Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (September 2021)
29 slides from Cousins Properties's investor presentation, Sep 21, 2021
Slide 1: September 2021
September 2021
Slide 2: Cousins at a Glance
2 5 COUSINS AT A GLANCE Preeminent Sun Belt Office REIT NOI By Market1 19.1 MM SF2 portfolio 2004 average year built 91.3% leased2 25% of portfolio less than 5 years old 1.7 MM SF2 development pipeline Dallas 3% Charlotte 12% Atlanta 39% Houston 4% Phoenix 7% Austin 28% Tampa 7%
Slide 3: Why Cousins?
3 RESILIENT MARKET FUNDAMENTALS COMPELLING GROWTH OPPORTUNITIES SIMPLE STRONG BALANCE SHEET PREMIER SUN BELT PORTFOLIO WHY COUSINS?
Slide 4: Resilient Market Fundamentals: Two Powerful Long-Term Trends
4 0.9% 1.9% 1.3% 1.3% 0.2% 0.6% 0.0% 0.0% GAINERS 1. Phoenix, AZ 2. Dallas, TX 3. Orlando, FL 4. Tampa, FL 5. Austin, TX 6. Las Vegas, NV 7. Atlanta, GA 8. Greenville, SC 9. Charlotte, NC 10. Knoxville, TN RESILIENT MARKET FUNDAMENTALS Cousins is Positioned at the Intersection of Two Powerful Long-T
Slide 5: Corporate Relocations and Expansions Target Sun Belt Markets
5 RESILIENT MARKET FUNDAMENTALS Corporate Relocations and Expansions Target Sun Belt Markets RECENT CORPORATE RELOCATIONS AND EXPANSIONS AUSTIN CHARLOTTE TAMPAPHOENIX ATLANTA DALLAS NASHVILLE
Slide 6: Durable Rent Growth and Absorption
6 RESILIENT MARKET FUNDAMENTALS Durable Rent Growth and Absorption MARKET RENT GROWTH 2Q21 year over year1 MARKET NET ABSORPTION / TOTAL INVENTORY Last 12 months2 Gateway Average U.S. Average Gateway Average U.S. Average -0.8% -2.7% -1.8% -1.5% -2.2% -1.9%
Slide 7: Persistent In-Place Rent Growth
7 RESILIENT MARKET FUNDAMENTALS Persistent In-Place Rent Growth COUSINS’ IN-PLACE GROSS RENT PER SF1 $36.41 $42.00 $35.00 $36.00 $37.00 $38.00 $39.00 $40.00 $41.00 $42.00 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 15% INCREASE
Slide 8: Dominant Market Share in Highly-Amenitized Submarkets
8 Austin THE DOMAIN Operating Asset Development/Land Asset PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets Atlanta MIDTOWN 13% Class A Market Share1 Austin CBD Atlanta BUCKHEAD 17% Class A Market Share1 40% Class A Market Share1 18% Class A Market Share1
Slide 9: Dominant Market Share in Highly-Amenitized Submarkets
9 Charlotte UPTOWN Tampa WESTSHORE Phoenix TEMPE Charlotte SOUTH END Operating Asset Development/Land Asset PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets 6% Class A Market Share1 22% Class A Market Share1 21% Class A Market Share1 15% Class A Market Share1
Slide 10: Commands Premium Rents in Our Markets
10 ATLANTA AUSTIN CHARLOTTE DALLAS PHOENIX TAMPA PREMIER SUN BELT PORTFOLIO Commands Premium Rents in Our Markets CLASS A ASKING RENT ($/SF)1 $34.36 $41.53 Total Market $32.39 $50.22 Total Market $31.85 $44.12 Total Market $33.13 $40.55 Total Market $35.27 $41.10 Total Market $48.43 $60.53 Total Mar
Slide 11: Manageable Near-Term Lease Expirations
11 PREMIER SUN BELT PORTFOLIO Manageable Near-Term Lease Expirations LEASE EXPIRATIONS BY YEAR1 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% BXP PGRE KRC DEA BDN ESRT CUZ PDM VNO FSP CXP HIW SLG OPI EQC HPP OFC DEI CIO 2021 2022 2023 Average = 24%
Slide 12: Current Development Pipeline
12 0 4 8 12 16 2Q21 2Q22 2Q24 2Q25 ($ M M ) RSF % Leased1 100 MILL 300 COLORADO DOMAIN 10 CURRENT DEVELOPMENT PIPELINE 287K 48% 369K 88% 300K 100% AUSTIN AUSTINPHOENIX COMPELLING GROWTH OPPORTUNITIES $63MM of Annualized Development NOI by 2Q25 QUARTERLY NOI2 $63MM Annualized DOMAIN 9NEUHOFF AUSTINNA
Slide 13: Attractive Land Bank Supports 5.1MM SF of Additional Development
13 DOMAIN POINT DOMAIN 600K SF LEGACY UNION TWO / THREE LEGACY 600K SF VICTORY CENTER UPTOWN 460K SF DALLAS MIDTOWN 390K SF 901 WEST PEACHTREE 3354 PEACHTREE BUCKHEAD 560K SF ATLANTA AUSTIN 715 PONCE MIDTOWN 200K SF DOMAIN 900K SF TAMPA CORPORATE CENTER V WESTSHORE 170K SF DOMAIN CENTRAL CHARLOTTE 3
Slide 14: Continue to Roll-Up Existing Leases Upon Expiration
14 COMPELLING GROWTH OPPORTUNITIES Continue to Roll-Up Existing Leases Upon Expiration INCREASE IN 2ND GENERATION CASH NET RENT1 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 Average = 10.1% Post-COVID Average = 12.7%
Slide 15: Leverage Significantly Below Peers
15 SIMPLE STRONG BALANCE SHEET Leverage Significantly Below Peers NET DEBT/EBITDA1 4.5x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x SLG PGRE CXP VNO BXP FSP OPI BDN DEA OFC KRC CIO ARE PDM ESRT HIW CUZ Average = 7.1x
Slide 16: Substantial Liquidity and Access to Capital Markets
16 $978 Million Liquidity1 Flexible Property Portfolio2 SIMPLE STRONG BALANCE SHEET Substantial Liquidity and Access to Capital Markets REVOLVER $968MM ENCUMBERED 21% UNENCUMBERED 79% CASH $10MM
Slide 17: Meet Our Executive Team
17 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
Slide 18: Appendix
X | PEND AP
Slide 19: Atlanta Market Snapshot
19 Submarket Concentration2 Industry Concentration4 ATLANTA Market Snapshot 7.9MM Total Square Feet1 88% Leased1 $41.53 Average Asking Rent3 Technology 25% Financial Services 19% Professional Services 11% Other 9% Consumer Goods and Services 9% Legal Services 7% Real Estate 7% Healthcare 6% Transpor
Slide 20: Austin Market Snapshot
20 AUSTIN Market Snapshot 4.4MM Total Square Feet1 94% Leased1 $60.53 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Technology 36% Professional Services 21% Legal Services 15% Other 9% Financial Services 8% Energy 6% Healthcare 3% Real Estate 2% Domain 46% CBD 39% Southwest 1
Slide 21: Charlotte Market Snapshot
21 Financial Services 40% Marketing 15% Legal Services 13% Consumer Goods and Services 11% Insurance 10% Other 6% Professional Services 5% CHARLOTTE Market Snapshot 1.7MM Total Square Feet1 96% Leased1 $37.95 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 $41.10 Average Asking
Slide 22: Dallas Market Snapshot
22 DALLAS Market Snapshot 94% Leased1 516K Total Square Feet1 $50.22 Average Asking Rent3 Submarket Concentration2 Industry Concentration4 Preston Center 34% Legacy 66% Energy 55% Financial Services 25% Professional Services 8% Other 6% Legal Services 6%
Slide 23: Phoenix Market Snapshot
23 PHOENIX Market Snapshot 92% Leased1 1.3MM Total Square Feet1 Submarket Concentration2 Industry Concentration4 Tempe 100% Technology 26% Professional Services 23%Financial Services 19% Insurance 8% Consumer Goods and Services 8% Other 8% Real Estate 4% Marketing 4% $44.12 Average Asking Rent3
Slide 24: Tampa Market Snapshot
24 94% Leased1 1.7MM Total Square Feet1 $40.55 Average Asking Rent3 TAMPA Market Snapshot Submarket Concentration2 Industry Concentration4 Westshore 100% Healthcare 23% Consumer Goods and Services 16% Legal Services 13% Technoology 13% Professional Services 13% Financial Services 9% Insurance 7% Oth
Slide 25: Net Operating Income (NOI) Definition
25 “NET OPERATING INCOME” (“NOI”) is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. NOI, which is rental property revenues (excluding termination fees) less rental property operating expenses, excludes certain components from
Slide 26: Footnotes
26 Page 12 – Compelling Growth Opportunities 1. Represents office leased percentage as of 30-Jun-2021.. 2. Represents actual share of Cousins’ NOI through 2Q21 and Cousins’ share of estimated NOI based on executed leases and other currently forecasted leasing for 3Q21 and beyond. See definition of N
Slide 27: Forward-Looking Statements
27 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, 2020 and the quarterly report o
Slide 28: 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
Slide 29: Slide 29
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