CUZ 8-K

Cousins Properties Inc (CUZ)

8-K 2020-04-30 For: 2020-04-30

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☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1 par value per share	CUZ	New York Stock Exchange	("NYSE")



Forward-Looking Statements	3
Earnings Release	4
Cousins COVID-19 Response	7
Condensed Consolidated Balance Sheets	8
Condensed Consolidated Statements of Operations	9
Key Performance Metrics	10
Funds From Operations - Summary	13
Funds From Operations - Detail	14
Portfolio Statistics	17
Same Property Performance	20
Office Leasing Activity	21
Office Lease Expirations	22
Top 20 Office Tenants	23
Tenant Industry Diversification	24
Investment Activity	25
Development Pipeline	27
Land Inventory	28
Debt Schedule	29
Joint Venture Information	32
Non-GAAP Financial Measures - Calculations and Reconciliations	33
Non-GAAP Financial Measures - Discussion	38



	March 31, 2020			December 31, 2019
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $633,654 and $577,139 in 2020 and 2019, respectively	$	5,740,337		$	5,669,324
Projects under development	368,414			410,097
Land	97,354			116,860
	6,206,105			6,196,281
Real estate assets and other assets held for sale, net of accumulated depreciation and amortization of $61,093 in 2019	—			360,582
Cash and cash equivalents	124,632			15,603
Restricted cash	1,947			2,005
Notes and accounts receivable	28,533			23,680
Deferred rents receivable	109,458			102,314
Investment in unconsolidated joint ventures	128,916			133,884
Intangible assets, net	240,286			257,649
Other assets	62,057			59,449
Total assets	$	6,901,934		$	7,151,447
Liabilities:
Notes payable	$	1,944,034		$	2,222,975
Accounts payable and accrued expenses	144,984			209,904
Deferred income	55,290			52,269
Intangible liabilities, net of accumulated amortization of $61,084 and $55,798 in 2020 and 2019, respectively	77,819			83,105
Other liabilities	120,809			134,128
Liabilities of real estate assets held for sale, net of accumulated amortization of $7,771 in 2019	—			21,231
Total liabilities	2,342,936			2,723,612
Commitments and contingencies
Equity:
Stockholders' investment:
Preferred stock, $1 par value, 20,000,000 shares authorized, 1,716,837 shares issued and outstanding in 2019	—			1,717
Common stock, $1 par value, 300,000,000 shares authorized, 151,124,621 and 149,347,382 shares issued in 2020 and 2019, respectively	151,125			149,347
Additional paid-in capital	5,538,875			5,493,883
Treasury stock at cost, 2,584,933 shares in 2020 and 2019	(148,473		)	(148,473		)
Distributions in excess of cumulative net income	(1,006,820		)	(1,137,200		)
Total stockholders' investment	4,534,707			4,359,274
Nonredeemable noncontrolling interests	24,291			68,561
Total equity	4,558,998			4,427,835
Total liabilities and equity	$	6,901,934		$	7,151,447



	Three Months Ended March 31,
	2020			2019
Revenues:
Rental property revenues	$	189,129		$	123,865
Fee income	4,732			8,728
Other	37			140
	193,898			132,733
Expenses:
Rental property operating expenses	64,538			43,487
Reimbursed expenses	521			932
General and administrative expenses	5,652			11,460
Interest expense	15,904			10,820
Depreciation and amortization	71,614			45,861
Transaction costs	365			3
Other	566			180
	159,160			112,743
Income from unconsolidated joint ventures	3,425			2,904
Gain on sales of investments in unconsolidated joint ventures	46,230			—
Gain on investment property transactions	90,916			13,111
Net income	175,309			36,005
Net income attributable to noncontrolling interests	(366		)	(664		)
Net income available to common stockholders	$	174,943		$	35,341

Net income per common share — basic	$	1.19		$	0.34
Net income per common share — diluted	$	1.18		$	0.34
Weighted average shares — basic	147,424			105,127
Weighted average shares — diluted	148,561			106,901



99.1	Press Release and Quarterly Information Package for the Quarter Ended March 31, 2020.


•	Same property net operating income on a cash basis increased 11.4%.


•	Second generation net rent per square foot on a cash basis increased 14.3%.


•	Sold Hearst Tower, a 966,000 square foot office property in Charlotte, for a gross sales price of $455.5 million and recognized a gain of $90.9 million.


•	Sold its interest in the Gateway Village joint venture to its venture partner for a gross sales price of $52.2 million and recognized a gain of $44.9 million. This sales price generated a 17% internal rate of return for the Company on its invested capital over the life of the venture, as stipulated in the partnership agreement.


•	Sold Woodcrest, a 386,000 square foot office property in Cherry Hill, New Jersey, for a gross sales price of $25.3 million.


•	Sold its remaining interest in the Wildwood Associates joint venture, which owned a 6.3 acre parcel of land in Atlanta, to its venture partner, recognizing a gain of $1.3 million on this transaction.


•	Commenced development of 100 Mill, a 287,000 square foot office building in Phoenix, with a total estimated project cost of $153 million and with pre-leasing of 44%, anchored by a growing Fortune 50 tenant.


•	An elimination of all remaining speculative leasing commencements for the balance of the year may reduce net operating income by approximately $1.5 million. Although the Company continues to have discussions with potential new customers for 2020 occupancy, the certainty and timing remains fluid.


•	Based on relief agreements we have completed, or are in active negotiations to complete, rent deferrals may reduce net operating income by $1 million to $3 million.



By:	/s/ Gregg D. Adzema



TABLE OF CONTENTS



FORWARD-LOOKING STATEMENTS



EARNINGS RELEASE


•	A reduction in parking revenue may reduce net operating income by $3.5 million to $9.5 million. This is primarily due to a potential reduction in transient parking, which comprises approximately 20% of total parking revenue.


•	General and administrative expenses may decrease by $3 million to $5 million due to lower long-term compensation and other potential non-compensation cost reduction measures.


•	Interest and other expense, net of capitalized interest, may decrease by $2 million to $4 million primarily due to lower short-term interest rates.


•	Fee and other income will increase by approximately $2 million due to a termination fee received from Parsley Energy at Colorado Tower in Austin. The Company has leased approximately 74,000 square feet of space currently occupied by Parsley to a leading global law firm. There will be a corresponding reduction of approximately $1 million in net operating income as this transition occurs.



	2018		2019 1st		2019 2nd		2019 3rd		2019 4th		2019		2020 1st
Property Statistics
Consolidated Operating Properties	23		24		33		33		34		34		32
Consolidated Rentable Square Feet (in thousands)	12,203		12,573		18,372		18,372		19,599		19,599		18,249
Unconsolidated Operating Properties	4		5		5		5		4		4		3
Unconsolidated Rentable Square Feet (in thousands)	3,113		3,394		3,394		3,394		2,168		2,168		1,107
Total Operating Properties	27		29		38		38		38		38		35
Total Rentable Square Feet (in thousands)	15,316		15,967		21,766		21,766		21,767		21,767		19,356

Office Leasing Activity (1)
Net Leased during the Period (square feet in thousands)	1,597		682		1,089		741		562		3,074		476
Net Effective Rent Calculation (per square foot)
Net Rent	$31.01		$27.86		$29.34		$33.66		$31.38		$30.43		$34.88
Net Free Rent	(0.85)		(0.49)		(0.52)		(0.64)		(1.01)		(0.63)		(1.92)
Leasing Commissions	(2.41)		(1.13)		(2.34)		(2.86)		(2.84)		(2.29)		(2.68)
Tenant Improvements	(4.40)		(1.74)		(4.69)		(3.13)		(4.89)		(3.69)		(5.27)
Leasing Costs	(7.66)		(3.36)		(7.55)		(6.63)		(8.74)		(6.61)		(9.87)
Net Effective Rent	$23.35		$24.50		$21.79		$27.03		$22.64		$23.82		$25.01
Change in Second Generation Net Rent	32.5	%	22.8	%	21.5	%	17.2	%	25.5	%	21.3	%	26.9	%
Change in Cash-Basis Second Generation Net Rent	13.2	%	7.1	%	4.9	%	8.1	%	12.6	%	7.7	%	14.3	%

Same Property Information (2)
Percent Leased (period end)	94.5	%	94.4	%	93.9	%	93.7	%	94.6	%	94.6	%	94.8	%
Weighted Average Occupancy	91.9	%	92.0	%	91.8	%	90.9	%	91.1	%	91.8	%	91.4	%
Change in Net Operating Income (over prior year period)	2.1	%	4.3	%	4.5	%	0.3	%	1.4	%	2.6	%	3.2	%
Change in Cash-Basis Net Operating Income (over prior year period)	4.7	%	4.0	%	5.5	%	2.9	%	6.0	%	4.8	%	11.4	%

Development Pipeline (3)
Estimated Project Costs (in thousands)	$245,900		$199,900		$427,900		$427,900		$565,600		$565,600		$565,600
Estimated Project Costs/ Total Undepreciated Assets	4.7	%	3.8	%	5.5	%	5.4	%	6.9	%	6.9	%	7.1	%

Market Capitalization (4)
Common Stock Price (period end)	$31.60		$38.64		$36.17		$37.59		$41.20		$41.20		$29.27
Common Stock/Units Outstanding (period end in thousands)	106,840		106,890		148,507		148,506		148,506		148,506		148,565
Equity Market Capitalization (in thousands)	$3,376,144		$4,130,230		$5,371,498		$5,582,341		$6,118,447		$6,118,447		$4,348,498
Debt (in thousands)	1,234,016		1,287,164		2,007,663		2,023,136		2,305,494		2,305,494		2,036,955
Total Market Capitalization (in thousands)	$4,610,152		$5,417,403		$7,379,161		$7,605,477		$8,423,941		$8,423,941		$6,385,453



	(amounts in thousands, except per share amounts)
	2018			2019 1st			2019 2nd			2019 3rd			2019 4th			2019			2020 1st
Net Operating Income	$	326,063		$	87,731		$	97,417		$	120,642		$	126,000		$	431,790		$	127,782
Gain on Sales of Undepreciated Investment Properties	3,291			13,132			1,337			21			3,692			18,182			1,335
Fee Income	10,089			8,728			7,075			7,495			5,220			28,518			4,732
Other Income	3,678			748			306			3,671			3,136			7,861			2,994
Reimbursed Expenses	(3,782		)	(932		)	(1,047		)	(1,290		)	(735		)	(4,004		)	(521		)
General and Administrative Expenses	(22,040		)	(11,460		)	(8,374		)	(5,852		)	(11,321		)	(37,007		)	(5,652		)
Interest Expense	(45,886		)	(12,574		)	(13,692		)	(16,377		)	(17,058		)	(59,701		)	(16,554		)
Other Expenses	(1,642		)	(404		)	(50,699		)	(1,658		)	(2,286		)	(55,047		)	(1,188		)
Depreciation and Amortization of Non-Real Estate Assets	(1,872		)	(456		)	(454		)	(443		)	(446		)	(1,799		)	(207		)
FFO (1)	$	267,899		$	84,513		$	31,869		$	106,209		$	106,202		$	328,793		$	112,721
TIER transaction costs	—			3			49,827			1,048			1,999			52,877			365
FFO before TIER transaction costs	$	267,899		$	84,516		$	81,696		$	107,257		$	108,201		$	381,670		$	113,086
Weighted Average Shares - Diluted	106,868			106,901			114,670			148,530			148,534			129,831			148,561
FFO per Share (1)	$	2.51		$	0.79		$	0.28		$	0.72		$	0.72		$	2.53		$	0.76
FFO per Share before TIER transaction costs	$	2.51		$	0.79		$	0.71		$	0.72		$	0.73		$	2.94		$	0.76



Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased		Weighted Average Occupancy (1)		% of Total Net Operating Income (2)	Property Level Debt ($000) (3)
Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	1Q20	4Q19	1Q20	4Q19	% of Total Net Operating Income (2)	Property Level Debt ($000) (3)

Spring & 8th (4)	765,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	6.1%	$	—
Terminus (4) (5)	1,226,000	Consolidated	100%	83.5%	83.3%	78.2%	78.8%	5.8%	201,376
Northpark (4)	1,539,000	Consolidated	100%	93.1%	92.8%	88.5%	85.7%	5.8%	—
3344 Peachtree	484,000	Consolidated	100%	97.1%	94.2%	86.4%	89.3%	4.4%	—
Promenade	777,000	Consolidated	100%	90.5%	90.5%	89.6%	89.6%	3.8%	95,005
Buckhead Plaza (4)	667,000	Consolidated	100%	77.5%	75.6%	72.6%	73.9%	3.0%	—
3350 Peachtree	413,000	Consolidated	100%	95.2%	95.2%	95.2%	95.0%	2.0%	—
1200 Peachtree (5)	370,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.9%	—
8000 Avalon	229,000	Consolidated	90%	100.0%	100.0%	100.0%	100.0%	1.6%	—
3348 Peachtree	258,000	Consolidated	100%	92.3%	92.3%	91.7%	92.1%	1.3%	—
Emory University Hospital Midtown	358,000	Unconsolidated	50%	98.3%	99.1%	97.7%	98.5%	0.9%	33,771
Meridian Mark Plaza	160,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	0.9%	—
ATLANTA	7,246,000			91.6%	91.2%	88.4%	88.2%	37.5%	330,152

The Domain (4) (5)	1,287,000	Consolidated	100%	99.7%	99.7%	89.3%	89.2%	7.6%	—
One Eleven Congress	519,000	Consolidated	100%	95.0%	97.1%	88.8%	88.3%	3.7%	—
The Terrace (4) (5)	619,000	Consolidated	100%	89.9%	89.9%	86.6%	88.5%	3.3%	—
San Jacinto Center	399,000	Consolidated	100%	96.2%	97.9%	87.8%	89.9%	3.0%	—
Colorado Tower	373,000	Consolidated	100%	97.8%	100.0%	98.7%	100.0%	2.8%	115,868
816 Congress	435,000	Consolidated	100%	90.2%	88.8%	86.3%	88.8%	2.2%	79,177
Domain Point (4) (5)	243,000	Consolidated	96.5%	90.6%	88.1%	76.8%	79.6%	1.0%	—
Research Park V	173,000	Consolidated	100%	97.1%	97.1%	97.1%	97.1%	0.9%	—
AUSTIN	4,048,000			95.4%	95.8%	88.8%	89.8%	24.5%	195,045

Bank of America Plaza (5)	891,000	Consolidated	100%	85.6%	90.4%	90.3%	88.4%	4.4%	—
Fifth Third Center	692,000	Consolidated	100%	99.8%	96.2%	96.2%	92.6%	3.8%	139,091
NASCAR Plaza	394,000	Consolidated	100%	100.0%	100.0%	99.3%	98.4%	2.3%	—
Dimensional Place (5)	281,000	Unconsolidated	50%	95.6%	95.6%	94.7%	94.7%	1.6%	—
CHARLOTTE	2,258,000			93.6%	94.4%	94.2%	92.1%	12.1%	139,091

Hayden Ferry (4)	789,000	Consolidated	100%	97.8%	97.8%	93.5%	92.8%	5.3%	—
Tempe Gateway	264,000	Consolidated	100%	94.8%	94.8%	94.8%	94.8%	1.7%	—
111 West Rio	225,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.2%	—
PHOENIX	1,278,000			97.6%	97.6%	94.9%	94.5%	8.2%	—

Corporate Center (4)	1,226,000	Consolidated	100%	97.9%	98.6%	93.2%	96.3%	5.1%	—
The Pointe	253,000	Consolidated	100%	94.4%	94.9%	93.4%	96.1%	1.0%	—
Harborview Plaza	205,000	Consolidated	100%	80.0%	80.0%	79.1%	62.8%	0.7%	—
TAMPA	1,684,000			95.2%	95.7%	91.5%	92.2%	6.8%	—



(1	)	Represents the weighted average occupancy of the property over the period for which the property was available for occupancy.
(2	)	The Company's share of net operating income for the three months ended March 31, 2020.
(3	)	The Company's share of property specific mortgage debt, including premiums and net of unamortized loan costs, as of March 31, 2020.
(4	)	Contains two or more buildings that are grouped together for reporting purposes.
(5	)	Not included in Same Property as of March 31, 2020.



	Net Operating Income ($ in thousands)
	Three Months Ended March 31,
	2020			2019			% Change
Rental Property Revenues (2)	$	115,251		$	115,042		0.2	%
Rental Property Operating Expenses (2)	39,073			41,195			(5.2	)%
Same Property Net Operating Income	$	76,178		$	73,847		3.2	%

Cash-Basis Rental Property Revenues (3)	$	109,999		$	104,832		4.9	%
Cash-Basis Rental Property Operating Expenses (4)	38,907			41,030			(5.2	)%
Cash-Basis Same Property Net Operating Income	$	71,092		$	63,802		11.4	%

End of Period Leased	94.8		%	94.5		%
Weighted Average Occupancy	91.4		%	92.0		%



(1)	Same Properties include those office properties that were fully operational in each of the comparable reporting periods. See Portfolio Statistics beginning on page 17 for footnotes indicating which properties are not included in Same Property. See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 33.
(2)	Rental Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures and exclude termination fee income. Net operating income for unconsolidated joint ventures is calculated as rental property revenues less termination fee income and rental 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 Rental Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Revenues, excluding termination fee income, straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)	Cash-Basis Rental Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Rental Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.



	Three Months Ended March 31, 2020
	New			Renewal			Expansion			Total
Gross leased (square feet)										632,090
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(156,307		)
Net leased (square feet)	249,494			130,322			95,967			475,783
Number of transactions	14			17			8			39
Lease term (years) (2)	8.4			5.5			7.8			7.5

Net Effective Rent Calculation (per square foot per year) (2)
Net annualized rent (3)	$	39.35		$	29.99		$	29.88		$	34.88
Net free rent	(2.64		)	(1.42		)	(0.73		)	(1.92		)
Leasing commissions	(2.86		)	(2.62		)	(2.32		)	(2.68		)
Tenant improvements	(6.83		)	(2.35		)	(5.16		)	(5.27		)
Leasing Costs	(12.33		)	(6.39		)	(8.21		)	(9.87		)
Net effective rent	$	27.02		$	23.60		$	21.67		$	25.01

Second generation leased square footage (4)(5)										245,802
Increase in second generation net rent per square foot (2)(3)(4)(5)										26.9		%
Increase in cash-basis second generation net rent per square foot (2)(4)(5)										14.3		%

(1) Office leasing activity is comprised of total square feet leased, unadjusted for ownership share, and excluding apartment and retail leasing.
(2) Weighted average.
(3) Straight-line 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) Increase in net rent at the end of term paid by the prior tenant compared to net rent at the beginning of term paid by the current tenant. For early renewals, the increase in net rent at the end of term of the original lease is compared to net rent at the beginning of the extended term of the lease.



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

2020	1,065,756	6.1	%	$	35,008	4.5	%	$	32.85
2021	2,027,468	11.6	%	76,511		9.8	%	37.74
2022	1,313,119	7.5	%	55,406		7.1	%	42.19
2023	1,734,101	9.9	%	72,322		9.2	%	41.71
2024	1,107,943	6.3	%	46,988		6.0	%	42.41
2025	1,979,304	11.3	%	89,746		11.5	%	45.34
2026	1,511,826	8.6	%	70,392		9.0	%	46.56
2027	1,502,737	8.6	%	63,513		8.1	%	42.27
2028	1,242,532	7.1	%	56,702		7.3	%	45.63
2029 &Thereafter	4,003,913	23.0	%	214,895		27.5	%	53.67

Total	17,488,699	100.0	%	$	781,483	100.0	%	$	44.69



(1) Company's share.
(2) Annual Contractual Rent is the estimated rent 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.



	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	NCR Corporation	1	1	762,090	$	35,578,695	5.4%	13
2	Amazon	4	3	430,099	20,315,885		3.1%	5
3	Bank of America	4	1	616,423	18,019,916		2.7%	3
4	Expedia, Inc.	1	1	296,955	13,893,857		2.1%	9
5	Norfolk Southern Corporation	2	1	394,621	9,701,740		1.5%	2
6	Apache Corporation	1	1	210,012	9,048,341		1.4%	5
7	Americredit Financial Services (dba GM Financial)	2	2	333,782	8,804,286		1.3%	10
8	Parsley Energy, L.P.	1	1	135,107	8,569,405		1.3%	5
9	Wells Fargo Bank, NA	4	3	198,376	8,469,674		1.3%	6
10	Ovintiv USA Inc. (fka Encana Oil & Gas (USA) Inc.) (3)	1	1	318,582	7,831,964		1.2%	7
11	ADP, LLC	1	1	225,000	7,561,812		1.2%	8
12	Westrock Shared Services, LLC	1	1	205,185	6,789,331		1.1%	10
13	McGuirewoods LLP	3	3	197,282	6,762,058		1.0%	6
14	Dimensional Fund Advisors LP	1	1	132,434	6,760,473		1.0%	14
15	Samsung Engineering America	1	1	133,860	6,019,230		0.9%	7
16	Anthem	1	1	198,834	6,012,164		0.9%	1
17	Regus Equity Business Centers, LLC	6	4	146,852	5,967,803		0.9%	5
18	Morgan Stanley	2	2	130,863	5,662,738		0.9%	8
19	General Services Administration	3	3	220,600	5,613,079		0.9%	3
20	OneTrust LLC	1	1	175,833	5,591,435		0.9%	5
	Total			5,462,790	$	202,973,886	31.0%	9

(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.
(3)	Ovintiv USA Inc. has multiple subleases for substantially all of its space. In the event of termination of the Ovintiv lease, such subleases would become direct leases with Cousins.
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.



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

2019
1200 Peachtree	Office	Atlanta	100%	1Q	370,000		$	82,000
TIER REIT, Inc.	Office	Various	Various	2Q	5,799,000		(2		)
Terminus (3)	Office	Atlanta	100%	4Q	1,226,000		246,000

2017
111 West Rio (4)	Office	Phoenix	100%	1Q	225,000		19,600

2016
Parkway Properties	Office	Various	Various	4Q	8,819,000		(5		)
Cousins Fund II, L.P. (6)	Office	Various	100%	4Q	(6	)	279,100

					16,439,000		$	626,700



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

2019
Dimensional Place	Office	Charlotte	50%	1Q	281,000	96,000

2018
Spring & 8th	Office	Atlanta	100%	1Q/4Q	765,000	332,500

2017
8000 Avalon	Office	Atlanta	90%	2Q	229,000	73,000
Carolina Square	Mixed	Chapel Hill	50%	3Q	468,000	123,000

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

					2,591,000	$	871,000



(1)	This schedule shows projects currently under active development through the substantial completion of construction. Amounts included in the estimated project cost column are 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.
(2)	Estimated and incurred project costs include financing costs only on project-specific debt, and exclude certain allocated capitalized costs required by GAAP that are not incurred in a joint venture and fair value adjustments for legacy TIER projects that were recorded as a result of the Merger.
(3)	Initial revenue recognition represents the quarter within which the Company estimates it will begin recognizing revenue under GAAP.
(4)	Estimated stabilization is the quarter within which the Company estimates it will achieve 90% economic occupancy. Interest, taxes, and operating expenses are capitalized on the unoccupied portion of the building for the period beginning with initial occupancy until the earlier of the achievement of 90% economic occupancy or one year.
(5)	300 Colorado estimated project cost will be funded with a combination of $67 million of equity contributed by the joint venture partners, followed by a $126 million construction loan.



(1)	As of March 31, 2020, included two ground leases with future obligations to purchase. In April 2020, the Company purchased one of the two ground leased parcels.
(2)	Corporate Center 5 is controlled through a long-term ground lease.



				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	2020			2021			2022			2023			2024			Thereafter			Total Principal			Deferred Loan Costs			Above / Below Market Value		Total

Consolidated Debt - Floating Rate
Term Loan, Unsecured (LIBOR + 1.20%-1.70%) (1)	100%	2.19%	12/2/21	—			250,000			—			—			—			—			250,000			(673		)	—		249,327
Credit Facility, Unsecured (LIBOR + 1.05%-1.45%) (2)	100%	2.04%	1/3/23	—			—			—			—			—			—			—			—			—		—
Total Floating Rate Debt				—			250,000			—			—			—			—			250,000			(673		)	—		249,327

Consolidated Debt - Fixed Rate
2019 Senior Notes, Unsecured	100%	3.95%	7/6/29	—			—			—			—			—			275,000			275,000			(1,039		)	—		273,961
2017 Senior Notes, Unsecured	100%	3.91%	7/6/25	—			—			—			—			—			250,000			250,000			(961		)	—		249,039
2019 Senior Notes, Unsecured	100%	3.86%	7/6/28	—			—			—			—			—			250,000			250,000			(936		)	—		249,064
Fifth Third Center	100%	3.37%	10/1/26	2,465			3,386			3,502			3,622			3,746			122,802			139,522			(431		)	—		139,091
2019 Senior Notes, Unsecured	100%	3.78%	7/6/27	—			—			—			—			—			125,000			125,000			(463		)	—		124,537
Terminus 100	100%	5.25%	1/1/23	2,378			3,319			3,497			108,181			—			—			117,375			—			6,577		123,952
Colorado Tower	100%	3.45%	9/1/26	1,826			2,510			2,598			2,689			2,783			104,080			116,486			(618		)	—		115,868
2017 Senior Notes, Unsecured	100%	4.09%	7/6/27	—			—			—			—			—			100,000			100,000			(387		)	—		99,613
Promenade	100%	4.27%	10/1/22	2,559			3,541			89,052			—			—			—			95,152			(147		)	—		95,005
816 Congress	100%	3.75%	11/1/24	1,322			1,821			1,891			1,963			72,558			—			79,554			(377		)	—		79,177
Terminus 200	100%	3.79%	1/1/23	1,301			1,791			1,861			70,700			—			—			75,654			—			1,770		77,424
Legacy Union One	100%	4.24%	1/1/23	—			—			—			66,000			—			—			66,000			—			1,976		67,976
Total Fixed Rate Debt				11,851			16,368			102,401			253,155			79,087			1,226,882			1,689,743			(5,359		)	10,323		1,694,707

Total Consolidated Debt				11,851			266,368			102,401			253,155			79,087			1,226,882			1,939,743			(6,032		)	10,323		1,944,034

Unconsolidated Debt - Floating Rate
Carolina Square (LIBOR + 1.90%) (3)	50%	2.89%	5/1/20	38,037			—			—			—			—			—			38,037			—			—		38,037
300 Colorado (LIBOR + 2.25%) (4)	50%	3.24%	1/17/22	—			—			21,113			—			—			—			21,113			—			—		21,113
Total Floating Rate Debt				38,037			—			21,113			—			—			—			59,150			—			—		59,150

Unconsolidated Debt - Fixed Rate
Emory University Hospital Midtown	50%	3.50%	6/1/23	634			872			903			31,436			—			—			33,846			(75		)			33,771
Total Fixed Rate Debt				634			872			903			31,436			—			—			33,846			(75		)	—		33,771

Total Unconsolidated Debt				38,671			872			22,016			31,436			—			—			92,996			(75		)	—		92,921

Total Debt				$	50,522		$	267,240		$	124,417		$	284,591		$	79,087		$	1,226,882		$	2,032,739		$	(6,107	)	$	10,323	$	2,036,955

Total Maturities (5)				$	37,872		$	250,000		$	104,230		$	275,932		$	70,865		$	1,215,159		$	1,954,058
% of Maturities				2		%	13		%	5		%	14		%	4		%	62		%	100		%



	Total Debt Principal ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	309,150	15	%	2.34	%	1.5
Fixed Rate Debt	1,723,589		85	%	3.94	%	6.2
Total Debt	$	2,032,739	100	%	3.70	%	5.5