Cousins Properties Incorporated · NYSE:CUZ
Cousins Properties — Merger or Acquisition (February 2013)
11 slides from Cousins Properties's merger presentation, Feb 8, 2013
Slide 1: Transaction Overview: Terminus and Post Oak Central
Transaction Overview: Terminus and Post Oak Central
Slide 2: Disclosure Regarding Forward-Looking Statements
2 Disclosure Regarding Forward-Looking Statements *** Certain matters discussed in this presentation are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk. These include, but are not limited to, availability and terms of capital an
Slide 3: Key Highlights
3 Key Highlights • Cousins acquired 100% interest in Post Oak Central and formed a 50%/50% joint venture with institutional investors advised by J.P. Morgan Asset Management (“JPM”) to own Terminus 100 and 200. • Consistent with Cousins’ strategy targeting trophy office towers in prime locations wit
Slide 4: Transaction Breakdown
4 Transaction Breakdown ____________________ *Cousins allocated Terminus 100 values as follows: $327 per square foot for office component; $256 per square foot for retail component. **Net purchase price of Terminus 200 was $267 per square foot after deducting credits for outstanding free rent. Prope
Slide 5: Post Oak Central: Transaction Overview
5 Post Oak Central: Transaction Overview • Scale provides attractive entry into Houston • Purchase Price $232.6 Million ($182/SF) ˗ 45% discount to replacement cost. ˗ Expected 2013 GAAP NOI yield of 7.5%. • Significant future development opportunity ˗ 2.1 acres of land on Post Oak Boulevard. ˗ One
Slide 6: Post Oak Central: Property Overview
6 Post Oak Central: Property Overview Market Houston (Galleria) Year Built 1975-1981 (3 buildings) RSF 1.3MM SF Class A Occupancy 92% Parking Ratio 3.5 per 1,000 Average Remaining Lease Term 5.5 Years Rents Approximately 20% below market Key Tenants Apache Corporation, Stewart Information Services,
Slide 7: Galleria Market Overview
7 Galleria Market Overview • 18MM RSF of office ‒ Class A vacancy: 8.3% • 4.9MM SF of retail ‒ 99% occupancy Under Contract for $278/SF 50% interest recently sold ~$265/SF
Slide 8: Terminus: Transaction Overview
8 Terminus: Transaction Overview • Reduced overall economic ownership of Terminus 100 and Terminus 200 from 65% to 50% ˗ Increased ownership interest in Terminus 200 @ $290/SF. Reduced ownership interest in Terminus 100 @ $320/SF. ˗ Venture assumed the existing $136 million loan on Terminus 100. ˗ V
Slide 9: Terminus 100: Property Overview
9 Terminus 100: Property Overview Market Atlanta (Buckhead) Year Built 2007 RSF 584K Office; 70K Retail Class AA Occupancy 94% Parking Ratio 2.00 per 1,000 Average Remaining Lease Term 5.2 Years Rents Approximately 5% - 10% above market Key Tenants CBRE, Morgan Stanley Smith Barney, Wells Fargo Amen
Slide 10: Terminus 200: Property Overview
10 Terminus 200: Property Overview Market Atlanta (Buckhead) Year Built 2009 RSF 566K Class AA Occupancy 88% Parking Ratio 2.00 per 1,000 Average Remaining Lease Term 9.3 Years Rents Market Key Tenants Greenberg Traurig, Kids II, North Highland Company Amenities Terminus Club, Café Street Sustainabi
Slide 11: Development/Value Creation Opportunity
11 Development/Value Creation Opportunity Competitive Advantage through Expertise and Relationships Acquire Below Replacement Cost Executing the Strategy Class-A Office TX, GA, NC Exceptional Urban Location Post Oak Central. Promenade. 2100 Ross. Post Oak Central Houston, TX 2013 Promenade Atlanta,
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