10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 001-11312

COUSINS PROPERTIES INCORPORATED

(Exact name of registrant as specified in its charter)

Georgia				58-0869052
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
3344 Peachtree Road NE	Suite 1800	Atlanta	Georgia	30326-4802
(Address of principal executive offices)				(Zip Code)

(404) 407-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 20, 2023
Common Stock, $1 par value per share	151,773,774 shares

	Page No.
PART I-FINANCIAL INFORMATION	3
Item 1. Condensed Consolidated Financial Statements (Unaudited)	3
CONSOLIDATED BALANCE SHEETS	3
CONSOLIDATED STATEMENTS OF OPERATIONS	4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5
CONSOLIDATED STATEMENTS OF EQUITY	6
CONSOLIDATED STATEMENTS OF CASH FLOWS	8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3. Quantitative and Qualitative Disclosures About Market Risk	31
Item 4. Controls and Procedures	31
PART II. OTHER INFORMATION	32
Item 1. Legal Proceedings	32
Item 1A. Risk Factors	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6. Exhibits	33
SIGNATURES	34

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, 2022, and as itemized herein. These forward-looking statements include information about the Company's possible or assumed future results of the business and the Company's 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:

•guidance and underlying assumptions;

•business and financial strategy;

•future debt financings;

•future acquisitions and dispositions of operating assets or joint venture interests;

•future acquisitions and dispositions of land, including ground leases;

•future development and redevelopment opportunities, including fee development opportunities;

•future issuances and repurchases of common stock, limited partnership units, or preferred stock;

•future distributions;

•projected capital expenditures;

•market and industry trends;

•entry into new markets, changes in existing market concentrations, or exits from existing markets;

•future changes in interest rates and liquidity of capital markets; and

•all statements that address operating performance, events, investments, 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 that is currently available. These beliefs, assumptions, and expectations may change as a result of possible events or factors, not all of which are known. If a change occurs, our business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following:

•the availability and terms of capital;

•the ability to refinance or repay indebtedness as it matures;

•the failure of purchase, sale, or other contracts to ultimately close;

•the failure to achieve anticipated benefits from acquisitions, investments, or dispositions;

•the potential dilutive effect of common stock or operating partnership unit issuances;

•the availability of buyers and pricing with respect to the disposition of assets;

•changes in national and local economic conditions, the real estate industry, and the commercial real estate markets in which we operate (including supply and demand changes), particularly in Atlanta, Austin, Phoenix, Tampa, Charlotte, Dallas, and Nashville, including the impact of high unemployment, volatility in the public equity and debt markets, and international economic and other conditions;

•the impact of a public health crisis and the governmental and third-party response to such a crisis, which may affect our key personnel, our tenants, and the costs of operating our assets;

•sociopolitical unrest such as political instability, civil unrest, armed hostilities, or political activism, which may result in a disruption of day-to-day building operations;

•changes to our strategy in regard to our real estate assets may require impairment 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, the failure of a tenant to commence or complete tenant improvements on schedule or to occupy leased space, and the risk of declining leasing rates;

•changes in the needs of our tenants brought about by the desire for co-working arrangements, trends toward utilizing less office space per employee, and the effect of employees working remotely;

•any adverse change in the financial condition of one or more of our tenants;

•volatility in interest rates and insurance rates;

•inflation and continuing increases in the inflation rate;

•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);

•cyber security breaches;

•changes in senior management, changes in the Board of Directors, and the loss of key personnel;

•the potential liability for uninsured losses, condemnation, or environmental issues;

•the potential liability for a failure to meet regulatory requirements;

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•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 or meet regulatory requirements;

•potential changes to state, local, or federal regulations applicable to our business;

•material changes in the rates, 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 ("SEC") 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 the 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.

2

PART I — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	September 30, 2023		December 31, 2022
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $1,258,003 and $1,079,662 in 2023 and 2022, respectively	$	6,730,434	$	6,738,354
Projects under development	126,630		111,400
Land	154,729		158,430
	7,011,793		7,008,184
Cash and cash equivalents	6,926		5,145
Accounts receivable	12,867		8,653
Deferred rents receivable	203,561		184,043
Investment in unconsolidated joint ventures	141,250		112,839
Intangible assets, net	116,092		136,240
Other assets, net	92,820		81,912
Total assets	$	7,585,309	$	7,537,016
Liabilities:
Notes payable	$	2,418,403	$	2,334,606
Accounts payable and accrued expenses	266,632		271,103
Deferred income	174,178		128,636
Intangible liabilities, net	44,295		52,280
Other liabilities	104,495		103,442
Total liabilities	3,008,003		2,890,067
Commitments and contingencies
Equity:
Stockholders' investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 154,335,798 and 154,019,214 issued, and 151,773,774 and 151,457,190 outstanding in 2023 and 2022, respectively	154,336		154,019
Additional paid-in capital	5,637,406		5,630,327
Treasury stock at cost, 2,562,024 shares in 2023 and 2022	(147,157)		(147,157)
Distributions in excess of cumulative net income	(1,095,597)		(1,013,292)
Accumulated other comprehensive income	5,723		1,767
Total stockholders' investment	4,554,711		4,625,664
Nonredeemable noncontrolling interests	22,595		21,285
Total equity	4,577,306		4,646,949
Total liabilities and equity	$	7,585,309	$	7,537,016
See accompanying notes.

3

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenues:
Rental property revenues	$	198,429	$	193,455	$	602,459	$	559,856
Fee income	318		1,677		1,044		5,370
Other	101		38		2,393		2,522
	198,848		195,170		605,896		567,748
Expenses:
Rental property operating expenses	64,838		66,632		203,150		193,725
Reimbursed expenses	149		418		515		1,455
General and administrative expenses	8,336		6,498		24,795		21,557
Interest expense	27,008		18,380		78,010		50,454
Depreciation and amortization	79,492		79,116		235,531		219,721
Other	623		231		1,484		877
	180,446		171,275		543,485		487,789
Income from unconsolidated joint ventures	582		634		2,008		7,038
Gain on sales of investments in unconsolidated joint ventures	—		56,260		—		56,260
Gain (loss) on investment property transactions	507		(20)		505		(61)
Loss on extinguishment of debt	—		—		—		(100)
Net income	19,491		80,769		64,924		143,096
Net income attributable to noncontrolling interests	(130)		(130)		(746)		(421)
Net income available to common stockholders	$	19,361	$	80,639	$	64,178	$	142,675
Net income per common share — basic and diluted	$	0.13	$	0.53	$	0.42	$	0.95
Weighted average shares — basic	151,774		151,435		151,692		149,670
Weighted average shares — diluted	152,048		151,695		152,018		149,946
See accompanying notes.

4

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited; in thousands)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Comprehensive Income:
Net income available to common stockholders	$	19,361	$	80,639	$	64,178	$	142,675
Other comprehensive income (loss):
Unrealized gain (loss) on cash flow hedges	1,503		(715)		6,397		(715)
Amortization of cash flow hedges	(1,345)		63		(2,441)		63
Total other comprehensive income (loss)	158		(652)		3,956		(652)
Total comprehensive income	$	19,519	$	79,987	$	68,134	$	142,023
See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited; in thousands except per share amounts)

Three Months Ended September 30, 2023
		Common Stock		Additional Paid-In Capital		Treasury Stock		Distributions in Excess of Net Income		Accumulated Other Comprehensive Income		Stockholders' Investment		Nonredeemable Noncontrolling Interests		Total Equity
Balance June 30, 2023		$	154,336	$	5,634,996	$	(147,157)	$	(1,066,369)	$	5,565	$	4,581,371	$	22,927	$	4,604,298
Net income		—		—		—		19,361		—		19,361		130		19,491
Other comprehensive income		—		—		—		—		158		158		—		158
Amortization of stock-based compensation, net of forfeitures		—		2,410		—		—		—		2,410		—		2,410
Contributions from noncontrolling interests		—		—		—		—		—		—		56		56
Distributions to noncontrolling interests		—		—		—		—		—		—		(518)		(518)
Common dividends ($0.32 per share)		—		—		—		(48,589)		—		(48,589)		—		(48,589)
Balance September 30, 2023		$	154,336	$	5,637,406	$	(147,157)	$	(1,095,597)	$	5,723	$	4,554,711	$	22,595	$	4,577,306
Three Months Ended September 30, 2022
		Common Stock		Additional Paid-In Capital		Treasury Stock		Distributions in Excess of Net Income		Accumulated Other Comprehensive Loss		Stockholders’ Investment		Nonredeemable Noncontrolling Interests		Total Equity
Balance June 30, 2022		$	154,025	$	5,627,133	$	(148,473)	$	(1,020,590)	$	—	$	4,612,095	$	20,600	$	4,632,695
Net income		—		—		—		80,639		—		80,639		130		80,769
Other comprehensive loss		—		—		—		—		(652)		(652)		—		(652)
Common stock issued under the ATM, net of issuance costs		—		13		—		—		—		13		—		13
Amortization of stock-based compensation, net of forfeitures		(6)		1,805		—		4		—		1,803		—		1,803
Contributions from noncontrolling interests		—		—		—		—		—		—		(356)		(356)
Distributions to noncontrolling interests		—		—		—		—		—		—		(15)		(15)
Common dividends ($0.32 per share)		—		—		—		(48,541)		—		(48,541)		—		(48,541)
Balance September 30, 2022	Balance	$	154,019	$	5,628,951	$	(148,473)	$	(988,488)	$	(652)	$	4,645,357	$	20,359	$	4,665,716

See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited; in thousands except per share amounts)

Nine Months Ended September 30, 2023
	Common Stock		Additional Paid-In Capital		Treasury Stock		Distributions in Excess of Net Income		Accumulated Other Comprehensive Income		Stockholders’ Investment		Nonredeemable Noncontrolling Interests		Total Equity
Balance December 31, 2022	$	154,019	$	5,630,327	$	(147,157)	$	(1,013,292)	$	1,767	$	4,625,664	$	21,285	$	4,646,949
Net income	—		—		—		64,178		—		64,178		746		64,924
Other comprehensive income	—		—		—		—		3,956		3,956		—		3,956
Common stock issued pursuant to stock-based compensation, net of tax withholding	320		(827)		—		—		—		(507)		—		(507)
Amortization of stock options, restricted stock, and restricted stock units, net of forfeitures	(3)		7,906		—		—		—		7,903		—		7,903
Contributions from noncontrolling interests	—		—		—		—		—		—		1,440		1,440
Distributions to noncontrolling interests	—		—		—		—		—		—		(876)		(876)
Common dividends ($0.96 per share)	—		—		—		(146,483)		—		(146,483)		—		(146,483)
Balance September 30, 2023	$	154,336	$	5,637,406	$	(147,157)	$	(1,095,597)	$	5,723	$	4,554,711	$	22,595	$	4,577,306
Nine Months Ended September 30, 2022
	Common Stock		Additional Paid-In Capital		Treasury Stock		Distributions in Excess of Net Income		Accumulated Other Comprehensive Loss		Stockholders’ Investment		Nonredeemable Noncontrolling Interests		Total Equity
Balance December 31, 2021	$	151,273	$	5,549,308	$	(148,473)	$	(985,338)	$	—	$	4,566,770	$	33,630	$	4,600,400
Net income	—		—		—		142,675		—		142,675		421		143,096
Other comprehensive loss	—		—		—		—		(652)		(652)		—		(652)
Common stock issued under the ATM, net of issuance costs	2,632		100,488		—		—		—		103,120		—		103,120
Common stock issued pursuant to stock-based compensation, net of tax withholding	120		490		—		—		—		610		—		610
Amortization of stock-based compensation, net of forfeitures	(6)		6,303		—		8		—		6,305		—		6,305
Acquisition of partners' noncontrolling interest	—		(27,638)		—		—		—		(27,638)		(15,749)		(43,387)
Contributions from noncontrolling interests	—		—		—		—		—		—		2,164		2,164
Distributions to noncontrolling interests	—		—		—		—		—		—		(107)		(107)
Common dividends ($0.96 per share)	—		—		—		(145,833)		—		(145,833)		—		(145,833)
Balance September 30, 2022	$	154,019	$	5,628,951	$	(148,473)	$	(988,488)	$	(652)	$	4,645,357	$	20,359	$	4,665,716
See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited; in thousands)

	Nine Months Ended September 30,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	64,924	$	143,096
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of investment in unconsolidated joint ventures	—		(56,260)
Loss (gain) on investment property transactions	(505)		61
Depreciation and amortization	235,531		219,721
Amortization of deferred financing costs and premium on notes payable	3,102		(317)
Equity-classified stock-based compensation expense, net of forfeitures	9,209		7,526
Effect of non-cash adjustments to rental revenues	(36,679)		(29,524)
Income from unconsolidated joint ventures	(2,008)		(7,038)
Operating distributions from unconsolidated joint ventures	2,869		4,584
Loss on extinguishment of debt	—		100
Changes in other operating assets and liabilities:
Change in receivables and other assets, net	(6,979)		487
Change in operating liabilities, net	8,054		(10,088)
Net cash provided by operating activities	277,518		272,348
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investment property sales, net	3,917		—
Proceeds from sale of interest in unconsolidated joint ventures, net	—		38,831
Property acquisition, development, and tenant asset expenditures	(198,254)		(262,822)
Return of capital distributions from unconsolidated joint ventures	10,924		10,752
Contributions to unconsolidated joint ventures	(28,681)		(35,193)
Net cash used in investing activities	(212,094)		(248,432)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility	291,300		340,000
Repayment of credit facility	(203,400)		(267,300)
Repayment of mortgages	(6,178)		(12,719)
Common stock issued under the ATM	—		103,120
Payment of deferred financing costs	(71)		(5,299)
Purchase of partners' interest in consolidated joint venture	—		(43,387)
Common dividends paid	(145,858)		(143,818)
Contributions from noncontrolling interests	1,440		2,164
Distributions to noncontrolling interests	(876)		(107)
Net cash used in financing activities	(63,643)		(27,346)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	1,781		(3,430)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	5,145		10,168
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$	6,926	$	6,738

See accompanying notes.

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023

(Unaudited)

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business: Cousins Properties Incorporated (“Cousins”), a Georgia corporation, is a fully integrated, self-administered, and self-managed real estate investment trust (“REIT”). Cousins conducts substantially all of its business through Cousins Properties LP ("CPLP"). Cousins owns in excess of 99% of CPLP and consolidates CPLP. CPLP wholly owns Cousins TRS Services LLC ("CTRS"), a taxable entity which owns and manages its own real estate portfolio and performs certain real estate-related services for other parties.

Cousins, CPLP, CTRS, and their subsidiaries (collectively, the “Company”) develop, acquire, lease, manage, and own primarily Class A office properties and opportunistic mixed-use developments in the Sun Belt markets of the United States with a focus on Atlanta, Austin, Phoenix, Tampa, Charlotte, Dallas, and Nashville. Cousins has elected to be taxed as a REIT and intends to, among other things, distribute at least 100% of its net taxable income to stockholders, thereby eliminating any liability for federal income taxes under current law. Therefore, the results included herein do not include a federal income tax provision for Cousins. As of September 30, 2023, the Company's operating portfolio of real estate assets consisted of interests in 18.8 million square feet of office space and 310,000 square feet of multi-family space.

Basis of Presentation: The condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for the fair presentation of the Company's financial position as of September 30, 2023 and December 31, 2022, and the results of operations for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The accounting policies employed are substantially the same as those shown in note 2 of the notes to consolidated financial statements included therein.

The Company evaluates all partnerships, joint ventures, and other arrangements with variable interests to determine if the entity or arrangement qualifies as a variable interest entity ("VIE"), as defined in the Financial Accounting Standard Board's ("FASB") Accounting Standards Codification ("ASC"). If the entity or arrangement qualifies as a VIE and the Company is determined to be the primary beneficiary, the Company is required to consolidate the assets, liabilities, and results of operations of the VIE. The Company had no investments or interests in any VIEs as of September 30, 2023 or December 31, 2022.

2. REAL ESTATE

In September 2023, the Company sold a 10.4 acre land parcel in Atlanta for a gross sales price of $4.25 million and recorded a gain of $507,000.

Impairment

The Company tests buildings held for investment, by disposal groups, for impairment whenever changes in circumstances indicate a disposal group’s carrying value may not be recoverable. The test is conducted using undiscounted cash flows for the shorter of the building’s estimated hold period or its remaining useful life. When testing for recoverability of value of buildings held for investment, projected cash flows are used over its expected hold period. If the expected hold period includes some likelihood of shorter-term hold period from a potential sale, the probability of a sale is layered into the analysis. If any building's held-for-investment analysis were to fail the impairment test, its book value would be written down to its then current estimated fair value, before any selling expense, and that building would continue to depreciate over its remaining useful life. None of the Company’s held-for-investment buildings were impaired during any periods presented in the accompanying statement of operations while under the held-for-investment classification.

The Company also reviews held-for-sale buildings, if any, for impairments. In order to be considered a real estate asset held-for-sale, the Company must, among other things, have the authority to commit to a plan to sell the asset in its current condition, have commenced the plan to sell the asset, and have determined that it is probable that the asset will sell within one year. If book value is in excess of estimated fair value less estimated selling costs, we impair those assets to fair value less estimated selling costs. There were

9

no held-for-sale buildings as of September 30, 2023 or December 31, 2022 or during any periods presented in the accompanying statements of operations.

The Company also reviews land and projects under development for impairment whenever changes in circumstances indicate the assets' carrying value may not be recoverable. None of the Company's investments in land or projects under development were impaired as of September 30, 2023 or December 31, 2022 or during any periods presented in the accompanying statement of operations.

The Company may record impairment charges in future periods if the economy and the office industry weakens, the operating results of individual buildings are materially different from our forecasts, or we shorten our contemplated hold period for any operating buildings.

3. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The following information summarizes financial data and principal activities of the Company's unconsolidated joint ventures. The information included in the following table entitled summary of financial position is as of September 30, 2023 and December 31, 2022 ($ in thousands).

SUMMARY OF FINANCIAL POSITION
	Total Assets				Total Debt				Total Equity (Deficit)				Company's Investment
	2023		2022		2023		2022		2023		2022		2023			2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	80,362	$	81,136	$	—	$	—	$	79,203	$	80,509	$	14,526		$	14,856
Crawford Long - CPI, LLC (1)	22,435		22,857		82,296		62,856		(62,593)		(39,691)		(30,686)		(2)	(19,173)		(2)
Under Development:
Neuhoff Holdings LLC (3)	455,070		321,338		200,640		115,940		225,130		177,734		122,391			93,647
Land:
715 Ponce Holdings LLC	8,610		8,333		—		—		8,477		8,332		4,333			4,261
Sold and Other:
HICO Victory Center LP	—		158		—		—		—		5,818		—			75
	$	566,477	$	433,822	$	282,936	$	178,796	$	250,217	$	232,702	$	110,564		$	93,666

(1) In May 2023, Crawford Long - CPI, LLC refinanced the mortgage loan for the Medical Offices at Emory Hospital property. This $83.0 million interest-only mortgage loan has a fixed interest rate of 4.80% and matures in June 2032.

(2) Negative investment basis included in deferred income on the consolidated balance sheets.

(3) Neuhoff Holdings LLC has a construction loan with a borrowing capacity up to $312.7 million that matures in September 2025. The interest rate applicable to the construction loan is based on the Secured Overnight Financing Rate ("SOFR") plus 3.45% with a minimum rate of 3.60%.

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The information included in the summary of operations table is for the nine months ended September 30, 2023 and 2022 ($ in thousands).

SUMMARY OF OPERATIONS
	Total Revenues				Net Income (Loss)				Company's Income from Investment
	2023		2022		2023		2022		2023		2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	8,337	$	8,005	$	2,698	$	2,335	$	537	$	454
Crawford Long - CPI, LLC	9,754		9,811		2,911		3,419		1,352		1,603
Under Development:
Neuhoff Holdings LLC	105		107		59		79		30		39
Land:
715 Ponce Holdings LLC	210		220		145		156		72		78
Sold and Other:
Carolina Square Holdings LP	—		12,140		48		600		24		215
HICO Victory Center LP	—		6,873		(14)		6,871		(7)		4,546
Other	—		28		—		(12)		—		103
	$	18,406	$	37,184	$	5,847	$	13,448	$	2,008	$	7,038

In May 2023, Crawford Long refinanced the mortgage loan for the Medical Offices at Emory Hospital property. Proceeds from the refinancing were used to repay in full its $62.4 million mortgage loan that was set to mature in June 2023. The new $83.0 million mortgage loan has a fixed interest rate of 4.80% and matures in June 2032.

In September 2022, the Company sold its 50% joint venture interest in Carolina Square Holdings LP ("Carolina Square"), which owned a mixed-used property in Chapel Hill, to its partner for a gross sales price of $105.0 million. The Company recognized a gain of $56.3 million on the sale of its interest in Carolina Square.

In June 2022, HICO Victory Center LP sold a 3.0 acre land parcel, in Uptown Dallas, held in an unconsolidated joint venture for a gross price of $23.1 million. The Company's share of the gain from the transaction was $4.5 million and is included in income from unconsolidated joint ventures on the statements of operations.

4. INTANGIBLE ASSETS AND LIABILITIES

At September 30, 2023 and December 31, 2022, intangible assets included the following ($ in thousands):

	2023		2022
In-place leases, net of accumulated amortization of $132,411 and $131,021 in 2023 and 2022, respectively	$	84,762	$	102,080
Below-market ground leases, net of accumulated amortization of $2,160 and $1,860 in 2023 and 2022, respectively	17,092		17,393
Above-market leases, net of accumulated amortization of $24,273 and $25,085 in 2023 and 2022, respectively	12,564		15,093
Goodwill	1,674		1,674
	$	116,092	$	136,240

At September 30, 2023 and December 31, 2022, intangible liabilities were the following ($ in thousands):

	2023		2022
Below-market leases, net of accumulated amortization of $49,540 and $48,994 in 2023 and 2022, respectively	$	44,295	$	52,280

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The amortization of the above asset and liabilities are recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rental property revenues, net (Below-market and Above-market leases)	$	1,371	$	1,538	$	5,455	$	4,979
Expenses:
Depreciation and amortization (In-place leases)	4,849		7,274		17,319		21,664
Rental property operating and other expenses (Below-market ground leases)	100		100		300		310

Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows ($ in thousands):

	In-Place  Leases		Below-Market Ground Leases		Above-Market Leases		Below-Market Leases
2023 (three months)	$	4,531	$	100	$	646	$	(2,104)
2024	17,069		400		2,425		(8,234)
2025	14,782		400		2,119		(7,728)
2026	12,382		400		1,726		(6,509)
2027	9,799		400		1,317		(4,973)
Thereafter	26,199		15,392		4,331		(14,747)
	$	84,762	$	17,092	$	12,564	$	(44,295)

5. OTHER ASSETS

Other assets on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Predevelopment costs	$	55,562	$	50,009
Prepaid expenses and other assets	13,961		6,438
Furniture, fixtures and equipment and other deferred costs, net of accumulated depreciation of $18,994 and $18,860 in 2023 and 2022, respectively	10,586		11,824
Lease inducements, net of accumulated amortization of $5,740 and $5,129 in 2023 and 2022, respectively	8,117		8,091
Credit Facility deferred financing costs, net of accumulated amortization of $1,809 and $135 in 2023 and 2022, respectively	4,594		5,550
	$	92,820	$	81,912

Predevelopment costs represent amounts that are capitalized related to predevelopment projects that the Company determined are probable of future development.

Lease inducements are incentives paid to tenants in conjunction with leasing space, such as moving costs, sublease arrangements of prior space, and other costs. These amounts are amortized into rental revenues over the individual underlying lease terms.

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6. NOTES PAYABLE

The following table summarizes the terms of notes payable outstanding at September 30, 2023 and December 31, 2022 ($ in thousands):

Description	Interest Rate (1)	Maturity (2)	2023		2022
Unsecured Notes:
Credit Facility	6.31%	April 2027	$	144,500	$	56,600
Term Loan	(3)	March 2025	400,000		400,000
Term Loan	5.38%	August 2024	350,000		350,000
Senior Note	3.95%	July 2029	275,000		275,000
Senior Note	3.91%	July 2025	250,000		250,000
Senior Note	3.86%	July 2028	250,000		250,000
Senior Note	3.78%	July 2027	125,000		125,000
Senior Note	4.09%	July 2027	100,000		100,000
			1,894,500		1,806,600
Secured Mortgage Notes:
Terminus (4)	6.34%	January 2031	221,000		221,000
Fifth Third Center	3.37%	October 2026	127,464		130,168
Colorado Tower	3.45%	September 2026	107,543		109,552
Domain 10	3.75%	November 2024	73,056		74,521
			529,063		535,241
			$	2,423,563	$	2,341,841
Unamortized loan costs			(5,160)		(7,235)
Total Notes Payable			$	2,418,403	$	2,334,606

(1) Interest rate as of September 30, 2023.

(2) Weighted average maturity of notes payable outstanding at September 30, 2023 was 3.3 years.

(3) In April 2023, the Company entered into a floating-to-fixed interest rate swap with respect to $200 million of the $400 million Term Loan. As of September 30, 2023, the fixed interest rate was 5.45%, and the floating interest rate was 6.46%.

(4) Represents $123.0 million and $98.0 million non-cross-collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.

Credit Facility

On May 2, 2022, the Company entered into a Fifth Amended and Restated Credit Agreement (the "Credit Facility") under which the Company may borrow up to $1 billion if certain conditions are satisfied. The Credit Facility contains financial covenants that require, among other things, the maintenance of unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; a secured leverage ratio of no more than 50%; and an overall leverage ratio of no more than 60%.

The interest rate applicable to the Credit Facility varies according to the Company's leverage ratio and may, at the election of the Company, be determined based on either (1) the Daily SOFR or Term SOFR, plus a SOFR adjustment of 0.10% ("Adjusted SOFR") and a spread of between 0.90% and 1.40%, or (2) the greater of (i) Bank of America's prime rate, (ii) the federal funds rate plus 0.50%, (iii) Term SOFR, plus a SOFR adjustment of 0.10%, and 1.00%, or (iv) 1.00%, plus a spread of between 0.00% and 0.40%, based on leverage. In addition to the interest rate, the Credit Facility is also subject to a facility fee of 0.15% to 0.30%, depending on leverage, on the entire $1 billion capacity.

At September 30, 2023, the Credit Facility's interest rate spread over Adjusted SOFR was 0.90%, and the facility fee spread was 0.15%. The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Facility was $855.5 million at September 30, 2023. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default.

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The Credit Facility replaced a $1 billion prior facility that was set to expire in January 2023. The rate paid under the prior facility from January 1, 2022 through May 1, 2022 was LIBOR plus 1.05%.

Term Loans

On October 3, 2022, the Company entered into a Delayed Draw Term Loan Agreement (the "2022 Term Loan") and borrowed the full $400 million available under the loan. The loan matures on March 3, 2025 with four consecutive options to extend the maturity date for an additional six months. The interest rate provisions are the same as the 2021 Term Loan, and the covenants are the same as the Credit Facility. On April 19, 2023, the Company entered into a floating-to-fixed rate swap with respect to $200 million of the $400 million 2022 Term Loan through the maturity date of March 3, 2025. This swap fixed the underlying SOFR rate at 4.298% (see note 7).

On June 28, 2021, the Company entered into an Amended and Restated Term Loan Agreement (the "2021 Term Loan") that amended the former term loan agreement. Under the 2021 Term Loan, the Company has borrowed $350 million that matures on August 30, 2024 with four consecutive options to extend the maturity date for an additional 180 days. On September 19, 2022, the Company entered into the First Amendment to the 2021 Term Loan. This amendment aligns covenants and available interest rates, including the addition of SOFR, to that of the Credit Facility. Under the terms of this First Amendment the interest rate applicable to the 2021 Term Loan varies according to the Company's leverage ratio and may, at the election of the Company, be determined based on either (1) the Daily SOFR or Term SOFR, plus a SOFR adjustment of 0.10% ("Adjusted SOFR") and a spread of between 1.05% and 1.65%, or (2) the greater of (i) Bank of America's prime rate, (ii) the federal funds rate plus 0.50%, (iii) Term SOFR, plus a SOFR adjustment of 0.10%, and 1.00%, (iv) or 1.00%, plus a spread of between 0.05% and 0.65%, based on leverage. On September 19, 2022, the Company provided notice of our election of the Daily SOFR Rate Loan provisions. On September 27, 2022, the Company entered into a floating-to-fixed interest rate swap with respect to the $350 million 2021 Term Loan through the maturity date of August 30, 2024. This swap effectively fixed the underlying SOFR rate at 4.234% (see note 7).

At September 30, 2023, the Term Loans' spread over the underlying SOFR rates was 1.05%.

Unsecured Senior Notes

The Company has unsecured senior notes of $1.0 billion that were funded in five tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09%. The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91%. The third tranche of $125 million is due in 2027 and has a fixed annual interest rate of 3.78%. The fourth tranche of $250 million is due in 2028 and has a fixed annual interest rate of 3.86%. The fifth tranche of $275 million is due in 2029 and has a fixed annual interest rate of 3.95%.

The unsecured senior notes contain financial covenants that are consistent with those of our Credit Facility, with the exception of a secured leverage ratio of no more than 40%. The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default.

Secured Mortgage Notes

In December 2022, the Company refinanced mortgages on the Company's two Terminus properties in Atlanta with the existing lender. Under the new mortgages, the maturities were extended from January 2023 to January 2031, the combined principal increased to $221.0 million, up from $178.9 million. The interest rate for each mortgage is 6.34%, up from a combined weighted average interest rate of 4.67%. These mortgages are neither cross-collateralized nor cross-defaulted.

In October 2022, the Company paid off, in full, its Legacy Union One and Promenade Tower mortgages with remaining principal balances of $66.0 million and $86.3 million, respectively. These mortgages had interest rates of 4.24% and 4.27%, respectively.

As of September 30, 2023, the Company had $529.1 million outstanding on five non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $894.3 million are pledged as security on these mortgage notes payable.

Other Debt Information

The Company is in compliance with all of the covenants related to its unsecured and secured debt.

At September 30, 2023 and December 31, 2022, the estimated fair value of the Company’s notes payable was $2.2 billion, calculated by discounting the debt's remaining contractual cash flows at estimated current market rates at which similar loans could have been obtained at September 30, 2023 and December 31, 2022. The estimate of the current market rates, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value

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relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820, as the Company utilizes market rates for similar type loans from third party brokers.

For the three and nine months ended September 30, 2023 and 2022, interest expense was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total interest incurred	$	31,180	$	22,406	$	92,278	$	61,522
Interest capitalized	(4,172)		(4,026)		(14,268)		(11,068)
Total interest expense	$	27,008	$	18,380	$	78,010	$	50,454

7. DERIVATIVE FINANCIAL INSTRUMENTS

On April 19, 2023, the Company entered into a floating-to-fixed interest rate swap with respect to $200 million of the $400 million 2022 Term Loan through the maturity date of March 3, 2025. This swap effectively fixed the underlying SOFR rate at 4.298%.

On September 27, 2022, the Company entered into a floating-to-fixed interest rate swap with respect to the $350 million 2021 Term Loan through the maturity date of August 30, 2024. This swap effectively fixed the underlying SOFR rate at 4.234%.

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022 and 2023, such derivatives were used to hedge the variable cash flows associated with the 2021 and 2022 Term Loans (referred to as "cash flow hedges").

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings.

The counterparties under these swaps are major financial institutions, and the swaps contain provisions whereby if the Company defaults on certain of its indebtedness, and such default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then the Company could also be declared in default under the swaps. There are no collateral requirements related to these swaps.

As of September 30, 2023, the fair value of the swap with respect to the 2022 Term Loan was $2.3 million and is included in other assets on the Company's consolidated balance sheets.

As of September 30, 2023 and December 31, 2022, the fair values of the swap with respect to the 2021 Term Loan were $3.5 million and $1.8 million, respectively, and are included in other assets on the Company's consolidated balance sheets.

The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Cash Flow Hedges:	2023		2022		2023		2022
Amount of income (loss) recognized in accumulated other comprehensive income on interest rate derivatives	$	1,503	$	(715)	$	6,397	$	(715)
Amount of loss (income) reclassified from accumulated other comprehensive income into income as a reduction of interest expense	$	(1,345)	$	63	$	(2,441)	$	63
Total amount of interest expense presented in the consolidated statements of operations	$	27,008	$	18,380	$	78,010	$	50,454

The fair value of these hedges is determined using observable inputs other than quoted prices in active markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. These inputs are considered Level 2 inputs in the fair value hierarchy, and the Company engages a third-party expert to determine these inputs. The fair value of the cash flow hedges is determined using the conventional industry methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts made between the Company and its counterparties to the cash flow hedges. These variable cash receipts are based on the expectation of future interest rates which are derived from observed market interest rate curves.

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In addition, any credit valuation adjustments are considered in the fair values to account for potential nonperformance risk to the extent they would be significant inputs to the calculations. For the periods presented, credit valuation adjustments were not considered to be significant inputs.

8. OTHER LIABILITIES

Other liabilities on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Ground lease liability	$	53,416	$	53,129
Prepaid rent	34,684		33,165
Security deposits	14,953		14,635
Restricted stock unit liability	—		1,048
Other liabilities	1,442		1,465
	$	104,495	$	103,442

9. COMMITMENTS AND CONTINGENCIES

Commitments

The Company had outstanding performance bonds totaling $1.3 million at September 30, 2023. As a lessor, the Company had $161.7 million in future obligations under leases to fund tenant improvements and other future construction obligations at September 30, 2023.

Litigation

The Company is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business, or financial condition of the Company.

10.    STOCKHOLDERS' EQUITY

In the third quarter of 2021, the Company entered into an Equity Distribution Agreement ("EDA") with six financial institutions known as an at-the-market stock offering program ("ATM Program"), under which the Company may offer and sell shares of its common stock from time to time in "at-the-market" offerings with an aggregate gross sales price of up to $500 million. In connection with the ATM Program, Cousins may, at its discretion, enter into forward equity sale agreements. The use of a forward equity sale agreement ("Forward Sales") would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed but defer receiving the proceeds from the sale of shares until a later date, allowing the Company to better align such funding with its capital needs. Sales of shares of Cousins' stock through its banking relationships, if any, are made in amounts and at times to be determined by Cousins from time to time, but the Company has no obligation to sell any of the shares in the offering and may suspend sales in connection with the offering at any time. Sales of Cousins' common stock under Forward Sales, if undertaken, meet the derivatives and hedging guidance scope exception as the contracts are related to the Company's own stock. On February 17, 2023, the Company filed a Form S-3 to renew the registration of its authorized shares. In conjunction with that Form S-3 filing, the Company entered into an Amendment to the EDA to allow for the continued issuance of shares under this ATM Program.

On April 21, 2022, the Company purchased its partner's 10% joint venture interest in HICO Avalon, LLC and HICO Avalon II, LLC, which consisted of the 8000 and 10000 Avalon office properties. This transaction did not result in a change in control and the difference between the $43.4 million purchase price of our partner's interest, which included a promote related to increases in fair value in excess of cost, and the $15.7 million book value of the outside partner's non-controlling interest was recorded as additional

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paid-in capital in the equity section of the Company's consolidated balance sheet. The Company's consolidated basis in Avalon's assets and liabilities was unchanged by this transaction.

On June 29, 2022, the Company issued 2.6 million shares of common stock under Forward Sales contracts executed in December 2021 at an average price of $39.92 per share, for gross proceeds of $105.1 million. To date, the Company has issued 2.6 million shares under the ATM Program and has generated cash proceeds of $101.4 million, net of $1.1 million of compensation to be paid with respect to such Forward Sales, $1.7 million of dividends owed during the period the Forward Sales were outstanding, and $900,000 of other transaction related costs. To the extent, prior to settlement, shares sold under Forward Sales were potentially dilutive during the period under the treasury stock method, the impact of such dilution is disclosed in the calculation included in note 13. The Company did not issue any shares under the ATM Program during the nine months ended September 30, 2023 and did not have any outstanding Forward Sales contracts for the sale of its common stock as of September 30, 2023 or December 31, 2022.

11. REVENUE RECOGNITION

The Company categorizes its primary sources of revenue into revenue from contracts with customers and other revenue accounted for as leases under ASC 842 as follows:

•Rental property revenues consist of (1) contractual revenues from leases recognized on a straight-line basis over the term of the respective lease; (2) percentage rents recognized once a specified sales target is achieved; (3) parking revenues; (4) termination fees; and (5) the reimbursement of the tenants' share of real estate taxes, insurance, and other operating expenses. The Company's leases typically include renewal options and are classified and accounted for as operating leases. Rental property revenues are accounted for in accordance with the guidance set forth in ASC 842.

•Fee income consists of development fees, management fees, and leasing fees earned from unconsolidated joint ventures and from third parties. Fee income is accounted for in accordance with the guidance set forth in ASC 606.

For the three and nine months ended September 30, 2023, the Company recognized rental property revenues of $198.4 million and $602.5 million, respectively, of which $52.9 million and $174.3 million, respectively, represented variable rental revenue. For the three and nine months ended September 30, 2022, the Company recognized rental property revenues of $193.5 million and $559.9 million, respectively, of which $54.7 million and $157.7 million, respectively, represented variable rental revenue.

For the three and nine months ended September 30, 2023, the Company recognized fee and other revenue of $419,000 and $3.4 million, respectively. For the three and nine months ended September 30, 2022, the Company recognized fee and other revenue of $1.7 million and $7.9 million, respectively. For the three and nine months ended September 30, 2022, fee and other revenue includes $1.0 million and $3.2 million, respectively, related to the Company's consulting and development contracts with Norfolk Southern Railway Company, as discussed in note 3 of the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. For the three and nine months ended September 30, 2023, none of the fee and other revenue related to Norfolk Southern Railway Company.

The Company had a lease with SVB Financial Group ("SVB Financial") at its Hayden Ferry property in Phoenix, Arizona. SVB Financial’s primary subsidiary, Silicon Valley Bank ("SVB"), was placed in receivership by the Federal Deposit Insurance Corporation ("FDIC") on March 10, 2023; and on March 17, 2023, SVB Financial filed a voluntary petition for a court-supervised reorganization under Chapter 11 of the US Bankruptcy Code. On March 27, 2023, First Citizen's BancShares, Inc. ("FCB") announced it had purchased SVB Financial's subsidiary, SVB, the primary user of the leased space. In June 2023, the Bankruptcy court approved SVB Financial's request for an order rejecting the lease, with an effective date no later than September 30, 2023. In June 2023, the Company recorded a reduction of revenue of $1.6 million related to the write-down of net assets associated with this lease at the time that the collection of rents for the term of the lease no longer remained probable. During the three months ended September 30, 2023, the Company recognized $2.3 million of rental revenue on a cash basis related to base rent lease payments made through September 30, 2023, the effective date of the termination.

On August 8, 2023, WeWork Inc. ("WeWork"), disclosed in its Quarterly Report filed on Form 10-Q for the period ending June 30, 2023 that substantial doubt exists as to its ability to continue as a going concern. The Company, through wholly owned subsidiaries, is the landlord under leases totaling approximately 162,000 square feet with subsidiaries of WeWork at three of the Company's properties, two in the Atlanta market and one in the Charlotte market. These WeWork leases comprised $6.5 million of the Company's annual rental property revenue in the accompanying statements of operations for the nine months ended September 30, 2023. The Company also has a 20% interest in an unconsolidated joint venture that is the landlord under a lease for approximately 33,000 square feet with a subsidiary of WeWork at one property in the Atlanta market. The Company's income from unconsolidated joint ventures related to that lease is not significant. Currently, the Company does not expect any potential bankruptcy filing by WeWork to have a material impact on the Company's 2023 financial results. As of October 26, 2023, the Company has not received the October 2023 rent payments at two of the four properties, one wholly owned and the other unconsolidated, but has letter of credit enhancements that substantially support the Company's current balance sheet exposure and revenue for the remainder of 2023 for those two leases. For the other two properties, both wholly owned, the Company has received the October 2023 rent payments and

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does not expect that these leases will be rejected during any bankruptcy proceedings. If the Company subsequently determines that lease rejection at these two properties is probable, the net balance sheet exposure and related revenue reduction would be $1.2 million (as of the date of this filing, which reflects the October 2023 payments). The timing of recognizing this $1.2 million is subject to when the respective lease rejections become probable as well as the date on which WeWork vacates its leased space at each respective property. The Company's total projected November and December 2023 WeWork revenue at these two properties is $902,000.

12. STOCK-BASED COMPENSATION

The Company currently has several types of employee stock-based compensation — restricted stock, restricted stock units ("RSUs"), and the Employee Stock Purchase Plan ("ESPP"). While the Company's plans also allow for the issuance of stock options, none had been exercised or were outstanding as of or during any of the periods presented. A portion of the Company's independent directors' compensation is also provided in the form of company stock.

The Company's compensation expense for the three and nine months ended September 30, 2023 relates to restricted stock and RSUs awarded in 2023, 2022, 2021, and 2020, and the ESPP. Compensation expense for the three and nine months ended September 30, 2022 relates to restricted stock and RSUs awarded in 2022, 2021, 2020, and 2019, and the ESPP. Restricted stock, the 2023 RSUs, 2022 RSUs, 2021 RSUs, and the 2020 RSUs are equity-classified awards (settled in shares of the Company) for which compensation expense per share is fixed. The 2019 RSUs were liability-classified awards (settled in cash) for which the expense fluctuated from period to period dependent, in part, on the Company's stock price. For the three and nine months ended September 30, 2023 and 2022, stock-based compensation expense, net of forfeitures, was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Equity-classified awards:
Restricted stock	$	930	$	779	$	2,715	$	2,348
Market-based RSUs	1,095		917		3,954		3,065
Performance-based RSUs	350		179		1,133		863
Director grants	408		385		1,193		1,086
Employee Stock Purchase Plan	34		39		104		133
Total equity-classified award expense, net of forfeitures	2,817		2,299		9,099		7,495
Liability-classified awards
Time-vested RSUs	—		(116)		61		(136)
Dividend equivalent units	—		34		—		53
Total liability-classified award expense, net of forfeitures	—		(82)		61		(83)
Total stock-based compensation expense, net of forfeitures	$	2,817	$	2,217	$	9,160	$	7,412

Information on the Company's stock compensation plan, including information on the Company's equity-classified and liability-classified awards is discussed in note 15 of the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

18

13. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 ($ in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Earnings per common share - basic:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to noncontrolling interests in CPLP from continuing operations	(4)		(26)		(11)		(38)
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available to common stockholders	$	19,361	$	80,639	$	64,178	$	142,675
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Net income per common share - basic	$	0.13	$	0.53	$	0.42	$	0.95
Earnings per common share - diluted:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available for common stockholders before allocation of net income attributable to noncontrolling interests in CPLP	$	19,365	$	80,665	$	64,189	$	142,713
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Add:
Potential dilutive common shares - restricted stock units,     less shares assumed purchased at market price	249		235		301		251
Weighted average units of CPLP convertible into     common shares	25		25		25		25
Weighted average common shares - diluted	152,048		151,695		152,018		149,946
Net income per common share - diluted	$	0.13	$	0.53	$	0.42	$	0.95

The treasury stock method resulted in no dilution from shares expected to be issued under the ESPP or forward contracts for the future sales of common stock under the Company's ATM Program during the respective periods presented.

19

14. CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL INFORMATION

Supplemental information related to the cash flows, including significant non-cash activity affecting the consolidated statements of cash flows, for the nine months ended September 30, 2023 and 2022 is as follows ($ in thousands):

	2023		2022
Interest paid, net of amounts capitalized	$	84,205	$	58,865
Income taxes paid	—		—
Non-Cash Activity:
Common stock dividends declared and accrued	49,296		48,459
Accrued capital expenditures included in accounts payable and accrued expenses	81,707		93,528
Tenant improvements funded by tenants	48,120		56,727

15. REPORTABLE SEGMENTS

The Company's segments are based on the method of internal reporting, which classifies operations by property type and geographical region. The segments by property type are Office and Non-Office. The segments by geographical region are Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and other markets. Included in other markets are properties located in Chapel Hill (sold in September 2022), Houston, and Nashville. Included in Non-Office are retail and apartments in Chapel Hill (sold in September 2022) and Atlanta, as well as the College Street Garage in Charlotte. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of property and the geographical location. Each segment includes both consolidated operations and the Company's share of joint venture operations.

Company management evaluates the performance of its reportable segments based in part on net operating income (“NOI”). NOI represents rental property revenues, less termination fees, less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, is not indicative of cash available to fund cash needs, and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of the Company's operating assets. NOI excludes fee income, termination fee income, other income, corporate general and administrative expenses, interest expense, depreciation and amortization, reimbursed expenses, other expenses, impairments, gains/losses on sales of real estate, gains/losses on extinguishment of debt, transaction costs, and other non-operating items.

Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	75,857	$	479	$	76,336
Austin	62,250		—		62,250
Charlotte	14,338		1,711		16,049
Dallas	4,280		—		4,280
Phoenix	16,339		—		16,339
Tampa	18,797		—		18,797
Other markets	6,669		—		6,669
Total segment revenues	198,530		2,190		200,720
Less: Company's share of rental property revenues from unconsolidated joint ventures	(1,812)		(479)		(2,291)
Total rental property revenues	$	196,718	$	1,711	$	198,429

20

Three Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	70,708	$	461	$	71,169
Austin	64,522		—		64,522
Charlotte	14,343		1,316		15,659
Dallas	4,240		—		4,240
Phoenix	15,135		—		15,135
Tampa	18,229		—		18,229
Other markets	7,476		1,419		8,895
Total segment revenues	194,653		3,196		197,849
Less: Company's share of rental property revenues from unconsolidated joint ventures	(2,514)		(1,880)		(4,394)
Total rental property revenues	$	192,139	$	1,316	$	193,455

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	221,149	$	1,405	$	222,554
Austin	198,294		—		198,294
Charlotte	43,831		5,253		49,084
Dallas	12,692		—		12,692
Phoenix	50,142		—		50,142
Tampa	56,286		—		56,286
Other markets	20,027		—		20,027
Total segment revenues	602,421		6,658		609,079
Less: Company's share of rental property revenues from unconsolidated joint ventures	(5,215)		(1,405)		(6,620)
Total rental property revenues	$	597,206	$	5,253	$	602,459

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	207,582	$	1,323	$	208,905
Austin	184,800		—		184,800
Charlotte	41,776		3,604		45,380
Dallas	12,568		—		12,568
Phoenix	42,098		—		42,098
Tampa	52,369		—		52,369
Other markets	22,423		3,957		26,380
Total segment revenues	563,616		8,884		572,500
Less: Company's share of rental property revenues from unconsolidated joint ventures	(7,364)		(5,280)		(12,644)
Total rental property revenues	$	556,252	$	3,604	$	559,856

21

NOI by reportable segment for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	48,806	$	316	$	49,122
Austin	43,376		—		43,376
Charlotte	10,947		1,150		12,097
Dallas	3,235		—		3,235
Phoenix	11,950		—		11,950
Tampa	11,444		—		11,444
Other markets	3,660		—		3,660
Total Net Operating Income	$	133,418	$	1,466	$	134,884

Three Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	46,678	$	280	$	46,958
Austin	39,564		—		39,564
Charlotte	10,587		935		11,522
Dallas	3,197		—		3,197
Phoenix	11,145		—		11,145
Tampa	11,254		—		11,254
Other markets	4,879		881		5,760
Total Net Operating Income	$	127,304	$	2,096	$	129,400

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	144,564	$	870	$	145,434
Austin	126,179		—		126,179
Charlotte	32,473		3,475		35,948
Dallas	9,678		—		9,678
Phoenix	33,973		—		33,973
Tampa	34,816		—		34,816
Other markets	10,836		—		10,836
Total Net Operating Income	$	392,519	$	4,345	$	396,864

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	137,357	$	765	$	138,122
Austin	112,496		—		112,496
Charlotte	30,845		2,549		33,394
Dallas	9,696		—		9,696
Phoenix	29,988		—		29,988
Tampa	32,588		—		32,588
Other markets	13,319		2,455		15,774
Total Net Operating Income	$	366,289	$	5,769	$	372,058

22

The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income	$	19,491	$	80,769	$	64,924	$	143,096
Fee income	(318)		(1,677)		(1,044)		(5,370)
Termination fee income	(271)		(242)		(6,977)		(2,153)
Other income	(101)		(38)		(2,393)		(2,522)
General and administrative expenses	8,336		6,498		24,795		21,557
Interest expense	27,008		18,380		78,010		50,454
Depreciation and amortization	79,492		79,116		235,531		219,721
Reimbursed expenses	149		418		515		1,455
Other expenses	623		231		1,484		877
Income from unconsolidated joint ventures	(582)		(634)		(2,008)		(7,038)
Net operating income from unconsolidated joint ventures	1,564		2,819		4,532		8,080
Gain on sales of investments in unconsolidated joint ventures	—		(56,260)		—		(56,260)
Loss (gain) on investment property transactions	(507)		20		(505)		61
Loss on extinguishment of debt	—		—		—		100
Net Operating Income	$	134,884	$	129,400	$	396,864	$	372,058

23

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

Overview of 2023 Performance and Company and Industry Trends

Cousins Properties Incorporated ("Cousins") (and collectively, with its subsidiaries, the "Company," "we," "our," or "us") is a publicly traded (NYSE: CUZ), self-administered, and self-managed real estate investment trust, or REIT. Cousins conducts substantially all of its business through Cousins Properties LP ("CPLP"). Cousins owns in excess of 99% of CPLP and consolidates CPLP. CPLP owns Cousins TRS Services LLC, a taxable entity that owns and manages its own real estate portfolio and performs certain real estate related services for other parties. Our strategy is to create value for our stockholders through ownership of the premier urban office portfolio in the Sun Belt markets, with a particular focus on Atlanta, Austin, Phoenix, Tampa, Charlotte, Dallas, and Nashville. This strategy is based on a disciplined approach to capital allocation that includes opportunistic acquisitions, selective developments, and timely dispositions of non-core assets with a goal of maintaining a portfolio of newer and more efficient properties with lower capital expenditure requirements. This strategy is also based on a simple, flexible, and low-leveraged balance sheet that allows us to pursue compelling growth opportunities at the most advantageous points in the cycle. To implement this strategy, we leverage our strong local operating platforms within each of our major markets.

During the quarter, we leased or renewed 548,000 square feet of office space. Straight-line basis net rent per square foot increased 28.7% for those office spaces that were under lease within the past year. Same property net operating income (defined below) for consolidated properties and our share of unconsolidated properties increased 4.1% between the three months ended September 30, 2023 and 2022.

For the nine months ended September 30, 2023, we leased or renewed 1.2 million square feet of office space, including 691,000 (56%) of new and expansion leases. Straight-line basis net rent per square foot increased 24.8% for those office spaces that were under lease within the past year. Same property net operating income (defined below) for consolidated properties and our share of unconsolidated properties increased 5.3% between the nine months ended September 30, 2023 and 2022.

As noted above, we continue to execute new, renewal, and expansion leases with net rent increases during this current period of several socio-economic challenges. While policies and practices of employers regarding hybrid work arrangements continue to evolve, we believe our customers will prioritize a culture that fosters collaboration, innovation, and productivity, and that our customers will, accordingly, expect their employees to be present in person on a more consistent basis within our high-quality and well-amenitized properties. We have seen an increase in physical occupancy in 2023, which has driven an increase in parking revenue and certain operating expenses. Although difficult to estimate, we expect this gradual increase will continue. Factors that could cause actual results to differ materially from our current expectations are set forth under "Disclosure Regarding Forward Looking Statements."

Results of Operations For The Three and Nine Months Ended September 30, 2023

General

Net income available to common stockholders for the three and nine months ended September 30, 2023 was $19.4 million and $64.2 million, respectively. For the three and nine months ended September 30, 2022, the net income available to common stockholders was $80.6 million and $142.7 million, respectively. We detail below material changes in the components of net income available to common stockholders for the three and nine months ended September 30, 2023 compared to 2022.

Rental Property Revenue, Rental Property Operating Expenses, and Net Operating Income

The following results include the performance of our Same Property portfolio. Our Same Property portfolio includes office properties that were stabilized and owned by us for the entirety of each comparable reporting period presented. A project is stabilized when it is substantially complete and held for occupancy, which is the earlier of (1) the date on which the project achieves 90% economic occupancy or (2) one year from cessation of major construction activity on the core building development or redevelopment. Same Property amounts for the 2023 versus 2022 comparison are from properties that were stabilized and owned as of January 1, 2022 through September 30, 2023.

We use Net Operating Income ("NOI"), a non-GAAP financial measure, to assess the operating performance of our properties. NOI is also widely used by industry analysts and investors to evaluate performance. NOI, which is rental property revenues (excluding termination fees) 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 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, we use only those income and expense items that are incurred at the property level to evaluate a property's performance. Depreciation, amortization, as well as gains or losses on sales of depreciated investment assets and impairment are also excluded from NOI. Same Property NOI allows analysts, investors, and management to analyze continuing operations and evaluate the growth trend of our portfolio.

24

Consolidated rental property revenues, rental property operating expenses, and NOI changed between the 2023 and 2022 periods as follows ($ in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Rental Property Revenues
Same Property	$	184,478	$	183,551	$	927	0.5	%	$	558,515	$	535,152	$	23,363	4.4	%
Non-Same Property	13,680		9,662		4,018		41.6	%	36,967		22,551		14,416		63.9	%
	198,158		193,213		4,945		2.6	%	595,482		557,703		37,779		6.8	%
Termination Fee Income	271		242		29				6,977		2,153		4,824
Total Rental Property Revenues	$	198,429	$	193,455	$	4,974			$	602,459	$	559,856	$	42,603
Rental Property Operating Expenses
Same Property	$	61,153	$	65,051	$	(3,898)	(6.0)	%	$	193,194	$	188,260	$	4,934	2.6	%
Non-Same Property	3,685		1,581		2,104		133.1	%	9,956		5,465		4,491		82.2	%
Total Rental Property Operating Expenses	$	64,838	$	66,632	$	(1,794)	(2.7)	%	$	203,150	$	193,725	$	9,425	4.9	%
Net Operating Income
Same Property NOI	$	123,325	$	118,500	$	4,825	4.1	%	$	365,321	$	346,892	$	18,429	5.3	%
Non-Same Property NOI	9,995		8,081		1,914		23.7	%	27,011		17,086		9,925		58.1	%
Total NOI	$	133,320	$	126,581	$	6,739	5.3	%	$	392,332	$	363,978	$	28,354	7.8	%

Same Property Rental Property Revenues increased for the nine months ended September 30, 2023 compared to the same period in the prior year primarily due to an increase in economic occupancy at our Domain and Buckhead Plaza office properties and related increases in revenues recognized from tenant funded improvements owned by us. Our tenants are increasingly funding capital improvements at our buildings in excess of their tenant improvement allowances as they look to highly amenitized and creative office spaces to attract employees back into the office.

Same Property Operating Expenses decreased for the three months ended September 30, 2023 compared to the same period in the prior year primarily due to decreases in real estate tax expense. This decrease in real estate tax expense also results in a related decrease in recoveries from tenants included Same Property revenues for the three months ended September 30, 2023.

Non-Same Property Rental Property Revenues, operating expenses, and NOI increased for the three and nine months ended September 30, 2023 compared to the same period in the prior year primarily due to operations at our 100 Mill and Heights Union operating properties as they reached stabilization in 2022 and commencement of operations following a full building redevelopment project at Promenade Central in November 2022. These increases are partially offset by a decrease in revenues related to the write-down of net assets associated with SVB Financial Group's ("SVB Financial") bankruptcy and the impact of the rejection in bankruptcy of SVB Financial's lease at our Hayden Ferry 1 building. For more information related to this write-down, see note 11 of the notes to condensed consolidated financial statements. Hayden Ferry 1 was moved to Non-Same Property during the three months ended June 30, 2023, due to the lack of comparability driven by the financial disruption related to SVB lease rejection and our plans to remove the property from operations in the fourth quarter of 2023 for redevelopment.

Termination Fee income increased for the nine months ended September 30, 2023 compared to the same period in the prior year and is recorded based on the timing of termination notices or negotiated agreements and expected move outs. The increase in termination fee income is driven by an increase in negotiated early terminations that were largely contemporaneous with the timing of leases executed with replacement tenants for the same leased space.

Fee Income

Fee income decreased $1.4 million, or 81.0%, and $4.3 million, or 80.6%, for the three and nine months ended September 30, 2023 compared to the same period in the prior year. The decrease is primarily due to the completion of the Norfolk Southern transactions during the third quarter of 2022. For more information related to the Norfolk Southern transactions, see note 3 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

Interest Expense

Interest expense, net of amounts capitalized, increased $8.6 million, or 46.9%, and $27.6 million, or 54.6%, for the three and nine months ended September 30, 2023, compared to the same period in the prior year. This increase is primarily due to the issuance of the 2022 Term Loan in October of 2022, refinancing of the mortgage loans on our Terminus operating properties in December 2022, increases in the interest rates on other variable rate debt, and an increase in average outstanding balance on our line of credit. These increases were partially offset by the repayment of our mortgage loans at Promenade Tower and Legacy Union One in October 2022.

25

Depreciation and Amortization

Depreciation and amortization changed between the 2023 and 2022 periods as follows ($ in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Depreciation and Amortization
Same Property	$	72,364	$	75,207	$	(2,843)	(3.8)	%	$	214,623	$	210,012	$	4,611	2.2	%
Non-Same Property	7,015		3,771		3,244		86.0	%	20,576		9,258		11,318		122.3	%
Non-Real Estate Assets	113		138		(25)		(18.1)	%	332		451		(119)		(26.4)	%
Total Depreciation and Amortization	$	79,492	$	79,116	$	376	0.5	%	$	235,531	$	219,721	$	15,810	7.2	%

Same Property depreciation and amortization decreased for the three months ended September 30, 2023 and increased for the nine months ended September 30, 2023 compared to the same periods in the prior year due to the timing of accelerated depreciation related to shortening of estimated useful lives of lease related assets, including tenant improvements, resulting from early termination of leases.

Non-Same Property depreciation and amortization increased for the three and nine months ended September 30, 2023 compared to the same period in the prior year. The increase is primarily due to increased depreciation at our 100 Mill and Heights Union operating properties as they reached stabilization in 2022, and at Promenade Central following a full building redevelopment project completed in November 2022.

Income and Net Operating Income from Unconsolidated Joint Ventures

Income from unconsolidated joint ventures consisted of the Company's share of the following ($ in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2023		2022		$ Change		% Change		2023		2022		$ Change		% Change
Income from unconsolidated joint ventures	$	582	$	634	$	(52)	(8.2)	%	$	2,008	$	7,038	$	(5,030)	(71.5)	%
Depreciation and amortization	485		1,189		(704)		(59.2)	%	1,440		3,424		(1,984)		(57.9)	%
Gain on sale of depreciated investment property	—		—		—		—	%	—		(84)		84		(100.0)	%
Loss (gain) on sale of undepreciated property	—		22		(22)		(100.0)	%	—		(4,478)		4,478		(100.0)	%
Interest expense	508		1,010		(502)		(49.7)	%	1,150		2,316		(1,166)		(50.3)	%
Other expense	24		19		5		26.3	%	44		46		(2)		(4.3)	%
Other income	(35)		(55)		20		(36.4)	%	(110)		(182)		72		(39.6)	%
Net operating income from unconsolidated joint ventures	$	1,564	$	2,819	$	(1,255)	(44.5)	%	$	4,532	$	8,080	$	(3,548)	(43.9)	%
Net operating income:
Same Property	1,235		1,197		38		3.2	%	3,601		3,588		13		0.4	%
Non-Same Property	329		1,622		(1,293)		(79.7)	%	931		4,492		(3,561)		(79.3)	%
Net operating income from unconsolidated joint ventures	$	1,564	$	2,819	$	(1,255)	(44.5)	%	$	4,532	$	8,080	$	(3,548)	(43.9)	%

Income from unconsolidated joint ventures decreased for the three and nine months ended September 30, 2023 primarily due to the gain on sale of land parcel by a joint venture in 2022 and due to a decrease in income and decrease in depreciation and amortization as a result of the sale of our interest in the Carolina Square joint venture in September 2022.

Non-Same Property NOI from unconsolidated joint ventures decreased for the three and nine months ended September 30, 2023 primarily due to the sale of our interest in the Carolina Square joint venture in September 2022.

Gain on Sales of Investments in Unconsolidated Joint Ventures and Investment Properties

In September 2022, we sold our 50% joint venture interest in Carolina Square Holdings LP ("Carolina Square") for a gross sales price of $105.0 million and recognized a gain of $56.3 million on the sale.

26

Funds From Operations

The table below shows Funds from Operations (“FFO”) and the related reconciliation from net income available to common stockholders. We calculate FFO in accordance with the Nareit definition, which is net income available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle, and gains on sale or impairment losses on depreciable property, plus depreciation and amortization of real estate assets, 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 a 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. 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, we use FFO, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to our officers and other key employees.

The reconciliation of net income to FFO is as follows for the three and nine months ended September 30, 2023 and 2022 ($ in thousands, except per share information):

	Three Months Ended September 30,
	2023					2022
	Dollars		Weighted Average Common Shares	Per Share Amount		Dollars		Weighted Average Common Shares	Per Share Amount
Net Income Available to Common Stockholders	$	19,361	151,774	$	0.13	$	80,639	151,435	$	0.53
Noncontrolling interest related to unitholders	4		25	—		26		25	—
Conversion of unvested restricted stock units	—		249	—		—		235	—
Net Income — Diluted	19,365		152,048	0.13		80,665		151,695	0.53
Depreciation and amortization of real estate assets:
Consolidated properties	79,379		—	0.52		78,978		—	0.52
Share of unconsolidated joint ventures	485		—	—		1,189		—	0.01
Partners' share of real estate depreciation	(257)		—	—		(182)		—	—
Loss (gain) on sale of depreciated properties:
Consolidated properties	—		—	—		20		—	—
Investments in unconsolidated joint ventures	—		—	—		(56,260)		—	(0.37)
Funds From Operations	$	98,972	152,048	$	0.65	$	104,410	151,695	$	0.69

27

	Nine Months Ended September 30,
	2023					2022
	Dollars		Weighted Average Common Shares	Per Share Amount		Dollars		Weighted Average Common Shares	Per Share Amount
Net Income Available to Common Stockholders	$	64,178	151,692	$	0.42	$	142,675	149,670	$	0.95
Noncontrolling interest related to unitholders	11		25	—		38		25	—
Conversion of unvested restricted stock units	—		301	—		—		251	—
Net Income — Diluted	64,189		152,018	0.42		142,713		149,946	0.95
Depreciation and amortization of real estate assets:
Consolidated properties	235,199		—	1.55		219,270		—	1.46
Share of unconsolidated joint ventures	1,440		—	—		3,424		—	0.02
Partners' share of real estate depreciation	(813)		—	—		(558)		—	—
Loss (gain) on sale of depreciated properties:
Consolidated properties	2		—	—		61		—	—
Share of unconsolidated joint ventures	—		—	—		(84)		—	—
Investments in unconsolidated joint ventures	—		—	—		(56,260)		—	(0.37)
Funds From Operations	$	300,017	152,018	$	1.97	$	308,566	149,946	$	2.06

Net Operating Income

Company management evaluates the performance of its property portfolio, in part, based on NOI. NOI represents rental property revenues, less termination fees, less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, is not indicative of cash available to fund cash needs, and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. We consider NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of our operating assets. NOI excludes corporate general and administrative expenses, interest expense, depreciation and amortization, impairments, gains/losses on sales of real estate, and other non-operating items.

The following table reconciles NOI for consolidated properties from net income for each of the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income	$	19,491	$	80,769	$	64,924	$	143,096
Fee income	(318)		(1,677)		(1,044)		(5,370)
Termination fee income	(271)		(242)		(6,977)		(2,153)
Other income	(101)		(38)		(2,393)		(2,522)
General and administrative expenses	8,336		6,498		24,795		21,557
Interest expense	27,008		18,380		78,010		50,454
Depreciation and amortization	79,492		79,116		235,531		219,721
Reimbursed expenses	149		418		515		1,455
Other expenses	623		231		1,484		877
Income from unconsolidated joint ventures	(582)		(634)		(2,008)		(7,038)
Gain on sale of investment in unconsolidated joint ventures	—		(56,260)		—		(56,260)
Loss (gain) on investment property transactions	(507)		20		(505)		61
Loss on extinguishment of debt	—		—		—		100
Net Operating Income	$	133,320	$	126,581	$	392,332	$	363,978

28

Liquidity and Capital Resources

Our primary short-term and long-term liquidity needs include the following:

•property operating expenses;

•property and land acquisitions;

•expenditures on development and redevelopment projects;

•building improvements, tenant improvements, and leasing costs;

•principal and interest payments on indebtedness;

•general and administrative costs; and

•common stock dividends and distributions to outside unitholders of CPLP.

We may satisfy these needs with one or more of the following:

•cash and cash equivalents on hand;

•net cash from operations;

•proceeds from the sale of assets;

•borrowings under our credit facility;

•proceeds from mortgage notes payable;

•proceeds from construction loans;

•proceeds from unsecured loans;

•proceeds from offerings of equity securities; and

•joint venture formations.

Our material capital expenditure commitments as of September 30, 2023 include $161.7 million of unfunded tenant improvements and construction costs. As of September 30, 2023, we had $144.5 million drawn under our credit facility with the ability to borrow the remaining $855.5 million, as well as $6.9 million of cash and cash equivalents. We expect to have sufficient liquidity to meet our obligations for the foreseeable future.

Other Debt Information

In addition to our $1 billion unsecured Credit Facility (with $144.5 million outstanding as of September 30, 2023), we also have unsecured debt from two term loans totaling $750 million and five tranches of unsecured senior notes totaling $1 billion. Our existing mortgage debt is comprised of non-recourse, fixed-rate mortgage notes secured by various real estate assets. We expect to either refinance our non-recourse mortgage loans at maturity or repay the mortgage loans with other capital resources, including our credit facility, unsecured debt, non-recourse mortgages, construction loans, the sale of assets, joint venture equity, the issuance of common stock, the issuance of preferred stock, or the issuance of units of CPLP. Many of our non-recourse mortgages contain covenants that, if not satisfied, could result in acceleration of the maturity of the debt. We expect to either refinance the non-recourse mortgages at maturity or repay the mortgages with proceeds from asset sales, debt, or other capital resources. 86% of our consolidated debt bears interest at a fixed rate. The 14% of consolidated debt that bears interest at a floating rate is based on SOFR.

We are in compliance with all covenants of our existing unsecured and secured debt.

Future Capital Requirements

To meet capital requirements for future investment activities over the long-term, we intend to actively manage our portfolio of properties and strategically sell assets to exit our non-core holdings and reposition our portfolio of income-producing assets. We expect to continue to utilize cash retained from operations, as well as third-party sources of capital such as indebtedness, to fund future commitments as well as utilize construction facilities for some development assets, if available and under appropriate terms.

We may also generate capital through the issuance of securities that include common or preferred stock, warrants, debt securities, depository shares, or the issuance of CPLP limited partnership units.

Our business model also includes raising or recycling capital, which can assist in meeting obligations and funding development and acquisition activity. If one or more sources of capital are not available when required, we may be forced to reduce the number of projects we acquire or develop and/or raise capital on potentially unfavorable terms, or we may be unable to raise capital, which could have an adverse effect on our financial position or results of operations.

29

Cash Flows

We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following table sets forth the changes in cash flows ($ in thousands):

	Nine Months Ended September 30,
	2023		2022		Change
Net cash provided by operating activities	$	277,518	$	272,348	$	5,170
Net cash used in investing activities	(212,094)		(248,432)		36,338
Net cash used in financing activities	(63,643)		(27,346)		(36,297)

The reasons for significant increases and decreases in cash flows between the periods are as follows:

Cash Flows from Operating Activities. Cash flows provided by operating activities increased $5.2 million between the 2023 and 2022 nine month periods primarily due to the following: timing of receipt of prepaid rents from tenants; increase in physical occupancy at our Domain and Buckhead Plaza properties; the stabilization in 2022 of 100 Mill and Heights Union.

Cash Flows from Investing Activities. Cash flows used in investing activities decreased $36.3 million between the 2023 and 2022 nine month periods primarily due to a decrease in capital expenditures related to our 2022 redevelopment activity at two of our operating properties, including a full building redevelopment of Promenade Central, and a decrease in contributions to our Neuhoff Holdings LLC ("Neuhoff") joint venture needed to fund our equity share of the development of the Nashville mixed-used project.

Cash Flows from Financing Activities. Cash flows used in financing activities increased $36.3 million between the 2023 and 2022 nine month periods primarily due to cash provided by the settlement of forward contracts sold under our Equity Distribution Agreement known as at-the-market stock offering program ("ATM Program") in June 2022, partially offset by cash used for the purchase of our partner's 10% interest in a joint venture in April 2022 and an increase in net borrowings on our credit facility.

Capital Expenditures. We incur costs related to our real estate assets that include acquisition of properties, development of new properties, redevelopment of existing or newly purchased properties, leasing costs (including tenant improvements) for new or replacement tenants, and ongoing property repairs and maintenance.

Capital expenditures for assets we develop or acquire and then hold and operate are included in the property acquisition, development, and tenant asset expenditures line item within investing activities on the consolidated statements of cash flows. The change in amounts accrued are removed from the table below to show the components of these costs on a cash basis. Components of costs included in this line item for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

	Nine Months Ended September 30,
	2023		2022
Operating — leasing costs	$	102,768	$	153,321
Operating — building improvements	49,636		68,491
Development	15,825		75,094
Capitalized interest	10,093		8,801
Capitalized personnel costs	5,678		6,136
Change in accrued capital expenditures	14,254		(49,021)
Total property acquisition, development, and tenant asset expenditures	$	198,254	$	262,822

Capital expenditures decreased $64.6 million between the 2023 and 2022 periods primarily due to decreased spending (i) on leasing costs from commissions and tenant improvements, (ii) on building improvements largely related to renovations at 3350 Peachtree, Promenade Central, and Promenade Tower in 2022, and (iii) on developments driven by the approaching completion of development activities at Domain 9 and completion of development activities at our 100 Mill property that stabilized in the fourth quarter of 2022. These decreases were partially offset by a decrease in accrued capital expenditures during the year.

30

The amounts of tenant improvement and leasing costs for our office portfolio on a per square foot basis for the three months ended September 30, 2023 and 2022 were as follows:

	2023	2022
New leases	$12.64	$12.33
Renewal leases	$9.12	$8.74
Expansion leases	$11.07	$12.63

The amounts of tenant improvement and leasing costs on a per square foot basis vary by lease and by market.

Dividends. We paid common dividends of $145.9 million and $143.8 million in the nine months ended September 30, 2023 and 2022, respectively. We expect to fund our future quarterly common dividends with cash provided by operating activities, also using proceeds from investment property sales, distributions from unconsolidated joint ventures, indebtedness, and proceeds from offerings of equity and other securities, if necessary.

On a quarterly basis, we review the amount of the common dividend in light of current and projected future cash flows from the sources noted above and also consider the requirements needed to maintain our REIT status. In addition, we have certain covenants under credit agreements that could limit the amount of common dividends paid. In general, common dividends of any amount can be paid as long as leverage, as defined in our credit agreements, is less than 60% and we are not in default. Certain conditions also apply in which we can still pay common dividends if leverage is above that amount. We routinely monitor the status of our common dividend payments in light of the covenants of our credit agreements.

Off Balance Sheet Arrangements

General. We have a number of off balance sheet joint ventures with varying structures, as described in note 6 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022 and in note 3 of the notes to condensed consolidated financial statements. The joint ventures in which we have an interest are involved in the ownership, acquisition, and/or development of real estate. A venture will fund capital requirements or operational needs with cash from operations or financing proceeds, if possible. If additional capital is deemed necessary, a venture may request a contribution from the partners, and we will evaluate such request.

Debt. At September 30, 2023, our unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of $282.9 million. These loans are generally mortgage or construction loans, which are non-recourse to us. In addition, in certain instances, we provide “non-recourse carve-out guarantees” on these non-recourse loans. Certain of these loans have variable interest rates, which creates exposure to the ventures in the form of market risk from interest rate changes.

Critical Accounting Policies

There have been no material changes in the critical accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in the market risk associated with our notes payable at September 30, 2023 compared to that as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 4.    Controls and Procedures.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applies judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding our control objectives.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer along with the Chief Financial Officer, of the effectiveness, design, and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon the foregoing, the Chief Executive Officer along with the Chief Financial Officer concluded that our disclosure controls and procedures were effective. In addition, based on such evaluation, we have identified no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

31

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings.

Information regarding legal proceedings is described under the subheading "Litigation" in note 9 of the notes to condensed consolidated financial statements.

Item 1A. Risk Factors.

Risk factors that affect our business and financial results are discussed in Part I, "Item 1A. Risk Factors," of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes in our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual Report, which could materially affect our business, financial condition, or future results. The risks described in our Annual Report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem immaterial also may materially adversely affect our business, financial condition, and/or operating results. If any of the risks actually occur, our business, financial condition, and/or results of operations could be negatively affected.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

For information on our equity compensation plans, see note 15 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022, and note 12 of the notes to condensed consolidated financial statements. We did not make any sales of unregistered securities or purchase any common shares during the third quarter of 2023.

32

Item 6. Exhibits.

2.1		Agreement and Plan of Merger, dated March 25, 2019, by and among the Registrant, Murphy Subsidiary Holdings Corporation, and TIER REIT, Inc., filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on March 25, 2019, and incorporated herein by reference.
3.1		Restated and Amended Articles of Incorporation of the Registrant, as amended August 9, 1999, filed as Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2002, and incorporated herein by reference.
3.1.1		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended July 22, 2003, filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on July 23, 2003, and incorporated herein by reference.
3.1.2		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended December 15, 2004, filed as Exhibit 3(a)(i) to the Registrant’s Form 10-K for the year ended December 31, 2004, and incorporated herein by reference.
3.1.3		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended May 4, 2010, filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed May 10, 2010, and incorporated herein by reference.
3.1.4		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended May 9, 2014, filed as Exhibit 3.1.4 to the Registrant's Form 10-Q for the quarter ended June 30, 2014, and incorporated herein by reference.
3.1.5		Articles of Amendment to Restated and Amended Articles of Incorporation of Cousins, as amended October 6, 2016 (incorporated by reference from Exhibit 3.1 and Exhibit 3.1.1 to the Registrant's Current Form 8-K filed on October 7, 2016).
3.1.6		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, filed as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on June 14, 2019, and incorporated herein by reference.
3.1.7		Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, filed as Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on June 14, 2019, and incorporated herein by reference.
3.2		Bylaws of the Registrant, as amended and restated December 4, 2012, filed as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on December 7, 2012, and incorporated herein by reference.
3.2.1		Bylaws of the Registrant, as amended and restated July 26, 2022, filed as Exhibit 3.2.1 to the Registrant's Form 10-Q for the quarter ended June 30, 2022, and incorporated herein by reference.
3.2.2		Bylaws of the Registrant, as amended and restated July 25, 2023, filed as Exhibit 3.2.2 to the Registrant's Form 10-Q for the quarter ended June 30, 2023, and incorporated herein by reference.
31.1	†	Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	†	Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	†	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	†	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	†	The following financial information for the Registrant, formatted in inline XBRL (Extensible Business Reporting Language): (i) the consolidated balance sheets, (ii) the consolidated statements of operations, (iii) the consolidated statements of equity, (iv) the consolidated statements of cash flows, and (v) the notes to condensed consolidated financial statements.
104	†	Cover page interactive data file (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibit 101).

 † Filed herewith.

33

SIGNATURES

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

COUSINS PROPERTIES INCORPORATED
 

/s/ Gregg D. Adzema

Gregg D. Adzema 

Executive Vice President and Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer) 

Date: October 26, 2023

34

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, M. Colin Connolly, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ M. Colin Connolly

M. Colin Connolly

Chief Executive Officer, President, and Director

Date: October 26, 2023

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Gregg D. Adzema, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Gregg D. Adzema

Gregg D. Adzema

Executive Vice President and Chief Financial Officer

Date: October 26, 2023

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”) for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the President and Chief Executive Officer of the Registrant, certifies that to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ M. Colin Connolly

M. Colin Connolly

Chief Executive Officer, President, and Director

Date: October 26, 2023

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Cousins Properties Incorporated (the “Registrant”) for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, the Executive Vice President and Chief Financial Officer of the Registrant, certifies that to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Gregg D. Adzema

Gregg D. Adzema

Executive Vice President and Chief Financial Officer

Date: October 26, 2023

XML

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 20, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-11312
Entity Registrant Name	COUSINS PROPERTIES INC
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	58-0869052
Entity Address, Address Line One	3344 Peachtree Road NE
Entity Address, Address Line Two	Suite 1800
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30326-4802
City Area Code	404
Local Phone Number	407-1000
Title of 12(b) Security	Common Stock, $1 par value per share
Trading Symbol	CUZ
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		151,773,774
Entity Central Index Key	0000025232
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Real estate assets:
Operating properties, net of accumulated depreciation of $1,258,003 and $1,079,662 in 2023 and 2022, respectively	$ 6,730,434	$ 6,738,354
Projects under development	126,630	111,400
Land	154,729	158,430
Total properties	7,011,793	7,008,184
Cash and cash equivalents	6,926	5,145
Accounts receivable	12,867	8,653
Deferred rents receivable	203,561	184,043
Investment in unconsolidated joint ventures	141,250	112,839
Intangible assets, net	116,092	136,240
Other assets, net	92,820	81,912
Total assets	7,585,309	7,537,016
Liabilities:
Notes payable	2,418,403	2,334,606
Accounts payable and accrued expenses	266,632	271,103
Deferred income	174,178	128,636
Intangible liabilities, net	44,295	52,280
Other liabilities	104,495	103,442
Total liabilities	3,008,003	2,890,067
Commitments and contingencies
Stockholders' investment:
Common stock, $1 par value per share, 300,000,000 shares authorized, 154,335,798 and 154,019,214 issued, and 151,773,774 and 151,457,190 outstanding in 2023 and 2022, respectively	154,336	154,019
Additional paid-in capital	5,637,406	5,630,327
Treasury stock at cost, 2,562,024 shares in 2023 and 2022	(147,157)	(147,157)
Distributions in excess of cumulative net income	(1,095,597)	(1,013,292)
Accumulated other comprehensive income	5,723	1,767
Total stockholders' investment	4,554,711	4,625,664
Nonredeemable noncontrolling interests	22,595	21,285
Total equity	4,577,306	4,646,949
Total liabilities and equity	$ 7,585,309	$ 7,537,016

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accumulated depreciation on operating properties	$ 1,258,003	$ 1,079,662
Common stock, par value (in usd per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	154,335,798	154,019,214
Common stock, shares outstanding (in shares)	151,773,774	151,457,190
Treasury stock, shares (in shares)	2,562,024	2,562,024

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total Revenues	$ 198,848	$ 195,170	$ 605,896	$ 567,748
Expenses:
Rental property operating expenses	64,838	66,632	203,150	193,725
Reimbursed expenses	149	418	515	1,455
General and administrative expenses	8,336	6,498	24,795	21,557
Interest expense	27,008	18,380	78,010	50,454
Depreciation and amortization	79,492	79,116	235,531	219,721
Other	623	231	1,484	877
Total costs and expenses	180,446	171,275	543,485	487,789
Income from unconsolidated joint ventures	582	634	2,008	7,038
Gain on sales of investments in unconsolidated joint ventures	0	56,260	0	56,260
Gain (loss) on investment property transactions	507	(20)	505	(61)
Loss on extinguishment of debt	0	0	0	(100)
Net income	19,491	80,769	64,924	143,096
Net income attributable to noncontrolling interests	(130)	(130)	(746)	(421)
Net income available to common stockholders	$ 19,361	$ 80,639	$ 64,178	$ 142,675
Net income per common share — basic (in usd per share)	$ 0.13	$ 0.53	$ 0.42	$ 0.95
Net income per common share — diluted (in usd per share)	$ 0.13	$ 0.53	$ 0.42	$ 0.95
Weighted average shares — basic (in shares)	151,774	151,435	151,692	149,670
Weighted average shares — diluted (in shares)	152,048	151,695	152,018	149,946
Rental property revenues
Revenues:
Total Revenues	$ 198,429	$ 193,455	$ 602,459	$ 559,856
Fee income
Revenues:
Total Revenues	318	1,677	1,044	5,370
Other
Revenues:
Total Revenues	$ 101	$ 38	$ 2,393	$ 2,522

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Comprehensive Income:
Net income available to common stockholders	$ 19,361	$ 80,639	$ 64,178	$ 142,675
Other comprehensive income (loss):
Unrealized gain (loss) on cash flow hedges	1,503	(715)	6,397	(715)
Amortization of cash flow hedges	(1,345)	63	(2,441)	63
Total other comprehensive income (loss)	158	(652)	3,956	(652)
Total comprehensive income	$ 19,519	$ 79,987	$ 68,134	$ 142,023

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Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Stockholders' Investment	Common Stock	Additional Paid-In Capital	Treasury Stock	Distributions in Excess of Net Income	Accumulated Other Comprehensive Income	Nonredeemable Noncontrolling Interests
Beginning balance at Dec. 31, 2021	$ 4,600,400	$ 4,566,770	$ 151,273	$ 5,549,308	$ (148,473)	$ (985,338)	$ 0	$ 33,630
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	143,096	142,675				142,675		421
Other comprehensive income (loss)	(652)	(652)					(652)
Common stock issued pursuant to stock-based compensation, net of tax withholding	610	610	120	490
Common stock issued under the ATM, net of issuance costs	103,120	103,120	2,632	100,488
Amortization of stock-based compensation, net of forfeitures	6,305	6,305	(6)	6,303		8
Acquisition of partners' noncontrolling interest	(43,387)	(27,638)		(27,638)				(15,749)
Contributions from noncontrolling interests	2,164							2,164
Distributions to noncontrolling interests	(107)							(107)
Common dividends	(145,833)	(145,833)				(145,833)
Ending balance at Sep. 30, 2022	4,665,716	4,645,357	154,019	5,628,951	(148,473)	(988,488)	(652)	20,359
Beginning balance at Jun. 30, 2022	4,632,695	4,612,095	154,025	5,627,133	(148,473)	(1,020,590)	0	20,600
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	80,769	80,639				80,639		130
Other comprehensive income (loss)	(652)	(652)					(652)
Common stock issued under the ATM, net of issuance costs	13	13		13
Amortization of stock-based compensation, net of forfeitures	1,803	1,803	(6)	1,805		4
Contributions from noncontrolling interests	(356)							(356)
Distributions to noncontrolling interests	(15)							(15)
Common dividends	(48,541)	(48,541)				(48,541)
Ending balance at Sep. 30, 2022	4,665,716	4,645,357	154,019	5,628,951	(148,473)	(988,488)	(652)	20,359
Beginning balance at Dec. 31, 2022	4,646,949	4,625,664	154,019	5,630,327	(147,157)	(1,013,292)	1,767	21,285
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	64,924	64,178				64,178		746
Other comprehensive income (loss)	3,956	3,956					3,956
Common stock issued pursuant to stock-based compensation, net of tax withholding	(507)	(507)	320	(827)
Amortization of stock options, restricted stock, and restricted stock units, net of forfeitures	7,903	7,903	(3)	7,906
Contributions from noncontrolling interests	1,440							1,440
Distributions to noncontrolling interests	(876)							(876)
Common dividends	(146,483)	(146,483)				(146,483)
Ending balance at Sep. 30, 2023	4,577,306	4,554,711	154,336	5,637,406	(147,157)	(1,095,597)	5,723	22,595
Beginning balance at Jun. 30, 2023	4,604,298	4,581,371	154,336	5,634,996	(147,157)	(1,066,369)	5,565	22,927
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,491	19,361				19,361		130
Other comprehensive income (loss)	158	158					158
Amortization of stock-based compensation, net of forfeitures	2,410	2,410		2,410
Contributions from noncontrolling interests	56							56
Distributions to noncontrolling interests	(518)							(518)
Common dividends	(48,589)	(48,589)				(48,589)
Ending balance at Sep. 30, 2023	$ 4,577,306	$ 4,554,711	$ 154,336	$ 5,637,406	$ (147,157)	$ (1,095,597)	$ 5,723	$ 22,595

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Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Common dividends (in usd per share)	$ 0.32	$ 0.32	$ 0.96	$ 0.96

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 64,924	$ 143,096
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of investment in unconsolidated joint ventures	0	(56,260)
Loss (gain) on investment property transactions	(505)	61
Depreciation and amortization	235,531	219,721
Amortization of deferred financing costs and premium on notes payable	3,102	(317)
Equity-classified stock-based compensation expense, net of forfeitures	9,209	7,526
Effect of non-cash adjustments to rental revenues	(36,679)	(29,524)
Income from unconsolidated joint ventures	(2,008)	(7,038)
Operating distributions from unconsolidated joint ventures	2,869	4,584
Loss on extinguishment of debt	0	100
Changes in other operating assets and liabilities:
Change in receivables and other assets, net	(6,979)	487
Change in operating liabilities, net	8,054	(10,088)
Net cash provided by operating activities	277,518	272,348
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from investment property sales, net	3,917	0
Proceeds from sale of interest in unconsolidated joint ventures, net	0	38,831
Property acquisition, development, and tenant asset expenditures	(198,254)	(262,822)
Return of capital distributions from unconsolidated joint ventures	10,924	10,752
Contributions to unconsolidated joint ventures	(28,681)	(35,193)
Net cash used in investing activities	(212,094)	(248,432)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facility	291,300	340,000
Repayment of credit facility	(203,400)	(267,300)
Repayment of mortgages	(6,178)	(12,719)
Common stock issued under the ATM	0	103,120
Payment of deferred financing costs	(71)	(5,299)
Purchase of partners' interest in consolidated joint venture	0	(43,387)
Common dividends paid	(145,858)	(143,818)
Contributions from noncontrolling interests	1,440	2,164
Distributions to noncontrolling interests	(876)	(107)
Net cash used in financing activities	(63,643)	(27,346)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	1,781	(3,430)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	5,145	10,168
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$ 6,926	$ 6,738

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Description of Business and Basis of Presentation

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business: Cousins Properties Incorporated (“Cousins”), a Georgia corporation, is a fully integrated, self-administered, and self-managed real estate investment trust (“REIT”). Cousins conducts substantially all of its business through Cousins Properties LP ("CPLP"). Cousins owns in excess of 99% of CPLP and consolidates CPLP. CPLP wholly owns Cousins TRS Services LLC ("CTRS"), a taxable entity which owns and manages its own real estate portfolio and performs certain real estate-related services for other parties.

Cousins, CPLP, CTRS, and their subsidiaries (collectively, the “Company”) develop, acquire, lease, manage, and own primarily Class A office properties and opportunistic mixed-use developments in the Sun Belt markets of the United States with a focus on Atlanta, Austin, Phoenix, Tampa, Charlotte, Dallas, and Nashville. Cousins has elected to be taxed as a REIT and intends to, among other things, distribute at least 100% of its net taxable income to stockholders, thereby eliminating any liability for federal income taxes under current law. Therefore, the results included herein do not include a federal income tax provision for Cousins. As of September 30, 2023, the Company's operating portfolio of real estate assets consisted of interests in 18.8 million square feet of office space and 310,000 square feet of multi-family space.

Basis of Presentation: The condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for the fair presentation of the Company's financial position as of September 30, 2023 and December 31, 2022, and the results of operations for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The accounting policies employed are substantially the same as those shown in note 2 of the notes to consolidated financial statements included therein.

The Company evaluates all partnerships, joint ventures, and other arrangements with variable interests to determine if the entity or arrangement qualifies as a variable interest entity ("VIE"), as defined in the Financial Accounting Standard Board's ("FASB") Accounting Standards Codification ("ASC"). If the entity or arrangement qualifies as a VIE and the Company is determined to be the primary beneficiary, the Company is required to consolidate the assets, liabilities, and results of operations of the VIE. The Company had no investments or interests in any VIEs as of September 30, 2023 or December 31, 2022.

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Real Estate

9 Months Ended

Sep. 30, 2023

Real Estate [Abstract]

REAL ESTATE

REAL ESTATE

In September 2023, the Company sold a 10.4 acre land parcel in Atlanta for a gross sales price of $4.25 million and recorded a gain of $507,000.

Impairment

The Company tests buildings held for investment, by disposal groups, for impairment whenever changes in circumstances indicate a disposal group’s carrying value may not be recoverable. The test is conducted using undiscounted cash flows for the shorter of the building’s estimated hold period or its remaining useful life. When testing for recoverability of value of buildings held for investment, projected cash flows are used over its expected hold period. If the expected hold period includes some likelihood of shorter-term hold period from a potential sale, the probability of a sale is layered into the analysis. If any building's held-for-investment analysis were to fail the impairment test, its book value would be written down to its then current estimated fair value, before any selling expense, and that building would continue to depreciate over its remaining useful life. None of the Company’s held-for-investment buildings were impaired during any periods presented in the accompanying statement of operations while under the held-for-investment classification.

The Company also reviews held-for-sale buildings, if any, for impairments. In order to be considered a real estate asset held-for-sale, the Company must, among other things, have the authority to commit to a plan to sell the asset in its current condition, have commenced the plan to sell the asset, and have determined that it is probable that the asset will sell within one year. If book value is in excess of estimated fair value less estimated selling costs, we impair those assets to fair value less estimated selling costs. There were

no held-for-sale buildings as of September 30, 2023 or December 31, 2022 or during any periods presented in the accompanying statements of operations.

The Company also reviews land and projects under development for impairment whenever changes in circumstances indicate the assets' carrying value may not be recoverable. None of the Company's investments in land or projects under development were impaired as of September 30, 2023 or December 31, 2022 or during any periods presented in the accompanying statement of operations.

The Company may record impairment charges in future periods if the economy and the office industry weakens, the operating results of individual buildings are materially different from our forecasts, or we shorten our contemplated hold period for any operating buildings.

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Investment in Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The following information summarizes financial data and principal activities of the Company's unconsolidated joint ventures. The information included in the following table entitled summary of financial position is as of September 30, 2023 and December 31, 2022 ($ in thousands).

SUMMARY OF FINANCIAL POSITION
	Total Assets				Total Debt				Total Equity (Deficit)				Company's Investment
	2023		2022		2023		2022		2023		2022		2023			2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	80,362	$	81,136	$	—	$	—	$	79,203	$	80,509	$	14,526		$	14,856
Crawford Long - CPI, LLC (1)	22,435		22,857		82,296		62,856		(62,593)		(39,691)		(30,686)		(2)	(19,173)		(2)
Under Development:
Neuhoff Holdings LLC (3)	455,070		321,338		200,640		115,940		225,130		177,734		122,391			93,647
Land:
715 Ponce Holdings LLC	8,610		8,333		—		—		8,477		8,332		4,333			4,261
Sold and Other:
HICO Victory Center LP	—		158		—		—		—		5,818		—			75
	$	566,477	$	433,822	$	282,936	$	178,796	$	250,217	$	232,702	$	110,564		$	93,666

(1) In May 2023, Crawford Long - CPI, LLC refinanced the mortgage loan for the Medical Offices at Emory Hospital property. This $83.0 million interest-only mortgage loan has a fixed interest rate of 4.80% and matures in June 2032.

(2) Negative investment basis included in deferred income on the consolidated balance sheets.

(3) Neuhoff Holdings LLC has a construction loan with a borrowing capacity up to $312.7 million that matures in September 2025. The interest rate applicable to the construction loan is based on the Secured Overnight Financing Rate ("SOFR") plus 3.45% with a minimum rate of 3.60%.

The information included in the summary of operations table is for the nine months ended September 30, 2023 and 2022 ($ in thousands).

SUMMARY OF OPERATIONS
	Total Revenues				Net Income (Loss)				Company's Income from Investment
	2023		2022		2023		2022		2023		2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	8,337	$	8,005	$	2,698	$	2,335	$	537	$	454
Crawford Long - CPI, LLC	9,754		9,811		2,911		3,419		1,352		1,603
Under Development:
Neuhoff Holdings LLC	105		107		59		79		30		39
Land:
715 Ponce Holdings LLC	210		220		145		156		72		78
Sold and Other:
Carolina Square Holdings LP	—		12,140		48		600		24		215
HICO Victory Center LP	—		6,873		(14)		6,871		(7)		4,546
Other	—		28		—		(12)		—		103
	$	18,406	$	37,184	$	5,847	$	13,448	$	2,008	$	7,038

In May 2023, Crawford Long refinanced the mortgage loan for the Medical Offices at Emory Hospital property. Proceeds from the refinancing were used to repay in full its $62.4 million mortgage loan that was set to mature in June 2023. The new $83.0 million mortgage loan has a fixed interest rate of 4.80% and matures in June 2032.

In September 2022, the Company sold its 50% joint venture interest in Carolina Square Holdings LP ("Carolina Square"), which owned a mixed-used property in Chapel Hill, to its partner for a gross sales price of $105.0 million. The Company recognized a gain of $56.3 million on the sale of its interest in Carolina Square.

In June 2022, HICO Victory Center LP sold a 3.0 acre land parcel, in Uptown Dallas, held in an unconsolidated joint venture for a gross price of $23.1 million. The Company's share of the gain from the transaction was $4.5 million and is included in income from unconsolidated joint ventures on the statements of operations.

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Intangible Assets and Liabilities

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND LIABILITIES

INTANGIBLE ASSETS AND LIABILITIES

At September 30, 2023 and December 31, 2022, intangible assets included the following ($ in thousands):

	2023		2022
In-place leases, net of accumulated amortization of $132,411 and $131,021 in 2023 and 2022, respectively	$	84,762	$	102,080
Below-market ground leases, net of accumulated amortization of $2,160 and $1,860 in 2023 and 2022, respectively	17,092		17,393
Above-market leases, net of accumulated amortization of $24,273 and $25,085 in 2023 and 2022, respectively	12,564		15,093
Goodwill	1,674		1,674
	$	116,092	$	136,240

At September 30, 2023 and December 31, 2022, intangible liabilities were the following ($ in thousands):

	2023		2022
Below-market leases, net of accumulated amortization of $49,540 and $48,994 in 2023 and 2022, respectively	$	44,295	$	52,280

The amortization of the above asset and liabilities are recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rental property revenues, net (Below-market and Above-market leases)	$	1,371	$	1,538	$	5,455	$	4,979
Expenses:
Depreciation and amortization (In-place leases)	4,849		7,274		17,319		21,664
Rental property operating and other expenses (Below-market ground leases)	100		100		300		310

Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows ($ in thousands):

	In-Place  Leases		Below-Market Ground Leases		Above-Market Leases		Below-Market Leases
2023 (three months)	$	4,531	$	100	$	646	$	(2,104)
2024	17,069		400		2,425		(8,234)
2025	14,782		400		2,119		(7,728)
2026	12,382		400		1,726		(6,509)
2027	9,799		400		1,317		(4,973)
Thereafter	26,199		15,392		4,331		(14,747)
	$	84,762	$	17,092	$	12,564	$	(44,295)

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Other Assets

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

OTHER ASSETS

Other assets on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Predevelopment costs	$	55,562	$	50,009
Prepaid expenses and other assets	13,961		6,438
Furniture, fixtures and equipment and other deferred costs, net of accumulated depreciation of $18,994 and $18,860 in 2023 and 2022, respectively	10,586		11,824
Lease inducements, net of accumulated amortization of $5,740 and $5,129 in 2023 and 2022, respectively	8,117		8,091
Credit Facility deferred financing costs, net of accumulated amortization of $1,809 and $135 in 2023 and 2022, respectively	4,594		5,550
	$	92,820	$	81,912

Predevelopment costs represent amounts that are capitalized related to predevelopment projects that the Company determined are probable of future development.

Lease inducements are incentives paid to tenants in conjunction with leasing space, such as moving costs, sublease arrangements of prior space, and other costs. These amounts are amortized into rental revenues over the individual underlying lease terms.

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Notes Payable

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTES PAYABLE

The following table summarizes the terms of notes payable outstanding at September 30, 2023 and December 31, 2022 ($ in thousands):

Description	Interest Rate (1)	Maturity (2)	2023		2022
Unsecured Notes:
Credit Facility	6.31%	April 2027	$	144,500	$	56,600
Term Loan	(3)	March 2025	400,000		400,000
Term Loan	5.38%	August 2024	350,000		350,000
Senior Note	3.95%	July 2029	275,000		275,000
Senior Note	3.91%	July 2025	250,000		250,000
Senior Note	3.86%	July 2028	250,000		250,000
Senior Note	3.78%	July 2027	125,000		125,000
Senior Note	4.09%	July 2027	100,000		100,000
			1,894,500		1,806,600
Secured Mortgage Notes:
Terminus (4)	6.34%	January 2031	221,000		221,000
Fifth Third Center	3.37%	October 2026	127,464		130,168
Colorado Tower	3.45%	September 2026	107,543		109,552
Domain 10	3.75%	November 2024	73,056		74,521
			529,063		535,241
			$	2,423,563	$	2,341,841
Unamortized loan costs			(5,160)		(7,235)
Total Notes Payable			$	2,418,403	$	2,334,606

(1) Interest rate as of September 30, 2023.

(2) Weighted average maturity of notes payable outstanding at September 30, 2023 was 3.3 years.

(3) In April 2023, the Company entered into a floating-to-fixed interest rate swap with respect to $200 million of the $400 million Term Loan. As of September 30, 2023, the fixed interest rate was 5.45%, and the floating interest rate was 6.46%.

(4) Represents $123.0 million and $98.0 million non-cross-collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.

Credit Facility

On May 2, 2022, the Company entered into a Fifth Amended and Restated Credit Agreement (the "Credit Facility") under which the Company may borrow up to $1 billion if certain conditions are satisfied. The Credit Facility contains financial covenants that require, among other things, the maintenance of unencumbered interest coverage ratio of at least 1.75x; a fixed charge coverage ratio of at least 1.50x; a secured leverage ratio of no more than 50%; and an overall leverage ratio of no more than 60%.

The interest rate applicable to the Credit Facility varies according to the Company's leverage ratio and may, at the election of the Company, be determined based on either (1) the Daily SOFR or Term SOFR, plus a SOFR adjustment of 0.10% ("Adjusted SOFR") and a spread of between 0.90% and 1.40%, or (2) the greater of (i) Bank of America's prime rate, (ii) the federal funds rate plus 0.50%, (iii) Term SOFR, plus a SOFR adjustment of 0.10%, and 1.00%, or (iv) 1.00%, plus a spread of between 0.00% and 0.40%, based on leverage. In addition to the interest rate, the Credit Facility is also subject to a facility fee of 0.15% to 0.30%, depending on leverage, on the entire $1 billion capacity.

At September 30, 2023, the Credit Facility's interest rate spread over Adjusted SOFR was 0.90%, and the facility fee spread was 0.15%. The amount that the Company may draw under the Credit Facility is a defined calculation based on the Company's unencumbered assets and other factors. The total available borrowing capacity under the Credit Facility was $855.5 million at September 30, 2023. The amounts outstanding under the Credit Facility may be accelerated upon the occurrence of any events of default.

The Credit Facility replaced a $1 billion prior facility that was set to expire in January 2023. The rate paid under the prior facility from January 1, 2022 through May 1, 2022 was LIBOR plus 1.05%.

Term Loans

On October 3, 2022, the Company entered into a Delayed Draw Term Loan Agreement (the "2022 Term Loan") and borrowed the full $400 million available under the loan. The loan matures on March 3, 2025 with four consecutive options to extend the maturity date for an additional six months. The interest rate provisions are the same as the 2021 Term Loan, and the covenants are the same as the Credit Facility. On April 19, 2023, the Company entered into a floating-to-fixed rate swap with respect to $200 million of the $400 million 2022 Term Loan through the maturity date of March 3, 2025. This swap fixed the underlying SOFR rate at 4.298% (see note 7).

On June 28, 2021, the Company entered into an Amended and Restated Term Loan Agreement (the "2021 Term Loan") that amended the former term loan agreement. Under the 2021 Term Loan, the Company has borrowed $350 million that matures on August 30, 2024 with four consecutive options to extend the maturity date for an additional 180 days. On September 19, 2022, the Company entered into the First Amendment to the 2021 Term Loan. This amendment aligns covenants and available interest rates, including the addition of SOFR, to that of the Credit Facility. Under the terms of this First Amendment the interest rate applicable to the 2021 Term Loan varies according to the Company's leverage ratio and may, at the election of the Company, be determined based on either (1) the Daily SOFR or Term SOFR, plus a SOFR adjustment of 0.10% ("Adjusted SOFR") and a spread of between 1.05% and 1.65%, or (2) the greater of (i) Bank of America's prime rate, (ii) the federal funds rate plus 0.50%, (iii) Term SOFR, plus a SOFR adjustment of 0.10%, and 1.00%, (iv) or 1.00%, plus a spread of between 0.05% and 0.65%, based on leverage. On September 19, 2022, the Company provided notice of our election of the Daily SOFR Rate Loan provisions. On September 27, 2022, the Company entered into a floating-to-fixed interest rate swap with respect to the $350 million 2021 Term Loan through the maturity date of August 30, 2024. This swap effectively fixed the underlying SOFR rate at 4.234% (see note 7).

At September 30, 2023, the Term Loans' spread over the underlying SOFR rates was 1.05%.

Unsecured Senior Notes

The Company has unsecured senior notes of $1.0 billion that were funded in five tranches. The first tranche of $100 million is due in 2027 and has a fixed annual interest rate of 4.09%. The second tranche of $250 million is due in 2025 and has a fixed annual interest rate of 3.91%. The third tranche of $125 million is due in 2027 and has a fixed annual interest rate of 3.78%. The fourth tranche of $250 million is due in 2028 and has a fixed annual interest rate of 3.86%. The fifth tranche of $275 million is due in 2029 and has a fixed annual interest rate of 3.95%.

The unsecured senior notes contain financial covenants that are consistent with those of our Credit Facility, with the exception of a secured leverage ratio of no more than 40%. The senior notes also contain customary representations and warranties and affirmative and negative covenants, as well as customary events of default.

Secured Mortgage Notes

In December 2022, the Company refinanced mortgages on the Company's two Terminus properties in Atlanta with the existing lender. Under the new mortgages, the maturities were extended from January 2023 to January 2031, the combined principal increased to $221.0 million, up from $178.9 million. The interest rate for each mortgage is 6.34%, up from a combined weighted average interest rate of 4.67%. These mortgages are neither cross-collateralized nor cross-defaulted.

In October 2022, the Company paid off, in full, its Legacy Union One and Promenade Tower mortgages with remaining principal balances of $66.0 million and $86.3 million, respectively. These mortgages had interest rates of 4.24% and 4.27%, respectively.

As of September 30, 2023, the Company had $529.1 million outstanding on five non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $894.3 million are pledged as security on these mortgage notes payable.

Other Debt Information

The Company is in compliance with all of the covenants related to its unsecured and secured debt.

At September 30, 2023 and December 31, 2022, the estimated fair value of the Company’s notes payable was $2.2 billion, calculated by discounting the debt's remaining contractual cash flows at estimated current market rates at which similar loans could have been obtained at September 30, 2023 and December 31, 2022. The estimate of the current market rates, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value

relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820, as the Company utilizes market rates for similar type loans from third party brokers.

For the three and nine months ended September 30, 2023 and 2022, interest expense was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total interest incurred	$	31,180	$	22,406	$	92,278	$	61,522
Interest capitalized	(4,172)		(4,026)		(14,268)		(11,068)
Total interest expense	$	27,008	$	18,380	$	78,010	$	50,454

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

On April 19, 2023, the Company entered into a floating-to-fixed interest rate swap with respect to $200 million of the $400 million 2022 Term Loan through the maturity date of March 3, 2025. This swap effectively fixed the underlying SOFR rate at 4.298%.

On September 27, 2022, the Company entered into a floating-to-fixed interest rate swap with respect to the $350 million 2021 Term Loan through the maturity date of August 30, 2024. This swap effectively fixed the underlying SOFR rate at 4.234%.

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022 and 2023, such derivatives were used to hedge the variable cash flows associated with the 2021 and 2022 Term Loans (referred to as "cash flow hedges").

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings.

The counterparties under these swaps are major financial institutions, and the swaps contain provisions whereby if the Company defaults on certain of its indebtedness, and such default results in repayment of such indebtedness being, or becoming capable of being, accelerated by the lender, then the Company could also be declared in default under the swaps. There are no collateral requirements related to these swaps.

As of September 30, 2023, the fair value of the swap with respect to the 2022 Term Loan was $2.3 million and is included in other assets on the Company's consolidated balance sheets.

As of September 30, 2023 and December 31, 2022, the fair values of the swap with respect to the 2021 Term Loan were $3.5 million and $1.8 million, respectively, and are included in other assets on the Company's consolidated balance sheets.

The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Cash Flow Hedges:	2023		2022		2023		2022
Amount of income (loss) recognized in accumulated other comprehensive income on interest rate derivatives	$	1,503	$	(715)	$	6,397	$	(715)
Amount of loss (income) reclassified from accumulated other comprehensive income into income as a reduction of interest expense	$	(1,345)	$	63	$	(2,441)	$	63
Total amount of interest expense presented in the consolidated statements of operations	$	27,008	$	18,380	$	78,010	$	50,454

The fair value of these hedges is determined using observable inputs other than quoted prices in active markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. These inputs are considered Level 2 inputs in the fair value hierarchy, and the Company engages a third-party expert to determine these inputs. The fair value of the cash flow hedges is determined using the conventional industry methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts made between the Company and its counterparties to the cash flow hedges. These variable cash receipts are based on the expectation of future interest rates which are derived from observed market interest rate curves.

In addition, any credit valuation adjustments are considered in the fair values to account for potential nonperformance risk to the extent they would be significant inputs to the calculations. For the periods presented, credit valuation adjustments were not considered to be significant inputs.

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Other Liabilities

9 Months Ended

Sep. 30, 2023

Other Liabilities Disclosure [Abstract]

OTHER LIABILITIES

OTHER LIABILITIES

Other liabilities on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Ground lease liability	$	53,416	$	53,129
Prepaid rent	34,684		33,165
Security deposits	14,953		14,635
Restricted stock unit liability	—		1,048
Other liabilities	1,442		1,465
	$	104,495	$	103,442

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Commitments

The Company had outstanding performance bonds totaling $1.3 million at September 30, 2023. As a lessor, the Company had $161.7 million in future obligations under leases to fund tenant improvements and other future construction obligations at September 30, 2023.

Litigation

The Company is subject to various legal proceedings, claims, and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters using the latest information available. The Company records a liability for litigation if an unfavorable outcome is probable and the amount of loss or range of loss can be reasonably estimated. If an unfavorable outcome is probable and a reasonable estimate of the loss is a range, the Company accrues the best estimate within the range. If no amount within the range is a better estimate than any other amount, the Company accrues the minimum amount within the range. If an unfavorable outcome is probable but the amount of the loss cannot be reasonably estimated, the Company discloses the nature of the litigation and indicates that an estimate of the loss or range of loss cannot be made. If an unfavorable outcome is reasonably possible and the estimated loss is material, the Company discloses the nature and estimate of the possible loss of the litigation. The Company does not disclose information with respect to litigation where an unfavorable outcome is considered to be remote or where the estimated loss would not be material. Based on current expectations, such matters, both individually and in the aggregate, are not expected to have a material adverse effect on the liquidity, results of operations, business, or financial condition of the Company.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

In the third quarter of 2021, the Company entered into an Equity Distribution Agreement ("EDA") with six financial institutions known as an at-the-market stock offering program ("ATM Program"), under which the Company may offer and sell shares of its common stock from time to time in "at-the-market" offerings with an aggregate gross sales price of up to $500 million. In connection with the ATM Program, Cousins may, at its discretion, enter into forward equity sale agreements. The use of a forward equity sale agreement ("Forward Sales") would allow the Company to lock in a share price on the sale of shares of its common stock at the time the agreement is executed but defer receiving the proceeds from the sale of shares until a later date, allowing the Company to better align such funding with its capital needs. Sales of shares of Cousins' stock through its banking relationships, if any, are made in amounts and at times to be determined by Cousins from time to time, but the Company has no obligation to sell any of the shares in the offering and may suspend sales in connection with the offering at any time. Sales of Cousins' common stock under Forward Sales, if undertaken, meet the derivatives and hedging guidance scope exception as the contracts are related to the Company's own stock. On February 17, 2023, the Company filed a Form S-3 to renew the registration of its authorized shares. In conjunction with that Form S-3 filing, the Company entered into an Amendment to the EDA to allow for the continued issuance of shares under this ATM Program.

On April 21, 2022, the Company purchased its partner's 10% joint venture interest in HICO Avalon, LLC and HICO Avalon II, LLC, which consisted of the 8000 and 10000 Avalon office properties. This transaction did not result in a change in control and the difference between the $43.4 million purchase price of our partner's interest, which included a promote related to increases in fair value in excess of cost, and the $15.7 million book value of the outside partner's non-controlling interest was recorded as additional

paid-in capital in the equity section of the Company's consolidated balance sheet. The Company's consolidated basis in Avalon's assets and liabilities was unchanged by this transaction.

On June 29, 2022, the Company issued 2.6 million shares of common stock under Forward Sales contracts executed in December 2021 at an average price of $39.92 per share, for gross proceeds of $105.1 million. To date, the Company has issued 2.6 million shares under the ATM Program and has generated cash proceeds of $101.4 million, net of $1.1 million of compensation to be paid with respect to such Forward Sales, $1.7 million of dividends owed during the period the Forward Sales were outstanding, and $900,000 of other transaction related costs. To the extent, prior to settlement, shares sold under Forward Sales were potentially dilutive during the period under the treasury stock method, the impact of such dilution is disclosed in the calculation included in note 13. The Company did not issue any shares under the ATM Program during the nine months ended September 30, 2023 and did not have any outstanding Forward Sales contracts for the sale of its common stock as of September 30, 2023 or December 31, 2022.

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Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

The Company categorizes its primary sources of revenue into revenue from contracts with customers and other revenue accounted for as leases under ASC 842 as follows:

•Rental property revenues consist of (1) contractual revenues from leases recognized on a straight-line basis over the term of the respective lease; (2) percentage rents recognized once a specified sales target is achieved; (3) parking revenues; (4) termination fees; and (5) the reimbursement of the tenants' share of real estate taxes, insurance, and other operating expenses. The Company's leases typically include renewal options and are classified and accounted for as operating leases. Rental property revenues are accounted for in accordance with the guidance set forth in ASC 842.

•Fee income consists of development fees, management fees, and leasing fees earned from unconsolidated joint ventures and from third parties. Fee income is accounted for in accordance with the guidance set forth in ASC 606.

For the three and nine months ended September 30, 2023, the Company recognized rental property revenues of $198.4 million and $602.5 million, respectively, of which $52.9 million and $174.3 million, respectively, represented variable rental revenue. For the three and nine months ended September 30, 2022, the Company recognized rental property revenues of $193.5 million and $559.9 million, respectively, of which $54.7 million and $157.7 million, respectively, represented variable rental revenue.

For the three and nine months ended September 30, 2023, the Company recognized fee and other revenue of $419,000 and $3.4 million, respectively. For the three and nine months ended September 30, 2022, the Company recognized fee and other revenue of $1.7 million and $7.9 million, respectively. For the three and nine months ended September 30, 2022, fee and other revenue includes $1.0 million and $3.2 million, respectively, related to the Company's consulting and development contracts with Norfolk Southern Railway Company, as discussed in note 3 of the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. For the three and nine months ended September 30, 2023, none of the fee and other revenue related to Norfolk Southern Railway Company.

The Company had a lease with SVB Financial Group ("SVB Financial") at its Hayden Ferry property in Phoenix, Arizona. SVB Financial’s primary subsidiary, Silicon Valley Bank ("SVB"), was placed in receivership by the Federal Deposit Insurance Corporation ("FDIC") on March 10, 2023; and on March 17, 2023, SVB Financial filed a voluntary petition for a court-supervised reorganization under Chapter 11 of the US Bankruptcy Code. On March 27, 2023, First Citizen's BancShares, Inc. ("FCB") announced it had purchased SVB Financial's subsidiary, SVB, the primary user of the leased space. In June 2023, the Bankruptcy court approved SVB Financial's request for an order rejecting the lease, with an effective date no later than September 30, 2023. In June 2023, the Company recorded a reduction of revenue of $1.6 million related to the write-down of net assets associated with this lease at the time that the collection of rents for the term of the lease no longer remained probable. During the three months ended September 30, 2023, the Company recognized $2.3 million of rental revenue on a cash basis related to base rent lease payments made through September 30, 2023, the effective date of the termination.

On August 8, 2023, WeWork Inc. ("WeWork"), disclosed in its Quarterly Report filed on Form 10-Q for the period ending June 30, 2023 that substantial doubt exists as to its ability to continue as a going concern. The Company, through wholly owned subsidiaries, is the landlord under leases totaling approximately 162,000 square feet with subsidiaries of WeWork at three of the Company's properties, two in the Atlanta market and one in the Charlotte market. These WeWork leases comprised $6.5 million of the Company's annual rental property revenue in the accompanying statements of operations for the nine months ended September 30, 2023. The Company also has a 20% interest in an unconsolidated joint venture that is the landlord under a lease for approximately 33,000 square feet with a subsidiary of WeWork at one property in the Atlanta market. The Company's income from unconsolidated joint ventures related to that lease is not significant. Currently, the Company does not expect any potential bankruptcy filing by WeWork to have a material impact on the Company's 2023 financial results. As of October 26, 2023, the Company has not received the October 2023 rent payments at two of the four properties, one wholly owned and the other unconsolidated, but has letter of credit enhancements that substantially support the Company's current balance sheet exposure and revenue for the remainder of 2023 for those two leases. For the other two properties, both wholly owned, the Company has received the October 2023 rent payments and

does not expect that these leases will be rejected during any bankruptcy proceedings. If the Company subsequently determines that lease rejection at these two properties is probable, the net balance sheet exposure and related revenue reduction would be $1.2 million (as of the date of this filing, which reflects the October 2023 payments). The timing of recognizing this $1.2 million is subject to when the respective lease rejections become probable as well as the date on which WeWork vacates its leased space at each respective property. The Company's total projected November and December 2023 WeWork revenue at these two properties is $902,000.

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

The Company currently has several types of employee stock-based compensation — restricted stock, restricted stock units ("RSUs"), and the Employee Stock Purchase Plan ("ESPP"). While the Company's plans also allow for the issuance of stock options, none had been exercised or were outstanding as of or during any of the periods presented. A portion of the Company's independent directors' compensation is also provided in the form of company stock.

The Company's compensation expense for the three and nine months ended September 30, 2023 relates to restricted stock and RSUs awarded in 2023, 2022, 2021, and 2020, and the ESPP. Compensation expense for the three and nine months ended September 30, 2022 relates to restricted stock and RSUs awarded in 2022, 2021, 2020, and 2019, and the ESPP. Restricted stock, the 2023 RSUs, 2022 RSUs, 2021 RSUs, and the 2020 RSUs are equity-classified awards (settled in shares of the Company) for which compensation expense per share is fixed. The 2019 RSUs were liability-classified awards (settled in cash) for which the expense fluctuated from period to period dependent, in part, on the Company's stock price. For the three and nine months ended September 30, 2023 and 2022, stock-based compensation expense, net of forfeitures, was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Equity-classified awards:
Restricted stock	$	930	$	779	$	2,715	$	2,348
Market-based RSUs	1,095		917		3,954		3,065
Performance-based RSUs	350		179		1,133		863
Director grants	408		385		1,193		1,086
Employee Stock Purchase Plan	34		39		104		133
Total equity-classified award expense, net of forfeitures	2,817		2,299		9,099		7,495
Liability-classified awards
Time-vested RSUs	—		(116)		61		(136)
Dividend equivalent units	—		34		—		53
Total liability-classified award expense, net of forfeitures	—		(82)		61		(83)
Total stock-based compensation expense, net of forfeitures	$	2,817	$	2,217	$	9,160	$	7,412

Information on the Company's stock compensation plan, including information on the Company's equity-classified and liability-classified awards is discussed in note 15 of the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

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Earnings Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 ($ in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Earnings per common share - basic:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to noncontrolling interests in CPLP from continuing operations	(4)		(26)		(11)		(38)
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available to common stockholders	$	19,361	$	80,639	$	64,178	$	142,675
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Net income per common share - basic	$	0.13	$	0.53	$	0.42	$	0.95
Earnings per common share - diluted:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available for common stockholders before allocation of net income attributable to noncontrolling interests in CPLP	$	19,365	$	80,665	$	64,189	$	142,713
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Add:
Potential dilutive common shares - restricted stock units,     less shares assumed purchased at market price	249		235		301		251
Weighted average units of CPLP convertible into     common shares	25		25		25		25
Weighted average common shares - diluted	152,048		151,695		152,018		149,946
Net income per common share - diluted	$	0.13	$	0.53	$	0.42	$	0.95

The treasury stock method resulted in no dilution from shares expected to be issued under the ESPP or forward contracts for the future sales of common stock under the Company's ATM Program during the respective periods presented.

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Consolidated Statements of Cash Flows - Supplemental Information

9 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL INFORMATION

CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL INFORMATION

Supplemental information related to the cash flows, including significant non-cash activity affecting the consolidated statements of cash flows, for the nine months ended September 30, 2023 and 2022 is as follows ($ in thousands):

	2023		2022
Interest paid, net of amounts capitalized	$	84,205	$	58,865
Income taxes paid	—		—
Non-Cash Activity:
Common stock dividends declared and accrued	49,296		48,459
Accrued capital expenditures included in accounts payable and accrued expenses	81,707		93,528
Tenant improvements funded by tenants	48,120		56,727

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Reportable Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

The Company's segments are based on the method of internal reporting, which classifies operations by property type and geographical region. The segments by property type are Office and Non-Office. The segments by geographical region are Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and other markets. Included in other markets are properties located in Chapel Hill (sold in September 2022), Houston, and Nashville. Included in Non-Office are retail and apartments in Chapel Hill (sold in September 2022) and Atlanta, as well as the College Street Garage in Charlotte. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of property and the geographical location. Each segment includes both consolidated operations and the Company's share of joint venture operations.

Company management evaluates the performance of its reportable segments based in part on net operating income (“NOI”). NOI represents rental property revenues, less termination fees, less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, is not indicative of cash available to fund cash needs, and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of the Company's operating assets. NOI excludes fee income, termination fee income, other income, corporate general and administrative expenses, interest expense, depreciation and amortization, reimbursed expenses, other expenses, impairments, gains/losses on sales of real estate, gains/losses on extinguishment of debt, transaction costs, and other non-operating items.

Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	75,857	$	479	$	76,336
Austin	62,250		—		62,250
Charlotte	14,338		1,711		16,049
Dallas	4,280		—		4,280
Phoenix	16,339		—		16,339
Tampa	18,797		—		18,797
Other markets	6,669		—		6,669
Total segment revenues	198,530		2,190		200,720
Less: Company's share of rental property revenues from unconsolidated joint ventures	(1,812)		(479)		(2,291)
Total rental property revenues	$	196,718	$	1,711	$	198,429

Three Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	70,708	$	461	$	71,169
Austin	64,522		—		64,522
Charlotte	14,343		1,316		15,659
Dallas	4,240		—		4,240
Phoenix	15,135		—		15,135
Tampa	18,229		—		18,229
Other markets	7,476		1,419		8,895
Total segment revenues	194,653		3,196		197,849
Less: Company's share of rental property revenues from unconsolidated joint ventures	(2,514)		(1,880)		(4,394)
Total rental property revenues	$	192,139	$	1,316	$	193,455

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	221,149	$	1,405	$	222,554
Austin	198,294		—		198,294
Charlotte	43,831		5,253		49,084
Dallas	12,692		—		12,692
Phoenix	50,142		—		50,142
Tampa	56,286		—		56,286
Other markets	20,027		—		20,027
Total segment revenues	602,421		6,658		609,079
Less: Company's share of rental property revenues from unconsolidated joint ventures	(5,215)		(1,405)		(6,620)
Total rental property revenues	$	597,206	$	5,253	$	602,459

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	207,582	$	1,323	$	208,905
Austin	184,800		—		184,800
Charlotte	41,776		3,604		45,380
Dallas	12,568		—		12,568
Phoenix	42,098		—		42,098
Tampa	52,369		—		52,369
Other markets	22,423		3,957		26,380
Total segment revenues	563,616		8,884		572,500
Less: Company's share of rental property revenues from unconsolidated joint ventures	(7,364)		(5,280)		(12,644)
Total rental property revenues	$	556,252	$	3,604	$	559,856

NOI by reportable segment for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	48,806	$	316	$	49,122
Austin	43,376		—		43,376
Charlotte	10,947		1,150		12,097
Dallas	3,235		—		3,235
Phoenix	11,950		—		11,950
Tampa	11,444		—		11,444
Other markets	3,660		—		3,660
Total Net Operating Income	$	133,418	$	1,466	$	134,884

Three Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	46,678	$	280	$	46,958
Austin	39,564		—		39,564
Charlotte	10,587		935		11,522
Dallas	3,197		—		3,197
Phoenix	11,145		—		11,145
Tampa	11,254		—		11,254
Other markets	4,879		881		5,760
Total Net Operating Income	$	127,304	$	2,096	$	129,400

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	144,564	$	870	$	145,434
Austin	126,179		—		126,179
Charlotte	32,473		3,475		35,948
Dallas	9,678		—		9,678
Phoenix	33,973		—		33,973
Tampa	34,816		—		34,816
Other markets	10,836		—		10,836
Total Net Operating Income	$	392,519	$	4,345	$	396,864

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	137,357	$	765	$	138,122
Austin	112,496		—		112,496
Charlotte	30,845		2,549		33,394
Dallas	9,696		—		9,696
Phoenix	29,988		—		29,988
Tampa	32,588		—		32,588
Other markets	13,319		2,455		15,774
Total Net Operating Income	$	366,289	$	5,769	$	372,058

The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income	$	19,491	$	80,769	$	64,924	$	143,096
Fee income	(318)		(1,677)		(1,044)		(5,370)
Termination fee income	(271)		(242)		(6,977)		(2,153)
Other income	(101)		(38)		(2,393)		(2,522)
General and administrative expenses	8,336		6,498		24,795		21,557
Interest expense	27,008		18,380		78,010		50,454
Depreciation and amortization	79,492		79,116		235,531		219,721
Reimbursed expenses	149		418		515		1,455
Other expenses	623		231		1,484		877
Income from unconsolidated joint ventures	(582)		(634)		(2,008)		(7,038)
Net operating income from unconsolidated joint ventures	1,564		2,819		4,532		8,080
Gain on sales of investments in unconsolidated joint ventures	—		(56,260)		—		(56,260)
Loss (gain) on investment property transactions	(507)		20		(505)		61
Loss on extinguishment of debt	—		—		—		100
Net Operating Income	$	134,884	$	129,400	$	396,864	$	372,058

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Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation: The condensed consolidated financial statements are unaudited and were prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, these financial statements reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for the fair presentation of the Company's financial position as of September 30, 2023 and December 31, 2022, and the results of operations for the three and nine months ended September 30, 2023 and 2022. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results expected for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes to consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The accounting policies employed are substantially the same as those shown in note 2 of the notes to consolidated financial statements included therein.The Company evaluates all partnerships, joint ventures, and other arrangements with variable interests to determine if the entity or arrangement qualifies as a variable interest entity ("VIE"), as defined in the Financial Accounting Standard Board's ("FASB") Accounting Standards Codification ("ASC"). If the entity or arrangement qualifies as a VIE and the Company is determined to be the primary beneficiary, the Company is required to consolidate the assets, liabilities, and results of operations of the VIE.

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Investment in Unconsolidated Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Summary of Financial Data and Principal Activities of Unconsolidated Joint Ventures

The following information summarizes financial data and principal activities of the Company's unconsolidated joint ventures. The information included in the following table entitled summary of financial position is as of September 30, 2023 and December 31, 2022 ($ in thousands).

SUMMARY OF FINANCIAL POSITION
	Total Assets				Total Debt				Total Equity (Deficit)				Company's Investment
	2023		2022		2023		2022		2023		2022		2023			2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	80,362	$	81,136	$	—	$	—	$	79,203	$	80,509	$	14,526		$	14,856
Crawford Long - CPI, LLC (1)	22,435		22,857		82,296		62,856		(62,593)		(39,691)		(30,686)		(2)	(19,173)		(2)
Under Development:
Neuhoff Holdings LLC (3)	455,070		321,338		200,640		115,940		225,130		177,734		122,391			93,647
Land:
715 Ponce Holdings LLC	8,610		8,333		—		—		8,477		8,332		4,333			4,261
Sold and Other:
HICO Victory Center LP	—		158		—		—		—		5,818		—			75
	$	566,477	$	433,822	$	282,936	$	178,796	$	250,217	$	232,702	$	110,564		$	93,666

(1) In May 2023, Crawford Long - CPI, LLC refinanced the mortgage loan for the Medical Offices at Emory Hospital property. This $83.0 million interest-only mortgage loan has a fixed interest rate of 4.80% and matures in June 2032.

(2) Negative investment basis included in deferred income on the consolidated balance sheets.

(3) Neuhoff Holdings LLC has a construction loan with a borrowing capacity up to $312.7 million that matures in September 2025. The interest rate applicable to the construction loan is based on the Secured Overnight Financing Rate ("SOFR") plus 3.45% with a minimum rate of 3.60%.

The information included in the summary of operations table is for the nine months ended September 30, 2023 and 2022 ($ in thousands).

SUMMARY OF OPERATIONS
	Total Revenues				Net Income (Loss)				Company's Income from Investment
	2023		2022		2023		2022		2023		2022
Operating Properties:
AMCO 120 WT Holdings, LLC	$	8,337	$	8,005	$	2,698	$	2,335	$	537	$	454
Crawford Long - CPI, LLC	9,754		9,811		2,911		3,419		1,352		1,603
Under Development:
Neuhoff Holdings LLC	105		107		59		79		30		39
Land:
715 Ponce Holdings LLC	210		220		145		156		72		78
Sold and Other:
Carolina Square Holdings LP	—		12,140		48		600		24		215
HICO Victory Center LP	—		6,873		(14)		6,871		(7)		4,546
Other	—		28		—		(12)		—		103
	$	18,406	$	37,184	$	5,847	$	13,448	$	2,008	$	7,038

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Intangible Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

At September 30, 2023 and December 31, 2022, intangible assets included the following ($ in thousands):

	2023		2022
In-place leases, net of accumulated amortization of $132,411 and $131,021 in 2023 and 2022, respectively	$	84,762	$	102,080
Below-market ground leases, net of accumulated amortization of $2,160 and $1,860 in 2023 and 2022, respectively	17,092		17,393
Above-market leases, net of accumulated amortization of $24,273 and $25,085 in 2023 and 2022, respectively	12,564		15,093
Goodwill	1,674		1,674
	$	116,092	$	136,240

Schedule of Intangible Liabilities

At September 30, 2023 and December 31, 2022, intangible liabilities were the following ($ in thousands):

	2023		2022
Below-market leases, net of accumulated amortization of $49,540 and $48,994 in 2023 and 2022, respectively	$	44,295	$	52,280

Schedule of Amortization of Intangible Asset and Liabilities

The amortization of the above asset and liabilities are recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Rental property revenues, net (Below-market and Above-market leases)	$	1,371	$	1,538	$	5,455	$	4,979
Expenses:
Depreciation and amortization (In-place leases)	4,849		7,274		17,319		21,664
Rental property operating and other expenses (Below-market ground leases)	100		100		300		310

Schedule of Aggregate Amortization of Intangible Assets and Liabilities

Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows ($ in thousands):

	In-Place  Leases		Below-Market Ground Leases		Above-Market Leases		Below-Market Leases
2023 (three months)	$	4,531	$	100	$	646	$	(2,104)
2024	17,069		400		2,425		(8,234)
2025	14,782		400		2,119		(7,728)
2026	12,382		400		1,726		(6,509)
2027	9,799		400		1,317		(4,973)
Thereafter	26,199		15,392		4,331		(14,747)
	$	84,762	$	17,092	$	12,564	$	(44,295)

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Other Assets (Tables)

9 Months Ended

Sep. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Predevelopment costs	$	55,562	$	50,009
Prepaid expenses and other assets	13,961		6,438
Furniture, fixtures and equipment and other deferred costs, net of accumulated depreciation of $18,994 and $18,860 in 2023 and 2022, respectively	10,586		11,824
Lease inducements, net of accumulated amortization of $5,740 and $5,129 in 2023 and 2022, respectively	8,117		8,091
Credit Facility deferred financing costs, net of accumulated amortization of $1,809 and $135 in 2023 and 2022, respectively	4,594		5,550
	$	92,820	$	81,912

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Notes Payable (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Summary of Terms of Notes Payable

The following table summarizes the terms of notes payable outstanding at September 30, 2023 and December 31, 2022 ($ in thousands):

Description	Interest Rate (1)	Maturity (2)	2023		2022
Unsecured Notes:
Credit Facility	6.31%	April 2027	$	144,500	$	56,600
Term Loan	(3)	March 2025	400,000		400,000
Term Loan	5.38%	August 2024	350,000		350,000
Senior Note	3.95%	July 2029	275,000		275,000
Senior Note	3.91%	July 2025	250,000		250,000
Senior Note	3.86%	July 2028	250,000		250,000
Senior Note	3.78%	July 2027	125,000		125,000
Senior Note	4.09%	July 2027	100,000		100,000
			1,894,500		1,806,600
Secured Mortgage Notes:
Terminus (4)	6.34%	January 2031	221,000		221,000
Fifth Third Center	3.37%	October 2026	127,464		130,168
Colorado Tower	3.45%	September 2026	107,543		109,552
Domain 10	3.75%	November 2024	73,056		74,521
			529,063		535,241
			$	2,423,563	$	2,341,841
Unamortized loan costs			(5,160)		(7,235)
Total Notes Payable			$	2,418,403	$	2,334,606

(1) Interest rate as of September 30, 2023.

(2) Weighted average maturity of notes payable outstanding at September 30, 2023 was 3.3 years.

(3) In April 2023, the Company entered into a floating-to-fixed interest rate swap with respect to $200 million of the $400 million Term Loan. As of September 30, 2023, the fixed interest rate was 5.45%, and the floating interest rate was 6.46%.

(4) Represents $123.0 million and $98.0 million non-cross-collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.

Summary of Interest Recorded

For the three and nine months ended September 30, 2023 and 2022, interest expense was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total interest incurred	$	31,180	$	22,406	$	92,278	$	61,522
Interest capitalized	(4,172)		(4,026)		(14,268)		(11,068)
Total interest expense	$	27,008	$	18,380	$	78,010	$	50,454

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022 ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Cash Flow Hedges:	2023		2022		2023		2022
Amount of income (loss) recognized in accumulated other comprehensive income on interest rate derivatives	$	1,503	$	(715)	$	6,397	$	(715)
Amount of loss (income) reclassified from accumulated other comprehensive income into income as a reduction of interest expense	$	(1,345)	$	63	$	(2,441)	$	63
Total amount of interest expense presented in the consolidated statements of operations	$	27,008	$	18,380	$	78,010	$	50,454

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Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Other Liabilities Disclosure [Abstract]

Summary of Other Liabilities

Other liabilities on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 included the following ($ in thousands):

	2023		2022
Ground lease liability	$	53,416	$	53,129
Prepaid rent	34,684		33,165
Security deposits	14,953		14,635
Restricted stock unit liability	—		1,048
Other liabilities	1,442		1,465
	$	104,495	$	103,442

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense, Net of Forfeitures

For the three and nine months ended September 30, 2023 and 2022, stock-based compensation expense, net of forfeitures, was recorded as follows ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Equity-classified awards:
Restricted stock	$	930	$	779	$	2,715	$	2,348
Market-based RSUs	1,095		917		3,954		3,065
Performance-based RSUs	350		179		1,133		863
Director grants	408		385		1,193		1,086
Employee Stock Purchase Plan	34		39		104		133
Total equity-classified award expense, net of forfeitures	2,817		2,299		9,099		7,495
Liability-classified awards
Time-vested RSUs	—		(116)		61		(136)
Dividend equivalent units	—		34		—		53
Total liability-classified award expense, net of forfeitures	—		(82)		61		(83)
Total stock-based compensation expense, net of forfeitures	$	2,817	$	2,217	$	9,160	$	7,412

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2023 and 2022 ($ in thousands, except per share amounts):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Earnings per common share - basic:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to noncontrolling interests in CPLP from continuing operations	(4)		(26)		(11)		(38)
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available to common stockholders	$	19,361	$	80,639	$	64,178	$	142,675
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Net income per common share - basic	$	0.13	$	0.53	$	0.42	$	0.95
Earnings per common share - diluted:
Numerator:
Net income	$	19,491	$	80,769	$	64,924	$	143,096
Net income attributable to other noncontrolling interests	(126)		(104)		(735)		(383)
Net income available for common stockholders before allocation of net income attributable to noncontrolling interests in CPLP	$	19,365	$	80,665	$	64,189	$	142,713
Denominator:
Weighted average common shares - basic	151,774		151,435		151,692		149,670
Add:
Potential dilutive common shares - restricted stock units,     less shares assumed purchased at market price	249		235		301		251
Weighted average units of CPLP convertible into     common shares	25		25		25		25
Weighted average common shares - diluted	152,048		151,695		152,018		149,946
Net income per common share - diluted	$	0.13	$	0.53	$	0.42	$	0.95

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Consolidated Statements of Cash Flows - Supplemental Information (Tables)

9 Months Ended

Sep. 30, 2023

Supplemental Cash Flow Elements [Abstract]

Supplemental Information Related to Cash Flows

Supplemental information related to the cash flows, including significant non-cash activity affecting the consolidated statements of cash flows, for the nine months ended September 30, 2023 and 2022 is as follows ($ in thousands):

	2023		2022
Interest paid, net of amounts capitalized	$	84,205	$	58,865
Income taxes paid	—		—
Non-Cash Activity:
Common stock dividends declared and accrued	49,296		48,459
Accrued capital expenditures included in accounts payable and accrued expenses	81,707		93,528
Tenant improvements funded by tenants	48,120		56,727

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Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	75,857	$	479	$	76,336
Austin	62,250		—		62,250
Charlotte	14,338		1,711		16,049
Dallas	4,280		—		4,280
Phoenix	16,339		—		16,339
Tampa	18,797		—		18,797
Other markets	6,669		—		6,669
Total segment revenues	198,530		2,190		200,720
Less: Company's share of rental property revenues from unconsolidated joint ventures	(1,812)		(479)		(2,291)
Total rental property revenues	$	196,718	$	1,711	$	198,429

Three Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	70,708	$	461	$	71,169
Austin	64,522		—		64,522
Charlotte	14,343		1,316		15,659
Dallas	4,240		—		4,240
Phoenix	15,135		—		15,135
Tampa	18,229		—		18,229
Other markets	7,476		1,419		8,895
Total segment revenues	194,653		3,196		197,849
Less: Company's share of rental property revenues from unconsolidated joint ventures	(2,514)		(1,880)		(4,394)
Total rental property revenues	$	192,139	$	1,316	$	193,455

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Revenues:
Atlanta	$	221,149	$	1,405	$	222,554
Austin	198,294		—		198,294
Charlotte	43,831		5,253		49,084
Dallas	12,692		—		12,692
Phoenix	50,142		—		50,142
Tampa	56,286		—		56,286
Other markets	20,027		—		20,027
Total segment revenues	602,421		6,658		609,079
Less: Company's share of rental property revenues from unconsolidated joint ventures	(5,215)		(1,405)		(6,620)
Total rental property revenues	$	597,206	$	5,253	$	602,459

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Revenues:
Atlanta	$	207,582	$	1,323	$	208,905
Austin	184,800		—		184,800
Charlotte	41,776		3,604		45,380
Dallas	12,568		—		12,568
Phoenix	42,098		—		42,098
Tampa	52,369		—		52,369
Other markets	22,423		3,957		26,380
Total segment revenues	563,616		8,884		572,500
Less: Company's share of rental property revenues from unconsolidated joint ventures	(7,364)		(5,280)		(12,644)
Total rental property revenues	$	556,252	$	3,604	$	559,856

Reconciliation of NOI to Net Income Available to Common Stockholders

NOI by reportable segment for the three and nine months ended September 30, 2023 and 2022 are as follows ($ in thousands):

Three Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	48,806	$	316	$	49,122
Austin	43,376		—		43,376
Charlotte	10,947		1,150		12,097
Dallas	3,235		—		3,235
Phoenix	11,950		—		11,950
Tampa	11,444		—		11,444
Other markets	3,660		—		3,660
Total Net Operating Income	$	133,418	$	1,466	$	134,884

Three Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	46,678	$	280	$	46,958
Austin	39,564		—		39,564
Charlotte	10,587		935		11,522
Dallas	3,197		—		3,197
Phoenix	11,145		—		11,145
Tampa	11,254		—		11,254
Other markets	4,879		881		5,760
Total Net Operating Income	$	127,304	$	2,096	$	129,400

Nine Months Ended September 30, 2023	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	144,564	$	870	$	145,434
Austin	126,179		—		126,179
Charlotte	32,473		3,475		35,948
Dallas	9,678		—		9,678
Phoenix	33,973		—		33,973
Tampa	34,816		—		34,816
Other markets	10,836		—		10,836
Total Net Operating Income	$	392,519	$	4,345	$	396,864

Nine Months Ended September 30, 2022	Office		Non-Office		Total
Net Operating Income:
Atlanta	$	137,357	$	765	$	138,122
Austin	112,496		—		112,496
Charlotte	30,845		2,549		33,394
Dallas	9,696		—		9,696
Phoenix	29,988		—		29,988
Tampa	32,588		—		32,588
Other markets	13,319		2,455		15,774
Total Net Operating Income	$	366,289	$	5,769	$	372,058

The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net Income	$	19,491	$	80,769	$	64,924	$	143,096
Fee income	(318)		(1,677)		(1,044)		(5,370)
Termination fee income	(271)		(242)		(6,977)		(2,153)
Other income	(101)		(38)		(2,393)		(2,522)
General and administrative expenses	8,336		6,498		24,795		21,557
Interest expense	27,008		18,380		78,010		50,454
Depreciation and amortization	79,492		79,116		235,531		219,721
Reimbursed expenses	149		418		515		1,455
Other expenses	623		231		1,484		877
Income from unconsolidated joint ventures	(582)		(634)		(2,008)		(7,038)
Net operating income from unconsolidated joint ventures	1,564		2,819		4,532		8,080
Gain on sales of investments in unconsolidated joint ventures	—		(56,260)		—		(56,260)
Loss (gain) on investment property transactions	(507)		20		(505)		61
Loss on extinguishment of debt	—		—		—		100
Net Operating Income	$	134,884	$	129,400	$	396,864	$	372,058

XML

Description of Business and Basis of Presentation (Details) ft² in Thousands	9 Months Ended
	Sep. 30, 2023 ft²
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Distribution of taxable income to qualify as REIT, percentage	100.00%
Portfolio of real estate assets, office space area	18,800
Portfolio of real estate assets, retail space area	310
CPLP
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percentage of partnership units owned by the company (more than)	99.00%

XML

Real Estate (Details) - Sold - Atlanta Land $ in Thousands	1 Months Ended
	Sep. 30, 2023 USD ($) a
Business Acquisition [Line Items]
Area of property | a	10.4
Sales price	$ 4,250
Gain (loss) from sale of property	$ 507

XML

Investment in Unconsolidated Joint Ventures - Summary of Financial Position and Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	May 31, 2023	Dec. 31, 2022
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	$ 7,585,309		$ 7,585,309			$ 7,537,016
Total Equity (Deficit)	4,554,711		4,554,711			4,625,664
Income Statement [Abstract]
Total Revenues	198,848	$ 195,170	605,896	$ 567,748
Net Income (Loss)	19,361	$ 80,639	64,178	142,675
Equity Method Investment, Nonconsolidated Investee or Group of Investees
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	566,477		566,477			433,822
Total Debt	282,936		282,936			178,796
Total Equity (Deficit)	250,217		250,217			232,702
Company's Investment	110,564		110,564			93,666
Income Statement [Abstract]
Total Revenues			18,406	37,184
Net Income (Loss)			5,847	13,448
Company's Income from Investment			2,008	7,038
AMCO 120 WT Holdings, LLC
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	80,362		80,362			81,136
Total Debt	0		0			0
Total Equity (Deficit)	79,203		79,203			80,509
Company's Investment	14,526		14,526			14,856
Income Statement [Abstract]
Total Revenues			8,337	8,005
Net Income (Loss)			2,698	2,335
Company's Income from Investment			537	454
Crawford Long - CPI, LLC
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	22,435		22,435			22,857
Total Debt	82,296		82,296		$ 83,000	62,856
Total Equity (Deficit)	(62,593)		(62,593)			(39,691)
Company's Investment	(30,686)		(30,686)			(19,173)
Interest rate					4.80%
Income Statement [Abstract]
Total Revenues			9,754	9,811
Net Income (Loss)			2,911	3,419
Company's Income from Investment			1,352	1,603
Neuhoff Holdings LLC
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	455,070		455,070			321,338
Total Debt	200,640		200,640			115,940
Total Equity (Deficit)	225,130		225,130			177,734
Company's Investment	$ 122,391		122,391			93,647
Income Statement [Abstract]
Total Revenues			105	107
Net Income (Loss)			59	79
Company's Income from Investment			$ 30	39
Neuhoff Holdings LLC | Minimum
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Interest rate	3.60%		3.60%
Neuhoff Holdings LLC | SOFR
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Basis spread on variable rate			3.45%
Neuhoff Holdings LLC | Construction Loan
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Maximum borrowing capacity	$ 312,700		$ 312,700
715 Ponce Holdings LLC
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	8,610		8,610			8,333
Total Debt	0		0			0
Total Equity (Deficit)	8,477		8,477			8,332
Company's Investment	4,333		4,333			4,261
Income Statement [Abstract]
Total Revenues			210	220
Net Income (Loss)			145	156
Company's Income from Investment			72	78
Carolina Square Holdings LP
Income Statement [Abstract]
Total Revenues			0	12,140
Net Income (Loss)			48	600
Company's Income from Investment			24	215
HICO Victory Center LP
Equity Method Investment Summarized Financial Information Financial Position [Abstract]
Total Assets	0		0			158
Total Debt	0		0			0
Total Equity (Deficit)	0		0			5,818
Company's Investment	$ 0		0			$ 75
Income Statement [Abstract]
Total Revenues			0	6,873
Net Income (Loss)			(14)	6,871
Company's Income from Investment			(7)	4,546
Other
Income Statement [Abstract]
Total Revenues			0	28
Net Income (Loss)			0	(12)
Company's Income from Investment			$ 0	$ 103

XML

Investment in Unconsolidated Joint Ventures - Narrative (Details) $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended
	May 31, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($) a	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Schedule of Equity Method Investments [Line Items]
Gain on sales of investments in unconsolidated joint ventures				$ 0	$ 56,260	$ 0	$ 56,260
Carolina Square Holdings LP
Schedule of Equity Method Investments [Line Items]
Ownership percentage of partner in joint venture		50.00%			50.00%		50.00%
Gross purchase price		$ 105,000
Gain on sales of investments in unconsolidated joint ventures		$ 56,300
Sold | Uptown Dallas Land
Schedule of Equity Method Investments [Line Items]
Area of property | a			3.0
Sales price			$ 23,100
Gain (loss) from sale of property			$ 4,500
Crawford Long - CPI, LLC
Schedule of Equity Method Investments [Line Items]
Amount repay in full	$ 62,400
Debt	$ 83,000			$ 82,296		$ 82,296		$ 62,856
Interest Rate	4.80%

XML

Intangible Assets and Liabilities - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 1,674	$ 1,674
Total intangible assets	116,092	136,240
In-Place  Leases
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	132,411	131,021
Finite-lived intangible assets, net	84,762	102,080
Below-Market Ground Leases
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	2,160	1,860
Finite-lived intangible assets, net	17,092	17,393
Above-Market Leases
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	24,273	25,085
Finite-lived intangible assets, net	$ 12,564	$ 15,093

XML

Intangible Assets and Liabilities - Intangible Liabilities (Details) - Below-Market Leases - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (49,540)	$ (48,994)
Finite-lived intangible liabilities, net	$ 44,295	$ 52,280

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Intangible Assets and Liabilities - Amortization of Asset and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Below-Market Leases, Above-Market Leases
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below market leases	$ 1,371	$ 1,538	$ 5,455	$ 4,979
In-Place  Leases
Finite-Lived Intangible Assets [Line Items]
Depreciation and amortization (In-place leases)	4,849	7,274	17,319	21,664
Below-Market Ground Leases
Finite-Lived Intangible Assets [Line Items]
Amortization of above and below market leases	$ 100	$ 100	$ 300	$ 310

XML

Intangible Assets and Liabilities - Intangibles - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Below-Market Leases
Future Amortization of Intangible Liabilities:
2023 (three months)	$ (2,104)
2024	(8,234)
2025	(7,728)
2026	(6,509)
2027	(4,973)
Thereafter	(14,747)
Finite-lived intangible liabilities, net	(44,295)	$ (52,280)
In-Place  Leases
Future Amortization of Intangible Assets:
2023 (three months)	4,531
2024	17,069
2025	14,782
2026	12,382
2027	9,799
Thereafter	26,199
Finite-lived intangible assets, net	84,762	102,080
Below-Market Ground Leases
Future Amortization of Intangible Assets:
2023 (three months)	100
2024	400
2025	400
2026	400
2027	400
Thereafter	15,392
Finite-lived intangible assets, net	17,092	17,393
Above-Market Leases
Future Amortization of Intangible Assets:
2023 (three months)	646
2024	2,425
2025	2,119
2026	1,726
2027	1,317
Thereafter	4,331
Finite-lived intangible assets, net	$ 12,564	$ 15,093

XML

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Predevelopment costs	$ 55,562	$ 50,009
Prepaid expenses and other assets	13,961	6,438
Accumulated depreciation of furniture, fixtures and equipment, leasehold improvements, and other deferred costs	18,994	18,860
Furniture, fixtures and equipment and other deferred costs, net of accumulated depreciation of $18,994 and $18,860 in 2023 and 2022, respectively	10,586	11,824
Accumulated amortization of lease inducements	5,740	5,129
Lease inducements, net of accumulated amortization of $5,740 and $5,129 in 2023 and 2022, respectively	8,117	8,091
Accumulated amortization of line of credit deferred financing costs	1,809	135
Credit Facility deferred financing costs, net of accumulated amortization of $1,809 and $135 in 2023 and 2022, respectively	4,594	5,550
Total other assets	$ 92,820	$ 81,912

XML

Notes Payable - Terms of Notes Payable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Apr. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Notes payable, gross	$ 2,423,563		$ 2,341,841
Unamortized loan costs	(5,160)		(7,235)
Total Notes Payable	$ 2,418,403		2,334,606
Weighted average maturity of notes payable	3 years 3 months 18 days
Unsecured Notes
Debt Instrument [Line Items]
Notes payable, gross	$ 1,894,500		1,806,600
Credit Facility
Debt Instrument [Line Items]
Interest Rate	6.31%
Notes payable, gross	$ 144,500		56,600
Term Loan | Term Loan Unsecured Due 2025
Debt Instrument [Line Items]
Notes payable, gross	$ 400,000		400,000
Term Loan | Term Loan Unsecured Due 2025
Debt Instrument [Line Items]
Interest Rate	5.45%
Term Loan | Term Loan Unsecured Due 2025
Debt Instrument [Line Items]
Interest Rate	6.46%
Term Loan | Term Loan Unsecured Due 2024
Debt Instrument [Line Items]
Interest Rate	5.38%
Notes payable, gross	$ 350,000		350,000
Senior Note
Debt Instrument [Line Items]
Debt amount	$ 1,000,000
Senior Note | Senior Note, Unsecured Due 2029
Debt Instrument [Line Items]
Interest Rate	3.95%
Notes payable, gross	$ 275,000		275,000
Debt amount	$ 275,000
Senior Note | Senior Note, Unsecured Due 2025
Debt Instrument [Line Items]
Interest Rate	3.91%
Notes payable, gross	$ 250,000		250,000
Debt amount	$ 250,000
Senior Note | Senior Note, Unsecured Due 2028
Debt Instrument [Line Items]
Interest Rate	3.86%
Notes payable, gross	$ 250,000		250,000
Debt amount	$ 250,000
Senior Note | Senior Note, Unsecured Due 2027
Debt Instrument [Line Items]
Interest Rate	3.78%
Notes payable, gross	$ 125,000		125,000
Debt amount	$ 125,000
Senior Note | Senior Note, Unsecured Due 2027
Debt Instrument [Line Items]
Interest Rate	4.09%
Notes payable, gross	$ 100,000		100,000
Debt amount	100,000
Secured Mortgage Notes
Debt Instrument [Line Items]
Notes payable, gross	$ 529,063		535,241
Secured Mortgage Notes | Terminus
Debt Instrument [Line Items]
Interest Rate	6.34%
Notes payable, gross	$ 221,000		221,000
Secured Mortgage Notes | Terminus 100
Debt Instrument [Line Items]
Notes payable, gross	123,000
Secured Mortgage Notes | Terminus 200
Debt Instrument [Line Items]
Notes payable, gross	$ 98,000
Secured Mortgage Notes | Fifth Third Center
Debt Instrument [Line Items]
Interest Rate	3.37%
Notes payable, gross	$ 127,464		130,168
Secured Mortgage Notes | Colorado Tower
Debt Instrument [Line Items]
Interest Rate	3.45%
Notes payable, gross	$ 107,543		109,552
Secured Mortgage Notes | Domain 10
Debt Instrument [Line Items]
Interest Rate	3.75%
Notes payable, gross	$ 73,056		$ 74,521
Term Loan | 2025 Term Loan
Debt Instrument [Line Items]
Debt amount		$ 400,000
Term Loan | 2025 Term Loan | Interest Rate Swap
Debt Instrument [Line Items]
Debt amount		$ 200,000

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Notes Payable - Credit Facility (Details) - Credit Facility $ in Millions		4 Months Ended	9 Months Ended
	May 02, 2022 USD ($)	May 01, 2022 USD ($)	Sep. 30, 2023 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,000.0	$ 1,000.0
Variable rate	1.00%
Facility fee percentage			0.15%
Available borrowing capacity			$ 855.5
Minimum fixed charge coverage ratio	1.50
Adjusted SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.10%
SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.90%
Federal Funds Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Term SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.05%
Maximum
Line of Credit Facility [Line Items]
Secured leverage ratio	50.00%
Facility fee percentage	0.30%
Leverage ratio	60.00%
Maximum | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.40%
Maximum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.40%
Minimum
Line of Credit Facility [Line Items]
Facility fee percentage	0.15%
Minimum unencumbered interest coverage ratio	1.75
Minimum | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.90%
Minimum | Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.00%

XML

Notes Payable - Term Loan (Details) - Term Loan $ in Millions				9 Months Ended
	Oct. 03, 2022 USD ($) extension	Sep. 19, 2022	Jun. 28, 2021 USD ($) extension	Sep. 30, 2023	Apr. 19, 2023 USD ($)	Sep. 27, 2022 USD ($)
2022 Term Loan
Debt Instrument [Line Items]
Debt amount	$ 400				$ 400
Number of extension options | extension	4
Extension term	6 months
2022 Term Loan | Interest Rate Swap
Debt Instrument [Line Items]
Debt amount					$ 200
2022 Term Loan | Interest Rate Swap | SOFR
Debt Instrument [Line Items]
Fixed swap rate					4.298%
Term Loan
Debt Instrument [Line Items]
Debt amount			$ 350
Number of extension options | extension			4
Extension term			180 days
Variable rate		1.00%
Term Loan | Adjusted SOFR
Debt Instrument [Line Items]
Basis spread on variable rate		0.10%
Term Loan | Eurodollar | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		1.05%
Term Loan | Eurodollar | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		1.65%
Term Loan | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Term Loan | Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%		1.05%
Term Loan | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate		0.05%
Term Loan | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate		0.65%
Term Loan | Interest Rate Swap
Debt Instrument [Line Items]
Debt amount						$ 350
Term Loan | Interest Rate Swap | SOFR
Debt Instrument [Line Items]
Fixed swap rate						4.234%

XML

Notes Payable - Unsecured Senior Notes (Details) - Unsecured Senior Notes $ in Millions	Sep. 30, 2023 USD ($) tranche	May 02, 2022
Debt Instrument [Line Items]
Debt amount	$ 1,000
Number of tranches | tranche	5
Maximum
Debt Instrument [Line Items]
Leverage ratio		40.00%
4.09% Senior Notes, Unsecured
Debt Instrument [Line Items]
Debt amount	$ 100
Interest rate	4.09%
3.91% Senior Notes, Unsecured
Debt Instrument [Line Items]
Debt amount	$ 250
Interest rate	3.91%
3.78% Senior Notes, Unsecured
Debt Instrument [Line Items]
Debt amount	$ 125
Interest rate	3.78%
3.86% Senior Notes, Unsecured
Debt Instrument [Line Items]
Debt amount	$ 250
Interest rate	3.86%
3.95% Senior Notes, Unsecured
Debt Instrument [Line Items]
Debt amount	$ 275
Interest rate	3.95%

XML

Notes Payable - Secured Mortgage Notes (Details) $ in Thousands	Sep. 30, 2023 USD ($) debt_instrument	Dec. 31, 2022 USD ($) property	Nov. 30, 2022 USD ($)	Oct. 31, 2022 USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 2,423,563	$ 2,341,841
Secured Mortgage Notes
Debt Instrument [Line Items]
Long-term debt	529,063	$ 535,241
Terminus Properties In Atlanta | Secured Mortgage Notes
Debt Instrument [Line Items]
Number of real estate properties | property		2
Long-term debt		$ 221,000	$ 178,900
Interest Rate		6.34%
Weighted average rate		4.67%
Legacy Union One | Secured Mortgage Notes
Debt Instrument [Line Items]
Long-term debt				$ 66,000
Interest Rate				4.24%
Promenade Tower | Secured Mortgage Notes
Debt Instrument [Line Items]
Long-term debt				$ 86,300
Interest Rate				4.27%
Properties, Excluding Terminus | Secured Mortgage Notes
Debt Instrument [Line Items]
Long-term debt	$ 529,100
Number of non-recourse mortgage loans | debt_instrument	5
Collateral amount	$ 894,300

XML

Notes Payable - Other Debt Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Debt Disclosure [Abstract]
Notes payable, fair value	$ 2,200,000		$ 2,200,000		$ 2,200,000
Total interest incurred	31,180	$ 22,406	92,278	$ 61,522
Interest capitalized	(4,172)	(4,026)	(14,268)	(11,068)
Total interest expense	$ 27,008	$ 18,380	$ 78,010	$ 50,454

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Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Apr. 19, 2023	Dec. 31, 2022	Oct. 03, 2022	Sep. 27, 2022	Jun. 28, 2021
2022 Term Loan | Term Loan
Derivative [Line Items]
Debt amount		$ 400.0		$ 400.0
2022 Term Loan | Interest Rate Swap
Derivative [Line Items]
Fair value of derivative	$ 2.3
2022 Term Loan | Interest Rate Swap | Term Loan
Derivative [Line Items]
Debt amount		$ 200.0
2022 Term Loan | Interest Rate Swap | Term Loan | SOFR
Derivative [Line Items]
Fixed swap rate		4.298%
Term Loan | Term Loan
Derivative [Line Items]
Debt amount						$ 350.0
Term Loan | Interest Rate Swap | Term Loan
Derivative [Line Items]
Debt amount					$ 350.0
Term Loan | Interest Rate Swap | Term Loan | SOFR
Derivative [Line Items]
Fixed swap rate					4.234%
2021 Term Loan | Interest Rate Swap
Derivative [Line Items]
Fair value of derivative	$ 3.5		$ 1.8

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Derivative Financial Instruments - Schedule of Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Amount of income (loss) recognized in accumulated other comprehensive income on interest rate derivatives	$ 1,503	$ (715)	$ 6,397	$ (715)
Amount of loss (income) reclassified from accumulated other comprehensive income into income as a reduction of interest expense	(1,345)	63	(2,441)	63
Total amount of interest expense presented in the consolidated statements of operations	$ 27,008	$ 18,380	$ 78,010	$ 50,454

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Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Ground lease liability	$ 53,416	$ 53,129
Prepaid rent	34,684	33,165
Security deposits	14,953	14,635
Restricted stock unit liability	0	1,048
Other liabilities	1,442	1,465
Total other liabilities	$ 104,495	$ 103,442

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Commitments and Contingencies (Details) $ in Millions	Sep. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Outstanding letters of credit and performance bonds	$ 1.3
Future obligations under leases to fund tenant improvements and other future construction obligations	$ 161.7

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Stockholders' Equity (Details) $ / shares in Units, $ in Thousands, shares in Millions			3 Months Ended	9 Months Ended		15 Months Ended
	Jun. 29, 2022 USD ($) $ / shares shares	Apr. 21, 2022 USD ($)	Sep. 30, 2021 USD ($) financial_institution	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) shares
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of participating financial institutions | financial_institution			6
Contributions to unconsolidated joint ventures				$ 28,681	$ 35,193
Issuance of common stock				0	103,120
Dividends owed				49,296	$ 48,459	$ 49,296
HICO Avalon, LLC And HICO Avalon II
Subsidiary, Sale of Stock [Line Items]
Ownership percentage of partner in joint venture		10.00%
Contributions to unconsolidated joint ventures		$ 43,400
Book value of non-controlling interest		$ 15,700
ATM Program
Subsidiary, Sale of Stock [Line Items]
Sale of stock, shares issued (in shares) | shares						2.6
Issuance of common stock						$ 101,400
Payments of stock issuance costs						1,100
Dividends owed				$ 1,700		1,700
Other transaction related costs						$ 900
ATM Program | Common Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction	$ 105,100
Sale of stock, shares issued (in shares) | shares	2.6
Average price (in dollars per share) | $ / shares	$ 39.92
Maximum | ATM Program
Subsidiary, Sale of Stock [Line Items]
Sale of stock, consideration received on transaction			$ 500,000

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Revenue Recognition (Details) ft² in Thousands	1 Months Ended	2 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)	Oct. 26, 2023 USD ($)	Aug. 08, 2023 ft² property	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Revenues			$ 198,848,000	$ 195,170,000	$ 605,896,000	$ 567,748,000
Reduction of revenue related to write-down of net assets associated with lease	$ 1,600,000
Deferred rents receivable			$ 203,561,000		$ 203,561,000				$ 184,043,000
WeWork Inc.
Disaggregation of Revenue [Line Items]
Ownership interest percentage			20.00%		20.00%
WeWork Inc.
Disaggregation of Revenue [Line Items]
Area of property | ft²			33		33			162
Number of real estate properties | property								3
WeWork Inc. | Subsequent Event
Disaggregation of Revenue [Line Items]
Deferred rents receivable							$ 1,200,000
WeWork Inc. | Atlanta Market
Disaggregation of Revenue [Line Items]
Number of real estate properties | property								2
WeWork Inc. | Charlotte Market
Disaggregation of Revenue [Line Items]
Number of real estate properties | property								1
Rental property revenues
Disaggregation of Revenue [Line Items]
Revenues			$ 198,429,000	193,455,000	$ 602,459,000	559,856,000
Variable rental revenue			52,900,000	54,700,000	174,300,000	157,700,000
Rental property revenues | SVB Financial Group
Disaggregation of Revenue [Line Items]
Revenues			2,300,000
Rental property revenues | WeWork Inc.
Disaggregation of Revenue [Line Items]
Revenues					6,500,000
Rental property revenues | WeWork Inc. | Forecast
Disaggregation of Revenue [Line Items]
Revenues		$ 902,000
Fees and other
Disaggregation of Revenue [Line Items]
Revenues			419,000	1,700,000	3,400,000	7,900,000
Fees and other | Norfolk Southern
Disaggregation of Revenue [Line Items]
Revenues			$ 0	$ 1,000,000	$ 0	$ 3,200,000

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Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	$ 2,817	$ 2,217	$ 9,160	$ 7,412
Equity-classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	2,817	2,299	9,099	7,495
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	930	779	2,715	2,348
Market-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	1,095	917	3,954	3,065
Performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	350	179	1,133	863
Director grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	408	385	1,193	1,086
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	34	39	104	133
Liability-classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	0	(82)	61	(83)
Time-vested RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	0	(116)	61	(136)
Dividend equivalent units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense, net of forfeitures	$ 0	$ 34	$ 0	$ 53

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 19,491	$ 80,769	$ 64,924	$ 143,096
Net income available to common stockholders	$ 19,361	$ 80,639	$ 64,178	$ 142,675
Denominator:
Weighted average common shares - basic (in shares)	151,774	151,435	151,692	149,670
Net income per common share — basic (in usd per share)	$ 0.13	$ 0.53	$ 0.42	$ 0.95
Numerator:
Net income	$ 19,491	$ 80,769	$ 64,924	$ 143,096
Net income available for common stockholders before allocation of net income attributable to noncontrolling interests in CPLP	$ 19,365	$ 80,665	$ 64,189	$ 142,713
Denominator:
Weighted average shares — basic (in shares)	151,774	151,435	151,692	149,670
Add:
Weighted average units of CPLP convertible into common shares (in shares)	25	25	25	25
Weighted average common shares - diluted (in shares)	152,048	151,695	152,018	149,946
Net income per common share — diluted (in usd per share)	$ 0.13	$ 0.53	$ 0.42	$ 0.95
RSU
Add:
Potential dilutive common shares - stock options (in shares)	249	235	301	251
CPLP
Numerator:
Net income attributable to other noncontrolling interests	$ (4)	$ (26)	$ (11)	$ (38)
Numerator:
Net income attributable to other noncontrolling interests	(4)	(26)	(11)	(38)
Other Noncontrolling Interests
Numerator:
Net income attributable to other noncontrolling interests	(126)	(104)	(735)	(383)
Numerator:
Net income attributable to other noncontrolling interests	$ (126)	$ (104)	$ (735)	$ (383)

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Consolidated Statements of Cash Flows - Supplemental Information - Supplemental Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Supplemental Cash Flow Elements [Abstract]
Interest paid, net of amounts capitalized	$ 84,205	$ 58,865
Income taxes paid	0	0
Non-Cash Activity:
Common stock dividends declared and accrued	49,296	48,459
Accrued capital expenditures included in accounts payable and accrued expenses	81,707	93,528
Tenant improvements funded by tenants	$ 48,120	$ 56,727

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Reportable Segments - Segment Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total Revenues	$ 198,848	$ 195,170	$ 605,896	$ 567,748
Rental property revenues
Segment Reporting Information [Line Items]
Total Revenues	198,429	193,455	602,459	559,856
Rental property revenues | Office
Segment Reporting Information [Line Items]
Total Revenues	196,718	192,139	597,206	556,252
Rental property revenues | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	1,711	1,316	5,253	3,604
Operating segments | Rental property revenues
Segment Reporting Information [Line Items]
Total Revenues	200,720	197,849	609,079	572,500
Operating segments | Rental property revenues | Office
Segment Reporting Information [Line Items]
Total Revenues	198,530	194,653	602,421	563,616
Operating segments | Rental property revenues | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	2,190	3,196	6,658	8,884
Operating segments | Rental property revenues | Atlanta
Segment Reporting Information [Line Items]
Total Revenues	76,336	71,169	222,554	208,905
Operating segments | Rental property revenues | Atlanta | Office
Segment Reporting Information [Line Items]
Total Revenues	75,857	70,708	221,149	207,582
Operating segments | Rental property revenues | Atlanta | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	479	461	1,405	1,323
Operating segments | Rental property revenues | Austin
Segment Reporting Information [Line Items]
Total Revenues	62,250	64,522	198,294	184,800
Operating segments | Rental property revenues | Austin | Office
Segment Reporting Information [Line Items]
Total Revenues	62,250	64,522	198,294	184,800
Operating segments | Rental property revenues | Austin | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	0	0	0	0
Operating segments | Rental property revenues | Charlotte
Segment Reporting Information [Line Items]
Total Revenues	16,049	15,659	49,084	45,380
Operating segments | Rental property revenues | Charlotte | Office
Segment Reporting Information [Line Items]
Total Revenues	14,338	14,343	43,831	41,776
Operating segments | Rental property revenues | Charlotte | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	1,711	1,316	5,253	3,604
Operating segments | Rental property revenues | Dallas
Segment Reporting Information [Line Items]
Total Revenues	4,280	4,240	12,692	12,568
Operating segments | Rental property revenues | Dallas | Office
Segment Reporting Information [Line Items]
Total Revenues	4,280	4,240	12,692	12,568
Operating segments | Rental property revenues | Dallas | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	0	0	0	0
Operating segments | Rental property revenues | Phoenix
Segment Reporting Information [Line Items]
Total Revenues	16,339	15,135	50,142	42,098
Operating segments | Rental property revenues | Phoenix | Office
Segment Reporting Information [Line Items]
Total Revenues	16,339	15,135	50,142	42,098
Operating segments | Rental property revenues | Phoenix | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	0	0	0	0
Operating segments | Rental property revenues | Tampa
Segment Reporting Information [Line Items]
Total Revenues	18,797	18,229	56,286	52,369
Operating segments | Rental property revenues | Tampa | Office
Segment Reporting Information [Line Items]
Total Revenues	18,797	18,229	56,286	52,369
Operating segments | Rental property revenues | Tampa | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	0	0	0	0
Operating segments | Rental property revenues | Other markets
Segment Reporting Information [Line Items]
Total Revenues	6,669	8,895	20,027	26,380
Operating segments | Rental property revenues | Other markets | Office
Segment Reporting Information [Line Items]
Total Revenues	6,669	7,476	20,027	22,423
Operating segments | Rental property revenues | Other markets | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	0	1,419	0	3,957
Segment reconciling items | Rental property revenues
Segment Reporting Information [Line Items]
Total Revenues	(2,291)	(4,394)	(6,620)	(12,644)
Segment reconciling items | Rental property revenues | Office
Segment Reporting Information [Line Items]
Total Revenues	(1,812)	(2,514)	(5,215)	(7,364)
Segment reconciling items | Rental property revenues | Non-Office
Segment Reporting Information [Line Items]
Total Revenues	$ (479)	$ (1,880)	$ (1,405)	$ (5,280)

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Reportable Segments - Net Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net Operating Income	$ 134,884	$ 129,400	$ 396,864	$ 372,058
Office
Segment Reporting Information [Line Items]
Net Operating Income	133,418	127,304	392,519	366,289
Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	1,466	2,096	4,345	5,769
Atlanta
Segment Reporting Information [Line Items]
Net Operating Income	49,122	46,958	145,434	138,122
Atlanta | Office
Segment Reporting Information [Line Items]
Net Operating Income	48,806	46,678	144,564	137,357
Atlanta | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	316	280	870	765
Austin
Segment Reporting Information [Line Items]
Net Operating Income	43,376	39,564	126,179	112,496
Austin | Office
Segment Reporting Information [Line Items]
Net Operating Income	43,376	39,564	126,179	112,496
Austin | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	0	0	0	0
Charlotte
Segment Reporting Information [Line Items]
Net Operating Income	12,097	11,522	35,948	33,394
Charlotte | Office
Segment Reporting Information [Line Items]
Net Operating Income	10,947	10,587	32,473	30,845
Charlotte | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	1,150	935	3,475	2,549
Dallas
Segment Reporting Information [Line Items]
Net Operating Income	3,235	3,197	9,678	9,696
Dallas | Office
Segment Reporting Information [Line Items]
Net Operating Income	3,235	3,197	9,678	9,696
Dallas | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	0	0	0	0
Phoenix
Segment Reporting Information [Line Items]
Net Operating Income	11,950	11,145	33,973	29,988
Phoenix | Office
Segment Reporting Information [Line Items]
Net Operating Income	11,950	11,145	33,973	29,988
Phoenix | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	0	0	0	0
Tampa
Segment Reporting Information [Line Items]
Net Operating Income	11,444	11,254	34,816	32,588
Tampa | Office
Segment Reporting Information [Line Items]
Net Operating Income	11,444	11,254	34,816	32,588
Tampa | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	0	0	0	0
Other markets
Segment Reporting Information [Line Items]
Net Operating Income	3,660	5,760	10,836	15,774
Other markets | Office
Segment Reporting Information [Line Items]
Net Operating Income	3,660	4,879	10,836	13,319
Other markets | Non-Office
Segment Reporting Information [Line Items]
Net Operating Income	$ 0	$ 881	$ 0	$ 2,455

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Reportable Segments - Reconciliation of Net Income to Net Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net income	$ 19,491	$ 80,769	$ 64,924	$ 143,096
Total Revenues	(198,848)	(195,170)	(605,896)	(567,748)
General and administrative expenses	8,336	6,498	24,795	21,557
Interest expense	27,008	18,380	78,010	50,454
Depreciation and amortization	79,492	79,116	235,531	219,721
Reimbursed expenses	149	418	515	1,455
Other expenses	623	231	1,484	877
Income from unconsolidated joint ventures	(582)	(634)	(2,008)	(7,038)
Net operating income from unconsolidated joint ventures	1,564	2,819	4,532	8,080
Gain on sales of investment in unconsolidated joint ventures	0	(56,260)	0	(56,260)
Loss (gain) on investment property transactions	(507)	20	(505)	61
Loss on extinguishment of debt	0	0	0	100
Net Operating Income	134,884	129,400	396,864	372,058
Fee income
Segment Reporting Information [Line Items]
Total Revenues	(318)	(1,677)	(1,044)	(5,370)
Termination fee income
Segment Reporting Information [Line Items]
Total Revenues	(271)	(242)	(6,977)	(2,153)
Other
Segment Reporting Information [Line Items]
Total Revenues	$ (101)	$ (38)	$ (2,393)	$ (2,522)