Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (September 2019)
32 slides from Cousins Properties's investor presentation, Sep 9, 2019
Slide 1: Investor Presentation
- INVESTOR PRESENTATION
Slide 2: TIER Merger Update
TIER MERGER UPDATE
Slide 3: Strategic Transaction Creates Preeminent Sun Belt Office REIT
TIER MERGER UPDATE Strategic Transaction Creates Preeminent Sun Belt Office REIT with Attractive Growth Profile PRE-MERGER' POST-MERGER' ENHANCES GEOGRAPHIC MIX Phoenix SoS Increases exposure to Austin G Balances exposure to Atlanta ™ gS Enters Dallas with scale 19% EXPANDS DEVELOPMENT PIPELINE (YY
Slide 4: Domain Developments Create Significant Value and Earnings Growth
! TIER MERGER UPDATE Domain Developments Create Significant Value and Generate Meaningful Earnings Growth 10 9 ge Contractual DOMAIN 10 = Nor = 7 accelerates 9 é in 3Q 2020 = = 2 5 . 5 § o4 a 3 = 1 r 2020 Total 2021 Total 2022 Total $i5MM ie $36MM = = == BASED ON CURRENT ESTIMATES occuPANCY STABILIZ
Slide 5: In the Heart of The Domain
n the Heart of The Domain liad ‘ POTENTIAL CENTRAL PARK & . DEVELOPMENT ee OPPORTUNITIES' § za — x \ Domain 3 & 4 1H ss Ties 71OK SF Operating & in-process 2 development property Domain 14 & 15 (d) Le ae FAM) Operating property with future = 800K SF Domain Point : JD development opportunity ORR TAY
Slide 6: Cousins Update
COUSINS UPDATE
Slide 7: Cousins at a Glance
I COUSINS AT A GLANCE Preeminent 21.8MM 25.7% NET DEBT / ASSETS"? 93.7% LEASED! Land Bank Supports $7.4Bn Additional Development of TOTAL MARKET 3.5MM SF4 0, 100% CAPITALIZATION CLASS A Charlotte In-Place Rents Dallas/ Fort Worth ne 8% - 10% y 3 Below Market > Atlanta Tampa 30 Consecutive Quarters o
Slide 8: Simple Strong Balance Sheet
[i SIMPLE STRONG BALANCE SHEET
Slide 9: Healthy Market Fundamentals: Net Migration and Flight to Quality
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 mi | #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,
Slide 10: Healthy Market Fundamentals: Employment Growth and Constrained Supply
I HEALTHY MARKET FUNDAMENTALS Outstanding Office Employment Growth Constrained New Supply Office Employment Growth! 2.3% 11% 1.2% © Cousins Gateway Average U.S, Average Construction as a % of Total Inventory? 2.7% 2.6% 1.9% €@ Cousins Gateway Average U.S. Average
Slide 11: Healthy Market Fundamentals: Rent Growth and Absorption
HEALTHY MARKET FUNDAMENTALS Solid Supply/Demand Characteristics Robust Rent Growth and Absorption Rent Growth! Top Rent Growth Markets’ 4.5% Austin TS 3. San Jose SN 6.1%. 2.4% San Francisco (NN ss. 7 fo oi an. €& Cousins cetewey veers USihversce Secttle TT ; 72, Topo ED : 2: . 2 Net Absorption as a
Slide 12: Premier Sun Belt Portfolio
7é. <i. | = F PREMIER SUN BELT PORTFOLIO Pure-Play Sun Belt Office REIT with a Differentiated Portfolio CUZ PEERS AVERAGE BUILDING SIZE 98% % SUN BELT % CLASS A % OFFICE % NEAR TRANSIT? 2000, AVERAGE YEAR BUILT 90.
Slide 13: Dominant Market Share in Highly-Amenitized Submarkets
PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets Development/Land Asset Atlanta Buckhead 19% Class A Market Share Atlanta Midtown 14% Class A Market Share! Austin CBD 18% Class A Market Share! Austin The Domain 39% Class A Market Share! Charlotte Uptown 23% Class A Ma
Slide 14: Commands Premium Rents in Our Markets
| PREMIER SUN BELT PORTFOLIO Commands Premium Rents in Our Markets Atlanta Buckhead Cousins Cousins Charlotte Uptown Cousins Buckhead CBD Uptown aie $38.79 Rae) | $46.65 ele $45.93 $36.93 san ah $36.51 == $31.16 w Dallas Preston Center Cousins Phoenix Tempe Cousins Tampa Westshore Cousins Preston Ce
Slide 15: Superior Operating Performance
I SUPERIOR OPERATING PERFORMANCE 30 Consecutive Quarters Of Same Property NOI Growth Same Property Cash NOI Growth Year-Over-Year! 12
Slide 16: Compelling Growth Opportunities: Development Pipeline NOI
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 AVALON TRINITY DOMAIN 12 DOMAIN 10 Total / Avg 251K 352K 320K 300K 358K 281K 2.2MM 52% 100% 10
Slide 17: Attractive Land Bank Supports Additional New Development
I COMPELLING GROWTH OPPORTUNITIES Attractive Land Bank Supports 3.7MM SF! of Additional New Development AUSTIN 901 WEST PEACHTREE 3354 PEACHTREE DOMAIN 9 DOMAIN 14 & 15 MIDTOWN BUCKHEAD DOMAIN DOMAIN 455K SF 560K SF 330K SF 800K SF DALLAS TAMPA PHOENIX LEGACY UNION ; . CORPORATE TWO / THREE VICTOR C
Slide 18: Significant Mark-to-Market Opportunity
| COMPELLING GROWTH OPPORTUNITIES Significant Mark-to-Market Opportunity Increase in 2nd Generation Cash Net Rent! 20% 15% jo% = Avg = 9.0% | ing a V4, 5% hood 1! 1! all LJ 0% = soe ef SEs rss * x *. x * 3 °, “%, market rents
Slide 19: Leverage Significantly Below Peers
! SIMPLE STRONG BALANCE SHEET Leverage Significantly Below Peers Net Debt/EBITDA' 10.0x 9.0x 8.0x Average = 6.8x 7.0x 6.0x 5k ~A.5x? 4.0x 3.0x 2.0K 1.0x 0.0x SLG CLI PGRE VNO CIO FSP DEA KRC OPI BXP CXP BDN PDM ARE OFC HIW ESRT CUZ TO FUND CURRENT DEVELOPMENT PIPELINE OR TO REDUCE LEVERAGE
Slide 20: Substantial Liquidity and Access to Capital Markets
I SIMPLE STRONG BALANCE SHEET Substantial Liquidity and Access to Capital Markets $948 Million Liquidity’ REVOLVER $936MM ENCUMBERED a 24% Flexible Portfolio? UNENCUMBERED 76% WA
Slide 21: 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 22: Appendix
APPENDIX
Slide 23: Atlanta submarket concentration
Buckhead 42% Midtown 31% North Fulton 3% Central Perimeter 23%
Slide 24: Austin
AUSTIN RESEARCH PARK PLAZA V e DOMAIN POINT DOMAIN TI Cn T@e—DOMAINS DOMAIN 2 Soman ‘4 e DOMAIN 3 DOMAIN 7 og 8 ? r "ATS, f— 818 CONGRESS @-— coLoraDo TOWER (@~ ONE ELEVEN (O) ° (CONGRESS a SAN JACINTO CENTER THE TERRACES Submarket oncentration Professional Technology 25% Marketing 4% Healthcare. fa
Slide 25: Charlotte
CHARLOTTE 7) GATEWAY VILLAGE DIMENSIONAL PLACE e y, %, @- FIFTH THIRD CENTER @— HEARST TOWER ey PLAZA BANK OF AMERICA (@— NASCAR PLAZA Uptown Industry entrati Consumer Technology insurance Geode and che ae Services 4% 4.3MM Total Square Feet' 95% $38.56 21
Slide 26: Dallas industry concentration
Energy 68% Financial Services 16% Professional Services 7% Other Legal 4% Real Estate 4% Services 4%
Slide 27: Phoenix
PHOENIX 1.3MM Total Square Feet' 97% HAYDEN FERRY d Ric Salado Pkwy TWEST RIO ——® Bigctcy .— __ Industr west Concentration > z = = ne | $45.93 Esthst . Services 8% Legal Services 2% Marketing 3% 23
Slide 28: Tampa
TAMPA yuna al ‘CORPORATE CENTER It ‘CORPORATE CENTER I CORPORATE CENTERIV, CORPORATE CENTER! / aa ai ( Goods and [@ Servic 100% Submar ncentration Legal Services’ 13% Healthcare Ind oncent Financial Services Insurance % 4% 1.7MM Total Square Feet' 94% $38.79 24
Slide 29: 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 30: Endnotes
ENDNOTES Page 1- TIER Merger Update 3 All metrics at time of announcement according to Cousins’ Investor Presentation on 25- March-2019. Market percentages are based on NOI as of 31-Dec-2018. Development Pipeline includes recently delivered Dimensional Place at time of merger announcement. Represent
Slide 31: Investor Relations Contacts and Cautionary Statement
Gregg Adzema Roni Imbeaux Executive Vice President and Chief Vice President, Finance and Investor Financial Officer Relations 404.407.1N6 404,.407.NO4 Cautionary Statement Regarding Forward-Looking Information This communication contains forward-looking statements within the meaning of the federal s
Slide 32: Slide 32
Cousins Properties — Investor Presentation (September 2019) on 6ix