Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Investor Presentation (November 2020)
28 slides from Cousins Properties's investor presentation, Nov 17, 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION November 2020
Slide 2: Rent Collections Update
RENT COLLECTIONS UPDATE October Office Rent Collections of 98%1 October Rent Collections October Rent Collections by Industry 100% 99% 98% 100% 90% 100% 91% 80% 80% 70% 68% 60% 60% 40% 50% 40% 20% 30% 0% 20% 10% 0% Office Retail Total 1
Slide 3: Cousins at a Glance
COUSINS AT A GLANCE Preeminent Sun Belt Office REIT NOI By Market4 13 6 36 8 1.9MM 4 26 7 SF1 $1 DEVELOPMENT Billion PIPELINE 4.2x OF LIQUIDITY1 82% NET DEBT / 3 2002 EBITDA1 Leased AVERAGE YEAR 93.6% BUILT 19.4M LEASED2 SF1 25
Slide 4: Why Cousins?
WHY COUSINS? RESILIENT MARKET FUNDAMENTALS PREMIER SUN BELT PORTFOLIO COMPELLING GROWTH OPPORTUNITIES SIMPLE STRONG BALANCE SHEET 3
Slide 5: Resilient Market Fundamentals: Two Powerful Long-Term Trends
RESILIENT MARKET FUNDAMENTALS Cousins is Positioned at the Intersection of Two Powerful Long-Term Trends SUNBELT MIGRATION FLIGHT TO QUALITY Pre-Covid Net Migration1 Average Annual Demand Growth2 July 2018 - July 2019 3.0% 2.5% 2.1% New York, NY 2.0% 1.8% 1.7% Chicago, IL -117K -56K 1.5% 1.1% Charlo
Slide 6: Resilient Market Fundamentals: Solid Rent Growth and Absorption
RESILIENT MARKET FUNDAMENTALS Solid Rent Growth and Absorption Annual Rent Growth 3Q Year Over Year1 1.8% 0.4% -0.5% Gateway Average U.S. Average Annual Net Absorption as a % of Total Inventory Last 12 Months2 1.4% 0.7% 0.3% Gateway Average U.S. Average 5
Slide 7: Same Property NOI Growth Has Exceeded Peer Average
RESILIENT MARKET FUNDAMENTALS Same Property NOI Growth Has Exceeded Peer Average Over This Cycle Same Property Cash NOI Growth1 20.00% 15.00% 10.00% CUZ Avg = 6.0% 5.00% Office Avg = 3.1% 0.00% -5.00% CUZ Office Peers 6
Slide 8: Dominant Market Share in Highly-Amenitized Submarkets
PREMIER SUN BELT PORTFOLIO Dominant Market Share in Highly-Amenitized Submarkets Atlanta Operating Asset Development/Land Asset Buckhead 18% Class A Market Share1 Atlanta Midtown 12% Class A Market Share1 Austin CBD 17% Class A Market Share1 Austin The Domain 36% Class A Market Share1 Charlotte Upto
Slide 9: Commands Premium Rents in Our Markets
PREMIER SUN BELT PORTFOLIO Commands Premium Rents in Our Markets CLASS A ASKING RENT ($/SF)1 ATLANTA AUSTIN CHARLOTTE $59.11 $41.14 $37.95 $35.84 $47.40 $34.24 Total Market Cousins Portfolio Total Market Cousins Portfolio Total Market Cousins Portfolio DALLAS PHOENIX TAMPA $50.22 $44.63 $38.94 $33.5
Slide 10: Near-Term Lease Expirations In-Line with Peers
PREMIER SUN BELT PORTFOLIO Near-Term Lease Expirations In-Line with Peers Lease Expirations by Year1 40% 35% 30% 25% Avg = 22% 20% 19% 15% 10% 5% 0% KRC VNO PGRE CXP ESRT PDM BXP HIW CUZ CLI DEA SLG EQC BDN OFC HPP FSP CIO DEI OPI 2020 2021 2022 9
Slide 11: $53MM of Annualized Development NOI by Year-End 2022
COMPELLING GROWTH OPPORTUNITIES $53MM of Annualized Development NOI by Year-End 2022 CURRENT DEVELOPMENT PIPELINE 10000 120 WEST 300 100 Total / DOMAIN 12 DOMAIN 10 AVALON TRINITY COLORADO MILL Avg RSF 251K 352K 320K 300K 358K 287K 1.9MM % Leased2 75% 100% 100% 98% 87% 44% 82% 18 $53MM 16 Annualized
Slide 12: Attractive Land Bank Supports 4MM SF of Development
COMPELLING GROWTH OPPORTUNITIES Attractive Land Bank Supports 4MM SF1 of Additional New Development ATLANTA DALLAS 901 WEST LEGACY UNION 3354 PEACHTREE VICTORY CENTER PEACHTREE TWO / THREE MIDTOWN BUCKHEAD LEGACY UPTOWN 455K SF 560K SF 600K SF 460K SF AUSTIN TAMPA CORPORATE DOMAIN DOMAIN 14 & 15 DOM
Slide 13: In-Place Rents Remain Below Current Market Rents
COMPELLING GROWTH OPPORTUNITIES In-Place Rents Remain Below Current Market Rents Increase in 2nd Generation Cash Net Rent1 25.0% 20.0% 15.0% Avg = 10.0% 10.0% 5.0% 0.0% 12
Slide 14: Leverage Significantly Below Peers
SIMPLE STRONG BALANCE SHEET Leverage Significantly Below Peers Net Debt/EBITDA1 14.0x 12.0x 10.0x 8.0x Average = 7.2x 6.0x 4.2x 4.0x 2.0x 0.0x SLG VNO PGRE FSP CXP BXP OFC ESRT BDN KRC CIO OPI DEA ARE PDM HIW CUZ 13
Slide 15: Substantial Liquidity and Access to Capital Markets
SIMPLE STRONG BALANCE SHEET Substantial Liquidity and Access to Capital Markets CASH $37MM ENCUMBERED 22% $1.0 Billion Flexible 1 Liquidity Portfolio2 REVOLVER UNENCUMBERED 78% $1BN 14
Slide 16: 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
Slide 17: Appendix
APPENDIX
Slide 18: Atlanta Market Snapshot
ATLANTA Market Snapshot Buckhead 41% 7.2MM Total Square Feet1 Submarket 2 Concentration Central Perimeter 19% Midtown North Fulton 36% 4% 91% Transportation 4% Leased1 Insurance 5% Healthcare 6% Technology 26% Real Estate 6% Industry Legal Services Concentration 4 7% Consumer Goods and Services Fina
Slide 19: Austin Market Snapshot
AUSTIN Market Snapshot Domain 38% 4.0MM Total Square Feet1 Submarket Concentration 2 Southwest CBD 13% 46% Northwest 3% 95% Healthcare 1 3% Leased Energy 5% Other Technology 10% 28% Real Estate 9% Industry Concentration 4 Financial Services 9% $60.81 Legal Services 18% Professional 3 Services Averag
Slide 20: Charlotte Market Snapshot
CHARLOTTE Market Snapshot Uptown 87% 2.3MM Total Square Feet1 Submarket Concentration 2 South End 13% 90% Professional Services 2% Leased1 Insurance 6% Other 6% Consumer Goods and Services 9% Financial Industry Services 45% Concentration 4 Marketing 13% $37.95 Legal Services 3 19% Average Asking Ren
Slide 21: Dallas Market Snapshot
DALLAS Market Snapshot Legacy 65% 516K 1 Submarket Total Square Feet Concentration 2 Preston Center 35% 97% Leased1 Professional Services 6% Construction 6% Other 8% Financial Services 35% Industry 4 Government Concentration 15% $50.22 Energy 30% Average Asking Rent3 20
Slide 22: Phoenix Market Snapshot
PHOENIX Market Snapshot Tempe 100% 1.3MM 1 Submarket Total Square Feet Concentration 2 97% Leased1 Marketing 5% Real Estate 6% Consumer Professional Services Goods and 23% Services 7% Other 8% Industry Concentration 4 Insurance 9% Technology 22% $43.13 Financial Services 20% Average Asking Rent3 21
Slide 23: Tampa Market Snapshot
TAMPA Market Snapshot Westshore 100% 1.7MM Total Square Feet1 Submarket Concentration 2 94% Leased1 Other Insurance 6% 8% Healthcare 21% Financial Services 9% Industry 4 Consumer Concentration Goods and Technology Services 12% 17% $38.94 Professional Services 13% Legal Services 14% Average Asking Re
Slide 24: Definitions of Non-GAAP Measures
DEFINITIONS OF NON-GAAP MEASURES “NET OPERATING INCOME” (“NOI”) is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. Net Operating Income, which is rental property revenues less termination fees and rental property operating exp
Slide 25: Endnotes
ENDNOTES Page 1 – Rent Collections Update Page 10 – Compelling Growth Opportunities 1. As reported on October earnings conference call. 1. Represents actual Cousins’ share of NOI through 3Q20 and Cousins’ share of estimated NOI based on executed leases and other currently forecasted leasing for Page
Slide 26: 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 27: Contact Information
Gregg Adzema Roni Imbeaux cousins.com Executive Vice President and Chief Vice President, Finance and Investor Financial Officer 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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