COUSINS PROPERTIES INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - COUSINS PROPERTIES INC	g27055e8vk.htm

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED
Quarterly Information Package
For the Quarter Ended March 31, 2011

TABLE OF CONTENTS


Press Release			1
Condensed Consolidated Statements of Operations			3
Funds From Operations			4
Condensed Consolidated Balance Sheets			5
Key Performance Indicators			6
Funds From Operations — Summary			7
Funds From Operations — Supplemental Detail			8
Portfolio Listing			12
Same Property Performance			14
Square Feet Expiring			15
Top 20 Tenants			16
Inventory of Commercial Land Held			17
Inventory of Lots and Acreage in Residential Projects			18
Debt Outstanding			19
Calculations and Reconciliations of Non-GAAP Financial Measures			21
Discussion of Non-GAAP Financial Measures			27

Certain matters contained in this package are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks. These include, but are not limited to, availability and terms of capital and financing; national and local economic conditions; the real estate industry in general and in specific markets; the potential for recognition of additional impairments due to continued adverse market and economic conditions; leasing risks; the financial condition of existing tenants; rising interest and insurance rates; the availability of sufficient development or investment opportunities; environmental matters; 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, risks associated with development projects and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including those described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes 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.

News Release


CONTACT:

Gregg D. Adzema		Cameron Golden
Executive Vice President and		Director of Investor Relations and
Chief Financial Officer		Corporate Communications
(404) 407-1116		(404) 407-1984
greggadzema@cousinsproperties.com		camerongolden@cousinsproperties.com

COUSINS REPORTS RESULTS FOR FIRST QUARTER OF 2011

Highlights

	•		Funds From Operations (FFO) before a non-cash impairment charge was $0.11 per share.

	•		Finalized exit from residential condominium business.

	•		Sold Jefferson Mill Business Park Building A.

	•		Selected as the master developer for the multi-modal transit hub in Downtown Atlanta.

	•		Continued progress on predevelopment of Emory Point mixed use project.

ATLANTA (May 4, 2011) — Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2011.

“The first quarter results demonstrate the continued success of our strategic efforts to lease vacant space and sell non-core assets as we simplify the platform,” said Larry Gellerstedt, CEO of Cousins. “Our leasing pipeline remains solid, and we’re excited to be returning to an offensive mode as we move closer to starting our Emory Point project and continue to seek additional value creation opportunities.”

Portfolio Activity

	•		Leased or renewed 113,000 square feet of office space and 165,000 square feet of retail space during the quarter.

	•		Office portfolio increased to 92% leased, compared with 88% in the prior-year period.

	•		Retail portfolio increased to 87% leased, compared with 85% in the prior-year period.

	•		Industrial portfolio remained 96% leased, compared with 64% in the prior-year period.

Disposition Activity

	•		Sold Jefferson Mill Business Park Building A for $22.0 million.

	•		Sold final residential condominium units at 10 Terminus Place for net gains of $2.2 million in the first quarter of 2011.

	•		Sold 61 lots and 20 acres of residential land for net gains of $246,000 in the first quarter of 2011.

Financial Results

FFO was $8.1 million, or $0.08 per share, for the first quarter of 2011 compared with $14.0 million, or $0.14 per share, for the first quarter of 2010.

Net loss available to common stockholders (net loss available) was ($7.9 million), or ($0.08) per share, for the first quarter of 2011 compared with net loss available of ($1.6 million), or ($0.02) per share, for the first quarter of 2010.

FFO and net loss available for the first quarter of 2011 were affected by a $3.5 million non-cash impairment charge on the Company’s passive investment in a non-traded real estate investment trust. The Company’s initial investment in this industrial/multifamily REIT was made in 2003 and the basis as of December 31, 2010, was $9.4 million. FFO and net loss available before this charge was $0.11 and ($0.04) per share, respectively.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, May 5, 2011, to discuss the results of the quarter ended March 31, 2011. The number to call for this interactive teleconference is (212) 231-2901.

-MORE-

CUZ Reports First Quarter Results
Page 2
May 4, 2011

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21521383. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q1 2011 Cousins Properties Incorporated Earnings Conference Call” link on the Investor Relations page, as well as at http://www.videonewswire.com/event.asp?id=78870. The rebroadcast will be available on the Investor Relations page of the Company’s website for 14 days.

Cousins Properties Incorporated is a leading diversified real estate company with extensive experience in development, acquisition, financing, management and leasing. Based in Atlanta, the Company actively invests in office and retail development projects. Since its founding in 1958, Cousins has developed 20 million square feet of office space, 20 million square feet of retail space, more than 3,500 multi-family units and more than 60 single-family neighborhoods. The Company is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ, For more, please visit www.cousinsproperties.com.

The Condensed Consolidated Statements of Operations, Condensed Consolidated Balance Sheets and a schedule entitled Funds From Operations, which reconciles Net Income (Loss) Available to FFO, are attached to this press release. More detailed information on Net Income (Loss) Available and FFO results is included in the “Net Income and Funds From Operations — Supplemental Detail” schedule which is included along with other supplemental information in the Company’s Current Report on Form 8-K, which the Company is furnishing to the Securities and Exchange Commission (“SEC”), and which can be viewed through the “Supplemental Information” and “SEC Filings” links on the “Investor Information & Filings” link of the Investor Relations page of the Company’s website at www.cousinsproperties.com. This information may also be obtained by calling the Company’s Investor Relations Department at (404) 407-1984.

Certain matters discussed in this news release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risk. These include, but are not limited to, availability and terms of capital and financing; national and local economic conditions; the real estate industry in general and in specific markets; the potential for recognition of additional impairments due to continued adverse market and economic conditions; leasing risks; the financial condition of existing tenants; competition from other developers or investors; the risks associated with development projects; rising interest and insurance rates; the availability of sufficient development or investment opportunities; environmental matters; 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 and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including those described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statement are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes 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.

-MORE-

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except share and per share amounts)


	Three Months Ended March 31,
	2011			2010
REVENUES:
Rental property revenues	$	36,148		$	34,773
Fee income		3,385			3,544
Third party management and leasing revenues		4,088			4,794
Multi-family residential unit sales		4,657			10,146
Residential lot and outparcel sales		165			13,819
Other		513			124

		48,956			67,200

COSTS AND EXPENSES:
Rental property operating expenses		14,248			14,531
Third party management and leasing expenses		4,093			4,958
Multi-family residential unit cost of sales		2,500			7,970
Residential lot and outparcel cost of sales		69			9,096
General and administrative expenses		7,400			8,017
Interest expense		7,544			9,781
Reimbursed expenses		1,512			1,859
Depreciation and amortization		13,475			13,176
Impairment loss		3,508			—
Separation expenses		101			68
Other		862			862

		55,312			70,318


LOSS ON EXTINGUISHMENT OF DEBT		—			(592	)


LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		(6,356	)		(3,710	)

BENEFIT FOR INCOME TAXES FROM OPERATIONS		64			1,146

INCOME FROM UNCONSOLIDATED JOINT VENTURES		2,496			2,920


INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		(3,796	)		356

GAIN ON SALE OF INVESTMENT PROPERTIES		59			756


INCOME (LOSS) FROM CONTINUING OPERATIONS		(3,737	)		1,112

INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Income from discontinued operations		72			1,068
Loss on sale of investment properties		(384	)		—

		(312	)		1,068


NET INCOME (LOSS)		(4,049	)		2,180
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(581	)		(526	)

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST		(4,630	)		1,654

DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,227	)		(3,227	)


NET LOSS AVAILABLE TO COMMON STOCKHOLDERS	$	(7,857	)	$	(1,573	)


PER COMMON SHARE INFORMATION — BASIC AND DILUTED:
Loss from continuing operations attributable to controlling interest	$	(0.07	)	$	(0.03	)
Income from discontinued operations		—			0.01

Net loss available to common stockholders — basic and diluted	$	(0.08	)	$	(0.02	)


WEIGHTED AVERAGE SHARES — BASIC AND DILUTED		103,515			100,069

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(Unaudited, in thousands, except per share amounts)


	Three Months Ended
	March 31,
	2011			2010
Net Loss Available to Common Stockholders	$	(7,857	)	$	(1,573	)
Depreciation and amortization:
Consolidated properties		13,475			13,176
Discontinued properties		64			719
Share of unconsolidated joint ventures		2,683			2,294
Depreciation of furniture, fixtures and equipment:
Consolidated properties		(563	)		(567	)
Discontinued properties		—			(4	)
Share of unconsolidated joint ventures		(5	)		(6	)
(Gain) loss on sale of investment properties:
Consolidated		(59	)		(756	)
Discontinued properties		384			—
Gain on sale of undepreciated investment properties		—			697


Funds From Operations Available to Common Stockholders	$	8,122		$	13,980


Per Common Share — Basic and Diluted:
Net Loss Available	$	(.08	)	$	(.02	)

Funds From Operations	$	.08		$	.14

Weighted Average Shares-Basic		103,515			100,069

Weighted Average Shares-Diluted		103,530			100,069

The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income (Loss) Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of 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 an equity 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. Management believes that 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, the Company uses FFO along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

Management believes that FFO before certain charges provides analysts and investors with appropriate information related to its core operations and for comparability of the results of its operations with other real estate companies.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)


	March 31, 2011			December 31, 2010
	(Unaudited)
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $286,547 and $274,925 in 2011 and 2010, respectively	$	870,723		$	898,119
Land held for investment or future development		123,885			123,879
Residential lots		63,698			63,403
Other		738			2,994

Total properties		1,059,044			1,088,395

CASH AND CASH EQUIVALENTS		5,097			7,599
RESTRICTED CASH		15,854			15,521
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $5,728 and $6,287 in 2011 and 2010, respectively		48,414			48,395
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		165,119			167,108
OTHER ASSETS		41,925			44,264


TOTAL ASSETS	$	1,335,453		$	1,371,282


LIABILITIES AND EQUITY
NOTES PAYABLE	$	496,823		$	509,509
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES		26,455			32,388
DEFERRED GAIN		4,157			4,216
DEPOSITS AND DEFERRED INCOME		17,978			18,029

TOTAL LIABILITIES		545,413			564,142

COMMITMENTS AND CONTINGENT LIABILITIES

REDEEMABLE NONCONTROLLING INTERESTS		8,953			14,289

STOCKHOLDERS’ INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2011 and 2010		74,827			74,827
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2011 and 2010		94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 107,201,480 and 106,961,959 shares issued in 2011 and 2010, respectively		107,201			106,962
Additional paid-in capital		685,028			684,551
Treasury stock at cost, 3,570,082 shares in 2011 and 2010		(86,840	)		(86,840	)
Distributions in excess of cumulative net income		(126,706	)		(114,196	)

TOTAL STOCKHOLDERS’ INVESTMENT		748,285			760,079

Nonredeemable noncontrolling interests		32,802			32,772

TOTAL EQUITY		781,087			792,851


TOTAL LIABILITIES AND EQUITY	$	1,335,453		$	1,371,282

COUSINS PROPERTIES INCORPORATED
KEY PERFORMANCE INDICATORS
As of March 31, 2011


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

Property Statistics
Number of Operating Properties		38			38			38			38			41			41			40
Rentable Square Feet (in thousands)		14,113			14,078			14,078			13,869			14,156			14,156			13,747
Acres of Commercial Land (Company share)		569			539			479			482			510			510			510
Acres of Residential Land (Company share)		4,962			4,962			4,959			4,959			4,829			4,829			4,831
Number of Residential Lots Remaining to be Sold (Company Share)		4,632			4,594			4,559			4,531			3,684			3,684			3,667

Leverage Ratios (1)
Debt/Total Market Capitalization		46	%		44	%		46	%		42	%		40	%		40	%		39	%
Debt + Preferred/Total Market Capitalization		56	%		53	%		57	%		53	%		50	%		50	%		49	%
Recourse Debt/Total Market Capitalization		13	%		12	%		12	%		8	%		10	%		10	%		9	%

Coverage Ratios (1)
Interest Coverage		1.92			2.61			2.26			2.40			2.89			2.53			2.76
Fixed Charges Coverage		1.40			1.89			1.66			1.62			1.97			1.78			1.86
Debt/Annualized EBITDA		9.03			6.95			7.28			7.03			6.13			6.51			6.88

Dividend Ratios (1)
FFO Payout Ratio		-46	%		64	%		115	%		1034	%		92	%		111	%		57	%
FFO Before Certain Charges Payout Ratio		105	%		61	%		87	%		89	%		61	%		72	%		40	%
FAD Payout Ratio		-40	%		80	%		213	%		-202	%		175	%		224	%		132	%
FAD Before Certain Charges Payout Ratio		160	%		75	%		133	%		186	%		88	%		107	%		65	%

Operations Ratios (1)
General and Administrative Expenses/Revenues		12.2	%		11.9	%		12.9	%		11.8	%		13.6	%		12.5	%		15.1	%
Annualized General and Administrative Expenses/Total Undepreciated Assets		1.5	%		1.9	%		1.6	%		1.5	%		1.8	%		1.7	%		1.8	%


(1)		See calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED
FUNDS FROM OPERATIONS — SUMMARY
($ in thousands, except per share)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

NET OPERATING INCOME
OFFICE		69,280			17,676			17,920			17,764			19,432			72,792			18,608
RETAIL		31,982			8,754			8,714			7,255			7,054			31,777			8,488
INDUSTRIAL		1,568			533			615			1,092			1,385			3,625			1,050
OTHER		26			18			59			15			4			96			1

TOTAL NET OPERATING INCOME		102,856			26,981			27,308			26,126			27,875			108,290			28,147

SALES LESS COST OF SALES
MULTI-FAMILY RESIDENTIAL		5,327			2,293			1,880			1,612			2,113			7,898			2,174
RESIDENTIAL LOTS		1,012			650			499			478			819			2,446			226
TRACTS AND OUTPARCEL		3,366			5,422			1,104			(3	)		3,533			10,056			70
OTHER INVESTMENT PROPERTY		58			—			—			—			—			—			—

TOTAL SALES LESS COST OF SALES		9,763			8,365			3,483			2,087			6,465			20,400			2,470

FEE INCOME		11,840			3,544			3,728			3,966			3,205			14,443			3,385
THIRD PARTY MANAGEMENT AND LEASING REVENUES		21,966			4,794			4,485			4,724			4,974			18,977			4,088
OTHER INCOME		3,025			124			190			256			694			1,264			513

TOTAL FEE AND OTHER INCOME		36,831			8,462			8,403			8,946			8,873			34,684			7,986

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,878	)		(4,958	)		(4,214	)		(4,122	)		(4,099	)		(17,393	)		(4,093	)

REIMBURSED EXPENSES		(5,378	)		(1,859	)		(1,398	)		(1,392	)		(1,648	)		(6,297	)		(1,512	)

SEPARATION EXPENSES		(3,257	)		(68	)		(33	)		(202	)		(742	)		(1,045	)		(101	)

GENERAL AND ADMINISTRATIVE EXPENSES		(26,198	)		(8,017	)		(6,763	)		(6,172	)		(7,565	)		(28,517	)		(7,400	)

GAIN (LOSS) ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		9,732			(592	)		—			(9,235	)		—			(9,827	)		—

INTEREST EXPENSE		(45,328	)		(10,680	)		(11,233	)		(9,889	)		(9,630	)		(41,432	)		(8,736	)

IMPAIRMENT LOSSES		(115,752	)		—			(586	)		—			(5,714	)		(6,300	)		(3,508	)

OTHER EXPENSES		(16,674	)		(996	)		(3,363	)		(1,563	)		(121	)		(6,043	)		(1,400	)

INCOME TAX (PROVISION) BENEFIT		(4,341	)		1,146			(14	)		(25	)		(28	)		1,079			64

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(3,428	)		(577	)		(468	)		(447	)		(419	)		(1,911	)		(568	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)


FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
WEIGHTED AVERAGE SHARES		65,495			100,069			101,001			101,893			102,761			101,440			103,530
FFO PER SHARE		(1.40	)		0.14			0.08			0.01			0.10			0.32			0.08

COUSINS PROPERTIES INCORPORATED
FUNDS FROM OPERATIONS — SUPPLEMENTAL DETAIL
(in thousands, except per share amounts and percentages)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES :
TERMINUS 100		14,491			3,720			3,731			3,635			3,695			14,781			4,015
191 PEACHTREE TOWER		7,190			2,945			2,895			2,982			4,295			13,117			3,228
THE AMERICAN CANCER SOCIETY CENTER		13,062			2,675			2,736			2,796			2,611			10,818			2,771
ONE GEORGIA CENTER		4,305			1,029			1,025			1,027			1,020			4,101			1,067
MERIDIAN MARK PLAZA		3,822			917			924			910			935			3,686			895
LAKESHORE PARK PLAZA		2,186			561			521			527			594			2,203			546
555 NORTH POINT CENTER EAST		2,063			482			539			505			512			2,038			506
200 NORTH POINT CENTER EAST		1,606			417			415			422			419			1,673			438
333 NORTH POINT CENTER EAST		1,685			406			422			352			395			1,575			419
THE POINTS AT WATERVIEW		2,050			460			540			447			480			1,927			415
100 NORTH POINT CENTER EAST		1,391			319			459			373			373			1,524			307
INHIBITEX		896			224			222			225			225			896			225
600 UNIVERSITY PARK PLACE		1,553			418			349			322			437			1,526			182
GALLERIA 75		261			55			87			63			114			319			132
COSMOPOLITAN CENTER		554			115			126			110			164			515			106

SUBTOTAL — OFFICE CONSOLIDATED		57,115			14,743			14,991			14,696			16,269			60,699			15,252

JOINT VENTURE PROPERTIES :
PALISADES WEST		4,968			1,215			1,240			1,223			1,334			5,012			1,511
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,616			894			904			963			918			3,679			933
TEN PEACHTREE PLACE		2,185			571			583			582			578			2,314			602
GATEWAY VILLAGE — PREFERRED RETURN		1,208			302			302			302			302			1,208			302
PRESBYTERIAN MEDICAL PLAZA		68			16			12			19			15			62			14
TERMINUS 200		58			—			(60	)		50			29			19			14
OTHER		(53	)		(22	)		6			(18	)		(18	)		(52	)		(19	)

SUBTOTAL — OFFICE JOINT VENTURE		12,051			2,976			2,987			3,121			3,158			12,242			3,357

DISCONTINUED OPERATIONS :
8995 WESTSIDE PARKWAY		114			(43	)		(58	)		(53	)		5			(149	)		(1	)

SUBTOTAL — OFFICE DISCONTINUED		114			(43	)		(58	)		(53	)		5			(149	)		(1	)

TOTAL — OFFICE NET OPERATING INCOME		69,280			17,676			17,920			17,764			19,432			72,792			18,608

COUSINS PROPERTIES INCORPORATED
FUNDS FROM OPERATIONS — SUPPLEMENTAL DETAIL
(in thousands, except per share amounts and percentages)


	2009			2010 1st			2010 2nd			2010 3rd		2010 4th		2010		2011 1st

RETAIL:
CONSOLIDATED PROPERTIES :
THE AVENUE FORSYTH		3,697			1,588			1,458			1,638		1,551		6,235		2,166
THE AVENUE WEBB GIN		5,583			1,484			1,214			1,307		1,290		5,295		1,463
THE AVENUE CARRIAGE CROSSING		4,800			1,082			1,503			1,396		1,257		5,238		1,254
TIFFANY SPRINGS MARKETCENTER		3,329			741			817			835		918		3,311		856

SUBTOTAL — RETAIL CONSOLIDATED		17,409			4,895			4,992			5,176		5,016		20,079		5,739

JOINT VENTURE PROPERTIES:
THE AVENUE MURFREESBORO		3,995			1,071			1,117			1,082		1,135		4,405		1,233
CW INVESTMENTS		—			—			—			—		—		—		594
THE AVENUE EAST COBB		661			154			161			167		152		634		144
GREENBRIER MARKETCENTER		543			142			136			138		135		551		142
NORTH POINT MARKETCENTER		447			105			133			129		146		513		138
THE AVENUE WEST COBB		497			130			105			125		133		493		135
THE AVENUE VIERA		578			153			131			131		116		531		128
THE AVENUE PEACHTREE CITY		454			117			106			118		96		437		106
LOS ALTOS MARKETCENTER		205			56			40			52		72		220		84
VIERA MARKETCENTER		205			48			50			51		52		201		49

SUBTOTAL — RETAIL JOINT VENTURE		7,585			1,976			1,979			1,993		2,037		7,985		2,753

DISCONTINUED OPERATIONS:
SAN JOSE MARKETCENTER		6,988			1,883			1,743			86		1		3,713		(4	)

SUBTOTAL — RETAIL DISCONTINUED		6,988			1,883			1,743			86		1		3,713		(4	)

TOTAL — RETAIL NET OPERATING INCOME		31,982			8,754			8,714			7,255		7,054		31,777		8,488

INDUSTRIAL :
KING MILL DISTRIBUTION PARK — BUILDING 3		1,047			339			418			470		558		1,785		537
LAKESIDE RANCH BUSINESS PARK — BUILDING 20		727			247			263			360		395		1,265		372

SUBTOTAL — INDUSTRIAL CONSOLIDATED		1,774			586			681			830		953		3,050		909

DISCONTINUED OPERATIONS:
JEFFERSON MILL BUSINESS PARK — BUILDING A		(206	)		(53	)		(66	)		262		432		575		141

SUBTOTAL — INDUSTRIAL DISCONTINUED		(206	)		(53	)		(66	)		262		432		575		141

TOTAL — INDUSTRIAL NET OPERATING INCOME		1,568			533			615			1,092		1,385		3,625		1,050

OTHER DISCONTINUED OPERATIONS NET OPERATING INCOME		(4	)		—			—			—		—		—		—

OTHER CONSOLIDATED NET OPERATING INCOME		30			18			59			15		4		96		1


TOTAL NET OPERATING INCOME		102,856			26,981			27,308			26,126		27,875		108,290		28,147

COUSINS PROPERTIES INCORPORATED
FUNDS FROM OPERATIONS — SUPPLEMENTAL DETAIL
(in thousands, except per share amounts and percentages)


	2009		2010 1st		2010 2nd		2010 3rd			2010 4th			2010		2011 1st

SALES LESS COST OF SALES
MULTI-FAMILY SALES LESS COST OF SALES — CONSOLIDATED		5,212		2,176		1,835		1,447			1,967			7,425		2,157
MULTI-FAMILY SALES LESS COST OF SALES — JOINT VENTURES		115		117		45		165			146			473		17

SUBTOTAL — MULTI-FAMILY SALES LESS COST OF SALES		5,327		2,293		1,880		1,612			2,113			7,898		2,174

LOT SALES LESS COST OF SALES — CONSOLIDATED		481		130		41		81			322			574		46
LOT SALES LESS COST OF SALES — JOINT VENTURES		531		520		458		397			497			1,872		180

SUBTOTAL — LOT SALES LESS COST OF SALES		1,012		650		499		478			819			2,446		226

TRACT SALES LESS COST OF SALES — CONSOLIDATED		1,185		697		1,002		(1	)		(1	)		1,697		—
TRACT SALES LESS COST OF SALES — JOINT VENTURES		264		46		102		2			3,457			3,607		20
OUTPARCEL SALES LESS COST OF SALES — CONSOLIDATED		1,917		4,593		—		—			77			4,670		50
OUTPARCEL SALES LESS COST OF SALES — JOINT VENTURE		—		86		—		(4	)		—			82		—

SUBTOTAL — TRACT AND OUTPARCEL SALES LESS COST OF SALES		3,366		5,422		1,104		(3	)		3,533			10,056		70

OTHER INVESTMENT PROPERTY LESS COST OF SALES — CONSOLIDATED		58		—		—		—			—			—		—


TOTAL SALES LESS COST OF SALES		9,763		8,365		3,483		2,087			6,465			20,400		2,470

FEE INCOME
DEVELOPMENT FEES		2,317		356		493		663			501			2,013		532
MANAGEMENT FEES		8,729		2,748		2,199		2,230			2,485			9,662		2,377
LEASING & OTHER FEES		794		440		1,036		1,073			219			2,768		476

TOTAL — FEE INCOME		11,840		3,544		3,728		3,966			3,205			14,443		3,385

THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,042		249		285		293			412			1,239		249
MANAGEMENT FEES		15,914		3,690		3,437		3,239			3,173			13,539		3,359
LEASING & OTHER FEES		5,010		855		763		1,192			1,389			4,199		480

TOTAL — THIRD PARTY MANAGEMENT AND LEASING REVENUES		21,966		4,794		4,485		4,724			4,974			18,977		4,088

OTHER INCOME
TERMINATION FEES		1,717		8		33		26			447			514		394
INTEREST AND OTHER INCOME — CONTINUING OPERATIONS		1,255		116		138		219			242			715		119
INTEREST AND OTHER INCOME — DISCONTINUED OPERATIONS		53		—		19		11			5			35		—

TOTAL INTEREST INCOME & OTHER		3,025		124		190		256			694			1,264		513

COUSINS PROPERTIES INCORPORATED
FUNDS FROM OPERATIONS — SUPPLEMENTAL DETAIL
(in thousands, except per share amounts and percentages)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		17,878			4,958			4,214			4,122			4,099			17,393			4,093

REIMBURSED EXPENSES		5,378			1,859			1,398			1,392			1,648			6,297			1,512

SEPARATION EXPENSES		(3,257	)		(68	)		(33	)		(202	)		(742	)		(1,045	)		(101	)

GENERAL AND ADMINISTRATIVE EXPENSES		(26,198	)		(8,017	)		(6,763	)		(6,172	)		(7,565	)		(28,517	)		(7,400	)

GAIN (LOSS) ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		9,732			(592	)		—			(9,235	)		—			(9,827	)		—

INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER		(8,982	)		(2,215	)		(2,240	)		(2,263	)		(2,264	)		(8,982	)		(2,215	)
TERMINUS 100		(11,208	)		(2,802	)		(2,802	)		(2,802	)		(2,729	)		(11,135	)		(1,842	)
CREDIT FACILITY, UNSECURED (LIBOR LIBOR + 1.75% to 2.25%)		(8,599	)		(1,037	)		(1,277	)		(1,528	)		(1,393	)		(5,235	)		(1,475	)
333 & 555 NORTH POINT CENTER EAST		(1,966	)		(482	)		(479	)		(475	)		(470	)		(1,906	)		(471	)
MERIDIAN MARK PLAZA		(1,886	)		(465	)		(462	)		(425	)		(411	)		(1,763	)		(409	)
LAKESHORE PARK PLAZA		(1,132	)		(280	)		(278	)		(278	)		(276	)		(1,112	)		(275	)
THE POINTS AT WATERVIEW		(1,007	)		(248	)		(247	)		(245	)		(243	)		(983	)		(242	)
600 UNIVERSITY PARK PLACE		(950	)		(235	)		(234	)		(232	)		(232	)		(933	)		(230	)
100 NORTH POINT CENTER EAST		(681	)		(170	)		(170	)		(170	)		(169	)		(679	)		(169	)
200 NORTH POINT CENTER EAST		(681	)		(170	)		(170	)		(170	)		(169	)		(679	)		(169	)
OTHER		(1,945	)		(61	)		(61	)		(58	)		(55	)		(235	)		(47	)
UNSECURED TERM LOAN (LIBOR + 0.70% to 1.20%)		(6,092	)		(1,616	)		(1,866	)		(56	)		—			(3,538	)		—
CAPITALIZED		3,736			—			—			—			—			—			—

SUBTOTAL — CONSOLIDATED		(41,393	)		(9,781	)		(10,286	)		(8,702	)		(8,411	)		(37,180	)		(7,544	)

JOINT VENTURE DEBT:
THE AVENUE MURFREESBORO		(861	)		(197	)		(251	)		(489	)		(472	)		(1,409	)		(458	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,501	)		(371	)		(369	)		(367	)		(365	)		(1,472	)		(364	)
TEN PEACHTREE PLACE		(766	)		(189	)		(189	)		(188	)		(186	)		(752	)		(184	)
TERMINUS 200		—			—			(3	)		(34	)		(118	)		(155	)		(89	)
THE AVENUE EAST COBB		(339	)		(84	)		(83	)		(57	)		(22	)		(246	)		(49	)
TEMCO ASSOCIATES		(122	)		(26	)		(27	)		(27	)		(29	)		(109	)		(26	)
CL REALTY		(215	)		(32	)		(25	)		(25	)		(27	)		(109	)		(22	)
OTHER		(130	)		—			—			—			—			—			—

SUBTOTAL — JOINT VENTURE		(3,934	)		(899	)		(947	)		(1,187	)		(1,219	)		(4,252	)		(1,192	)

TOTAL INTEREST EXPENSE		(45,328	)		(10,680	)		(11,233	)		(9,889	)		(9,630	)		(41,432	)		(8,736	)

IMPAIRMENT LOSSES
IMPAIRMENT LOSS — CONSOLIDATED		(40,512	)		—			(586	)		—			(1,968	)		(2,554	)		(3,508	)
IMPAIRMENT LOSS — OTHER		(24,182	)		—			—			—			(3,746	)		(3,746	)		—
IMPAIRMENT LOSS — JOINT VENTURE INVESTMENTS		(51,058	)		—			—			—			—			—			—

TOTAL — IMPAIRMENT LOSSES		(115,752	)		—			(586	)		—			(5,714	)		(6,300	)		(3,508	)

OTHER EXPENSES
PROPERTY TAXES & OTHER HOLDING COSTS		(4,830	)		(825	)		(834	)		(805	)		(694	)		(3,158	)		(803	)
PREDEVELOPMENT & OTHER		(8,313	)		(37	)		(2,168	)		(104	)		1,051			(1,258	)		(59	)
MINORITY INTEREST EXPENSE		(2,252	)		(526	)		(584	)		(696	)		(734	)		(2,540	)		(581	)
OTHER — JOINT VENTURE		(1,279	)		392			223			42			256			913			43

TOTAL — OTHER EXPENSES		(16,674	)		(996	)		(3,363	)		(1,563	)		(121	)		(6,043	)		(1,400	)

INCOME TAX (PROVISION) BENEFIT		(4,341	)		1,146			(14	)		(25	)		(28	)		1,079			64

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(3,366	)		(567	)		(462	)		(441	)		(414	)		(1,884	)		(563	)
DISCONTINUED OPERATIONS		(16	)		(4	)		(1	)		0			—			(5	)		—
SHARE OF UNCONSOLIDATED JOINT VENTURES		(46	)		(6	)		(5	)		(6	)		(5	)		(22	)		(5	)

TOTAL — NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		(3,428	)		(577	)		(468	)		(447	)		(419	)		(1,911	)		(568	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)

FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
WEIGHTED AVERAGE SHARES		65,495			100,069			101,001			101,893			102,761			101,440			103,530
FFO PER SHARE		(1.40	)		0.14			0.08			0.01			0.10			0.32			0.08

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
BY PROPERTY TYPE
As of and For the Three Months ended March 31, 2011


							Company Share
																Property
				Company’s			% of Total						Weighted			Level
	Metropolitan	Rentable		Ownership			Net Operating			Percent			Average			Debt
Property Description	Area	Square Feet		Interest			Income			Leased			Occupancy (1)			($000)
I. OFFICE OPERATING PROPERTIES
Terminus 100	Atlanta		655,000		100.00	%		14	%		97	%		95	%		139,678
191 Peachtree Tower	Atlanta		1,219,000		100.00	%		12	%		80	%		73	%		—
The American Cancer Society Center	Atlanta		996,000		100.00	%		10	%		95	%		86	%		136,000
One Georgia Center (3)	Atlanta		376,000		100.00	%		4	%		97	%		97	%		—
Meridian Mark Plaza	Atlanta		160,000		100.00	%		3	%		97	%		91	%		26,809
Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		3	%		100	%		98	%		24,220
Ten Peachtree Place (2)	Atlanta		260,000		50.00	%		2	%		94	%		94	%		13,319
555 North Point Center East	Atlanta		152,000		100.00	%		2	%		98	%		98	%		13,092
200 North Point Center East	Atlanta		130,000		100.00	%		2	%		100	%		100	%		12,372
333 North Point Center East	Atlanta		130,000		100.00	%		1	%		98	%		97	%		13,092
100 North Point Center East	Atlanta		128,000		100.00	%		1	%		94	%		94	%		12,372
Inhibitex	Atlanta		51,000		100.00	%		1	%		100	%		100	%		—
Galleria 75	Atlanta		111,000		100.00	%		0	%		67	%		65	%		—
Cosmopolitan Center	Atlanta		84,000		100.00	%		0	%		93	%		93	%		—
Terminus 200 (2)	Atlanta		566,000		20.00	%		0	%		72	%		23	%		9,787

GEORGIA			5,376,000					56	%		91	%		85	%		400,741

Palisades West	Austin		373,000		50.00	%		5	%		97	%		97	%		—
The Points at Waterview	Dallas		203,000		100.00	%		1	%		84	%		86	%		16,480

TEXAS			576,000					7	%		90	%		91	%		16,480

Lakeshore Park Plaza (3)	Birmingham		197,000		100.00	%		2	%		95	%		95	%		17,451
600 University Park Place (3)	Birmingham		123,000		100.00	%		1	%		89	%		61	%		12,228

ALABAMA			320,000					3	%		92	%		82	%		29,679

Gateway Village (2)	Charlotte		1,065,000		50.00	%		1	%		100	%		100	%		46,815
Presbyterian Medical Plaza	Charlotte		69,000		11.50	%		0	%		78	%		78	%		—

NORTH CAROLINA			1,134,000					1	%		100	%		100	%		46,815


TOTAL OFFICE OPERATING PROPERTIES			7,406,000					66	%		92	%		87	%		493,715


II. RETAIL OPERATING PROPERTIES
The Avenue Forsyth (3)	Atlanta		523,000		100.00	%		8	%		86	%		67	%		—
The Avenue Webb Gin	Atlanta		322,000		100.00	%		5	%		88	%		86	%		—
The Avenue East Cobb	Atlanta		230,000		11.50	%		1	%		94	%		93	%		4,195
North Point MarketCenter	Atlanta		401,000		10.32	%		0	%		99	%		97	%		—
The Avenue West Cobb	Atlanta		255,000		11.50	%		0	%		97	%		95	%		—
The Avenue Peachtree City	Atlanta		183,000		11.50	%		0	%		91	%		88	%		—

GEORGIA			1,914,000					15	%		88	%		77	%		4,195

The Avenue Carriage Crossing (3)	Memphis		511,000		100.00	%		4	%		88	%		88	%		—
The Avenue Murfreesboro	Nashville		751,000		50.00	%		4	%		85	%		85	%		50,992
Mt. Juliet Village (2)	Nashville		91,000		50.50	%		1	%		77	%		75	%		3,106
The Shops of Lee Village (2)	Nashville		74,000		50.50	%		0	%		77	%		83	%		2,803
Creek Plantation Village (2)	Chattanooga		78,000		50.50	%		0	%		91	%		91	%		3,172

TENNESSEE			1,505,000					10	%		86	%		87	%		60,073

Tiffany Springs MarketCenter (3)	Kansas City		238,000		100.00	%		3	%		82	%		80	%		—

MISSOURI			238,000					3	%		82	%		80	%		—

Highland City Town Center (2)	Lakeland		96,000		50.50	%		1	%		87	%		87	%		5,462
The Avenue Viera	Viera		332,000		11.50	%		0	%		95	%		92	%		—
Viera MarketCenter	Viera		178,000		11.50	%		0	%		94	%		94	%		—

FLORIDA			606,000					1	%		91	%		90	%		5,462

Greenbrier MarketCenter	Chesapeake		376,000		10.32	%		1	%		100	%		100	%		—

VIRGINIA			376,000					1	%		100	%		100	%		—

Los Altos MarketCenter	Long Beach		157,000		10.32	%		0	%		100	%		100	%		—

CALIFORNIA			157,000					0	%		100	%		100	%		—


TOTAL RETAIL OPERATING PROPERTIES			4,796,000					30	%		87	%		82	%		69,730

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
BY PROPERTY TYPE
As of and For the Three Months ended March 31, 2011


							Company Share
																Property
				Company’s			% of Total Net						Weighted			Level
	Metropolitan	Rentable		Ownership			Operating			Percent			Average			Debt
Property Description	Area	Square Feet		Interest			Income			Leased			Occupancy (1)			($000)
III. INDUSTRIAL OPERATING PROPERTIES
King Mill Distribution Park — Building 3 (3)	Atlanta		796,000		100.00	%		2	%		100	%		100	%		—

GEORGIA			796,000					2	%		100	%		100	%		—

Lakeside Ranch Business Park — Building 20 (3)	Dallas		749,000		100.00	%		1	%		91	%		77	%		—

TEXAS			749,000					1	%		91	%		77	%		—


TOTAL INDUSTRIAL OPERATING PROPERTIES			1,545,000					3	%		96	%		89	%		—




TOTAL OPERATING PORTFOLIO			13,747,000					100	%		91	%		86	%		563,445


(1)		Weighted average occupancy represents an average of the square footage occupied at the property.

(2)		This property is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale may be disproportionate.

(3)		This property is shown as 100% as it is owned through a consolidated joint venture. The joint venture is with a third party who has contributed equity and the joint venture partner may receive distributions from the venture in connection with its equity ownership.

COUSINS PROPERTIES INCORPORATED
SAME PROPERTY PERFORMANCE (1)
($ in thousands)


	Three Months Ended						Q1’ 11 vs			Q1’ 11 vs
	March 31,		March 31,		December 31,		Q1’ 10			Q4’ 10
	2011		2010		2010		% Change			% Change
Rental Property Revenues (2)
Office		31,310		30,446		30,570		2.8	%		2.4	%
Retail		11,298		10,518		11,151		7.4	%		1.3	%

Total Rental Property Revenues		42,608		40,963		41,720		4.0	%		2.1	%

Rental Property Operating Expenses (2)
Office		12,695		12,713		11,585		-0.1	%		9.6	%
Retail		3,400		3,644		4,097		-6.7	%		-17.0	%

Total Rental Property Operating Expenses		16,095		16,356		15,683		-1.6	%		2.6	%

Same Property Net Operating Income
Office		18,615		17,733		18,984		5.0	%		-1.9	%
Retail		7,898		6,874		7,053		14.9	%		12.0	%

Total Same Property Net Operating Income		26,513		24,607		26,038		7.7	%		1.8	%

	Three Months Ended						Q1’ 11 vs			Q1’ 11 vs
	March 31,		March 31,		December 31,		Q1’ 10			Q4’ 10
	2011		2010		2010		% Change			% Change
Cash Basis Same Property Net Operating Income (3)
Office		17,154		16,876		17,964		1.6	%		-4.5	%
Retail		7,582		6,532		6,703		16.1	%		13.1	%

Total Cash Basis Same Property Net Operating Income		24,735		23,408		24,667		5.7	%		0.3	%


(1)		Same Properties include those office and retail properties that were operational on January 1, 2010, excluding properties subsequently sold.

(2)		Rental Property Revenues and Expenses includes rental property revenues and expenses of the Company and its share of unconsolidated joint ventures.

(3)		Cash Basis Same Property Net Operating Income is Net Operating Income of the Company and its share of unconsolidated joint ventures. It excludes straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents.

COUSINS PROPERTIES INCORPORATED
SQUARE FEET EXPIRING
As of March 31, 2011

OFFICE

As of March 31, 2011, the Company’s office portfolio included 21 commercial office buildings. The weighted average remaining lease term of these office buildings was approximately seven years as of March 31, 2011. Most of the major tenant leases in these buildings provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2020 &
	2011			2012			2013			2014			2015			2016			2017			2018			2019			Thereafter			Total
*Company Share*
Square Feet Expiring		409,248			176,921			541,308			264,310			427,725			706,665			471,734			272,724			540,155			1,561,297			5,372,087
% of Leased Space		8	%		3	%		10	%		5	%		8	%		13	%		9	%		5	%		10	%		29	%		100	%
Annual Contractual Rent ($000’s) (1)	$	6,512		$	3,426		$	12,406		$	5,529		$	9,206		$	13,681		$	12,321		$	7,909		$	12,476		$	37,785		$	121,251
Annual Contractual Rent/Sq. Ft. (1)	$	15.91		$	19.37		$	22.92		$	20.92		$	21.52		$	19.36		$	26.12		$	29.00		$	23.10		$	24.20		$	22.57

RETAIL

As of March 31, 2011, the Company’s retail portfolio included 17 retail properties. The weighted average remaining lease term of these retail properties was approximately eight years as of March 31, 2011. Most of the major tenant leases in these retail properties provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2020 &
	2011			2012			2013			2014			2015			2016			2017			2018			2019			Thereafter			Total
*Company Share*
Square Feet Expiring (2)		74,360			67,208			70,643			99,124			104,855			273,127			128,112			329,465			319,525			599,751			2,066,170
% of Leased Space		4	%		3	%		4	%		5	%		5	%		13	%		6	%		16	%		15	%		29	%		100	%
Annual Contractual Rent ($000’s) (1)	$	1,281		$	1,210		$	1,716		$	1,993		$	2,330		$	6,175		$	3,206		$	7,402		$	6,791		$	7,088		$	39,192
Annual Contractual Rent/Sq. Ft. (1)	$	17.22		$	18.01		$	24.28		$	20.10		$	22.23		$	22.61		$	25.03		$	22.47		$	21.25		$	11.82		$	18.97


(1)		Annual Contractual Rent shown is the estimated rate in the year of expiration. It includes the minimum contractual rent paid by the tenant which, in most of the office leases, includes a base year of operating expenses.

(2)		Certain leases contain termination options, with or without penalty, if co-tenancy clauses or sales volume levels are not achieved. The expiration date per the lease is used for these leases in the above table, although early termination is possible.

COUSINS PROPERTIES INCORPORATED
TOP 20 TENANTS
BASED ON ANNUALIZED BASE RENT
As of March 31, 2011


			Company Share of			Average
			Annualized Base			Remaining Lease
	Tenant (1)	Product Type	Rent (2)			Term (Years)
1.	Deloitte & Touche	Office		4.4	%		13.2
2.	Georgia Department of Transportation	Office		3.9	%		8.3
3.	American Cancer Society	Office		3.4	%		11.3
4.	AGL Services Company	Office		2.4	%		2.0
5.	Intemap Network Services	Office		2.4	%		9.1
6.	Morgan Stanley	Office		2.1	%		6.2
7.	MedAssets Net Revenue Systems LLC	Office		2.0	%		4.0
8.	Dimensional Fund Advisors	Office		2.0	%		12.5
9.	Briggs & Stratton Corporation	Industrial		1.7	%		3.5
10.	Bombardier Aerospace Corporation	Office		1.6	%		1.9
11.	CB Richard Ellis, Inc.	Office		1.5	%		8.3
12.	US South Communications	Office		1.5	%		9.1
13.	Bank of America (3)	Office		1.5	%		5.6
14.	Emory University	Office		1.4	%		5.8
15.	Northside Hospital	Office		1.3	%		6.1
16.	Wells Fargo Bank, N.A.	Office		1.2	%		3.7
17.	Cumulus Media, Inc.	Office		1.2	%		5.0
18.	Premiere Global Services, Inc.	Office		1.2	%		6.7
19.	HD Supply Facilities Maintenance, LTD.	Industrial		1.2	%		7.4
20.	Turner Broadcasting System, Inc.	Office		1.2	%		0.2


	Total of Top 20 Tenants			44.1	%		6.0


(1)		In some cases, the actual tenant may be an affiliate of the entity shown.

(2)		Annualized Base Rent represents the annualized minimum rent paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Base Rent represents the annualized minimum contractual rent the tenant will pay in the first month it is required to pay rent.

(3)		The Company’s economic exposure for this tenant is limited through a joint venture arrangement to a fixed return.


NOTE:		This schedule includes tenants whose leases have commenced and/or have taken occupancy. Leases that have been signed but have not commenced are excluded from this schedule.

COUSINS PROPERTIES INCORPORATED
INVENTORY OF COMMERCIAL LAND HELD
As of March 31, 2011


		Company’s			Developable		Cost
	Metropolitan	Ownership			Land Area		Basis
Property Description	Area	Interest			(Acres)		($000) (1)
Wildwood Office Park	Atlanta		50.00	%		36	$	21,186

Terminus	Atlanta		100.00	%		4		12,652	(2)

615 Peachtree Street	Atlanta		100.00	%		2		12,492	(2)

The Avenue Forsyth (3) (4)	Atlanta		100.00	%		15		10,442	(2)

King Mill Distribution Park	Atlanta		100.00	%		86		10,089	(2)

Jefferson Mill Business Park	Atlanta		100.00	%		117		9,196	(2)

549 / 555 / 557 Peachtree Street	Atlanta		100.00	%		1		8,794	(2)

North Point	Atlanta		100.00	%		42		6,519	(2)

Wildwood Office Park	Atlanta		100.00	%		23		1,014	(2)

The Avenue Webb Gin (3)	Atlanta		100.00	%		2		946	(2)

Georgia						328		93,330


Round Rock Land	Austin		100.00	%		60		17,115	(2)

Lakeside Ranch Business Park (5)	Dallas		100.00	%		51		9,821	(2)

Research Park V	Austin		100.00	%		6		4,968	(2)

Lancaster (5)	Dallas		100.00	%		47		4,844	(2)

Texas						164		36,748


The Avenue Murfreesboro (3) (5)	Nashville		50.00	%		6		4,099

The Avenue Carriage Crossing (3) (5)	Memphis		100.00	%		2		1,969	(2)

The Shops of Lee Village (3) (5)	Nashville		50.50	%		6		1,944

Tennessee						14		8,012


Highland City Town Center (3) (5)	Lakeland		50.50	%		56		5,469

Florida						56		5,469


TOTAL LAND HELD						562	$	143,559


COMPANY’S SHARE OF TOTAL						510	$	116,654


(1)		Cost Basis reflects the Company’s basis for consolidated properties and the venture’s basis for joint venture properties. In some cases, the Company’s share of a venture’s basis may be different than the Company’s investment due to capitalization of costs and impairments at the Company’s investment level.

(2)		The cost basis of these consolidated properties aggregates to $110,861,000. Including the basis of the Blalock acreage of $9,650,000 and Handy Road acreage of $3,374,000, which are both included on the Inventory of Lots and Acres in Residential Projects schedule, these properties total $123,885,000, which is reflected on the Condensed Consolidated Balance Sheet.

(3)		Land is adjacent to an existing retail center and will either be sold or developed as an additional phase of the retail center.

(4)		A portion of the developable land area is owned 100% by the Company and a portion is owned 88.5% by a consolidated joint venture.

(5)		This project is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale most likely will be disproportionate.

COUSINS PROPERTIES INCORPORATED
INVENTORY OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS
As of March 31, 2011


		Company’s			Lots						Tracts (2)				Cost
		Ownership			Estimated to		Total		Remaining		Sold since				Basis
Description	Metropolitan Area	Interest			be Developed (1)		Sold		to be Sold		Inception		Remaining		($000’s) (3)
Blalock Lakes (6)	Atlanta		100.00	%		154		19		135		—		1,205	$	49,667	(4)

The Georgian	Atlanta		37.50	%		1,385		288		1,097		—		—		23,674

Seven Hills	Atlanta		50.00	%		1,081		636		445		1,070		113		16,699

Callaway Gardens (5) (6)	Pine Mountain		100.00	%		559		30		529		—		—		15,631	(4)

Paulding County	Atlanta		50.00	%		—		—		—		764		5,731		14,846

West Park	Atlanta		50.00	%		84		21		63		—		—		5,332

The Lakes at Cedar Grove	Atlanta		100.00	%		906		727		179		—		—		4,653	(4)

Handy Road	Atlanta		50.00	%		—		—		—		—		1,187		3,374

Tillman Hall	Atlanta		100.00	%		29		7		22		—		—		2,534	(4)

Harris Place	Atlanta		50.00	%		27		18		9		—		—		652

River’s Call	Atlanta		100.00	%		107		95		12		—		—		477	(4)

Longleaf at Callaway (6)	Pine Mountain		100.00	%		138		125		13		—		—		386	(4)

Bentwater	Atlanta		50.00	%		1,676		1,671		5		—		—		16

Georgia						6,146		3,637		2,509		1,834		8,236		137,941


Southern Trails	Houston		40.00	%		1,027		452		575		114		—		17,116

Long Meadow Farms	Houston		18.75	%		2,083		711		1,372		133		113		12,558

Waterford Park	Houston		50.00	%		210		—		210		—		90		8,530

Padre Island	Corpus Christi		50.00	%		—		—		—		—		15		7,545

Summer Lakes	Houston		50.00	%		1,130		357		773		56		—		7,067

Village Park	Dallas/Fort Worth		50.00	%		571		356		215		3		2		6,947

Bar C Ranch	Dallas/Fort Worth		50.00	%		1,199		251		948		—		—		6,780

Summer Creek Ranch	Dallas/Fort Worth		50.00	%		1,274		796		478		624		71		5,074

Stonewall Estates	San Antonio		25.00	%		388		271		117		—		—		4,951

Village Park North	Dallas/Fort Worth		50.00	%		189		72		117		23		—		2,342

Stillwater Canyon	Dallas/Fort Worth		50.00	%		335		225		110		—		—		2,325

Texas						8,406		3,491		4,915		953		291		81,235


Bridle Path Estates	Tampa/St. Petersburg		50.00	%		87		—		87		—		—		3,026

Creekside Oaks	Tampa/St. Petersburg		50.00	%		301		171		130		—		—		2,855

Manatee River Plantation	Tampa/St. Petersburg		50.00	%		457		348		109		—		—		2,604


Florida						845		519		326		—		—		8,485


TOTAL INVENTORY OF LOTS AND ACRES IN RESIDENTIAL PROJECTS						15,397		7,647		7,750		2,787		8,527	$	227,661


COMPANY SHARE OF TOTAL						7,621		3,954		3,667		1,341		4,831	$	133,666


(1)		This estimate represents the total projected development capacity for a development on owned land currently anticipated to be developed as lots. The lot numbers shown include lots currently developed or to be developed over time, based on management’s current estimates, and lots sold to date from inception of development.

(2)		Tracts represents acres of land adjacent to the residential community that may be sold to third parties in large tracts for residential, multi-family or commercial development.

(3)		Cost Basis reflects the Company’s basis for consolidated properties and the venture’s basis for joint venture properties. In some cases, the Company’s share of a venture’s basis may be different than the Company’s investment due to capitalization of costs and impairments at the Company’s investment level.

(4)		The cost basis of these consolidated properties aggregates to $73,348,000. Excluding the basis of the Blalock acreage of $9,650,000, these properties total $63,698,000, which is reflected on the Condensed Consolidated Balance Sheet.

(5)		Company’s ownership interest is shown at 100% as Callaway Gardens is owned in a joint venture which is consolidated with the Company. The partner is entitled to a share of the profits after the Company’s capital is recovered.

(6)		All lots at Longleaf at Callaway and certain lots at Callaway Gardens and Blalock Lakes are sold to a homebuilding venture, of which the Company is a joint venture partner. As a result of this relationship, the Company defers some or all profits until houses are built and sold, rather than at the time lots are sold, as is the case with the Company’s other residential developments.

COUSINS PROPERTIES INCORPORATED
DEBT OUTSTANDING
As of March 31, 2011
($ in thousands)


				Rate																											Company’s
	Ownership			End of			Maturity			Company’s Share of Debt Maturities and Principal Payments																					Share
Description (Interest Rate Base, if not fixed)	Percentage			Quarter			Date			2011			2012			2013			2014			2015			Thereafter			Total			Recourse (1)
CONSOLIDATED DEBT

Floating Rate Debt
Handy Road Associates (Prime + 1.0%, not less than 6%)		50.00	%(2)		6.00	%		3/30/2011		$	3,374		$	—		$	—		$	—		$	—		$	—		$	3,374		$	—
Credit Facility, Unsecured (LIBOR + 1.75%-2.25%; $350mm facility) (3)		100.00	%		2.24	%		8/29/2012			—			93,700			—			—			—			—			93,700			93,700

Total Floating Rate Debt											3,374			93,700			—			—			—			—			97,074			93,700


Fixed Rate Debt
600 University Park Place		100.00	%		7.38	%		8/10/2011			12,228			—			—			—			—			—			12,228			—
333/555 North Point Center East		100.00	%		7.00	%		11/1/2011	(4)		26,184			—			—			—			—			—			26,184			26,184
100/200 North Point Center East		100.00	%		5.39	%		6/1/2012			266			24,478			—			—			—			—			24,744			—
Lakeshore Park Plaza		100.00	%		5.89	%		8/1/2012			288			17,163			—			—			—			—			17,451			—
Callaway Gardens		100.00	%		4.13	%		11/18/2013			—			—			175			—			—			—			175			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016			345			484			512			541			573			14,025			16,480			—
The American Cancer Society Center (5)		100.00	%		6.45	%		9/1/2017			350			1,408			1,528			1,631			1,741			129,342			136,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020			255			359			381			405			430			24,979			26,809			—
Terminus 100		100.00	%		5.25	%		1/1/2023			1,484			2,071			2,182			2,300			2,424			129,217			139,678			—

Total Fixed Rate Date											41,400			45,963			4,778			4,877			5,168			297,563			399,749			26,184


TOTAL CONSOLIDATED DEBT											44,774			139,663			4,778			4,877			5,168			297,563			496,823			119,884


UNCONSOLIDATED SECURED DEBT

Floating Rate Debt
Pine Mountain Builders (LIBOR + 4.0%, not less than 5%)		50.00	%		5.00	%		6/11/2011			332			—			—			—			—			—			332			—
Summer Lakes (Prime + 1.5%)		50.00	%		4.75	%		8/22/2011			496			—			—			—			—			—			496			—
Waterford Park (Prime + 1.5%)		50.00	%		4.75	%		11/8/2011			580			—			—			—			—			—			580			—
Bentwater Links (LIBOR + 6.5%)		50.00	%		6.74	%		5/23/2012			—			1,447			—			—			—			—			1,447			—
The Avenue Murfreesboro (LIBOR + 3.0%; $113.2mm facility)		50.00	%		3.24	%		7/20/2013			—			—			50,992			—			—			—			50,992			26,220
Terminus 200 (LIBOR + 2.5%; $92mm facility)		20.00	%		2.74	%		12/31/2013			—			—			9,787			—			—			—			9,787			—
Highland City Town Center (LIBOR + 2.65%)		50.50	%(6)		2.89	%		1/1/2016	(7)		73			103			109			116			123			4,938			5,462			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(6)		2.89	%		1/1/2016	(7)		43			60			64			67			71			2,867			3,172			—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)		50.50	%(6)		3.09	%		1/1/2016	(7)		—			—			50			56			59			2,941			3,106			1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)		50.50	%(6)		3.09	%		1/1/2016	(7)		—			—			45			50			53			2,655			2,803			1,388

Total Floating Rate Debt											1,524			1,610			61,047			289			306			13,401			78,177			29,146


Fixed Rate Debt
Emory University Hospital Midtown Medical Office Tower		50.00	%		5.90	%		6/1/2013			404			568			23,248			—			—			—			24,220			—
Ten Peachtree Place		50.00	%		5.39	%		4/1/2015			223			311			329			347			12,109			—			13,319			—
Gateway Village		50.00	%		6.41	%		12/1/2016			5,266			7,427			7,917			8,440			8,997			8,768			46,815			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017			51			71			74			78			81			3,840			4,195			—

Total Fixed rate debt											5,944			8,377			31,568			8,865			21,187			12,608			88,549			—


TOTAL UNCONSOLIDATED DEBT										$	7,468		$	9,987		$	92,615		$	9,154		$	21,493		$	26,009		$	166,726		$	29,146


TOTAL DEBT										$	52,242		$	149,650		$	97,393		$	14,031		$	26,661		$	323,572		$	663,549		$	149,030


TOTAL MATURITIES										$	43,194		$	136,788		$	84,202		$	—		$	12,109		$	298,616		$	574,909


% OF MATURITIES											7	%		24	%		15	%		0	%		2	%		52	%		100	%

COUSINS PROPERTIES INCORPORATED
DEBT OUTSTANDING
As of March 31, 2011
($ in thousands)

Floating and Fixed Rate Debt Analysis


									Weighted
									Average
			% of Total			Stated Weighted			Maturity
			Debt			Average Rate			(Years)

Floating Rate Debt	$	175,251		26	%		2.75	%		2.0
Fixed Rate Debt		488,298		74	%		5.96	%		6.8

Total Debt	$	663,549		100	%		5.11	%		5.5

Unsecured and Secured Debt Analysis


									Weighted
									Average
			% of Total			Stated Weighted			Maturity
			Debt			Average Rate			(Years)

Unsecured Debt	$	93,700		14	%		2.24	%		1.4
Secured Debt		569,849		86	%		5.58	%		6.2

Total Debt	$	663,549		100	%		5.11	%		5.5


(1)		Non-recourse loans are subject to customary carve-outs.

(2)		The Company consolidates the Handy Road venture even though it owns 50%. The mortgage note is past due and the venture notified the lender that it did not intend to repay this note. The bank has commenced foreclosure procedures and it is anticipated this process will be complete in the second quarter of 2011.

(3)		Total capacity of the Credit Facility is $350 million. The maximum amount the Company may borrow at any point in time is based on certain covenant calculations and by amounts drawn and letters of credit outstanding. Based on these calculations the Company could borrow $250.1 million at March 31, 2011. The maturity schedule assumes the one year extension is elected. The interest rate on this instrument as of March 31, 2011 was LIBOR plus a spread of 2%.

(4)		The Company has notified the lender of its intent to repay this mortgage note in full on June 1, 2011.

(5)		The real estate and other assets of this property are restricted under a loan agreement such that these assets are not available to settle other debts of the Company.

(6)		The ownership percentage and the allocation of results of operations and/or gain or losses on property sales may be disproportionate.

(7)		These loans may be extended for two additional one-year terms, provided certain conditions are met.

COUSINS PROPERTIES INCORPORATED
CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts, percentages and ratios)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:
TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS		2,745			334			954			2,378			1,697			5,363			1,896
SECOND GENERATION BUILDING IMPROVEMENTS		1,339			81			270			192			81			624			25

		4,084			415			1,224			2,570			1,778			5,987			1,921
RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,415			594			500			767			752			2,613			51
TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX		6,499			1,009			1,724			3,337			2,530			8,600			1,972
NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		57,115			14,743			14,991			14,696			16,269			60,699			15,252
RETAIL CONSOLIDATED PROPERTIES		17,409			4,895			4,992			5,176			5,016			20,079			5,739
INDUSTRIAL CONSOLIDATED PROPERTIES		1,774			586			681			830			953			3,050			909
OTHER RENTAL OPERATIONS - CONSOLIDATED		30			18			59			15			4			96			1

NET OPERATING INCOME - CONSOLIDATED		76,328			20,242			20,723			20,717			22,242			83,924			21,900
RENTAL PROPERTY REVENUES		139,504			34,773			35,969			35,946			36,013			142,701			36,148
RENTAL PROPERTY OPERATING EXPENSES		(63,176	)		(14,531	)		(15,246	)		(15,229	)		(13,771	)		(58,777	)		(14,248	)

NET OPERATING INCOME - CONSOLIDATED		76,328			20,242			20,723			20,717			22,242			83,924			21,900
INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		10,283			2,440			2,291			432			463			5,626			145
RENTAL PROPERTY OPERATING EXPENSES		(3,391	)		(653	)		(672	)		(136	)		(25	)		(1,486	)		(9	)

NET OPERATING INCOME		6,892			1,787			1,619			296			438			4,139			136
INTEREST INCOME		53			—			19			11			5			35			—
INTEREST EXPENSE		(1,552	)		—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(16	)		(4	)		(1	)		—			—			(5	)		—

FFO		5,378			1,783			1,637			307			443			4,169			136
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(2,926	)		(715	)		(331	)		(180	)		(190	)		(1,416	)		(64	)

INCOME FROM DISCONTINUED OPERATIONS		2,452			1,068			1,305			127			253			2,753			72

COUSINS PROPERTIES INCORPORATED
CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts, percentages and ratios)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

MULTI-FAMILY SALES AND COST OF SALES:
CONSOLIDATED:
MULTI-FAMILY SALES - CONSOLIDATED:
MULTI-FAMILY SALES		30,841			10,146			7,943			6,637			9,716			34,442			4,657
MULTI-FAMILY COST OF SALES		(25,629	)		(7,970	)		(6,108	)		(5,190	)		(7,749	)		(27,017	)		(2,500	)

MULTI-FAMILY SALES LESS COST OF SALES - CONSOLIDATED		5,212			2,176			1,835			1,447			1,967			7,425			2,157

JOINT VENTURES:
MULTI-FAMILY SALES - JOINT VENTURES:
MULTI-FAMILY SALES		175			389			—			—			—			389			—
MULTI-FAMILY COST OF SALES		(116	)		(266	)		—			(3	)		3			(266	)		(5	)
OTHER, NET		56			(6	)		45			168			143			350			22

MULTI-FAMILY SALES LESS COST OF SALES - SHARE OF JOINT VENTURE		115			117			45			165			146			473			17

TOTAL MULTI-FAMILY FFO		5,327			2,293			1,880			1,612			2,113			7,898			2,174

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES - CONSOLIDATED:
RESIDENTIAL LOT SALES		1,746			390			316			630			1,178			2,514			165
OUTPARCEL SALES		5,675			13,429			—			—			—			13,429			—

TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		7,421			13,819			316			630			1,178			15,943			165

RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		1,265			260			275			549			856			1,940			119
OUTPARCEL COST OF SALES		3,758			8,836			—			—			(77	)		8,759			(50	)

TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED		5,023			9,096			275			549			779			10,699			69

TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		1,185			697			1,002			(1	)		(1	)		1,697			—
OTHER INVESTMENT PROPERTY SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		58			—			—			—			—			—			—

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES LESS COST OF SALES - CONSOLIDATED		3,641			5,420			1,043			80			398			6,941			96

SUMMARY - CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		481			130			41			81			322			574			46
OUTPARCEL SALES LESS COST OF SALES		1,917			4,593			—			—			77			4,670			50
TRACT SALES LESS COST OF SALES		1,185			697			1,002			(1	)		(1	)		1,697			—
OTHER INVESTMENT PROPERTY SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		58			—			—			—			—			—			—

TOTAL CONSOLIDATED SALES LESS COST OF SALES		3,641			5,420			1,043			80			398			6,941			96

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts, percentages and ratios)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

JOINT VENTURES:
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES - JOINT VENTURES:
RESIDENTIAL LOT SALES		4,158			1,675			1,328			1,590			3,175			7,768			1,186
OUTPARCEL SALES		—			516			—			—			—			516			—
TRACT SALES		658			61			167			—			10,405			10,633			572

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES		4,816			2,252			1,495			1,590			13,580			18,917			1,758

RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES - JOINT VENTURES:
RESIDENTIAL LOT COST OF SALES		3,627			1,155			870			1,193			2,678			5,896			1,006
OUTPARCEL COST OF SALES		—			430			—			4			—			434			—
TRACT COST OF SALES		394			15			65			(2	)		6,948			7,026			552

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES		4,021			1,600			935			1,195			9,626			13,356			1,558
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS
COST OF SALES - JOINT VENTURES		795			652			560			395			3,954			5,561			200

SUMMARY - JOINT VENTURES:
RESIDENTIAL LOT SALES LESS COST OF SALES		531			520			458			397			497			1,872			180
OUTPARCEL SALES LESS COST OF SALES		—			86			—			(4	)		—			82			—
TRACT SALES LESS COST OF SALES		264			46			102			2			3,457			3,607			20
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF
SALES - SHARE OF JOINT VENTURES		795			652			560			395			3,954			5,561			200
TOTAL RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT
PROPERTY SALES LESS COST OF SALES		4,436			6,072			1,603			475			4,352			12,502			296

INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES		12,051			2,976			2,987			3,121			3,158			12,242			3,357
RETAIL PROPERTIES		7,585			1,976			1,979			1,993			2,037			7,985			2,753

NET OPERATING INCOME		19,636			4,952			4,966			5,114			5,195			20,227			6,110
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES		795			652			560			395			3,954			5,561			200
MULTI-FAMILY SALES LESS COST OF SALES		115			117			45			165			146			473			17
INTEREST EXPENSE		(3,934	)		(899	)		(947	)		(1,187	)		(1,219	)		(4,252	)		(1,192	)
OTHER EXPENSE		(1,279	)		392			223			42			256			913			43
IMPAIRMENT LOSSES		(24,182	)		—			—			—			(3,746	)		(3,746	)		—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(46	)		(6	)		(5	)		(6	)		(5	)		(22	)		(5	)

FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES		(8,895	)		5,208			4,842			4,523			4,581			19,154			5,173
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		12			—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(8,754	)		(2,288	)		(2,448	)		(2,344	)		(2,581	)		(9,661	)		(2,678	)

NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		(17,637	)		2,920			2,394			2,179			2,000			9,493			2,496

COUSINS PROPERTIES INCORPORATED
CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts, percentages and ratios)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END		7.63			8.31			6.74			7.14			8.34			8.34			8.35
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		99,782			100,866			101,767			102,635			103,392			103,392			103,631

COMMON STOCK CAPITALIZATION		761,337			838,196			685,910			732,814			862,289			862,289			865,319

PREFERRED STOCK-SERIES A-PRICE AT LIQUIDATION VALUE		74,827			74,827			74,827			74,827			74,827			74,827			74,827
PREFERRED STOCK-SERIES B-PRICE AT LIQUIDATION VALUE		94,775			94,775			94,775			94,775			94,775			94,775			94,775

PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602

DEBT		590,208			580,979			580,378			514,363			509,509			509,509			496,823
SHARE OF UNCONSOLIDATED DEBT		197,055			195,250			158,290			152,391			172,325			172,325			166,726

DEBT (INCLUDING SHARE OF UNCONSOLIDATED)		787,263			776,229			738,668			666,754			681,834			681,834			663,549

TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470

LEVERAGE RATIOS
DEBT (INCLUDING SHARE OF UNCONSOLIDATED)		787,263			776,229			738,668			666,754			681,834			681,834			663,549
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470
DEBT/TOTAL MARKET CAPITALIZATION		46	%		44	%		46	%		42	%		40	%		40	%		39	%

DEBT (INCLUDING SHARE OF UNCONSOLIDATED)		787,263			776,229			738,668			666,754			681,834			681,834			663,549
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602

DEBT + PREFERRED		956,863			945,829			908,268			836,354			851,434			851,434			833,149
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470
DEBT + PREFERRED/ TOTAL MARKET CAPITALIZATION		56	%		53	%		57	%		53	%		50	%		50	%		49	%
RECOURSE DEBT (INCLUDING SHARE OF UNCONSOLIDATED)		222,507			215,544			198,077			127,457			167,258			167,258			149,030
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470
RECOURSE DEBT/TOTAL MARKET CAPITALIZATION		13	%		12	%		12	%		8	%		10	%		10	%		9	%
EBITDA
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
INTEREST EXPENSE		45,328			10,680			11,233			9,889			9,630			41,432			8,736
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		3,428			577			468			447			419			1,911			568
INCOME TAX (PROVISION) BENEFIT		4,341			(1,146	)		14			25			28			(1,079	)		(64	)
IMPAIRMENT LOSSES		115,752			—			586			—			5,714			6,300			3,508
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT		(9,732	)		592			—			9,235			—			9,827			—
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227

EBITDA		87,181			27,910			25,372			23,708			27,821			104,811			24,097

COVERAGE RATIOS
EBITDA		87,181			27,910			25,372			23,708			27,821			104,811			24,097
INTEREST EXPENSE (INCLUDING SHARE OF UNCONSOLIDATED)		45,328			10,680			11,233			9,889			9,630			41,432			8,736
INTEREST COVERAGE RATIO		1.92			2.61			2.26			2.40			2.89			2.53			2.76

INTEREST EXPENSE (INCLUDING SHARE OF UNCONSOLIDATED)		45,328			10,680			11,233			9,889			9,630			41,432			8,736
SCHEDULED PRINCIPAL PAYMENTS		3,955			842			853			1,489			1,245			4,429			986
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227

FIXED CHARGES		62,190			14,749			15,313			14,604			14,102			58,768			12,949
EBITDA		87,181			27,910			25,372			23,708			27,821			104,811			24,097
FIXED CHARGES COVERAGE RATIO		1.40			1.89			1.66			1.62			1.97			1.78			1.86

DEBT (INCLUDING SHARE OF UNCONSOLIDATED)		787,263			776,229			738,668			666,754			681,834			681,834			663,549
ANNUALIZED EBITDA		87,181			111,640			101,488			94,832			111,284			104,811			96,388
DEBT/ANNUALIZED EBITDA		9.03			6.95			7.28			7.03			6.13			6.51			6.88

COUSINS PROPERTIES INCORPORATED
CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts, percentages and ratios)


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH		22,710			2,997			3,034			3,060			3,085			12,176			4,653
COMMON STOCK		19,711			5,984			6,046			6,100			6,152			24,282			—

COMMON DIVIDENDS		42,421			8,981			9,080			9,160			9,237			36,458			4,653
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
FFO PAYOUT RATIO		-46	%		64	%		115	%		1034	%		92	%		111	%		57	%

FFO BEFORE CERTAIN CHARGES
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
IMPAIRMENT LOSSES		115,752			—			586			—			5,714			6,300			3,508
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT AND SWAP TERMINATION FEE		(9,732	)		592			—			9,235			—			9,827			—
VALUATION ALLOWANCES ON DEFERRED TAX ASSETS		15,907			—			—			—			—			—			—
SEPARATION CHARGES		3,257			68			33			202			742			1,045			101

FFO BEFORE CERTAIN CHARGES		40,341			14,640			10,463			10,323			15,259			50,685			11,731
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		105	%		61	%		87	%		89	%		61	%		72	%		40	%

FAD
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122
FAS 13		(7,277	)		(1,733	)		(1,918	)		(2,074	)		(2,211	)		(7,936	)		(2,637	)
SECOND GENERATION CAPEX		(6,499	)		(1,009	)		(1,724	)		(3,337	)		(2,530	)		(8,600	)		(1,972	)

FAD		(105,736	)		11,238			4,253			(4,525	)		5,279			16,245			3,513
COMMON DIVIDENDS		42,421			8,981			9,080			9,160			9,237			36,458			4,653
FAD PAYOUT RATIO		-40	%		80	%		213	%		-202	%		175	%		224	%		132	%

FAD BEFORE CERTAIN CHARGES
FAD		(105,736	)		11,238			4,253			(4,525	)		5,279			16,245			3,513
IMPAIRMENT LOSSES		115,752			—			586			—			5,714			6,300			3,508
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT AND SWAP TERMINATION FEE		(9,732	)		592			—			9,235			—			9,827			—
VALUATION ALLOWANCES ON DEFERRED TAX ASSETS		15,907			—			—			—			—			—			—
SEPARATION CHARGES		3,257			68			33			202			742			1,045			101

FAD BEFORE CERTAIN CHARGES		26,565			11,898			6,821			4,912			10,518			34,149			7,122
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		160	%		75	%		133	%		186	%		88	%		107	%		65	%

OPERATIONS RATIOS
GENERAL AND ADMINISTRATIVE EXPENSES		26,198			8,017			6,763			6,172			7,565			28,517			7,400
REVENUES		214,544			67,200			52,612			52,148			55,775			227,735			48,956
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES		12.2	%		11.9	%		12.9	%		11.8	%		13.6	%		12.5	%		15.1	%

UNDEPRECIATED ASSETS		1,724,643			1,731,606			1,720,272			1,649,949			1,646,207			1,646,207			1,622,000
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES/UNDEPRECIATED ASSETS		1.5	%		1.9	%		1.6	%		1.5	%		1.8	%		1.7	%		1.8	%

COUSINS PROPERTIES INCORPORATED
CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
($ in thousands)


	Three Months Ended
	March 31,			March 31,			December 31,
	2011			2010			2010
Net Operating Income
Same Property		26,513			24,607			26,038
Non-Same Property		1,634			2,374			1,838

Consolidated Property Net Operating Income		28,147			26,981			27,875


Less: Non-Cash Items
FAS 13		2,557			1,600			2,323
Other		(292	)		(249	)		(313	)

Non-Cash Items		2,265			1,351			2,010

Cash Basis Property Net Operating Income		25,881			25,630			25,866


Net Operating Income (1)
Operating Properties		21,900			20,242			22,242
Discountinued Operations		137			1,787			438
Share of Unconcolidated Joint Ventures		6,110			4,952			5,195

Total Net Operating Income		28,147			26,981			27,875


(1)		See reconciliation above within previous pages of the calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED
DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Company uses non-GAAP financial measures in its filings and other public disclosures. The following is a list of non-GAAP financial measures that the Company commonly uses and a description for each measure of (1) the reasons that management believes the measure is useful to investors and (2) if material, any additional uses of the measure by management of the Company.

“2^nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at historic performance levels. The latter costs are referred to as second generation costs and are useful in evaluating the economic performance of the asset and in valuing the asset. Accordingly, the Company discloses the portion of its property acquisition and development expenditures that pertain to second generation space in its operating properties. The Company excludes from second generation costs amounts incurred to lease vacant space and other building improvements associated with properties acquired for redevelopment or repositioning.

“EBITDA” represents FFO plus consolidated and Company share of unconsolidated interest expense, non-real estate depreciation and amortization, income taxes, impairment losses, gain/loss on debt extinguishment and interest rate swap, and preferred stock dividends. Management believes that EBITDA provides analysts and investors with appropriate information to use in various ratios that evaluate the Company’s level of debt.

“Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of straight line rent and above and below market lease amortization less 2^nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company’s dividend policy with other real estate companies.

“FAD Before Certain Charges” represents FAD before impairment losses, write off of predevelopment expenses, gain/loss on debt extinguishment and interest rate swap, valuation allowances on deferred tax assets and separation charges, and. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company’s core operations and for comparability of the results of its operations with other real estate companies.

“Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real 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 an equity 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. Management believes that 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, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

“FFO Before Certain Charges” represents FFO before impairment losses, write off of predevelopment expenses, gain/loss on debt extinguishment and interest rate swap, valuation allowances on deferred tax assets and separation charges. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company’s core operations and for comparability of the results of its operations with other real estate companies.

COUSINS PROPERTIES INCORPORATED
DISCUSSION OF NON-GAAP FINANCIAL MEASURES

“Net Operating Income” is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. Net Operating Income which is rental property revenues less rental property operating expenses, like FFO, 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 FFO and 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, management uses only those income and expense items that are incurred at the property level to evaluate a property’s performance. Depreciation and amortization are also excluded from Net Operating Income for the reasons described under FFO above. Additionally, appraisals of real estate are based on the value of an income stream before interest and depreciation.

“Same-Property Net Operating Income” represents the Net Operating Income and Cash Basis Same Properties. Cash Basis Net Operating Income excludes straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents. Same Properties include those office and retail properties that have been fully operational in each of the comparable reporting periods. Same-Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company’s portfolio.

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