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COUSINS PROPERTIES INC - Quarter Report: 2023 March (Form 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 March 31, 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)
Georgia58-0869052
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3344 Peachtree Road NESuite 1800AtlantaGeorgia30326-4802
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1 par value per shareCUZNew 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 filerAccelerated filer
Non-accelerated filerSmaller 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 April 21, 2023
Common Stock, $1 par value per share 151,693,864 shares




Page No.




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.
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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)
March 31, 2023December 31, 2022
 (unaudited) 
Assets:  
Real estate assets: 
Operating properties, net of accumulated depreciation of $1,131,555 and $1,079,662 in 2023 and 2022, respectively
$6,744,701 $6,738,354 
Projects under development119,291 111,400 
Land158,430 158,430 
7,022,422 7,008,184 
Cash and cash equivalents3,585 5,145 
Accounts receivable9,634 8,653 
Deferred rents receivable192,713 184,043 
Investment in unconsolidated joint ventures136,721 112,839 
Intangible assets, net129,838 136,240 
Other assets, net88,057 81,912 
Total assets$7,582,970 $7,537,016 
Liabilities:
Notes payable$2,448,942 $2,334,606 
Accounts payable and accrued expenses205,018 271,103 
Deferred income154,088 128,636 
Intangible liabilities, net 49,831 52,280 
Other liabilities104,055 103,442 
Total liabilities2,961,934 2,890,067 
Commitments and contingencies
Equity:
Stockholders' investment:  
Common stock, $1 par value per share, 300,000,000 shares authorized, 154,255,888 and 154,019,214 issued, and 151,693,864 and 151,457,190 outstanding in 2023 and 2022, respectively
154,256 154,019 
Additional paid-in capital5,631,076 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(1,039,694)(1,013,292)
Accumulated other comprehensive income537 1,767 
 Total stockholders' investment4,599,018 4,625,664 
Nonredeemable noncontrolling interests22,018 21,285 
Total equity4,621,036 4,646,949 
Total liabilities and equity$7,582,970 $7,537,016 
See accompanying notes.
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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; in thousands, except per share amounts)

Three Months Ended
March 31,
 20232022
Revenues:  
Rental property revenues$200,076 $183,227 
Fee income374 1,388 
Other2,278 2,283 
 202,728 186,898 
Expenses:
Rental property operating expenses71,213 64,877 
Reimbursed expenses207 360 
General and administrative expenses8,438 8,063 
Interest expense25,030 15,525 
Depreciation and amortization75,770 70,744 
Other385 221 
181,043 159,790 
Income from unconsolidated joint ventures673 1,124 
Loss on investment property transactions(2)(69)
Net income22,356 28,163 
Net income attributable to noncontrolling interests(160)(179)
Net income available to common stockholders$22,196 $27,984 

 
Net income per common share — basic and diluted$0.15 $0.19 
Weighted average shares — basic151,579 148,739 
Weighted average shares — diluted151,880 149,002 
See accompanying notes.


4



COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited; in thousands)

Three Months Ended
March 31,
 20232022
Comprehensive Income:  
Net income available to common stockholders$22,196 $27,984 
Other comprehensive loss:
Unrealized loss on cash flow hedge(1,041)
Amortization of cash flow hedges(189)
Total other comprehensive loss(1,230)
Total comprehensive income$20,966 $27,984 
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 March 31, 2023
Common
Stock
Additional
Paid-In
Capital
Treasury
Stock
Distributions in
Excess of
Net Income
Accumulated Other Comprehensive IncomeStockholders' InvestmentNonredeemable
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— — — 22,196 — 22,196 160 22,356 
Other comprehensive loss— — — — (1,230)(1,230)— (1,230)
Common stock issued pursuant to stock-based compensation, net of tax withholding239 (2,377)— — — (2,138)— (2,138)
Amortization of stock-based compensation, net of forfeitures(2)3,126 — — — 3,124 — 3,124 
Contributions from noncontrolling interests— — — — — — 738 738 
Distributions to noncontrolling interests— — — — — — (165)(165)
Common dividends ($0.32 per share)
— — — (48,598)— (48,598)— (48,598)
Balance March 31, 2023$154,256 $5,631,076 $(147,157)$(1,039,694)$537 $4,599,018 $22,018 $4,621,036 
Three Months Ended March 31, 2022
Common
Stock
Additional
Paid-In
Capital
Treasury
Stock
Distributions in
Excess of
Net Income
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— — — 27,984 27,984 179 28,163 
Common stock issued pursuant to stock-based compensation, net of tax withholding76 (1,006)— — (930)— (930)
Amortization of stock-based compensation, net of forfeitures— 2,416 — — 2,416 — 2,416 
Contributions from nonredeemable noncontrolling interests— — — — — 1,279 1,279 
Distributions to nonredeemable noncontrolling interests— — — — — (86)(86)
Common dividends ($0.32 per share)
— — — (48,597)(48,597)— (48,597)
Balance March 31, 2022$151,349 $5,550,718 $(148,473)$(1,005,951)$4,547,643 $35,002 $4,582,645 

See accompanying notes.
















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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in thousands)
Three Months Ended March 31,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income $22,356 $28,163 
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on investment property transactions2 69 
Depreciation and amortization75,770 70,744 
Amortization of deferred financing costs and premium on notes payable1,021 51 
Equity-classified stock-based compensation expense, net of forfeitures3,559 2,748 
Effect of non-cash adjustments to rental revenues(11,193)(8,445)
Income from unconsolidated joint ventures(673)(1,124)
Operating distributions from unconsolidated joint ventures1,299 1,924 
Changes in other operating assets and liabilities:
Change in receivables and other assets, net(8,407)(12,029)
Change in operating liabilities, net(57,240)(57,976)
Net cash provided by operating activities26,494 24,125 
CASH FLOWS FROM INVESTING ACTIVITIES:  
Property acquisition, development, and tenant asset expenditures(69,863)(77,779)
Contributions to unconsolidated joint ventures(23,984)(15,686)
Net cash used in investing activities(93,847)(93,465)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Proceeds from credit facility165,000 152,000 
Repayment of credit facility(49,300)(35,500)
Repayment of mortgages(2,041)(4,197)
Payment of deferred financing costs(32)— 
Common dividends paid(48,407)(46,093)
Contributions from noncontrolling interests738 1,279 
Distributions to noncontrolling interests(165)(86)
Net cash provided by financing activities65,793 67,403 
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH(1,560)(1,937)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD5,145 10,168 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD$3,585 $8,231 
See accompanying notes.
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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 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. As of March 31, 2023 and 2022, limited partners owned the remaining 25,000 common units of 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 March 31, 2023, the Company's 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 March 31, 2023 and the results of operations for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 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 thereto included 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 to the 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. At March 31, 2023, the Company had no investments or interests in any VIEs.
2. REAL ESTATE
For the three months ended March 31, 2023 and 2022, the Company had no real estate transactions.
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. 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 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 during any periods presented in the accompanying statement of operations.
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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 March 31, 2023 and December 31, 2022 ($ in thousands).
SUMMARY OF FINANCIAL POSITION
Total AssetsTotal DebtTotal Equity (Deficit)Company's Investment 
2023202220232022202320222023 2022 
Operating Properties:
AMCO 120 WT Holdings, LLC$80,739 $81,136 $ $— $79,916 $80,509 $14,713 $14,856 
Crawford Long - CPI, LLC (1)23,111 22,857 62,406 62,856 (40,697)(39,691)(19,697)(2)(19,173)(2)
Under Development:
Neuhoff Holdings LLC (3)391,658 321,338 129,622 115,940 222,390 177,734 117,618 93,647 
Land:
715 Ponce Holdings LLC8,391 8,333  — 8,377 8,332 4,311 4,261 
Sold and Other:
HICO Victory Center LP158 158  — 5,818 5,818 79 75 
$504,057 $433,822 $192,028 $178,796 $275,804 $232,702 $117,024 $93,666 

(1) Subsequent to quarter end, Crawford Long - CPI, LLC executed a loan application for its Medical Offices at Emory Hospital property. This $83.0 million interest-only mortgage loan will have a 9-year term and a fixed interest rate of 4.80%. It is expected to close in the second quarter, with the proceeds to be used to pay off the existing $62.4 million mortgage loan maturing June 1, 2023.
(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 $312.7 million that matures September 2025. Effective April 10, 2023, the interest rate on the Neuhoff loan changed from the London Interbank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR") plus 3.45%. The minimum rate is 3.60%.
The information included in the summary of operations table is for the three months ended March 31, 2023 and 2022 ($ in thousands).
SUMMARY OF OPERATIONS
Total RevenuesNet Income (Loss)Company's Income
from Investment
202320222023202220232022
Operating Properties:
AMCO 120 WT Holdings, LLC$2,701 $2,565 $780 $692 $155 $134 
Crawford Long - CPI, LLC 3,079 3,178 994 1,116 462 523 
Under Development:
Neuhoff Holdings LLC24 25 10 21 5 10 
Land:
715 Ponce Holdings LLC67 55 45 36 23 18 
Sold and Other:
Carolina Square Holdings LP 4,089 48 724 24 334 
HICO Victory Center LP92 19 6,735 19 4 
Other  (2) (41) 99 
$5,963 $9,929 $8,612 $2,567 $673 $1,124 


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4. INTANGIBLE ASSETS AND LIABILITIES
At March 31, 2023 and December 31, 2022, intangible assets included the following ($ in thousands):
20232022
In-place leases, net of accumulated amortization of $130,667 and $131,021
in 2023 and 2022, respectively
$96,668 $102,080 
Below-market ground leases, net of accumulated amortization of $1,960 and
$1,860 in 2023 and 2022, respectively
17,293 17,393 
Above-market leases, net of accumulated amortization of $24,624 and $25,085
in 2023 and 2022, respectively
14,203 15,093 
      Goodwill1,674 1,674 
$129,838 $136,240 

At March 31, 2023 and December 31, 2022, intangible liabilities included the following ($ in thousands):
20232022
Below-market leases, net of accumulated amortization of $49,506 and $48,994 in 2023 and 2022, respectively
$49,831 $52,280 


Aggregate net amortization expense related to intangible assets and liabilities for the three months ended March 31, 2023 and 2022 was $3.9 million and $5.6 million, respectively. Over the next five years and thereafter, aggregate amortization of these intangible assets and liabilities is anticipated to be as follows ($ in thousands):
In-Place 
Leases
Below-Market Ground LeasesAbove-Market LeasesBelow-Market
Leases
2023 (nine months)$15,428 $300 $2,414 $(7,006)
202418,301 400 2,673 (8,739)
202515,324 400 2,106 (7,956)
202612,275 400 1,673 (6,506)
20279,684 400 1,252 (4,973)
Thereafter25,656 15,393 4,085 (14,651)
$96,668 $17,293 $14,203 $(49,831)









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5. OTHER ASSETS
Other assets on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 included the following ($ in thousands):
20232022
Predevelopment costs $51,556 $50,009 
Prepaid expenses and other assets11,781 6,438 
Furniture, fixtures and equipment and other deferred costs, net of accumulated depreciation of $18,412 and $18,860 in 2023 and 2022, respectively
11,467 11,824 
Lease inducements, net of accumulated amortization of $5,615 and $5,129 in 2023 and 2022, respectively
8,014 8,091 
Credit Facility deferred financing costs, net of accumulated amortization of $1,167 and $135 in 2023 and 2022, respectively
5,239 5,550 
$88,057 $81,912 
Predevelopment costs represent amounts that are capitalized related to predevelopment projects that the Company determined are probable of future development.
Lease inducements are incentives paid to tenants in conjunction with leasing space, such as moving costs, sublease arrangements of prior space, and other costs. These amounts are amortized into rental revenues over the individual underlying lease terms.
6. NOTES PAYABLE
The following table summarizes the terms of notes payable outstanding at March 31, 2023 and December 31, 2022 ($ in thousands):
DescriptionInterest Rate (1)Maturity (2)20232022
Unsecured Notes:
Credit Facility5.80%April 2027$172,300 $56,600 
Term Loan5.95%March 2025400,000 400,000 
Term Loan5.38%August 2024350,000 350,000 
Senior Note3.95%July 2029275,000 275,000 
Senior Note3.91%July 2025250,000 250,000 
Senior Note3.86%July 2028250,000 250,000 
Senior Note3.78%July 2027125,000 125,000 
Senior Note4.09%July 2027100,000 100,000 
1,922,300 1,806,600 
Secured Mortgage Notes:
Terminus (3)6.34%January 2031221,000 221,000 
Fifth Third Center 3.37%October 2026129,276 130,168 
Colorado Tower3.45%September 2026108,888 109,552 
Domain 103.75%November 202474,037 74,521 
533,201 535,241 
   $2,455,501 $2,341,841 
Unamortized loan costs(6,559)(7,235)
Total Notes Payable$2,448,942 $2,334,606 

(1) Interest rate as of March 31, 2023.
(2) Weighted average maturity of notes payable outstanding at March 31, 2023 was 3.8 years.
(3) Represents $123.0 million and $98.0 million non-cross-collateralized mortgages secured by the Terminus 100 and Terminus 200 buildings, respectively.


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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 recasts the prior facility by, among other things, extending the maturity date from January 3, 2023, to April 30, 2027, and reducing certain per annum variable interest rate spreads and other fees. 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 March 31, 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 $827.7 million at March 31, 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. Subsequent to quarter end, the Company entered into a floating-to-fixed rate swap with respect to $200 million of the $400 million 2022 Term Loan effective April 19, 2023 through the maturity date of March 3, 2025. This swap fixed the underlying SOFR rate at 4.298%.
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%. Please see note 7 for more information on this cash flow hedge.
At March 31, 2023, the 2021 and 2022 Term Loan's spread over Adjusted SOFR rate 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.

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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, and the interest rate is now 6.34%. These mortgages are not cross-collateralized nor cross-defaulted.
In October 2022, the Company paid off, in full, its Legacy Union One and Promenade Tower mortgages.
As of March 31, 2023, the Company had $533.2 million outstanding on five non-recourse mortgage notes. All interest rates on the secured mortgage notes are fixed. Assets with depreciated carrying values of $902.2 million were 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 March 31, 2023 and December 31, 2022, the estimated fair value of the Company’s notes payable was $2.3 billion and $2.2 billion, respectively, calculated by discounting the debt's remaining contractual cash flows at estimated current market rates at which similar loans could have been obtained at March 31, 2023 and December 31, 2022. The estimate of the current market rates, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. These fair value calculations are considered to be Level 2 under the guidelines as set forth in ASC 820, as the Company utilizes market rates for similar type loans from third party brokers.
For the three months ended March 31, 2023 and 2022, interest expense was recorded as follows ($ in thousands):
Three Months Ended March 31,
20232022
Total interest incurred$30,121 $18,976 
Interest capitalized(5,091)(3,451)
Total interest expense$25,030 $15,525 

7. DERIVATIVE FINANCIAL INSTRUMENTS
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 is exposure to interest rate movements. To accomplish this objective, 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 Term Loan (referred to as a "cash flow hedge").
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 counterparty under this swap is a major financial institution, and the swap contains 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 swap. There are no collateral requirements related to this swap.
As of March 31, 2023 and December 31, 2022, the fair value of this swap was $587,000 and $1.8 million, respectively, and are included in other assets on the Company's consolidated balance sheets.




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The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022 ($ in thousands):
Three Months Ended March 31,
Cash Flow Hedge:20232022
Amount of loss recognized in accumulated other comprehensive income on interest rate derivatives$(1,041)$— 
Amount of loss reclassified from accumulated other comprehensive income into income as interest expense$(189)$— 
Total amount of interest expense presented in the consolidated statements of operations$25,030 $15,525 
The fair value of this hedge is determined using observable inputs other than quoted prices in active markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. These inputs are considered Level 2 inputs in the fair value hierarchy, and the Company engages a third-party expert to determine these inputs. The fair value of the cash flow hedge is determined using the conventional industry methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts made between the Company and its counterparty to the cash flow hedge. These variable cash receipts are based on the expectation of future interest rates which are derived from observed market interest rate curves. In addition, any credit valuation adjustments are considered in the fair values to account for potential nonperformance risk to the extent they would be significant inputs to the calculation. For the periods presented, credit valuation adjustments were not considered to be significant inputs.
8. OTHER LIABILITIES
Other liabilities on the consolidated balance sheets as of March 31, 2023 and December 31, 2022 included the following ($ in thousands):
20232022
Ground lease liability$53,225 $53,129 
Prepaid rent35,262 33,165 
Security deposits13,709 14,635 
Restricted stock unit liability 1,048 
Other liabilities1,859 1,465 
$104,055 $103,442 
9. COMMITMENTS AND CONTINGENCIES
Commitments
The Company had outstanding performance bonds totaling $687,000 at March 31, 2023. As a lessor, the Company had $172.4 million in future obligations under leases to fund tenant improvements and other future construction obligations at March 31, 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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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 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 quarters ended March 31, 2023 or 2022 and did not have any outstanding Forward Sales contracts for the sale of its common stock as of March 31, 2023.
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 months ended March 31, 2023, the Company recognized rental property revenues of $200.1 million, of which $59.1 million represented variable rental revenue. For the three months ended March 31, 2022, the Company recognized rental property revenues of $183.2 million, of which $52.8 million represented variable rental revenue.
For the three months ended March 31, 2023, the Company recognized fee and other revenue of $2.7 million. For the three months ended March 31, 2022, the Company recognized fee and other revenue of $3.7 million. The $3.7 million fee and other revenue includes $814,000 of income 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.
As disclosed in an 8-K filed on March 15, 2023, the Company has a lease with SVB Financial Group ("SVB Financial") at its Hayden Ferry property in Phoenix, Arizona. SVB Financial’s primary subsidiary, SVB Bank, was placed in receivership by the Federal Deposit Insurance Corporation ("FDIC") on March 10, 2023. 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 that it had entered in to an agreement with the FDIC to purchase substantially all of the loans and certain other assets, and to assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. FCB has also indicated that it intends to operate the SVB Bank locations as a division of FCB. SVB Financial is current on the financial obligations of its lease with Cousins through May 2023, and, to date, there has been no rejection of the lease under SVB Financial’s bankruptcy. This lease is projected to generate approximately $700,000 in straight-line revenue, inclusive of parking revenue and reimbursed operating expenses, per month through expiration in January 2026. If, at a date subsequent to the filing of these financial statements, collection under the terms of the lease no longer remains probable, the Company would reserve the net assets associated with the lease at that time. Net assets associated with the lease as of March 31, 2023 were $1.9 million.

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12. STOCK-BASED COMPENSATION
The Company has several types of stock-based compensation — stock options, restricted stock, restricted stock units ("RSUs"), and the Employee Stock Purchase Plan ("ESPP").
The Company's compensation expense for the three months ended March 31, 2023 relates to restricted stock and RSUs awarded in 2023, 2022, 2021, and 2020, and the ESPP. Compensation expense for the three months ended March 31, 2022 relates to restricted stock, 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 months ended March 31, 2023 and 2022, stock-based compensation expense, net of forfeitures, was recorded as follows ($ in thousands):
Three Months Ended March 31,
20232022
Equity-classified awards:
Restricted stock$858 $780 
Market-based RSUs1,751 1,212 
Performance-based RSUs480 372 
Director grants385 332 
Employee Stock Purchase Plan37 52 
Total equity-classified award expense, net of forfeitures3,511 2,748 
Liability-classified awards
Time-vested RSUs61 132 
Dividend equivalent units 15 
Total liability-classified award expense, net of forfeitures61 147 
Total stock-based compensation expense, net of forfeitures$3,572 $2,895 
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.
Grants of Equity-Classified Awards
Under the 2019 Plan, in February 2023, the Company granted three types of equity-classified awards to key employees: (1) RSUs based on the Total Stockholder Return ("TSR") of the Company, as defined in the award documents, relative to that of office peers included in the Nareit Office Index (the "Market-based RSUs"), (2) RSUs based on the ratio of cumulative funds from operations per share to targeted cumulative funds from operations per share (the “Performance-based RSUs”), and (3) restricted stock.
The RSU awards are equity-classified awards to be settled in stock with issuance dependent upon the attainment of required service, market, and performance criteria. For the Market-based RSUs the Company expenses an estimate of the fair value of the awards on the grant date, calculated using a Monte Carlo valuation at grant date, ratably over the vesting period, adjusting only for forfeitures when they occur. The expense of these Market-based RSUs is not adjusted for the number of awards that actually vest. For the Performance-based RSUs, the Company expenses the awards over the vesting period using the grant date fair market value of the Company's stock on the grant date. The expense is recognized ratably over the vesting period and adjusted each quarter based on the number of shares expected to vest and for forfeitures when they occur. The performance period for the Performance-based RSUs and TSR measurement period for the Market-based RSUs awarded is three years starting on January 1 of the year of issuance and ending on December 31. The ultimate settlement of these awards can range from zero percent to 200% of the targeted number of units depending on the achievement of the market and performance metrics described above.
On February 6, 2023, the Company made modifications to its Market-based RSU awards granted in 2022, 2021, and 2020. The modifications were made to clarify the definition of the peer group used to measure TSR award achievement and resulted in $247,000 of compensation expense recorded in February 2023 for the change in fair value on the modification date.
The restricted stock vests ratably over three years from the grant date. The Company records restricted stock in common stock and additional paid-in capital at fair value on the grant date, with the offsetting deferred compensation also recorded in additional paid-in capital. The Company records compensation expense over the vesting period.

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The following table summarizes the grants of equity-classified awards made by the Company in the first quarter of 2023:
Shares and Targeted Units Granted
Market-based RSUs164,430 
Performance-based RSUs70,472 
Restricted stock164,221 
The Monte Carlo valuation used to determine the grant date fair value of the equity-classified Market-based RSUs included the following assumptions for those RSUs granted in the first quarter of 2023:
Assumptions for RSUs Granted
Volatility(1)40.50 %
Risk-free rate(2)4.35 %
Stock beta(3)1.03 %
(1) Based on historical volatility over three years using daily stock price.
(2) Reflects the yield on three-year Treasury bonds as reported by the Federal Reserve in the H.15 release.
(3) Betas are calculated with up to three years of daily stock price data.
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13. EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 ($ in thousands, except per share amounts):
Three Months Ended March 31,
 20232022
Earnings per common share - basic:
Numerator:
      Net income$22,356 $28,163 
Net income attributable to noncontrolling interests in
CPLP from continuing operations
(4)(6)
      Net income attributable to other noncontrolling interests (156)(173)
Net income available to common stockholders$22,196 $27,984 
Denominator:
Weighted average common shares - basic151,579 148,739 
Net income per common share - basic$0.15 $0.19 
Earnings per common share - diluted:
Numerator:
      Net income$22,356 $28,163 
Net income attributable to other noncontrolling interests(156)(173)
Net income available for common stockholders before allocation of net income attributable to noncontrolling interests in CPLP$22,200 $27,990 
Denominator:
Weighted average common shares - basic151,579 148,739 
     Add:
Potential dilutive common shares - restricted stock units,
    less shares assumed purchased at market price
276 238 
Weighted average units of CPLP convertible into
    common shares
25 25 
Weighted average common shares - diluted151,880 149,002 
Net income per common share - diluted$0.15 $0.19 
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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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 three months ended March 31, 2023 and 2022 is as follows ($ in thousands):
20232022
Interest paid $33,219 $24,179 
Income taxes paid — 
Non-Cash Activity:
  Common stock dividends declared and accrued 48,600 48,597 
Tenant improvements recorded in deferred income26,943 1,857 
The following table provides a reconciliation of cash and cash equivalents recorded on the consolidated balance sheets to cash, cash equivalents, and restricted cash in the consolidated statements of cash flows ($ in thousands):

March 31, 2023December 31, 2022
Cash and cash equivalents$3,585 $5,145 
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, other revenue, corporate general and administrative expenses, reimbursed expenses, interest expense, depreciation and amortization, impairments, gains/losses on sales of real estate, gains/losses on extinguishment of debt, transaction costs, and other non-operating items.
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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 months ended March 31, 2023 and 2022 are as follows ($ in thousands):
Three Months Ended March 31, 2023OfficeNon-OfficeTotal
Revenues:
Atlanta$72,132 $457 $72,589 
Austin67,883 — 67,883 
Charlotte14,818 1,761 16,579 
Dallas4,187 — 4,187 
Phoenix15,583 — 15,583 
Tampa18,748 — 18,748 
Other markets6,623 — 6,623 
Total segment revenues199,974 2,218 202,192 
Less: Company's share of rental property revenues from unconsolidated joint ventures(1,659)(457)(2,116)
Total rental property revenues$198,315 $1,761 $200,076 

Three Months Ended March 31, 2022OfficeNon-OfficeTotal
Revenues:
Atlanta$68,014 $423 $68,437 
Austin61,224 — 61,224 
Charlotte13,503 985 14,488 
Dallas4,196 — 4,196 
Phoenix13,430 — 13,430 
Tampa16,924 — 16,924 
Other markets7,328 1,358 8,686 
Total segment revenues184,619 2,766 187,385 
Less: Company's share of rental property revenues from unconsolidated joint ventures(2,377)(1,781)(4,158)
Total rental property revenues$182,242 $985 $183,227 














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NOI by reportable segment for the three months ended March 31, 2023 and 2022 are as follows ($ in thousands):
Three Months Ended March 31, 2023OfficeNon-OfficeTotal
Net Operating Income:
Atlanta$47,389 $270 $47,659 
Austin40,273 — 40,273 
Charlotte10,762 1,162 11,924 
Dallas3,225 — 3,225 
Phoenix11,773 — 11,773 
Tampa11,711 — 11,711 
Other markets3,571 — 3,571 
Total Net Operating Income$128,704 $1,432 $130,136 

Three Months Ended March 31, 2022OfficeNon-OfficeTotal
Net Operating Income:
Atlanta$44,173 $235 $44,408 
Austin36,367 — 36,367 
Charlotte10,011 643 10,654 
Dallas3,308 — 3,308 
Phoenix8,975 — 8,975 
Tampa10,691 — 10,691 
Other markets4,295 909 5,204 
Total Net Operating Income$117,820 $1,787 $119,607 




















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The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):
Three Months Ended March 31,
 20232022
Net Income$22,356 $28,163 
Net operating income from unconsolidated joint ventures1,409 2,719 
Fee income(374)(1,388)
Termination fee income(136)(1,462)
Other income(2,278)(2,283)
Reimbursed expenses207 360 
General and administrative expenses8,438 8,063 
Interest expense25,030 15,525 
Depreciation and amortization75,770 70,744 
Other expenses385 221 
Income from unconsolidated joint ventures(673)(1,124)
Loss on investment property transactions2 69 
Net Operating Income$130,136 $119,607 


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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 258,000 square feet of office space. Straight-line basis net rent per square foot increased 20.1% 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 three months ended March 31, 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. Although difficult to estimate, we currently expect usage will gradually increase throughout the remainder of 2023, and this is expected to result in increases in parking revenue as well as increases in certain operating expenses. 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 Months Ended March 31, 2023
General
Net income available to common stockholders for the three months ended March 31, 2023 was $22.2 million. For the three months ended March 31, 2022, the net income available to common stockholders was $28.0 million. We detail below material changes in the components of net income available to common stockholders for the three months ended March 31, 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 stabilized property is one that has achieved 90% economic occupancy or has been substantially complete and owned by us for one year. Same Property amounts for the 2023 versus 2022 comparison are from properties that were stabilized and owned as of January 1, 2022 through March 31, 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.




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Rental property revenues, rental property operating expenses, and NOI changed between the 2023 and 2022 periods as follows ($ in thousands):
Three Months Ended March 31,
20232022$ Change% Change
Rental Property Revenues
Same Property$189,676 $178,341 $11,335 6.4 %
Non-Same Property10,264 3,424 6,840 199.8 %
199,940 181,765 18,175 10.0 %
Termination Fee Income136 1,462 (1,326)(90.7)%
Total Rental Property Revenues$200,076 $183,227 $16,849 9.2 %
Rental Property Operating Expenses
Same Property$68,766 $63,681 $5,085 8.0 %
Non-Same Property2,447 1,196 1,251 104.6 %
Total Rental Property Operating Expenses$71,213 $64,877 $6,336 9.8 %
Net Operating Income
Same Property NOI$120,910 $114,660 $6,250 5.5 %
Non-Same Property NOI7,817 2,228 5,589 250.9 %
Total NOI$128,727 $116,888 $11,839 10.1 %
Same Property Rental Property Revenues increased for the three months ended March 31, 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.
Same Property Operating Expenses increased for the three months ended March 31, 2023 compared to the same period in the prior year primarily due to increases in real estate tax expense and an increase in expenses related to inflation and higher physical occupancy at our properties.
Non-Same Property Rental Property Revenues, operating expenses, and NOI increased for the three months ended March 31, 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.
Termination Fee income decreased $1.3 million for the three months ended March 31, 2023 compared to the same period in the prior year due to the timing of termination notices and expected move outs.
Fee Income
Fee income decreased $1.0 million, or 73.1%, for the three months ended March 31, 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 $9.5 million, or 61.2%, for the three months ended March 31, 2023, compared to the same period in the prior year. This increase is primarily due to the issuance of the 2022 Term Loan in in October of 2022, increases in the interest rates on other variable rate debt, and an increase in average outstanding balance on our line of credit, partially offset by an increase in capitalized expense as a result of development and redevelopment activities, and repayment of two mortgages in October 2022.










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Depreciation and Amortization
Depreciation and amortization changed between the 2023 and 2022 periods as follows ($ in thousands):
Three Months Ended March 31,
20232022$ Change% Change
Depreciation and Amortization
Same Property$71,084 $68,705 $2,379 3.5 %
Non-Same Property4,578 1,884 2,694 143.0 %
Non-Real Estate Assets108 155 (47)(30.3)%
Total Depreciation and Amortization$75,770 $70,744 $5,026 7.1 %

Non-Same Property depreciation and amortization increased between the 2023 and 2022 three month periods 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 March 31,
20232022$ Change% Change
Income from unconsolidated joint ventures$673 $1,124 $(451)(40.1)%
Depreciation and amortization479 1,124 (645)(57.4)%
Net gain on sale of investment property (124)124 (100.0)%
Interest expense280 617 (337)(54.6)%
Other expense14 11 27.3 %
Other income(37)(33)(4)12.1 %
Net operating income from unconsolidated joint ventures$1,409 $2,719 $(1,310)(48.2)%
Net operating income:
Same Property1,110 1,178 (68)(5.8)%
Non-Same Property299 1,541 (1,242)(80.6)%
Net operating income from unconsolidated joint ventures$1,409 $2,719 $(1,310)(48.2)%
Income from unconsolidated joint ventures decreased between the 2023 and 2022 three month periods primarily due to the decrease in net operating 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.
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.
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The reconciliation of net income to FFO is as follows for the three months ended March 31, 2023 and 2022 ($ in thousands, except per share information):
 Three Months Ended March 31,
20232022
DollarsWeighted Average Common SharesPer Share AmountDollarsWeighted Average Common SharesPer Share Amount
Net Income Available to Common Stockholders$22,196 151,579$0.15 $27,984 148,739 $0.19 
Noncontrolling interest related to unitholders 4 25 25 — 
Conversion of unvested restricted stock units 276 — 238 — 
Net Income — Diluted 22,200 151,8800.15 27,990 149,002 0.19 
Depreciation and amortization of real estate assets:
Consolidated properties75,662  0.50 70,589 — 0.47 
Share of unconsolidated joint ventures479   1,124  0.01 
Partners' share of real estate depreciation(249)  (223)— — 
Loss on sale of depreciated properties:
Consolidated properties2   69 — — 
Share of unconsolidated joint ventures   (124)— — 
Funds From Operations$98,094 151,880 $0.65 $99,425 149,002 $0.67 

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 March 31,
 20232022
Net Income$22,356 $28,163 
Fee income(374)(1,388)
Termination fees(136)(1,462)
Other income(2,278)(2,283)
Reimbursed expenses207 360 
General and administrative expenses8,438 8,063 
Interest expense25,030 15,525 
Depreciation and amortization75,770 70,744 
Other expenses385 221 
Income from unconsolidated joint ventures(673)(1,124)
Loss on investment property transactions2 69 
Net Operating Income$128,727 $116,888 
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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 cash needs for 2023 include $172.4 million of unfunded tenant improvements and construction costs. As of March 31, 2023, we had $172.3 million drawn under our credit facility with the ability to borrow the remaining $827.7 million, as well as $3.6 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 $172.3 million outstanding as of March 31, 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. 77% of our consolidated debt bears interest at a fixed rate. The 23% 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.




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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):
Three Months Ended March 31,
20232022Change
Net cash provided by operating activities$26,494 $24,125 $2,369 
Net cash used in investing activities(93,847)(93,465)(382)
Net cash provided by financing activities65,793 67,403 (1,610)

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 $2.4 million between the 2023 and 2022 three 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; and the stabilization in 2022 of 100 Mill and Heights Union.
Cash Flows from Investing Activities. Cash flows used in investing activities decreased $382,000 between the 2023 and 2022 three 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, which is largely offset by a 2023 increase in our investment in the Neuhoff Holdings LLC ("Neuhoff") joint venture to fund our equity share of the development of the Neuhoff mixed-used project.
Cash Flows from Financing Activities. Cash flows provided by financing activities decreased $1.6 million between the 2023 and 2022 three month periods primarily due to an increase in Common Stock dividends paid and mortgage loans paid off in 2022.
Non-Cash Activities. Our tenants are increasingly spending amounts in excess of the tenant improvement allowance in their leases. These tenant funded improvements, which are owned by us, are recorded as an asset within operating properties and deferred income on our balance sheet. The increase in non-cash activity related to tenant improvements recorded in deferred income during the period is primarily due to a significant amount of such tenant funded improvements being placed into service during the period.
Capital Expenditures. We incur costs related to our real estate assets that include acquisition of properties, development of new properties, redevelopment of existing or newly purchased properties, leasing costs (including tenant improvements) for new or replacement tenants, and ongoing property repairs and maintenance.
Capital expenditures for assets we develop or acquire and then hold and operate are included in the property acquisition, development, and tenant asset expenditures line item within investing activities on the consolidated statements of cash flows. The change in amounts accrued are removed from the table below to show the components of these costs on a cash basis. Components of costs included in this line item for the three months ended March 31, 2023 and 2022 are as follows ($ in thousands):

 Three Months Ended March 31,
 20232022
Operating — building improvements$16,090 $32,547 
Development3,648 32,325 
Operating — leasing costs32,828 18,432 
Capitalized interest5,091 3,452 
Capitalized personnel costs 1,643 1,872 
Change in accrued capital expenditures10,563 (10,849)
Total property acquisition, development, and tenant asset expenditures$69,863 $77,779 

Capital expenditures decreased $7.9 million between the 2023 and 2022 periods primarily due to the approaching completion of development activities at Domain 9 which began in 2021 and redevelopment activities at two of our operating properties that began in the first quarter of 2022, a decrease in building improvements, and completion of development activities at our 100 Mill property that stabilized in the fourth quarter of 2022. These decreases were partially offset by an increase in leasing costs and a decrease in accrued capital expenditures.
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Capital expenditures related to operating leasing costs increased primarily due to an increased amount of tenant improvements being placed into service during the three months ended March 31, 2023 compared to the same period in the prior year.
The amounts of tenant improvement and leasing costs for our office portfolio on a per square foot basis for the three months ended March 31, 2023 and 2022 were as follows:
20232022
New leases$14.55$13.73
Renewal leases$6.12$9.04
Expansion leases$11.60$9.88

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 $48.4 million and $46.1 million in the three months ended March 31, 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 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 our 2022 Annual Report on Form 10-K and note 3 of this Form 10-Q. 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 March 31, 2023, our unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of $192.0 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 March 31, 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
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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.
PART II. OTHER INFORMATION
Item 1.    Legal Proceedings.
Information regarding legal proceedings is described under the subheading "Litigation" in note 9 to the unaudited condensed consolidated financial statements set forth in this Form 10-Q.
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 our Annual Report on Form 10-K, and note 12 to the unaudited condensed consolidated financial statements set forth in this Form 10-Q. We did not make any sales of unregistered securities or purchase any common shares during the first quarter of 2023.
Item 5.    Other Information.
Results of 2023 Annual Meeting of Stockholders
On April 24, 2023, the Company held its annual meeting of stockholders. Proxies for the meeting were solicited pursuant to Regulation 14A under the Securities and Exchange Act of 1934, as amended. The following matters were submitted to a vote of the stockholders:
Proposal 1 - the votes regarding the election of eight directors for a term expiring in 2023 were as follows:
NameForAgainstAbstentionsBroker Non-Votes
Charles T. Cannada132,747,891 1,848,428 420,143 4,596,909 
Robert M. Chapman132,534,994 2,060,723 420,745 4,596,909 
M. Colin Connolly133,611,132 984,572 420,758 4,596,909 
Scott W. Fordham133,612,091 983,504 420,867 4,596,909 
Lillian C. Giornelli127,092,009 7,494,906 429,547 4,596,909 
R. Kent Griffin, Jr.131,785,798 2,810,018 420,646 4,596,909 
Donna W. Hyland132,407,142 2,179,074 430,246 4,596,909 
Dionne Nelson133,091,651 1,487,260 437,551 4,596,909 
R. Dary Stone132,374,558 2,220,306 421,598 4,596,909 

Proposal 2 - the advisory votes on executive compensation, often referred to as "say on pay," were as follows:
ForAgainstAbstentionsBroker Non-Votes
115,951,491 18,622,709 442,262 4,596,909 

Proposal 3 - the votes regarding the frequency of future advisory votes on executive compensation:
1 Year2 Years3 YearsAbstentionsBroker Non-Votes
127,984,525 38,635 6,597,390 395,912 — 

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Proposal 4 - the votes to ratify the appointment of Deloitte & Touche LLP as the Company's independent registered public accountant firm for the fiscal year ending December 31, 2023 were as follows:
ForAgainstAbstentions
131,148,057 8,054,074 411,240 
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Item 6. Exhibits.
 
   
 
 
   
 
   
 †
   
 †
   
 †
   
 †
   
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.
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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: April 27, 2023

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