Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Day (January 2012)
29 slides from Cousins Properties's investor day presentation, Jan 17, 2012
Slide 1: Investor Day January 18, 2012
Investor Day January 18, 2012
Slide 2: Disclosure Regarding Forward-Looking Statements
Disclosure Regarding Forward-Looking Statements 1 Certain matters discussed in this presentation are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk. These include, but are not limited to, availability and terms of capital and fi
Slide 3: Agenda
2 Company OverviewThe StrategyInvestment PipelineFinancial SummaryAtlanta Overview Closing/Q&A Agenda Palisades WestAustin, TexasCUZ Developed 2008
Slide 4: Company Overview
3 Palisades WestAustin, TexasCUZ Developed 2008 Founded 1958; Public 1962High Quality Class A Office and Retail PortfolioLong-Term Track Record of Value Creation Focused on Opportunistic InvestmentsProven Competitive Advantage in High Growth Markets Company Overview 191 Peachtree TowerAtlanta, GACUZ
Slide 5: Company Overview: Primary Businesses
4 Primary BusinessesHigh Quality Class-A Office and Retail Properties7.0 MM square feet of office in 5 markets 91% Leased4.8 MM square feet of retail in 9 markets 89% LeasedWeighted Average Remaining Lease Term 8 yearsOther Business LinesThird-Party Leasing and Management Services Management and lea
Slide 6: Company Overview: Elephant In The Room
5 Company Overview: Elephant In The Room Complexity Land and Lot Valuation Lack of Growth Opportunities Atlanta Economy Investor Concerns Solutions Simplify Portfolio Monetize Land and Lot Holdings Strong Investment Pipeline Focused Strategy/Market Outperformance NAVDiscount
Slide 7: Strategy: 90% Office, Simple Platform, Prime Locations
6 80 - 90% Office PromenadeAtlanta, GACUZ Acquired 2011 Strategy Simple Platform Prime Locations; High Growth Markets Trophy Assets Through Opportunistic Investments Additional Returns Terminus 100Atlanta, GACUZ Developed 2005 1 2 3
Slide 8: Strategy: Sell Non-Core, Simplify Platform
Strategy: Sell Non-Core Simplify Platform 7 (CHART) Office55% Retail26% Ind. 4% Comm.Land7% (CHART) Office 80-90% Opportunistic10-20% Res.Land8% Land<2% Trophy Office. Prime Locations. High Growth Markets Current Future ____________________*Based on Gross Book Value as of 9/30/2011 *
Slide 9: Strategy: Recycle Capital, Upgrade Portfolio
8 Strategy: Recycle Capital Upgrade Portfolio Acquired Undervalued / Under-occupied Assets Utilized Skilled Leasing Team and Market Relationships Value Creation Recycle Capital One Georgia Center (Sold Sept. 2011) Promenade (Acquired Nov. 2011) Industrial Portfolio (Sold 2011)
Slide 10: Strategy: Texas, Georgia, North Carolina
RANK REGION 1 Atlanta 2 Houston 3 Dallas 4 Wash. DC 5 Chicago "Best Places for Business & Careers" Forbes 9 RANK REGION CHANGE 1 Los Angeles 8,260,323 2 Atlanta 5,154,556 3 Dallas 5,150,859 4 Wash DC 4,241,981 5 Houston 4,115,182 "Top MSAs for Population Growth: 2000-2040" RANK REGION 1 Atlanta 2 Mi
Slide 11: Strategy: Portfolio/Investments, 80-90% Office
10 Class-A TX, NC, GAStrategic ValueExceptional Location Competitive Advantage through Expertise and Relationships Opportunistic Exits 80-90% Office Strategy: Portfolio/Investments 191 Peachtree TowerAtlanta, GAAcquired 2006 (CHART) 80-90%
Slide 12: Strategy: Portfolio/Investments, Opportunistic 10-20%
11 Sunbelt MarketsOffice, Retail, Multi-Family Value Add Exceptional ReturnsCompetitive Advantage through Capital, Expertise and Relationships Opportunistic Strategy: Portfolio/Investments (CHART) 10-20%
Slide 13: Strategy: Investment Pipeline - Watkins
12 Portfolio RecapitalizationTN, FL December 2010 $25 Million New DevelopmentTallahassee, FL $50 Million Commenced September 2011 Strategy: Investment Pipeline - Watkins
Slide 14: Strategy: Investment Pipeline - Emory Point
13 Mixed-Use Development adjacent to Emory and CDC in AtlantaPhase I: $102 MM 443 Apartments, 82,000 square feet of RetailCommenced Construction July 2011Estimated Total Project Cost $200 MM Strategy: Investment Pipeline - Emory Point Emory Point
Slide 15: Strategy: Investment Pipeline - University Square
14 Mixed-Use Development adjacent to UNC-Chapel HillSourced through Emory University RelationshipEstimated Total Project Cost $150 MMEstimated Start: 2012 University Square Strategy: Investment Pipeline - University Square University SquareChapel Hill, NCCUZ Development
Slide 16: Financial Overview
15 PromenadeAtlanta, GACUZ Acquired 2011 Key Leverage Metrics Debt Maturity Schedule Capital Recycling G&A Analysis Financial Overview Gateway VillageCharlotte, NCCUZ Developed 2001
Slide 17: Financial Overview: Key Leverage Metrics
16 Financial Overview: Key Leverage Metrics Significantly Strengthened Balance Sheet Debt/Gross Book Value
Slide 18: Financial Overview: Debt Maturity Schedule
17 Financial Overview: Debt Maturity Schedule (CHART) Debt Maturities Minimal Near Term Maturities. New Credit Facility in Process ____________________ *Assumes Existing Capacity
Slide 19: Financial Overview: Capital Recycling
18 Financial Overview: Capital Recycling Capital Recycling Activity Accelerating New Investment Activity (CHART) ____________________ *Full Year 2011
Slide 20: Financial Overview: Unencumbered Assets
19 Financial Overview: Unencumbered Assets Portfolio Mix (GBV) Unencumbered (GBV) (CHART) Non-Core Assets are Unencumbered and Ready To Be Sold (CHART)
Slide 21: Financial Overview: Land Costs
20 Financial Overview: Land Costs Current Annual Land Carry Cost (CHART) Land Provides An Attractive Source of Capital Carry Costs Include: -HOA Dues -Property Taxes -Maintenance Exclude: Interest Expense ____________________ *First Nine Months 2011 Annualized *
Slide 22: Financial Overview: G&A Analysis
21 Financial Overview: G&A Analysis Corporate G&A Costs ____________________ *Represents Mid-Point of Current Company Guidance ($27-$28 Million) Significant Reduction in G&A 38% Reduction $46.9 $29.2
Slide 23: Financial Overview: 2011 G&A Breakdown
22 Financial Overview: 2011 G&A Breakdown Financial Overview: 2011 G&A Breakdown Development Platform Drives Opportunistic Investment Activities Development Platform/G&A * ____________________ *Gross G&A Costs. First Nine Months 2011 Annualized. Future Portfolio Mix (CHART) Development Platform* $4.
Slide 24: Atlanta Overview
23 Palisades WestAustin, TexasCUZ Developed 2008 Focused Strategy Market Outperformance Proven Track Record Promenade Overview Atlanta Overview 191 Peachtree TowerAtlanta, GACUZ Acquired 2006
Slide 25: Atlanta Overview: Owning Top Tier Assets
24 Atlanta Overview: Owning Top Tier Assets CUZ owns only 1.4% of the Atlanta office marketPredominantly Class-A trophy properties in urban core submarketsQuality Assets and strong relationships drive outsized results Buckhead Midtown Downtown
Slide 26: Atlanta Overview: Market Outperformance
25 CUZ averages 750bps outperformance in occupancy Atlanta Overview: Market Outperformance ____________________*Source: CoStar. (CHART) % Leased (Office) 94% 83% 95% 81% 97% 82% 86% 86% Cousins Portfolio Market* Cousins vs. Markets
Slide 27: Atlanta Overview: Track Record
26 Project Cost $226MM ($181/SF) Broke record per SF sale price in GA Atlanta Overview: Track Record SOLD $348 PSF PURCHASED $127 PSF B of A PlazaAtlanta, GASOLD 2006 800K+ SF of new leases since acquisitionCurrently more than 80% leased with strong momentum 191 Peachtree Atlanta, GAAcquired 2006
Slide 28: Atlanta Overview: Promenade Summary
27 774,000 SF Class-A Building in Midtown AtlantaAcquired for $134.7 MM in November 2011Significant Value Creation Opportunity (58% Leased) Purchase price and all-in basis well-below replacement costOver 30k SF leased within 30 days Promenade Atlanta Overview: Promenade Summary
Slide 29: Strategy - 90% Office, Simple Platform
28 Strategy 80 - 90% Office Simple Platform Prime Locations; High Growth Markets Trophy Assets Through Opportunistic Investments Additional Returns 1 2 3 PromenadeAtlanta, GACUZ Acquired 2011