COUSINS PROPERTIES INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - 8-K - COUSINS PROPERTIES INC	form8-k3q18.htm



TABLE OF CONTENTS



Forward-Looking Statements	3
Earnings Release	4
Condensed Consolidated Balance Sheets	6
Condensed Consolidated Statements of Operations	7
Key Performance Metrics	8
Funds From Operations - Summary	11
Funds From Operations - Detail	12
Portfolio Statistics	15
Same Property Performance	17
Office Leasing Activity	18
Office Lease Expirations	19
Top 20 Office Tenants	21
Tenant Industry Diversification	22
Investment Activity	23
Development Pipeline	25
Land Inventory	26
Debt Schedule	27
Non-GAAP Financial Measures - Calculations and Reconciliations	30
Non-GAAP Financial Measures - Discussion	35



Cousins Properties		Q3 2018 Supplemental Information



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, 2017 and in the Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2018. These forward-looking statements include information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as, our 2018 guidance and underlying assumptions, business and financial strategy, future financings, future acquisitions and dispositions of land (including ground leases), future acquisitions and dispositions of operating assets, future development and redevelopment opportunities, future fee development opportunities, future issuances and repurchases of common or preferred stock, future distributions, future projected capital expenditures, future changes in interest rates, market and industry tends, and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to creating value for stockholders.

Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following: the availability and terms of capital, the ability to refinance or repay indebtedness as it matures, the failure of purchase, sale, or other contracts to ultimately close, the failure to achieve anticipated benefits from acquisitions, investments, or dispositions, the potential dilutive effect of common stock or operating partnership unit issuances, the availability of buyers and pricing with respect to the disposition of assets, risks and uncertainties related to national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Charlotte, Austin, Phoenix, and Tampa where we have high concentrations of our lease revenue, changes to our strategy with regard to non-core holdings that require impairment losses to be recognized, leasing risks, including the ability to obtain new tenants or renew expiring tenants, the ability to lease newly developed and/or recently acquired space, and the risk of declining leasing rates, the adverse change in the financial condition of one or more of our major tenants, volatility in interest rates and insurance rates, competition from other developers or investors, the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk), changes in senior management and the loss of key personnel, the potential liability for uninsured losses, condemnation, or environmental issues, the potential liability for a failure to meet regulatory requirements, the financial condition and liquidity of, or disputes with, joint venture partners, any failure to comply with debt covenants under credit agreements, any failure to continue to qualify for taxation as a real estate investment trust and meet regulatory requirements, potential changes to state, local, or federal regulations applicable to our business, material changes in the dividend rates or the ability to pay dividends on common shares or other securities, potential changes to the tax laws and accounting standards impacting REITs and real estate in general, and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by the Company.

The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information, or otherwise, except as required under U.S. federal securities laws.



Cousins Properties	3	Q3 2018 Supplemental Information



EARNINGS RELEASE

COUSINS PROPERTIES REPORTS THIRD QUARTER 2018 RESULTS

Third Quarter Highlights


•	Net income available to common stockholders was $0.05 per share.


•	Funds From Operations was $0.16 per share.


•	Same property net operating income on a cash-basis increased 4.4%.


•	Second generation net rent per square foot on a cash-basis increased 7.6%.


•	Executed 485,598 square feet of office leases.


•	Increased the size of 300 Colorado, a new office development in the Austin CBD, by two floors bringing the total to 358,000 square feet.


•	In October 2018, commenced operations at 858 Spring Street, Phase II of NCR's world headquarters in Midtown Atlanta.

ATLANTA (October 24, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter ended September 30, 2018.

Financial Results

Net income available to common stockholders was $19.5 million, or $0.05 per share, for the third quarter of 2018, compared with $12.1 million, or $0.03 per share, for the third quarter of 2017. Net Income available to common stockholders was $56.8 million, or $0.14 per share, for the nine months ended September 30, 2018, compared with $184.9 million, or $0.45 per share, for the nine months ended September 30, 2017. In the second quarter of 2017, the Company recognized a net gain of $119.8 million on the sale of the American Cancer Society Center in Atlanta.

Funds From Operations ("FFO") was $67.5 million, or $0.16 per share, for the third quarter of 2018 compared with $62.3 million, or $0.15 per share, for the third quarter of 2017. FFO was $196.7 million, or $0.46 per share, for the nine months ended September 30, 2018, compared to $195.7 million, or $0.46 per share, for the nine months ended September 30, 2017.

2018 Guidance

Based on third quarter 2018 results, the Company has raised and narrowed its full year 2018 net income guidance from $0.15 to $0.19 per share to $0.16 to $0.19 per share. The Company has also raised and narrowed its full year 2018 FFO guidance from $0.59 to $0.63 per share to $0.60 to $0.63 per share.

The Company leaves unchanged the previously provided assumptions of its 2018 net income and FFO guidance, except for the following update:


•	General and administrative expenses, net of capitalized salaries of $23.5 million to $25.5 million, down from the previous range of $25.5 million to $27.5 million, due to a decrease in long-term incentive compensation based on the Company's stock performance.



Cousins Properties	4	Q3 2018 Supplemental Information



EARNINGS RELEASE

A reconciliation of projected net income per share to projected FFO per share is provided as follows:



	Full Year 2018 Range
	Low		High
Net income per share	$	0.16	$	0.19
Add: Real estate depreciation and amortization	0.44		0.44
Funds From Operations per share	$	0.60	$	0.63

The Company's guidance is provided for information purposes based on current plans and assumptions and is subject to change.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, October 25, 2018, to discuss the results of the quarter ended September 30, 2018. The number to call for this interactive teleconference is (877) 247-1056. The live webcast of this call can be accessed on the Company's website, www.cousins.com, through the “Cousins Properties Third Quarter Conference Call” link on the Investor Relations page.

A replay of the conference call will be available for seven days by dialing (877) 344-7529 and entering the passcode 10124642. The playback can also be accessed on the Company's website.

Acting through its operating partnership Cousins Properties, LP, Cousins Properties is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use properties in Sunbelt markets.



Cousins Properties	5	Q3 2018 Supplemental Information



CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	September 30, 2018			December 31, 2017
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $384,097 and $275,977 in 2018 and 2017, respectively	$	3,499,741		$	3,332,619
Projects under development	128,580			280,982
Land	4,221			4,221
	3,632,542			3,617,822

Cash and cash equivalents	82,706			148,929
Restricted cash	419			56,816
Notes and accounts receivable, net of allowance for doubtful accounts of $456 and $535 in 2018 and 2017, respectively	10,400			14,420
Deferred rents receivable	76,494			58,158
Investment in unconsolidated joint ventures	154,070			101,414
Intangible assets, net	155,025			186,206
Other assets	31,943			20,854
Total assets	$	4,143,599		$	4,204,619
Liabilities:
Notes payable	$	1,065,012		$	1,093,228
Accounts payable and accrued expenses	114,229			137,909
Deferred income	40,035			37,383
Intangible liabilities, net of accumulated amortization of $39,332 and $28,960 in 2018 and 2017, respectively	60,082			70,454
Other liabilities	39,786			40,534
Total liabilities	1,319,144			1,379,508
Commitments and contingencies
Equity:
Stockholders' investment:
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2018 and 2017	6,867			6,867
Common stock, $1 par value, 700,000,000 shares authorized, 430,724,520 and 430,349,620 shares issued in 2018 and 2017, respectively	430,725			430,350
Additional paid-in capital	3,605,617			3,604,776
Treasury stock at cost, 10,339,735 and 10,329,082 shares in 2018 and 2017, respectively	(148,473		)	(148,373		)
Distributions in excess of cumulative net income	(1,124,518		)	(1,121,647		)
Total stockholders' investment	2,770,218			2,771,973
Nonredeemable noncontrolling interests	54,237			53,138
Total equity	2,824,455			2,825,111
Total liabilities and equity	$	4,143,599		$	4,204,619



Cousins Properties	6	Q3 2018 Supplemental Information



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Rental property revenues	$	115,443		$	109,569		$	342,489		$	336,093
Fee income	2,519			2,597			7,211			6,387
Other	744			993			2,836			9,593
	118,706			113,159			352,536			352,073
Expenses:
Rental property operating expenses	41,579			40,688			122,501			123,715
Reimbursed expenses	955			895			2,757			2,667
General and administrative expenses	3,913			7,193			18,793			21,993
Interest expense	9,551			7,587			29,043			25,851
Depreciation and amortization	45,068			47,622			135,836			152,546
Acquisition and transaction costs	—			(677		)	228			1,499
Other	93			423			457			1,063
	101,159			103,731			309,615			329,334
Gain on extinguishment of debt	93			429			8			2,258
Income from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties	17,640			9,857			42,929			24,997
Income from unconsolidated joint ventures	2,252			2,461			10,173			43,362
Income from continuing operations before gain (loss) on sale of investment properties	19,892			12,318			53,102			68,359
Gain (loss) on sale of investment properties	(33		)	(33		)	4,912			119,729
Net Income	19,859			12,285			58,014			188,088
Net income attributable to noncontrolling interests	(374		)	(218		)	(1,210		)	(3,181		)
Net income available to common stockholders	$	19,485		$	12,067		$	56,804		$	184,907
Net income per common share — basic and diluted	$	0.05		$	0.03		$	0.14		$	0.45
Weighted average shares — basic	420,385			419,998			420,279			414,123
Weighted average shares — diluted	427,520			427,300			427,472			421,954



Cousins Properties	7	Q3 2018 Supplemental Information



KEY PERFORMANCE METRICS



	2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017		2018 1st		2018 2nd		2018 3rd		2018 YTD
Property Statistics
Consolidated Operating Properties	24		25		25		25		22		22		23		23		23		23
Consolidated Rentable Square Feet (in thousands)	13,024		13,249		12,477		12,466		11,428		11,428		11,936		11,944		11,944		11,944
Unconsolidated Operating Properties	7		6		4		5		4		4		4		4		4		4
Unconsolidated Rentable Square Feet (in thousands)	3,999		3,774		2,988		3,456		3,113		3,113		3,113		3,113		3,113		3,113
Total Operating Properties	31		31		29		30		26		26		27		27		27		27
Total Rentable Square Feet (in thousands)	17,023		17,023		15,465		15,922		14,541		14,541		15,049		15,057		15,057		15,057

Office Leasing Activity (1)
Net Leased during the Period (square feet in thousands)	2,354		571		341		335		943		2,190		330		328		486		1,143
Net Rent (per square foot)	$24.52		$26.10		$28.58		$26.57		$32.73		$29.41		$33.35		$32.40		$28.46		$31.00
Free rent (per square foot)	(1.26)		(1.21)		(0.91)		(0.83)		(0.39)		(0.75)		(0.55)		(1.00)		(0.94)		(0.84)
Leasing commissions (per square foot) (2)	(1.78)		(1.93)		(2.78)		(2.32)		(2.40)		(2.32)		(2.67)		(2.49)		(2.40)		(2.50)
Tenant improvements (per square foot)	(3.91)		(4.78)		(4.66)		(3.46)		(4.49)		(4.43)		(3.07)		(4.50)		(4.29)		(4.00)
Net Effective Rent (per square foot)	$17.57		$18.18		$20.23		$19.96		$25.45		$21.91		$27.06		$24.41		$20.83		$23.66
Change in Second Generation Net Rent	20.0	%	15.8	%	28.5	%	16.9	%	19.7	%	19.6	%	35.2	%	34.2	%	25.8	%	31.1	%
Change in Cash-Basis Second Generation Net Rent	10.3	%	3.3	%	13.5	%	7.3	%	6.3	%	6.9	%	19.3	%	13.1	%	7.6	%	13.2	%

Same Property Information (3)
Percent Leased (period end)	91.8	%	92.1	%	93.9	%	92.9	%	92.6	%	92.6	%	93.6	%	93.5	%	94.2	%	94.2	%
Weighted Average Occupancy	89.4	%	89.9	%	90.7	%	89.1	%	87.7	%	89.4	%	92.0	%	91.9	%	91.8	%	91.9	%
Change in Net Operating Income (over prior year period)	6.1	%	5.5	%	6.8	%	1.3	%	3.6	%	4.4	%	2.6	%	1.3	%	2.7	%	2.2	%
Change in Cash-Basis Net Operating Income (over prior year period)	8.4	%	5.4	%	8.6	%	2.0	%	4.2	%	5.3	%	9.4	%	4.1	%	4.4	%	5.9	%

Development Pipeline
Estimated Project Costs (in thousands) (4)	$512,200		$529,200		$463,500		$402,000		$490,500		$490,500		$271,500		$358,800		$362,900		$362,900
Estimated Project Costs (4) / Total Undepreciated Assets	10.5	%	10.6	%	9.6	%	8.1	%	9.9	%	9.9	%	5.5	%	7.2	%	7.2	%	7.2	%

Market Capitalization (5)
Common Stock Price (period end)	$8.51		$8.27		$8.79		$9.34		$9.25		$9.25		$8.68		$9.69		$8.89		$8.89
Common Stock/Units Outstanding (period end in thousands)	401,596		426,823		426,942		426,995		426,995		426,995		427,218		427,368		427,359		427,359
Equity Market Capitalization (in thousands)	$3,417,582		$3,529,826		$3,752,820		$3,988,133		$3,949,704		$3,949,704		$3,708,252		$4,141,196		$3,799,222		$3,799,222
Debt (in thousands)	1,632,270		1,498,044		1,205,632		1,286,252		1,262,523		1,262,523		1,262,833		1,261,459		1,236,891		1,236,891
Total Market Capitalization (in thousands)	$5,049,852		$5,027,870		$4,958,452		$5,274,385		$5,212,227		$5,212,227		$4,971,085		$5,402,655		$5,036,113		$5,036,113

Credit Ratios (5)
Net Debt/Total Market Capitalization	31.6	%	29.1	%	24.0	%	23.2	%	21.4	%	21.4	%	23.2	%	21.3	%	22.9	%	22.9	%
Net Debt/Total Undepreciated Assets	32.8	%	29.4	%	24.7	%	24.7	%	22.5	%	22.5	%	23.5	%	23.1	%	22.9	%	22.9	%
Net Debt/Annualized Adjusted EBITDAre	5.22		4.49		3.93		4.31		3.75		3.75		3.77		3.76		3.65		3.65
Fixed Charges Coverage (Adjusted EBITDAre)	4.63		5.13		5.49		5.82		6.01		5.58		5.39		5.37		5.67		5.48



Cousins Properties	8	Q3 2018 Supplemental Information



KEY PERFORMANCE METRICS



	2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017		2018 1st		2018 2nd		2018 3rd		2018 YTD

Dividend Information (5)
Common Dividend per Share (6)	$0.30		$0.06		$0.06		$0.06		$0.06		$0.24		$0.065		$0.065		$0.065		$0.195
Funds From Operations (FFO) Payout Ratio	46.1	%	37.5	%	38.0	%	40.4	%	39.3	%	38.8	%	42.3	%	42.3	%	40.5	%	41.7	%
Funds Available for Distribution (FAD) Payout Ratio	59.0	%	56.4	%	52.9	%	67.2	%	66.8	%	60.2	%	61.9	%	61.2	%	59.1	%	60.7	%

Operations Ratio (5)
Annualized General and Administrative Expenses/Total Undepreciated Assets	0.53	%	0.50	%	0.72	%	0.58	%	0.45	%	0.56	%	0.55	%	0.65	%	0.31	%	0.50	%

Additional Information (5) (in thousands, except per square foot amounts)
In-Place Gross Rent (per square foot) (7)	$32.64		$33.70		$33.13		$34.02		$34.19		$34.19		$34.98		$35.08		$35.23		$35.23
Straight Line Rental Revenue	$18,967		$9,608		$7,826		$6,825		$6,714		$30,973		$8,136		$5,690		$5,148		$18,974
Above and Below Market Rents Amortization	$7,097		$1,602		$1,929		$1,852		$1,838		$7,221		$1,793		$1,714		$1,730		$5,237
Second Generation Capital Expenditures	$46,876		$10,971		$7,569		$15,949		$18,996		$53,485		$11,256		$11,077		$15,152		$37,485

(1) See Office Leasing Activity on page 18 for additional detail and explanations.

(2) Effective in the second quarter 2018, the Company began including commissions paid to its internal leasing personnel. Prior period amounts presented have been adjusted from what was previously disclosed for this change.

(3) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 17 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 34 for additional information.

(4) Represents Cousins' share of estimated project costs. See Development Pipeline on page 25 for additional detail.

(5) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 30.

(6) The fourth quarter 2016 dividend was declared and paid one quarter in arrears.

(7) In-place gross rent represents the annualized cash basis base rent including tenant's share of estimated operating expenses, if applicable, as of the end of the period divided by occupied square feet.



Cousins Properties	9	Q3 2018 Supplemental Information



KEY PERFORMANCE METRICS

(1) Office properties only.

Note: See additional information included herein for calculations, definitions, and reconciliations to GAAP financial measures.



Cousins Properties	10	Q3 2018 Supplemental Information



FUNDS FROM OPERATIONS - SUMMARY (1)



	(amounts in thousands, except per share amounts)
	2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017			2018 1st			2018 2nd			2018 3rd			2018 YTD
Net Operating Income	$	260,281		$	80,167		$	80,115		$	75,815		$	77,109		$	313,206		$	80,578		$	80,195		$	80,858		$	241,631
Land Sales Less Cost of Sales	3,770			—			63			4			—			67			330			2,449			—			2,779
Fee Income	8,347			1,936			1,854			2,597			2,245			8,632			2,894			1,798			2,519			7,211
Other Income	5,525			6,889			5,304			1,634			2,164			15,991			1,034			1,212			915			3,161
Reimbursed Expenses	(3,259		)	(865		)	(907		)	(895		)	(860		)	(3,527		)	(942		)	(860		)	(955		)	(2,757		)
General and Administrative Expenses	(25,592		)	(6,182		)	(8,618		)	(7,193		)	(5,530		)	(27,523		)	(6,809		)	(8,071		)	(3,913		)	(18,793		)
Interest Expense	(41,095		)	(12,066		)	(10,444		)	(9,363		)	(9,509		)	(41,382		)	(11,293		)	(11,305		)	(11,208		)	(33,806		)
Other Expenses	(45,984		)	(2,391		)	(542		)	196			(953		)	(3,690		)	(695		)	(365		)	(257		)	(1,317		)
Depreciation and Amortization of Non-Real Estate Assets	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)	(473		)	(468		)	(469		)	(1,410		)
FFO (1)	$	160,628		$	67,037		$	66,360		$	62,334		$	64,169		$	259,900		$	64,624		$	64,585		$	67,490		$	196,699
Weighted Average Shares - Diluted	256,023			411,186			427,180			427,300			427,288			423,297			427,381			427,501			427,520			427,472
FFO per Share (1)	$	0.63		$	0.16		$	0.16		$	0.15		$	0.15		$	0.61		$	0.15		$	0.15		$	0.16		$	0.46

(1) See pages 30 and 33 for reconciliations of Funds from Operations to net income available to common stockholders.



Cousins Properties	11	Q3 2018 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	(amounts in thousands, except per share amounts)
	2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017		2018 1st		2018 2nd		2018 3rd		2018 YTD

Net Operating Income
Consolidated Properties
Hearst Tower	$	5,957	$	6,356	$	6,370	$	6,302	$	7,158	$	26,186	$	6,493	$	6,426	$	6,456	$	19,375
Northpark (2)	22,144		5,410		5,130		4,945		5,021		20,506		5,731		5,814		6,204		17,749
Corporate Center (2)	5,005		4,761		5,374		5,308		5,446		20,889		5,780		5,956		5,947		17,683
Hayden Ferry (2)	3,881		5,209		5,307		5,466		5,968		21,950		5,766		5,433		5,894		17,093
Fifth Third Center	17,501		4,842		4,681		4,772		4,989		19,284		4,729		4,647		4,912		14,288
864 Spring Street	—		—		—		—		50		50		4,726		4,608		4,704		14,038
Buckhead Plaza (2)	4,186		4,418		4,143		4,389		4,566		17,516		4,330		4,382		4,367		13,079
Promenade	14,555		4,173		4,407		4,184		3,991		16,755		4,240		4,242		4,125		12,607
One Eleven Congress	3,256		3,713		3,735		4,172		3,526		15,146		4,036		4,039		4,034		12,109
San Jacinto Center	3,456		4,038		4,207		3,918		3,906		16,069		3,635		3,632		3,596		10,863
Colorado Tower	12,408		3,383		3,352		3,344		3,478		13,557		3,429		3,453		3,511		10,393
3344 Peachtree	3,505		3,235		2,884		2,705		2,085		10,909		2,994		3,069		2,970		9,033
816 Congress	9,900		2,694		2,641		2,766		2,797		10,898		2,780		2,911		3,016		8,707
NASCAR Plaza	2,507		2,477		2,394		2,609		2,709		10,189		2,652		2,590		2,683		7,925
Tempe Gateway	1,966		2,008		2,136		1,964		1,971		8,079		1,893		2,029		1,997		5,919
3350 Peachtree	2,006		2,264		2,288		2,153		1,968		8,673		1,987		1,899		1,888		5,774
3348 Peachtree	1,541		1,491		1,491		1,657		1,507		6,146		1,405		1,360		1,472		4,237
111 West Rio	—		—		1,396		1,236		1,412		4,044		1,314		1,419		1,374		4,107
8000 Avalon	—		—		—		80		353		433		1,357		1,350		1,144		3,851
The Pointe	1,227		1,146		1,146		1,069		1,207		4,568		1,236		1,170		1,179		3,585
Research Park V	844		359		916		874		827		2,976		1,012		1,016		1,023		3,051
Meridian Mark Plaza	3,674		989		997		979		1,116		4,081		920		1,006		1,049		2,975
Harborview Plaza	898		930		931		1,035		1,074		3,970		712		516		319		1,547
Other (3)	32,487		7,095		6,580		2,954		2,650		19,279		—		—		—		—
Subtotal - Consolidated	152,904		70,991		72,506		68,881		69,775		282,153		73,157		72,967		73,864		219,988

Unconsolidated Properties (4)
Terminus (2)	14,340		3,710		3,655		3,598		3,514		14,477		3,486		3,415		3,345		10,246
Gateway Village (2)(5)	2,450		1,751		1,756		1,805		1,735		7,047		1,968		1,770		1,873		5,611
Emory University Hospital Midtown Medical Office Tower	3,970		989		948		961		1,015		3,913		990		1,031		1,028		3,049
Carolina Square (2)	—		—		—		47		658		705		928		975		747		2,650
300 Colorado	—		—		—		—		—		—		49		37		1		87
Other (3)	8,026		2,726		1,250		523		412		4,911		—		—		—		—
Subtotal - Unconsolidated	28,786		9,176		7,609		6,934		7,334		31,053		7,421		7,228		6,994		21,643

Discontinued Operations (6)	78,591		—		—		—		—		—		—		—		—		—

Total Net Operating Income (1)	260,281		80,167		80,115		75,815		77,109		313,206		80,578		80,195		80,858		241,631

Sales Less Cost of Sales
Land Sales Less Cost of Sales - Consolidated	3,580		—		63		4		—		67		—		—		—		—
Land Sales Less Cost of Sales - Unconsolidated (4)	190		—		—		—		—		—		330		2,449		—		2,779
Total Sales Less Cost of Sales	3,770		—		63		4		—		67		330		2,449		—		2,779



Cousins Properties	12	Q3 2018 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	(amounts in thousands, except per share amounts)
	2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017		2018 1st		2018 2nd		2018 3rd		2018 YTD
Fee Income
Management Fees (7)	5,158		1,402		1,492		1,458		1,442		5,794		1,524		1,401		1,537		4,462
Development Fees	2,277		432		318		1,062		328		2,140		291		271		951		1,513
Leasing & Other Fees	912		102		44		77		475		698		1,079		126		31		1,236
Total Fee Income	8,347		1,936		1,854		2,597		2,245		8,632		2,894		1,798		2,519		7,211

Other Income
Termination Fees	122		5,238		2,913		734		385		9,270		360		639		276		1,275
Termination Fees - Unconsolidated (4)	3,000		959		195		132		8		1,294		—		—		—		—
Termination Fees - Discontinued Operations (6)	288		—		—		—		—		—		—		—		—		—
Interest and Other Income	928		188		262		258		1,540		2,248		600		493		468		1,561
Interest and Other Income - Unconsolidated (4)	1,188		504		105		81		231		921		74		80		78		232
Interest and Other Income - Discontinued Operations (6)	(1	)	—		—		—		—		—		—		—		—		—
Gain on Extinguishment of Debt	—		—		1,829		429		—		2,258		—		—		93		93
Total Other Income	5,525		6,889		5,304		1,634		2,164		15,991		1,034		1,212		915		3,161

Total Fee and Other Income	13,872		8,825		7,158		4,231		4,409		24,623		3,928		3,010		3,434		10,372

Reimbursed Expenses	(3,259	)	(865	)	(907	)	(895	)	(860	)	(3,527	)	(942	)	(860	)	(955	)	(2,757	)

General and Administrative Expenses	(25,592	)	(6,182	)	(8,618	)	(7,193	)	(5,530	)	(27,523	)	(6,809	)	(8,071	)	(3,913	)	(18,793	)

Interest Expense
Consolidated Debt
Senior Notes, Unsecured ($250M)	—		—		—		(2,353	)	(2,489	)	(4,842	)	(2,489	)	(2,490	)	(2,488	)	(7,467	)
Term Loan, Unsecured	(386	)	(1,288	)	(1,564	)	(1,655	)	(1,691	)	(6,198	)	(1,858	)	(2,088	)	(2,205	)	(6,151	)
Fifth Third Center	(1,702	)	(1,272	)	(1,266	)	(1,260	)	(1,254	)	(5,052	)	(1,247	)	(1,241	)	(1,235	)	(3,723	)
Promenade	(4,614	)	(1,134	)	(1,127	)	(1,119	)	(1,112	)	(4,492	)	(1,102	)	(1,095	)	(1,085	)	(3,282	)
Colorado Tower	(1,412	)	(1,059	)	(1,059	)	(1,059	)	(1,059	)	(4,236	)	(1,059	)	(1,059	)	(1,059	)	(3,177	)
Senior Notes, Unsecured ($100M)	—		—		(876	)	(1,025	)	(1,036	)	(2,937	)	(1,036	)	(1,037	)	(1,036	)	(3,109	)
816 Congress Avenue	(3,268	)	(814	)	(810	)	(806	)	(803	)	(3,233	)	(799	)	(795	)	(792	)	(2,386	)
Credit Facility, Unsecured	(3,914	)	(1,035	)	(1,153	)	(444	)	(418	)	(3,050	)	(742	)	(754	)	(754	)	(2,250	)
Meridian Mark Plaza	(1,512	)	(373	)	(372	)	(370	)	(368	)	(1,483	)	(366	)	(368	)	(359	)	(1,093	)
Other (3)	(14,540	)	(4,356	)	(2,514	)	(197	)	(176	)	(7,243	)	(175	)	(177	)	(74	)	(426	)
Capitalized	4,697		1,590		2,218		2,701		2,733		9,242		1,095		1,390		1,536		4,021
Subtotal - Consolidated	(26,651	)	(9,741	)	(8,523	)	(7,587	)	(7,673	)	(33,524	)	(9,778	)	(9,714	)	(9,551	)	(29,043	)

Unconsolidated Debt (4)
Terminus	(4,919	)	(1,214	)	(1,209	)	(1,204	)	(1,196	)	(4,823	)	(1,001	)	(995	)	(988	)	(2,984	)
Emory University Hospital Midtown Medical Office Tower	(1,311	)	(324	)	(322	)	(320	)	(319	)	(1,285	)	(317	)	(315	)	(314	)	(946	)
Carolina Square	—		—		—		(27	)	(157	)	(184	)	(197	)	(281	)	(355	)	(833	)
Other (3)	(2,193	)	(787	)	(390	)	(225	)	(164	)	(1,566	)	—		—		—		—
Subtotal - Unconsolidated	(8,423	)	(2,325	)	(1,921	)	(1,776	)	(1,836	)	(7,858	)	(1,515	)	(1,591	)	(1,657	)	(4,763	)

Discontinued Operations (6)	(6,021	)	—		—		—		—		—		—		—		—		—

Total Interest Expense	(41,095	)	(12,066	)	(10,444	)	(9,363	)	(9,509	)	(41,382	)	(11,293	)	(11,305	)	(11,208	)	(33,806	)



Cousins Properties	13	Q3 2018 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL (1)



	(amounts in thousands, except per share amounts)
	2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017			2018 1st			2018 2nd			2018 3rd			2018 YTD
Other Expenses
Severance	(249		)	(28		)	—			(73		)	(345		)	(446		)	(195		)	128			4			(63		)
Partners' share of FFO in consolidated joint ventures	(3,775		)	—			—			(4		)	(12		)	(16		)	(144		)	(134		)	(121		)	(399		)
Property Taxes and Other Holding Costs	(440		)	(304		)	(140		)	(139		)	(181		)	(764		)	(130		)	(152		)	(148		)	(430		)
Loss on Extinguishment of Debt - Consolidated	—			—			—			—			—			—			(85		)	—			—			(85		)
Loss on Extinguishment of Debt - Unconsolidated (4)	(5,180		)	—			—			—			—			—			—			—			—			—
Predevelopment & Other Costs	(943		)	(129		)	(156		)	(265		)	(253		)	(803		)	(50		)	(70		)	8			(112		)
Transaction Costs - Merger	(24,522		)	(1,930		)	(246		)	677			(162		)	(1,661		)	(91		)	(137		)	—			(228		)
Transaction Costs - Spin-off	(6,349		)	—			—			—			—			—			—			—			—			—
Impairment Loss	(4,526		)	—			—			—			—			—			—			—			—			—
Total Other Expenses	(45,984		)	(2,391		)	(542		)	196			(953		)	(3,690		)	(695		)	(365		)	(257		)	(1,317		)

Depreciation and Amortization of Non-Real Estate Assets	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)	(473		)	(468		)	(469		)	(1,410		)

FFO (1)	$	160,628		$	67,037		$	66,360		$	62,334		$	64,169		$	259,900		$	64,624		$	64,585		$	67,490		$	196,699
Weighted Average Shares - Diluted	256,023			411,186			427,180			427,300			427,288			423,297			427,381			427,501			427,520			427,472
FFO per Share (1)	$	0.63		$	0.16		$	0.16		$	0.15		$	0.15		$	0.61		$	0.15		$	0.15		$	0.16		$	0.46

Note: Amounts may differ slightly from other schedules contained herein due to rounding.

(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 30.

(2) Contains multiple buildings that are grouped together for reporting purposes.

(3) Represents properties sold and loans repaid prior to September 30, 2018 that are not considered discontinued operations.

(4) Unconsolidated amounts include amounts recorded in unconsolidated joint ventures for the respective category multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but

believes including these amounts in the categories indicated is meaningful to investors and analysts.

(5) Through December 1, 2016, the Company received an 11.46% current return on its $11.1 million investment in Gateway Village and, when certain other revenue criteria were met, received additional returns. The Company recognized these amounts as

NOI from this venture. After December 1, 2016, net income and cash flows were allocated 50% to each joint venture member.

(6) Represents properties included in the spin-off in the 2016 merger-spin transaction with Parkway Properties, Inc.

(7) Management Fees include reimbursement of expenses that are included in the "Reimbursed Expenses" line item.



Cousins Properties	14	Q3 2018 Supplemental Information



PORTFOLIO STATISTICS



	Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased		Weighted Average Occupancy		% of Total Net Operating Income (1)	Property Level Debt ($000) (2)
	Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	3Q18	2Q18	3Q18	2Q18	% of Total Net Operating Income (1)	Property Level Debt ($000) (2)
	Northpark (3)	1,539,000	Consolidated	100%	93.1%	86.4%	86.6%	84.8%	7.6%	$	—
	864 Spring Street	506,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	5.8%	—
	Buckhead Plaza (3)	671,000	Consolidated	100%	82.8%	86.7%	83.2%	88.2%	5.4%	—
	Promenade	777,000	Consolidated	100%	89.3%	93.4%	90.5%	94.1%	5.1%	99,792
	Terminus (3)	1,226,000	Unconsolidated	50%	88.8%	92.7%	87.0%	87.5%	4.2%	99,927
	3344 Peachtree	484,000	Consolidated	100%	92.4%	92.4%	91.5%	91.5%	3.7%	—
	3350 Peachtree	413,000	Consolidated	100%	94.4%	84.9%	84.9%	85.8%	2.3%	—
	3348 Peachtree	258,000	Consolidated	100%	88.0%	88.0%	86.6%	86.0%	1.8%	—
	8000 Avalon	229,000	Consolidated	90%	100.0%	98.2%	75.7%	73.4%	1.4%	—
	Emory University Hospital Midtown Medical Office Tower	358,000	Unconsolidated	50%	99.1%	99.9%	99.6%	99.0%	1.3%	34,955
	Meridian Mark Plaza	160,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.3%	23,607
	ATLANTA	6,621,000			92.0%	90.9%	88.6%	89.2%	39.9%	258,281

	Hearst Tower	966,000	Consolidated	100%	99.1%	99.1%	99.1%	99.1%	8.0%	—
	Fifth Third Center	692,000	Consolidated	100%	99.8%	99.7%	99.7%	95.8%	6.1%	143,739
	NASCAR Plaza	394,000	Consolidated	100%	98.8%	98.1%	98.5%	98.3%	3.3%	—
	Gateway Village (3)	1,061,000	Unconsolidated	50%	99.4%	99.4%	99.4%	99.4%	2.3%	—
	CHARLOTTE	3,113,000			99.3%	99.2%	99.2%	98.2%	19.7%	143,739

	One Eleven Congress	519,000	Consolidated	100%	91.4%	86.3%	86.3%	86.5%	5.0%	—
	San Jacinto Center	395,000	Consolidated	100%	94.3%	94.3%	94.3%	93.0%	4.4%	—
	Colorado Tower	373,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	4.3%	119,238
	816 Congress	435,000	Consolidated	100%	98.6%	98.6%	95.2%	95.2%	3.7%	81,589
	Research Park V	173,000	Consolidated	100%	97.1%	97.1%	97.1%	97.1%	1.3%	—
	AUSTIN	1,895,000			95.9%	94.5%	93.7%	93.5%	18.7%	200,827

	Hayden Ferry (3)	789,000	Consolidated	100%	95.2%	96.3%	91.1%	89.8%	7.3%	—
	Tempe Gateway	264,000	Consolidated	100%	96.7%	96.7%	96.6%	94.2%	2.5%	—
	111 West Rio	225,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.7%	—
	PHOENIX	1,278,000			96.4%	97.0%	93.8%	92.5%	11.5%	—

	Corporate Center (3)	1,224,000	Consolidated	100%	98.0%	97.9%	94.1%	94.7%	7.3%	—
	The Pointe	253,000	Consolidated	100%	97.1%	96.2%	93.6%	92.8%	1.5%	—
	Harborview Plaza	205,000	Consolidated	100%	65.1%	62.0%	55.1%	65.7%	0.4%	—
	TAMPA	1,682,000			93.9%	93.3%	89.3%	90.9%	9.2%	—

	Carolina Square Office (4)	158,000	Unconsolidated	50%	79.4%	77.9%	75.0%	75.0%	0.4%	12,490
	CHAPEL HILL	158,000			79.4%	77.9%	75.0%	75.0%	0.4%	12,490

	TOTAL OFFICE	14,747,000			94.5%	93.8%	91.9%	92.0%	99.4%	$	615,337

	Other Properties
	Carolina Square Apartments (246 Units) (4)	266,000	Unconsolidated	50%	100.0%	100.0%	98.0%	99.7%	0.5%	21,028
	Carolina Square Retail (4)	44,000	Unconsolidated	50%	81.5%	81.5%	75.7%	61.7%	0.1%	3,479

	TOTAL OTHER	310,000			97.4%	97.4%	94.8%	94.3%	0.6%	$	24,507

	TOTAL	15,057,000			94.6%	93.9%	91.9%	92.0%	100.0%	$	639,844

See next page for footnotes



Cousins Properties	15	Q3 2018 Supplemental Information



PORTFOLIO STATISTICS



(1	)	Represents the Company's share of net operating income for the three months ended September 30, 2018.
(2	)	Represents the Company's share of property specific mortgage debt as of September 30, 2018.
(3	)	Contains two or more buildings that are grouped together for reporting purposes.
(4	)	The Company's share of Carolina Square debt has been allocated to office, retail, and apartments based on their relative square footage.



Cousins Properties	16	Q3 2018 Supplemental Information



SAME PROPERTY PERFORMANCE (1)



	Net Operating Income ($ in thousands)
	Three Months Ended September 30,
	2018			2017			% Change
Property Revenues (2)	$	116,136		$	111,588		4.1	%
Property Operating Expenses (2)	43,246			40,611			6.5	%
Property Net Operating Income	$	72,890		$	70,977		2.7	%

Cash-Basis Property Revenues (3)	$	109,267		$	103,997		5.1	%
Cash-Basis Property Operating Expenses (4)	42,937			40,461			6.1	%
Cash-Basis Property Net Operating Income	$	66,330		$	63,536		4.4	%

End of Period Leased	94.2		%	94.4		%
Weighted Average Occupancy	91.8		%	91.6		%

	Nine Months Ended September 30,
	2018			2017			% Change
Property Revenues (2)	$	344,861		$	332,491		3.7	%
Property Operating Expenses (2)	127,963			120,284			6.4	%
Property Net Operating Income	$	216,898		$	212,207		2.2	%

Cash Basis Property Revenues (3)	$	323,133		$	304,728		6.0	%
Cash Basis Property Operating Expenses (4)	127,356			119,834			6.3	%
Cash Basis Property Net Operating Income	$	195,777		$	184,894		5.9	%

Weighted Average Occupancy	91.9		%	91.5		%



(1)	Same Properties include those office properties that were fully operational in each of the comparable reporting periods. See Non-GAAP Financial Measures - Calculation and Reconciliations. Properties included in this reporting period are as follows:
	816 Congress	Fifth Third Center	One Eleven Congress
	3344 Peachtree	Gateway Village	Promenade
	3348 Peachtree	Harborview Plaza	Research Park V
	3350 Peachtree	Hayden Ferry	San Jacinto Center
	Buckhead Plaza	Hearst Tower	Tempe Gateway
	Colorado Tower	Meridian Mark Plaza	Terminus
	Corporate Center	NASCAR Plaza	The Pointe
	Emory University Hospital Midtown Medical Office Tower	Northpark
(2)	Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures. Net operating income for unconsolidated joint ventures is calculated as property revenues less property expenses at the joint ventures multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but believes that including these amounts with consolidated net operating income is meaningful to investors and analysts.
(3)	Cash-Basis Same Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Property Revenues, excluding straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)	Cash-Basis Same Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.



Cousins Properties	17	Q3 2018 Supplemental Information



OFFICE LEASING ACTIVITY(1)



	Three Months Ended September 30, 2018												Nine Months Ended September 30, 2018
	New			Renewal			Expansion			Total			New			Renewal			Expansion			Total
Gross leased (square feet)										609,853												1,429,718
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(124,255		)										(286,857		)
Net leased (square feet)	234,549			226,888			24,161			485,598			470,886			575,514			96,461			1,142,861
Number of transactions	12			12			4			28			33			42			14			89
Lease term (years) (2)	7.7			8.1			4.5			7.7			8.7			6.7			7.5			7.6

Net rent (per square foot) (2)(3)	$	29.15		$	27.93		$	26.68		$	28.46		$	30.29		$	31.78		$	29.83		$	31.00
Free rent (per square foot)	(1.35		)	(0.53		)	(0.88		)	(0.94		)	(1.19		)	(0.60		)	(0.62		)	(0.84		)
Leasing commissions (per square foot)	(2.71		)	(2.11		)	(2.04		)	(2.40		)	(2.59		)	(2.47		)	(2.27		)	(2.50		)
Tenant improvements (per square foot)	(5.85		)	(2.41		)	(6.85		)	(4.29		)	(5.59		)	(2.56		)	(4.75		)	(4.00		)
Net effective rent (per square foot)	$	19.24		$	22.88		$	16.91		$	20.83		$	20.92		$	26.15		$	22.19		$	23.66

Second generation leased square feet (4)(5)										379,718												858,670
Increase in second generation net rent (2)(3)(5)										25.8		%										31.1		%
Increase in cash-basis second generation net rent (2)(5)										7.6		%										13.2		%

(1) Excludes apartment and retail leasing at mixed-use projects.
(2) Weighted average.
(3) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term.
(4) Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, and leases for spaces that have been vacant for one year or more.
(5) Represents increase in net rent at the end of term paid by the prior tenant compared to net rent at beginning of term paid by the current tenant. For early renewals, represents increase in net rent at the end of the term of the original lease compared to net rent at the beginning of the extended term of the lease.



Cousins Properties	18	Q3 2018 Supplemental Information



OFFICE LEASE EXPIRATIONS

Lease Expirations by Year (1)



Year of Expiration	Square Feet Expiring	% of Leased Space		Annual Contractual Rents ($ in Thousands) (2)		% of Annual Contractual Rents		Annual Contractual Rent/Sq. Ft.

2018	192,684	1.5	%	$	5,258	1.1	%	$	27.29
2019	760,842	6.1	%	24,795		5.0	%	32.59
2020	901,170	7.2	%	36,805		7.4	%	40.84
2021	1,309,246	10.4	%	49,237		9.9	%	37.61
2022	1,396,430	11.1	%	54,396		10.8	%	38.95
2023	1,169,429	9.3	%	48,389		9.7	%	41.38
2024	1,034,940	8.3	%	41,921		8.4	%	40.51
2025	1,434,076	11.4	%	59,724		12.0	%	41.65
2026	1,357,244	10.8	%	49,788		10.0	%	36.68
2027 & Thereafter	2,975,140	23.9	%	129,356		25.7	%	43.48

Total	12,531,201	100.0	%	$	499,669	100.0	%	$	39.87

Lease Expirations Greater than 100,000 Square Feet Through Year End 2020 (1)



Expiration Date	Tenant	Market	Building	Square Feet Expiring
January 2019	National Union Fire Insurance Company (dba AIG)	Atlanta	Northpark	105,362



(1) Company's share.
(2) Annual Contractual Rents are the estimated rents in the year of expiration. It includes the minimum base rent and an estimate of operating expenses, if applicable, as defined in the respective leases.



Cousins Properties	19	Q3 2018 Supplemental Information



OFFICE LEASE EXPIRATIONS

(1) Company's share



Cousins Properties	20	Q3 2018 Supplemental Information



TOP 20 OFFICE TENANTS



	Tenant (1)	Number of Properties Occupied	Number of Markets Occupied	Company's Share of Square Footage	Company's Share of Annualized Rent (2)		Percentage of Company's Share of Annualized Rent	Weighted Average Remaining Lease Term (Years)
1	Bank of America, NA	4	2	1,128,098	$	31,007,332	7.2%	7
2	NCR Corporation	1	1	503,133	20,060,158		4.6%	14
3	Wells Fargo Bank, N.A.	5	4	236,033	9,195,428		2.1%	4
4	Parsley Energy, L.P.	1	1	135,107	7,690,256		1.8%	7
5	ADP, LLC	1	1	225,000	7,194,252		1.7%	10
6	Regus Equity Business Centers, LLC	7	4	169,994	6,414,348		1.5%	4
7	McGuirewoods LLP	3	3	198,193	6,401,645		1.5%	7
8	Westrock Shared Services, LLC	1	1	205,185	6,302,351		1.5%	12
9	Blue Cross Blue Shield	1	1	198,834	5,493,871		1.3%	3
10	NASCAR Media Group, LLC	1	1	139,461	5,303,881		1.2%	3
11	OSI Restaurant Partners, LLC (dba Outback Steakhouse)	1	1	167,723	5,224,833		1.2%	6
12	Amazon	3	2	120,153	4,760,690		1.1%	5
13	Board of Regents of the University System of Georgia (dba Georgia State University)	1	1	135,124	4,728,709		1.1%	5
14	Hearst Communications, Inc.	1	1	137,724	4,341,060		1.0%	11
15	Smith, Gambrell & Russell, LLP	1	1	120,973	4,111,040		0.9%	3
16	SVB Financial Group (dba Silicon Valley Bank)	1	1	126,111	4,026,776		0.9%	5
17	Atlassian, Inc.	1	1	72,530	3,977,677		0.9%	3
18	Symantec Corporation	1	1	113,364	3,947,454		0.9%	6
19	K & L Gates LLP	1	1	110,914	3,907,131		0.9%	9
20	Norton Rose Fulbright US LLP	1	1	73,225	3,859,259		0.9%	8
	Total			4,316,879	$	147,948,151	34.2%	7

(1)	In some cases, the actual tenant may be an affiliate of the entity shown.
(2)	Annualized Rent represents the annualized rent including tenant's share of estimated operating expenses, if applicable, paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Rent represents the annualized contractual rent the tenant will pay in the first month it is required to pay rent.
Note:	This schedule includes tenants whose leases have commenced and/or who have taken occupancy. Leases that have been signed but have not commenced are excluded.



Cousins Properties	21	Q3 2018 Supplemental Information



TENANT INDUSTRY DIVERSIFICATION

Note: Management uses SIC codes when available along with judgment to determine tenant industry classification.



Cousins Properties	22	Q3 2018 Supplemental Information



INVESTMENT ACTIVITY

Completed Property Acquisitions



Property	Type	Market	Company's Ownership Interest	Timing	Square Feet		Gross Purchase Price ($ in thousands) (1)

2017
111 West Rio (2)	Office	Phoenix	100.0%	1Q	225,000		$	19,600

2016
Parkway Properties	Office	Various	Various	4Q	8,819,000		(3		)
Cousins Fund II, L.P. (4)	Office	Various	100.0%	4Q	(4	)	279,100

2014
Fifth Third Center	Office	Charlotte	100.0%	3Q	698,000		215,000
Northpark	Office	Atlanta	100.0%	4Q	1,528,000		348,000

2013
Post Oak Central	Office	Houston	100.0%	1Q	1,280,000		230,900
Terminus 200	Office	Atlanta	50.0%	1Q	566,000		164,000
816 Congress	Office	Austin	100.0%	2Q	435,000		102,400
Greenway Plaza	Office	Houston	100.0%	3Q	4,348,000		950,000
777 Main	Office	Fort Worth	100.0%	3Q	980,000		160,000

					18,879,000		$	2,469,000

Completed Property Developments



Project	Type	Market	Company's Ownership Interest	Timing	Square Feet		Total Project Cost ($ in thousands) (1)

2018
864 Spring Street	Office	Atlanta	100.0%	1Q	506,000		$	216,900

2017
8000 Avalon	Office	Atlanta	90.0%	2Q	229,000		73,000
Carolina Square	Mixed	Chapel Hill	50.0%	3Q	468,000	(5)	123,000

2015
Colorado Tower	Office	Austin	100.0%	1Q	373,000		126,100
Emory Point - Phase II	Mixed	Atlanta	75.0%	3Q	302,000		75,400
Research Park V	Office	Austin	100.0%	4Q	173,000		45,000

2013
Emory Point - Phase I	Mixed	Atlanta	75.0%	4Q	484,000		102,300

					2,535,000		$	761,700

(1) Except as otherwise noted, amounts represent total purchase prices and total project cost paid by the Company and, where applicable, its joint venture partner.

(2) The Company acquired a 74.6% interest in 111 West Rio as part of the Parkway merger and, in the first quarter of 2017, purchased the remaining 25.4% interest from American Airlines.

(3) Properties acquired in the Parkway Transaction. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the years ended

December 31, 2016 and December 31, 2017, respectively, and reports filed with the SEC by the Company, Parkway Properties Inc., and Parkway, Inc.

(4) Purchased the outside interest (approximately 70%) in a consolidated partnership for $279.1 million; this included cash from the sale of Two Liberty Place in Philadelphia as well as the

Hayden Ferry buildings in Tempe and 3344 Peachtree in Atlanta.

(5) Carolina Square is comprised of 202,000 square feet of office and retail space and 246 apartments.



Cousins Properties	23	Q3 2018 Supplemental Information



INVESTMENT ACTIVITY

Completed Property Dispositions



Property	Type	Market	Company's Ownership Interest	Timing	Square Feet	Gross Sales Price ($ in thousands) (1)
2017
Emory Point I and II	Mixed	Atlanta	75.0%	2Q	786,000	$	199,000
American Cancer Society Center	Office	Atlanta	100.0%	2Q	996,000	166,000
Bank of America Center, One Orlando ---Centre, and Citrus Center	Office	Orlando	100.0%	4Q	1,038,000	208,100
Courvoisier Centre (2)	Office	Miami	20.0%	4Q	343,000	33,900

2016
100 North Point Center East	Office	Atlanta	100.0%	1Q	129,000	22,000
Post Oak Central and Greenway Plaza (3)	Office	Houston	100.0%	4Q	5,628,000	—
Two Liberty Place	Office	Philadelphia	100.0%	4Q	941,000	219,000
191 Peachtree	Office	Atlanta	100.0%	4Q	1,225,000	267,500
Lincoln Place	Office	Miami	100.0%	4Q	140,000	80,000
The Forum	Office	Atlanta	100.0%	4Q	220,000	70,000

2015
2100 Ross	Office	Dallas	100.0%	3Q	844,000	131,000
200, 333, and 555 North Point Center East	Office	Atlanta	100.0%	4Q	411,000	70,300
The Points at Waterview	Office	Dallas	100.0%	4Q	203,000	26,800

2014
Lakeshore and University Park Place	Office	Birmingham	100.0%	3Q	320,000	44,700
Mahan Village	Retail	Florida	50.5%	4Q	147,000	29,500
Cousins Watkins LLC	Retail	Other	50.5%	4Q	339,000	50,000
777 Main	Office	Fort Worth	100.0%	4Q	980,000	167,000

2013
Terminus 100 (4)	Office	Atlanta	100.0%	1Q	656,000	209,200
Tiffany Springs MarketCenter	Retail	Kansas City	88.5%	3Q	238,000	53,500
The Avenue Murfreesboro	Retail	Nashville	50.0%	3Q	752,000	164,000
CPV Two LLC and CPV Five LLC	Retail	Other	10.3%	3Q	2,113,000	522,300
Inhibitex	Office	Atlanta	100.0%	4Q	51,000	8,300
					18,500,000	$	2,742,100

(1) Except as otherwise noted, amounts represent total gross sales prices received by the Company and, where applicable, its joint venture partner.

(2) The Company sold its partnership interest for $12.6 million in a transaction that valued its interest in the property at $33.9 million, prior to deduction for existing mortgage debt.

(3) These properties were spun off as part of the Parkway Transaction. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the

years ended December 31, 2016 and December 31, 2017, respectively, and reports filed with the SEC by the Company, Parkway Properties Inc., and Parkway, Inc.

(4) In the first quarter of 2013, the Company sold Terminus 100 to Terminus Office Holdings, a 50-50 joint venture with JP Morgan.



Cousins Properties	24	Q3 2018 Supplemental Information



DEVELOPMENT PIPELINE (1)



Project	Type	Market	Company's Ownership Interest		Actual or Projected Construction Start Date	Number of Square Feet /Apartment Units	Estimated Project Cost (1) (2) ($ in thousands)		Company's Share of Estimated Project Cost (2) ($ in thousands)		Project Cost Incurred to Date (2) (3) ($ in thousands)		Company's Share of Project Cost Incurred to Date (2) ($ in thousands)		Percent Leased		Initial Occupancy (4)	Estimated Stabilization (5)



858 Spring Street (6)	Office	Atlanta	100	%	4Q16	260,000	$	117,000	$	117,000	$	107,228	$	107,228	100	%	4Q18	4Q18

Dimensional Place (7)	Office	Charlotte	50	%	4Q16	282,000	92,000		46,000		87,749		43,875		94	%	1Q19	1Q19

120 West Trinity	Mixed	Atlanta	20	%	1Q17		85,000		17,000		28,780		5,756
Office						33,000									—	%	1Q20	3Q20
Retail						19,000									—	%	1Q20	3Q20
Apartments						330									—	%	4Q19	2Q20

300 Colorado (8)	Office	Austin	50	%	4Q18	358,000	193,000		96,500		38,519		19,260		87	%	1Q21	1Q22

10000 Avalon	Office	Atlanta	90	%	3Q18	251,000	96,000		86,400		17,271		15,544		30	%	1Q20	1Q21

Total							$	583,000	$	362,900	$	279,547	$	191,663



(1)	This schedule shows projects currently under active development through the substantial completion of construction. Amounts included in the estimated project cost column represent the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates. The projected stabilization dates are also estimates and are subject to change as the project proceeds through the development process.
(2)	Estimated and incurred project cost includes financing costs only on project specific debt and excludes certain allocated capitalized costs required by GAAP that are not incurred in a joint venture. This schedule included these GAAP adjustments in previous quarters. Excluding the impact of this modification, there was no change in estimated project cost at any project other than the 300 Colorado project discussed in footnote (8).
(3)	Project Cost Incurred to Date includes predevelopment spending on projects where construction has not yet commenced.
(4)	The quarter which the Company estimates the first tenant will take occupancy.
(5)	Stabilization is the earlier of the quarter within which the Company estimates it will achieve 90% economic occupancy or one year from initial occupancy.
(6)	In October 2018, the Company completed development and commenced operations at 858 Spring Street, Phase II of NCR's world headquarters in Midtown Atlanta.
(7)	Dimensional Place is comprised of 266,000 square feet of office space and 16,000 square feet of retail space. The office component is 100% leased and the retail component is not yet leased. The Company's share of project cost is capped under the joint venture documents at $46 million. Any additional cost will be born by the joint venture partner and will not change the economics of the joint venture.
(8)	300 Colorado is comprised of 348,000 square feet of office space and 10,000 square feet of retail space, up from the previous estimate of 302,000 square feet of office space and 7,000 square feet of retail space. The new estimated project cost reflects the larger building. In January 2018, the joint venture acquired the land for this project, and construction is expected to commence December 2018.



Cousins Properties	25	Q3 2018 Supplemental Information



LAND INVENTORY



	Market	Type	Company's Ownership Interest	Cost Basis of Land ($ in thousands)

Wildwood Office Park	Atlanta	Commercial	50%
North Point	Atlanta	Commercial	100%
The Avenue Forsyth-Adjacent Land	Atlanta	Commercial	100%
Victory Center	Dallas	Commercial	75%
Corporate Center	Tampa	Commercial	100%
Padre Island	Corpus Christi	Residential	50%


Total				$	37,483
Company's Share				$	19,295



Note:	In October 2018, the Company entered into ground leases with purchase obligations on two adjacent land parcels at 901 W. Peachtree St. in Midtown Atlanta.



Cousins Properties	26	Q3 2018 Supplemental Information



DEBT SCHEDULE



				Company's Share of Debt Maturities and Principal Payments
				($ in thousands)
Description (Interest Rate Base, if not fixed)	Company's Ownership Interest	Rate at End of Quarter	Maturity Date	2018			2019			2020			2021			2022			Thereafter			Total Principal			Deferred Loan Costs			Total

Consolidated Debt
Floating Rate
Term Loan, Unsecured (LIBOR + 1.20%-1.70%) (1)	100%	3.46%	12/2/21	$	—		$	—		$	—		$	250,000		$	—		$	—		$	250,000		$	(1,246	)	$	248,754
Credit Facility, Unsecured (LIBOR + 1.05%-1.45%) (2)	100%	3.31%	1/3/23	—			—			—			—			—			—			—			—			—
Total Floating Rate Debt				—			—			—			250,000			—			—			250,000			(1,246		)	248,754

Fixed Rate
Senior Notes, Unsecured	100%	3.91%	7/6/25	—			—			—			—			—			250,000			250,000			(1,237		)	248,763
Fifth Third Center	100%	3.37%	10/1/26	775			3,165			3,274			3,386			3,502			130,169			144,271			(532		)	143,739
Colorado Tower	100%	3.45%	9/1/26	573			2,343			2,425			2,510			2,598			109,551			120,000			(762		)	119,238
Promenade	100%	4.27%	10/1/22	792			3,252			3,393			3,541			89,052			—			100,030			(238		)	99,792
Senior Notes, Unsecured	100%	4.09%	7/6/27	—			—			—			—			—			100,000			100,000			(470		)	99,530
816 Congress	100%	3.75%	11/1/24	412			1,690			1,754			1,821			1,891			74,521			82,089			(500		)	81,589
Meridian Mark Plaza	100%	6.00%	8/1/20	131			546			22,978			—			—			—			23,655			(48		)	23,607
Total Fixed Rate Debt				2,683			10,996			33,824			11,258			97,043			664,241			820,045			(3,787		)	816,258

Total Consolidated Debt				2,683			10,996			33,824			261,258			97,043			664,241			1,070,045			(5,033		)	1,065,012

Unconsolidated Debt
Floating Rate
Carolina Square (LIBOR + 1.90%) (3)	50%	4.16%	5/1/19	—			36,997			—			—			—			—			36,997			—			36,997
Total Floating Rate Debt				—			36,997			—			—			—			—			36,997			—			36,997
																			.
Fixed Rate
Terminus 100	50%	5.25%	1/1/23	362			1,494			1,575			1,659			1,749			54,091			60,930			(54		)	60,876
Terminus 200	50%	3.79%	1/1/23	203			831			863			896			931			35,350			39,074			(23		)	39,051
Emory University Hospital Midtown Medical Office Tower	50%	3.50%	6/1/23	199			814			842			872			903			31,436			35,066			(111		)	34,955
Total Fixed Rate Debt				764			3,139			3,280			3,427			3,583			120,877			135,070			(188		)	134,882

Total Unconsolidated Debt				764			40,136			3,280			3,427			3,583			120,877			172,067			(188		)	171,879

Total Debt				$	3,447		$	51,132		$	37,104		$	264,685		$	100,626		$	785,118		$	1,242,112		$	(5,221	)	$	1,236,891

Total Maturities (4)				$	—		$	36,997		$	22,644		$	250,000		$	86,295		$	756,515		$	1,152,451
% of Maturities				—		%	3		%	2		%	22		%	7		%	66		%	100		%



Cousins Properties	27	Q3 2018 Supplemental Information



DEBT SCHEDULE

Floating and Fixed Rate Debt Analysis

($ in thousands)



	Total Debt ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Years)
Floating Rate Debt	$	286,997	23	%	3.55	%	2.8
Fixed Rate Debt	955,115		77	%	3.93	%	6.5
Total Debt	$	1,242,112	100	%	3.84	%	5.7

(1) The spread over LIBOR at September 30, 2018 was 1.20%.

(2) Total borrowing capacity of the Credit Facility as of September 30, 2018 was $998 million. The spread over LIBOR at September 30, 2018 was 1.05%.

(3) The Company's share of the total borrowing capacity of the construction loan is $39.9 million.

(4) Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.



Cousins Properties	28	Q3 2018 Supplemental Information



DEBT SCHEDULE



Cousins Properties	29	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017			2018 1st			2018 2nd			2018 3rd			2018 YTD

FFO and EBITDAre
Net income available to common stockholders	79,109			4,751			168,089			12,067			31,368			216,275			16,043			21,276			19,485			56,804
Depreciation and amortization of real estate assets:
Consolidated properties	96,583			54,433			49,575			47,161			43,700			194,869			44,620			45,207			44,599			134,426
Share of unconsolidated joint ventures	13,904			4,195			3,478			2,862			2,656			13,191			3,419			3,016			3,119			9,554
Discontinued properties	47,345			—			—			—			—			—			—			—			—			—
Partners' share of real estate depreciation	(3,564		)	—			—			(4		)	(19		)	(23		)	(69		)	(70		)	(72		)	(211		)
(Gain) loss on sale of depreciated properties:
Consolidated properties	(73,533		)	18			(119,767		)	36			(13,330		)	(133,043		)	372			(5,317		)	33			(4,912		)
Share of unconsolidated joint ventures	—			3,539			(37,871		)	—			(718		)	(35,050		)	(48		)	63			—			15
Non-controlling interest related to unit holders	784			101			2,856			212			512			3,681			287			410			326			1,023
FFO	160,628			67,037			66,360			62,334			64,169			259,900			64,624			64,585			67,490			196,699
Interest Expense	41,094			12,066			10,444			9,363			9,509			41,382			11,293			11,305			11,208			33,806
Non-Real Estate Depreciation and Amortization	1,365			451			465			461			497			1,874			473			468			469			1,410
Impairment Loss	4,526			—			—			—			—			—			—			—			—			—
EBITDAre (1)	207,613			79,554			77,269			72,158			74,175			303,156			76,390			76,358			79,167			231,915
Acquisition and Transaction Costs	30,871			1,930			246			(677		)	162			1,661			91			137			—			228
(Gain) Loss on Extinguishment of Debt	5,180			—			(1,829		)	(429		)	—			(2,258		)	85			—			(93		)	(8		)
Adjusted EBITDAre (1)	243,664			81,484			75,686			71,052			74,337			302,559			76,566			76,495			79,074			232,135

Income from Unconsolidated Joint Ventures
Net Operating Income
Office Properties	21,399			6,909			6,750			6,890			6,638			27,187			6,933			6,685			6,557			20,175
Other Properties	7,386			2,267			859			44			696			3,866			488			543			437			1,468
Net Operating Income	28,785			9,176			7,609			6,934			7,334			31,053			7,421			7,228			6,994			21,643
Sales Less Cost of Sales	190			—			—			—			—			—			330			2,449			—			2,779
Termination Fees	3,000			959			195			132			8			1,294			—			—			—			—
Interest Expense	(8,423		)	(2,325		)	(1,922		)	(1,776		)	(1,836		)	(7,859		)	(1,515		)	(1,591		)	(1,657		)	(4,763		)
Other Income	916			505			45			33			185			768			20			27			36			83
Funds from Operations - Unconsolidated Joint Ventures	24,468			8,315			5,927			5,323			5,691			25,256			6,256			8,113			5,373			19,742
Gain (Loss) on Sale of Depreciated Investment Properties, net	$	—		$	(3,539	)	$	37,871		$	—		$	718		$	35,050		$	48		$	(61	)	$	(2	)	$	(15	)
Depreciation and Amortization of Real Estate	(13,905		)	(4,195		)	(3,478		)	(2,862		)	(2,656		)	(13,191		)	(3,419		)	(3,016		)	(3,119		)	(9,554		)
Net Income from Unconsolidated Joint Ventures	10,563			581			40,320			2,461			3,753			47,115			2,885			5,036			2,252			10,173

Income from Discontinued Operations
Rental Property Revenues	$	136,927		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Rental Property Operating Expenses	(58,336		)	—			—			—			—			—			—			—			—			—
Net Operating Income	78,591			—			—			—			—			—			—			—			—			—

Termination Fees	288			—			—			—			—			—			—			—			—			—
Interest and Other Expense	(6,022		)	—			—			—			—			—			—			—			—			—
Transaction Costs	(6,349		)	—			—			—			—			—			—			—			—			—



Cousins Properties	30	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017		2018 1st		2018 2nd		2018 3rd		2018 YTD

FFO from Discontinued Operations	66,508		—		—		—		—		—		—		—		—		—

Depreciation and Amortization of Real Estate	(47,345	)	—		—		—		—		—		—		—		—		—
Income from Discontinued Operations	19,163		—		—		—		—		—		—		—		—		—

Market Capitalization
Common Stock price at Period End	8.51		8.27		8.79		9.34		9.25		9.25		8.68		9.69		8.89		8.89
Number of Common Stock/Units Outstanding at Period End	401,596		426,823		426,942		426,995		426,995		426,995		427,218		427,368		427,359		427,359
Common Stock Capitalization	3,417,582		3,529,826		3,752,820		3,988,133		3,949,704		3,949,704		3,708,252		4,141,196		3,799,222		3,799,222

Debt	1,380,920		1,240,728		1,019,619		1,095,177		1,093,228		1,093,228		1,091,258		1,089,264		1,065,012		1,065,012
Share of Unconsolidated Debt	251,350		257,316		186,013		191,075		169,295		169,295		171,575		172,195		171,879		171,879
Debt (1)	1,632,270		1,498,044		1,205,632		1,286,252		1,262,523		1,262,523		1,262,833		1,261,459		1,236,891		1,236,891

Total Market Capitalization	5,049,852		5,027,870		4,958,452		5,274,385		5,212,227		5,212,227		4,971,085		5,402,655		5,036,113		5,036,113

Credit Ratios
Net Debt (Debt (1) minus Cash)	1,596,583		1,462,289		1,189,212		1,224,085		1,113,594		1,113,594		1,154,681		1,151,227		1,154,185		1,154,185
Total Market Capitalization	5,049,852		5,027,870		4,958,452		5,274,385		5,212,227		5,212,227		4,971,085		5,402,655		5,036,113		5,036,113
Net Debt / Total Market Capitalization	31.6	%	29.1	%	24.0	%	23.2	%	21.4	%	21.4	%	23.2	%	21.3	%	22.9	%	22.9	%

Total Assets - Consolidated	4,171,607		4,206,289		4,136,046		4,224,200		4,204,619		4,204,619		4,159,310		4,166,252		4,143,599		4,143,599
Accumulated Depreciation - Consolidated	269,339		326,039		303,266		352,425		380,908		380,908		427,216		474,064		546,989		546,989
Undepreciated Assets - Unconsolidated (1)	604,236		578,207		467,992		483,299		455,100		455,100		481,858		490,418		511,766		511,766
Less: Investment in Unconsolidated Joint Ventures	(179,397	)	(128,589	)	(101,532	)	(109,222	)	(101,414	)	(101,414	)	(145,465	)	(143,201	)	(154,070	)	(154,070	)
Total Undepreciated Assets (1)	4,865,785		4,981,946		4,805,772		4,950,702		4,939,213		4,939,213		4,922,919		4,987,533		5,048,284		5,048,284
Net Debt (Debt (1) minus Cash)	1,596,583		1,462,289		1,189,212		1,224,085		1,113,594		1,113,594		1,154,681		1,151,227		1,154,185		1,154,185
Undepreciated Assets (1)	4,865,785		4,981,946		4,805,772		4,950,702		4,939,213		4,939,213		4,922,919		4,987,533		5,048,284		5,048,284
Net Debt / Total Undepreciated Assets (1)	32.8	%	29.4	%	24.7	%	24.7	%	22.5	%	22.5	%	23.5	%	23.1	%	22.9	%	22.9	%

Coverage Ratios (1)
Interest Expense	41,094		12,066		10,444		9,363		9,509		41,382		11,293		11,305		11,208		33,806
Scheduled Principal Payments	11,563		3,810		3,334		2,846		2,869		12,859		2,900		2,929		2,733		8,562
Fixed Charges	52,657		15,876		13,778		12,209		12,378		54,241		14,193		14,234		13,941		42,368
EBITDAre	207,613		79,554		77,269		72,158		74,175		303,156		76,390		76,358		79,167		231,915
Fixed Charges Coverage Ratio (EBITDAre) (1)	3.94		5.01		5.61		5.91		5.99		5.59		5.38		5.36		5.68		5.47
Adjusted EBITDAre	243,664		81,484		75,686		71,052		74,337		302,559		76,566		76,495		79,074		232,135
Fixed Charges Coverage Ratio (Adjusted EBITDAre) (1)	4.63		5.13		5.49		5.82		6.01		5.58		5.39		5.37		5.67		5.48

Net Debt (Debt (1) minus Cash)	1,596,583		1,462,289		1,189,212		1,224,085		1,113,594		1,113,594		1,154,681		1,151,227		1,154,185		1,154,185
Annualized EBITDAre (2)	207,613		318,216		309,076		288,632		296,700		296,700		305,564		305,432		316,668		316,668
Net Debt / Annualized EBITDAre (2)	7.69		4.60		3.85		4.24		3.75		3.75		3.78		3.77		3.64		3.64
Annualized Adjusted EBITDAre (2)	306,116		325,936		302,744		284,208		297,348		297,348		306,264		305,980		316,296		316,296
Net Debt / Annualized Adjusted EBITDAre (2)	5.22		4.49		3.93		4.31		3.75		3.75		3.77		3.76		3.65		3.65



Cousins Properties	31	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017			2018 1st			2018 2nd			2018 3rd			2018 YTD


Dividend Information
Common Dividends (3)	$	74,126		$	25,161		$	25,212		$	25,201		$	25,202		$	100,776		$	27,315		$	27,326		$	27,363		$	82,004
FFO	160,628			67,037			66,360			62,334			64,169			259,900			64,624			64,585			67,490			196,699
FFO Payout Ratio	46.1		%	37.5		%	38.0		%	40.4		%	39.3		%	38.8		%	42.3		%	42.3		%	40.5		%	41.7		%

FFO	160,628			67,037			66,360			62,334			64,169			259,900			64,624			64,585			67,490			196,699
Amortization of Deferred Financing Costs	1,404			442			446			456			456			1,800			603			601			606			1,810
Non-Cash Stock-Based Compensation	1,647			489			480			507			507			1,983			543			579			560			1,682
Non-Real Estate Depreciation and Amortization	1,365			451			465			461			497			1,874			473			468			469			1,410
Lease Inducements	1,522			133			103			114			135			485			147			189			175			511
Straight Line Rent Ground Leases	104			110			110			110			110			440			110			110			243			463
Acquisition and Transaction Costs	30,871			1,930			246			(677		)	162			1,661			91			137			—			228
(Gain) Loss on Extinguishment of Debt	5,180			—			(1,829		)	(429		)	—			(2,258		)	85			—			(93		)	(8		)
Above and Below Market Ground Rent	(3		)	40			40			40			39			159			39			40			39			118
Impairment Loss	4,526			—			—			—			—			—			—			—			—			—
Above and Below Market Debt	(2,999		)	(3,190		)	(646		)	(51		)	(50		)	(3,937		)	(239		)	(239		)	(213		)	(691		)
Gain on Undepreciated Real Estate Sales	(3,770		)	—			(63		)	(4		)	—			(67		)	(330		)	(2,449		)	—			(2,779		)
Deferred Income - Tenant Improvements	(1,926		)	(625		)	(732		)	(761		)	(750		)	(2,868		)	(819		)	(857		)	(930		)	(2,606		)
Above and Below Market Rents	(7,097		)	(1,602		)	(1,929		)	(1,852		)	(1,838		)	(7,221		)	(1,793		)	(1,714		)	(1,730		)	(5,237		)
Straight Line Rental Revenue	(18,967		)	(9,608		)	(7,826		)	(6,825		)	(6,714		)	(30,973		)	(8,136		)	(5,690		)	(5,148		)	(18,974		)
Second Generation CAPEX	(46,876		)	(10,971		)	(7,569		)	(15,949		)	(18,996		)	(53,485		)	(11,256		)	(11,077		)	(15,152		)	(37,485		)
FAD (1)	125,609			44,636			47,656			37,474			37,727			167,493			44,142			44,683			46,316			135,141
Common Dividends (3)	74,126			25,161			25,212			25,201			25,202			100,776			27,315			27,326			27,363			82,004
FAD Payout Ratio (1)	59.0		%	56.4		%	52.9		%	67.2		%	66.8		%	60.2		%	61.9		%	61.2		%	59.1		%	60.7		%

Operations Ratios
Total Undepreciated Assets (1)	4,865,785			4,981,946			4,805,772			4,950,702			4,939,213			4,939,213			4,922,919			4,987,533			5,048,284			5,048,284
General and Administrative Expenses	25,591			6,182			8,618			7,193			5,530			27,523			6,809			8,071			3,913			18,793
Annualized General and Administrative Expenses (4) / Total Undepreciated Assets	0.53		%	0.50		%	0.72		%	0.58		%	0.45		%	0.56		%	0.55		%	0.65		%	0.31		%	0.50		%

2nd Generation TI & Leasing Costs & Building CAPEX
Second Generation Leasing Related Costs	33,236			10,710			7,258			15,480			17,168			50,616			10,319			10,379			14,853			35,551
Second Generation Building Improvements	13,640			261			311			469			1,828			2,869			937			698			299			1,934
	46,876			10,971			7,569			15,949			18,996			53,485			11,256			11,077			15,152			37,485

(1) Includes Company share of unconsolidated joint ventures. These amounts are derived from the amounts in the categories indicated that are recorded at the joint venture multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but believes that including these amounts in the categories indicated is meaningful to investors and analysts.
(2) Annualized equals quarter amount annualized.
(3) The fourth quarter 2016 dividend was declared and paid a quarter in arrears.
(4) Quarter amount represents quarter annualized; year-to-date represents year-to-date actual annualized.
Note: Amounts may differ slightly from other schedules contained herein due to rounding.



Cousins Properties	32	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net Income Available to Common Stockholders	$	19,485		$	12,067		$	56,804		$	184,907
Depreciation and amortization of real estate assets:
Consolidated properties	44,599			47,161			134,426			151,169
Share of unconsolidated joint ventures	3,119			2,862			9,554			10,535
Partners' share of real estate depreciation	(72		)	(4		)	(211		)	(4		)
(Gain) loss on sale of depreciated properties:
Consolidated properties	33			36			(4,912		)	(119,713		)
Share of unconsolidated joint ventures	—			—			15			(34,332		)
Non-controlling interest related to unit holders	326			212			1,023			3,169
Funds From Operations	$	67,490		$	62,334		$	196,699		$	195,731
Per Common Share — Diluted:
Net Income Available to Common Stockholders	$	0.05		$	0.03		$	0.14		$	0.45
Funds from Operations	$	0.16		$	0.15		$	0.46		$	0.46
Weighted Average Shares — Diluted	427,520			427,300			427,472			421,954

The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the National Association of Real Estate Investment Trusts' ("NAREIT") definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, impairment losses on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts and investors as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.



Cousins Properties	33	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS



	Three Months Ended						Nine Months Ended
Net Operating Income (in thousands)	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017

Net income	$	19,859		$	12,285		$	58,014		$	188,088
Net operating income from unconsolidated joint ventures	6,994			6,934			21,643			23,719
Fee income	(2,519		)	(2,597		)	(7,211		)	(6,387		)
Other income	(744		)	(993		)	(2,836		)	(9,593		)
Reimbursed expenses	955			895			2,757			2,667
General and administrative expenses	3,913			7,193			18,793			21,993
Interest expense	9,551			7,587			29,043			25,851
Depreciation and amortization	45,068			47,622			135,836			152,546
Acquisition and transaction costs	—			(677		)	228			1,499
Other expenses	93			423			457			1,063
Loss/(Gain) on extinguishment of debt	(93		)	(429		)	(8		)	(2,258		)
Income from unconsolidated joint ventures	(2,252		)	(2,461		)	(10,173		)	(43,362		)
Gain on sale of investment properties	33			33			(4,912		)	(119,729		)
Net Operating Income	$	80,858		$	75,815		$	241,631		$	236,097

Straight line rent	$	5,148		$	6,825		18,974			24,259
Non-cash income	2,485			2,496			7,332			7,148
Non-cash expense	(308		)	(149		)	(606		)	(448		)
Cash-Basis Net Operating Income	$	73,533		$	66,643		$	215,931		$	205,138

Net Operating Income
Same Property	$	72,890		$	70,977		$	216,898		$	212,207
Non-Same Property	7,968			4,838			24,733			23,890
	$	80,858		$	75,815		$	241,631		$	236,097

Cash-Basis Net Operating Income
Same Property	$	66,330		$	63,536		$	195,777		$	184,894
Non-Same Property	7,203			3,107			20,154			20,244
	$	73,533		$	66,643		$	215,931		$	205,138



Cousins Properties	34	Q3 2018 Supplemental Information



NON-GAAP FINANCIAL MEASURES - DISCUSSION

The Company uses non-GAAP financial measures in its filings and other public disclosures. The following is a list of non-GAAP financial measures that the Company commonly uses and a description for each measure of (1) the reasons that management believes the measure is useful to investors and (2) if material, any additional uses of the measure by management of the Company.

“2nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space in newly acquired buildings as well as building improvements on newly acquired buildings that management identifies as necessary to bring the building to the Company's operational standards. In addition, the Company excludes leasing costs and building improvements associated with properties identified as under redevelopment or repositioning.

“Cash-Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements, amortization of acquired above and below market rents, and non-cash ground lease expense.

“EBITDAre” is a supplemental operating performance measure used in the real estate industry. The Company calculates EBITDAre in accordance with the National Association of Real Estate Investment Trusts' (“NAREIT”) definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)) plus interest expense, income tax expense, depreciation and amortization, losses (gains) on the disposition of deprecated property, and impairment losses. All additions include the Company's share of unconsolidated joint ventures. Management believes that EBITDAre provides analysts and investors with uniform and appropriate information to use in various ratios that evaluate the Company's level of debt.

“Adjusted EBITDAre” represents EBITDAre plus loss on debt extinguishment and acquisition and transaction costs. Management believes that Adjusted EBITDAre provides analysts and investors with appropriate information to use in various ratios that evaluate the Company's level of debt.

"Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of non-cash items and gains (losses) on undepreciated real estate sales. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company's dividend policy with other real estate companies.

“Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the NAREIT definition, which is net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, impairment losses on depreciable investment property and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts and investors as a supplemental measure of an equity REIT's operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, as a performance measure for incentive compensation to its officers and other key employees.

“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 rental property operating expenses, excludes certain components from net income in order to provide results that are more closely related to a property's results of operations. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property's performance. Depreciation and amortization are also excluded from Net Operating Income for the reasons described under FFO above.

“Same Property Net Operating Income” represents Net Operating Income or Cash-Basis Net Operating Income for those office properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy or has been substantially complete and owned by the Company for each of the two periods presented. Same-Property Net Operating Income or Cash-Basis Same Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio.



Cousins Properties	35	Q3 2018 Supplemental Information

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