Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (June 2020)
32 slides from Cousins Properties's investor presentation, Jun 2, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION
Slide 2: COVID-19 Response
I COVID-19 RESPONSE Prioritizing the Well-Being of Customers & Employees COUSINS OPERATIONS » Implemented the company’s business continuity plan in late February » On March 13", enacted work-from-home policy with property teams staggering onsite personnel to ensure a safe work environment and compli
Slide 3: Rent Collection Update
RENT COLLECTION UPDATE May Office Rent Collections of 97% Monthly Rent Collections’ 100% 80% 60% 40% 20% 0% March April Office mRetail m Total May Rent Collections Highlights! > Top 20 customers 100% paid > Retail customers 48% paid Represent 1.7% of total rent? May Rent Collections by Industry! 100
Slide 4: Customer Quality & Industry Diversification
I CUSTOMER QUALITY & INDUSTRY DIVERSIFICATION Well-Diversified Customer Ba with Strong Credit Profi Annualized Rent by Industry’ Top 20 Customers Highlights Financial > Top 20 Customers represent 31% of 17.4% annualized rent Professional >» 16 of 20 are public companies or a major subsidiary of a pu
Slide 5: Balance Sheet
aa A 1 4 1 Ne a ee aS BZ BALANCE SHEET n re E 74 =) = a ie) a a fo} 1x 3 [4 O° oO Z oa Sa: EI _ COMPEL SIMPLE en
Slide 6: Cousins at a Glance
I COUSINS AT A GLANCE Preeminent 3.66x NET DEBT / EBITDA' 93.3% LEASED Land Bank Supports $6.4Bn Additional Development of TOTAL MARKET 3.4MM SF3 CAPITALIZATION? 100% CLASS A Ch lott ‘eel In-Place Rents Dallas/ Fort Worth i i“ ; y Below Market Tampa Phoenix $1.1 Billion of Liquidity’ Houston Austin
Slide 7: Healthy Market Fundamentals
I HEALTHY MARKET FUNDAMENTALS Cousins is Positioned at the Intersection of Two Powerful Long-Term Trends NET MIGRATION FLIGHT TO QUALITY Top Five States for Net Migration’ Average Annual Net Absorption” 2005-2018 3.0% mx | #2FL | #3NC | AZ | #5GA 26% 2.5% #50 New York Top Source of aes 17% Net Migra
Slide 8: Healthy Market Fundamentals
I HEALTHY MARKET FUNDAMENTALS Outstanding Office Employment Growth Constrained New Supply Office Employment Growth! 21% 1.3% 1.2% oe @ cousins Gateway Average US. Average Construction as a % of Total Inventory? 2.8% 2.6% 2.0% © cousins Gateway Average US. Average
Slide 9: Healthy Market Fundamentals
HEALTHY MARKET FUNDAMENTALS Solid Supply/Demand Characteristics Robust Rent Growth and Absorption Rent Growth! Top Rent Growth Markets? 5.6% Columbus EE 10.5% Charlotte i 36°. Sine 3.2% East bay A 5.59. |_| Tampa i 53. €@ Cousins Gateway Average U.S. Average Raleigh (NN 7.6% Dallas-Fort Worth I 7.50
Slide 10: Premier Sun Belt Portfolio
Se ~~ . PREMIER SUN BELT PORTFOLIO Pure-Play Sun Belt Office REIT with a Differentiated Portfolio CUZ PEERS' AVERAGE BUILDING SIZE EF % SUN BELT % CLASS A % OFFICE AVERAGE YEAR BUILT Portfolio is well-positioned with 77% of assets in close proximity to mass transit and a parking ratio of 2.9:1000
Slide 11: Premier Sun Belt Portfolio
PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets Atlanta Buckhead 18% Class A Market Share! Atlanta Midtown 12% Class A Market Share’ Development/Land Asset Austin CBD 17% Class A Market Share! Austin The Domain 36% Class A Market Share’ Charlotte Uptown 12% Class A M
Slide 12: Premier Sun Belt Portfolio
I PREMIER SUN BELT PORTFOLIO Commands Premium Rents in Our Markets 456 $39.15 $39.49 $35.67 $34.37 $4637 Atlanta Buckhead Cousins Austin CBD Cousins Charlotte Uptown Cousins Buckhead CBD Uptown $48.72 $43.60 $44.18 bisa $33.82 1.8. $32.65 $3.84 Dallas Preston Center Cousins Bhoenix Tempe Cousins Tam
Slide 13: Premier Sun Belt Portfolio
PREMIER SUN BELT PORTFOLIO Near-Term Lease Expirations In-Line with Peers 50% A5% 40% 35% 30% 25% 20% 15% 10% 5% 0% Lease Expirations by Year’ Avg = 25% nHIUHIA PGRE CLI VNO BXP ESRT KRC PDM [cuz] EQC ARE AAT SLG WRE HIW HPP BDN OFC JBGS DEI 2020 M2021 M2022 12
Slide 14: Premier Sun Belt Portfolio
PREMIER SUN BELT PORTFOLIO Value-Add Lease-Up Opportunities ,, Upcoming Expiration eee 2000 PEACHITREE Expiration Date’ | 12/31/20 Upcoming Expiration | Expiring Rent Anthem 199K SF selow Market. Expi | Date 6/30/21 Acquired as a value-add re-leasing opportunity as part of TIER merger. Located at Ma
Slide 15: Compelling Growth Opportunities
COMPELLING GROWTH OPPORTUNITIES $9MM of Development NOI in 2019 Grows to $71MM! in 2022 CURRENT DEVELOPMENT PIPELINE 10000, 120 WEST 300 100 AVALON TRINITY Geil BEMAINTON) ecickipo MILL RSF 251K 352K 320K 300K 358K 287K % Leased” 75% 100% 100% 98% 87% 44% 2022 Total a $71MM 18 2021 Total ~ a $51MM =
Slide 16: Compelling Growth Opportunities
I COMPELLING GROWTH OPPORTUNITIES Attractive Land Bank Supports 3.4MM SF! of Additional New Development EST HTREE MIDTOWN BUCKHEAD LEGACY UPTOWN 455K SF 560K SF 600K SF 460K SF DOMAIN DOMAIN WESTSHORE 330K SF 800K SF 170K SF &
Slide 17: Compelling Growth Opportunities
COMPELLING GROWTH OPPORTUNITIES In-Place Rents Remain Below Current Market Rents Increase in 2nd Generation Cash Net Rent! 20% 16% 12% 8% 4% 0%
Slide 18: Simple Strong Balance Sheet
q SIMPLE STRONG BALANCE SHEET Leverage Significantly Below Peers Net Debt/EBITDA' 12.0x 10.0x 8.0x Average = 6.6x SLG VNO PGRE FSP CXP BDN DEA BXP PDM OFC CIO ARE KRC ESRT HIW CUZ 6.0x A.0x 2.0x 0.0x
Slide 19: Simple Strong Balance Sheet
l SIMPLE STRONG BALANCE SHEET Liquidity and Access to Capital Markets a Flexible Portfolio? $ $1.1 Billion Liquidity’ REVOLVER UNENCUMBERED $i1BN 79%
Slide 20: Meet Our Executive Team
I MEET OUR EXECUTIVE TEAM Stable, Experienced Leadership Kennedy Hicks Senior Vice President, Investments dzema Executive Vice President and Chief Financial Officer Pamela F. Roper Executive Vice President, General Counsel and Corporate Secretary John S. McColl 19
Slide 21: Appendix
APPENDIX
Slide 22: Atlanta
ATLANTA 8000 AVALON —® o d 4 é *. — NORTHPARK a Oo ‘ {MERIDIAN MARK 3350 PEACHTREE , ’ mot 3348 PEACHTREE J o BUCKHEAD PLAZA f ee 3544 PEACHTREE 4225) @ TERMINUS SPRING & 8TH ” ° a PROMENADE o °, : 1200 PEACHTREE PEN e’ ~EMORY HOSPITAL MIDTOWN martawa. oO 0 Submarket Transportation 4% Industry Conce
Slide 23: Austin
AUSTIN 4.0MM RESEARCH PARK PLAZA V = Total Square Feet’ Submarket centration DOMAIN TI< Covet Gal DOMAR2 Soman 4 e DOMAIN 3 DOMAIN 7 o 8 * 95% Consumer Goods and Services 29% ef 816 CONGRESS @-— coLorapo Tower (@~ ONE ELEVEN (O) ° {CONGRESS Industry $58.00 @ _ SANJACINTO CENTER” Financial THE TERRAC
Slide 24: Charlotte
CHARLOTTE 2.3MM Total Square Feet’ Submarket qi I} @ 94% @- FIFTH THIRD CENTER Professional Services 29% eo BANK OF AMERICA B “s PLAZA Go (@—— nascar pLaza 77] Industry DIMENSIONAL PLACE © Concentration 4 Marketing 1396 $38.95 23
Slide 25: Dallas
DALLAS 516K Sacrum Total Square Feet’ 5 ‘“ 97% © oN 635] ' B © s $48.72 5 24
Slide 26: Phoenix
PHOENIX 1.3MM Total Square Feet’ 98% HAYDEN FERRY wy wer" Marketing > 5% E Rio Salado Phwy TWEST RIO ——® Professional Servie a TEMPE GATEWAY ony VIAN $43.60 25
Slide 27: Tampa
TAMPA 1.7MM Total Square Feet’ CORPORATE CENTER I HARBORVIEW PLAZA / M4 conronarecenrenn) | meme CORPORATE CENTERIV, é | 95% © ron ‘ Insurance 4% Financial 10% Industry ntration Consumer csi ods and =e $38.94 Legal Services 15% 26
Slide 28: Definitions of Non-GAAP Measures
| DEFINITIONS OF NON-GAAP MEASURES “NET OPERATING INCOME” (“NOI”) is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Net Operating Income, which is rental property revenues less termination fees and rental property operating e
Slide 29: Endnotes
ENDNOTES Page 1~- COVID-19 Response 1. As of 51-Mar-2020 filings. Represents office leased percentage as of 51-Mar-2020. Page 2- Rent Collection Update 1. Represents rent collections through 28-May-2020 2, Total rent represents total annualized rent as of 31-Mar-2020. Page 3 - Customer Quality and I
Slide 30: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 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
Slide 31: Pecceeeerere!
Pecceeeerere! an eH i 08 On we ick el Win i a ie un iv L Bel i We H j Ma ust I hie Y , Ee an an me TT Gregg Adzema Roni Imbeaux Executive Vice President and Chief Vice President, Finance and Investor Financial Officer Relations moere a fittbeau@coUsinetcor Atlanta, GA 404,407.16 404.407.1104
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