Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (September 2024)
39 slides from Cousins Properties's investor presentation, Sep 9, 2024
Slide 1: Investor Presentation September 2024
Slide 2: Why Cousins?
WHY COUSINS? PREMIER SUN BELT LIFESTYLE OFFICE PORTFOLIO BENEFITING FROM POWERFUL OFFICE TRENDS POSITIONED FOR ORGANIC GROWTH STRATEGIC CAPITAL ALLOCATION CREATES GROWTH OPPORTUNITIES BALANCE SHEET PRIMED FOR OPPORTUNITIES TRACK RECORD OF SUCCESS ©? Cousins 100% Sun Belt / 100% Class A / 2010 averag
Slide 3: Cousins at a Glance
COUSINS AT A GLANCE The Preeminent Sun Belt Office REIT NOI By Market! Bdliss Charlotte Nashville? 8%
Slide 4: Commodity Office Assets vs Lifestyle Office Assets
COMMODITY OFFICE ASSETS ✓ New or recently redeveloped properties that command premium rents and enjoy higher occupancy ✓ Located in the best markets and submarkets with close proximity to thriving and dynamic neighborhoods ✓ Highly-amenitized including on-site retail & food, activated outdoor space,
Slide 5: Premier Sun Belt Lifestyle Office Portfolio
Pere SUG eer re eee 7s
Slide 6: Outdoor Spaces to Collaborate and Enhance the Work Experience
PREMIER SUN BELT LIFESTYLE OFFICE PORTFOLIO Outdoor Spaces to Collaborate and Enhance the Work Experience ® cousins 6
Slide 7: State-of-the-Art Fitness and Wellness Centers
PREMIER SUN BELT LIFESTYLE OFFICE PORTFOLIO State-of-the-Art Fitness and Wellness Centers ® cousins 7
Slide 8: On-Site Retail and Food and Beverage Amenities
PREMIER SUN BELT LIFESTYLE OFFICE PORTFOLIO On-Site Retail and Food and Beverage Amenities that Promote Live-Work-Play =—aSee |e ia Za) ® cousins 8
Slide 9: Recently Completed and In-Process Redevelopments
RECENTLY COMPLETED REDEVELOPMENTS IN-PROCESS REDEVELOPMENT
Slide 10: Bank of America Analysis of Portfolio Quality
BANK OF AMERICA ANALYSIS OF PORTFOLIO QUALITY1
Slide 11: Class A Asking Rent ($/SF)
CLASS A ASKING RENT ($/SF)1,2
Slide 12: Benefiting from Powerful Office Trends
BENEFITING FROM POWERFUL OFFICE TRENDS Cousins is Well Positioned to Navigate the Current Office Sector Environment Theme Flight to quality Population migration Observation @ Flight to quality is driving demand for newer, highly-amenitized assets @ More than 60% of U.S. office vacancy is concentrate
Slide 13: Flight to Quality
BENEFITING FROM POWERFUL OFFICE TRENDS FLIGHT TO QUALITY 2010-Present 2000s 1990s 1980s Year of Delivery 1970s 1960s Before 1960 -150 -100 Net Absorption Since COVID Onset! Square Feet (MM’s) 50 64% CUZ NOI 100 150 @® cousins 13
Slide 14: Majority of Vacancy Concentrated within a Small Subset of Office Assets
BENEFITING FROM POWERFUL OFFICE TRENDS Majority of Vacancy Concentrated within a Small Subset of Office Assets FLIGHT TO QUALITY? 18% as oo = 28 se Se 2 & 8 oo ° G 8 x“ ao ie cs 38 8 a8 More than of wy “7 gE & - 4 pe 23 $ 3S office vacancy is 6 = 5 8 ; . as oo 6 Bo concentrated in 14% 8 8 a3 = 5 2 b
Slide 15: Sun Belt Migration Leading to Outsized Population and Job Growth
BENEFITING FROM POWERFUL OFFICE TRENDS Sun Belt Migration is Leading to Outsized Population and Job Growth SUN BELT MIGRATION man. Domestic Net Migration 2023} - EET Winston-Salem Miami Raleigh Jacksonville Baltimore Boston. | Austin Triad Atlanta Houston Richmond Nashville Philadelphia Florida *19.
Slide 16: Quarterly U.S. Leasing Activity
QUARTERLY U.S. LEASING ACTIVITY1 (MM SF)
Slide 17: U.S. Office Inventory
U.S. OFFICE INVENTORY1 (MM SF)
Slide 18: Modest Lease Expirations Well Below Office Sector Average
POSITIONED FOR ORGANIC GROWTH Modest Lease Expirations Well Below Office Sector Average LEASE EXPIRATIONS BY YEAR* 50% 40% 30% 20% 10% 0% @ cousins 18
Slide 19: Cousins Portfolio Occupancy vs Leased
COUSINS PORTFOLIO OCCUPANCY vs LEASED1
Slide 20: Cousins Increase in 2nd Generation Cash Net Rent
COUSINS INCREASE IN 2ND GENERATION CASH NET RENT1
Slide 21: Recycled Over $1 Billion of Older Assets during COVID Pandemic
STRATEGIC CAPITAL ALLOCATION CREATES GROWTH OPPORTUNITES Recycled Over $1 Billion of Older Assets during COVID Pandemic ASSET RECYCLING? MM's— $1,000 $800 Total Dev. Starts $567MM Avg Initial Rev. $60 Recognition 3Q23 $400 $200 $o -$200 -$400 -$600 -$800 2020 2021 @ cousins 21
Slide 22: Current Development Pipeline
CURRENT DEVELOPMENT PIPELINE AUSTIN NASHVILLE
Slide 23: Land Bank Supports 5.1MM SF of Additional New Development
STRATEGIC CAPITAL ALLOCATION CREATES GROWTH OPPORTUNITES Lar ank Supports 51MM SF" of Additional New Developrr ATLANTA - AUSTIN 887 WEST 3354 DO PEACHTREE § PEACHTREE MIDTOWN BUCKHEAD MIDTOWN : DOMAIN DOMAIN 700K SF 740K SF 200K SF 900K SF 600K SF DALLAS TAMPA LEGACY UNION TWO / THREE LEGACY 600K SF
Slide 24: Balance Sheet Primed for Opportunities
BALANCE SHEET PRIMED FOR OPPORTUNITIES Low Leverage with Substantial Liquidity NET DEBT/EBITDA? 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x SLG HPP PGRE VNO BDN OPI BXP DEA clo PDM FSP KRC CDP. HIW ESRT @ Cousins 24
Slide 25: Cousins' Net Operating Income
COUSINS’ NET OPERATING INCOME1
Slide 26: Office REIT Common Dividend Growth and FAD Payout Ratio
OFFICE REIT COMMON DIVIDEND GROWTH (2019 vs CURRENT)1 COUSINS’ FAD PAYOUT RATIO2
Slide 27: Net Asset Value Appreciation per Green Street
NET ASSET VALUE APPRECIATION PER GREEN STREET1
Slide 28: Meet Our Executive Team
MEET OUR EXECUTIVE TEAM Stable, Experienced Leadership D. Adzema | John S. McColl Vice President lopment @ cousins 28
Slide 29: Appendix
Slide 30: Atlanta Market Snapshot
eras Market Snapshot 8000 AVALON —® oe, °—~ norTHPARK Ay MERIDIAN MARK 3350 PEACHTREE , 3348 PEACHTREE ~~ BUCKHEAD PLAZA an a “le JS 3344 PEACHTREE oS TERMINUS PROMENADE TOWER - o PROSCENIUM. PROMENADE 6% SPRING & 8TH CENTRAL oD rw @120 WEST TRINITY @. ©~ 725 PONCE MEDICAL OFFICES AT EMORY di <e ® c
Slide 31: Austin Market Snapshot
AUSTIN Market Snapshot 8 RESEARCH PARK PLAZA V o 7 DOMAIN 10 —<g@ DOMAIN POINT DOMAIN 11 —@, ete * Domain 12 Tee DOMAIN 2 gf SDOMAIN 8 DOMAINS —°? © DOMAIN7 DOMAIN 4 5S a 8 Ms “ © ; ff 8 300 COLORADO. =) @~ — COLORADO TOWER @Q ONE ELEVEN CONGRESS "Car @ SAN JACINTO CENTER ™ THE TERRACE ® cousins Sub
Slide 32: Tampa Market Snapshot
TAMPA Market Snapshot i) © » The Pomre 7) rd ® cousins eis UO o Submarket Concentration” Industry Concentration4 32
Slide 33: Phoenix Market Snapshot
PHOENIX Market Snapshot HAYDEN FERRY / Rio Salado Phy 1 WEST RIO ———® 100 MILL Ward St ony ay Esthst ® cousins ny ht N SiR TEMPE GATEWAY Tempe Submarket Concentration” Other bia Industry Concentration4 33
Slide 34: Charlotte Market Snapshot
CHARLOTTE Marke THE RAILYARD. ® cousins 10 t &a a @—— 550 SOUTH @ Submarket Concentration? Industry Concentration* 34
Slide 35: Dallas Market Snapshot
DALLAS Market Snapshot *S LEGACY UNION Submarket Concentration? Dallas North Tollway di S 5950 SHERRY LANE [sss] Industry Concentration4 © a @ a ® cousins 35
Slide 36: Endnotes
ENDNOTES Page 2- Why Cousins? 1. As of 30-Jun-2024, 2. Based on 2Q24 NOI. Includes ten assets that have undergone redevelopment in past six years. 3. Based on CoStar average asking rents for same pool of Cousins assets from 49 to 2024 4, Source: CoStar. Represents weighted average gross rental rates
Slide 37: 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 38: 3344 Peachtree Road NE Suite 1800 Atlanta, GA 30326 Executive Vice President and Chief
3344 Peachtree Road NE Suite 1800 Atlanta, GA 30326 Executive Vice President and Chief Financial Officer gadzema@cousins.com 404.407.1116 Vice President, Finance and Investor Relations rimbeaux@cousins.com 404.407.1104
Slide 39: Slide 39
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