Overview of 2026 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 stockholder value by owning a lifestyle office portfolio (described in further detail below) in the Sun Belt markets, with a particular focus on the core markets of Austin, Atlanta, Charlotte, Tampa, Phoenix, Dallas, and Nashville. We execute this strategy through disciplined capital allocation, including opportunistic acquisitions, selective developments, and timely dispositions of non-core assets while maintaining a portfolio of newer, more efficient properties with lower capital expenditure requirements. This strategy is also based on a simple, flexible, and low-leverage balance sheet that allows us to pursue compelling growth opportunities at the most advantageous points in the cycle. To implement this strategy, we strive to have strong local operating platforms in each major market. During the quarter, we leased 924,000 square feet of office space, including 395,000 of new and expansion leases representing 43% of total leasing activity. Straight-line basis net rent per square foot increased 26.8% for those office spaces that were under lease within the past year. Same property Net Operating Income ("NOI", defined below) for consolidated properties and our share of unconsolidated properties increased 2.0% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. For the six months ended June 30, 2026, we leased 1,856,000 square feet of office space, including 878,000 of new and expansion leases representing 47% of total leasing activity. Straight-line basis net rent per square foot increased 27.8% for those office spaces that were under lease within the past year. Same property net operating income for consolidated properties and our share of unconsolidated properties increased 1.8% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. On April 1, 2026, we entered into a new five-year $1.2 billion unsecured credit facility which replaced the prior $1.0 billion facility that was scheduled to mature in April 2027, added two six-month extensions to each of our existing $400 million and $100 million unsecured term loans, and improved the borrowing spread by fifteen basis points on both the credit facility and the $400 million term loan and by thirty basis points on the $100 million term loan. On April 30, 2026, we purchased our partner's 10% interest in 100 Mill, in Phoenix, for $18.5 million. The purchase price included a promote to our partner in excess of its partnership interest and represented a negotiated fair value for the property of $158.7 million. On June 26, 2026, we sold our Research Park V, a 173,000 square foot office property in Austin, for a gross sales price of $42.0 million, resulting in a gain of $9.2 million on June 26, 2026. Subsequent to quarter end, on July 17, 2026, we acquired a preferred equity interest in 5th & Walsh, a 199,000 square foot office development in Austin. Our funding commitment of $31.5 million is expected to be invested in 2027. Subsequent to quarter end, on July 29, 2026, we sold One Eleven Congress, a 519,000 square foot office property in Austin, for a gross sales price of $208.0 million. We believe the Sun Belt, and in particular the seven core Sun Belt markets in which we own properties, will continue to outperform the broader office sector as evidenced by clear bifurcation between Sun Belt and Gateway market fundamentals. In addition, as the flight to quality trend accelerates among office users, we believe our lifestyle office portfolio is well positioned to benefit from, and ultimately outperform in, the current real estate environment. We consider “lifestyle offices” to be well-located buildings that are modern structures or have been modernized to compete with newer buildings, are professionally managed and maintained, and offer a number and type of amenities that are in high demand by customers that are focused on the importance of the physical work environment in recruiting and retaining employees. We believe our “lifestyle office” portfolio improves our ability to renew leases and obtain new customers which results in consistently higher occupancy than the remainder of the office buildings in our markets. We do not consider the expression “lifestyle office” a classification of our properties in accordance with any standard listing criteria in the real estate industry. We, therefore, caution investors that our use and definition of “lifestyle office” may be different than the use and definition of similar expressions and traditional classifications that may be used by other companies. 25 Results of Operations For The Three and Six Months Ended June 30, 2026 General Net income available to common stockholders for the three and six months ended June 30, 2026, was $26.2 million and $1.3 million, respectively. Net income available to common stockholders for the three and six months ended June 30, 2025, was $14.5 million and $35.4 million, respectively. During the three months ended June 30, 2026, we recorded a gain of $9.2 million upon sale of Research Park V in June 2026. During the six months ended June 30, 2026, we recorded a $36.6 million of impairment related to One Eleven Congress, which [was sold subsequent to quarter end on July 29, 2026]. We detail below other material changes in the components of net income and loss available to common stockholders for the three and six months ended June 30, 2026, compared to the same periods in 2025. 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 and excludes any office properties held for sale. Same Property amounts for the 2026 versus 2025 comparison period are for office properties that were stabilized and owned as of January 1, 2025, through June 30, 2026. We consider many factors in determining whether a property has stabilized, including the property’s occupancy (independently and relative to its submarket) and current leasing pipeline, as well as time since the cessation of major construction activity. Company management evaluates the performance of its property portfolio, in part, based on NOI. NOI represents rental property revenues, excluding termination fee income, 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. As a result, we use only those income and expense items that are incurred at the property level to evaluate a property's performance. The following table reconciles net income to consolidated NOI for each of the periods presented ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net Income $ 26,234 $ 14,658 $ 1,564 $ 35,751 Fee income (2,267) (494) (3,512) (990) Termination fee income (2,239) — (4,070) (2,866) Other income (547) (1,919) (1,303) (8,724) General and administrative expenses 12,115 9,738 23,955 20,447 Interest expense 47,064 38,514 92,165 75,288 Depreciation and amortization 104,845 100,890 213,251 203,004 Reimbursed expenses 172 119 292 296 Other expenses 389 443 827 865 Operating property impairment — — 36,600 — Loss from unconsolidated joint ventures 2,215 1,587 4,857 3,470 Gain on investment property transaction (9,172) — (9,125) — Net Operating Income $ 178,809 $ 163,536 $ 355,501 $ 326,541 26 Consolidated rental property revenues, rental property operating expenses, and NOI changed between the 2026 and 2025 periods as follows ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Rental Property Revenues Same Property $ 228,672 $ 217,107 $ 11,565 5.3 % $ 455,171 $ 439,027 $ 16,144 3.7 % Non-Same Property 34,803 20,609 14,194 68.9 % 67,581 38,849 28,732 74.0 % 263,475 237,716 25,759 10.8 % 522,752 477,876 44,876 9.4 % Termination fee income 2,239 — 2,239 4,070 2,866 1,204 Total Rental Property Revenues $ 265,714 $ 237,715 $ 27,999 $ 526,822 $ 480,742 $ 46,080 Rental Property Operating Expenses Same Property $ 74,502 $ 66,265 $ 8,237 12.4 % $ 147,025 $ 136,766 $ 10,259 7.5 % Non-Same Property 10,164 7,914 2,250 28.4 % 20,226 14,569 5,657 38.8 % Total Rental Property Operating Expenses $ 84,666 $ 74,179 $ 10,487 14.1 % $ 167,251 $ 151,335 $ 15,916 10.5 % Net Operating Income Same Property NOI $ 154,170 $ 150,842 $ 3,328 2.2 % $ 308,146 $ 302,261 $ 5,885 1.9 % Non-Same Property NOI 24,639 12,694 11,945 94.1 % 47,355 24,280 23,075 95.0 % Total NOI $ 178,809 $ 163,536 $ 15,273 9.3 % $ 355,501 $ 326,541 $ 28,960 8.9 % Same Property NOI represents Net Operating Income for those office properties that were stabilized and owned by us for the entirety of the 2026 and 2025 reporting periods presented, excluding any office properties held for sale. Same Property NOI allows analysts, investors, and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio. Same Property Rental Property Revenues, Operating Expenses, and NOI increased for the three months ended June 30, 2026, compared to the same period in the prior year primarily due to an increase in occupancy at Promenade Tower, Avalon, 3350 Peachtree, and Corporate Center. Non-Same Property Rental Property Revenues, Operating Expenses, and NOI increased for the three and six months ended June 30, 2026, compared to the same periods in the prior year primarily due to the acquisitions of 300 South Tryon in February 2026 as well as the acquisition of The Link in July 2025. These increases were partially offset by the sales of Harborview in February 2026 and Research Park V in June 2026. The following table details consolidated NOI from properties aggregated by market ($ in thousands): Three Months Ended June 30, Market 2026 2025 $ Change % Change Austin $ 61,648 $ 60,712 $ 936 1.5 % Atlanta 54,298 50,443 3,855 7.6 % Charlotte 21,883 16,932 4,951 29.2 % Phoenix 13,216 11,910 1,306 11.0 % Tampa 12,754 13,209 (455) (3.4) % Dallas 8,577 3,642 4,935 135.5 % Houston 5,210 5,533 (323) (5.8) % Office NOI 177,586 162,381 15,205 9.4 % Other Non-Office (1) 1,223 1,155 68 Total NOI $ 178,809 $ 163,536 $ 15,273 27 Six Months Ended June 30, Market 2026 2025 $ Change % Change Austin $ 123,871 $ 120,550 $ 3,321 2.8 % Atlanta 107,785 100,961 6,824 6.8 % Charlotte 40,904 33,764 7,140 21.1 % Phoenix 26,957 24,002 2,955 12.3 % Tampa 25,912 26,385 (473) (1.8) % Dallas 16,995 7,259 9,736 134.1 % Houston 10,768 11,219 (451) (4.0) % Office NOI 353,192 324,140 29,052 9.0 % Other Non-Office (1) 2,309 2,401 (92) Total NOI $ 355,501 $ 326,541 $ 28,960 (1) Includes operations at land sites held for future development as well as a parking garage in Charlotte. From an overall portfolio perspective, in-place gross rent per square foot as of June 30, 2026, increased 2.0% compared to June 30, 2025, contributing to a portfolio wide increase in NOI. NOI from the Dallas market increased $4.9 million and $9.7 million, or 135.5% and 134.1%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, respectively, primarily due to the acquisition of The Link in July 2025. NOI from the Charlotte market increased $5.0 million and $7.1 million, or 29.2% and 21.1%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, respectively, primarily due to the acquisition of 300 South Tryon in February 2026. NOI from the Phoenix market increased $1.3 million and $3.0 million, or 11.0% and 12.3%, and for the three and six months ended June 30, 2026 compared to the same periods in the prior year, respectively, primarily due to increased occupancy related to the completion of Hayden Ferry I's redevelopment in the fourth quarter of 2025. NOI from the Atlanta market increased $3.9 million and $6.8 million, or 7.6% and 6.8%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, respectively, primarily due to increased occupancy at the Avalon and 3350 Peachtree and the end of several variable rent abatement periods at Promenade Tower. Fee Income Fee income increased $1.8 million and $2.5 million, or 358.9% and 254.7%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, primarily by providing leasing services to our Proscenium joint venture. Other Income Other income decreased $1.4 million and $7.4 million, or 71% and 85.1%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, primarily due to the sale of our Silicon Valley Bank bankruptcy claim in the first quarter of 2025, for $4.6 million, and a reduction in interest income from the two mezzanine loans and the Saint Ann Court Mortgage Loan earned in the first quarter of 2025. These reductions were partially offset by interest income from the joint venture partner loan, which was issued in September 2025. These transactions are described in further detail in note 3 and note 12 to the consolidated financial statements in this Form 10-Q. General and Administrative Expenses General and administrative expenses increased $2.4 million and $3.5 million, or 24.4% and 17.2%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, respectively, primarily due to increases in compensation related expenses including leasing commissions incurred providing leasing services to our Proscenium joint venture for which we receive leasing fee income noted above. Interest Expense Interest expense, net of amounts capitalized, increased $8.6 million and $16.9 million, or 22.2% and 22.4%, for the three and six months ended June 30, 2026, compared to the same periods in the prior year, respectively, primarily due to the issuance of the $500 million unsecured senior notes in February 2026, and a higher average balance outstanding on the credit facility. Increased interest expense was partially offset by the repayment of $150 million of the 2021 Term Loan in February 2026. 28 Depreciation and Amortization Depreciation and amortization changed between the 2026 and 2025 periods as follows ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Depreciation and Amortization Same Property $ 92,149 $ 88,263 $ 3,886 4.4 % $ 182,040 $ 178,355 $ 3,685 2.1 % Non-Same Property 12,551 12,506 45 0.4 % 30,926 24,411 6,515 26.7 % Non-Real Estate Assets 145 121 24 19.8 % 285 238 47 19.7 % Total Depreciation and Amortization $ 104,845 $ 100,890 $ 3,955 3.9 % $ 213,251 $ 203,004 $ 10,247 5.0 % Non-Same Property depreciation and amortization increased for the six months ended June 30, 2026, compared to the same period in the prior year, primarily due to the acquisition of 300 South Tryon in February 2026, the acquisition of The Link in July 2025, and the completion of development at Domain 9 in March 2025. These increases were partially offset by the sale of Harborview Plaza in February 2026 and the classification of One Eleven Congress as held for sale in May 2026. 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 June 30, Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Loss from unconsolidated joint ventures $ (2,215) $ (1,587) $ (628) (39.6) % $ (4,857) $ (3,470) $ (1,387) (40.0) % Depreciation and amortization expense 3,057 2,489 568 22.8 % 6,110 4,701 1,409 30.0 % Interest expense 2,635 2,239 396 17.7 % 5,368 4,228 1,140 27.0 % Other expense 101 62 39 62.9 % 360 (17) 377 (2,217.6) % Other income (43) (38) (5) (13.2) % (75) (54) (21) (38.9) % Net operating income from unconsolidated joint ventures $ 3,535 $ 3,165 $ 370 11.7 % $ 6,906 $ 5,388 $ 1,518 28.2 % Net operating income: Same Property 1,338 1,609 (271) (16.8) % 2,705 3,160 (455) (14.4) % Non-Same Property 2,197 1,556 641 41.2 % 4,201 2,228 1,973 88.6 % Net operating income from unconsolidated joint ventures $ 3,535 $ 3,165 $ 370 11.7 % $ 6,906 $ 5,388 $ 1,518 28.2 % The change in loss from unconsolidated joint ventures was driven by increases in unconsolidated depreciation and amortization expense as well as unconsolidated interest expense. Unconsolidated depreciation and amortization expense and interest expense increased for the three and six months ended June 30, 2026, compared to the same period in the prior year, primarily due to assets being placed in service as the development of Phase I of the Neuhoff joint venture was completed and initial operations commenced. Non-Same Property NOI from unconsolidated joint ventures increased for the three and six months ended June 30, 2026, compared to the same period in the prior year, primarily due to operations at the Neuhoff joint venture, as the property continues to increase occupancy. Funds From Operations The following tables show Funds from Operations (“FFO”) and the related reconciliation from net income available to common stockholders. We calculate FFO as defined by the National Association of Real Estate Investment Trusts ("Nareit"), which is net income available to common stockholders (computed in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from sales of depreciable property, gains and losses from changes in control, impairment of depreciable real estate 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 29 presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, Nareit created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance, in part, based on FFO. Additionally, we use FFO, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to our officers and other key employees. The reconciliation of net income to FFO is as follows for the three and six months ended June 30, 2026, and 2025 (in thousands, except per share amounts): Three Months Ended June 30, 2026 2025 Dollars Weighted Average Common Shares Per Share Amount Dollars Weighted Average Common Shares Per Share Amount Net Income Available to Common Stockholders $ 26,158 164,561 $ 0.16 $ 14,483 167,930 $ 0.09 Noncontrolling interest related to unitholders 4 25 — 3 25 — Conversion of unvested restricted stock units 706 — — 810 — 0 Net Income — Diluted 26,162 165,292 0.16 14,486 168,765 0.09 Depreciation and amortization of real estate assets: Consolidated properties 104,699 — 0.63 100,769 — 0.60 Share of unconsolidated joint ventures 3,057 — 0.02 2,489 — 0.01 Partners' share of real estate depreciation (101) — — (250) — — Gain on sale of depreciated properties: Consolidated properties (9,172) — (0.06) — — — Funds From Operations $ 124,645 165,292 $ 0.75 $ 117,494 168,765 $ 0.70 Six Months Ended June 30, 2026 2025 Dollars Weighted Average Common Shares Per Share Amount Dollars Weighted Average Common Shares Per Share Amount Net Income Available to Common Stockholders $ 1,302 165,685 $ 0.01 $ 35,380 167,870 $ 0.21 Noncontrolling interest related to unitholders — 25 — 6 25 — Conversion of unvested restricted stock units — 776 — 784 — 0 Net Income — Diluted 1,302 166,486 0.01 35,386 168,679 0.21 Depreciation and amortization of real estate assets: Consolidated properties 212,966 — 1.27 202,765 — 1.20 Share of unconsolidated joint ventures 6,110 — 0.04 4,701 — 0.03 Partners' share of real estate depreciation (341) — — (524) — — Gain on sale of depreciated properties: Consolidated properties (9,125) — (0.05) — — — Impairment 36,600 — 0.22 — — — Funds From Operations $ 247,512 166,486 $ 1.49 $ 242,328 168,679 $ 1.44 30 Liquidity and Capital Resources Our primary short-term and long-term liquidity needs include the following: •property operating expenses; •property, land, and other real estate related 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 debt and equity securities; and •joint venture formations. Our material capital expenditure commitments as of June 30, 2026, included $205.3 million of unfunded tenant improvements and construction costs. As of June 30, 2026, we had $167.0 million drawn under our credit facility with the ability to borrow $1.0 billion, as well as $6.7 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 $1.2 billion unsecured Credit Facility, under which $167.0 million is outstanding as of June 30, 2026, we also have unsecured debt from four outstanding public unsecured senior notes totaling $1.9 billion, two term loans totaling $500 million, and four tranches of privately placed unsecured senior notes totaling $750 million. Our existing consolidated 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. 88% of our consolidated debt bears interest at a fixed rate. The 12% of consolidated debt that bears interest at a floating rate is based on SOFR. On April 1, 2026, we recast our Credit Facility to provide borrowing capacity up to $1.2 billion subject to conditions. This new facility replaced the Company's existing facility, extended the scheduled maturity from April 2027 to April 2031, and increased the borrowing capacity from $1.0 billion to $1.2 billion. Additionally, we amended our 2021 Term Loan and 2022 Term Loan, adding two six-month extension options to each. Since December 31, 2025, our all-in borrowing spread improved by 15 basis points on both the revolving credit facility and the 2022 Term Loan, and 30 basis points on the 2021 Term Loan. As of June 30, 2026, the borrowing spread on our Credit Facility was 72.5 basis points over SOFR, and the borrowing spread on both term loans was 80 basis points over SOFR. Financial covenants within the new facilities remained generally unchanged. 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, 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 also expect to continue to utilize cash retained from operations, as well as third-party sources of capital such as indebtedness, to fund future commitments and to utilize construction financing 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, or the issuance of CPLP limited partnership units. The Company and CPLP have filed a registration statement on Form S-3 with the SEC registering, among other securities, debt securities of CPLP, which are fully and unconditionally guaranteed by the Company. Separate consolidated financial statements of CPLP have not been presented in accordance with the amendments to Rule 3-10 of Regulation S-X. Furthermore, as permitted under Rule 13-01(a)(4)(vi), the Company has excluded the summarized financial information for CPLP as the assets, liabilities, and results of operations of the Company and CPLP are not materially different than the corresponding 31 amounts presented in the consolidated financial statements of the Company, and management believes such summarized financial information would be repetitive and not provide incremental value to investors. 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. 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): Six Months Ended June 30, 2026 2025 Change Net cash provided by operating activities $ 196,985 $ 167,312 $ 29,673 Net cash used in investing activities (359,379) (25,411) (333,968) Net cash provided by financing activities 163,373 267,590 (104,217) 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 by $29.7 million during the 2026 six month period compared to the same period in 2025, primarily due to the acquisitions of The Link and 300 South Tryon. In addition to these acquisitions there was an increase in cash inflows from a combination of increased occupancy and expiration of rent abatement periods, primarily at Promenade Tower, Domain 9, Hayden Ferry, and 300 Colorado. These inflows were partially offset by increased interest payments from increased average balances on the credit facility and the senior note issuances in June 2025 and February 2026. Cash Flows from Investing Activities. Cash flows used in investing activities increased by $334.0 million for the 2026 six month period compared to the same period in 2025, primarily due to the acquisition of 300 South Tryon in February 2026 partially offset by the receipt of proceeds from the sales of Harborview and Research Park V. In addition, the receipt of proceeds upon repayment by the borrower of the Saint Ann Court mortgage loan in January 2025 reduced cash used in investing activities during the six months ended June 30, 2025. Cash Flows from Financing Activities. Cash flows provided by financing activities for the 2026 six month period were $163.4 million, compared to cash flows provided by financing activities of $267.6 million for the same period in 2025. During the six month period in 2026, we received proceeds from the issuance of the 4.875% public senior notes in February 2026, and we had an increase in net borrowings on our credit facility. These proceeds were partially offset by a $150 million partial repayment of the 2021 Term Loan and a $90 million repurchase of outstanding common shares under the 2026 share repurchase program. During the six month period in 2025, we received proceeds from the issuance of the 5.250% public senior notes in June 2025, partially offset by an increase in net repayments on our credit facility. Capital Expenditures. We incur capital expenditures for the development of new properties, the redevelopment of existing or newly purchased properties, building improvements, direct leasing costs for new or replacement tenants, and capitalized interest and salaries. Components of expenditures included in this line item for the six months ended June 30, 2026, and 2025 are as follows ($ in thousands): Six Months Ended June 30, 2026 2025 Projects under development (1) $ — $ 2,088 Operating properties—redevelopment 29,127 19,086 Operating properties—building improvements 20,736 17,242 Operating properties—leasing costs 75,700 82,421 Capitalized interest and other 8,072 5,436 Total capital expenditures $ 133,635 $ 126,273 (1) Includes initial leasing costs. 32 Capital expenditures increased $7.4 million between the 2026 and 2025 six month periods, primarily due to partial redevelopment activity at 201 North Tryon, 550 South, and Hayden Ferry. The above leasing costs include leasing commissions and tenant improvements, which are both capitalized as a component of our real estate assets as they are incurred. Commitments toward those costs are calculated on square foot basis and are included in our leasing activity as leases are executed. Leasing activity details, including the components of net effective rent per square foot, for our office portfolio on leases executed during the six months ended June 30, 2026 are as follows: Six Months Ended June 30, 2026 New Renewal Expansion Total Net leased square feet (1) 737,343 978,025 140,587 1,855,955 Number of transactions 43 38 17 98 Lease term in years (2) 8.7 6.8 8.6 7.7 Net effective rent calculation (per square foot per year) (2) Net annualized rent (3) $ 42.51 $ 42.09 $ 51.24 $ 42.96 Net free rent (3.07) (1.33) (3.07) (2.16) Leasing commissions (3.54) (2.84) (3.85) (3.20) Tenant improvements (10.60) (4.80) (8.76) (7.40) Total leasing costs (4) (17.21) (8.97) (15.68) (12.76) Net effective rent $ 25.30 $ 33.12 $ 35.56 $ 30.20 Second generation leased square footage (5) 1,294,174 Increase in straight-line basis second generation net rent per square foot (6) 27.8 % Increase in cash-basis second generation net rent per square foot (7) 12.2 % (1) Comprised of total square feet leased, unadjusted for ownership share. Excludes leases approximately one year or less, along with apartment, retail, amenity, storage, and intercompany space leases. (2) Weighted average of net leased square feet. (3) Straight-line net rent per square foot (operating expense reimbursements deducted from gross leases) over the lease term, prior to any deductions for leasing costs. Excludes percent rent leases. (4) The amounts of tenant improvement and leasing costs on a per square foot basis vary by lease and by market. (5) Excludes leases executed for spaces that were vacant upon acquisition, new leases in development properties, percent rent leases, and leases for spaces that have been vacant for one year or more. (6) Increase in second generation straight-line basis net annualized rent on a weighted average basis. (7) Increase in second generation net cash rent at the end of the term paid by the prior tenant compared to net cash rent at the beginning of the term (after any free rent period) paid by the current tenant on a weighted average basis. For early renewals, the final net cash rent paid under the original lease is compared to the first net cash rent paid under the terms of the renewal. Net cash rent is net of any recovery of operating expenses but prior to any deductions for leasing costs. Dividends. We paid common dividends of $108.0 million and $108.3 million in the six months ended June 30, 2026, and 2025, respectively. We expect to fund our future quarterly common dividends with cash provided by operating activities, also using proceeds from investment property sales, distributions from unconsolidated joint ventures, indebtedness, and proceeds from offerings of equity and other securities, if necessary. On a quarterly basis, we review the amount of the common dividend in light of current and projected future cash flows from the sources noted above and also consider the requirements needed to maintain our REIT status. In addition, we have certain covenants under credit agreements that could limit the amount of common dividends paid. In general, common dividends of any amount can be paid as long as leverage, as defined in our credit agreements, is less than 60% and we are not in default. Certain conditions also apply 33 in which we can still pay common dividends if leverage is above that amount. We routinely monitor the status of our common dividend payments in light of the covenants of our credit agreements. Off Balance Sheet Arrangements General. We have a number of off balance sheet joint ventures with varying structures, as described in note 6 of the notes to consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025, and in note 4 of the notes to condensed consolidated financial statements included in this filing. 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 June 30, 2026, our unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of $337.0 million. These loans are generally mortgage or construction loans, which are non-recourse to us. In certain instances, we provide “non-recourse carve-out guarantees” on these non-recourse loans. In addition, along with our Neuhoff Holdings LLC joint venture partner, we guarantee our respective halves of the borrower's obligations to pay certain required equity contributions and project carrying costs, as well as timely completion of project construction. 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, 2025.