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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): April 25, 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 April 25, 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 March 31, 2018. 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: April 25, 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
393175876_q12018supplementcoverv2.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
393175876_cppromenadeii224186.jpg

Cousins Properties
 
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 2018 guidance and underlying assumptions, business and financial strategy, future financings, future acquisitions of land, future acquisitions and dispositions of operating assets, future development and redevelopment opportunities, future dispositions of land and other non-core assets, future issuances and repurchases of common or preferred stock, projected operating results, market and industry trends, future distributions, future projected capital expenditures, future interest rates, and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to creating value for stockholders.
Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information 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, 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, Phoenix, and Tampa 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, potential changes to state, local, or federal regulations applicable to our business, material changes in the dividend rates or the ability to pay dividends on common shares or other securities, potential changes to the tax laws and accounting standards 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
3
Q1 2018 Supplemental Information

EARNINGS RELEASE


COUSINS PROPERTIES REPORTS FIRST QUARTER 2018 RESULTS

First Quarter Highlights
Net income available to common stockholders was $0.04 per share.
Funds From Operations was $0.15 per share.
Same property net operating income on a cash-basis increased 9.4%.
Second generation net rent per square foot on a cash-basis increased 19.3%.
Executed 329,583 square feet of office leases.
Commenced operations at 864 Spring Street, Phase I of NCR's world headquarters in Midtown Atlanta.
Closed a new $1 billion unsecured revolving credit facility that replaced the existing $500 million facility.
Formed a 50-50 joint venture to develop 300 Colorado, a 100% leased, 309,000 square foot office tower in downtown Austin.

ATLANTA (April 25, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2018.
“Office fundamentals in our Sun Belt markets remain solid. Same property performance is firmly positive and rents continue to roll up throughout our urban portfolio,” said Larry Gellerstetdt, Chairman and Chief Executive Officer of Cousins Properties. “Looking forward, our in-place rents remain below current market rents and we continue to replenish our development pipeline laying the foundation for significant future value creation.”
Financial Results
Net income available to common stockholders was $16.0 million, or $0.04 per share, for the first quarter of 2018, compared with $4.8 million, or $0.01 per share, for the first quarter of 2017.
Funds From Operations ("FFO") was $64.6 million, or $0.15 per share, for the first quarter of 2018, compared with $67.0 million, or $0.16 per share, for the first quarter of 2017.
2018 Guidance
The Company's 2018 net income and FFO guidance remains unchanged. 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. The Company also leaves unchanged the previously provided assumptions of its 2018 net income and FFO guidance, except for the following update:
Fee and other income of $11 million to $13 million, up from the previous range of $10 million to $12 million, due to $1 million in forecasted termination fees.





Cousins Properties
4
Q1 2018 Supplemental Information

EARNINGS RELEASE

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 10:00 a.m. (Eastern Time) on Thursday, April 26, 2018, to discuss the results of the quarter ended March 31, 2018. 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 First 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 10118492. The playback can also be accessed on the Company's website.
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
5
Q1 2018 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)
 
Three Months Ended March 31,
 
2018
 
2017
Revenues:
 
 
 
Rental property revenues
$
113,348

 
$
112,517

Fee income
2,894

 
1,936

Other
960

 
5,426

 
117,202

 
119,879

Expenses:
 

 
 

Rental property operating expenses
40,191

 
41,526

Reimbursed expenses
942

 
865

General and administrative expenses
6,809

 
6,182

Interest expense
9,778

 
9,741

Depreciation and amortization
45,093

 
54,884

Acquisition and transaction costs
91

 
1,930

Other
320

 
404

 
103,224

 
115,532

Loss on extinguishment of debt
(85
)
 

Income from continuing operations before unconsolidated joint ventures and loss on sale of investment properties
13,893

 
4,347

Income from unconsolidated joint ventures
2,885

 
581

Income from continuing operations before gain on sale of investment properties
16,778

 
4,928

Loss on sale of investment properties
(372
)
 
(70
)
Net income
16,406

 
4,858

Net income attributable to noncontrolling interests
(363
)
 
(107
)
Net income available to common stockholders
$
16,043

 
$
4,751

Net income per common share — basic and diluted
$
0.04

 
$
0.01

Weighted average shares — basic
420,154

 
402,781

Weighted average shares — diluted
427,695

 
411,186


Cousins Properties
6
Q1 2018 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)
 
March 31, 2018
 
December 31, 2017
 
(unaudited)
 
 
Assets:
 
 
 
Real estate assets:
 
 
 
Operating properties, net of accumulated depreciation of $311,238 and $275,977 in 2018 and 2017, respectively
$
3,528,617

 
$
3,332,619

Projects under development
81,964

 
280,982

Land
4,221

 
4,221

 
3,614,802

 
3,617,822

 
 
 
 
Cash and cash equivalents
108,152

 
148,929

Restricted cash
1,185

 
56,816

Notes and accounts receivable, net of allowance for doubtful accounts of $298 and $535 in 2018 and 2017, respectively
16,668

 
14,420

Deferred rents receivable
65,995

 
58,158

Investment in unconsolidated joint ventures
145,465

 
101,414

Intangible assets, net
175,159

 
186,206

Other assets
31,884

 
20,854

Total assets
$
4,159,310

 
$
4,204,619

Liabilities:
 
 
 
Notes payable
$
1,091,258

 
$
1,093,228

Accounts payable and accrued expenses
87,964

 
137,909

Deferred income
37,895

 
37,383

Intangible liabilities, net of accumulated amortization of $32,503 and $28,960 in 2018 and 2017, respectively
66,911

 
70,454

Other liabilities
39,367

 
40,534

Total liabilities
1,323,395

 
1,379,508

Commitments and contingencies
 
 
 
Equity:
 
 
 
Stockholders' investment:
 
 
 
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2018 and 2017
6,867

 
6,867

Common stock, $1 par value, 700,000,000 shares authorized, 430,572,693 and 430,349,620 shares issued in 2018 and 2017, respectively
430,573

 
430,350

Additional paid-in capital
3,604,336

 
3,604,776

Treasury stock at cost, 10,329,082 shares in 2018 and 2017
(148,373
)
 
(148,373
)
Distributions in excess of cumulative net income
(1,110,590
)
 
(1,121,647
)
Total stockholders' investment
2,782,813

 
2,771,973

Nonredeemable noncontrolling interests
53,102

 
53,138

Total equity
2,835,915

 
2,825,111

Total liabilities and equity
$
4,159,310

 
$
4,204,619



Cousins Properties
7
Q1 2018 Supplemental Information

KEY PERFORMANCE METRICS

 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
Property Statistics
 
 
 
 
 
 
 
Consolidated Operating Properties
25

26

26

26

23

23

24

Consolidated Rentable Square Feet (in thousands)
13,024

13,249

12,477

12,466

11,428

11,428

11,936

Unconsolidated Operating Properties
8

7

5

6

5

5

5

Unconsolidated Rentable Square Feet (in thousands)
3,999

3,774

2,988

3,456

3,113

3,113

3,113

Total Operating Properties
33

33

31

32

28

28

29

Total Rentable Square Feet (in thousands)
17,023

17,023

15,465

15,922

14,541

14,541

15,049

 
 
 
 
 
 
 
 
Office Leasing Activity (1)
 
 
 
 
 
 
 
Net Leased during the Period (square feet in thousands)
2,354

571

341

335

943

2,190

330

Net Rent (per square foot)
$24.52
$26.10
$28.58
$26.57
$32.73
$29.41
$33.35
Free rent (per square foot)
(1.25)

(1.22)

(0.91)

(0.83)

(0.39)

(0.75)

(0.56)

Tenant improvements and leasing commissions (per square foot)
(5.10)

(6.22)

(6.51)

(5.01)

(6.09)

(6.02)

(4.84)

Net Effective Rent (per square foot)
$18.17
$18.66
$21.16
$20.73
$26.25
$22.64
$27.95
Change in Second Generation Net Rent
20.0
%
15.8
%
28.5
%
16.9
%
19.7
%
19.6
%
35.2
%
Change in Cash-Basis Second Generation Net Rent
10.3
%
3.3
%
13.5
%
7.3
%
6.3
%
6.9
%
19.3
%
 
 
 
 
 
 
 
 
Same Property Information (2)
 
 
 
 
 
 
 
Percent Leased (period end)
91.8
%
92.1
%
93.9
%
92.9
%
92.6
%
92.6
%
93.6
%
Weighted Average Occupancy
89.4
%
89.9
%
90.7
%
89.1
%
87.7
%
89.4
%
92.0
%
Change in Net Operating Income (over prior year period)
6.1
%
5.5
%
6.8
%
1.3
%
3.6
%
4.4
%
2.6
%
Change in Cash-Basis Net Operating Income (over prior year period)
8.4
%
5.4
%
8.6
%
2.0
%
4.2
%
5.3
%
9.4
%
 
 
 
 
 
 
 
 
Development Pipeline
 
 
 
 
 
 
 
Estimated Project Costs (in thousands) (3)
$512,200
$529,200
$463,500
$402,000
$490,500
$490,500
$271,500
Estimated Project Costs (3) / Total Undepreciated Assets
10.5
%
10.6
%
9.6
%
8.1
%
9.9
%
9.9
%
5.5
%
 
 
 
 
 
 
 
 
Market Capitalization (4)
 
 
 
 
 
 
 
Common Stock Price (period end)
$8.51
$8.27
$8.79
$9.34
$9.25
$9.25
$8.68
Common Stock/Units Outstanding (period end in thousands)
401,596

426,823

426,942

426,995

426,995

426,995

427,218

Equity Market Capitalization (in thousands)
$3,417,582
$3,529,826
$3,752,820
$3,988,133
$3,949,704
$3,949,704
$3,708,252
Debt (in thousands)
1,632,270

1,498,044

1,205,632

1,286,252

1,262,523

1,262,523

1,262,833

Total Market Capitalization (in thousands)
$5,049,852
$5,027,870
$4,958,452
$5,274,385
$5,212,227
$5,212,227
$4,971,085
 
 
 
 
 
 
 
 
Credit Ratios (4)
 
 
 
 
 
 
 
Net Debt/Total Market Capitalization
31.6
%
29.1
%
24.0
%
23.2
%
21.4
%
21.4
%
23.2
%
Net Debt/Total Undepreciated Assets
32.8
%
29.4
%
24.7
%
24.7
%
22.5
%
22.5
%
23.5
%
Net Debt/Annualized Adjusted EBITDAre
5.22

4.49

3.93

4.31

3.75

3.75

3.77

Fixed Charges Coverage (Adjusted EBITDAre)
4.63

5.13

5.49

5.82

6.01

5.58

5.39

 
 
 
 
 
 
 
 

Cousins Properties
8
Q1 2018 Supplemental Information

KEY PERFORMANCE METRICS

 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
Dividend Information (4)
 
 
 
 
 
 
 
Common Dividend per Share (5)
$0.30
$0.06
$0.06
$0.06
$0.06
$0.24
$0.065
FFO Payout Ratio
46.1
%
37.5
%
38.0
%
40.4
%
39.3
%
38.8
%
42.3
%
FAD Payout Ratio
59.0
%
56.4
%
52.9
%
67.2
%
66.8
%
60.2
%
61.6
%
 
 
 
 
 
 
 
 
Operations Ratios (4)
 
 
 
 
 
 
 
Annualized General and Administrative Expenses/Total Undepreciated Assets
0.53
%
0.50
%
0.72
%
0.58
%
0.45
%
0.56
%
0.55
%
 
 
 
 
 
 
 
 
Additional Information (4)
 
 
 
 
 
 
 
Straight Line Rental Revenue
$18,967
$9,608
$7,826
$6,825
$6,714
$30,973
$8,136
Above and Below Market Rents Amortization
$7,097
$1,602
$1,929
$1,852
$1,838
$7,221
$1,793
Second Generation Capital Expenditures
$46,876
$10,971
$7,569
$15,949
$18,996
$53,485
$11,256
 
 
 
 
 
 
 
 

 
(1) See Office Leasing Activity on page 18 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 34 for additional information.
(3) Represents Cousins' share of estimated project costs. See Development Pipeline on page 25 for additional detail.
(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 30.
(5) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.


Cousins Properties
9
Q1 2018 Supplemental Information

KEY PERFORMANCE METRICS


                                 
393175876_chart-de9a9a320a225d98878.jpg393175876_chart-41dcd021070e5898915.jpg 393175876_chart-6c8b9c2a96d7550a972.jpg
393175876_chart-6f95015c5fdd530abb8.jpg 393175876_chart-58284fe8633c569a83d.jpg 393175876_chart-11143e667e0c5c95a64.jpg

          

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

Cousins Properties
10
Q1 2018 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
Net Operating Income
$
260,281

$
80,167

$
80,115

$
75,815

$
77,109

$
313,206

$
80,578

Land Sales Less Cost of Sales
3,770


63

4


67

330

Fee Income
8,347

1,936

1,854

2,597

2,245

8,632

2,894

Other Income
5,525

6,889

5,304

1,634

2,164

15,991

1,034

Reimbursed Expenses
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
(942
)
General and Administrative Expenses
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
(6,809
)
Interest Expense
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
(11,293
)
Other Expenses
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
(695
)
Depreciation and Amortization of Non-Real Estate Assets
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
(473
)
FFO (1)
$
160,628

$
67,037

$
66,360

$62,334
$
64,169

$
259,900

$
64,624

Weighted Average Shares - Diluted
256,023

411,186

427,180

427,300

427,288

423,297

427,695

FFO per Share (1)
$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61

$
0.15




(1) See pages 30 and 33 for reconciliations of Funds from Operations to net income available to common shareholders.

Cousins Properties
11
Q1 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
 
 
 
 
 
 
 
 
Net Operating Income
 
 
 
 
 
 
 
Consolidated Properties
 
 
 
 
 
 
 
Hearst Tower
$
5,957

$
6,356

$
6,370

$
6,302

$
7,158

$
26,186

$
6,493

Corporate Center (2)
5,005

4,761

5,374

5,308

5,446

20,889

5,780

Hayden Ferry (2)
3,881

5,209

5,307

5,466

5,968

21,950

5,766

Northpark (2)
22,144

5,410

5,130

4,945

5,021

20,506

5,731

Fifth Third Center
17,501

4,842

4,681

4,772

4,989

19,284

4,729

864 Spring Street




50

50

4,726

Promenade
14,555

4,173

4,407

4,184

3,991

16,755

4,240

One Eleven Congress
3,256

3,713

3,735

4,172

3,526

15,146

4,036

San Jacinto Center
3,456

4,038

4,207

3,918

3,906

16,069

3,635

Colorado Tower
12,408

3,383

3,352

3,344

3,478

13,557

3,429

3344 Peachtree
3,505

3,235

2,884

2,705

2,085

10,909

2,994

One Buckhead Plaza
2,817

3,097

2,806

3,071

2,760

11,734

2,785

816 Congress Avenue
9,900

2,694

2,641

2,766

2,797

10,898

2,780

NASCAR Plaza
2,507

2,477

2,394

2,609

2,709

10,189

2,652

3350 Peachtree
2,006

2,264

2,288

2,153

1,968

8,673

1,987

Tempe Gateway
1,966

2,008

2,136

1,964

1,971

8,079

1,893

Two Buckhead Plaza
1,369

1,321

1,337

1,318

1,806

5,782

1,545

3348 Peachtree
1,541

1,491

1,491

1,657

1,507

6,146

1,405

8000 Avalon



80

353

433

1,357

111 West Rio


1,396

1,236

1,412

4,044

1,314

The Pointe
1,227

1,146

1,146

1,069

1,207

4,568

1,236

Research Park V
844

359

916

874

827

2,976

1,012

Meridian Mark Plaza
3,674

989

997

979

1,116

4,081

920

Harborview Plaza
898

930

931

1,035

1,074

3,970

712

Other (3)
32,487

7,095

6,580

2,954

2,650

19,279


Subtotal - Consolidated
152,904

70,991

72,506

68,881

69,775

282,153

73,157

 
 
 
 
 
 
 
 
Unconsolidated Properties (4)
 
 
 
 
 
 
 
Gateway Village (2)(5)
2,450

1,751

1,756

1,805

1,735

7,047

1,968

Terminus 200
6,754

1,798

1,749

1,769

1,663

6,979

1,755

Terminus 100
7,586

1,912

1,906

1,829

1,851

7,498

1,731

Emory University Hospital Midtown Medical Office Tower
3,970

989

948

961

1,015

3,913

990

Carolina Square



47

658

705

928

300 Colorado






49

Other (3)
8,026

2,726

1,250

523

412

4,911


Subtotal - Unconsolidated
28,786

9,176

7,609

6,934

7,334

31,053

7,421

 
 
 
 
 
 
 
 
Discontinued Operations (6)
78,591







 
 
 
 
 
 
 
 
Total Net Operating Income (1)
260,281

80,167

80,115

75,815

77,109

313,206

80,578

 
 
 
 
 
 
 
 
Sales Less Cost of Sales
 
 
 
 
 
 
 
Land Sales Less Cost of Sales - Consolidated
3,580


63

4


67


Land Sales Less Cost of Sales - Unconsolidated (4)
190






330

Total Sales Less Cost of Sales
3,770


63

4


67

330

 
 
 
 
 
 
 
 

Cousins Properties
12
Q1 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
 
 
 
 
 
 
 
 
Fee Income
 
 
 
 
 
 
 
Management Fees (7)
5,158

1,402

1,492

1,458

1,442

5,794

1,524

Leasing & Other Fees
912

102

44

77

475

698

1,079

Development Fees
2,277

432

318

1,062

328

2,140

291

Total Fee Income
8,347

1,936

1,854

2,597

2,245

8,632

2,894

 
 
 
 
 
 
 
 
Other Income
 
 
 
 
 
 
 
Interest and Other Income
928

188

262

258

1,540

2,248

600

Termination Fees
122

5,238

2,913

734

385

9,270

360

Interest and Other Income - Unconsolidated (4)
1,188

504

105

81

231

921

74

Gain on Extinguishment of Debt


1,829

429


2,258


Termination Fees - Unconsolidated (4)
3,000

959

195

132

8

1,294


Termination Fees - Discontinued Operations (6)
288







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






Total Other Income
5,525

6,889

5,304

1,634

2,164

15,991

1,034

 
 
 
 
 
 
 
 
Total Fee and Other Income
13,872

8,825

7,158

4,231

4,409

24,623

3,928

 
 
 
 
 
 
 
 
Reimbursed Expenses
(3,259
)
(865
)
(907
)
(895
)
(860
)
(3,527
)
(942
)
 
 
 
 
 
 
 
 
General and Administrative Expenses
(25,592
)
(6,182
)
(8,618
)
(7,193
)
(5,530
)
(27,523
)
(6,809
)
 
 
 
 
 
 
 
 
Interest Expense
 
 
 
 
 
 
 
Consolidated Debt
 
 
 
 
 
 
 
Senior Notes, Unsecured ($250M)



(2,353
)
(2,489
)
(4,842
)
(2,489
)
Term Loan, Unsecured
(386
)
(1,288
)
(1,564
)
(1,655
)
(1,691
)
(6,198
)
(1,858
)
Fifth Third Center
(1,702
)
(1,272
)
(1,266
)
(1,260
)
(1,254
)
(5,052
)
(1,247
)
Promenade
(4,614
)
(1,134
)
(1,127
)
(1,119
)
(1,112
)
(4,492
)
(1,102
)
Colorado Tower
(1,412
)
(1,059
)
(1,059
)
(1,059
)
(1,059
)
(4,236
)
(1,059
)
Senior Notes, Unsecured ($100M)


(876
)
(1,025
)
(1,036
)
(2,937
)
(1,036
)
816 Congress Avenue
(3,268
)
(814
)
(810
)
(806
)
(803
)
(3,233
)
(799
)
Credit Facility, Unsecured
(3,914
)
(1,035
)
(1,153
)
(444
)
(418
)
(3,050
)
(742
)
Meridian Mark Plaza
(1,512
)
(373
)
(372
)
(370
)
(368
)
(1,483
)
(366
)
The Pointe
(171
)
(176
)
(178
)
(177
)
(176
)
(707
)
(175
)
Other (3)
(14,369
)
(4,180
)
(2,336
)
(20
)

(6,536
)

Capitalized
4,697

1,590

2,218

2,701

2,733

9,242

1,095

Subtotal - Consolidated
(26,651
)
(9,741
)
(8,523
)
(7,587
)
(7,673
)
(33,524
)
(9,778
)
 
 
 
 
 
 
 
 
Unconsolidated Debt (4)
 
 
 
 
 
 
 
Terminus 100
(3,368
)
(831
)
(827
)
(824
)
(818
)
(3,300
)
(625
)
Terminus 200
(1,551
)
(383
)
(382
)
(380
)
(378
)
(1,523
)
(376
)
Emory University Hospital Midtown Medical Office Tower
(1,311
)
(324
)
(322
)
(320
)
(319
)
(1,285
)
(317
)
Carolina Square



(27
)
(157
)
(184
)
(197
)
Other (3)
(2,193
)
(787
)
(390
)
(225
)
(164
)
(1,566
)

Subtotal - Unconsolidated
(8,423
)
(2,325
)
(1,921
)
(1,776
)
(1,836
)
(7,858
)
(1,515
)
 
 
 
 
 
 
 
 

Cousins Properties
13
Q1 2018 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)



 
2016
2017 1st
2017 2nd
2017 3rd
2017 4th
2017
2018 1st
 
 
 
 
 
 
 
 
Discontinued Operations (6)
(6,021
)






 
 
 
 
 
 
 
 
Total Interest Expense
(41,095
)
(12,066
)
(10,444
)
(9,363
)
(9,509
)
(41,382
)
(11,293
)
 
 
 
 
 
 
 
 
Other Expenses
 
 
 
 
 
 
 
Severance
(249
)
(28
)

(73
)
(345
)
(446
)
(195
)
Partners' share of FFO in consolidated joint ventures
(3,775
)


(4
)
(12
)
(16
)
(144
)
Property Taxes and Other Holding Costs
(440
)
(304
)
(140
)
(139
)
(181
)
(764
)
(130
)
Transaction Costs - Merger
(24,522
)
(1,930
)
(246
)
677

(162
)
(1,661
)
(91
)
Loss on Extinguishment of Debt - Consolidated






(85
)
Predevelopment & Other
(943
)
(129
)
(156
)
(265
)
(253
)
(803
)
(50
)
Transaction Costs - Spin-off
(6,349
)






Loss on Extinguishment of Debt - Unconsolidated (4)
(5,180
)






Impairment Loss
(4,526
)






Total Other Expenses
(45,984
)
(2,391
)
(542
)
196

(953
)
(3,690
)
(695
)
 
 
 
 
 
 
 
 
Depreciation and Amortization of Non-Real Estate Assets
(1,365
)
(451
)
(465
)
(461
)
(497
)
(1,874
)
(473
)
 
 
 
 
 
 
 
 
FFO (1)
$
160,628

$
67,037

$
66,360

$
62,334

$
64,169

$
259,900

$
64,624

Weighted Average Shares - Diluted
256,023

411,186

427,180

427,300

427,288

423,297

427,695

FFO per Share (1)
$
0.63

$
0.16

$
0.16

$
0.15

$
0.15

$
0.61

$
0.15

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 30.
(2) Contains multiple buildings that are grouped together for reporting purposes.
(3) Represents properties sold and loans repaid prior to March 31, 2018 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
14
Q1 2018 Supplemental Information

PORTFOLIO STATISTICS

 
Office Properties
 
Rentable Square Feet
 
Financial Statement Presentation
 
Company's Ownership Interest
 
End of Period Leased
 
Weighted Average Occupancy
 
% of Total
Net Operating
Income (1)
 
Property Level Debt ($000) (2)
 
 
 
 
 
1Q18
 
4Q17
 
1Q18
 
4Q17
 
 
 
Northpark (3)
 
1,539,000

 
Consolidated
 
100%
 
86.0%
 
86.3%
 
82.5%
 
75.3%
 
7.1%
 
$

 
864 Spring Street
 
503,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
—%
 
5.9%
 

 
Promenade
 
777,000

 
Consolidated
 
100%
 
94.2%
 
94.1%
 
94.1%
 
94.1%
 
5.3%
 
101,319

 
3344 Peachtree
 
484,000

 
Consolidated
 
100%
 
92.4%
 
91.7%
 
91.5%
 
90.6%
 
3.7%
 

 
One Buckhead Plaza
 
461,000

 
Consolidated
 
100%
 
88.7%
 
89.6%
 
88.8%
 
89.5%
 
3.5%
 

 
3350 Peachtree
 
413,000

 
Consolidated
 
100%
 
86.2%
 
86.2%
 
86.2%
 
93.2%
 
2.5%
 

 
Terminus 100
 
660,000

 
Unconsolidated
 
50%
 
90.1%
 
93.7%
 
86.2%
 
88.6%
 
2.2%
 
61,578

 
Terminus 200
 
566,000

 
Unconsolidated
 
50%
 
94.1%
 
94.1%
 
93.7%
 
90.6%
 
2.2%
 
39,448

 
Two Buckhead Plaza
 
210,000

 
Consolidated
 
100%
 
91.0%
 
91.0%
 
84.7%
 
83.9%
 
1.9%
 

 
8000 Avalon
 
224,000

 
Consolidated
 
90%
 
96.8%
 
94.1%
 
70.9%
 
39.0%
 
1.7%
 

 
3348 Peachtree
 
258,000

 
Consolidated
 
100%
 
87.1%
 
87.1%
 
87.1%
 
88.9%
 
1.7%
 

 
Emory University Hospital Midtown Medical Office Tower
 
358,000

 
Unconsolidated
 
50%
 
99.9%
 
99.5%
 
99.9%
 
98.5%
 
1.2%
 
35,336

 
Meridian Mark Plaza
 
160,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.1%
 
23,851

 
ATLANTA
 
6,613,000

 
 
 
 
 
91.1%
 
90.5%
 
88.7%
 
84.9%
 
40.0%
 
261,532

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hearst Tower
 
966,000

 
Consolidated
 
100%
 
99.1%
 
98.9%
 
99.0%
 
98.7%
 
8.0%
 

 
Fifth Third Center
 
692,000

 
Consolidated
 
100%
 
99.7%
 
98.8%
 
95.8%
 
95.9%
 
5.9%
 
145,235

 
NASCAR Plaza
 
394,000

 
Consolidated
 
100%
 
98.7%
 
98.7%
 
98.7%
 
98.7%
 
3.3%
 

 
Gateway Village (3)
 
1,061,000

 
Unconsolidated
 
50%
 
99.4%
 
99.4%
 
99.4%
 
99.4%
 
2.4%
 

 
CHARLOTTE
 
3,113,000

 
 
 
 
 
99.3%
 
98.9%
 
98.2%
 
98.1%
 
19.6%
 
145,235

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One Eleven Congress
 
519,000

 
Consolidated
 
100%
 
86.4%
 
87.8%
 
87.0%
 
85.0%
 
5.0%
 

 
San Jacinto Center
 
395,000

 
Consolidated
 
100%
 
94.3%
 
94.4%
 
93.0%
 
98.7%
 
4.5%
 

 
Colorado Tower
 
373,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
4.3%
 
119,190

 
816 Congress
 
435,000

 
Consolidated
 
100%
 
97.7%
 
95.2%
 
95.2%
 
95.2%
 
3.5%
 
82,362

 
Research Park V
 
173,000

 
Consolidated
 
100%
 
97.1%
 
97.1%
 
97.1%
 
85.7%
 
1.3%
 

 
AUSTIN
 
1,895,000

 
 
 
 
 
94.3%
 
94.1%
 
93.6%
 
93.2%
 
18.6%
 
201,552

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hayden Ferry (3)
 
789,000

 
Consolidated
 
100%
 
96.0%
 
96.2%
 
91.9%
 
91.2%
 
7.2%
 

 
Tempe Gateway
 
264,000

 
Consolidated
 
100%
 
98.6%
 
98.6%
 
90.2%
 
98.5%
 
2.3%
 

 
111 West Rio
 
225,000

 
Consolidated
 
100%
 
100.0%
 
100.0%
 
100.0%
 
100.0%
 
1.6%
 

 
PHOENIX
 
1,278,000

 
 
 
 
 
97.2%
 
97.3%
 
93.0%
 
94.3%
 
11.1%
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Center (3)
 
1,224,000

 
Consolidated
 
100%
 
97.5%
 
96.7%
 
94.6%
 
91.8%
 
7.2%
 

 
The Pointe
 
253,000

 
Consolidated
 
100%
 
93.6%
 
93.1%
 
93.3%
 
95.0%
 
1.5%
 
22,567

 
Harborview Plaza
 
205,000

 
Consolidated
 
100%
 
67.4%
 
99.7%
 
77.2%
 
98.0%
 
0.9%
 

 
TAMPA
 
1,682,000

 
 
 
 
 
93.2%
 
96.5%
 
92.3%
 
93.1%
 
9.6%
 
22,567

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Office (4)
 
158,000

 
Unconsolidated
 
50%
 
74.8%
 
74.8%
 
69.2%
 
41.6%
 
0.5%
 
11,888

 
CHAPEL HILL
 
158,000

 
 
 
 
 
74.8%
 
74.8%
 
69.2%
 
41.6%
 
0.5%
 
11,888

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OFFICE
 
14,739,000

 
 
 
 
 
93.9%
 
94.1%
 
92.0%
 
90.5%
 
99.4%
 
$
642,774

 
 
Other Properties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carolina Square Apartments (246 Units) (4)
 
266,000

 
Unconsolidated
 
50%
 
91.5%
 
91.1%
 
89.3%
 
87.4%
 
0.5%
 
20,014

 
Carolina Square Retail (4)
 
44,000

 
Unconsolidated
 
50%
 
81.5%
 
81.5%
 
56.8%
 
58.0%
 
0.1%
 
3,311

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL OTHER
 
310,000

 
 
 
 
 
90.1%
 
89.7%
 
84.7%
 
83.2%
 
0.6%
 
$
23,325

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 TOTAL
 
15,049,000

 
 
 
 
 
 
 
 
 
 
 
 
 
100.0%
 
$
666,099

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See next page for footnotes

Cousins Properties
15
Q1 2018 Supplemental Information

PORTFOLIO STATISTICS



393175876_chart-ecbd36ff446d5f61a08.jpg
(1
)
Represents the Company's share of net operating income for the three months ended March 31, 2018.
(2
)
Represents the Company's share of property specific mortgage debt as of March 31, 2018.
(3
)
Contains multiple buildings that are grouped together for reporting purposes.
(4
)
The Company's share of Carolina Square debt has been allocated to office, retail, and apartments based on their relative square footage.

Cousins Properties
16
Q1 2018 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

 
Net Operating Income ($ in thousands)
 
 
 
 
Three Months Ended March 31,
 
 
 
 
2018
 
2017
 
% Change
 
 
 
Property Revenues (2)
$
114,322

 
$
109,996

 
3.9
%
 
 
 
Property Operating Expenses (2)
42,119

 
39,654

 
6.2
%
 
 
 
Property Net Operating Income
$
72,203

 
$
70,342

 
2.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Cash-Basis Property Revenues (3)
$
106,561

 
$
98,542

 
8.1
%
 
 
 
Cash-Basis Property Operating Expenses (4)
41,969

 
39,504

 
6.2
%
 
 
 
Cash-Basis Property Net Operating Income
$
64,592

 
$
59,038

 
9.4
%
 
 
 
 
 
 
 
 
 
 
 
 
End of Period Leased
93.6
%
 
94.6
%
 
 
 
 
 
Weighted Average Occupancy
92.0
%
 
91.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Same Properties include those office properties that were operational and stabilized on January 1, 2017, excluding properties subsequently sold. See Non-GAAP Financial Measures - Calculation and Reconciliations. Properties included in this reporting period are as follows:
 
816 Congress
Harborview Plaza
Promenade
 
3344 Peachtree
Hayden Ferry
Research Park V
 
3348 Peachtree
Hearst Tower
San Jacinto Center
 
3350 Peachtree
Meridian Mark Plaza
Tempe Gateway
 
Colorado Tower
NASCAR Plaza
Terminus 100
 
Corporate Center
Northpark
Terminus 200
 
Emory University Hospital Midtown Medical Office Tower
One Buckhead Plaza
The Pointe
 
Fifth Third Center
One Eleven Congress
Two Buckhead Plaza
 
Gateway Village
 
 
(2)
Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures. Net operating income for unconsolidated joint ventures is calculated as property revenues less 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 Same Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Property Revenues, excluding straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)
Cash-Basis Same Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.




Cousins Properties
17
Q1 2018 Supplemental Information

OFFICE LEASING ACTIVITY(1)


 
Three Months Ended March 31, 2018
 
New
 
Renewal
 
Expansion
 
Total
Gross leased (square feet)
 
 
 
 
 
 
449,721

Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements
 
 
 
 
 
 
(120,138
)
Net leased (square feet)
40,768

 
259,616

 
29,199

 
329,583

Number of transactions
6

 
19

 
3

 
28

Lease term (years) (2)
6.6

 
4.8

 
7.7

 
5.3

 
 
 
 
 
 
 
 
Net rent (per square foot) (3)
$
28.00

 
$
34.28