Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (June 2022)
31 slides from Cousins Properties's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
INVESTOR PRESENTATION June 2022
Slide 2: Why Cousins?
WHY COUSINS? • 100% Sun Belt / 100% Class A / 2004 average year built1 PREMIER • 32% of portfolio less than 5 years old or recently redeveloped1,2 SUN BELT PORTFOLIO • Cousins’ asking rents 9% higher than pre-pandemic levels and 25% higher than Class A average3,4 BENEFITING FROM • Migration to the S
Slide 3: Cousins at a Glance
COUSINS AT A GLANCE The Preeminent Sun Belt Office REIT NOI By Market1 Dallas Charlotte 3% Nashville2 10% Atlanta 37% Phoenix 7% Austin Houston 31% 3% Tampa 9% 5.1 MM SF land bank3 1.5 MM SF development 32% pipeline3 19.3 MM SF 2004 portfolio3 90.6% of portfolio less than leased3 average year built3
Slide 4: Premier Sun Belt Portfolio: Amenity-Rich Trophy Assets
PREMIER SUN BELT PORTFOLIO Amenity-Rich Trophy Assets in Leading Sun Belt Markets 725 PONCE HAYDEN FERRY HEIGHTS UNION Atlanta Phoenix Tampa THE RAILYARD SPRING & 8TH 300 COLORADO / COLORADO TOWER Charlotte Atlanta Austin 4
Slide 5: Premier Sun Belt Portfolio: Select Repositioning
PREMIER SUN BELT PORTFOLIO Select Repositioning of High-Quality Assets in Prime Locations Completed 4Q21 Estimated Completion 3Q22 PROMENADE TOWER BUCKHEAD PLAZA Midtown Atlanta Buckhead Atlanta Estimated Completion Estimated Completion 4Q22 4Q22 PROMENADE CENTRAL Midtown Atlanta 3350 PEACHTREE Buck
Slide 6: Command Premium Rents 25% Higher than Class A Average
PREMIER SUN BELT PORTFOLIO Command Premium Rents 25% Higher than Class A Average in Our Markets CLASS A ASKING RENT ($/SF)1 ATLANTA AUSTIN CHARLOTTE $62.77 $42.19 $42.75 $51.55 $36.08 $34.28 Total Market Total Market Total Market DALLAS PHOENIX TAMPA $54.22 $44.25 $43.11 $34.19 $32.87 $33.19 Total M
Slide 7: Sun Belt Migration Leading to Population and Job Growth
BENEFITING FROM POWERFUL OFFICE TRENDS Sun Belt Migration is Leading to Outsized Population and Job Growth SUN BELT MIGRATION RedFin’s Top Migration Markets 20211 1. Phoenix, AZ 2. Dallas, TX 3. Orlando, FL 4. Atlanta, GA Zillow’s 5. Tampa, FL Hottest Markets 6. Austin, TX 7. Las Vegas, NV 20222 8.
Slide 8: Corporate Relocations and Expansions Target Sun Belt
BENEFITING FROM POWERFUL OFFICE TRENDS Corporate Relocations and Expansions Target Sun Belt Markets 88
Slide 9: Flight to Quality Driving Demand for Newer Assets
BENEFITING FROM POWERFUL OFFICE TRENDS Flight to Quality is Driving Demand for Newer, Highly-Amenitized Assets FLIGHT TO QUALITY Leasing Activity vs. Inventory by Age1 Net Absorption by Age2 27.5% 2010-Present 2010 - Present 57 18.9% Building Age Building Age 72.5% Pre 2010 Pre 2010 -211 81.1% Share
Slide 10: Low Portfolio Risk as Large Move-outs Are Behind
POSITIONED FOR ORGANIC GROWTH Low Portfolio Risk as Large Move-outs are in the Rearview Mirror LEASE EXPIRATIONS BY YEAR1 45% 40% 35% 30% Avg = 27% 25% 20% 17% 15% 10% 5% 0% DEA CUZ BXP KRC PGRE ARE BDN SLG VNO ESRT HIW PDM NYC FSP OFC CIO OPI HPP EQC DEI 2022 2023 2024 10 10
Slide 11: Increase Occupancy from Contractual New Leasing
POSITIONED FOR ORGANIC GROWTH Increase Occupancy from Contractual New Leasing COUSINS’ PORTFOLIO OCCUPANCY vs LEASED1 96% 94% Average = 92.7% 93% 92% 93% Additional 92% 92% 92% upside 91% 91% 91% 90% 90% 91% 90% 90% 90% 90% 3.1% contractual 89% upside from recent 89% re-leasing wins 88% 87% 86% Rece
Slide 12: Continue to Roll-Up Existing Leases
POSITIONED FOR ORGANIC GROWTH Continue to Roll-Up Existing Leases Upon Expirations COUSINS’ INCREASE IN 2ND GENERATION CASH NET RENT1 25% 20% 15% Post-COVID Avg = 13.3% Avg = 10.7% 10% Peer Avg2 = 6.0% 5% 0% 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 1212
Slide 13: 1.5MM SF Active Developments Delivering Over Two Years
ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH 1.5MM SF Active Developments Delivering Over Next Two Years CURRENT DEVELOPMENT PIPELINE PHOENIX AUSTIN 287K SF 338K SF 90% Ownership 100% Ownership 92% Pre-Leased1 97% Pre-Leased1 100 MILL DOMAIN 9 $147MM $138MM CUZ Investment2 CUZ Investment2 NASHV
Slide 14: Land Bank Supports 5.1MM SF of New Development
ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH Land Bank Supports 5.1MM SF1 of Additional New Development ATLANTA AUSTIN 887 WEST 3354 715 DOMAIN DOMAIN PEACHTREE PEACHTREE PONCE CENTRAL POINT MIDTOWN BUCKHEAD MIDTOWN DOMAIN DOMAIN 420K SF 500K SF 200K SF 900K SF 600K SF CHARLOTTE DALLAS TAMPA SO
Slide 15: Opportunities to Grow in Domain Submarket of Austin
ATTRACTIVE DEVELOPMENT PIPELINE FOR FUTURE GROWTH Significant Opportunities to Grow in Domain Submarket of Austin Low-rise operating properties with up to 2M SF redevelopment potential Domain 3 & 4 Domain Central I Future Redevelopment Domain 7 Future Development Domain 4 Domain 3 Domain 8 Domain 9
Slide 16: Balance Sheet Primed for Opportunities
BALANCE SHEET PRIMED FOR OPPORTUNITIES Leverage Significantly Below Peers with Substantial Liquidity NET DEBT/EBITDA1 14.0x 12.0x $662MM Liquidity2 10.0x 8.0x Avg = 7.0x 6.0x 5.3x 4.0x 2.0x 0.0x SLG PGRE VNO HPP BXP FSP BDN OPI DEA OFC ESRT CIO KRC ARE PDM HIW CUZ 1616
Slide 17: Strong In-Place Rent Growth
TRACK RECORD OF SUCCESS Strong In-Place Rent Growth COUSINS’ IN-PLACE GROSS RENT PER SF1 $43.90 $44.00 $42.00 $40.00 30% INCREASE $38.00 $36.00 $34.00 $32.00 $30.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1717
Slide 18: Attractive FAD Growth
TRACK RECORD OF SUCCESS Attractive FAD Growth COUSINS’ ANNUAL FAD PER SHARE1 $2.00 $1.95 $1.90 23% INCREASE COVID $1.80 $1.82 Impact $1.76 $1.70 $1.67 $1.60 $1.58 $1.50 $1.40 $1.30 $1.20 $1.10 $1.00 2017 2018 2019 2020 2021 1818
Slide 19: Drives NAV Growth
TRACK RECORD OF SUCCESS Premier Sun Belt Portfolio Combined with Development Expertise Drives NAV Growth NET ASSET VALUE APPRECIATION PER GREEN STREET1 30% 26.8% 25% 20% 15% CUZ 10% 10.6% Non-Gateway Peer Avg 5% 0% Gateway Peer Avg -0.2% -5% -10% -15% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q1
Slide 20: Meet Our Executive Team
MEET OUR EXECUTIVE TEAM Stable, Experienced Leadership M. Colin Connolly Gregg D. Adzema President and Chief Executive Executive Vice President and Officer Chief Financial Officer Richard Hickson Pamela F. Roper Executive Vice President, Executive Vice President, General Operations Counsel and Corpo
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Slide 22: Atlanta Market Snapshot
ATLANTA Market Snapshot Buckhead 39% 8.2MM North Fulton 8% Submarket Central Perimeter Concentration2 Total Square Feet1 16% Midtown 37% 88% Insurance 3% Leased1 Construction 4% Legal Services Technology Other 5% 26% 6% Real Estate 7% Industry $42.19 Concentration4 Healthcare 8% Consumer Financial S
Slide 23: Austin Market Snapshot
AUSTIN Market Snapshot Northwest 3% 4.6MM Southwest 10% Domain 52% Submarket Concentration2 Total Square Feet1 CBD 35% 93% Real Estate 3% Leased1 Healthcare Energy 3% 5% Financial Services Technology 8% 35% Other Industry $62.77 12% Concentration4 Legal Services 14% Professional Average Asking Rent3
Slide 24: Charlotte Market Snapshot
CHARLOTTE Market Snapshot Uptown 69% Submarket 1.4MM Concentration2 Total Square Feet1 South End 31% 95% Professional Services Leased1 6% Other 8% Financial Services 32% Insurance 11% Industry $42.75 Concentration4 $37.95 Consumer Goods and Services 12% Marketing Average Asking Rent3 Average Asking
Slide 25: Dallas Market Snapshot
DALLAS Market Snapshot Legacy 71% Submarket 516K Concentration2 Total Square Feet1 Preston Center 29% 93% Leased1 Other Legal 3% Services Professional 6% Services 7% Financial Industry $54.22 Services Concentration4 26% Energy 58% Average Asking Rent3 25
Slide 26: Phoenix Market Snapshot
PHOENIX Market Snapshot Tempe 100% Submarket 1.3MM Concentration2 Total Square Feet1 92% Real Estate 4% Leased1 Marketing 4% Other Technology 8% 26% Consumer Goods and Services 8% Industry Concentration4 $44.25 Insurance 8% Professional Services Financial Services 23% Average Asking Rent3 19% 26
Slide 27: Tampa Market Snapshot
TAMPA Market Snapshot Westshore 86% Submarket 2.0MM Concentration2 Total Square Feet1 CBD 14% 93% Leased1 Other 6% Insurance 7% Financial Healthcare Services 33% 7% Industry $43.11 Professional Services Concentration4 9% Technology 11% Consumer Goods and Services Average Asking Rent3 Legal Services
Slide 28: Endnotes
ENDNOTES Page 2 – Why Cousins? Page 13 – Attractive Development Pipeline for Future Growth 1. As of 31-Mar-2022. 1. Represents office leased percentage as of 31-Mar-2022 filings. 2. See endnote 3 for Page 3. 2. Cousins share of total estimated project costs per 31-Mar-2022 filings. 3. See endnote 1
Slide 29: Cautionary Statement Regarding Forward-Looking Information
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 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
Slide 30: Gregg Adzema, Roni Imbeaux, cousins.com
Gregg Adzema Roni Imbeaux cousins.com Executive Vice President and Chief Financial Officer Vice President, Finance and Investor Relations 3344 Peachtree Road NE gadzema@cousins.com rimbeaux@cousins.com Suite 1800 404.407.1116 404.407.1104 Atlanta, GA 30326
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