8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 7, 2018

Cousins Properties Incorporated

(Exact name of registrant as specified in its charter)

Georgia

(State or other jurisdiction of incorporation)

001-11312

(Commission File Number)

58-0869052

(IRS Employer Identification Number)

3344 Peachtree Road NE, Suite 1800, Atlanta, Georgia 30326-4802

(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 407-1000

Former Address

(191 Peachtree Street, Suite 500, Atlanta, Georgia 30308-1740)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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

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

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02. Results of Operations and Financial Condition

On February 7, 2018, Cousins Properties Incorporated (the “Company”) issued a Press Release and Quarterly Information Package containing information about the Company’s financial condition and results of operations for the quarter ended December 31, 2017. A copy of the Company’s Press Release and Quarterly Information Package is attached hereto as Exhibit 99.1. The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

(c)    Exhibits

Exhibit NumberExhibit Description

99.1 Press Release and Quarterly Information Package for the Quarter Ended December 31, 2017.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 7, 2018

COUSINS PROPERTIES INCORPORATED

By: /s/ Gregg D. Adzema

Gregg D. Adzema

Executive Vice President and Chief Financial Officer

EX-99.1

1

TABLE OF CONTENTS

Forward-Looking Statements	3
Earnings Release	4
Condensed Consolidated Statements of Operations	6
Condensed Consolidated Balance Sheets	7
Key Performance Metrics	8
Funds From Operations - Summary	11
Funds From Operations - Detail	12
Portfolio Statistics	15
Same Property Performance	17
Office Leasing Activity	19
Office Lease Expirations	20
Top 20 Office Tenants	22
Tenant Industry Diversification	23
Investment Activity	24
Development Pipeline	26
Land Inventory	27
Debt Schedule	28
Non-GAAP Financial Measures - Calculations and Reconciliations	31
Non-GAAP Financial Measures - Discussion	37

Cousins Properties Incorporated Q4 2017 Supplemental Information

FORWARD-LOOKING STATEMENTS

Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in the Annual Report on Form 10-K for the year ended December 31, 2017 and as itemized herein. 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; future financing; future acquisitions and dispositions of operating assets; future acquisitions of land; future development and redevelopment opportunities; future dispositions of land and other non-core assets; future issuances and repurchases of common stock; projected operating results; market and industry trends; future distributions; projected capital expenditures; interest rates; the impact of the transactions involving us, Parkway Properties, Inc. ("Parkway") and Parkway, Inc. ("New Parkway"), including future financial and operating results, plans, objectives, expectations and intentions; and all statements that address operating performance, events, or developments that we expect or anticipate will occur in the future — including statements relating to creating value for stockholders.

Any forward-looking statements are based upon management's beliefs, assumptions, and expectations of our future performance, taking into account information currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the availability and terms of capital; the ability to refinance or repay indebtedness as it matures; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions, investments, or dispositions; the potential dilutive effect of common stock or operating partnership unit issuances; the availability of buyers and pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate, particularly in Atlanta, Charlotte, Austin, and Phoenix where we have high concentrations of our lease revenue; 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, the ability to lease newly developed and/or recently acquired space, and the risk of declining leasing rates; the adverse change in the financial condition of one or more of our major tenants; volatility in interest rates and insurance rates; competition from other developers or investors; the risks associated with real estate developments (such as zoning approval, receipt of required permits, construction delays, cost overruns, and leasing risk); 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; risks associated with litigation resulting from the transactions with Parkway and from liabilities or contingent liabilities assumed in the transactions with Parkway; risks associated with any errors or omissions in financial or other information of Parkway that has been previously provided to the public; potential changes to state, local, or federal regulations applicable to our business; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; potential changes to the tax laws impacting REITs and real estate in general; and those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by the Company.

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

Cousins Properties Incorporated 3 Q4 2017 Supplemental Information

EARNINGS RELEASE

COUSINS PROPERTIES REPORTS RESULTS

FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2017

Highlights

• Net income available to common stockholders for the fourth quarter was $0.07 per share.

• Funds From Operations for the fourth quarter was $0.15 per share.

• Same property net operating income on a cash basis increased 4.2% during the fourth quarter.

• Legacy Parkway same property net operating income on a cash basis increased 5.7% during the fourth quarter.

• Second generation net rent per square foot on a cash basis increased 6.3% during the fourth quarter.

• Executed 943,022 square feet of office leases during the fourth quarter.

• Sold the three-property downtown Orlando portfolio for $208.1 million.

• Sold the Company's 20% interest in Courvoisier Centre in Miami in a transaction that valued the Company's interest at $33.9 million.

• Subsequent to quarter end, the Company:

◦ Completed the development of 864 Spring Street, Phase One of NCR's world headquarters in midtown Atlanta.

◦ Closed a new $1 billion unsecured revolving credit facility that replaced the existing $500 million facility.

◦ Announced 300 Colorado, a 100% leased, 309,000 square foot office tower development in downtown Austin.

ATLANTA (February 7, 2018) - Cousins Properties (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2017.

“It was a solid quarter highlighted by several sizable transactions that we believe will generate significant value for our shareholders.” said Larry Gellerstedt, Chairman and Chief Executive Officer of Cousins Properties. “Looking forward, we are excited about the prospects in 2018 and beyond. We have built a unique and compelling company with an outstanding balance sheet that is in a strong position to take advantage of opportunities as they arise.”

Financial Results

Net income available to common stockholders was $31.4 million, or $0.07 per share, for the fourth quarter of 2017, compared with $36.9 million, or $0.10 per share, for the fourth quarter of 2016. Net income available to common stockholders was $216.3 million, or $0.52 per share, for the year ended December 31, 2017, compared with $79.1 million, or $0.31 per share, for the year ended December 31, 2016.

Funds From Operations ("FFO") was $64.2 million, or $0.15 per share, for the fourth quarter of 2017, compared with $27.4 million, or $0.07 per share, for the fourth quarter of 2016. FFO was $259.9 million, or $0.61 per share, for the year ended December 31, 2017, compared with $160.6 million, or $0.63 per share, for the year ended December 31, 2016.

Cousins Properties Incorporated 4 Q4 2017 Supplemental Information

EARNINGS RELEASE

2018 FFO Guidance

For the year ending December 31, 2018, the Company expects to report net income in the range of $0.15 to $0.19 per share and FFO in the range of $0.59 to $0.63 per share. This guidance reflects management's view of current and future market conditions, as well as the earnings impact of events referenced in this release and corresponding conference call.

2018 FFO guidance includes the following assumptions:

• Same property net operating income growth of 2.0% to 4.0% on a GAAP basis.

• Same property net operating income growth of 3.5% to 5.5% on a cash basis.

• Fee and other income of $10 million to $12 million. Guidance does not include potential termination fees.

• General and administrative expenses of $24 million to $26 million, net of capitalized salaries.

• Interest and other expenses of $46 million to $48 million, net of capitalized interest.

• No property acquisition or disposition activity.

• No new development projects except those disclosed herein.

• GAAP straight-lined rental revenue of $26.5 million to $28.5 million.

• Above and below market rental revenue of $6.5 million to $8.5 million.

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

	Full Year 2018 Range
	Low		High
Net income per share	$	0.15	$	0.19
Add: Real estate depreciation and amortization	0.44		0.44
Funds From Operations per share	$	0.59	$	0.63

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

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 8, 2018, to discuss the results of the quarter and year ended December 31, 2017. The number to call for this interactive teleconference is (877) 247-1056.

A replay of the conference call will be available for seven days by dialing(877) 344-7529 and entering the passcode 10115599. The live webcast and replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Cousins Properties Fourth Quarter 2017 Conference Call” link on the Investor Relations page.

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

Cousins Properties Incorporated 5 Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016
Revenues:
Rental property revenues	$	109,942		$	111,432		$	446,035		$	249,814
Fee income	2,245			2,379			8,632			8,347
Other	1,925			481			11,518			1,050
	114,112			114,292			466,185			259,211
Expenses:
Rental property operating expenses	40,167			41,456			163,882			96,908
Reimbursed expenses	860			796			3,527			3,259
General and administrative expenses	5,530			8,290			27,523			25,592
Interest expense	7,673			10,089			33,524			26,650
Depreciation and amortization	44,199			48,145			196,745			97,948
Acquisition and transaction costs	162			20,633			1,661			24,521
Other	733			5,205			1,796			5,888
	99,324			134,614			428,658			280,766
Gain (loss) on extinguishment of debt	—			(5,180		)	2,258			(5,180		)
Income (loss) from continuing operations before unconsolidated joint ventures and gain (loss) on sale of investment properties	14,788			(25,502		)	39,785			(26,735		)
Income from unconsolidated joint ventures	3,753			5,418			47,115			10,562
Income (loss) from continuing operations before gain on sale of investment properties	18,541			(20,084		)	86,900			(16,173		)
Gain on sale of investment properties	13,330			63,169			133,059			77,114
Income from continuing operations	31,871			43,085			219,959			60,941
Income (loss) from discontinued operations	—			(5,198		)	—			19,163
Net income	31,871			37,887			219,959			80,104
Net income attributable to noncontrolling interests	(503		)	(995		)	(3,684		)	(995		)
Net income available to common stockholders	$	31,368		$	36,892		$	216,275		$	79,109
Per common share information — basic and diluted:
Income from continuing operations for common stockholders	$	0.07		$	0.11		$	0.52		$	0.24
Income from discontinued operations for common stockholders	—			(0.01		)	—			0.07
Net income available to common stockholders	$	0.07		$	0.10		$	0.52		$	0.31
Weighted average shares — basic	420,021			383,654			415,610			253,895
Weighted average shares — diluted	427,288			391,413			423,297			256,023

Cousins Properties Incorporated 6 Q4 2017 Supplemental Information

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	December 31, 2017			December 31, 2016
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $275,977 and $215,856 in 2017 and 2016, respectively	$	3,332,619		$	3,432,522
Projects under development	280,982			162,387
Land	4,221			4,221
	3,617,822			3,599,130
Cash and cash equivalents	148,929			35,687
Restricted cash	56,816			15,634
Notes and accounts receivable, net of allowance for doubtful accounts of $535 and $1,167 in 2017 and 2016, respectively	14,420			27,683
Deferred rents receivable	58,158			39,464
Investment in unconsolidated joint ventures	101,414			179,397
Intangible assets, net of accumulated amortization of $104,931 and $53,483 in 2017 and 2016, respectively	186,206			245,529
Other assets	20,854			29,083
Total assets	$	4,204,619		$	4,171,607
Liabilities:
Notes payable	$	1,093,228		$	1,380,920
Accounts payable and accrued expenses	137,909			109,278
Deferred income	37,383			33,304
Intangible liabilities, net of accumulated amortization of $28,960 and $12,227 in 2017 and 2016, respectively	70,454			89,781
Other liabilities	40,534			44,084
Total liabilities	1,379,508			1,657,367
Commitments and contingencies
Equity:
Stockholders' investment:
Preferred stock, $1 par value, 20,000,000 shares authorized, 6,867,357 shares issued and outstanding in 2017 and 2016	6,867			6,867
Common stock, $1 par value, 700,000,000 shares authorized, 430,349,620 and 403,746,938 shares issued in 2017 and 2016, respectively	430,350			403,747
Additional paid-in capital	3,604,776			3,407,430
Treasury stock at cost, 10,329,082 shares in 2017 and 2016	(148,373		)	(148,373		)
Distributions in excess of cumulative net income	(1,121,647		)	(1,214,114		)
Total stockholders' investment	2,771,973			2,455,557
Nonredeemable noncontrolling interests	53,138			58,683
Total equity	2,825,111			2,514,240
Total liabilities and equity	$	4,204,619		$	4,171,607

Cousins Properties Incorporated 7 Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Property Statistics
Consolidated Operating Properties	12		11		11		11		25		25		26		26		26		23		23
Consolidated Rentable Square Feet (in thousands)	12,122		11,993		11,993		11,993		13,024		13,024		13,249		12,477		12,466		11,428		11,428
Unconsolidated Operating Properties	6		6		6		6		8		8		7		5		6		5		5
Unconsolidated Rentable Square Feet (in thousands)	3,434		3,435		3,435		3,435		3,999		3,999		3,774		2,988		3,456		3,113		3,113
Total Operating Properties	18		17		17		17		33		33		33		31		32		28		28
Total Rentable Square Feet (in thousands)	15,556		15,428		15,428		15,428		17,023		17,023		17,023		15,465		15,922		14,541		14,541
Office Leasing Activity (1)
Net Leased during the period (square feet in thousands)	2,972		220		402		971		761		2,354		571		341		335		943		2,190
Net Rent (per square foot)	$18.30		$23.55		$22.73		$23.51		$26.32		$24.52		$26.10		$28.58		$26.57		$32.73		$29.41
Tenant improvements, leasing commissions, and free rent     (per square foot)	(3.64)		(6.31)		(7.08)		(6.18)		(6.08)		(6.35)		(7.44)		(7.42)		(5.84)		(6.48)		(6.77)
Net Effective Rent (per square foot)	$14.66		$17.24		$15.65		$17.33		$20.24		$18.17		$18.66		$21.16		$20.73		$26.25		$22.64
Change in Second Generation Net Rent	36.7	%	18.9	%	17.2	%	27.9	%	18.7	%	20.0	%	15.8	%	28.5	%	16.9	%	19.7	%	19.6	%
Change in Cash-Basis Second Generation Net Rent	19.8	%	1.8%		4.3	%	9.1	%	14.7	%	10.3	%	3.3	%	13.5	%	7.3	%	6.3	%	6.9	%
Same Property Information (2)
Percent Leased (period end)	91.6	%	90.3	%	90.7	%	91.2	%	91.8	%	91.8	%	92.1	%	93.9	%	92.9	%	92.6	%	92.6	%
Weighted Average Occupancy	90.7	%	89.4	%	89.2	%	89.5	%	89.4	%	89.4	%	89.9	%	90.7	%	89.1	%	87.7	%	89.4	%
Change in Net Operating Income (over prior year period)	3.3	%	4.3	%	1.4	%	3.6	%	4.4	%	6.1	%	5.5	%	6.8	%	1.3	%	3.6	%	4.4	%
Change in Cash-Basis Net Operating Income (over prior year period)	7.3	%	8.6	%	3.9	%	4.3	%	7.1	%	8.4	%	5.4	%	8.6	%	2.0	%	4.2	%	5.3	%
Development Pipeline
Estimated Project Costs (in thousands) (3)	$261,500		$326,300		$340,200		$506,200		$512,200		$512,200		$529,200		$463,500		$402,000		$490,500		$490,500
Estimated Project Costs (3) / Total Undepreciated Assets	7.6	%	9.5	%	9.6	%	13.7	%	10.5	%	10.5	%	10.6	%	9.6	%	8.1	%	9.9	%	9.9	%
Market Capitalization (4)
Common Stock Price (period end)	$9.43		$10.38		$10.40		$10.44		$8.51		$8.51		$8.27		$8.79		$9.34		$9.25		$9.25
Common Shares/Units Outstanding (period end in thousands)	211,513		210,107		210,171		210,170		401,596		401,596		426,823		426,942		426,995		426,995		426,995
Equity Market Capitalization (in thousands)	$1,994,568		$2,180,911		$2,185,778		$2,194,175		$3,417,582		$3,417,582		$3,529,826		$3,752,820		$3,988,133		$3,949,704		$3,949,704
Debt (in thousands)	947,017		992,241		999,999		1,112,322		1,632,270		1,632,270		1,498,044		1,205,632		1,286,252		1,262,523		1,262,523
Total Market Capitalization (in thousands)	$2,941,585		$3,173,152		$3,185,777		$3,306,497		$5,049,852		$5,049,852		$5,027,870		$4,958,452		$5,274,385		$5,212,227		$5,212,227
Credit Ratios (4)
Net Debt/Total Market Capitalization	32.1	%	31.1	%	31.4	%	30.7	%	31.6	%	31.6	%	29.1	%	24.0	%	23.2	%	21.4	%	21.4	%
Net Debt/Total Undepreciated Assets	27.4	%	28.6	%	28.3	%	27.5	%	32.8	%	32.8	%	29.4	%	24.7	%	24.7	%	22.5	%	22.5	%
Net Debt/Annualized EBITDA	3.99		4.63		4.51		4.34		5.22		5.22		4.49		3.93		4.31		3.75		3.75
Fixed Charges Coverage	4.84		4.49		4.43		4.46		5.04		4.63		5.13		5.49		5.82		6.01		5.58

Cousins Properties Incorporated 8 Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Dividend Information (4)
Common Dividend per Share (5)	$0.32		$0.08		$0.08		$0.08		$0.06		$0.30		$0.06		$0.06		$0.06		$0.06		$0.24
FFO Payout Ratio	35.9	%	38.9	%	38.8	%	36.2	%	85.9	%	46.1	%	37.5	%	38.0	%	40.4	%	39.3	%	38.8	%
FAD Payout Ratio	61.4	%	55.9	%	61.7	%	58.3	%	61.1	%	59.3	%	58.2	%	54.4	%	69.9	%	69.5	%	62.2	%
Operations Ratios (4)
Annualized General and Administrative Expenses/Total Undepreciated Assets	0.49	%	0.96	%	0.53	%	0.47	%	0.68	%	0.53	%	0.50	%	0.72	%	0.58	%	0.45	%	0.56	%
Additional Information (4)
Straight Line Rental Revenue	$20,009		$3,595		$3,434		$3,449		$8,489		$18,967		$9,608		$7,826		$6,825		$6,714		$30,973
Above and Below Market Rents Amortization	$7,981		$1,834		$1,854		$1,907		$1,502		$7,097		$1,602		$1,929		$1,852		$1,838		$7,221
Second Generation Capital Expenditures	$54,214		$7,904		$13,166		$13,968		$11,838		$46,876		$10,971		$7,569		$15,949		$18,996		$53,485

(1) See Office Leasing Activity on page 19 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 17 and Non-GAAP Financial Measures - Calculations and Reconciliations on page 35 for additional information.

(3) Represents Cousins' share of estimated project costs. See Development Pipeline on page 26 for additional detail.

(4) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.

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

Cousins Properties Incorporated 9 Q4 2017 Supplemental Information

KEY PERFORMANCE METRICS

(1) Office properties only.

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

Cousins Properties Incorporated 10 Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - SUMMARY (1)

	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017
Net Operating Income	$	241,232		$	59,513		$	59,008		$	61,621		$	80,139		$	260,281		$	80,167		$	80,115		$	75,815		$	77,109		$	313,206
Land Sales Less Cost of Sales	3,905			—			—			—			3,770			3,770			—			63			4			—			67
Fee Income	7,297			2,199			1,824			1,945			2,379			8,347			1,936			1,854			2,597			2,245			8,632
Other Income	2,451			1,121			280			287			3,837			5,525			6,889			5,304			1,634			2,164			15,991
Reimbursed Expenses	(3,430		)	(870		)	(798		)	(795		)	(796		)	(3,259		)	(865		)	(907		)	(895		)	(860		)	(3,527		)
General and Administrative Expenses	(16,918		)	(8,243		)	(4,691		)	(4,368		)	(8,290		)	(25,592		)	(6,182		)	(8,618		)	(7,193		)	(5,530		)	(27,523		)
Interest Expense	(38,178		)	(9,421		)	(9,360		)	(9,748		)	(12,566		)	(41,095		)	(12,066		)	(10,444		)	(9,363		)	(9,509		)	(41,382		)
Other Expenses	(1,941		)	(465		)	(2,640		)	(2,175		)	(40,704		)	(45,984		)	(2,391		)	(542		)	196			(953		)	(3,690		)
Depreciation and Amortization of Non-Real Estate Assets	(1,669		)	(377		)	(335		)	(328		)	(325		)	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)
FFO (1)	$	192,749		$	43,457		$	43,288		$	46,439		$	27,444		$	160,628		$	67,037		$	66,360		$62,334			$	64,169		$	259,900
Weighted Average Shares - Diluted	215,979			210,974			210,362			210,326			391,413			256,023			411,186			427,180			427,300			427,288			423,297
FFO per Share (1)	$	0.89		$	0.21		$	0.21		$	0.22		$	0.07		$	0.63		$	0.16		$	0.16		$	0.15		$	0.15		$	0.61

(1) See pages 31 and 34 for reconciliations of Funds from Operations to net income available to common shareholders.

Cousins Properties Incorporated 11 Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Net Operating Income
Consolidated Properties
Hearst Tower	$	—	$	—	$	—	$	—	$	5,957	$	5,957	$	6,356	$	6,370	$	6,302	$	7,158	$	26,186
Hayden Ferry (2)	—		—		—		—		3,881		3,881		5,209		5,307		5,466		5,968		21,950
Corporate Center (2)	—		—		—		—		5,005		5,005		4,761		5,374		5,308		5,446		20,889
Northpark (2)	22,400		5,607		5,097		5,599		5,841		22,144		5,410		5,130		4,945		5,021		20,506
Fifth Third Center	14,956		4,238		4,349		4,451		4,463		17,501		4,842		4,681		4,772		4,989		19,284
Promenade	13,985		3,740		3,419		3,839		3,557		14,555		4,173		4,407		4,184		3,991		16,755
San Jacinto Center	—		—		—		—		3,456		3,456		4,038		4,207		3,918		3,906		16,069
One Eleven Congress	—		—		—		—		3,256		3,256		3,713		3,735		4,172		3,526		15,146
Colorado Tower	6,768		2,724		3,064		3,221		3,399		12,408		3,383		3,352		3,344		3,478		13,557
One Buckhead Plaza	—		—		—		—		2,817		2,817		3,097		2,806		3,071		2,760		11,734
3344 Peachtree	—		—		—		—		3,505		3,505		3,235		2,884		2,705		2,085		10,909
816 Congress Avenue	8,526		2,468		2,555		2,514		2,363		9,900		2,694		2,641		2,766		2,797		10,898
NASCAR Plaza	—		—		—		—		2,507		2,507		2,477		2,394		2,609		2,709		10,189
3350 Peachtree	—		—		—		—		2,006		2,006		2,264		2,288		2,153		1,968		8,673
Tempe Gateway	—		—		—		—		1,966		1,966		2,008		2,136		1,964		1,971		8,079
3348 Peachtree	—		—		—		—		1,541		1,541		1,491		1,491		1,657		1,507		6,146
Two Buckhead Plaza	—		—		—		—		1,369		1,369		1,321		1,337		1,318		1,806		5,782
The Pointe	—		—		—		—		1,227		1,227		1,146		1,146		1,069		1,207		4,568
Meridian Mark Plaza	3,777		908		857		954		955		3,674		989		997		979		1,116		4,081
111 West Rio	—		—		—		—		—		—		—		1,396		1,236		1,412		4,044
Harborview Plaza	—		—		—		—		898		898		930		931		1,035		1,074		3,970
Research Park V	—		—		144		288		412		844		359		916		874		827		2,976
8000 Avalon	—		—		—		—		—		—		—		—		80		353		433
NCR	—		—		—		—		—		—		—		—		—		50		50
Other (3)	43,287		7,864		7,443		7,587		9,593		32,487		7,095		6,580		2,954		2,650		19,279
Subtotal - Consolidated	113,699		27,549		26,928		28,453		69,974		152,904		70,991		72,506		68,881		69,775		282,153
Unconsolidated Properties (4)
Terminus 100	7,268		1,872		1,978		1,899		1,837		7,586		1,912		1,906		1,829		1,851		7,498
Gateway Village (2)(5)	1,208		536		451		460		1,003		2,450		1,751		1,756		1,805		1,735		7,047
Terminus 200	6,069		1,658		1,770		1,678		1,648		6,754		1,798		1,749		1,769		1,663		6,979
Emory University Hospital Midtown Medical Office Tower	3,974		987		1,000		975		1,008		3,970		989		948		961		1,015		3,913
Carolina Square	—		—		—		—		—		—		—		—		47		658		705
Other (3)	5,816		1,593		1,755		1,748		2,930		8,026		2,726		1,250		523		412		4,911
Subtotal - Unconsolidated	24,335		6,646		6,954		6,760		8,426		28,786		9,176		7,609		6,934		7,334		31,053
Discontinued Operations (6)	103,198		25,318		25,126		26,408		1,739		78,591		—		—		—		—		—
Total Net Operating Income (1)	241,232		59,513		59,008		61,621		80,139		260,281		80,167		80,115		75,815		77,109		313,206
Sales Less Cost of Sales
Land Sales Less Cost of Sales - Consolidated	1,625		—		—		—		3,580		3,580		—		63		4		—		67
Land Sales Less Cost of Sales - Unconsolidated (4)	2,280		—		—		—		190		190		—		—		—		—		—
Total Sales Less Cost of Sales	3,905		—		—		—		3,770		3,770		—		63		4		—		67

Cousins Properties Incorporated 12 Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	2015		2016 1st		2016 2nd		2016 3rd		2016 4th		2016		2017 1st		2017 2nd		2017 3rd		2017 4th		2017
Fee Income
Management Fees (7)	5,188		1,325		1,263		1,253		1,317		5,158		1,402		1,492		1,458		1,442		5,794
Development Fees	1,778		608		486		549		634		2,277		432		318		1,062		328		2,140
Leasing & Other Fees	331		266		75		143		428		912		102		44		77		475		698
Total Fee Income	7,297		2,199		1,824		1,945		2,379		8,347		1,936		1,854		2,597		2,245		8,632
Other Income
Termination Fees	398		—		—		—		122		122		5,238		2,913		734		385		9,270
Gain on Extinguishment of Debt	—		—		—		—		—		—		—		1,829		429		—		2,258
Interest and Other Income	460		390		27		153		358		928		188		262		258		1,540		2,248
Termination Fees - Unconsolidated (4)	419		—		—		—		3,000		3,000		959		195		132		8		1,294
Interest and Other Income - Unconsolidated (4)	747		546		151		134		357		1,188		504		105		81		231		921
Termination Fees - Discontinued Operations (6)	450		186		102		—		—		288		—		—		—		—		—
Interest and Other Income - Discontinued Operations (6)	(23	)	(1	)	—		—		—		(1	)	—		—		—		—		—
Total Other Income	2,451		1,121		280		287		3,837		5,525		6,889		5,304		1,634		2,164		15,991
Total Fee and Other Income	9,748		3,320		2,104		2,232		6,216		13,872		8,825		7,158		4,231		4,409		24,623
Reimbursed Expenses	(3,430	)	(870	)	(798	)	(795	)	(796	)	(3,259	)	(865	)	(907	)	(895	)	(860	)	(3,527	)
General and Administrative Expenses	(16,918	)	(8,243	)	(4,691	)	(4,368	)	(8,290	)	(25,592	)	(6,182	)	(8,618	)	(7,193	)	(5,530	)	(27,523	)
Interest Expense
Consolidated Debt
Term Loan, Unsecured	—		—		—		—		(386	)	(386	)	(1,288	)	(1,564	)	(1,655	)	(1,691	)	(6,198	)
Fifth Third Center	—		—		—		(427	)	(1,275	)	(1,702	)	(1,272	)	(1,266	)	(1,260	)	(1,254	)	(5,052	)
Promenade	(4,734	)	(1,165	)	(1,157	)	(1,150	)	(1,142	)	(4,614	)	(1,134	)	(1,127	)	(1,119	)	(1,112	)	(4,492	)
Senior Notes, Unsecured ($250M)	—		—		—		—		—		—		—		—		(2,353	)	(2,489	)	(4,842	)
Colorado Tower	—		—		—		(353	)	(1,059	)	(1,412	)	(1,059	)	(1,059	)	(1,059	)	(1,059	)	(4,236	)
816 Congress Avenue	(3,269	)	(817	)	(817	)	(817	)	(817	)	(3,268	)	(814	)	(810	)	(806	)	(803	)	(3,233	)
Credit Facility, Unsecured	(4,089	)	(832	)	(1,053	)	(870	)	(1,159	)	(3,914	)	(1,035	)	(1,153	)	(444	)	(418	)	(3,050	)
Senior Notes, Unsecured ($100M)	—		—		—		—		—		—		—		(876	)	(1,025	)	(1,036	)	(2,937	)
Meridian Mark Plaza	(1,538	)	(381	)	(379	)	(377	)	(375	)	(1,512	)	(373	)	(372	)	(370	)	(368	)	(1,483	)
The Pointe	—		—		—		—		(171	)	(171	)	(176	)	(178	)	(177	)	(176	)	(707	)
Other (3)	(12,684	)	(2,987	)	(2,979	)	(2,990	)	(5,413	)	(14,369	)	(4,180	)	(2,336	)	(20	)	—		(6,536	)
Capitalized	3,577		742		1,016		1,230		1,709		4,697		1,590		2,218		2,701		2,733		9,242
Subtotal - Consolidated	(22,737	)	(5,440	)	(5,369	)	(5,754	)	(10,088	)	(26,651	)	(9,741	)	(8,523	)	(7,587	)	(7,673	)	(33,524	)
Unconsolidated Debt (4)
Terminus 100	(3,436	)	(848	)	(844	)	(840	)	(836	)	(3,368	)	(831	)	(827	)	(824	)	(818	)	(3,300	)
Terminus 200	(1,560	)	(390	)	(389	)	(387	)	(385	)	(1,551	)	(383	)	(382	)	(380	)	(378	)	(1,523	)
Emory University Hospital Midtown Medical Office Tower	(1,333	)	(330	)	(329	)	(327	)	(325	)	(1,311	)	(324	)	(322	)	(320	)	(319	)	(1,285	)
Carolina Square	—		—		—		—		—		—		—		—		(27	)	(157	)	(184	)
Other (3)	(1,126	)	(439	)	(464	)	(484	)	(806	)	(2,193	)	(787	)	(390	)	(225	)	(164	)	(1,566	)
Subtotal - Unconsolidated	(7,455	)	(2,007	)	(2,026	)	(2,038	)	(2,352	)	(8,423	)	(2,325	)	(1,921	)	(1,776	)	(1,836	)	(7,858	)
Discontinued Operations (6)	(7,986	)	(1,974	)	(1,965	)	(1,956	)	(126	)	(6,021	)	—		—		—		—		—

Cousins Properties Incorporated 13 Q4 2017 Supplemental Information

FUNDS FROM OPERATIONS - DETAIL (1)

	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017
Total Interest Expense	(38,178		)	(9,421		)	(9,360		)	(9,748		)	(12,566		)	(41,095		)	(12,066		)	(10,444		)	(9,363		)	(9,509		)	(41,382		)
Other Expenses
Transaction Costs - Merger	—			(19		)	(2,424		)	(1,446		)	(20,633		)	(24,522		)	(1,930		)	(246		)	677			(162		)	(1,661		)
Property Taxes and Other Holding Costs	(828		)	(89		)	(98		)	(95		)	(158		)	(440		)	(304		)	(140		)	(139		)	(181		)	(764		)
Predevelopment & Other	(522		)	(108		)	(118		)	(140		)	(577		)	(943		)	(129		)	(156		)	(265		)	(253		)	(803		)
Severance	(181		)	(249		)	—			—			—			(249		)	(28		)	—			(73		)	(345		)	(446		)
Partners' share of FFO in consolidated joint ventures	(111		)	—			—			—			(3,775		)	(3,775		)	—			—			(4		)	(12		)	(16		)
Transaction Costs - Spin-off	—			—			—			(494		)	(5,855		)	(6,349		)	—			—			—			—			—
Loss on Extinguishment of Debt - Unconsolidated (4)	—			—			—			—			(5,180		)	(5,180		)	—			—			—			—			—
Impairment Loss	—			—			—			—			(4,526		)	(4,526		)	—			—			—			—			—
Acquisition Costs	(299		)	—			—			—			—			—			—			—			—			—			—
Total Other Expenses	(1,941		)	(465		)	(2,640		)	(2,175		)	(40,704		)	(45,984		)	(2,391		)	(542		)	196			(953		)	(3,690		)
Depreciation and Amortization of Non-Real Estate Assets
Consolidated	(1,621		)	(377		)	(335		)	(328		)	(325		)	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)
Unconsolidated (4)	(48		)	—			—			—			—			—			—			—			—			—			—
Total Depreciation and Amortization of Non-Real Estate Assets	(1,669		)	(377		)	(335		)	(328		)	(325		)	(1,365		)	(451		)	(465		)	(461		)	(497		)	(1,874		)
FFO (1)	$	192,749		$	43,457		$	43,288		$	46,439		$	27,444		$	160,628		$	67,037		$	66,360		$	62,334		$	64,169		$	259,900
Weighted Average Shares - Diluted	215,979			210,974			210,362			210,326			391,413			256,023			411,186			427,180			427,300			427,288			423,297
FFO per Share (1)	$	0.89		$	0.21		$	0.21		$	0.22		$	0.07		$	0.63		$	0.16		$	0.16		$	0.15		$	0.15		$	0.61

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

(1) See Non-GAAP Financial Measures - Calculations and Reconciliations beginning on page 31.

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

(3) Represents properties sold and loans repaid prior to December 31, 2017 that are not considered discontinued operations.

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

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

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

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

(6) Primarily represents Greenway Plaza and Post Oak Central.

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

Cousins Properties Incorporated 14 Q4 2017 Supplemental Information

PORTFOLIO STATISTICS

	Office Properties	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased 4Q17	End of Period Leased 3Q17	Weighted Average Occupancy 4Q17	Weighted Average Occupancy 3Q17	% of Total Net Operating Income (1)	Property Level Debt ($000) (2)
	Northpark (3)	1,528,000	Consolidated	100%	86.3%	88.1%	75.3%	78.7%	6.8%	$	—
	Promenade	777,000	Consolidated	100%	94.1%	94.1%	94.1%	94.2%	5.4%	102,071
	One Buckhead Plaza	461,000	Consolidated	100%	89.6%	89.5%	89.5%	90.4%	3.7%	—
	3344 Peachtree	484,000	Consolidated	100%	91.7%	91.7%	90.6%	89.8%	2.8%	—
	3350 Peachtree	413,000	Consolidated	100%	86.2%	93.2%	93.2%	93.1%	2.7%	—
	Terminus 100	660,000	Unconsolidated	50%	93.7%	89.9%	88.6%	89.9%	2.5%	61,922
	Two Buckhead Plaza	210,000	Consolidated	100%	91.0%	85.1%	83.9%	82.5%	2.4%	—
	Terminus 200	566,000	Unconsolidated	50%	94.1%	98.2%	90.6%	94.0%	2.2%	39,644
	3348 Peachtree	258,000	Consolidated	100%	87.1%	89.7%	88.9%	90.0%	2.0%	—
	Meridian Mark Plaza	160,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.5%	23,970
	Emory University Hospital Midtown Medical Office Tower	358,000	Unconsolidated	50%	99.5%	99.5%	98.5%	96.3%	1.4%	35,523
	8000 Avalon	224,000	Consolidated	90%	94.1%	93.9%	39.0%	4.8%	0.5%	—
	ATLANTA	6,099,000			90.5%	91.4%	84.9%	84.8%	33.9%	263,130
	Hearst Tower	966,000	Consolidated	100%	98.9%	98.7%	98.7%	98.6%	9.7%	—
	Fifth Third Center	698,000	Consolidated	100%	98.8%	96.7%	95.9%	95.9%	6.7%	145,974
	NASCAR Plaza	394,000	Consolidated	100%	98.7%	98.7%	98.7%	98.6%	3.7%	—
	Gateway Village (3)	1,061,000	Unconsolidated	50%	99.4%	99.4%	99.4%	99.4%	2.3%	—
	CHARLOTTE	3,119,000			98.9%	98.3%	98.1%	98.0%	22.4%	145,974
	San Jacinto Center	395,000	Consolidated	100%	94.4%	98.9%	98.7%	99.2%	5.3%	—
	One Eleven Congress	519,000	Consolidated	100%	87.8%	88.1%	85.0%	84.4%	4.8%	—
	Colorado Tower	373,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	4.7%	119,165
	816 Congress	435,000	Consolidated	100%	95.2%	95.2%	95.2%	94.6%	3.8%	82,742
	Research Park V	173,000	Consolidated	100%	97.1%	97.1%	85.7%	85.7%	1.1%	—
	AUSTIN	1,895,000			94.1%	95.1%	93.2%	93.0%	19.7%	201,907
	Hayden Ferry (3)	789,000	Consolidated	100%	96.2%	93.0%	91.2%	92.9%	8.0%	—
	Tempe Gateway	264,000	Consolidated	100%	98.6%	98.5%	98.5%	97.3%	2.7%	—
	111 West Rio	225,000	Consolidated	100%	100.0%	100.0%	100.0%	100.0%	1.9%	—
	PHOENIX	1,278,000			97.3%	95.4%	94.3%	95.0%	12.6%	—
	Corporate Center (3)	1,224,000	Consolidated	100%	96.7%	96.5%	91.8%	86.9%	7.3%	—
	The Pointe	253,000	Consolidated	100%	93.1%	97.6%	95.0%	94.7%	1.6%	22,729
	Harborview Plaza	205,000	Consolidated	100%	99.7%	98.0%	98.0%	98.0%	1.5%	—
	TAMPA	1,682,000			96.5%	96.9%	93.1%	89.4%	10.4%	22,729
	Carolina Square Office (4)	158,000	Unconsolidated	50%	74.8%	74.3%	23.1%	—%	0.2%	10,873
	CHAPEL HILL	158,000			74.8%	74.3%	23.1%	—%	0.2%	10,873
	TOTAL OFFICE	14,231,000			94.1%	94.4%	90.4%	89.8%	99.2%	$	644,613
	Other Properties
	Carolina Square Retail (4)	44,000	Unconsolidated	50%	81.5%	81.5%	58.0%	41.3%	0.1%	3,028
	Carolina Square Apartments (246 Units) (4)	266,000	Unconsolidated	50%	91.1%	87.0%	87.4%	55.0%	0.7%	18,305
	TOTAL OTHER	310,000			89.7%	86.2%	83.2%	53.1%	0.8%	$	21,333
	TOTAL	14,541,000							100.0%	$	665,946
See next page for footnotes

Cousins Properties Incorporated 15 Q4 2017 Supplemental Information

PORTFOLIO STATISTICS

(1	)	Represents the Company's share of net operating income for the three months ended December 31, 2017.
(2	)	Represents the Company's share of property specific mortgage debt as of December 31, 2017.
(3	)	Contains multiple buildings that are grouped together for reporting purposes.
(4	)	The Company's share of Carolina Square debt has been allocated to office, retail, and apartments based on their relative square footage.

Cousins Properties Incorporated 16 Q4 2017 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

	COUSINS PROPERTIES INCORPORATED
	Net Operating Income ($ in thousands)
	Three Months Ended December 31,
	2017			2016			% Change
Property Revenues (2)	$	35,167		$	34,764		1.2	%
Property Operating Expenses (2)	12,724			13,091			(2.8	)%
Property Net Operating Income	$	22,443		$	21,673		3.6	%
Cash Basis Property Revenues (3)	$	33,409		$	32,943		1.4	%
Cash Basis Property Operating Expenses (4)	12,735			13,103			(2.8	)%
Cash Basis Property Net Operating Income	$	20,674		$	19,840		4.2	%
End of Period Leased	92.6		%	91.6		%
Weighted Average Occupancy	87.7		%	90.4		%
	Year Ended December 31,
	2017			2016			% Change
Property Revenues (2)	$	142,087		$	135,371		5.0	%
Property Operating Expenses (2)	52,174			49,284			5.9	%
Property Net Operating Income	$	89,913		$	86,087		4.4	%
Cash Basis Property Revenues (3)	$	134,860		$	127,815		5.5	%
Cash Basis Property Operating Expenses (4)	52,220			49,331			5.9	%
Cash Basis Property Net Operating Income	$	82,640		$	78,484		5.3	%

(1)	Same Properties include those office properties that were operational and stabilized on January 1, 2016, excluding properties subsequently sold. See Non-GAAP Financial Measures - Calculation and Reconciliations. Properties included in this reporting period are as follows:
	Northpark	Emory University Hospital Midtown Medical Office Tower	Meridian Mark Plaza
	Promenade	Terminus 100	Terminus 200
	816 Congress	Fifth Third Center
(2)	Property Revenues and Expenses include results for the Company and its share of unconsolidated joint ventures. Net operating income for unconsolidated joint ventures is calculated as property revenues less property expenses at the joint ventures multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but believes that including these amounts with consolidated net operating income is meaningful to investors and analysts.
(3)	Cash Basis Same Property Revenues include that of the Company and its share of unconsolidated joint ventures. It represents Property Revenues, excluding straight-line rents, amortization of lease inducements, and amortization of acquired above and below market rents.
(4)	Cash Basis Same Property Operating Expenses include that of the Company and its share of unconsolidated joint ventures. It represents Property Operating Expenses, excluding straight-line ground rent expense and amortization of above and below market ground rent expense.

Cousins Properties Incorporated 17 Q4 2017 Supplemental Information

SAME PROPERTY PERFORMANCE (1)

	LEGACY PARKWAY PROPERTIES
	Net Operating Income ($ in thousands)
	Three Months Ended December 31,
	2017			2016			% Change
Cash Basis Property Revenues (2)	$	58,631		$	56,022		4.7	%
Cash Basis Property Operating Expenses (3)	22,440			21,790			3.0	%
Cash Basis Property Net Operating Income	$	36,191		$	34,232		5.7	%
End of Period Leased	94.3		%	93.3		%
Weighted Average Occupancy	93.0		%	91.4		%
	Year Ended December 31,
	2017			2016			% Change
Cash Basis Property Revenues (2)	$	228,469		$	207,904		9.9	%
Cash Basis Property Operating Expenses (3)	87,756			79,742			10.0	%
Cash Basis Property Net Operating Income	$	140,713		$	128,162		9.8	%

(1)	Same Properties include those office properties that were operational and stabilized on January 1, 2016, excluding properties subsequently sold. Properties included in this reporting period are as follows:
	3344 Peachtree	Harborview Plaza	Corporate Center
	3348 Peachtree	Hayden Ferry	San Jacinto Center
	3350 Peachtree	Hearst Tower	Tempe Gateway
	One Eleven Congress	NASCAR Plaza	The Pointe
	One Buckhead Plaza	Two Buckhead Plaza
(2)	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.
(3)	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 18 Q4 2017 Supplemental Information

OFFICE LEASING ACTIVITY(1)

	Three Months Ended December 31, 2017												Year Ended December 31, 2017
	New			Renewal			Expansion			Total			New			Renewal			Expansion			Total
Gross leased (square feet)										1,000,195												2,452,812
Less: Leases one year or less, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(57,173)												(263,133)
Net leased (square feet)	422,479			420,365			100,178			943,022			1,088,475			836,396			264,808			2,189,679
Number of transactions	11			11			7			29			58			61			22			141
Lease term (years) (2)	11.4			3.5			8.0			7.5			10.2			4.5			7.0			7.6
Net rent (per square foot) (3)	$	39.64		$	26.19		$	31.04		$	32.73		$	31.68		$	26.42		$	29.50		$	29.41
Free rent (per square foot)	(0.34		)	(0.18		)	(1.46		)	(0.39		)	(0.83		)	(0.51		)	(1.18		)	(0.75		)
Tenant Improvements and Commissions (per square foot)	(8.28		)	(3.85		)	(6.22		)	(6.09		)	(7.49		)	(4.03		)	(6.31		)	(6.02		)
Net effective rent (per square foot)	$	31.02		$	22.16		$	23.36		$	26.25		$	23.36		$	21.88		$	22.01		$	22.64
Second generation leased square feet (4)										545,089												1,319,149
Increase in second generation net rent (2)(3)(4)										19.7		%										19.6		%
Increase in cash basis second generation net rent (2)(4)(5)										6.3		%										6.9		%
(1) Excludes apartment and retail leasing at mixed-use projects.
(2) Weighted average.
(3) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term.
(4) Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, and leases for spaces that have been vacant for one year or more.
(5) Represents increase in net rent at the end of term paid by the prior tenant compared to net rent at beginning of term paid by the current tenant. For early renewals, represents increase in net rent at the end of the term of the original lease compared to net rent at the beginning of the extended term of the lease.

Cousins Properties Incorporated 19 Q4 2017 Supplemental Information

OFFICE LEASE EXPIRATIONS

Lease Expirations by Year (1)

Year of Expiration	Square Feet Expiring	% of Leased Space		Annual Contractual Rents ($000's) (2)		% of Total Annual Contractual Rents		Annual Contractual Rent/Sq. Ft. (2)
2018	777,011	6.5	%	21,006		5.4	%	27.03
2019	892,339	7.4	%	26,841		7.0	%	30.08
2020	871,998	7.3	%	28,110		7.3	%	32.24
2021	1,315,069	10.9	%	40,888		10.6	%	31.09
2022	1,472,160	12.2	%	44,626		11.6	%	30.31
2023	1,076,065	8.9	%	36,944		9.6	%	34.33
2024	945,557	7.9	%	34,525		8.9	%	36.51
2025	1,352,057	11.2	%	44,389		11.5	%	32.83
2026 & Thereafter	3,335,996	27.7	%	108,721		28.1	%	32.59
Total	12,038,252	100.0	%	$	386,050	100.0	%	$	32.07

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

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

(1) Company's share.

(2) Annual Contractual 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 20 Q4 2017 Supplemental Information

OFFICE LEASE EXPIRATIONS

(1) Company's share

Cousins Properties Incorporated 21 Q4 2017 Supplemental Information

TOP 20 OFFICE TENANTS

	Tenant (1)	Number of Properties Occupied	Number of Markets Occupied	Company's Share of Square Footage	Company's Share of Annualized Base Rent (2)		Percentage of Total Company's Share of Annualized Base Rent	Weighted Average Remaining Lease Term (Years)
1	Bank of America, N.A.	4	2	1,103,765	$	18,825,511	5.7%	7
2	Wells Fargo Bank, N.A.	5	4	236,033	7,064,444		2.1%	5
3	Blue Cross Blue Shield	1	1	227,592	6,136,052		1.9%	3
4	McGuirewoods LLP	3	3	198,648	5,921,920		1.8%	9
5	ADP, LLC	1	1	225,000	5,400,000		1.6%	10
6	Smith, Gambrell & Russell, LLP	1	1	159,136	5,059,025		1.5%	3
7	Regus Equity Business Centers, LLC	7	4	169,994	5,019,436		1.5%	4
8	OSI Restaurant Partners, LLC (dba Outback Steakhouse)	1	1	167,723	4,886,131		1.5%	7
9	NASCAR Media Group, LLC	1	1	139,461	4,796,073		1.5%	3
10	Hearst Communications, Inc.	1	1	137,724	4,269,444		1.3%	12
11	Amazon	3	2	120,153	4,209,909		1.3%	6
12	Parsley Energy, L.P.	1	1	135,107	4,116,710		1.2%	7
13	Board of Regents of the University System of Georgia (dba Georgia State University)	1	1	135,124	3,991,563		1.2%	6
14	K & L Gates LLP	1	1	110,914	3,838,935		1.2%	10
15	Fifth Third Bank	2	2	120,436	3,458,125		1.0%	4
16	Carlton Fields Jorden Burt, PA	1	1	83,798	3,351,082		1.0%	14
17	Westrock Shared Services, LLC	1	1	107,578	3,300,936		1.0%	6
18	SVB Financial Group (dba Silicon Valley Bank)	1	1	100,532	3,043,323		0.9%	6
19	National Union Fire Insurance Company (dba AIG)	1	1	105,362	3,037,233		0.9%	1
20	US Bank National Association	2	2	89,363	2,776,764		0.8%	8
	Grand Total			3,873,443	$	102,502,616	30.9%	7
(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.
Note:	This schedule includes tenants whose leases have commenced and/or who have taken occupancy. Leases that have been signed but have not commenced are excluded.

Cousins Properties Incorporated 22 Q4 2017 Supplemental Information

TENANT INDUSTRY DIVERSIFICATION

(1) Represents Company's share of total revenues excluding properties sold prior to December 31, 2017.

Cousins Properties Incorporated 23 Q4 2017 Supplemental Information

INVESTMENT ACTIVITY

Completed Property Acquisitions

Property	Type	Metropolitan Area	Company's Ownership Interest	Timing	Square Feet		Gross Purchase Price ($ in thousands)
2017
111 West Rio (1)	Office	Phoenix	100.0%	1Q	225,000		$	19,600
2016
Parkway Properties	Office	Various	Various	4Q	8,819,000		(2		)
Cousins Fund II, L.P. (3)	Office	Various	100.0%	4Q	(3	)	279,100
2014
Fifth Third Center	Office	Charlotte	100.0%	3Q	698,000		215,000
Northpark	Office	Atlanta	100.0%	4Q	1,528,000		348,000
2013
Post Oak Central	Office	Houston	100.0%	1Q	1,280,000		230,900
Terminus 200	Office	Atlanta	50.0%	1Q	566,000		164,000
816 Congress	Office	Austin	100.0%	2Q	435,000		102,400
Greenway Plaza	Office	Houston	100.0%	3Q	4,348,000		950,000
777 Main	Office	Fort Worth	100.0%	3Q	980,000		160,000
2012
2100 Ross	Office	Dallas	100.0%	3Q	844,000		59,200
					19,723,000		$	2,528,200

Completed Property Developments

Project	Type	Metropolitan Area	Company's Ownership Interest	Timing	Square Feet		Total Project Cost ($ in thousands)
2017
8000 Avalon	Office	Atlanta	90.0%	2Q	224,000		73,000
Carolina Square	Mixed	Chapel Hill	50.0%	3Q	468,000	(4)	$	123,000
2015
Colorado Tower	Office	Austin	100.0%	1Q	373,000		126,100
Emory Point - Phase II	Mixed	Atlanta	75.0%	3Q	302,000		75,400
Research Park V	Office	Austin	100.0%	4Q	173,000		45,000
2013
Emory Point - Phase I	Mixed	Atlanta	75.0%	4Q	484,000		102,300
2012
Mahan Village	Retail	Tallahassee	50.5%	4Q	147,000		25,800
					2,171,000		$	570,600

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

(2) This transaction was part of the Parkway Merger. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the years ended

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

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

Hayden Ferry buildings in Tempe and 3344 Peachtree in Atlanta.

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

Cousins Properties Incorporated 24 Q4 2017 Supplemental Information

INVESTMENT ACTIVITY

Completed Property Dispositions

Property	Type	Metropolitan Area	Company's Ownership Interest	Timing	Square Feet	Gross Sales Price ($ in thousands)
2017
Emory Point I and II	Mixed	Atlanta	75.0%	2Q	786,000	$	199,000
American Cancer Society Center	Office	Atlanta	100.0%	2Q	996,000	166,000
Bank of America Center, One Orlando  ---Centre, and Citrus Center	Office	Orlando	100.0%	4Q	1,038,000	208,100
Courvoisier Centre (1)	Office	Miami	20.0%	4Q	343,000	33,900
2016
100 North Point Center East	Office	Atlanta	100.0%	1Q	129,000	22,000
Post Oak Central and Greenway Plaza (2)	Office	Houston	100.0%	4Q	5,628,000	—
Two Liberty Place	Office	Philadelphia	100.0%	4Q	941,000	219,000
191 Peachtree	Office	Atlanta	100.0%	4Q	1,225,000	267,500
Lincoln Place	Office	Miami	100.0%	4Q	140,000	80,000
The Forum	Office	Atlanta		4Q	220,000	70,000
2015
2100 Ross	Office	Dallas	100.0%	3Q	844,000	131,000
200, 333, and 555 North Point Center East	Office	Atlanta	100.0%	4Q	411,000	70,300
The Points at Waterview	Office	Dallas	100.0%	4Q	203,000	26,800
2014
Lakeshore and University Park Place	Office	Birmingham	100.0%	3Q	320,000	44,700
Mahan Village	Retail	Florida	50.5%	4Q	147,000	29,500
Cousins Watkins LLC	Retail	Other	50.5%	4Q	339,000	50,000
777 Main	Office	Fort Worth	100.0%	4Q	980,000	167,000
2013
Terminus 100	Office	Atlanta	100.0%	1Q	656,000	209,200
Tiffany Springs MarketCenter	Retail	Kansas City	88.5%	3Q	238,000	53,500
The Avenue Murfreesboro	Retail	Nashville	50.0%	3Q	752,000	164,000
CPV Two LLC and CPV Five LLC	Retail	Other	10.3%	3Q	2,113,000	522,300
Inhibitex	Office	Atlanta	100.0%	4Q	51,000	8,300
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
					20,721,000	$	3,106,500

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

(2) This transaction was part of the Parkway Merger. See further information in note 3 to the financial statements included in the Company's filings on Form 10-K for the years ended

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

Cousins Properties Incorporated 25 Q4 2017 Supplemental Information

DEVELOPMENT PIPELINE (1)

Project	Type	Metropolitan Area	Company's Ownership Interest		Actual or Projected Construction Start Date	Number of Square Feet /Apartment Units	Estimated Project Cost (1) ($ in thousands)		Company's Share of Estimated Project Costs		Project Cost Incurred to Date ($ in thousands)		Company's Share of Project Costs Incurred to Date		Percent Leased		Initial Occupancy (2)	Estimated Stabilization (3)
864 Spring Street (NCR Phase I)	Office	Atlanta, GA	100	%	3Q15	503,000	219,000		219,000		212,628		212,628		100	%	1Q18 (5)	1Q18
858 Spring Street (NCR Phase II)	Office	Atlanta, GA	100	%	4Q16	260,000	120,000		120,000		68,354		68,354		100	%	4Q18	4Q18
Dimensional Place	Office	Charlotte, NC	50	%	4Q16		94,000		47,000		53,199		26,600
Office						266,000									100	%	4Q18	4Q18
Retail						16,000									—	%	4Q18	4Q18
120 West Trinity	Mixed	Atlanta, GA	20	%	1Q17		85,000		17,000		18,066		3,613
Office						33,000									—	%	1Q19	1Q20
Retail						19,000									—	%	1Q19	1Q20
Apartments						330									—	%	1Q19	1Q20
300 Colorado (4)	Office	Austin, TX	50	%	4Q18		175,000		87,500		—		—
Office						302,000									100	%	1Q21	1Q21
Retail						7,000									100	%	1Q21	1Q21
Total							$	693,000	$	490,500	$	352,247	$	311,195

(1)	This schedule shows projects currently under active development through the substantial completion of construction. Amounts included in the estimated project cost column represent the estimated costs of the project through stabilization. Significant estimation is required to derive these costs, and the final costs may differ from these estimates. The projected stabilization dates are also estimates and are subject to change as the project proceeds through the development process.
(2)	The quarter within which the Company estimates the first tenant will take occupancy.
(3)	Stabilization is the earlier of the quarter within which the Company estimates it will achieve 90% economic occupancy or one year from initial occupancy.
(4)	The budget is not finalized, and it is subject to change. In January 2018, the joint venture acquired the land for this project, and construction is expected to commence December 2018.
(5)	Initial occupancy took place on January 1, 2018.

Cousins Properties Incorporated 26 Q4 2017 Supplemental Information

LAND INVENTORY

	Metropolitan Area	Type	Company's Ownership Interest	Total Developable Land (Acres)		Company's Share (Acres)
Wildwood Office Park	Atlanta	Commercial	50%	22
North Point	Atlanta	Commercial	100%	12
The Avenue Forsyth-Adjacent Land	Atlanta	Commercial	100%	10
10000 Avalon	Atlanta	Commercial	75%	3
Georgia				47
Padre Island	Corpus Christi	Residential	50%	15
Victory Center	Dallas	Commercial	75%	3
Texas				18
Corporate Center	Tampa	Commercial	100%	7
Florida				7
Total Land Held (Acres)				72		52
Total Land Held (Cost Basis)				$	47,902	$	23,254

Cousins Properties Incorporated 27 Q4 2017 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	2018			2019			2020			2021			2022			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%	2.76%	12/2/21	$	—		$	—		$	—		$	250,000		$	—		$	—		$	250,000		$	(1,541	)	$	—	$	248,459
Credit Facility, Unsecured (LIBOR + 1.10%-1.45%) (2)(5)	100%	2.66%	5/28/19	—			—			—			—			—			—			—			—			—		—
Total Floating Rate Debt				—			—			—			250,000			—			—			250,000			(1,541		)	—		248,459
Fixed Rate
Senior Notes, Unsecured	100%	3.91%	7/6/25	—			—			—			—			—			250,000			250,000			(1,371		)	—		248,629
Fifth Third Center	100%	3.37%	10/1/26	3,061			3,165			3,274			3,386			3,502			130,169			146,557			(583		)	—		145,974
Colorado Tower	100%	3.45%	9/1/26	573			2,343			2,425			2,510			2,598			109,551			120,000			(835		)	—		119,165
Promenade	100%	4.27%	10/1/22	3,116			3,252			3,393			3,541			89,053			—			102,355			(284		)	—		102,071
Senior Notes, Unsecured	100%	4.09%	7/6/27	—			—			—			—			—			100,000			100,000			(511		)	—		99,489
816 Congress	100%	3.75%	11/1/24	1,628			1,690			1,754			1,821			1,890			74,521			83,304			(562		)	—		82,742
Meridian Mark Plaza	100%	6.00%	8/1/20	514			546			22,978			—			—			—			24,038			(68		)	—		23,970
The Pointe	100%	4.01%	2/10/19	455			22,055			—			—			—			—			22,510			—			219		22,729
Total Fixed Rate Debt				9,347			33,051			33,824			11,258			97,043			664,241			848,764			(4,214		)	219		844,769
Total Consolidated Debt				$	9,347		$	33,051		$	33,824		$	261,258		$	97,043		$	664,241		$	1,098,764		$	(5,755	)	$	219	$	1,093,228
Unconsolidated Debt
Floating Rate
Carolina Square (LIBOR + 1.90%) (3)	50%	3.46%	5/1/18	32,206			—			—			—			—			—			32,206			—			—		32,206
Total Floating Rate Debt				32,206			—			—			—			—			—			32,206			—			—		32,206
																			.
Fixed Rate
Terminus 100	50%	5.25%	1/1/23	1,418			1,494			1,575			1,659			1,749			54,091			61,986			(64		)	—		61,922
Terminus 200	50%	3.79%	1/1/23	800			831			863			896			931			35,350			39,671			(27		)	—		39,644
Emory University Hospital Midtown Medical Office       Tower	50%	3.50%	6/1/23	786			813			842			872			903			31,436			35,652			(129		)	—		35,523
Total Fixed Rate Debt				3,004			3,138			3,280			3,427			3,583			120,877			137,309			(220		)	—		137,089
Total Unconsolidated Debt				35,210			3,138			3,280			3,427			3,583			120,877			169,515			(220		)	—		169,295
Total Debt				$	44,557		$	36,189		$	37,104		$	264,685		$	100,626		$	785,118		$	1,268,279		$	(5,975	)	$	219	$	1,262,523
Total Maturities (4)				$	32,206		$	22,018		$	22,644		$	250,000		$	86,295		$	756,515		$	1,169,678
% of Maturities				3		%	1		%	2		%	21		%	8		%	65		%	100		%

Cousins Properties Incorporated 28 Q4 2017 Supplemental Information

DEBT SCHEDULE

Floating and Fixed Rate Debt Analysis

	Total Debt ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	282,206	22	%	2.84	%	3.5
Fixed Rate Debt	986,073		78	%	3.93	%	7.1
Total Debt	$	1,268,279	100	%	3.69	%	6.3

(1) The spread over LIBOR at December 31, 2017 was 1.20%.

(2) Total borrowing capacity of the Credit Facility as of December 31, 2017 was $500 million. The spread over LIBOR at December 31, 2017 was 1.10%.

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

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

(5) Subsequent to year end, the Company entered into a Fourth Amended and Restated Credit Agreement under which the Company may borrow up to $1 billion if certain conditions are satisfied. The new Credit Facility matures in January 2023.

Cousins Properties Incorporated 29 Q4 2017 Supplemental Information

DEBT SCHEDULE

Cousins Properties Incorporated 30 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017
Income from Discontinued Operations
Rental Property Revenues	$	176,828		$	43,123		$	44,281		$	46,046		$	3,477		$	136,927		$	—		$	—		$	—		$	—		$	—
Rental Property Operating Expenses	(73,630		)	(17,805		)	(19,155		)	(19,638		)	(1,738		)	(58,336		)	—			—			—			—			—
Net Operating Income	103,198			25,318			25,126			26,408			1,739			78,591			—			—			—			—			—
Termination Fees	450			186			102			—			—			288			—			—			—			—			—
Interest and Other Expense	(8,009		)	(1,975		)	(1,965		)	(1,956		)	(126		)	(6,022		)	—			—			—			—			—
Transaction Costs	—			—			—			(494		)	(5,855		)	(6,349		)	—			—			—			—			—
FFO from Discontinued Operations	95,639			23,529			23,263			23,958			(4,242		)	66,508			—			—			—			—			—
Depreciation and Amortization of Real Estate	(63,791		)	(15,428		)	(15,740		)	(15,221		)	(956		)	(47,345		)	—			—			—			—			—
Income (Loss) from Discontinued Operations	31,848			8,101			7,523			8,737			(5,198		)	19,163			—			—			—			—			—
FFO and EBITDA
Net income available to common stockholders	125,518			79,109			7,765			11,657			36,892			79,109			4,751			168,089			12,067			31,368			216,275
Depreciation and amortization of real estate assets:
Consolidated properties	70,003			16,164			16,306			16,293			47,819			96,583			54,433			49,575			47,161			43,700			194,869
Share of unconsolidated joint ventures	11,645			3,259			3,231			3,268			4,146			13,904			4,195			3,478			2,862			2,656			13,191
Discontinued properties	63,791			15,428			15,740			15,221			956			47,345			—			—			—			—			—
Partners' share of real estate depreciation	—			—			—			—			(3,564		)	(3,564		)	—			—			(4		)	(19		)	(23		)
(Gain) loss on sale of depreciated properties:
Consolidated properties	(78,759		)	(14,190		)	246			—			(59,589		)	(73,533		)	18			(119,767		)	36			(13,330		)	(133,043		)
Share of unconsolidated joint ventures	—			—			—			—			—			—			3,539			(37,871		)	—			(718		)	(35,050		)
Discontinued properties	551			—			—			—			—			—			—			—			—			—			—
Non-controlling interest related to unit holders	—			—			—			—			784			784			101			2,856			212			512			3,681
FFO	192,749			43,457			43,288			46,439			27,444			160,628			67,037			66,360			62,334			64,169			259,900
Interest Expense	38,178			9,421			9,359			9,748			12,566			41,094			12,066			10,444			9,363			9,509			41,382
Non-Real Estate Depreciation and Amortization	1,669			377			335			328			325			1,365			451			465			461			497			1,874
Acquisition and Merger Costs	299			19			2,424			1,940			26,488			30,871			1,930			246			(677		)	162			1,661
(Gain)/Loss on Extinguishment of Debt	—			—			—			—			5,180			5,180			—			(1,829		)	(429		)	—			(2,258		)
Impairment Loss	—			—			—			—			4,526			4,526			—			—			—			—			—
EBITDA (1)	232,895			53,274			55,406			58,455			76,529			243,664			81,484			75,686			71,052			74,337			302,559
Income (Loss) from Unconsolidated Joint Ventures
Net Operating Income
Office Properties	18,501			5,050			5,213			5,013			6,123			21,400			6,909			6,750			6,890			6,638			27,187
Other Properties	5,834			1,596			1,741			1,747			2,302			7,386			2,267			859			44			696			3,866
Net Operating Income	24,335			6,646			6,954			6,760			8,425			28,785			9,176			7,609			6,934			7,334			31,053
Sales Less Cost of Sales	2,280			—			—			—			190			190			—			—			—			—			—
Termination Fees	419			—			—			—			3,000			3,000			959			195			132			8			1,294
Interest Expense	(7,455		)	(2,007		)	(2,026		)	(2,038		)	(2,352		)	(8,423		)	(2,325		)	(1,922		)	(1,776		)	(1,836		)	(7,859		)
Other Income/(Expense)	368			454			87			72			303			916			505			45			33			185			768
Funds from Operations - Unconsolidated Joint Ventures	19,947			5,093			5,015			4,794			9,566			24,468			8,315			5,927			5,323			5,691			25,256

Cousins Properties Incorporated 31 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017
Gain (Loss) on Sale of Depreciated Investment Properties, net	$	—		$	—		$	—		$	—		$	—		$	—		$	(3,539	)	$	37,871		$	—		$	718		$	35,050
Depreciation and Amortization of Real Estate	(11,645		)	(3,259		)	(3,231		)	(3,268		)	(4,147		)	(13,905		)	(4,195		)	(3,478		)	(2,862		)	(2,656		)	(13,191		)
Net Income from Unconsolidated Joint Ventures	8,302			1,834			1,784			1,526			5,419			10,563			581			40,320			2,461			3,753			47,115
Market Capitalization
Common Stock price at Period End	9.43			10.38			10.40			10.44			8.51			8.51			8.27			8.79			9.34			9.25			9.25
Number of Common Shares/Units Outstanding at Period End	211,513			210,107			210,171			210,170			401,596			401,596			426,823			426,942			426,995			426,995			426,995
Common Stock Capitalization	1,994,568			2,180,911			2,185,778			2,194,175			3,417,582			3,417,582			3,529,826			3,752,820			3,988,133			3,949,704			3,949,704
Debt	721,293			767,811			777,485			888,378			1,380,920			1,380,920			1,240,728			1,019,619			1,095,177			1,093,228			1,093,228
Share of Unconsolidated Debt	225,724			224,430			222,514			223,944			251,350			251,350			257,316			186,013			191,075			169,295			169,295
Debt (1)	947,017			992,241			999,999			1,112,322			1,632,270			1,632,270			1,498,044			1,205,632			1,286,252			1,262,523			1,262,523
Total Market Capitalization	2,941,585			3,173,152			3,185,777			3,306,497			5,049,852			5,049,852			5,027,870			4,958,452			5,274,385			5,212,227			5,212,227
Credit Ratios
Net Debt (Debt (1) minus Cash)	945,014			986,777			999,053			1,015,081			1,596,583			1,596,583			1,462,289			1,189,212			1,224,085			1,113,594			1,113,594
Total Market Capitalization	2,941,585			3,173,152			3,185,777			3,306,497			5,049,852			5,049,852			5,027,870			4,958,452			5,274,385			5,212,227			5,212,227
Net Debt / Total Market Capitalization	32.1		%	31.1		%	31.4		%	30.7		%	31.6		%	31.6		%	29.1		%	24.0		%	23.2		%	21.4		%	21.4		%
Total Assets - Consolidated	2,597,803			2,610,408			2,622,995			2,760,732			4,171,607			4,171,607			4,206,289			4,136,046			4,224,200			4,204,619			4,204,619
Accumulated Depreciation - Consolidated	463,008			486,747			519,075			539,719			269,339			269,339			326,039			303,266			352,425			380,908			380,908
Undepreciated Assets - Unconsolidated (1)	486,941			460,516			504,408			507,611			604,236			604,236			578,207			467,992			483,299			455,100			455,100
Less: Investment in Unconsolidated Joint Ventures	(102,577		)	(110,138		)	(114,455		)	(116,933		)	(179,397		)	(179,397		)	(128,589		)	(101,532		)	(109,222		)	(101,414		)	(101,414		)
Total Undepreciated Assets (1)	3,445,175			3,447,533			3,532,023			3,691,129			4,865,785			4,865,785			4,981,946			4,805,772			4,950,702			4,939,213			4,939,213
Net Debt (Debt (1) minus Cash)	945,014			986,777			999,053			1,015,081			1,596,583			1,596,583			1,462,289			1,189,212			1,224,085			1,113,594			1,113,594
Undepreciated Assets (1)	3,445,175			3,447,533			3,532,023			3,691,129			4,865,785			4,865,785			4,981,946			4,805,772			4,950,702			4,939,213			4,939,213
Net Debt / Total Undepreciated Assets (1)	27.4		%	28.6		%	28.3		%	27.5		%	32.8		%	32.8		%	29.4		%	24.7		%	24.7		%	22.5		%	22.5		%
Coverage Ratios (1)
Interest Expense	38,178			9,421			9,359			9,748			12,566			41,094			12,066			10,444			9,363			9,509			41,382
Scheduled Principal Payments	9,892			2,444			3,143			3,344			2,632			11,563			3,810			3,334			2,846			2,869			12,859
Fixed Charges	48,070			11,865			12,502			13,092			15,198			52,657			15,876			13,778			12,209			12,378			54,241
EBITDA	232,895			53,274			55,406			58,455			76,529			243,664			81,484			75,686			71,052			74,337			302,559
Fixed Charges Coverage Ratio (1)	4.84			4.49			4.43			4.46			5.04			4.63			5.13			5.49			5.82			6.01			5.58
Net Debt (Debt (1) minus Cash)	945,014			986,777			999,053			1,015,081			1,596,583			1,596,583			1,462,289			1,189,212			1,224,085			1,113,594			1,113,594
Annualized EBITDA (2)	236,754			213,096			221,624			233,820			306,116			306,116			325,936			302,744			284,208			297,348			297,348
Net Debt / Annualized EBITDA (2)	3.99			4.63			4.51			4.34			5.22			5.22			4.49			3.93			4.31			3.75			3.75

Cousins Properties Incorporated 32 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	2015			2016 1st			2016 2nd			2016 3rd			2016 4th			2016			2017 1st			2017 2nd			2017 3rd			2017 4th			2017
Dividend Information
Common Dividends (3)	$	69,196		$	16,918		$	16,810		$	16,821		$	23,577		$	74,126		$	25,161		$	25,212		$	25,201		$	25,202		$	100,776
FFO	192,749			43,457			43,288			46,439			27,444			160,628			67,037			66,360			62,334			64,169			259,900
FFO Payout Ratio	35.9		%	38.9		%	38.8		%	36.2		%	85.9		%	46.1		%	37.5		%	38.0		%	40.4		%	39.3		%	38.8		%
FFO	192,749			43,457			43,288			46,439			27,444			160,628			67,037			66,360			62,334			64,169			259,900
Straight Line Rental Revenue	(20,009		)	(3,595		)	(3,434		)	(3,449		)	(8,489		)	(18,967		)	(9,608		)	(7,826		)	(6,825		)	(6,714		)	(30,973		)
Above and Below Market Rents	(7,981		)	(1,834		)	(1,854		)	(1,907		)	(1,502		)	(7,097		)	(1,602		)	(1,929		)	(1,852		)	(1,838		)	(7,221		)
Amortization of Above and Below Market Debt	—			—			—			—			(2,999		)	(2,999		)	(3,190		)	(646		)	(51		)	(50		)	(3,937		)
Lease Inducements	1,807			441			499			373			209			1,522			133			103			114			135			485
Ground Lease Straight Line Rent	88			(2		)	(2		)	(2		)	110			104			110			110			110			110			440
Above and Below Market Rents Ground Rent	(55		)	(14		)	(14		)	(14		)	39			(3		)	40			40			40			39			159
Acquisition and Merger Costs	299			19			2,424			1,940			26,488			30,871			1,930			246			(677		)	162			1,661
(Gain) loss on Extinguishment of Debt	—			—			—			—			5,180			5,180			—			(1,829		)	(429		)	—			(2,258		)
Impairment Loss	—			—			—			—			4,526			4,526			—			—			—			—			—
Second Generation CAPEX	(54,214		)	(7,904		)	(13,166		)	(13,968		)	(11,838		)	(46,876		)	(10,971		)	(7,569		)	(15,949		)	(18,996		)	(53,485		)
Deferred Income - Tenant Improvements	(48		)	(280		)	(488		)	(564		)	(594		)	(1,926		)	(625		)	(732		)	(761		)	(750		)	(2,868		)
FAD (1)	112,636			30,288			27,253			28,848			38,574			124,963			43,254			46,328			36,054			36,267			161,903
Common Dividends (3)	69,196			16,918			16,810			16,821			23,577			74,126			25,161			25,212			25,201			25,202			100,776
FAD Payout Ratio (1)	61.4		%	55.9		%	61.7		%	58.3		%	61.1		%	59.3		%	58.2		%	54.4		%	69.9		%	69.5		%	62.2		%
Operations Ratios
Total Undepreciated Assets (1)	3,445,175			3,447,533			3,532,023			3,691,129			4,865,785			4,865,785			4,981,946			4,805,772			4,950,702			4,939,213			4,939,213
General and Administrative Expenses	16,918			8,242			4,691			4,368			8,290			25,591			6,182			8,618			7,193			5,530			27,523
Annualized General and Administrative Expenses (4) / Total Undepreciated Assets	0.49		%	0.96		%	0.53		%	0.47		%	0.68		%	0.53		%	0.50		%	0.72		%	0.58		%	0.45		%	0.56		%
2nd Generation TI & Leasing Costs & Building CAPEX
Second Generation Leasing Related Costs	46,821			4,867			10,356			7,992			10,021			33,236			10,710			7,258			15,480			17,168			50,616
Second Generation Building Improvements	7,393			3,037			2,810			5,976			1,817			13,640			261			311			469			1,828			2,869
	54,214			7,904			13,166			13,968			11,838			46,876			10,971			7,569			15,949			18,996			53,485
(1) Includes Company share of unconsolidated joint ventures. These amounts are derived from the amounts in the categories indicated that are recorded at the joint venture multiplied by the Company's ownership interest. The Company does not control the operations of the unconsolidated joint ventures, but believes that including these amounts in the categories indicated is meaningful to investors and analysts.
(2) Annualized equals quarter amount annualized.
(3) The fourth quarter 2016 dividend was declared and paid a quarter in arrears.
(4) Quarter amount represents quarter annualized; year-to-date represents year-to-date actual annualized.
Note: Amounts may differ slightly from other schedules contained herein due to rounding.

Cousins Properties Incorporated 33 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016
Net Income Available to Common Stockholders	$	31,368		$	36,892		$	216,275		$	79,109
Depreciation and amortization of real estate assets:
Consolidated properties	43,700			47,819			194,869			96,583
Discontinued properties	—			956			—			47,345
Share of unconsolidated joint ventures	2,656			4,146			13,191			13,904
Partners' share of real estate depreciation	(19		)	(3,564		)	(23		)	(3,564		)
(Gain) loss on sale of depreciated properties:
Consolidated properties	(13,330		)	(59,589		)	(133,043		)	(73,533		)
Share of unconsolidated joint ventures	(718		)	—			(35,050		)	—
Non-controlling interest related to unit holders	512			784			3,681			784
Funds From Operations	$	64,169		$	27,444		$	259,900		$	160,628
Per Common Share — Diluted:
Net Income Available Available to Common Shareholders	$	0.07		$	0.10		$	0.52		$	0.31
Funds from Operations	$	0.15		$	0.07		$	0.61		$	0.63
Weighted Average Shares — Diluted	427,288			391,413			423,297			256,023

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

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

Cousins Properties Incorporated 34 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	Three Months Ended						Year Ended
Cousins Net Operating Income (in thousands)	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Net income	$	31,871		$	37,887		$	219,959		$	80,104
Net operating income from unconsolidated joint ventures	7,334			8,426			31,053			28,785
Net operating income from discontinued operations	—			1,739			—			78,591
Fee income	(2,245		)	(2,379		)	(8,632		)	(8,347		)
Other income	(1,925		)	(481		)	(11,518		)	(1,050		)
Reimbursed expenses	860			796			3,527			3,259
General and administrative expenses	5,530			8,290			27,523			25,592
Interest expense	7,673			10,089			33,524			26,650
Depreciation and amortization	44,199			48,145			196,745			97,948
Acquisition and transaction costs	162			20,633			1,661			24,521
Other expenses	733			5,205			1,796			5,888
(Gain) loss on extinguishment of debt	—			5,180			(2,258		)	5,180
Income from unconsolidated joint ventures	(3,753		)	(5,418		)	(47,115		)	(10,562		)
(Gain) loss on sale of investment properties	(13,330		)	(63,169		)	(133,059		)	(77,114		)
Income from discontinued operations	—			5,198			—			(19,163		)
Net Operating Income	$	77,109		$	80,141		$	313,206		$	260,282
Straight line rent	6,714			8,489			30,973			18,968
Non-cash income	2,454			1,887			9,602			7,500
Non-cash expense	(149		)	(148		)	(597		)	(102		)
Cash Basis Net Operating Income	$	68,090		$	69,913		$	273,228		$	233,916
Net Operating Income
Same Property	$	22,443		$	21,673		$	89,913		$	86,087
Non-Same Property	54,666			58,468			223,293			174,195
	$	77,109		$	80,141		$	313,206		$	260,282
Cash Basis Net Operating Income
Same Property	$	20,674		$	19,840		$	82,640		$	78,484
Non-Same Property	47,416			50,073			190,588			155,432
	$	68,090		$	69,913		$	273,228		$	233,916

Cousins Properties Incorporated 35 Q4 2017 Supplemental Information

NON-GAAP FINANCIAL MEASURES - CALCULATIONS AND RECONCILIATIONS

	Three Months Ended						Year Ended
Legacy Parkway Net Operating Income (in thousands)	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
Net income	$	31,871		$	37,887		$	219,959		$	80,104
Net operating income from unconsolidated joint ventures	7,334			8,426			31,053			28,785
Net operating income from discontinued operations	—			1,739			—			78,591
Fee income	(2,245		)	(2,379		)	(8,632		)	(8,347		)
Other income	(1,925		)	(481		)	(11,518		)	(1,050		)
Reimbursed expenses	859			796			3,527			3,259
General and administrative expenses	5,530			8,290			27,523			25,592
Interest expense	7,673			10,089			33,524			26,650
Depreciation and amortization	44,199			48,145			196,745			97,948
Acquisition and transaction costs	162			20,633			1,661			24,521
Other expenses	733			5,205			1,796			5,888
(Gain) loss on extinguishment of debt	—			5,180			(2,258		)	5,180
Income from unconsolidated joint ventures	(3,753		)	(5,418		)	(47,115		)	(10,562		)
(Gain) loss on sale of investment properties	(13,330		)	(63,169		)	(133,059		)	(77,114		)
Income from discontinued operations	—			5,198			—			(19,163		)
Net Operating Income for non-Legacy Parkway Same Properties	(36,174		)	(41,820		)	(152,059		)	(221,961		)
Net Operating Income for Legacy Parkway Same Properties included in Cousins' consolidated results	40,934			38,321			161,147			38,321
Net Operating Income for Legacy Parkway Same Properties not included in Cousins' consolidated results (1)	—			2,091			—			108,795
Legacy Parkway Same Property Net Operating Income	40,934			40,412			161,147			147,116
Legacy Parkway Same Property Net Operating Income	40,934			40,412			161,147			147,116
Straight line rent	(3,320		)	(5,161		)	(16,040		)	(16,558		)
Non-cash income	(1,586		)	(1,189		)	(5,044		)	(2,963		)
Non-cash expense	163			170			650			567
Legacy Parkway Same Property Cash Basis Net Operating Income	$	36,191		$	34,232		$	140,713		$	128,162
(1) Cousins merged with Parkway Properties, Inc. on October 6, 2016. Therefore, the operations of the Parkway properties acquired in the merger are included in the consolidated operations of Cousins from October 6, 2016 forward. The operations of the Parkway properties from periods prior to October 6, 2016 must be added to the operations including and subsequent to October 6, 2016 to present a full comparable period for purposes of reporting Legacy Parkway Same Property information.

Cousins Properties Incorporated 36 Q4 2017 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 in newly acquired buildings as well as building improvements on newly acquired buildings that management identifies as necessary to bring the building to the Company's operational standards. In addition, the Company excludes leasing costs and building improvements associated with properties identified as under redevelopment or repositioning. “Cash Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements, amortization of acquired above and below market rents, and non-cash ground lease expense. “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, 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” ("NOI") is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Net Operating Income, which is rental property revenues less rental property operating expenses, excludes certain components from net income in order to provide results that are more closely related to a property's results of operations. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property's performance. Depreciation and amortization are also excluded from Net Operating Income for the reasons described under FFO above.     “Same Property Net Operating Income” represents Net Operating Income or Cash Basis Net Operating Income for those office properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy or has been substantially complete and owned by the Company for each of the two periods presented. Same-Property Net Operating Income or Cash Basis Same Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio.

Cousins Properties Incorporated 37 Q4 2017 Supplemental Information