpg

1

TABLE OF CONTENTS





Forward-Looking Statements
Earnings Release
4
Condensed Consolidated Statements of Operations
6
Condensed Consolidated Balance Sheets
Funds From Operations - Detail
Portfolio Statistics
Office Leasing Activity
Office Lease Expirations
Top 20 Office Tenants
Tenant Industry Diversification
Investment Activity
Land Inventory
Debt Schedule
Non-GAAP Financial Measures - Calculations and Reconciliations
Non-GAAP Financial Measures - Discussion
390774903_dsc6264a03.jpg

Cousins Properties Incorporated
 
Q2 2017 Supplemental Information

FORWARD-LOOKING STATEMENTS

Certain matters contained in this supplement 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, 2016 and in the Quarterly Report on Form 10-Q for the three and nine month periods ended September 30, 2017. 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, our business and financial strategy; our ability to obtain future financing; future acquisitions and dispositions of operating assets; future acquisitions of land; future development and redevelopment opportunities; future dispositions of land and other non-core assets; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; the impact of the transactions involving the Company, Parkway Properties Inc. ("Parkway"), and Parkway, Inc. ("New Parkway"); future financial and operating results, plans, objectives, expectations, and intentions; all statements that address operating performance, events, or developments that management expects or anticipates will occur in the future — including statements relating to creating value for stockholders; impact of the transactions with Parkway and New Parkway on tenants, employees, stockholders, and other constituents of the combined companies; and integrating Parkway with us.
Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information 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 adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Charlotte, Austin, and Phoenix where we have high concentrations of our annualized lease revenue; changes to our strategy with regard to land and other non-core holdings that may require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, and the ability to lease newly developed and/or recently acquired space, and the risk of declining leasing rates; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and to meet regulatory requirements; risks associated with litigation resulting from the transactions with Parkway and from liabilities or contingent liabilities assumed in the transactions with Parkway; risks associated with any errors or omissions in financial or other information of Parkway that has been previously provided to the public; the ability to successfully integrate our operations and employees in connection with the transactions with Parkway and New Parkway; the ability to realize anticipated benefits and synergies of the transactions with Parkway and New Parkway; potential changes to state, local, or federal regulations applicable to our business; material changes in the dividend rates on securities 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; significant costs related to uninsured losses, condemnation, or environmental issues; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission 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 Incorporated
3
Q3 2017 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS THIRD QUARTER 2017 RESULTS

Highlights
Net income available to common stockholders for the third quarter was $0.03 per share.
Funds From Operations for the third quarter was $0.15 per share.
Same property net operating income on a cash basis increased 2.0% during the third quarter. Legacy Parkway same property net operating income on a cash basis increased 5.9% during the third quarter. Both year-over-year comparisons were reduced by the receipt of significant property tax refunds in 2016.
Second generation net rent per square foot on a cash basis increased 7.3% during the third quarter.
Leased or renewed 334,905 square feet of office space during the third quarter.
Commenced operations at Carolina Square, a $123 million mixed-use project containing 158,000 square feet of office space, 44,000 square feet of retail space and 246 apartments.
Funded the $250 million second tranche of a previously closed $350 million private placement of senior unsecured debt. This tranche has an 8-year maturity and a fixed annual interest rate of 3.91%.
ATLANTA (October 25, 2017) - Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended September 30, 2017.
“Cousins' urban office portfolio continues to generate outstanding cash flow growth driven by healthy business conditions and positive real estate fundamentals across our Sun Belt markets," said Larry Gellerstedt, chairman of the board and chief executive officer of Cousins Properties. "Our strong operating performance to date and solid balance sheet provide a stable foundation to support the execution of our development pipeline, highlighted by the successful delivery of our Carolina Square project this quarter."
Financial Results
Net income available to common stockholders was $12.1 million, or $0.03 per share, for the third quarter of 2017, compared with $11.7 million, or $0.06 per share, for the third quarter of 2016. Net income available to common stockholders was $184.9 million, or $0.45 per share, for the nine months ended September 30, 2017, compared with $42.2 million, or $0.20 per share, for the nine months ended September 30, 2016.
Funds From Operations ("FFO") was $62.3 million, or $0.15 per share, for the third quarter of 2017, compared with $46.4 million, or $0.22 per share, for the third quarter of 2016. FFO was $195.7 million, or $0.46 per share, for the nine months ended September 30, 2017, compared with $133.2 million, or $0.63 per share, for the nine months ended September 30, 2016.
2017 FFO Guidance
Based on third quarter 2017 results, the Company has raised and narrowed its full year 2017 net income guidance from $0.43 to $0.48 per share to $0.46 to $0.48 per share. The Company has also raised and narrowed its full year 2017 FFO guidance from $0.58 to $0.63 per share to $0.60 to $0.62 per share.

Cousins Properties Incorporated
4
Q3 2017 Supplemental Information

EARNINGS RELEASE

The Company leaves unchanged previously provided components of its full year 2017 net income and FFO guidance, except for the following updates:
Fee and other income of $19 million to $21 million, up from the previous range of $18.5 million to $20.5 million, primarily due to an increase in termination fees.
General and administrative costs of $27 million to $29 million, up from the previous range of $26 million to $28 million, primarily due to an increase in long-term incentive compensation expense driven by improved total stockholder return relative to the SNL US REIT Office index.
Interest and other expenses of $40 million to $42 million, down from the previous range of $45 million to $47 million, primarily due to transaction timing and interest rate variances.
A reconciliation of projected net income per share to projected FFO per share is provided as follows:
 
Full Year 2017 Range
 
Low
 
High
Net income per share
$
0.46

 
$
0.48

Add: Real estate depreciation and amortization
0.50

 
0.50

Less: Gain on sale of real estate assets
(0.36
)
 
(0.36
)
Funds From Operations per share
$
0.60

 
$
0.62

This guidance is provided for information purposes based on current plans and assumptions and is subject to change.
Investor Conference Call and Webcast
The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Thursday, October 26, 2017, to discuss the results of the quarter ended September 30, 2017. The number to call for this interactive teleconference is (877) 247-1056.
A replay of the conference call will be available for 7 days by dialing (877) 344-7529 and entering the passcode 10112941. The replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Cousins Properties Incorporated Third Quarter 2017 Conference Call” link on the Investor Relations page.
Acting through its operating partnership Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.


Cousins Properties Incorporated
5
Q3 2017 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Rental property revenues
$
109,569

 
$
46,575

 
$
336,093

 
$
138,382

Fee income
2,597

 
1,945

 
6,387

 
5,968

Other
993

 
153

 
9,593

 
570

 
113,159

 
48,673

 
352,073

 
144,920

Expenses:
 

 
 

 
 

 
 

Rental property operating expenses
40,688

 
18,122

 
123,715

 
55,451

Reimbursed expenses
895

 
795

 
2,667

 
2,463

General and administrative expenses
7,193

 
4,368

 
21,993

 
17,301

Interest expense
7,587

 
5,754

 
25,851

 
16,562

Depreciation and amortization
47,622

 
16,622

 
152,546

 
49,804

Acquisition and transaction costs
(677
)
 
1,446

 
1,499

 
3,889

Other
423

 
173

 
1,063

 
681

 
103,731

 
47,280

 
329,334

 
146,151

Gain on extinguishment of debt
429

 

 
2,258

 

Income (loss) from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties
9,857

 
1,393

 
24,997

 
(1,231
)
Income from unconsolidated joint ventures
2,461

 
1,527

 
43,362

 
5,144

Income from continuing operations before gain (loss) on sale of investment properties
12,318

 
2,920

 
68,359

 
3,913

Gain (loss) on sale of investment properties
(33
)
 

 
119,729

 
13,944

Income from continuing operations
12,285

 
2,920

 
188,088

 
17,857

Income from discontinued operations

 
8,737

 

 
24,361

Net income
12,285

 
11,657

 
188,088

 
42,218

Net income attributable to noncontrolling interests
(218
)
 

 
(3,181
)
 

Net income available to common stockholders
$
12,067

 
$
11,657

 
$
184,907

 
$
42,218

Per common share information — basic and diluted:
 
 
 
 
 
 
 
Income from continuing operations for common stockholders
$
0.03

 
$
0.01

 
$
0.45

 
$
0.08

Income from discontinued operations for common stockholders

 
0.05

 

 
0.12

Net income available to common stockholders
$
0.03

 
$
0.06

 
$
0.45

 
$
0.20

Weighted average shares — basic
419,998

 
210,170

 
414,123

 
210,400

Weighted average shares — diluted
427,300

 
210,326

 
421,954

 
210,528


Cousins Properties Incorporated
6
Q3 2017 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
September 30, 2017
 
December 31, 2016
 
(unaudited)
 
 
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $253,362 and $215,856 in 2017 and 2016, respectively
$
3,490,181

 
$
3,432,522

Projects under development
248,242

 
162,387

Land
4,221

 
4,221

 
3,742,644

 
3,599,130

 
 
 
 
Cash and cash equivalents
62,167

 
35,687

Restricted cash
437

 
15,634

Notes and accounts receivable, net of allowance for doubtful accounts of $626 and $1,167 in 2017 and 2016, respectively
16,291

 
27,683

Deferred rents receivable
53,483

 
39,464

Investment in unconsolidated joint ventures
109,222

 
179,397

Intangible assets, net of accumulated amortization of $99,063 and $53,483 in 2017 and 2016, respectively
211,786

 
245,529

Other assets
28,170

 
29,083

Total assets
$
4,224,200

 
$
4,171,607

Liabilities:
 
 
 
Notes payable
$
1,095,177

 
$
1,380,920

Accounts payable and accrued expenses
160,101

 
109,278

Deferred income
35,918

 
33,304

Intangible liabilities, net of accumulated amortization of $25,709 and $12,227 in 2017 and 2016, respectively
76,299

 
89,781

Other liabilities
39,385

 
44,084

Total liabilities
1,406,880

 
1,657,367

Commitments and contingencies
 
 
 
Equity:
 
 
 
Stockholders' investment:
 
 
 
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2017 and 2016
6,867

 
6,867

Common stock, $1 par value, 700,000,000 shares authorized, 430,349,620 and 403,746,938 shares issued in 2017 and 2016, respectively
430,350

 
403,747

Additional paid-in capital
3,604,269

 
3,407,430

Treasury stock at cost, 10,329,082 shares in 2017 and 2016
(148,373
)
 
(148,373
)
Distributions in excess of cumulative net income
(1,127,813
)
 
(1,214,114
)
Total stockholders' investment
2,765,300

 
2,455,557

Nonredeemable noncontrolling interests
52,020

 
58,683

Total equity
2,817,320

 
2,514,240

Total liabilities and equity
$
4,224,200

 
$
4,171,607



Cousins Properties Incorporated
7
Q3 2017 Supplemental Information

KEY PERFORMANCE METRICS

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
Property Statistics
 
 
 
 
 
 
 
 
 
 
Consolidated Operating Properties
12

11

11

11

25

25

26

26

26

26

Consolidated Rentable Square Feet (in thousands)
12,122

11,993

11,993

11,993

13,024

13,024

13,249

12,477

12,466

12,466

Unconsolidated Operating Properties
6

6

6

6

8

8

7

5

6

6

Unconsolidated Rentable Square Feet (in thousands)
3,434

3,435

3,435

3,435

3,999

3,999

3,774

2,988

3,456

3,456

Total Operating Properties
18

17

17

17

33

33

33

31

32

32

Total Rentable Square Feet (in thousands)
15,556

15,428

15,428

15,428

17,023

17,023

17,023

15,465

15,922

15,922

 
 
 
 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
 
 
 
Net Leased during the period (square feet in thousands)
2,972

220

402

971

761
2,354

571

341

335

1,247

Net Rent (per square foot)
$18.30
$23.55
$22.73
$23.51
$26.32
$24.52
$26.10
$28.58
$26.57
$26.91
Tenant improvements, leasing commissions, and free rent
    (per square foot)
(3.64)

(6.31)

(7.08)

(6.18)

(6.08)

(6.35)

(7.44)

(7.42)

(5.84)

(7.01)

Net Effective Rent (per square foot)
$14.66
$17.24
$15.65
$17.33
$20.24
$18.17
$18.66
$21.16
$20.73
$19.90
Change in Second Generation Net Rent
36.7
%
18.9
%
17.2
%
27.9
%
18.7
%
20.0
%
15.8
%
28.5
%
16.9
%
19.5
%
Change in Cash-Basis Second Generation Net Rent
19.8
%
1.8%

4.3
%
9.1
%
14.7
%
10.3
%
3.3
%
13.5
%
7.3
%
7.4
%
 
 
 
 
 
 
 
 
 
 
 
Same Property Information (2)
 
 
 
 
 
 
 
 
 
 
Percent Leased (period end)
91.6
%
90.3
%
90.7
%
91.2
%
91.8
%
91.8
%
92.1
%
93.9
%
92.9
%
92.9
%
Weighted Average Occupancy
90.7
%
89.4
%
89.2
%
89.5
%
89.4
%
89.4
%
89.9
%
90.7
%
89.1
%
89.1
%
Change in Net Operating Income (over prior year period)
3.3
%
4.3
%
1.4
%
3.6
%
4.4
%
6.1
%
5.5
%
6.8
%
1.3
%
4.7
%
Change in Cash-Basis Net Operating Income (over prior year period)
7.3
%
8.6
%
3.9
%
4.3
%
7.1
%
8.4
%
5.4
%
8.6
%
2.0
%
5.7
%
 
 
 
 
 
 
 
 
 
 
 
Development Pipeline
 
 
 
 
 
 
 
 
 
 
Estimated Project Costs (in thousands) (3)
$261,500
$326,300
$340,200
$506,200
$512,200
$512,200
$529,200
$463,500
$402,000
$402,000
Estimated Project Costs (3) / Total Undepreciated Assets
7.6
%
9.5
%
9.6
%
13.7
%
10.5
%
10.5
%
10.6
%
9.6
%
8.1
%
8.1
%
 
 
 
 
 
 
 
 
 
 
 
Market Capitalization (4)
 
 
 
 
 
 
 
 
 
 
Common Stock Price (period end)
$9.43
$10.38
$10.40
$10.44
$8.51
$8.51
$8.27
$8.79
$9.34
$9.34
Common Shares/Units Outstanding (period end in thousands)
211,513

210,107

210,171

210,170

401,596

401,596

426,823

426,942

426,995

426,995

Equity Market Capitalization (in thousands)
$1,994,568
$2,180,911
$2,185,778
$2,194,175
$3,417,582
$3,417,582
$3,529,826
$3,752,820
$3,988,133
$3,988,133
Debt (in thousands)
947,017

992,241

999,999

1,112,322

1,632,270

1,632,270

1,498,044

1,205,632

1,286,252

1,286,252

Total Market Capitalization (in thousands)
$2,941,585
$3,173,152
$3,185,777
$3,306,497
$5,049,852
$5,049,852
$5,027,870
$4,958,452
$5,274,385
$5,274,385
 
 
 
 
 
 
 
 
 
 
 
Credit Ratios (4)
 
 
 
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
32.1
%
31.1
%
31.4
%
30.7
%
31.6
%
31.6
%
29.1
%
24.0
%
23.2
%
23.2
%
Net Debt/Total Undepreciated Assets
27.5
%
28.8
%
28.3
%
30.1
%
33.5
%
33.5
%
30.1
%
25.1
%
24.7
%
24.7
%
Net Debt/Annualized EBITDA
3.99

4.63

4.51

4.34

5.22

5.22

4.49

3.93

4.31

4.31

Fixed Charges Coverage
4.84

4.49

4.43

4.46

5.04

4.63

5.13

5.49

5.82

5.45

 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
8
Q3 2017 Supplemental Information

KEY PERFORMANCE METRICS

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
Dividend Information (4)
 
 
 
 
 
 
 
 
 
 
Common Dividend per Share (5)
$0.32
$0.08
$0.08
$0.08
$0.06
$0.30
$0.06
$0.06
$0.06
$0.18
FFO Payout Ratio
35.9
%
38.9
%
38.8
%
36.2
%
85.9
%
46.1
%
37.5
%
38.0
%
40.4
%
38.6
%
FAD Payout Ratio
61.4
%
55.9
%
61.7
%
58.3
%
61.1
%
59.3
%
58.2
%
54.4
%
69.9
%
60.2
%
 
 
 
 
 
 
 
 
 
 
 
Operations Ratios (4)
 
 
 
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.49
%
0.96
%
0.53
%
0.47
%
0.68
%
0.53
%
0.50
%
0.72
%
0.58
%
0.59
%
 
 
 
 
 
 
 
 
 
 
 
Additional Information (4)
 
 
 
 
 
 
 
 
 
 
Straight Line Rental Revenue
$20,009
$3,595
$3,434
$3,449
$8,489
$18,967
$9,608
$7,826
$6,825
$24,259
Above and Below Market Rents Amortization
$7,981
$1,834
$1,854
$1,907
$1,502
$7,097
$1,602
$1,929
$1,852
$5,383
Second Generation Capital Expenditures
$54,214
$7,904
$13,166
$13,968
$11,838
$46,876
$10,971
$7,569
$15,949
$34,489
 
 
 
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 19 for additional detail and explanations.
(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 17 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 35 for additional information.
(3) Cousins' share of estimated project costs.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.
(5) The fourth quarter 2016 dividend was declared and paid a quarter in arrears.


Cousins Properties Incorporated
9
Q3 2017 Supplemental Information

KEY PERFORMANCE METRICS


                                 
390774903_a8-kearningsre_chartx42279.jpg390774903_a8-kearningsre_chartx43729.jpg 390774903_a8-kearningsre_chartx45141.jpg
390774903_a8-kearningsre_chartx46268.jpg 390774903_a8-kearningsre_chartx47609.jpg 390774903_a8-kearningsre_chartx48702.jpg

          

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

Cousins Properties Incorporated
10
Q3 2017 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
$
241,232

$
59,513

$
59,008

$
61,621

$
80,139

$
260,281

$
80,167

$
80,115

$
75,815

$
236,097

Land Sales Less Cost of Sales
3,905




3,770

3,770


63

4

67

Fee Income
7,297

2,199

1,824

1,945

2,379

8,347

1,936

1,854

2,597

6,387

Other Income
2,451

1,121

280

287

3,837

5,525

6,889

5,304

1,634

13,827

Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(2,667
)
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(21,993
)
Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(31,873
)
Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(40,704
)
(45,984
)
(2,391
)
(542
)
196

(2,737
)
Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(1,377
)
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$
62,334

$
195,731

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

421,954

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.46




(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.

Cousins Properties Incorporated
11
Q3 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
 
 
 
Hearst Tower
$

$

$

$

$
5,957

$
5,957

$
6,356

$
6,370

$
6,302

$
19,028

Hayden Ferry (2)




3,881

3,881

5,209

5,307

5,466

15,982

Northpark (2)
22,400

5,607

5,097

5,599

5,841

22,144

5,410

5,130

4,945

15,485

Corporate Center (2)




5,005

5,005

4,761

5,374

5,308

15,443

Fifth Third Center
14,956

4,238

4,349

4,451

4,463

17,501

4,842

4,681

4,772

14,295

Promenade
13,985

3,740

3,419

3,839

3,557

14,555

4,173

4,407

4,184

12,764

San Jacinto Center




3,456

3,456

4,038

4,207

3,918

12,163

One Eleven Congress




3,256

3,256

3,713

3,735

4,172

11,620

Colorado Tower
6,768

2,724

3,064

3,221

3,399

12,408

3,383

3,352

3,344

10,079

One Buckhead Plaza




2,817

2,817

3,097

2,806

3,071

8,974

3344 Peachtree




3,505

3,505

3,235

2,884

2,705

8,824

816 Congress Avenue
8,526

2,468

2,555

2,514

2,363

9,900

2,694

2,641

2,766

8,101

NASCAR Plaza




2,507

2,507

2,477

2,394

2,609

7,480

3350 Peachtree




2,006

2,006

2,264

2,288

2,153

6,705

Tempe Gateway




1,966

1,966

2,008

2,136

1,964

6,108

3348 Peachtree




1,541

1,541

1,491

1,491

1,657

4,639

Bank of America Center




1,451

1,451

1,507

1,324

1,255

4,086

Two Buckhead Plaza




1,369

1,369

1,321

1,337

1,318

3,976

The Pointe




1,227

1,227

1,146

1,146

1,069

3,361

One Orlando Centre




795

795

1,277

968

973

3,218

Citrus Center




1,019

1,019

1,006

1,025

1,128

3,159

Meridian Mark Plaza
3,777

908

857

954

955

3,674

989

997

979

2,965

Harborview Plaza




898

898

930

931

1,035

2,896

111 West Rio







1,396

1,236

2,632

Research Park V


144

288

412

844

359

916

874

2,149

8000 Avalon








80

80

Other (3)
43,287

7,864

7,443

7,587

6,328

29,222

3,305

3,263

(402
)
6,166

Subtotal - Consolidated
113,699

27,549

26,928

28,453

69,974

152,904

70,991

72,506

68,881

212,378

 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Properties (4)
 
 
 
 
 
 
 
 
 
 
Terminus 100
7,268

1,872

1,978

1,899

1,837

7,586

1,912

1,906

1,829

5,647

Terminus 200
6,069

1,658

1,770

1,678

1,648

6,754

1,798

1,749

1,769

5,316

Gateway Village (2)(5)
1,208

536

451

460

1,003

2,450

1,751

1,756

1,805

5,312

Emory University Hospital Midtown Medical Office Tower
3,974

987

1,000

975

1,008

3,970

989

948

961

2,898

Courvoisier Centre (2)




410

410

462

387

525

1,374

Carolina Square








47

47

Other (3)
5,816

1,593

1,755

1,748

2,520

7,616

2,264

863

(2
)
3,125

Subtotal - Unconsolidated
24,335

6,646

6,954

6,760

8,426

28,786

9,176

7,609

6,934

23,719

 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
103,198

25,318

25,126

26,408

1,739

78,591





 
 
 
 
 
 
 
 
 
 
 
Total Net Operating Income (1)
241,232

59,513

59,008

61,621

80,139

260,281

80,167

80,115

75,815

236,097

 
 
 
 
 
 
 
 
 
 
 
Sales Less Cost of Sales
 
 
 
 
 
 
 
 
 
 
Land Sales Less Cost of Sales - Consolidated
1,625




3,580

3,580


63

4

67

Land Sales Less Cost of Sales - Unconsolidated (4)
2,280




190

190





Total Sales Less Cost of Sales
3,905




3,770

3,770


63

4

67


Cousins Properties Incorporated
12
Q3 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
 
 
 
Management Fees (7)
5,188

1,325

1,263

1,253

1,317

5,158

1,402

1,492

1,458

4,352

Development Fees
1,778

608

486

549

634

2,277

432

318

1,062

1,812

Leasing & Other Fees
331

266

75

143

428

912

102

44

77

223

Total Fee Income
7,297

2,199

1,824

1,945

2,379

8,347

1,936

1,854

2,597

6,387

 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
Termination Fees
398




122

122

5,238

2,913

734

8,885

Gain on Extinguishment of Debt







1,829

429

2,258

Interest and Other Income
460

390

27

153

358

928

188

262

258

708

Termination Fees - Unconsolidated (4)
419




3,000

3,000

959

195

132

1,286

Loss on Extinguishment of Debt - Unconsolidated (4)




(5,180
)
(5,180
)




Interest and Other Income - Unconsolidated (4)
747

546

151

134

357

1,188

504

105

81

690

Termination Fees - Discontinued Operations (6)
450

186

102



288





Interest and Other Income - Discontinued Operations (6)
(23
)
(1
)



(1
)




Total Other Income
2,451

1,121

280

287

(1,343
)
345

6,889

5,304

1,634

13,827

 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
9,748

3,320

2,104

2,232

1,036

8,692

8,825

7,158

4,231

20,214

 
 
 
 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(2,667
)
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(21,993
)
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 


 
 
 
 
 
 
Term Loan, Unsecured




(386
)
(386
)
(1,288
)
(1,564
)
(1,655
)
(4,507
)
Fifth Third Center



(427
)
(1,275
)
(1,702
)
(1,272
)
(1,266
)
(1,260
)
(3,798
)
Promenade
(4,734
)
(1,165
)
(1,157
)
(1,150
)
(1,142
)
(4,614
)
(1,134
)
(1,127
)
(1,119
)
(3,380
)
Colorado Tower



(353
)
(1,059
)
(1,412
)
(1,059
)
(1,059
)
(1,059
)
(3,177
)
Credit Facility, Unsecured
(4,089
)
(832
)
(1,053
)
(870
)
(1,159
)
(3,914
)
(1,035
)
(1,153
)
(444
)
(2,632
)
816 Congress Avenue
(3,269
)
(817
)
(817
)
(817
)
(817
)
(3,268
)
(814
)
(810
)
(806
)
(2,430
)
Senior Notes, Unsecured ($250M)








(2,353
)
(2,353
)
Senior Notes, Unsecured ($100M)







(876
)
(1,025
)
(1,901
)
Meridian Mark Plaza
(1,538
)
(381
)
(379
)
(377
)
(375
)
(1,512
)
(373
)
(372
)
(370
)
(1,115
)
The Pointe




(171
)
(171
)
(176
)
(178
)
(177
)
(531
)
Other (3)
(12,684
)
(2,987
)
(2,979
)
(2,990
)
(5,413
)
(14,369
)
(4,180
)
(2,336
)
(20
)
(6,536
)
Capitalized
3,577

742

1,016

1,230

1,709

4,697

1,590

2,218

2,701

6,509

Subtotal - Consolidated
(22,737
)
(5,440
)
(5,369
)
(5,754
)
(10,088
)
(26,651
)
(9,741
)
(8,523
)
(7,587
)
(25,851
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
13
Q3 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 YTD
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 


 
 
 
 
 
 
Terminus 100
(3,436
)
(848
)
(844
)
(840
)
(836
)
(3,368
)
(831
)
(827
)
(824
)
(2,482
)
Terminus 200
(1,560
)
(390
)
(389
)
(387
)
(385
)
(1,551
)
(383
)
(382
)
(380
)
(1,145
)
Emory University Hospital Midtown Medical Office Tower
(1,333
)
(330
)
(329
)
(327
)
(325
)
(1,311
)
(324
)
(322
)
(320
)
(966
)
Courvoisier Centre




(239
)
(239
)
(252
)
(172
)
(225
)
(649
)
Carolina Square








(27
)
(27
)
Other (3)
(1,126
)
(439
)
(464
)
(484
)
(567
)
(1,954
)
(535
)
(218
)

(753
)
Subtotal - Unconsolidated
(7,455
)
(2,007
)
(2,026
)
(2,038
)
(2,352
)
(8,423
)
(2,325
)
(1,921
)
(1,776
)
(6,022
)
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
(7,986
)
(1,974
)
(1,965
)
(1,956
)
(126
)
(6,021
)




 
 
 
 
 
 
 
 
 
 
 
Total Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(31,873
)
 
 
 
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
 
 
 
Transaction Costs - Merger

(19
)
(2,424
)
(1,446
)
(20,633
)
(24,522
)
(1,930
)
(246
)
677

(1,499
)
Property Taxes and Other Holding Costs
(828
)
(89
)
(98
)
(95
)
(158
)
(440
)
(304
)
(140
)
(139
)
(583
)
Predevelopment & Other
(522
)
(108
)
(118
)
(140
)
(577
)
(943
)
(129
)
(156
)
(265
)
(550
)
Severance
(181
)
(249
)



(249
)
(28
)

(73
)
(101
)
Partners' share of FFO in consolidated joint ventures
(111
)



(3,775
)
(3,775
)


(4
)
(4
)
Transaction Costs - Spin-off



(494
)
(5,855
)
(6,349
)




Impairment Loss




(4,526
)
(4,526
)




Acquisition Costs
(299
)









Total Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(35,524
)
(40,804
)
(2,391
)
(542
)
196

(2,737
)
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
 
 
 
 
 
 
 
 
 
 
Consolidated
(1,621
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(1,377
)
Unconsolidated (4)
(48
)









Total Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(1,377
)
 
 
 
 
 
 
 
 
 
 
 
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$
62,334

$
195,731

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

421,954

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.46

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) Represents properties sold and loans repaid prior to September 30, 2017 that are not considered discontinued operations.
(4) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but
      believes including these amounts in the categories indicated is meaningful to investors and analysts.
(5) Through December 1, 2016, the Company received an 11.46% current return on its $11.1 million investment in Gateway Village and, when certain other revenue criteria were met, received additional returns. The Company recognized these amounts as
      NOI from this venture. After December 1, 2016, net income and cash flows were allocated 50% to each joint venture member.
(6) Primarily represents Greenway Plaza and Post Oak Central.
(7) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.

Cousins Properties Incorporated
14
Q3 2017 Supplemental Information

PORTFOLIO STATISTICS


Office Properties

Rentable Square Feet

Financial Statement Presentation

Company's Ownership Interest

End of Period Leased 3Q17
 
End of Period Leased 2Q17

Weighted Average Occupancy 3Q17
 
Weighted Average Occupancy 2Q17

% of Total
Net Operating
Income (1)
 
Property Level Debt ($000) (2)

Northpark (3)
 
1,528,000

 
Consolidated
 
100%
 
88.1%
 
91.5%
 
78.7%
 
83.7%
 
6.5%
 
$


Promenade
 
777,000

 
Consolidated
 
100%
 
94.1%
 
94.0%
 
94.2%
 
93.9%
 
5.5%
 
102,814

 
One Buckhead Plaza
 
461,000

 
Consolidated
 
100%
 
89.5%
 
90.1%
 
90.4%
 
92.8%
 
4.0%
 

 
3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
91.7%
 
90.6%
 
89.8%
 
83.6%
 
3.6%
 

 
3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
93.2%
 
92.9%
 
93.1%
 
92.9%
 
2.8%
 


Terminus 100
 
660,000

 
Unconsolidated
 
50%
 
89.9%
 
89.9%
 
89.9%
 
88.8%
 
2.4%
 
62,262


Terminus 200
 
566,000

 
Unconsolidated
 
50%
 
98.2%
 
96.7%
 
94.0%
 
95.8%
 
2.3%
 
39,837

 
3348 Peachtree
 
258,000

 
Consolidated
 
100%