CUZ

Key Market Trend Observations

• Overall office demand is improving: national leasing activity hit a post-pandemic high in Q2 2026, with four consecutive quarters of positive net absorption and available high-quality space declining at a historically fast pace
• AI is a net positive for the office sector: no material negative employment impact has been observed, and AI-related office demand is broadening across all of Cousins' Sunbelt markets
• Flight-to-quality for premium office space continues: nearly all positive net absorption since COVID has occurred in buildings delivered after 2010, with strong preference for well-located, high-quality assets that support in-person collaboration
• Sunbelt migration is reaccelerating: more companies from high-cost Northeast and West Coast markets are opening new corporate hubs in the Sunbelt, and this trend is still in early stages
• New construction starts are at historic lows: due to 3-4 year delivery timelines, no meaningful new supply is expected until 2030 at the earliest, creating an emerging shortage of premium lifestyle office space that benefits existing landlords

Core Strategic Priorities

• Focus on driving sustainable FFO growth while maintaining a best-in-class balance sheet and continuing to upgrade the quality of the Sunbelt portfolio
• Pursue both internal growth via occupancy gains and rent growth, and external growth via selective acquisitions and development opportunities

Q2 2026 Operational Achievements

• Robust leasing: Q2 924,000 square feet of leasing volume matched Q1 2026, resulting in the second highest quarterly volume since mid-2019, with 43% of activity coming from new and expansion leases (above the 3-year run rate)
• 9.2% second generation cash rent growth, with growth broad-based across nearly all markets, and average net effective rent up 8.5% vs full year 2025
• Closed non-core asset dispositions: sold Research Park Plaza 5 (Austin) for $42 million and 111 Congress (Austin CBD) for $208 million, both traded at a combined ~9% cap rate, recycling capital into higher quality opportunities
• Completed a 10% joint venture partner buyout of 100 mil (Tempe, AZ), a 98%+ leased trophy office delivered in 2022, for $18.5 million, gaining full ownership of the high-growth asset
• Entered a preferred equity joint venture for the Fifth and Walsh development project (Austin, TX), which broke ground in Q2, for up to $31.5 million with a 10% preferred return and a right of first offer to purchase post-completion
• Closed a new 5-year $1.2 billion unsecured credit facility, improving borrowing spread by 15 basis points and extending debt maturity

• Full year 2026 FFO guidance is set at $2.92 to $2.98 per share, with an increased midpoint of $2.95 per share, up 1 cent from the prior guidance midpoint. This represents 3.9% FFO growth over 2025, and a 4% compounded annual growth rate since 2023.
• The guidance increase is driven by Q2 leasing activity that exceeded prior forecasts, plus the impact of recently completed property transactions.
• Guidance assumes the 2.9 million previously issued forward shares will be settled in Q3 2026, one quarter later than prior guidance. The company may delay share settlement further if it completes additional non-core asset sales, but settlement in Q3 is the base case for guidance.
• The only additional property transaction included in current guidance is the planned sale of the 303 Tremont land parcel in Q4 2026. Guidance will be updated if any additional acquisitions, sales, or development starts are completed in 2026.
• Management reaffirms the full year 2026 target of reaching 90% weighted average occupancy for the portfolio by year end.

Cousins Properties is a Sunbelt-focused office REIT with a single core operating segment of high-quality lifestyle office properties, plus limited mixed-use development activity. Core financial performance for Q2 2026: Funds From Operations (FFO) was $0.75 per share. Same property Cash NOI grew 5.9% year-over-year, following a 5.5% increase in Q1 2026. Second generation cash rent roll-up was 9.2% this quarter, marking 49 consecutive quarters of positive rent growth. Total portfolio leasing volume for Q2 was 924,000 square feet, bringing first half 2026 total leasing volume to 1.9 million square feet. As of quarter-end, total portfolio leased percentage was 92.8% and weighted average occupancy was 89.4%, up 50 basis points sequentially. By key market: Atlanta reached 91.6% leased with 14.3% second quarter cash rent roll-up; Austin portfolio is nearly 96% leased with 16.3% cash rent roll-up; Charlotte market vacancy is at its lowest since Q3 2023, with the completed 550 South redevelopment seeing 10% occupancy growth in Q2; Tampa Trophy portfolio full service rents exceed $50 per square foot; Phoenix portfolio benefited from strong corporate relocation activity with 139,000 square feet of Q2 leasing; Nashville's NUHAS mixed-use project office component is 96% leased and multifamily is over 94% leased.

• Actual results may differ materially from forward-looking statements due to general macroeconomic volatility, changes in office demand trends, and capital market conditions, as detailed in the company's existing SEC filings (including Form 10-K).
• Upcoming large lease expirations in Charlotte are expected to cause a modest temporary downtick in occupancy in Q3 2026, though existing backlog of new leases commencing in H2 2026 is expected to offset this over the second half.
• Development projects carry execution risk and require achieving market rental rates that justify construction costs; returns depend on market conditions that could shift over the 3-4 year construction timeline.
• There is ongoing market uncertainty about the long-term impact of AI on office employment and demand, though management has not observed material negative impacts to date.

Q: The company has seen 9-10% average rent spreads for some time, and management previously noted step-ups in market rents for top-tier space. Should we expect higher rent spreads in coming quarters, and what is current market rent trajectory? / A: Rent spreads vary quarter-to-quarter based on lease mix, and most current quarter spreads reflect terms agreed 1-2 quarters prior. Management notes the company previously prioritized driving occupancy, but now believes the business is at an inflection point, and expects stronger rent growth in coming quarters as market conditions tighten.

Q: Non-core dispositions traded at 9-10% cap rates; what cap rate spread should we expect between future non-core sales and new acquisitions, and what is the strategy for future asset sales? / A: After 18+ months of capital recycling, Cousins has very few remaining non-core assets, with only ~5% of the portfolio considered lower priority going forward. Future disposition-reinvestment spreads will be much tighter than in prior years. The company only sells assets if reinvesting proceeds will be accretive to earnings, and has no need to sell for balance sheet reasons given its strong leverage position.

Q: With very limited new supply expected until 2030 across all markets, when should we expect material rent increases, and how large could rent growth be? / A: The 2030 timeline for new supply applies across all of the company's Sunbelt markets, due to the 3-4 year construction lead time from today's low starts. With already tightening markets and no new supply coming online for years, management expects material, non-linear rent growth for high-quality space, potentially double-digit cumulative rent growth rather than the historical 3% annual linear growth, based on examples like Uptown Dallas where base rents have nearly doubled over 5 years.

Q: What is the company's experience with AI-related leasing demand, and is there greater AI-related employment risk in the Sunbelt as some market participants worry? / A: AI-related demand is broad across the company's portfolio, from AI-focused technology companies to hyperscalers, with Austin seeing the most robust AI activity by far. Management notes the narrative that the Sunbelt has disproportionately more back-office jobs at risk from AI is a false narrative; Sunbelt markets have seen large growth in front-office, revenue-generating tech and corporate roles, and the impact of AI on overall employment has been negligible to date for the company's portfolio.