Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Q3 2024 Earnings Presentation
40 slides from Cousins Properties's earnings presentation, Oct 25, 2024
Slide 1: Supplemental Information
IIN@e DEI CACE cen eee PERT oe SUPPLEMENTAL INFORMATION
Slide 2: Table of Contents
TABLE OF CONTENTS Forward-Looking Statements 2 Earnings Release 4 Company Information 6 Consolidated Balance Sheets 8 Consolidated Statements of Operations 9 Key Performance Metrics 10 Funds From Operations - Summary 13 Funds From Operations - Detail 14 Portfolio Statistics 17 Same Property Performa
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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, 2023, a
Slide 4: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS The risks set forth above are not exhaustive. The Annual Report on Form 10-K for the year ended December 31, 2023, including Part 1, Item 1A. Risk Factors, includes additional factors that could adversely affect our business and financial performance. Moreover, we operate
Slide 5: Earnings Release
EARNINGS RELEASE COUSINS PROPERTIES REPORTS FIRST QUARTER 2024 RESULTS Raises Midpoint of Full Year 2024 FFO Guidance by $0.015 per share ATLANTA (April 25, 2024) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2024. “Our first quarter results
Slide 6: Earnings Release: Guidance
EARNINGS RELEASE Earnings Guidance Full year 2024 earnings guidance updated as follows: • Net income between $0.32 and $0.39 per share. • FFO between $2.60 and $2.67 per share. • The increase in FFO is primarily driven by higher parking revenues and termination fees. • Guidance does not include any
Slide 7: Company Information
COMPANY INFORMATION THE COMPANY Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A
Slide 8: Company Information
COMPANY INFORMATION COMPANY INFORMATION EQUITY RESEARCH COVERAGE (1) Corporate Headquarters Investor Relations Barclays BofA Securities BMO Capital 3344 Peachtree Road NE Roni Imbeaux Brendan Lynch Camille Bonnel John Kim Suite 1800 Vice President, Finance & 212.526.9428 416.369.2140 212.885.4115 At
Slide 9: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) March 31, 2024 December 31, 2023 Assets: Real estate assets: Operating properties, net of accumulated depreciation of $1,404,568 and $1,329,406 in 2024 $ 6,937,210 $ 6,775,093 and 2023, respectively Projects under develop
Slide 10: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited; in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Revenues: Rental property revenues $ 208,818 $ 200,076 Fee income 379 374 Other 44 2,278 209,241 202,728 Expenses: Rental property operating expenses 71,075 71,213 Reimbur
Slide 11: Key Performance Metrics
KEY PERFORMANCE METRICS (1) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Property Statistics Consolidated Operating Properties 34 34 34 34 34 34 34 Consolidated Rentable Square Feet (in thousands) 18,424 18,444 18,444 18,434 18,434 18,434 18,434 Unconsolidated Operating Properties 2 2 2 2
Slide 12: Key Performance Metrics
KEY PERFORMANCE METRICS (1) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Market Capitalization Common Stock Price Per Share $25.29 $21.38 $22.80 $20.37 $24.35 $24.35 $24.04 Common Stock/Units Outstanding (in thousands) 151,482 151,718 151,774 151,774 151,824 151,824 152,096 Equity Market C
Slide 13: Key Performance Metrics
KEY PERFORMANCE METRICS Total Rentable Square Feet Equity Market Capitalization Net Debt / Annualized EBITDAre 30,000 8,000 6.00 5.14 5.25 4.93 25,000 5.00 6,000 19,135 19,145 19,145 (in thousands) 20,000 4.00 ($ in millions) 3,831 3,697 3,656 15,000 4,000 3.00 10,000 2.00 2,000 5,000 1.00 0 0 0.00
Slide 14: Funds From Operations - Summary
FUNDS FROM OPERATIONS - SUMMARY (amounts in thousands, except per share amounts) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Net Income $ 167,445 $ 22,356 $ 23,077 $ 19,491 $ 18,892 $ 83,816 $ 13,451 Fee and Other Income (11,243) (2,788) (6,936) (690) (756) (11,170) (893) General and Admi
Slide 15: Funds From Operations - Detail
FUNDS FROM OPERATIONS - DETAIL (1) (amounts in thousands, except per share amounts) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st NOI Consolidated Properties The Domain (2) $ 68,704 $ 18,144 $ 18,466 $ 18,303 $ 18,440 $ 73,353 $ 18,355 Terminus (2) 32,908 8,097 8,442 8,596 8,669 33,804 8,08
Slide 16: Funds From Operations - Detail
FUNDS FROM OPERATIONS - DETAIL (1) (amounts in thousands, except per share amounts) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Unconsolidated Properties (5) Medical Offices at Emory Hospital 4,531 1,054 1,203 1,161 1,170 4,588 1,116 120 West Trinity (2) 1,302 326 338 389 194 1,247 319 Ot
Slide 17: Funds From Operations - Detail
FUNDS FROM OPERATIONS - DETAIL (1) (amounts in thousands, except per share amounts) 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Reimbursed and Other Expenses Reimbursed Expenses (7) (2,024) (207) (159) (149) (93) (608) (140) Property Taxes and Other Land Holding Costs (5) (1,065) (323) (2
Slide 18: Portfolio Statistics
PORTFOLIO STATISTICS Weighted Average Rentable Financial Company's End of Period Leased Occupancy (2) Square Statement Ownership % of Total Property Level Debt Office Properties (1) Feet Presentation Interest 1Q24 4Q23 1Q24 4Q23 NOI / 1Q24 ($ in thousands) (3) Terminus (4) 1,226,000 Consolidated 100
Slide 19: Portfolio Statistics
PORTFOLIO STATISTICS Weighted Average Rentable Financial Company's End of Period Leased Occupancy (2) Square Statement Ownership % of Total Property Level Debt Office Properties (1) Feet Presentation Interest 1Q24 4Q23 1Q24 4Q23 NOI / 1Q24 ($ in thousands) (3) Legacy Union One 319,000 Consolidated 1
Slide 20: Portfolio NOI by Market
PORTFOLIO STATISTICS Portfolio NOI by Market First Quarter 2024 Charlotte Dallas 8.2% Nashville (1) 2.5% Phoenix Atlanta 8.0% 35.9% Houston Austin 4.1% 32.7% Tampa 8.6% (1) The Company owns 50% of Neuhoff, a mixed-use development in Nashville, through a joint venture. It has commenced initial operat
Slide 21: Same Property Performance
SAME PROPERTY PERFORMANCE (1) ($ in thousands) Three Months Ended March 31, 2024 2023 $ Change % Change Rental Property Revenues (2) $ 204,450 $ 196,929 $ 7,521 3.8 % Rental Property Operating Expenses (2) 69,589 70,406 (817) (1.2)% Same Property Net Operating Income $ 134,861 $ 126,523 $ 8,338 6.6
Slide 22: Office Leasing Activity
OFFICE LEASING ACTIVITY Three Months Ended March 31, 2024 New Renewal Expansion Total Gross leased square feet (1) 462,076 Less exclusions (2) (58,422) Net leased square feet 187,938 117,165 98,551 403,654 Number of transactions 17 12 8 37 Lease term in years (3) 8.0 4.6 8.5 7.1 Net effective rent c
Slide 23: Office Lease Expirations
OFFICE LEASE EXPIRATIONS Lease Expirations by Year (1) Annual % of Annual Annual Square Feet % of Leased Contractual Rent Contractual Contractual Year of Expiration Expiring Space ($ in thousands) (2) Rent Rent/Sq. Ft. 2024 637,715 3.8 % $ 27,082 3.1 % $ 42.47 2025 1,657,835 10.0 % 73,933 8.5 % 44.6
Slide 24: Top 20 Office Tenants
TOP 20 OFFICE TENANTS Company's Share of Percentage of Weighted Number Number Company's Annualized Company's Average of of Share of Rent Share of Remaining Properties Markets Square ($ in thousands) Annualized Lease Term Tenant (1) Occupied Occupied Footage (2) Rent (Years) 1 Amazon 5 3 1,296,397 $
Slide 25: Tenant Industry Diversification
TENANT INDUSTRY DIVERSIFICATION Percentage of Company's Share of Annualized Rent (1) Financial 14.8% Technology 27.5% Professional Services 10.2% Construction/Design 2.0% Marketing/Media/Telecom 2.4% Other 3.5% Legal 8.7% Insurance 3.5% Health Care 5.9% Energy 7.7% Real Estate 6.1% Consumer Goods &
Slide 26: Investment Activity: Acquisitions and Developments
INVESTMENT ACTIVITY Completed Operating Property Acquisitions Gross Purchase Company's Ownership Price Property Type Market Interest Timing Square Feet ($ in thousands) (1) 2022 Avalon (2) Office Atlanta 100% 2Q 480,000 $ 43,400 2021 725 Ponce Office Atlanta 100% 3Q 372,000 300,200 Heights Union Off
Slide 27: Investment Activity: Dispositions
INVESTMENT ACTIVITY Completed Operating Property Dispositions Company's Ownership Gross Sales Price Property Type Market Interest Timing Square Feet ($ in thousands) 2022 Carolina Square Mixed Charlotte 50% 3Q 468,000 $ 105,000 (1) 2021 Burnett Plaza Office Fort Worth 100% 2Q 1,023,000 137,500 One S
Slide 28: Development Pipeline
DEVELOPMENT PIPELINE (1) Company's Company's Share Share of Project Cost of Project Cost Company's Estimated Project Estimated Incurred to Incurred to Date Ownership Construction Square Cost (1) (2) Project Cost (2) Date (2) (2) Percent Initial Estimated Project Type Market Interest Start Date Feet/
Slide 29: Land Inventory
LAND INVENTORY Company's Total Ownership Financial Statement Developable Land Cost Basis of Land Market Interest Presentation (Acres) ($ in thousands) 3354/3356 Peachtree Atlanta 95% Consolidated 3.2 715 Ponce Atlanta 50% Unconsolidated 1.0 887 West Peachtree Atlanta 100% Consolidated 1.6 Domain Poi
Slide 30: Debt Schedule
DEBT SCHEDULE (1) Company's Share of Debt Maturities and Principal Payments ($ in thousands) Company's Rate at Deferred Ownership End of Maturity Total Loan Description (Interest Rate Base, if not fixed) Interest Quarter Date (2) 2024 2025 2026 2027 2028 Thereafter Principal Costs Total Consolidated
Slide 31: Debt Schedule: Maturity Schedule
DEBT SCHEDULE (1) Debt Maturity Schedule as of March 31, 2024 (2) $1,000,000 $917,200 $900,000 Unsecured $800,000 Senior Notes $225 $685,561 $700,000 Construction Loan (7) $600,000 ($ in thousands) $120 Credit Facility $292 $500,000 Mortgages $215 $400,000 Mortgage $71 $300,000 $275,000 Term Loan $2
Slide 32: Debt Schedule: Floating and Fixed Rate Analysis
DEBT SCHEDULE (1) Floating and Fixed Rate Debt Analysis Total Principal Total Debt Weighted Average Weighted Average ($ in thousands) (%) Interest Rate Maturity (Years) (2) Floating Rate Debt $ 412,602 15 % 7.03 % 2.9 Fixed Rate Debt 2,316,354 85 % 4.62 % 3.5 Total Debt $ 2,728,956 100 % 4.99 % 3.4
Slide 33: Joint Venture Information
JOINT VENTURE INFORMATION (1) Joint Venture Property Cash Flows to Cousins (2) Options Consolidated: HICO 100 Mill LLC 100 Mill 90% of cash flows until return of Cousins can trigger a sale process, subject to a right of contributed capital to partners; first offer that can be exercised by partner. p
Slide 34: Non-GAAP Calculations and Reconciliations
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st FFO and EBITDAre Net income available to common stockholders $ 166,793 $ 22,196 $ 22,621 $ 19,361 $ 18,785 $ 82,963 $ 13,288 Depreciation and amortization of real estate assets: Cons
Slide 35: Non-GAAP Calculations and Reconciliations
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Credit Ratios Debt (1) 2,424,004 2,544,956 2,548,073 2,559,871 2,608,675 2,608,675 2,723,978 Less: Cash and Cash Equivalents (5,145) (3,585) (8,031) (6,926) (6,047) (6,047) (5,452) L
Slide 36: Non-GAAP Calculations and Reconciliations
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS 2022 2023 1st 2023 2nd 2023 3rd 2023 4th 2023 2024 1st Net income available to common stockholders $ 166,793 $ 22,196 $ 22,621 $ 19,361 $ 18,785 $ 82,963 $ 13,288 Depreciation and amortization of real estate assets 298,162 75,892 80,327
Slide 37: Non-GAAP Calculations and Reconciliations: Funds From Operations
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS FUNDS FROM OPERATIONS ($ in thousands, except per share amounts) Three Months Ended March 31, 2024 2023 Weighted Weighted Average Per Average Per Common Share Common Share Dollars Shares Amount Dollars Shares Amount Net Income Available
Slide 38: Non-GAAP Calculations and Reconciliations: Net Operating Income
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS ($ in thousands) Three Months Ended Net Operating Income March 31, 2024 March 31, 2023 Net income $ 13,451 $ 22,356 Net operating income from unconsolidated joint ventures 1,352 1,409 Fee income (379) (374) Termination fee income (470) (
Slide 39: Reconciliation of 2024 Projected FFO
NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS RECONCILIATION OF 2024 PROJECTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO 2024 PROJECTED FFO Full Year 2024 Guidance ($ in thousands, except per share amounts) Low High Per Share Per Share Dollars Amount (1) Dollars Amount (1) Net
Slide 40: Non-GAAP Financial Measures - Definitions
NON-GAAP FINANCIAL MEASURES - DEFINITIONS The Company uses non-GAAP financial measures in its filings and other public “Net Debt” represents the Company's consolidated debt plus the Company's disclosures. The following lists non-GAAP financial measures that the Company share of unconsolidated debt,