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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): February 7, 2018
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 February 7, 2018, 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 December 31, 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


        




 





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: February 7, 2018


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
392095481_q4supplementcoverv1.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
392095481_coloradotowerlow.jpg

Cousins Properties Incorporated
 
Q4 2017 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, 2017 and as itemized herein. 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; 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; future issuances and repurchases of common stock; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; the impact of the transactions involving us, Parkway Properties, Inc. ("Parkway") and Parkway, Inc. ("New Parkway"), including future financial and operating results, plans, objectives, expectations and intentions; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.
Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information 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 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; 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 lease revenue; changes to our strategy with regard to land and other non-core holdings that require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, 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; 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); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements; 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; 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; 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
Q4 2017 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017

Highlights
Net income available to common stockholders for the fourth quarter was $0.07 per share.
Funds From Operations for the fourth quarter was $0.15 per share.
Same property net operating income on a cash basis increased 4.2% during the fourth quarter.
Legacy Parkway same property net operating income on a cash basis increased 5.7% during the fourth quarter.
Second generation net rent per square foot on a cash basis increased 6.3% during the fourth quarter.
Executed 943,022 square feet of office leases during the fourth quarter.
Sold the three-property downtown Orlando portfolio for $208.1 million.
Sold the Company's 20% interest in Courvoisier Centre in Miami in a transaction that valued the Company's interest at $33.9 million.
Subsequent to quarter end, the Company:
Completed the development of 864 Spring Street, Phase One of NCR's world headquarters in midtown Atlanta.
Closed a new $1 billion unsecured revolving credit facility that replaced the existing $500 million facility.
Announced 300 Colorado, a 100% leased, 309,000 square foot office tower development in downtown Austin.
ATLANTA (February 7, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2017.
“It was a solid quarter highlighted by several sizable transactions that we believe will generate significant value for our shareholders.” said Larry Gellerstedt, Chairman and Chief Executive Officer of Cousins Properties. “Looking forward, we are excited about the prospects in 2018 and beyond. We have built a unique and compelling company with an outstanding balance sheet that is in a strong position to take advantage of opportunities as they arise.”
Financial Results
Net income available to common stockholders was $31.4 million, or $0.07 per share, for the fourth quarter of 2017, compared with $36.9 million, or $0.10 per share, for the fourth quarter of 2016. Net income available to common stockholders was $216.3 million, or $0.52 per share, for the year ended December 31, 2017, compared with $79.1 million, or $0.31 per share, for the year ended December 31, 2016.
Funds From Operations ("FFO") was $64.2 million, or $0.15 per share, for the fourth quarter of 2017, compared with $27.4 million, or $0.07 per share, for the fourth quarter of 2016. FFO was $259.9 million, or $0.61 per share, for the year ended December 31, 2017, compared with $160.6 million, or $0.63 per share, for the year ended December 31, 2016.


Cousins Properties Incorporated
4
Q4 2017 Supplemental Information

EARNINGS RELEASE


2018 FFO Guidance
For the year ending December 31, 2018, the Company expects to report net income in the range of $0.15 to $0.19 per share and FFO in the range of $0.59 to $0.63 per share. This guidance reflects management's view of current and future market conditions, as well as the earnings impact of events referenced in this release and corresponding conference call.
2018 FFO guidance includes the following assumptions:
Same property net operating income growth of 2.0% to 4.0% on a GAAP basis.
Same property net operating income growth of 3.5% to 5.5% on a cash basis.
Fee and other income of $10 million to $12 million. Guidance does not include potential termination fees.
General and administrative expenses of $24 million to $26 million, net of capitalized salaries.
Interest and other expenses of $46 million to $48 million, net of capitalized interest.
No property acquisition or disposition activity.
No new development projects except those disclosed herein.
GAAP straight-lined rental revenue of $26.5 million to $28.5 million.
Above and below market rental revenue of $6.5 million to $8.5 million.
A reconciliation of projected net income per share to projected FFO per share is provided as follows:
 
Full Year 2018 Range
 
Low
 
High
Net income per share
$
0.15

 
$
0.19

Add: Real estate depreciation and amortization
0.44

 
0.44

Funds From Operations per share
$
0.59

 
$
0.63

The Company's 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 11:00 a.m. (Eastern Time) on Thursday, February 8, 2018, to discuss the results of the quarter and year ended December 31, 2017. The number to call for this interactive teleconference is (877) 247-1056.
A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10115599. The live webcast and replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Cousins Properties Fourth 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
Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended December 31,
 
Year Ended December 31,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Rental property revenues
$
109,942

 
$
111,432

 
$
446,035

 
$
249,814

Fee income
2,245

 
2,379

 
8,632

 
8,347

Other
1,925

 
481

 
11,518

 
1,050

 
114,112

 
114,292

 
466,185

 
259,211

Expenses:
 

 
 

 
 

 
 

Rental property operating expenses
40,167

 
41,456

 
163,882

 
96,908

Reimbursed expenses
860

 
796

 
3,527

 
3,259

General and administrative expenses
5,530

 
8,290

 
27,523

 
25,592

Interest expense
7,673

 
10,089

 
33,524

 
26,650

Depreciation and amortization
44,199

 
48,145

 
196,745

 
97,948

Acquisition and transaction costs
162

 
20,633

 
1,661

 
24,521

Other
733

 
5,205

 
1,796

 
5,888

 
99,324

 
134,614

 
428,658

 
280,766

Gain (loss) on extinguishment of debt

 
(5,180
)
 
2,258

 
(5,180
)
Income (loss) from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties
14,788

 
(25,502
)
 
39,785

 
(26,735
)
Income from unconsolidated joint ventures
3,753

 
5,418

 
47,115

 
10,562

Income (loss) from continuing operations before gain on sale of investment properties
18,541

 
(20,084
)
 
86,900

 
(16,173
)
Gain on sale of investment properties
13,330

 
63,169

 
133,059

 
77,114

Income from continuing operations
31,871

 
43,085

 
219,959

 
60,941

Income (loss) from discontinued operations

 
(5,198
)
 

 
19,163

Net income
31,871

 
37,887

 
219,959

 
80,104

Net income attributable to noncontrolling interests
(503
)
 
(995
)
 
(3,684
)
 
(995
)
Net income available to common stockholders
$
31,368

 
$
36,892

 
$
216,275

 
$
79,109

Per common share information — basic and diluted:
 
 
 
 
 
 
 
Income from continuing operations for common stockholders
$
0.07

 
$
0.11

 
$
0.52

 
$
0.24

Income from discontinued operations for common stockholders

 
(0.01
)
 

 
0.07

Net income available to common stockholders
$
0.07

 
$
0.10

 
$
0.52

 
$
0.31

Weighted average shares — basic
420,021

 
383,654

 
415,610

 
253,895

Weighted average shares — diluted
427,288

 
391,413

 
423,297

 
256,023


Cousins Properties Incorporated
6
Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
December 31, 2017
 
December 31, 2016
 
(unaudited)
 
 
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $275,977 and $215,856 in 2017 and 2016, respectively
$
3,332,619

 
$
3,432,522

Projects under development
280,982

 
162,387

Land
4,221

 
4,221

 
3,617,822

 
3,599,130

 
 
 
 
Cash and cash equivalents
148,929

 
35,687

Restricted cash
56,816

 
15,634

Notes and accounts receivable, net of allowance for doubtful accounts of $535 and $1,167 in 2017 and 2016, respectively
14,420

 
27,683

Deferred rents receivable
58,158

 
39,464

Investment in unconsolidated joint ventures
101,414

 
179,397

Intangible assets, net of accumulated amortization of $104,931 and $53,483 in 2017 and 2016, respectively
186,206

 
245,529

Other assets
20,854

 
29,083

Total assets
$
4,204,619

 
$
4,171,607

Liabilities:
 
 
 
Notes payable
$
1,093,228

 
$
1,380,920

Accounts payable and accrued expenses
137,909

 
109,278

Deferred income
37,383

 
33,304

Intangible liabilities, net of accumulated amortization of $28,960 and $12,227 in 2017 and 2016, respectively
70,454

 
89,781

Other liabilities
40,534

 
44,084

Total liabilities
1,379,508

 
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
3,604,776

 
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
(1,121,647
)
 
(1,214,114
)
Total stockholders' investment
2,771,973

 
2,455,557

Nonredeemable noncontrolling interests
53,138

 
58,683

Total equity
2,825,111

 
2,514,240

Total liabilities and equity
$
4,204,619

 
$
4,171,607



Cousins Properties Incorporated
7
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

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

11

11

11

25

25

26

26

26

23

23

Consolidated Rentable Square Feet (in thousands)
12,122

11,993

11,993

11,993

13,024

13,024

13,249

12,477

12,466

11,428

11,428

Unconsolidated Operating Properties
6

6

6

6

8

8

7

5

6

5

5

Unconsolidated Rentable Square Feet (in thousands)
3,434

3,435

3,435

3,435

3,999

3,999

3,774

2,988

3,456

3,113

3,113

Total Operating Properties
18

17

17

17

33

33

33

31

32

28

28

Total Rentable Square Feet (in thousands)
15,556

15,428

15,428

15,428

17,023

17,023

17,023

15,465

15,922

14,541

14,541

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

220

402

971

761
2,354

571

341

335

943

2,190

Net Rent (per square foot)
$18.30
$23.55
$22.73
$23.51
$26.32
$24.52
$26.10
$28.58
$26.57
$32.73
$29.41
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)

(6.48)

(6.77)

Net Effective Rent (per square foot)
$14.66
$17.24
$15.65
$17.33
$20.24
$18.17
$18.66
$21.16
$20.73
$26.25
$22.64
Change in Second Generation Net Rent
36.7
%
18.9
%
17.2
%
27.9
%
18.7
%
20.0
%
15.8
%
28.5
%
16.9
%
19.7
%
19.6
%
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
%
6.3
%
6.9
%
 
 
 
 
 
 
 
 
 
 
 
 
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
%
92.6
%
92.6
%
Weighted Average Occupancy
90.7
%
89.4
%
89.2
%
89.5
%
89.4
%
89.4
%
89.9
%
90.7
%
89.1
%
87.7
%
89.4
%
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
%
3.6
%
4.4
%
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
%
4.2
%
5.3
%
 
 
 
 
 
 
 
 
 
 
 
 
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
$490,500
$490,500
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
%
9.9
%
9.9
%
 
 
 
 
 
 
 
 
 
 
 
 
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
$9.25
$9.25
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

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
$3,949,704
$3,949,704
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

1,262,523

1,262,523

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
$5,212,227
$5,212,227
 
 
 
 
 
 
 
 
 
 
 
 
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
%
21.4
%
21.4
%
Net Debt/Total Undepreciated Assets
27.4
%
28.6
%
28.3
%
27.5
%
32.8
%
32.8
%
29.4
%
24.7
%
24.7
%
22.5
%
22.5
%
Net Debt/Annualized EBITDA
3.99

4.63

4.51

4.34

5.22

5.22

4.49

3.93

4.31

3.75

3.75

Fixed Charges Coverage
4.84

4.49

4.43

4.46

5.04

4.63

5.13

5.49

5.82

6.01

5.58

 
 
 
 
 
 
 
 
 
 
 
 

Cousins Properties Incorporated
8
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

 
2015
2016 1st
2016 2nd
2016 3rd
2016 4th
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
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
$0.06
$0.24
FFO Payout Ratio
35.9
%
38.9
%
38.8
%
36.2
%
85.9
%
46.1
%
37.5
%
38.0
%
40.4
%
39.3
%
38.8
%
FAD Payout Ratio
61.4
%
55.9
%
61.7
%
58.3
%
61.1
%
59.3
%
58.2
%
54.4
%
69.9
%
69.5
%
62.2
%
 
 
 
 
 
 
 
 
 
 
 
 
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
%
0.45
%
0.56
%
 
 
 
 
 
 
 
 
 
 
 
 
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
$6,714
$30,973
Above and Below Market Rents Amortization
$7,981
$1,834
$1,854
$1,907
$1,502
$7,097
$1,602
$1,929
$1,852
$1,838
$7,221
Second Generation Capital Expenditures
$54,214
$7,904
$13,166
$13,968
$11,838
$46,876
$10,971
$7,569
$15,949
$18,996
$53,485
 
 
 
 
 
 
 
 
 
 
 
 

 
(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) Represents Cousins' share of estimated project costs. See Development Pipeline on page 26 for additional detail.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.
(5) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.


Cousins Properties Incorporated
9
Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS


                                 
392095481_chart-e8133b2757015145984.jpg392095481_chart-7dbb1ad22efe539e8c9.jpg 392095481_chart-1107cc7e44af534b979.jpg
392095481_chart-a3c7e0ac423e5dc4b0c.jpg 392095481_chart-7e79b9cdab5352bc841.jpg 392095481_chart-51c9ab59409f5a3db7a.jpg

          

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

Cousins Properties Incorporated
10
Q4 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 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
$
241,232

$
59,513

$
59,008

$
61,621

$
80,139

$
260,281

$
80,167

$
80,115

$
75,815

$
77,109

$
313,206

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

2,245

8,632

Other Income
2,451

1,121

280

287

3,837

5,525

6,889

5,304

1,634

2,164

15,991

Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(40,704
)
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$62,334
$
64,169

$
259,900

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

427,288

423,297

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61




(1) See pages 31 and 34 for reconciliations of Funds from Operations to net income available to common shareholders.

Cousins Properties Incorporated
11
Q4 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 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
$

$

$

$

$
5,957

$
5,957

$
6,356

$
6,370

$
6,302

$
7,158

$
26,186

Hayden Ferry (2)




3,881

3,881

5,209

5,307

5,466

5,968

21,950

Corporate Center (2)




5,005

5,005

4,761

5,374

5,308

5,446

20,889

Northpark (2)
22,400

5,607

5,097

5,599

5,841

22,144

5,410

5,130

4,945

5,021

20,506

Fifth Third Center
14,956

4,238

4,349

4,451

4,463

17,501

4,842

4,681

4,772

4,989

19,284

Promenade
13,985

3,740

3,419

3,839

3,557

14,555

4,173

4,407

4,184

3,991

16,755

San Jacinto Center




3,456

3,456

4,038

4,207

3,918

3,906

16,069

One Eleven Congress




3,256

3,256

3,713

3,735

4,172

3,526

15,146

Colorado Tower
6,768

2,724

3,064

3,221

3,399

12,408

3,383

3,352

3,344

3,478

13,557

One Buckhead Plaza




2,817

2,817

3,097

2,806

3,071

2,760

11,734

3344 Peachtree




3,505

3,505

3,235

2,884

2,705

2,085

10,909

816 Congress Avenue
8,526

2,468

2,555

2,514

2,363

9,900

2,694

2,641

2,766

2,797

10,898

NASCAR Plaza




2,507

2,507

2,477

2,394

2,609

2,709

10,189

3350 Peachtree




2,006

2,006

2,264

2,288

2,153

1,968

8,673

Tempe Gateway




1,966

1,966

2,008

2,136

1,964

1,971

8,079

3348 Peachtree




1,541

1,541

1,491

1,491

1,657

1,507

6,146

Two Buckhead Plaza




1,369

1,369

1,321

1,337

1,318

1,806

5,782

The Pointe




1,227

1,227

1,146

1,146

1,069

1,207

4,568

Meridian Mark Plaza
3,777

908

857

954

955

3,674

989

997

979

1,116

4,081

111 West Rio







1,396

1,236

1,412

4,044

Harborview Plaza




898

898

930

931

1,035

1,074

3,970

Research Park V


144

288

412

844

359

916

874

827

2,976

8000 Avalon








80

353

433

NCR









50

50

Other (3)
43,287

7,864

7,443

7,587

9,593

32,487

7,095

6,580

2,954

2,650

19,279

Subtotal - Consolidated
113,699

27,549

26,928

28,453

69,974

152,904

70,991

72,506

68,881

69,775

282,153

 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Properties (4)
 
 
 
 
 
 
 
 
 
 
 
Terminus 100
7,268

1,872

1,978

1,899

1,837

7,586

1,912

1,906

1,829

1,851

7,498

Gateway Village (2)(5)
1,208

536

451

460

1,003

2,450

1,751

1,756

1,805

1,735

7,047

Terminus 200
6,069

1,658

1,770

1,678

1,648

6,754

1,798

1,749

1,769

1,663

6,979

Emory University Hospital Midtown Medical Office Tower
3,974

987

1,000

975

1,008

3,970

989

948

961

1,015

3,913

Carolina Square








47

658

705

Other (3)
5,816

1,593

1,755

1,748

2,930

8,026

2,726

1,250

523

412

4,911

Subtotal - Unconsolidated
24,335

6,646

6,954

6,760

8,426

28,786

9,176

7,609

6,934

7,334

31,053

 
 
 
 
 
 
 
 
 
 
 
 
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

77,109

313,206

 
 
 
 
 
 
 
 
 
 
 
 
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
Q4 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 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
 
 
 
 
Management Fees (7)
5,188

1,325

1,263

1,253

1,317

5,158

1,402

1,492

1,458

1,442

5,794

Development Fees
1,778

608

486

549

634

2,277

432

318

1,062

328

2,140

Leasing & Other Fees
331

266

75

143

428

912

102

44

77

475

698

Total Fee Income
7,297

2,199

1,824

1,945

2,379

8,347

1,936

1,854

2,597

2,245

8,632

 
 
 
 
 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
 
 
 
 
Termination Fees
398




122

122

5,238

2,913

734

385

9,270

Gain on Extinguishment of Debt







1,829

429


2,258

Interest and Other Income
460

390

27

153

358

928

188

262

258

1,540

2,248

Termination Fees - Unconsolidated (4)
419




3,000

3,000

959

195

132

8

1,294

Interest and Other Income - Unconsolidated (4)
747

546

151

134

357

1,188

504

105

81

231

921

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

3,837

5,525

6,889

5,304

1,634

2,164

15,991

 
 
 
 
 
 
 
 
 
 
 
 
Total Fee and Other Income
9,748

3,320

2,104

2,232

6,216

13,872

8,825

7,158

4,231

4,409

24,623

 
 
 
 
 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,430
)
(870
)
(798
)
(795
)
(796
)
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
 
 
 
 
 
 
 
 
 
 
 
 
General and Administrative Expenses
(16,918
)
(8,243
)
(4,691
)
(4,368
)
(8,290
)
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
 
 
 
 
Consolidated Debt
 
 


 
 
 
 
 
 
 
Term Loan, Unsecured




(386
)
(386
)
(1,288
)
(1,564
)
(1,655
)
(1,691
)
(6,198
)
Fifth Third Center



(427
)
(1,275
)
(1,702
)
(1,272
)
(1,266
)
(1,260
)
(1,254
)
(5,052
)
Promenade
(4,734
)
(1,165
)
(1,157
)
(1,150
)
(1,142
)
(4,614
)
(1,134
)
(1,127
)
(1,119
)
(1,112
)
(4,492
)
Senior Notes, Unsecured ($250M)








(2,353
)
(2,489
)
(4,842
)
Colorado Tower



(353
)
(1,059
)
(1,412
)
(1,059
)
(1,059
)
(1,059
)
(1,059
)
(4,236
)
816 Congress Avenue
(3,269
)
(817
)
(817
)
(817
)
(817
)
(3,268
)
(814
)
(810
)
(806
)
(803
)
(3,233
)
Credit Facility, Unsecured
(4,089
)
(832
)
(1,053
)
(870
)
(1,159
)
(3,914
)
(1,035
)
(1,153
)
(444
)
(418
)
(3,050
)
Senior Notes, Unsecured ($100M)







(876
)
(1,025
)
(1,036
)
(2,937
)
Meridian Mark Plaza
(1,538
)
(381
)
(379
)
(377
)
(375
)
(1,512
)
(373
)
(372
)
(370
)
(368
)
(1,483
)
The Pointe




(171
)
(171
)
(176
)
(178
)
(177
)
(176
)
(707
)
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

2,733

9,242

Subtotal - Consolidated
(22,737
)
(5,440
)
(5,369
)
(5,754
)
(10,088
)
(26,651
)
(9,741
)
(8,523
)
(7,587
)
(7,673
)
(33,524
)
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 


 
 
 
 
 
 
 
Terminus 100
(3,436
)
(848
)
(844
)
(840
)
(836
)
(3,368
)
(831
)
(827
)
(824
)
(818
)
(3,300
)
Terminus 200
(1,560
)
(390
)
(389
)
(387
)
(385
)
(1,551
)
(383
)
(382
)
(380
)
(378
)
(1,523
)
Emory University Hospital Midtown Medical Office Tower
(1,333
)
(330
)
(329
)
(327
)
(325
)
(1,311
)
(324
)
(322
)
(320
)
(319
)
(1,285
)
Carolina Square








(27
)
(157
)
(184
)
Other (3)
(1,126
)
(439
)
(464
)
(484
)
(806
)
(2,193
)
(787
)
(390
)
(225
)
(164
)
(1,566
)
Subtotal - Unconsolidated
(7,455
)
(2,007
)
(2,026
)
(2,038
)
(2,352
)
(8,423
)
(2,325
)
(1,921
)
(1,776
)
(1,836
)
(7,858
)
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations (6)
(7,986
)
(1,974
)
(1,965
)
(1,956
)
(126
)
(6,021
)






Cousins Properties Incorporated
13
Q4 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 4th
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Interest Expense
(38,178
)
(9,421
)
(9,360
)
(9,748
)
(12,566
)
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
 
 
 
 
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
 
 
 
 
Transaction Costs - Merger

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

(162
)
(1,661
)
Property Taxes and Other Holding Costs
(828
)
(89
)
(98
)
(95
)
(158
)
(440
)
(304
)
(140
)
(139
)
(181
)
(764
)
Predevelopment & Other
(522
)
(108
)
(118
)
(140
)
(577
)
(943
)
(129
)
(156
)
(265
)
(253
)
(803
)
Severance
(181
)
(249
)



(249
)
(28
)

(73
)
(345
)
(446
)
Partners' share of FFO in consolidated joint ventures
(111
)



(3,775
)
(3,775
)


(4
)
(12
)
(16
)
Transaction Costs - Spin-off



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





Loss on Extinguishment of Debt - Unconsolidated (4)




(5,180
)
(5,180
)





Impairment Loss




(4,526
)
(4,526
)





Acquisition Costs
(299
)










Total Other Expenses
(1,941
)
(465
)
(2,640
)
(2,175
)
(40,704
)
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
 
 
 
 
 
 
 
 
 
 
 
Consolidated
(1,621
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
Unconsolidated (4)
(48
)










Total Depreciation and Amortization of Non-Real Estate Assets
(1,669
)
(377
)
(335
)
(328
)
(325
)
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
 
 
 
 
 
 
 
 
 
 
 
 
FFO (1)
$
192,749

$
43,457

$
43,288

$
46,439

$
27,444

$
160,628

$
67,037

$
66,360

$
62,334

$
64,169

$
259,900

Weighted Average Shares - Diluted
215,979

210,974

210,362

210,326

391,413

256,023

411,186

427,180

427,300

427,288

423,297

FFO per Share (1)
$
0.89

$
0.21

$
0.21

$
0.22

$
0.07

$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$