COUSINS PROPERTIES INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - COUSINS PROPERTIES INC	a8-kpressreleaseex9913q16.htm
8-K - 8-K - COUSINS PROPERTIES INC	a8-k3q16.htm

Q3 2016 SUPPLEMENTAL INFORMATION



TABLE OF CONTENTS



Forward-Looking Statements	3
Key Performance Metrics	4
Funds From Operations - Summary	7
Funds From Operations - Detail	8
Portfolio Statistics	11
Same Property Performance	13
Office Leasing Activity	14
Office Lease Expirations	15
Top 20 Office Tenants	17
Tenant Industry Diversification	18
Investment Activity	19
Development Pipeline	21
Land Inventory	22
Debt Schedule	23
Non-GAAP Financial Measures - Calculations and Reconciliations	25
Non-GAAP Financial Measures - Discussion	30
Legacy Parkway Properties, Inc. Portfolio Statistics	31



Cousins Properties Incorporated		Q3 2016 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, 2015 and in the Quarterly Report on Form 10-Q for the three months ended September 30, 2016. 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 business and financial strategy; our ability to obtain future financing arrangements; future acquisitions and future dispositions of operating assets; future acquisitions of land; future development and redevelopment opportunities; future dispositions of land and other non-core assets; future repurchases of common stock; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; statements about the benefits of the transactions involving the Company and Parkway Properties Inc. ("Parkway"), including future financial and operating results, plans, objectives, expectations, and intentions; 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; benefits of the transactions to tenants, employees, stockholders, and other constituents of the combined company; integrating our companies; and cost savings.

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 and financing; 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 and investments or from dispositions; the potential dilutive effect of common stock offerings; the failure to achieve benefits from the repurchase of common stock; the availability of buyers and adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry in general, and the commercial real estate markets in particular; changes to our strategy with regard to land and other non-core holdings that require impairment losses to be recognized; leasing risks, including the ability to obtain new tenants or renew expiring tenants, and the ability to lease newly developed and/or recently acquired space; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; the availability of sufficient investment opportunities; 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); 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; the ability to successfully integrate our operations and employees in connection with the transactions with Parkway; the ability to realize anticipated benefits and synergies of the transactions with Parkway; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; potential changes to tax legislation; changes in demand for developed properties; risks associated with the acquisition, development, expansion, leasing and management of properties; risks associated with the geographic concentration of the Company; the potential impact of the transactions with Parkway on relationships, including with tenants, employees, customers, and competitors; the unfavorable outcome of any legal proceedings that have been or may be instituted against the Company, Parkway, or Parkway, Inc.; significant costs related to uninsured losses, condemnation, or environmental issues; the amount of the costs, fees, expenses and charges related to the transactions with Parkway; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission (“SEC”) by the Company, Parkway, and Parkway, Inc.

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 Incorporated	3	Q3 2016 Supplemental Information



KEY PERFORMANCE METRICS



	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD
Property Statistics
Consolidated Operating Properties	12		13		13		12		12		12		11		11		11		11
Consolidated Rentable Square Feet (in thousands)	13,034		13,407		13,407		12,563		12,122		12,122		11,993		11,993		11,993		11,993
Unconsolidated Operating Properties	5		5		5		6		6		6		6		6		6		6
Unconsolidated Rentable Square Feet (in thousands)	3,129		3,129		3,129		3,431		3,434		3,434		3,435		3,435		3,435		3,435
Total Operating Properties	17		18		18		18		18		18		17		17		17		17
Total Rentable Square Feet (in thousands)	16,163		16,536		16,536		15,994		15,556		15,556		15,428		15,428		15,428		15,428


Office Leasing Activity (1)
Net Leased during the period (square feet in thousands)	1,874		441		521		770		1,240		2,972		220		402		971		1,593
Net Rent (per square foot)	$22.88		$18.93		$23.23		$23.42		$15.13		$18.30		$23.55		$22.73		$23.51		$23.22
Total Leasing Costs (per square foot)	(5.71)		(4.62)		(6.27)		(5.83)		(1.66)		(3.64)		(6.31)		(7.08)		(6.18)		(6.55)
Net Effective Rent (per square foot)	$17.17		$14.31		$16.96		$17.59		$13.47		$14.66		$17.24		$15.65		$17.33		$16.67
Change in Second Generation Net Rent	38.0	%	33.6	%	43.8	%	28.1	%	38.5	%	36.7	%	18.9	%	17.2	%	27.9	%	21.6	%
Change in Cash-Basis Second Generation Net Rent	19.7	%	8.0	%	32.8	%	14.1	%	23.8	%	19.8	%	1.8%		4.3	%	9.1	%	5.4	%

Same Property Information (2)
Percent Leased (period end)	91.2	%	91.7	%	91.7	%	91.8	%	91.6	%	91.6	%	90.3	%	90.7	%	91.2	%	91.2	%
Weighted Average Occupancy	89.7	%	91.5	%	90.4	%	90.6	%	90.7	%	90.7	%	89.4	%	89.2	%	89.5	%	89.4	%
Change in Net Operating Income (over prior year period)	3.6	%	5.2	%	1.6	%	1.1	%	6.2	%	3.3	%	4.3	%	1.4	%	3.6	%	3.1	%
Change in Cash-Basis Net Operating Income (over prior year period)	12.3	%	15.9	%	5.2	%	1.2	%	8.2	%	7.3	%	8.6	%	3.9	%	4.3	%	5.6	%

Development Pipeline
Estimated Project Costs (in thousands) (3)	$226,575		$100,475		$161,975		$306,500		$261,500		$261,500		$326,300		$340,200		$506,200		$506,200
Estimated Project Costs (3) / Total Undepreciated Assets	7.0	%	3.0	%	4.7	%	8.6	%	7.6	%	7.6	%	9.5	%	9.6	%	13.7	%	13.7	%

Market Capitalization (4)
Common Stock Price (period end)	$11.42		$10.60		$10.38		$9.22		$9.43		$9.43		$10.38		$10.40		$10.44		$10.44
Common Shares Outstanding (period end in thousands)	216,513		216,470		216,686		214,671		211,513		211,513		210,107		210,171		210,170		210,170
Equity Market Capitalization (in thousands)	$2,472,578		$2,294,582		$2,249,201		$1,979,267		$1,994,568		$1,994,568		$2,180,911		$2,185,778		$2,194,175		$2,194,175
Debt (in thousands)	1,007,502		1,067,376		1,075,013		1,006,764		947,017		947,017		992,241		999,999		1,112,322		1,112,322
Total Market Capitalization (in thousands)	$3,480,080		$3,361,958		$3,324,214		$2,986,031		$2,941,585		$2,941,585		$3,173,152		$3,185,777		$3,306,497		$3,306,497

Credit Ratios (4)
Debt/Total Market Capitalization	29.0	%	31.7	%	32.3	%	33.7	%	32.2	%	32.2	%	31.3	%	31.4	%	33.6	%	33.6	%
Debt/Total Undepreciated Assets	29.5	%	30.7	%	30.6	%	28.3	%	27.5	%	27.5	%	28.8	%	28.3	%	30.1	%	30.1	%
Fixed Charges Coverage	4.27		4.67		4.54		5.19		4.98		4.84		4.49		4.43		4.46		4.46
Debt/Annualized EBITDA	4.05		4.77		4.86		4.02		4.00		4.00		4.66		4.51		4.76		4.76



Cousins Properties Incorporated	4	Q3 2016 Supplemental Information



KEY PERFORMANCE METRICS



	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD
Dividend Information (4)
Common Dividend per Share	$0.30		$0.08		$0.08		$0.08		$0.08		$0.32		$0.08		$0.08		$0.08		$0.24
FFO Payout Ratio	37.3	%	37.8	%	38.3	%	33.0	%	35.0	%	35.9	%	38.9	%	38.8	%	36.2	%	38.0	%
FAD Payout Ratio	61.6	%	68.1	%	71.5	%	54.8	%	58.9	%	62.6	%	56.7	%	69.0	%	63.4	%	62.6	%

Operations Ratios (4)
Annualized General and Administrative Expenses/Total Undepreciated Assets	0.58	%	0.41	%	0.67	%	0.33	%	0.53	%	0.50	%	0.99	%	0.53	%	0.47	%	0.63	%

Additional Information (4)
Straight Line Rental Revenue	$22,093		$6,285		$5,786		$4,623		$3,315		$20,009		$3,595		$3,434		$3,449		$10,478
Above and Below Market Rents Amortization	$8,047		$2,030		$1,973		$2,030		$1,948		$7,981		$1,834		$1,854		$1,907		$5,595
Second Generation Capital Expenditures	$35,054		$12,139		$13,259		$14,208		$14,608		$54,214		$7,904		$13,166		$13,968		$35,038

(1) See Office Leasing Activity on page 14 for additional detail and explanations.

(2) Same Property Information is derived from the pool of office properties, as defined, in the period originally reported. See Same Property Performance on page 13 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 25 for additional information.

(3) Cousins' share of development expenditures.

(4) See Non-GAAP Financial Measures - Calculations and Reconciliations.



Cousins Properties Incorporated	5	Q3 2016 Supplemental Information



KEY PERFORMANCE METRICS

(1) Total rentable square feet is based on the total portfolio.

(2) Office properties only.

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



Cousins Properties Incorporated	6	Q3 2016 Supplemental Information



FUNDS FROM OPERATIONS - SUMMARY



	2014			2015 1st			2015 2nd			2015 3rd			2015 4th			2015			2016 1st			2016 2nd			2016 3rd			2016 YTD

Net Operating Income
Office	$	206,551		$	56,734		$	59,269		$	59,329		$	59,878		$	235,210		$	57,894		$	57,275		$	59,873		$	175,042
Other	9,122			1,319			1,505			1,487			1,711			6,022			1,619			1,733			1,748			5,100
Total Net Operating Income	215,673			58,053			60,774			60,816			61,589			241,232			59,513			59,008			61,621			180,142
Sales Less Cost of Sales	3,910			810			(324		)	3,016			403			3,905			—			—			—			—
Fee Income	12,520			1,816			1,704			1,686			2,091			7,297			2,199			1,824			1,945			5,968
Other Income	5,401			407			238			845			961			2,451			1,121			280			287			1,688

Reimbursed Expenses	(3,652		)	(1,111		)	(717		)	(686		)	(916		)	(3,430		)	(870		)	(798		)	(795		)	(2,463		)
General and Administrative Expenses	(19,787		)	(3,493		)	(5,936		)	(2,976		)	(4,513		)	(16,918		)	(8,242		)	(4,691		)	(4,368		)	(17,301		)
Interest Expense	(36,474		)	(9,498		)	(9,696		)	(9,518		)	(9,466		)	(38,178		)	(9,421		)	(9,360		)	(9,748		)	(28,529		)
Other Expenses	(5,009		)	(578		)	(431		)	(302		)	(630		)	(1,941		)	(466		)	(2,640		)	(2,175		)	(5,281		)
Income Tax Benefit (Provision)	20			—			—			—			—			—			—			—			—			—
Depreciation and Amortization of Non-Real Estate Assets	(913		)	(471		)	(374		)	(414		)	(410		)	(1,669		)	(377		)	(335		)	(328		)	(1,040		)
Preferred Stock Dividends and Original Issuance Costs	(6,485		)	—			—			—			—			—			—			—			—			—
FFO	$	165,204		$	45,935		$	45,238		$	52,467		$	49,109		$	192,749		$	43,457		$	43,288		$	46,439		$	133,184
Weighted Average Shares - Basic	204,216			216,568			216,630			216,261			213,872			215,827			210,904			210,129			210,170			210,400
Weighted Average Shares - Diluted	204,460			216,754			216,766			216,374			213,978			215,979			210,974			210,362			210,326			210,528
FFO per Share - Basic and Diluted	0.81			0.21			0.21			0.24			0.23			0.89			0.21			0.21			0.22			0.63



Cousins Properties Incorporated	7	Q3 2016 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL



	2014			2015 1st			2015 2nd			2015 3rd			2015 4th			2015			2016 1st			2016 2nd			2016 3rd			2016 YTD

Net Operating Income
Office Consolidated Properties
Greenway Plaza	$	77,379		$	18,403		$	18,916		$	19,544		$	19,688		$	76,551		$	18,692		$	18,990		$	20,195		$	57,877
Post Oak Central	23,437			6,675			6,516			6,495			6,973			26,659			6,626			6,135			6,213			18,974
Northpark Town Center	5,794			5,825			5,651			5,127			5,797			22,400			5,607			5,097			5,599			16,303
191 Peachtree Tower	17,009			4,082			4,060			4,173			4,706			17,021			4,516			4,306			4,445			13,267
Fifth Third Center	5,631			3,641			3,709			3,770			3,836			14,956			4,238			4,349			4,451			13,038
Promenade	11,435			3,542			3,581			3,623			3,239			13,985			3,740			3,419			3,839			10,998
The American Cancer Society Center	12,373			3,114			3,206			3,039			3,073			12,432			3,310			3,151			3,198			9,659
Colorado Tower	—			328			1,797			2,156			2,487			6,768			2,724			3,064			3,221			9,009
816 Congress Avenue	6,992			1,858			2,117			2,268			2,283			8,526			2,468			2,555			2,514			7,537
Meridian Mark Plaza	3,728			918			954			946			959			3,777			908			857			954			2,719
Research Park V	—			—			—			—			—			—			—			144			288			432
Other (1)	22,815			3,717			4,273			3,544			2,111			13,645			15			(5		)	(57		)	(47		)
Subtotal - Office Consolidated	186,593			52,103			54,780			54,685			55,152			216,720			52,844			52,062			54,860			159,766

Office Unconsolidated Properties (2)
Terminus 100	7,555			1,922			1,754			1,780			1,812			7,268			1,872			1,978			1,899			5,749
Terminus 200	5,504			1,436			1,442			1,575			1,616			6,069			1,658			1,770			1,678			5,106
Emory University Hospital Midtown Medical Office Tower	3,960			987			996			992			999			3,974			987			1,000			975			2,962
Gateway Village (3)	1,208			302			302			302			302			1,208			536			451			460			1,447
Other (1)	(51		)	(5		)	(5		)	(5		)	(3		)	(18		)	(3		)	14			1			12
Subtotal - Office Unconsolidated	18,176			4,642			4,489			4,644			4,726			18,501			5,050			5,213			5,013			15,276

Discontinued Operations	1,782			(11		)	—			—			—			(11		)	—			—			—			—

Total Office Net Operating Income	206,551			56,734			59,269			59,329			59,878			235,210			57,894			57,275			59,873			175,042

Other
Consolidated Properties (1)	1,383			(24		)	10			—			205			191			23			(8		)	1			16

Unconsolidated Properties (2)
Emory Point Apartments (Phase I)	4,647			1,071			1,244			1,213			1,171			4,699			1,185			1,250			1,014			3,449
Emory Point Retail (Phase I)	1,080			281			255			222			136			894			248			218			247			713
Emory Point Apartments (Phase II)	—			—			—			1			180			181			96			204			408			708
Emory Point Retail (Phase II)	—			—			—			56			24			80			72			75			84			231
Other (1)	1,993			(6		)	(4		)	(5		)	(5		)	(20		)	(5		)	(6		)	(6		)	(17		)
Subtotal - Other	7,720			1,346			1,495			1,487			1,506			5,834			1,596			1,741			1,747			5,084

Discontinued Operations	19			(3		)	—			—			—			(3		)	—			—			—			—

Total Other Net Operating Income	9,122			1,319			1,505			1,487			1,711			6,022			1,619			1,733			1,748			5,100



Total Net Operating Income	215,673			58,053			60,774			60,816			61,589			241,232			59,513			59,008			61,621			180,142



Cousins Properties Incorporated	8	Q3 2016 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL



	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD

Sales Less Cost of Sales
Land Sales Less Cost of Sales - Consolidated	1,703		810		(566	)	978		403		1,625		—		—		—		—
Land Sales Less Cost of Sales - Unconsolidated (2)	2,207		—		242		2,038		—		2,280		—		—		—		—
Total Sales Less Cost of Sales	3,910		810		(324	)	3,016		403		3,905		—		—		—		—


Fee Income
Development Fees	7,265		308		461		531		478		1,778		608		486		549		1,643
Management Fees (4)	5,082		1,503		1,184		1,128		1,373		5,188		1,325		1,263		1,253		3,841
Leasing & Other Fees	173		5		59		27		240		331		266		75		143		484
Total Fee Income	12,520		1,816		1,704		1,686		2,091		7,297		2,199		1,824		1,945		5,968

Other Income
Termination Fees	4,573		193		28		499		547		1,267		186		102		—		288
Termination Fees - Discontinued Operations	2		—		—		—		—		—		—		—		—		—
Interest and Other Income	261		55		22		222		138		437		389		27		153		569
Interest and Other Income - Discontinued Operations	4		—		—		—		—		—		—		—		—		—
Other - Unconsolidated (2)	561		159		188		124		276		747		546		151		134		831
Total Other Income	5,401		407		238		845		961		2,451		1,121		280		287		1,688


Reimbursed Expenses	(3,652	)	(1,111	)	(717	)	(686	)	(916	)	(3,430	)	(870	)	(798	)	(795	)	(2,463	)

General and Administrative Expenses	(19,787	)	(3,493	)	(5,936	)	(2,976	)	(4,513	)	(16,918	)	(8,242	)	(4,691	)	(4,368	)	(17,301	)

Interest Expense
Consolidated Debt
The American Cancer Society Center	(8,710	)	(2,131	)	(2,147	)	(2,164	)	(2,157	)	(8,599	)	(2,126	)	(2,119	)	(2,134	)	(6,379	)
Post Oak Central	(8,127	)	(2,010	)	(2,001	)	(1,992	)	(1,983	)	(7,986	)	(1,974	)	(1,965	)	(1,956	)	(5,895	)
Promenade	(4,850	)	(1,194	)	(1,187	)	(1,180	)	(1,173	)	(4,734	)	(1,165	)	(1,157	)	(1,150	)	(3,472	)
Unsecured Credit Facility	(3,354	)	(966	)	(1,072	)	(1,089	)	(962	)	(4,089	)	(832	)	(1,053	)	(870	)	(2,755	)
191 Peachtree Tower	(3,444	)	(861	)	(861	)	(861	)	(861	)	(3,444	)	(861	)	(860	)	(856	)	(2,577	)
816 Congress Avenue	(709	)	(817	)	(818	)	(817	)	(817	)	(3,269	)	(817	)	(817	)	(817	)	(2,451	)
Fifth Third Center	—		—		—		—		—		—		—		—		(427	)	(427	)
Meridian Mark Plaza	(1,562	)	(387	)	(385	)	(384	)	(382	)	(1,538	)	(381	)	(379	)	(377	)	(1,137	)
Colorado Tower	—		—		—		—		—		—		—		—		(353	)	(353	)
The Points at Waterview	(872	)	(213	)	(211	)	(209	)	(8	)	(641	)	—		—		—		—
Other	(234	)	—		—		—		—		—		—		—		—		—
Capitalized	2,752		902		813		1,023		839		3,577		742		1,016		1,230		2,988
Subtotal - Consolidated	(29,110	)	(7,677	)	(7,869	)	(7,673	)	(7,504	)	(30,723	)	(7,414	)	(7,334	)	(7,710	)	(22,458	)

Unconsolidated Debt (2)
Terminus 100	(3,494	)	(865	)	(861	)	(857	)	(853	)	(3,436	)	(848	)	(844	)	(840	)	(2,532	)
Terminus 200	(1,560	)	(390	)	(390	)	(390	)	(390	)	(1,560	)	(390	)	(389	)	(387	)	(1,166	)
Emory University Hospital Midtown Medical Office Tower	(1,336	)	(334	)	(334	)	(333	)	(332	)	(1,333	)	(330	)	(329	)	(327	)	(986	)
Emory Point	(974	)	(232	)	(242	)	(265	)	(387	)	(1,126	)	(439	)	(464	)	(484	)	(1,387	)
Other	—		—		—		—		—		—		—		—		—		—
Subtotal - Unconsolidated	(7,364	)	(1,821	)	(1,827	)	(1,845	)	(1,962	)	(7,455	)	(2,007	)	(2,026	)	(2,038	)	(6,071	)

Total Interest Expense	(36,474	)	(9,498	)	(9,696	)	(9,518	)	(9,466	)	(38,178	)	(9,421	)	(9,360	)	(9,748	)	(28,529	)



Cousins Properties Incorporated	9	Q3 2016 Supplemental Information



FUNDS FROM OPERATIONS - DETAIL



	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD

Other Expenses
Noncontrolling Interests	(424	)	—		—		—		(111	)	(111	)	—		—		—		—
Property Taxes and Other Holding Costs	(1,223	)	(287	)	(242	)	(141	)	(158	)	(828	)	(89	)	(98	)	(95	)	(282	)
Predevelopment & Other	(2,047	)	(106	)	(187	)	(147	)	(82	)	(522	)	(108	)	(118	)	(140	)	(366	)
Severance	(185	)	(102	)	—		5		(84	)	(181	)	(250	)	—		—		(250	)
Acquisition Costs	(1,130	)	(83	)	(2	)	(19	)	(195	)	(299	)	—		—		—		—
Merger Costs	—		—		—		—		—		—		(19	)	(2,424	)	(1,940	)	(4,383	)
Total Other Expenses	(5,009	)	(578	)	(431	)	(302	)	(630	)	(1,941	)	(466	)	(2,640	)	(2,175	)	(5,281	)

Income Tax Provision (Benefit)	20		—		—		—		—		—		—		—		—		—

Depreciation and Amortization of Non-Real Estate Assets
Consolidated	(867	)	(423	)	(374	)	(414	)	(410	)	(1,621	)	(377	)	(335	)	(328	)	(1,040	)
Unconsolidated	(46	)	(48	)	—		—		—		(48	)	—		—		—		—
Total Non-Real Estate Depreciation and Amortization	(913	)	(471	)	(374	)	(414	)	(410	)	(1,669	)	(377	)	(335	)	(328	)	(1,040	)

Preferred Stock Dividends and Original Issuance Costs	(6,485	)	—		—		—		—		—		—		—		—		—

FFO	165,204		45,935		45,238		52,467		49,109		192,749		43,457		43,288		46,439		133,184
Weighted Average Shares - Basic	204,216		216,568		216,630		216,261		213,872		215,827		210,904		210,129		210,170		210,400
Weighted Average Shares - Diluted	204,460		216,754		216,766		216,374		213,978		215,979		210,974		210,362		210,326		210,528
FFO per Share - Basic and Diluted	0.81		0.21		0.21		0.24		0.23		0.89		0.21		0.21		0.22		0.63

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

(1) Represents NOI for properties sold prior to September 30, 2016.

(2) 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.

(3) The Company receives an 11.46% current return on its $11.1 million investment in Gateway Village and, when certain other revenue criteria are met, receives additional returns. The Company recognizes these amount as NOI from this venture. After December 1, 2016, net income and cash flows will be allocated 50% to each joint venture member.

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



Cousins Properties Incorporated	10	Q3 2016 Supplemental Information



PORTFOLIO STATISTICS



	Property Description	Metropolitan Area	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest		End of Period Leased 3Q16		End of Period Leased 2Q16		Weighted Average Occupancy 3Q16		Weighted Average Occupancy 2Q16		% of Total Net Operating Income (1)		Property Level Debt ($000) (2)
	Office
	Greenway Plaza (3)	Houston	4,348,000	Consolidated	100	%	89.9	%	88.9	%	88.7	%	88.2	%	33	%	$	—
	Post Oak Central (3)	Houston	1,280,000	Consolidated	100	%	92.6	%	92.8	%	93.2	%	93.2	%	10	%	179,170
	Colorado Tower	Austin	373,000	Consolidated	100	%	100.0	%	100.0	%	99.2	%	98.8	%	5	%	120,000
	816 Congress	Austin	435,000	Consolidated	100	%	94.6	%	94.6	%	91.3	%	93.4	%	4	%	85,000
	Research Park V	Austin	173,000	Consolidated	100	%	97.1	%	57.6	%	33.5	%	19.9	%	—	%	—
	Texas		6,609,000												52	%	384,170

	Northpark Town Center (3)	Atlanta	1,528,000	Consolidated	100	%	87.8	%	85.8	%	84.7	%	84.2	%	9	%	—
	191 Peachtree Tower (4)	Atlanta	1,225,000	Consolidated	100	%	92.5	%	92.5	%	89.6	%	88.2	%	7	%	99,188
	Promenade	Atlanta	777,000	Consolidated	100	%	94.6	%	93.7	%	90.0	%	89.9	%	6	%	106,068
	The American Cancer Society Center	Atlanta	996,000	Consolidated	100	%	87.3	%	87.3	%	83.4	%	83.4	%	5	%	127,989
	Terminus 100	Atlanta	660,000	Unconsolidated	50	%	90.6	%	90.6	%	89.6	%	92.1	%	3	%	63,656
	Terminus 200	Atlanta	566,000	Unconsolidated	50	%	91.9	%	91.3	%	91.3	%	91.3	%	3	%	40,629
	Meridian Mark Plaza	Atlanta	160,000	Consolidated	100	%	100.0	%	100.0	%	99.4	%	93.3	%	2	%	24,639
	Emory University Hospital Midtown Medical Office Tower	Atlanta	358,000	Unconsolidated	50	%	96.2	%	96.4	%	96.3	%	96.4	%	2	%	36,594
	Georgia		6,270,000												37	%	498,763

	Fifth Third Center	Charlotte	698,000	Consolidated	100	%	96.7	%	96.3	%	91.1	%	90.2	%	7	%	150,000
	Gateway Village	Charlotte	1,065,000	Unconsolidated	50	%	100.0	%	100.0	%	100.0	%	100.0	%	1	%	1,633
	North Carolina		1,763,000												8	%	151,633
	Total Office Properties		14,642,000												97	%	$	1,034,566
	Other
	Emory Point Apartments (Phase I) (5)	Atlanta	404,000	Unconsolidated	75	%	96.2	%	88.0	%	92.0	%	89.4	%	2	%	36,123
	Emory Point Retail (Phase I)	Atlanta	80,000	Unconsolidated	75	%	84.3	%	84.7	%	84.7	%	84.7	%	—	%	7,399
	Emory Point Apartments (Phase II) (5)	Atlanta	257,000	Unconsolidated	75	%	87.0	%	75.9	%	79.0	%	59.5	%	1	%	28,519
	Emory Point Retail (Phase II)	Atlanta	45,000	Unconsolidated	75	%	78.8	%	75.7	%	69.1	%	68.3	%	—	%	5,033
	Total Other		786,000												3	%	$	77,074
	Total Portfolio		15,428,000												100	%	$	1,111,640


(1)	Net Operating Income represents the Company's share of rental property revenues less rental property operating expenses. Calculation is based on amounts for the three months ended September 30, 2016.
(2)	Property level debt represents the Company's share of total debt as of September 30, 2016.
(3)	Contains multiple buildings that are grouped together for reporting purposes.
(4)	On October 25, 2016, the Company sold 191 Peachtree Tower.
(5)	Phase I consists of 443 units and Phase II consists of 307 units.



Cousins Properties Incorporated	11	Q3 2016 Supplemental Information



PORTFOLIO STATISTICS



Cousins Properties Incorporated	12	Q3 2016 Supplemental Information



SAME PROPERTY PERFORMANCE (1)



	Net Operating Income ($ in thousands)
	Three Months Ended
	September 30, 2016			September 30, 2015			June 30, 2016			3Q16 vs. 3Q15 % Change		3Q16 vs. 2Q16% Change
Property Revenues (2)	$	79,141		$	77,637		$	76,561		1.9	%	3.4	%
Property Operating Expenses (2)	33,233			33,315			32,400			(0.2	)%	2.6	%
Property Net Operating Income	$	45,908		$	44,322		$	44,161		3.6	%	4.0	%

Cash Basis Property Revenues (3)	$	75,524		$	73,831		$	73,368		2.3	%	2.9	%
Cash Basis Property Operating Expenses (4)	33,248			33,313			32,415			(0.2	)%	2.6	%
Cash Basis Property Net Operating Income	$	42,276		$	40,518		$	40,953		4.3	%	3.2	%

End of Period Leased	91.2		%	91.5		%	90.7		%
Weighted Average Occupancy	89.5		%	89.7		%	89.2		%

	Nine Months Ended
	September 30, 2016			September 30, 2015			% Change
Property Revenues (2)	$	231,078		$	227,781		1.4		%
Property Operating Expenses (2)	96,231			96,981			(0.8		)%
Property Net Operating Income	$	134,847		$	130,800		3.1		%

Cash Basis Property Revenues (3)	$	221,117		$	215,253		2.7		%
Cash Basis Property Operating Expenses (4)	96,272			97,012			(0.8		)%
Cash Basis Property Net Operating Income	$	124,845		$	118,241		5.6		%



(1)	Same Properties include those office properties that were operational and stabilized on January 1, 2015, excluding properties subsequently sold. See Non-GAAP Financial Measures - Calculation and Reconciliations. Properties included in this reporting period are as follows:
	Greenway Plaza	The American Cancer Society Center	Promenade
	Post Oak Central	Terminus 100	Meridian Mark Plaza
	191 Peachtree Tower	Terminus 200	Emory University Hospital Midtown Medical Office Tower
	816 Congress
(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 revenue 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 Incorporated	13	Q3 2016 Supplemental Information



OFFICE LEASING ACTIVITY(1)



	Three Months Ended September 30, 2016												Nine Months Ended September 30, 2016
	New			Renewal			Expansion			Total			New			Renewal			Expansion			Total
Gross leased (square feet)										1,017,442												1,728,712
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(46,735)												(135,560)
Net leased (square feet)	682,381			238,151			50,175			970,707			958,879			518,137			116,136			1,593,152
Number of transactions	17			27			8			52			43			60			18			121
Lease term (years) (2)	14.2			7.2			6.4			12.1			12.6			6.6			6.4			10.2

Net rent (per square foot) (2)(3)(4)	$	23.27		$	23.14		$	25.95		$	23.51		$	23.50		$	22.94		$	23.46		$	23.22
Total leasing costs (per square foot) (2)(3)(5)	(8.12		)	(4.76		)	(7.54		)	(6.18		)	(8.04		)	(5.12		)	(7.60		)	(6.55		)
Net effective rent (per square foot) (2)(3)	$	15.15		$	18.38		$	18.41		$	17.33		$	15.46		$	17.82		$	15.86		$	16.67

Second generation leased square feet (2)(6)										243,680												643,376
Increase in second generation net rent (2)(4)(6)										27.9		%										21.6		%
Increase in cash basis second generation net rent (2)(6)(7)										9.1		%										5.4		%

(1) Excludes apartment and retail leasing at our mixed-use projects.
(2) Weighted average.
(3) Excludes NCR Phase II lease of 260,000 square feet and Dimensional Fund Advisors lease of 282,000 square feet due to final financial terms not being determined until construction completion. The Company previously disclosed the Dimensional Fund Advisors lease in a press release on March 30, 2016. The size of the lease increased and has now been finalized. This lease was previously not included in the Company's Office Leasing Activity.
(4) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term.
(5) Includes tenant improvements, external leasing commissions, and free rent.
(6) 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.
(7) 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 Incorporated	14	Q3 2016 Supplemental Information



OFFICE LEASE EXPIRATIONS

Lease Expirations by Year



Year of Expiration	Square Feet Expiring (1)	% of Leased Space		Annual Contractual Rents ($000's) (1)(2)		% of Total Annual Contractual Rents		Annual Contractual Rent/Sq. Ft. (2)

2016	181,749	1.5	%	$	2,943	1.0	%	$	16.19
2017	604,837	5.0	%	13,446		4.5	%	22.23
2018	608,755	5.0	%	14,082		4.7	%	23.13
2019	1,507,231	12.3	%	33,683		11.3	%	22.35
2020	769,379	6.3	%	17,969		6.0	%	23.36
2021	1,283,092	10.5	%	32,002		10.7	%	24.94
2022	1,543,773	12.6	%	37,602		12.6	%	24.36
2023	1,587,523	13.0	%	36,499		12.2	%	22.99
2024	889,751	7.3	%	24,783		8.3	%	27.85
2025 &Thereafter	3,242,887	26.5	%	85,442		28.7	%	26.35

Total	12,218,977	100.0	%	$	298,451	100.0	%	$	24.43

Lease Expirations Greater than 100,000 Square Feet Through Year End 2019



Expiration Date	Tenant	Market	Building	Square Feet Expiring (1)
January 2019	National Union Fire Insurance Company	Atlanta	Northpark Town Center	105,362
September 2019	Stewart Information Services	Houston	Post Oak Central	182,915
December 2019	Apache Corporation	Houston	Post Oak Central	524,342



(1) Company's share.
(2) Annual Contractual Rent shown is the rate in the year of expiration. It includes the minimum contractual rent paid by the tenant which may or may not include a base year of operating expenses depending upon the terms of the lease.



Cousins Properties Incorporated	15	Q3 2016 Supplemental Information



OFFICE LEASE EXPIRATIONS

Note: Company's share



Cousins Properties Incorporated	16	Q3 2016 Supplemental Information



TOP 20 OFFICE TENANTS



	Tenant (1)	Company's Share of Square Footage	Company's Share of Annualized Base Rent		Percentage of Total Company's Share of Annualized Base Rent (2)	Average Remaining Lease Term (Years) (3)
1	Occidental Oil & Gas Corp.	961,491	$	18,578,926	8%	10
2	Apache Corporation	524,342	9,335,895		4%	3
3	Invesco Management Group, Inc.	400,332	6,792,682		3%	7
4	Bank of America (4)	829,923	6,005,290		2%	6
5	McGuireWoods LLP	198,648	5,743,205		2%	9
6	Deloitte, LLP	259,998	5,556,157		2%	8
7	Transocean Offshore Deepwater	255,413	5,096,491		2%	6
8	Smith, Gambrell & Russell, LLP	159,136	4,863,347		2%	5
9	American Cancer Society, Inc.	275,160	4,830,511		2%	4
10	Parsley Energy, L.P.	135,107	4,016,731		2%	8
11	US South Communications	196,223	3,895,888		2%	5
12	CO Space Properties, LLC	120,298	3,610,496		2%	4
13	Stewart Information Services Corporation	189,474	3,375,634		1%	3
14	Direct Energy	201,554	3,259,583		1%	7
15	National Union Fire Insurance Company	106,472	2,983,164		1%	2
16	Gulf South Pipeline Company LP	98,616	2,366,784		1%	8
17	Emory University	90,093	2,254,945		1%	10
18	GDF SUEZ Energy North America	134,602	2,158,312		1%	4
19	Thompson, Ventulett, Stainback & Assoc	67,418	2,157,376		1%	8
20	Veritiv Corporation	68,315	2,110,934		1%	10
	Total Top 20	5,272,615	$	98,992,351	41%	6

(1)	In some cases, the actual tenant may be an affiliate of the entity shown.
(2)	Annualized Base Rent represents the annualized minimum rent 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 Base Rent represents the annualized minimum contractual rent the tenant will pay in the first month it is required to pay rent which may or may not include a base year of operating expenses depending upon the terms of the lease.
(3)	Weighted average.
(4)	A portion of the Company's economic exposure for this tenant is limited to a fixed return through a joint venture arrangement.
Note:	This schedule includes tenants whose leases have commenced and/or have taken occupancy. Leases that have been signed but have not commenced are excluded from this schedule.



Cousins Properties Incorporated	17	Q3 2016 Supplemental Information



TENANT INDUSTRY DIVERSIFICATION

(1) Based on total portfolio holdings.



Cousins Properties Incorporated	18	Q3 2016 Supplemental Information



INVESTMENT ACTIVITY

Completed Property Acquisitions



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

2014
Fifth Third Center	Office	Charlotte	100.0	%	3Q	698,000	$	215,000
Northpark Town Center	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

2012
2100 Ross	Office	Dallas	100.0	%	3Q	844,000	59,200


						10,679,000	$	2,229,500

Completed Property Developments



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

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

2012
Mahan Village	Retail	Tallahassee	50.5	%	4Q	147,000	25,800

						1,479,000	$	374,600



Cousins Properties Incorporated	19	Q3 2016 Supplemental Information



INVESTMENT ACTIVITY

Completed Property Dispositions



Property	Type	Metropolitan Area	Company's Ownership Interest		Timing	Square Feet	Gross Sales Price ($ in thousands)
2016
100 North Point Center East	Office	Atlanta	100.0	%	1Q	129,000	$	22,000

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
600 University Park Place	Office	Birmingham	100.0	%	1Q	123,000	19,700
Lakeshore Park Plaza	Office	Birmingham	100.0	%	3Q	197,000	25,000
Mahan Village	Retail	Florida	50.5	%	4Q	147,000	29,500
Cousins Watkins LLC	Retail	Other	50.5	%	4Q	339,000	79,500
777 Main	Office	Fort Worth	100.0	%	4Q	980,000	167,000

2013
Terminus 100	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
CP Venture Two LLC	Retail	Other	10.3	%	3Q	934,000	226,100
CP Venture Five LLC	Retail	Other	11.5	%	3Q	1,179,000	296,200
Inhibitex	Office	Atlanta	100.0	%	4Q	51,000	8,300

2012
The Avenue Collierville	Retail	Memphis	100.0	%	2Q	511,000	55,000
Galleria 75	Office	Atlanta	100.0	%	2Q	111,000	9,200
Ten Peachtree Place	Office	Atlanta	50.0	%	2Q	260,000	45,300
The Avenue Webb Gin	Retail	Atlanta	100.0	%	4Q	322,000	59,600
The Avenue Forsyth	Retail	Atlanta	88.5	%	4Q	524,000	119,000
Cosmopolitan Center	Office	Atlanta	100.0	%	4Q	51,000	7,000
Palisades West	Office	Austin	50.0	%	4Q	373,000	64,800
Presbyterian Medical Plaza	Office	Charlotte	11.5	%	4Q	69,000	4,500


						9,404,000	$	1,892,500



Cousins Properties Incorporated	20	Q3 2016 Supplemental Information



DEVELOPMENT PIPELINE (1)



Project	Type	Metropolitan Area	Company's Ownership Interest		Project Start Date	Number of Square Feet /Apartment Units	Estimated Project Cost (2) ($ in thousands)		Project Cost Incurred to Date (2) ($ in thousands)		Percent Leased		Initial Occupancy (3)	Estimated Stabilization (4)


Carolina Square	Mixed	Chapel Hill, NC	50	%	2Q15		$	123,000	$	51,449
Office						158,000					65	%	3Q17	3Q18
Retail						44,000					61	%	3Q17	3Q18
Apartments						246					—	%	3Q17	3Q18

864 Spring Street (NCR Phase I)	Office	Atlanta, GA	100	%	3Q15	494,000	213,000		72,392		100	%	1Q18	1Q18

8000 Avalon	Office	Atlanta, GA	90	%	1Q16	224,000	73,000		25,760		19	%	2Q17	2Q18

858 Spring Street (NCR Phase II)	Office	Atlanta, GA	100	%	4Q16	260,000	119,000		13,616		100	%	4Q18	4Q18

Dimensional Place	Office	Charlotte, NC	50	%	4Q16	282,000	94,000		15,168		100	%	4Q18	4Q18

Total							$	622,000	$	178,385



(1)	This schedule shows projects currently under active development and/or projects with a contractual obligation 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)	Amount represents 100% of the estimated project cost. Carolina Square is expected to be funded with a combination of equity from the partners and up to $79.8 million from a construction loan, which has $9.3 million outstanding as of September 30, 2016.
(3)	Represents the quarter which the Company estimates the first tenant occupies space.
(4)	Stabilization represents the earlier of the quarter in which the Company estimates it will achieve 90% economic occupancy or one year from initial occupancy.



Cousins Properties Incorporated	21	Q3 2016 Supplemental Information



LAND INVENTORY



	Metropolitan Area	Company's Ownership Interest	Total Developable Land (Acres)		Company's Share
Commercial

North Point	Atlanta	100.0%	32
Wildwood Office Park	Atlanta	50.0%	22
The Avenue Forsyth-Adjacent Land	Atlanta	100.0%	10
120 West Trinity	Atlanta	20.0%	5
Georgia			69

Victory Center	Dallas	75.0%	3
Texas			3

Commercial Land Held (Acres)			72		56
Cost Basis of Commercial Land Held			$	37,817	$	12,478

Residential (1)

Paulding County	Atlanta	50.0%	478
Callaway Gardens (2)	Atlanta	100.0%	217
Georgia			695

Padre Island	Corpus Christi	50.0%	15
Texas			15

Residential Land Held (Acres)			710		464
Cost Basis of Residential Land Held			$	11,834	$	8,297

Grand Total Land Held (Acres)			782		520
Grand Total Cost Basis of Land Held			$	49,651	$	20,775



(1)	Residential represents land that may be sold to third parties as lots or in large tracts for residential development.
(2)	Company's ownership interest is shown at 100% as Callaway Gardens is owned in a joint venture which is consolidated with the Company.



Cousins Properties Incorporated	22	Q3 2016 Supplemental Information



DEBT SCHEDULE



						Company's Share of Debt Maturities and Principal Payments
Description (Interest Rate Base, if not fixed)	Company's Ownership Interest		Rate at End of Quarter		Maturity Date	2016		2017		2018		2019		2020		Thereafter		Total Principal		Deferred Loan Costs (1)			Total		Company's Share Recourse (2)
Consolidated Debt

Floating Rate Debt
Credit Facility, Unsecured (LIBOR + 1.10%-1.45%; $500mm facility)(3)	100.0	%	1.63	%	5/28/19	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—	$	—
Total Floating Rate Debt						—		—		—		—		—		—		—		—			—		—

Fixed Rate Debt
The American Cancer Society Center (4)	100.0	%	6.45	%	9/1/17	481		127,508		—		—		—		—		127,989		(79		)	127,910		—
191 Peachtree Tower	100.0	%	3.35	%	10/1/18	493		2,013		96,682		—		—		—		99,188		(188		)	99,000		—
Meridian Mark Plaza	100.0	%	6.00	%	8/1/20	117		484		514		546		22,978		—		24,639		(102		)	24,537		—
Post Oak Central (5)	100.0	%	4.26	%	10/1/20	885		3,636		3,794		3,959		166,896		—		179,170		(699		)	178,471		—
Promenade	100.0	%	4.27	%	10/1/22	727		2,986		3,116		3,252		3,394		92,593		106,068		(353		)	105,715		—
816 Congress	100.0	%	3.75	%	11/1/24	128		1,568		1,628		1,690		1,754		78,232		85,000		(665		)	84,335		—
Colorado Tower	100.00	%	3.45	%	9/1/26	—		—		573		2,343		2,425		114,659		120,000		(955		)	119,045		—
Fifth Third Center	100.00	%	3.37	%	10/1/26	484		2,959		3,061		3,166		3,274		137,056		150,000		(635		)	149,365		—
Total Fixed Rate Debt						3,315		141,154		109,368		14,956		200,721		422,540		892,054		(3,676		)	888,378		—

Total Consolidated Debt						3,315		141,154		109,368		14,956		200,721		422,540		892,054		(3,676		)	888,378		—

Unconsolidated Debt (6)

Floating Rate Debt
Emory Point I (LIBOR + 1.75%) (7)	75.0	%	2.28	%	4/9/17	—		43,522		—		—		—		—		43,522		(12		)	43,510		—
Emory Point II (LIBOR + 1.85%, $46mm facility) (7)	75.0	%	2.38	%	4/9/17	—		33,552		—		—		—		—		33,552		—			33,552		3,355
Carolina Square (LIBOR + 1.90%, $79.755mm facility)	50.0	%	2.43	%	5/1/18	—		—		4,644		—		—		—		4,644		—			4,644		1,161
Total Floating Rate Debt						—		77,074		4,644		—		—		—		81,718		(12		)	81,706		4,516

Fixed Rate Debt
Gateway Village (8)	50.0	%	6.41	%	12/1/16	1,633		—		—		—		—		—		1,633		—			1,633		—
Terminus 100	50.0	%	5.25	%	1/1/23	326		1,346		1,418		1,494		1,575		57,498		63,656		(80		)	63,576		—
Terminus 200	50.0	%	3.79	%	1/1/23	188		770		800		831		863		37,177		40,629		(35		)	40,594		—
Emory University Hospital Midtown Medical Office Tower	50.0	%	3.50	%	6/1/23	185		758		785		813		842		33,211		36,594		(159		)	36,435		—
Total Fixed Rate Debt						2,332		2,874		3,003		3,138		3,280		127,886		142,512		(274		)	142,238		—

Total Unconsolidated Debt						2,332		79,948		7,647		3,138		3,280		127,886		224,230		(286		)	223,944		4,516

Total Debt						$	5,647	$	221,102	$	117,015	$	18,094	$	204,001	$	550,426	$	1,116,284	$	(3,962	)	$	1,112,322	$	4,516

Total Maturities (9)						$	—	$	204,582	$	101,326	$	—	$	189,874	$	502,614	$	998,396
% of Maturities						—%		21%		10%		—%		19%		50%		100%

Floating and Fixed Rate Debt Analysis



	Total Debt ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	81,718	7	%	2.33	%	0.4
Fixed Rate Debt	1,034,566		93	%	4.24	%	6.1
Total Debt	$	1,116,284	100	%	4.10	%	5.7

(1) A new accounting standard was adopted in the first quarter of 2016 that requires deferred loan costs of mortgage debt to be recorded as a reduction from notes payable on the balance sheet. This standard does not apply to revolving credit facilities and such costs related to credit facilities continue to be recorded in other assets on the balance sheet.

(2) Non-recourse loans are subject to customary carve-outs.

(3) The spread over LIBOR at September 30, 2016 was 1.10%.

(4) The real estate and other assets of this property are restricted under a loan agreement such that these assets are not available to settle other debts of the Company.

(5) In connection with the Spin-Off, the Company distributed the Post Oak Central loan to Parkway, Inc. on October 7, 2016.

(6) Unconsolidated debt represents debt at the unconsolidated joint ventures indicated multiplied by the Company's ownership interest. The Company does not control the operations of these joint ventures, but believes that presenting the Company's share of unconsolidated joint venture debt is meaningful to investors and analysts.

(7) The Emory Point I and Emory Point II loans each have a six month extension option followed by a one year extension option, if certain conditions are met.

(8) Based on the structure of the venture and the nature of the related debt, the Company excludes the Gateway Village debt in certain of its leverage calculations.

(9) 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 Incorporated	23	Q3 2016 Supplemental Information



DEBT SCHEDULE



Cousins Properties Incorporated	24	Q3 2016 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD

Net Operating Income

Office Consolidated Properties	186,593		52,103		54,780		54,685		55,152		216,720		52,844		52,062		54,860		159,766
Other Consolidated Properties	1,385		(24	)	10		—		205		191		23		(8	)	1		16
Net Operating Income - Consolidated	187,978		52,079		54,790		54,685		55,357		216,911		52,867		52,054		54,861		159,782

Rental Property Revenues	343,910		90,033		96,177		96,016		90,842		373,068		88,476		90,735		92,621		271,832
Rental Property Operating Expenses	(155,934	)	(37,954	)	(41,387	)	(41,331	)	(35,485	)	(156,157	)	(35,609	)	(38,681	)	(37,760	)	(112,050	)
Net Operating Income - Consolidated	187,976		52,079		54,790		54,685		55,357		216,911		52,867		52,054		54,861		159,782

Income from Discontinued Operations
Rental Property Revenues	2,927		4		—		—		—		4		—		—		—		—
Rental Property Operating Expenses	(1,128	)	(18	)	—		—		—		(18	)	—		—		—		—
Net Operating Income	1,799		(14	)	—		—		—		(14	)	—		—		—		—

Termination Fees	2		—		—		—		—		—		—		—		—		—
Interest and Other Income (Expense)	3		—		(6	)	6		(21	)	(21	)	—		—		—		—
FFO from Discontinued Operations	1,804		(14	)	(6	)	6		(21	)	(35	)	—		—		—		—

Third Party Management and Leasing Revenues	—		—		—		—		—		—		—		—		—		—
Third Party Management and Leasing Expenses	(2	)	—		—		—		—		—		—		—		—		—
FFO from Third Party Management and Leasing	(2	)	—		—		—		—		—		—		—		—		—

FFO from Discontinued Operations	1,802		(14	)	(6	)	6		(21	)	(35	)	—		—		—		—

Depreciation and Amortization of Real Estate	—		—		—		—		—		—		—		—		—		—
Income from Discontinued Operations	1,802		(14	)	(6	)	6		(21	)	(35	)	—		—		—		—

FFO and EBITDA
Net income	45,519		7,203		7,951		53,620		56,744		125,518		22,796		7,765		11,657		42,218
Depreciation and amortization of real estate assets:
Consolidated properties	139,151		35,724		34,505		32,123		31,442		133,796		31,592		32,046		31,514		95,152
Share of unconsolidated joint ventures	11,915		2,743		2,772		2,891		3,239		11,645		3,259		3,231		3,268		9,758
(Gain) loss on sale of depreciated properties:
Consolidated properties	(30,188	)	(286	)	10		(36,167	)	(42,316	)	(78,210	)	(14,190	)	246		—		(13,944	)
Discontinued properties	(1,767	)	551		—		—		—		—		—		—		—		—
Non-controlling interest related to the sale of depreciated properties	574		—		—		—		—		—		—		—		—		—
FFO	165,204		45,935		45,238		52,467		49,109		192,749		43,457		43,288		46,439		133,184
Interest Expense	36,474		9,498		9,696		9,518		9,466		38,178		9,421		9,359		9,748		28,528
Non-Real Estate Depreciation and Amortization	913		423		374		414		410		1,621		377		335		328		1,040
Income Tax Provision (Benefit)	(20	)	—		—		—		—		—		—		—		—		—
Gain on Sale of Third Party Management & Leasing Business	3		—		—		—		—		—		—		—		—		—
Acquisition and Merger Costs	1,130		83		2		19		195		299		19		2,424		1,940		4,383
Preferred Stock Dividends and Original Issuance Costs	6,485		—		—		—		—		—		—		—		—		—
EBITDA (2)	210,189		55,939		55,310		62,418		59,180		232,847		53,274		55,406		58,455		167,135



Cousins Properties Incorporated	25	Q3 2016 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD

Income (Loss) from Unconsolidated Joint Ventures
Net Operating Income
Office Properties	18,176		4,642		4,489		4,644		4,726		18,501		5,049		5,213		5,013		15,275
Other Properties	7,720		1,346		1,495		1,487		1,506		5,834		1,597		1,741		1,747		5,085
Net Operating Income	25,896		5,988		5,984		6,131		6,232		24,335		6,646		6,954		6,760		20,360
Sales Less Cost of Sales	2,207		—		242		2,038		—		2,280		—		—		—		—
Termination Fees	185		120		28		271		—		419		—		—		—		—
Interest Expense	(7,364	)	(1,822	)	(1,827	)	(1,845	)	(1,961	)	(7,455	)	(2,007	)	(2,026	)	(2,038	)	(6,071	)
Other Income/(Expense)	536		68		106		12		182		368		454		87		72		613
Depreciation and Amortization of Non-Real Estate Assets	(46	)	—		—		—		—		—		—		—		—		—
Funds from Operations - Unconsolidated Joint Ventures	21,414		4,354		4,533		6,607		4,453		19,947		5,093		5,015		4,794		14,902
Gain on Sale of Depreciated Investment Properties, net	1,767		—		—		—		—		—		—		—		—		—
Depreciation and Amortization of Real Estate	(11,913	)	(2,743	)	(2,772	)	(2,891	)	(3,239	)	(11,645	)	(3,259	)	(3,231	)	(3,268	)	(9,758	)
Net Income from Unconsolidated Joint Ventures	11,268		1,611		1,761		3,716		1,214		8,302		1,834		1,784		1,526		5,144

Market Capitalization
Common Stock price at Period End	11.42		10.60		10.38		9.22		9.43		9.43		10.38		10.40		10.44		10.44
Number of Common Shares Outstanding at Period End	216,513		216,470		216,686		214,671		211,513		211,513		210,107		210,171		210,170		210,170
Common Stock Capitalization	2,472,578		2,294,582		2,249,201		1,979,267		1,994,568		1,994,568		2,180,911		2,185,778		2,194,175		2,194,175

Preferred Stock Series B Price at Liquidation Value	—		—		—		—		—		—		—		—		—		—
Preferred Stock at Liquidation Value	—		—		—		—		—		—		—		—		—		—

Debt	792,344		847,948		849,772		779,570		721,293		721,293		767,811		777,485		888,378		888,378
Share of Unconsolidated Debt	215,158		219,428		225,241		227,194		225,724		225,724		224,430		222,514		223,944		223,944
Debt (2)	1,007,502		1,067,376		1,075,013		1,006,764		947,017		947,017		992,241		999,999		1,112,322		1,112,322

Total Market Capitalization	3,480,080		3,361,958		3,324,214		2,986,031		2,941,585		2,941,585		3,173,152		3,185,777		3,306,497		3,306,497

Credit Ratios
Debt (2)	1,007,502		1,067,376		1,075,013		1,006,764		947,017		947,017		992,241		999,999		1,112,322		1,112,322
Total Market Capitalization	3,480,080		3,361,958		3,324,214		2,986,031		2,941,585		2,941,585		3,173,152		3,185,777		3,306,497		3,306,497
Debt (2) / Total Market Capitalization	29.0	%	31.7	%	32.3	%	33.7	%	32.2	%	32.2	%	31.3	%	31.4	%	33.6	%	33.6	%

Total Assets - Consolidated	2,667,330		2,684,661		2,685,466		2,635,397		2,597,803		2,597,803		2,610,408		2,622,995		2,760,734		2,760,734
Accumulated Depreciation - Consolidated	400,593		435,939		470,360		542,084		463,008		463,008		486,747		519,075		539,719		539,719
Undepreciated Assets - Unconsolidated (2)	450,535		454,835		466,438		482,606		486,941		486,941		460,516		504,408		507,611		507,611
Less: Investment in Unconsolidated Joint Ventures	(100,498	)	(100,821	)	(103,665	)	(103,470	)	(102,577	)	(102,577	)	(110,138	)	(114,455	)	(116,933	)	(116,933	)
Total Undepreciated Assets (2)	3,417,960		3,474,614		3,518,599		3,556,617		3,445,175		3,445,175		3,447,533		3,532,023		3,691,131		3,691,131
Debt (2)	1,007,502		1,067,376		1,075,013		1,006,764		947,017		947,017		992,241		999,999		1,112,322		1,112,322
Undepreciated Assets (2)	3,417,960		3,474,614		3,518,599		3,556,617		3,445,175		3,445,175		3,447,533		3,532,023		3,691,131		3,691,131
Debt (2) / Total Undepreciated Assets (2)	29.5	%	30.7	%	30.6	%	28.3	%	27.5	%	27.5	%	28.8	%	28.3	%	30.1	%	30.1	%



Cousins Properties Incorporated	26	Q3 2016 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	2014		2015 1st		2015 2nd		2015 3rd		2015 4th		2015		2016 1st		2016 2nd		2016 3rd		2016 YTD

Coverage Ratios (2)
Interest Expense	36,474		9,498		9,696		9,518		9,466		38,178		9,421		9,359		9,748		28,528
Scheduled Principal Payments	9,836		2,493		2,477		2,507		2,415		9,892		2,444		3,143		3,344		8,931
Preferred Stock Dividends	2,955		—		—		—		—		—		—		—		—		—
Fixed Charges	49,265		11,991		12,173		12,025		11,881		48,070		11,865		12,502		13,092		37,459
EBITDA	210,189		55,939		55,310		62,418		59,180		232,847		53,274		55,406		58,455		167,135
Fixed Charges Coverage Ratio (2)	4.27		4.67		4.54		5.19		4.98		4.84		4.49		4.43		4.46		4.46

Debt (2)	1,007,502		1,067,376		1,075,013		1,006,764		947,017		947,017		992,241		999,999		1,112,322		1,112,322
Annualized EBITDA (3)	248,556		223,756		221,240		250,260		236,720		236,720		213,096		221,624		233,820		233,820
Debt (2) / Annualized EBITDA (3)	4.05		4.77		4.86		4.02		4.00		4.00		4.66		4.51		4.76		4.76

Dividend Information
Cash Common Dividends	61,563		17,349		17,328		17,334		17,185		69,196		16,918		16,810		16,821		50,549
FFO	165,204		45,935		45,238		52,467		49,109		192,749		43,457		43,288		46,439		133,184
FFO Payout Ratio	37.3	%	37.8	%	38.3	%	33.0	%	35.0	%	35.9	%	38.9	%	38.8	%	36.2	%	38.0	%

FFO	165,204		45,935		45,238		52,467		49,109		192,749		43,457		43,288		46,439		133,184
Straight Line Rental Revenue	(22,093	)	(6,285	)	(5,786	)	(4,623	)	(3,315	)	(20,009	)	(3,595	)	(3,434	)	(3,449	)	(10,478	)
Above and Below Market Rents	(8,047	)	(2,030	)	(1,973	)	(2,030	)	(1,948	)	(7,981	)	(1,834	)	(1,854	)	(1,907	)	(5,595	)
Second Generation CAPEX	(35,054	)	(12,139	)	(13,259	)	(14,208	)	(14,608	)	(54,214	)	(7,904	)	(13,166	)	(13,968	)	(35,038	)
Deferred Income - Tenant Improvements	—		—		—		—		(48	)	(48	)	(280	)	(488	)	(564	)	(1,332	)
FAD (2)	100,010		25,481		24,220		31,606		29,190		110,497		29,844		24,346		26,551		80,741
Common Dividends	61,563		17,349		17,328		17,334		17,185		69,196		16,918		16,810		16,821		50,549
FAD Payout Ratio (2)	61.6	%	68.1	%	71.5	%	54.8	%	58.9	%	62.6	%	56.7	%	69.0	%	63.4	%	62.6	%

Operations Ratios
Total Undepreciated Assets (2)	3,417,960		3,474,614		3,518,599		3,556,617		3,445,175		3,445,175		3,447,533		3,532,023		3,691,131		3,691,131
General and Administrative Expenses	19,787		3,595		5,936		2,971		4,597		17,099		8,492		4,691		4,368		17,551
Annualized General and Administrative Expenses (4) / Total Undepreciated Assets	0.58	%	0.41	%	0.67	%	0.33	%	0.53	%	0.50	%	0.99	%	0.53	%	0.47	%	0.63	%

2nd Generation TI & Leasing Costs & Building CAPEX
Second Generation Leasing Related Costs	31,187		11,632		12,294		10,941		11,954		46,821		4,867		10,356		7,992		23,215
Second Generation Building Improvements	3,867		507		965		3,267		2,654		7,393		3,037		2,810		5,976		11,823
	35,054		12,139		13,259		14,208		14,608		54,214		7,904		13,166		13,968		35,038



Cousins Properties Incorporated	27	Q3 2016 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS



(in thousands)	Three Months Ended						Nine Months Ended
	September 30, 2016		September 30, 2015		June 30, 2016		September 30, 2016		September 30, 2015
Rental Property Revenues
Same Property	$	79,141	$	77,637	$	76,561	$	231,078	$	227,781
Non-Same Property	24,005		28,119		24,421		71,790		82,203
	$	103,146	$	105,756	$	100,982	$	302,868	$	309,984

Rental Property Operating Expenses
Same Property	$	33,233	$	33,315	$	32,400	$	96,231	$	96,981
Non-Same Property	8,292		11,625		9,574		26,495		33,360
	$	41,525	$	44,940	$	41,974	$	122,726	$	130,341

Rental Property Revenues
Consolidated Properties	$	92,621	$	96,016	$	90,735	$	271,832	$	282,226
Discontinued Operations	—		—		—		—		4
Share of Unconsolidated Joint Ventures	10,525		9,740		10,247		31,036		27,754
	$	103,146	$	105,756	$	100,982	$	302,868	$	309,984

Rental Property Operating Expenses
Consolidated Properties	$	37,760	$	41,331	$	38,681	$	112,050	$	120,672
Discontinued Operations	—		—		—		—		17
Share of Unconsolidated Joint Ventures	3,765		3,609		3,293		10,676		9,652
	$	41,525	$	44,940	$	41,974	$	122,726	$	130,341

Cash Basis Rental Property Revenues
Rental Property Revenues	$	103,147	$	105,756	$	100,981	$	302,869	$	309,984
Less: Straight Line Rent	3,449		4,623		3,434		16,694		10,479
Less: Non-cash Income	2,097		1,526		1,843		4,518		5,613
	$	97,601	$	99,607	$	95,704	$	281,657	$	293,892

Cash Basis Rental Property Revenues
Same Property	$	75,524	$	73,831	$	73,368	$	221,117	$	215,253
Non-Same Property	22,077		25,776		22,336		60,540		78,639
	$	97,601	$	99,607	$	95,704	$	281,657	$	293,892

Cash Basis Rental Property Operating Expenses
Rental Property Operating Expenses	$	41,525	$	44,940	$	41,974	$	122,726	$	130,341
Non-Cash Expense	16		—		16		46		(59		)
	$	41,541	$	44,940	$	41,990	$	122,772	$	130,282

Cash Basis Rental Property Operating Expenses
Same Property	$	33,248	$	33,313	$	32,415	$	96,272	$	97,012
Non-Same Property	8,293		11,627		9,575		26,500		33,270
	$	41,541	$	44,940	$	41,990	$	122,772	$	130,282



Cousins Properties Incorporated	28	Q3 2016 Supplemental Information



NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS




	Three Months Ended									Nine Months Ended
	September 30, 2016			September 30, 2015			June 30, 2016			September 30, 2016			September 30, 2015
Net Income	$	11,657		$	53,620		$	7,765		$	42,218		$	68,774
Net operating income from unconsolidated joint ventures	6,760			6,131			6,954			20,361			18,103
Net operating loss from discontinued operations	—			—			—			—			(14		)
Fee income	(1,945		)	(1,686		)	(1,824		)	(5,968		)	(5,206		)
Other income	(153		)	(444		)	(129		)	(858		)	(593		)
Reimbursed expenses	795			686			798			2,463			2,514
General and administrative expenses	4,368			2,976			4,691			17,301			12,405
Interest expense	7,710			7,673			7,334			22,457			23,219
Depreciation and amortization	31,843			32,538			32,381			96,192			103,564
Acquisition and merger costs	1,940			19			2,424			4,383			104
Other expenses	173			170			152			681			970
Income from unconsolidated joint ventures	(1,527		)	(3,716		)	(1,784		)	(5,144		)	(7,088		)
Gain on sale of investment properties	—			(37,145		)	—			(13,944		)	(37,674		)
Income (loss) from discontinued operations	—			(6		)	246			—			565
Net Operating Income	$	61,621		$	60,816		$	59,008		$	180,142		$	179,643

Net Operating Income
Same Property	$	45,908		$	44,322		$	44,161		$	134,847		$	130,800
Non-Same Property	15,713			16,494			14,847			45,295			48,843
	$	61,621		$	60,816		$	59,008		$	180,142		$	179,643

(1) Amounts may differ slightly from other schedules contained herein due to rounding.
(2) 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.
(3) Annualized equals quarter amount annualized.
(4) Quarter amount represents quarter annualized, year-to-date represents year-to-date actual.



Cousins Properties Incorporated	29	Q3 2016 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. “2^nd 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 and other building improvements associated with properties acquired for 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. “EBITDA” represents FFO plus consolidated and Company share of unconsolidated interest expense, non-real estate depreciation and amortization, income taxes, impairment losses, predevelopment charges, loss on debt extinguishment, gain on sale of third party business, participation interest income, acquisition and merger costs, and preferred stock dividends and original issuance costs. Management believes that EBITDA 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 straight-line rent and above and below market lease amortization less 2^nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures. 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. “FAD Before Certain Charges” represents FAD before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and merger costs, gain on sale of third party business, participation interest income and separation charges. Management believes that FAD Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations and 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 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 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. “FFO Before Certain Charges” represents FFO before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and merger costs, gain on sale of third party business, participation interest income and separation charges. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company's core operations and for comparability of the results of its operations with other real estate companies. “Net Operating Income” 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 for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. 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 Incorporated	30	Q3 2016 Supplemental Information

LEGACY PARKWAY PROPERTIES, INC. PORTFOLIO STATISTICS (1)



	Property Description	Metropolitan Area	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest		End of Period Leased 3Q16		End of Period Occupied 3Q16		Property Level Debt ($000) (2)
	Office
	Corporate Center (3)	Tampa	1,224,000	Consolidated	100	%	84.7	%	81.4	%	34,629
	Bank of America Center	Orlando	421,000	Consolidated	100	%	90.5	%	90.5	%	—
	One Orlando Centre	Orlando	356,000	Consolidated	100	%	76.0	%	73.1	%	—
	Courvoisier Centre (3)	Miami	343,000	Unconsolidated	20	%	85.4	%	84.2	%	21,300
	Citrus Center	Orlando	261,000	Consolidated	100	%	94.4	%	91.7	%	20,213
	The Pointe	Tampa	253,000	Consolidated	100	%	98.9	%	96.4	%	23,057
	Harborview Plaza	Tampa	205,000	Consolidated	100	%	98.0	%	98.0	%	—
	Lincoln Place	Miami	140,000	Consolidated	100	%	100.0	%	100.0	%	—
	Florida		3,203,000								99,199

	3344 Peachtree	Atlanta	485,000	Consolidated	33	%	99.0	%	96.3	%	26,174
	One Buckhead Plaza	Atlanta	464,000	Consolidated	100	%	96.0	%	94.8	%	—
	3350 Peachtree	Atlanta	413,000	Consolidated	100	%	93.2	%	93.2	%	—
	3348 Peachtree	Atlanta	260,000	Consolidated	100	%	93.7	%	93.7	%	—
	The Forum	Atlanta	220,000	Consolidated	100	%	95.8	%	93.3	%	—
	Two Buckhead Plaza	Atlanta	210,000	Consolidated	100	%	91.0	%	86.8	%	52,000
	Georgia		2,052,000								78,174

	Hearst Tower	Charlotte	963,000	Consolidated	100	%	98.3	%	97.1	%	—
	NASCAR Plaza	Charlotte	394,000	Consolidated	100	%	98.2	%	98.2	%	—
	North Carolina		1,357,000								—

	Hayden Ferry (3)	Tempe	789,000	Consolidated	(4	)	94.7	%	92.5	%	45,994
	Tempe Gateway	Tempe	264,000	Consolidated	100	%	98.7	%	98.7	%	—
	111 West Rio (US Airways Building)	Tempe	229,000	Unconsolidated	75	%	100.0	%	100.0	%	—
	Arizona		1,282,000								45,994

	One Eleven Congress	Austin	519,000	Consolidated	100	%	94.4	%	84.0	%	128,000
	San Jacinto Center	Austin	406,000	Consolidated	100	%	100.0	%	99.5	%	101,000
	Texas		925,000								229,000
	Total		8,819,000								452,367

(1)	Information presented includes all properties that the Company owned on November 1, 2016 as a result of the merger with Parkway Properties, Inc.
(2)	Property level debt represents the Company's share of total debt as of October 6, 2016, the date of the merger with Parkway Properties, Inc.
(3)	Contains multiple buildings that are grouped together for reporting purposes.
(4)	The Company's ownership interest in the Hayden Ferry buildings is 30%, with the exception of Hayden Ferry III, for which the Company's ownership interest is 70%.



Cousins Properties Incorporated	31	Q3 2016 Supplemental Information

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