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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company currently has several types of employee stock-based compensation, including restricted stock and restricted stock units ("RSUs"), issued under the Cousins Properties Incorporated 2019 Omnibus Incentive Stock Plan (the "2019 Plan") and the Employee Stock Purchase Plan ("ESPP"). While the Company's 2019 Plan also allows for the issuance of stock options, none have been issued or exercised or were outstanding as of or during any of the periods presented. A portion of the Company's independent directors' compensation is also provided in the form of Company stock issued under the 2019 Plan. The Company's compensation expense for the three and nine months ended September 30, 2025 relates to restricted stock, stock-settled RSUs, and the ESPP. Restricted stock and the stock-settled RSUs are equity-classified awards for which compensation expense per share is fixed. For the three and nine months ended September 30, 2025 and 2024, stock-based compensation expense, net of forfeitures, was recorded as follows ($ in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Equity-classified awards: |  |  |  |  |  |  |  |
Restricted stock |  | $ | 1,150 |  |  | $ | 1,047 |  |  | $ | 3,447 |  |  | $ | 3,088 |
Market-based RSUs |  | 1,345 |  |  | 1,521 |  |  | 6,291 |  |  | 5,373 |
Performance-based RSUs |  | 456 |  |  | 510 |  |  | 2,052 |  |  | 1,543 |
Director grants |  | 410 |  |  | 391 |  |  | 1,259 |  |  | 1,196 |
Employee Stock Purchase Plan |  | 22 |  |  | 24 |  |  | 75 |  |  | 72 |
Total equity-classified award expense, net of forfeitures |  | $ | 3,383 |  |  | $ | 3,493 |  |  | $ | 13,124 |  |  | $ | 11,272 |
Information on the Company's stock compensation plan, including information on the Company's equity-classified awards is discussed in note 15 of the notes to the consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Grants of Equity-Classified Awards Under the 2019 Plan, in 2025 and 2024, the Company granted three types of equity-classified awards to key employees under the 2019 Plan: (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 common 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 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. 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. The following table summarizes the grants of equity-classified awards made to employees by the Company during the nine months ended September 30, 2025 and 2024, respectively, (in thousands):
| Shares and Targeted Units Granted in
| 2025 |  | 2024
Market-based RSUs | 178 |  |  | 206 |
Performance-based RSUs | 77 |  |  | 88 |
Restricted stock | 179 |  |  | 204 |
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 during nine months ended September 30, 2025 and 2024:
|  | Assumptions for RSUs Granted in
|  | 2025 |  | 2024
Volatility | (1) | 31.3 | % |  | 30.5 | %
Risk-free rate | (2) | 4.26 | % |  | 4.43 | %
Stock beta | (3) | 0.88 | % |  | 0.96 | %
(1) Based on historical volatility over three years using daily stock price. (2) Reflects the yield on three-year Treasury bonds. (3) Betas are calculated with up to three years of daily stock price data.

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