Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (November 2019)
27 slides from Cousins Properties's investor presentation, Nov 12, 2019
Slide 1: e} [= Ps F on n ne a a. ee fe) i 2) WW
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Slide 2: Cousins at a Glance
I COUSINS AT A GLANCE Preeminent 21.8MM 4.05x NET DEBT / EBITDA 93.8% LEASED! $7.6Bn TOTAL MARKET 9, 100% CAPITALIZATION CLASS A Charlotte Dallas/ Fort Worth fi . > Atlanta Phoenix Houston Austin Tampa Land Bank Supports Additional Development of 3.7MM SF5 In-Place Rents 8% - 10% Below Market 31 Con
Slide 3: Simple Strong Balance Sheet / Compelling Growth Opportunities
ia LLING GROWTH OPPORTUNITIES SIMPLE STRONG BALANCE SHEET
Slide 4: Healthy Market Fundamentals
HEALTHY MARKET FUNDAMENTALS Cousins is Positioned at the Intersection of Two Powerful Long-Term Trends NET MIGRATION Top Five States for Net Migration’ 2005-2017 mm | #2FL | #3NC | *4AZ | #5GA #50 New York Top Source of Net Migration to ¢ GA,NC, FL #49 California Top Source of Net Migration to TX, A
Slide 5: Healthy Market Fundamentals
I HEALTHY MARKET FUNDAMENTALS Outstanding Office Employment Growth Constrained New Supply Office Employment Growth! 2.3% 1.3% 1.2% Gateway Average US. Average @ Cousins Construction as a % of Total Inventory? 2.7% 2.7% 1.9% : Gateway Average USS. Average Cousins
Slide 6: Healthy Market Fundamentals
HEALTHY MARKET FUNDAMENTALS Solid Supply/Demand Characteristics Robust Rent Growth and Absorption Rent Growth! Top Rent Growth Markets’ 48% Austin i ;::. Charlotte TD 6°. 2.4% 2.4% Seattle [a 63% | San Francisco [NN scx €& Cousins Gateway Avelage US) Average cast Sy A 5% Tempe TS >. San Jose TT 5.0%
Slide 7: Premier Sun Belt Portfolio
~~. | = F PREMIER SUN BELT PORTFOLIO CUZ Pure-Play Sun Belt Office REIT with a Differentiated Portfolio AVERAGE BUILDING SIZE % SUN BELT % CLASS A % OFFICE % NEAR TRANSIT? AVERAGE YEAR BUILT 34% 88% 88%
Slide 8: Premier Sun Belt Portfolio
PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets Development/Land Asset Atlanta Buckhead 18% Class A Market Share Atlanta Midtown 13% Class A Market Share! Austin CBD. 18% Class A Market Share! Austin The Domain 36% Class A Market Share! Charlotte Uptown 24% Class A M
Slide 9: Premier Sun Belt Portfolio
| PREMIER SUN BELT PORTFOLIO Commands Premium Rents in Our Markets SS A ASKING RENT ($/SF) Atlanta Buckhead Cousins Austin CBD Cousins Charlotte Uptown Cousins Buckhead CBD Uptown fo , $45.09 bo?! $46.65 a6 $42.35 a) $36.58 = stop L Dallas Preston Center Cousins Phoenix Tempe Cousins *Tompe Westshor
Slide 10: Superior Operating Performance
I SUPERIOR OPERATING PERFORMANCE 31 Consecutive Quarters Of Same Property NOI Growth Same Property Cash NOI Growth Year-Over-Year!
Slide 11: Compelling Growth Opportunities
COMPELLING GROWTH OPPORTUNITIES $9MM! of Estimated Development NOI in 2019 Grows to $61MM! in 2022 RSF CURRENT DEVELOPMENT PIPELINE RECENT DELIVERIES Percent Leased” Est Quarterly NOI ($MM) 10000 120 WEST 300 AVALON TRINITY DOMAIN 12 DOMAIN 10 COLORADO Total / Avg 251K 352K 320K 300K 358K 281K 320K
Slide 12: Compelling Growth Opportunities
I COMPELLING GROWTH OPPORTUNITIES Attractive Land Bank Supports 3.7MM SF! of Additional New Development AUSTIN 901 WEST ; DOMAIN 9 DOMAIN 14 & 15 PEACHTREE 3354 PEACHTREE MIDTOWN BUCKHEAD DOMAIN DOMAIN 455K SF 560K SF 330K SF 800K SF DALLAS TAMPA PHOENIX LEGACY UNION . CORPORATE TWO / THREE VICTORY
Slide 13: Compelling Growth Opportunities
| COMPELLING GROWTH OPPORTUNITIES Significant Mark-to-Market Opportunity Increase in 2nd Generation Cash Net Rent’ 20% 15% 10% Avg = 8.9% or} 1 | 13% fiat 1toy si reo tot 14 tq 14 -_ i! 0% Ld x PP SS cf ch ot oP cP of oP 6? oP? o® SFE SS SEF IFSOS SS Despite strong growth, in-place rents market rent
Slide 14: Simple Strong Balance Sheet
! SIMPLE STRONG BALANCE SHEET Leverage Significantly Below Peers Net Debt/EBITDA' 12.0% nox 10.0x 9.0x 8.0x 70x = ; Average = 6.6x 6.0x 5.0x AX 4.0x 3.0x 2.0x 1.0x 0.0x CLI SLG PGRE VNO FSP DEA CIO BXP PDM BDN OPI OFC CXP KRC ARE HIW CUZ ESRT TO FUND CURRENT DEVELOPMENT PIPELINE OR TO REDUCE LEVERAG
Slide 15: Simple Strong Balance Sheet
I SIMPLE STRONG BALANCE SHEET Substantial Liquidity and Access to Capital Markets $932 Million Liquidity’ REVOLVER $920MM Portfolio? UNENCUMBERED 80% 14
Slide 16: Meet Our Executive Team
MEET OUR EXECUTIVE TEAM d Leadership Larry L. Gellerstedt III Executive Chairman Pamela F. Roper Executive Vice President, General Counsel and Corporate Secretary John S. McColl Executive Vice President, Development Kennedy Hicks Senior Vice President, Investments
Slide 17: Appendix
APPENDIX
Slide 18: Atlanta
ATLANTA 8000 AVALON —® Sa / L7) / ft —~ NORTHPARK —— oe? raw oS ed é f \ MERIDIAN MARK 3350 PEACHTREE t ’ pP~ 3348 PEACHTREE ; o BUCKHEAD PLAZA a i eee Crs 3344 PEACHTREE 35] fy TERMINUS SPRING & 8TH Pod Ae ‘ cy di e martawa. 9 *. PROMENADE o 1200 PEACHTREE EMORY HOSPITAL MIDTOWN o Construction 4% S
Slide 19: Austin
AUSTIN 4.0MM RESEARCH PARK PLAZA V Total Square Feet' e o * DOMAIN POINT DOMAIN TI Cn T@e—DOMAINS DOMAIN 2 Soman ‘4 e DOMAIN 3 DOMAIN 7 5 oO) 96% 6 : Professional "ane ef 816 CONGRESS @-— coLorapo Tower (@~ ONE ELEVEN (O) ° (CONGRESS a SAN JACINTO CENTER THE TERRACES Industry Concentration $58.00 4%
Slide 20: Charlotte
CHARLOTTE V7] 9 GATEWAY VILLAGE & vs L & (@- FIFTH THIRD CENTER 4 @— Hearst TOWER %, * AD OF AMERICA PLAZA 4, (o me, ig = Gg (@— NASCAR PLAZA 77] DIMENSIONAL PLACE a é 6 ration Industry Concentration 4 Other 4% Technology 4% Marketing 8% ‘Congumer Insurance 5% Professional Services 4% 4.3MM Total Sq
Slide 21: Dallas
DALLAS 516K Oo icrumen Total Square Feet' c) ; 97% S _| 5950 SHERRY LANE L635] Fy e | 8 © —t $46.65 o 20
Slide 22: Phoenix
PHOENIX 1.3MM Total Square Feet' 94% HAYDEN FERRY d Ric Salado Pkwy Frieneal TWEST RIO ——® : “i. TEMPE GATEWAY 4 Wards Wee » z g z | — , $45.09 Esthst 28% Marketing 5% 21
Slide 23: Tampa
TAMPA 1.7MM Total Square Feet' ‘CORPORATE CENTER I HARBORMEW PLAZA vi conporarecenten i / CORPORATE CENTERIV, | ome 96% \treponre o ai al $38.79 4% 22
Slide 24: 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 exp
Slide 25: Endnotes
ENDNOTES Page 1 - Cousins at a Glance 1. All figures are as of 30-Sep-2019 and included in Cousins’ filings unless otherwise noted. 2. Represents office leased percentage as of 30-Sep-2019. 3. Represents estimated developable SF. 4, Represents Cousins’ pro-rata share of GAAP NOI per 30-Sep-2019 fili
Slide 26: Gregg Adzema, Roni Imbeaux
Gregg Adzema Roni Imbeaux Executive Vice President and Chief Vice President, Finance and Investor Financial Officer Relations 404,407.16 404.407.1104 Cautionary Statement Regarding Forward-Looking Information This communication contains forward-looking statements within the meaning of the federal se
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