Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (November 2022)
32 slides from Cousins Properties's investor presentation, Nov 15, 2022
Slide 1: Investor Presentation November 2022
INVESTOR PRESENTATION November 2022
Slide 2: Why Cousins?
2 BENEFITING FROM POWERFUL OFFICE TRENDS BALANCE SHEET PRIMED FOR OPPORTUNITIES PREMIER SUN BELT PORTFOLIO TRACK RECORD OF SUCCESS WHY COUSINS? • Migration to the Sun Belt leading to outsized population and job growth • Flight to quality driving demand for newer, highly-amenitized assets • 100% Sun
Slide 3: Cousins at a Glance
35 COUSINS AT A GLANCE The Preeminent Sun Belt Office REIT NOI By Market1 18.8MM SF portfolio3 2004 average year built3 90.2% leased3 34% of portfolio less than 5 years old or recently redeveloped3,4 1.5MM SF development pipeline3 Dallas 2% Charlotte 9% Atlanta 37% Houston 3% Phoenix 9% Austin 31% T
Slide 4: Premier Sun Belt Portfolio: Amenity-Rich Trophy Assets
4 PREMIER SUN BELT PORTFOLIO Amenity-Rich Trophy Assets in Leading Sun Belt Markets 725 PONCE Atlanta HAYDEN FERRY Phoenix HEIGHTS UNION Tampa THE RAILYARD Charlotte SPRING & 8TH Atlanta 300 COLORADO / COLORADO TOWER Austin
Slide 5: Select Repositioning of High-Quality Assets in Prime Locations
5 PREMIER SUN BELT PORTFOLIO Select Repositioning of High-Quality Assets in Prime Locations 3350 PEACHTREE Buckhead Atlanta Completed 4Q22 PROMENADE TOWER Midtown Atlanta Completed 3Q22 PROMENADE CENTRAL Midtown Atlanta Completed 4Q22 Completed 4Q21 BUCKHEAD PLAZA Buckhead Atlanta
Slide 6: Command Premium Rents: 24% Higher than Class A Average
6 ATLANTA AUSTIN CHARLOTTE DALLAS PHOENIX TAMPA CLASS A ASKING RENT ($/SF)1 PREMIER SUN BELT PORTFOLIO Command Premium Rents 24% Higher than Class A Average in Our Markets $34.85 $42.61 Total Market $51.22 $62.77 Total Market $36.76 $40.55 Total Market $34.09 $53.50 Total Market $33.41 $48.00 Total
Slide 7: Sun Belt Migration Driving Population and Job Growth
7 SUN BELT MIGRATION 1. Austin, TX 2. Orlando, FL 3. Phoenix, AZ 4. San Antonio, TX 5. Raleigh, NC 6. Nashville, TN 7. Houston, TX 8. Dallas, TX 9. Charlotte, NC 10. Atlanta, GA Projected Population Growth 2023-20272 BENEFITING FROM POWERFUL OFFICE TRENDS Sun Belt Migration is Leading to Outsized Po
Slide 8: Corporate Relocations and Expansions Target Sun Belt Markets
8 BENEFITING FROM POWERFUL OFFICE TRENDS Corporate Relocations and Expansions Target Sun Belt Markets
Slide 9: Flight to Quality Driving Demand for Newer Assets
9 FLIGHT TO QUALITY Net Absorption by Building Age1 BENEFITING FROM POWERFUL OFFICE TRENDS Flight to Quality is Driving Demand for Newer, Highly-Amenitized Assets -38 -17 -31 -89 -34 -43 -4 88 -100 -50 0 50 100 Pre 1950 1960s 1970s 1980s 1990s 2000s 2010-2014 2015-Present Y ea r of D el iv er y Net
Slide 10: Low Portfolio Risk as Large Move-Outs Are Behind
10 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% DEI EQC HPP OPI FSP CIO OFC VNO NYC HIW PDM ARE SLG KRC PGRE BDN ESRT DEA BXP CUZ 2022 2023 2024 LEASE EXPIRATIONS BY YEAR1 POSITIONED FOR ORGANIC GROWTH Low Portfolio Risk as Large Move-Outs are in the Rearview Mirror 12% Avg = 22%
Slide 11: Increase Occupancy from Contractual New Leasing
11 87% 82% 84% 86% 88% 90% 92% 94% 96% 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 % Occupied % Leased COUSINS’ PORTFOLIO OCCUPANCY vs LEASED1 POSITIONED FOR ORGANIC GROWTH Increase Occupancy from Contractual New Leasing Avg = 93% Leased 3% contractual upside from recent leasing Potential upside
Slide 12: Continue to Roll-Up Existing Leases Upon Expirations
12 POSITIONED FOR ORGANIC GROWTH Continue to Roll-Up Existing Leases Upon Expirations 0% 5% 10% 15% 20% 25% 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 COUSINS’ INCREASE IN 2ND GENERATION CASH NET RENT1 Avg = 11.0%
Slide 13: 1.5MM SF Active Developments Delivering Over Next Two Years
13 PHOENIX 287K SF 90% Ownership 92% Pre-Leased1 $140MM CUZ Investment2 ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH 1.5MM SF Active Developments Delivering Over Next Two Years NEUHOFF CURRENT DEVELOPMENT PIPELINE DOMAIN 9100 MILL AUSTIN 338K SF 100% Ownership 97% Pre-Leased1 $147MM CUZ Investm
Slide 14: Land Bank Supports 4.6MM SF of Additional Development
14 DOMAIN POINT LEGACY UNION TWO / THREE LEGACY 600K SF DALLAS MIDTOWN 420K SF 887 WEST PEACHTREE 3354 PEACHTREE ATLANTA AUSTIN 715 PONCE MIDTOWN 200K SF DOMAIN 900K SF TAMPA CORPORATE CENTER V WESTSHORE 170K SF DOMAIN CENTRAL CHARLOTTE 303 TREMONT SOUTH END STATION SOUTH END 700K SF SOUTH END 550K
Slide 15: Significant Opportunities to Grow in Domain Submarket of Austin
15 ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH Significant Opportunities to Grow in Domain Submarket of Austin Domain Central I Future Development Domain Point 1 & 2 Domain 10 Domain 11 Domain 12 Domain 7 Domain 8 Domain 3Domain 4 Domain Point 3 & 4 Future Development Domain 2 Domain 9 Current
Slide 16: Leverage Significantly Below Peers with Substantial Liquidity
16 NET DEBT/EBITDA1 $704MM Liquidity2 BALANCE SHEET PRIMED FOR OPPORTUNITIES Leverage Significantly Below Peers with Substantial Liquidity 4.75x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x SLG PGRE VNO DEA OPI BXP BDN FSP PDM OFC HPP CIO KRC HIW ESRT ARE CUZ Avg = 7.03x
Slide 17: Near-Term Debt Maturities Well Below Office Peer Average
17 BALANCE SHEET PRIMED FOR OPPORTUNITIES Near-Term Debt Maturities Well Below Office Peer Average PEER DEBT MATURITY SCHEDULES1 1.3% 0% 5% 10% 15% 20% 25% 30% PDM BDN HPP SLG BXP OPI VNO CIO PGRE DEA CUZ OFC ESRT KRC EQC ARE DEI NYC FSP HIW 2022 2023 Avg = 6.6% 2
Slide 18: Strong In-Place Rent Growth
18 COUSINS’ IN-PLACE GROSS RENT PER SF1 TRACK RECORD OF SUCCESS Strong In-Place Rent Growth $33.70 $44.85 $31.00 $33.00 $35.00 $37.00 $39.00 $41.00 $43.00 $45.00 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 33% INCREASE
Slide 19: Attractive FAD Growth
19 $1.58 $1.67 $1.82 $1.76 $1.95 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 $1.80 $1.90 $2.00 2017 2018 2019 2020 2021 COUSINS’ ANNUAL FAD PER SHARE1 23% INCREASE Covid Impact TRACK RECORD OF SUCCESS Attractive FAD Growth
Slide 20: Sun Belt Portfolio and Development Expertise Drive NAV Growth
20 NET ASSET VALUE APPRECIATION PER GREEN STREET1 TRACK RECORD OF SUCCESS Premier Sun Belt Portfolio Combined with Development Expertise Drives NAV Growth 13% -1% -14% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 CUZ Non-Gateway Peer Avg Gateway Peer Avg
Slide 21: Meet Our Executive Team
21 M. Colin Connolly President and Chief Executive Officer John S. McColl Executive Vice President, Development Gregg D. Adzema Executive Vice President and Chief Financial Officer Pamela F. Roper Executive Vice President, General Counsel and Corporate Secretary Richard Hickson Executive Vice Presid
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Slide 23: Atlanta Market Snapshot
23 Submarket Concentration2 Industry Concentration4 ATLANTA Market Snapshot Technology 26% Financial Services 21% Professional Services 10% Consumer Goods and Services 8% Healthcare 8% Real Estate 8% Other 7% Legal Services 5% Construction 4% Insurance 3% Buckhead 43% Midtown 34% Central Perimeter 1
Slide 24: Austin Market Snapshot
24 AUSTIN Market Snapshot 4.6MM Total Square Feet1 95% Leased1 $62.77 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Domain 57% CBD 34% Southwest 6% Northwest 3% Technology 37% Professional Services 19% Legal Services 13% Energy 12% Financial Services 9% Other 5% Healthcare 3%
Slide 25: Charlotte Market Snapshot
25 CHARLOTTE Market Snapshot 1.4MM Total Square Feet1 95% Leased1 $37.95 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 $40.55 Average Asking Rent3 South End 31% Uptown 69% Financial Services 32% Marketing 18%Legal Services 13% Consumer Goods and Services 12% Insurance 11% Oth
Slide 26: Dallas Market Snapshot
26 DALLAS Market Snapshot 89% Leased1 516K Total Square Feet1 $53.50 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Preston Center 26% Legacy 74% Other 3% Energy 60% Financial Services 22% Professional Services 9% Legal Services 6%
Slide 27: Phoenix Market Snapshot
27 PHOENIX Market Snapshot 90% Leased1 1.3MM Total Square Feet1 Submarket Concentration2 Industry Concentration4 Tempe 100% $48.00 Average Asking Rent3 Technology 36% Professional Services 25% Financial Services 18% Other 9% Consumer Goods and Services 4% Marketing 4% Real Estate 4%
Slide 28: Tampa Market Snapshot
28 96% Leased1 2.0MM Total Square Feet1 $44.45 Average Asking Rent3 TAMPA Market Snapshot Submarket Concentration2 Industry Concentration4 Westshore 82% CBD 18% Healthcare 31% Consumer Goods and Services 14% Legal Services 13% Technology 10% Financial Services 9% Professional Services 9% Insurance 8
Slide 29: Footnotes and Sources
29 Page 13 – Attractive Development Pipeline for Future Growth 1. Represents office leased percentage as of 30-Sep-2022 filings. 2. Cousins share of total estimated project costs per 30-Sep-2022 filings. Page 14 – Attractive Development Pipeline for Future Growth 1. Represents Company’s estimate of
Slide 30: Forward-Looking Statements
30 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, 2021, and the Quarterly Report
Slide 31: Contact Information
3344 Peachtree Road NE Suite 1800 Atlanta, GA 30326 cousins.comGregg Adzema Executive Vice President and Chief Financial Officer gadzema@cousins.com 404.407.1116 Roni Imbeaux Vice President, Finance and Investor Relations rimbeaux@cousins.com 404.407.1104
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