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

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8-K - 8-K - COUSINS PROPERTIES INC	d483244d8k.htm

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED

QUARTERLY INFORMATION PACKAGE

For the Quarter Ended December 31, 2012

TABLE OF CONTENTS


		Press Release			1

		Consolidated Statements of Operations			4

		Funds From Operations			5

		Consolidated Balance Sheets			6

		Same Property Information			7

		Key Performance Indicators			8

		Funds From Operations – Summary			9

		Funds From Operations – Supplemental Detail			10

		Portfolio Listing			13

		Same Property Performance – Leasing and Occupancy			14

		Same Property Performance – Net Operating Income			15

		Square Feet Expiring			16

		Top 20 Tenants			17

		Development Pipeline			18

		Inventory of Land Held			19

		Debt Outstanding			20

		Joint Venture Information			21

		Calculations and Reconciliations of Non-GAAP Financial Measures			22

		Discussion of Non-GAAP Financial Measures			28

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, the availability and terms of capital and financing; the ability to refinance indebtedness as it matures; failure of purchase, sale or other contracts to ultimately close; the availability of buyers and adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial markets in particular; market conditions and changes to the Company’s strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effects of the sale of the Company’s third party management business; leasing risks, including the ability to obtain new tenants or renew expiring tenants on favorable terms, and the ability to lease newly developed, recently acquired or current vacant space; financial condition of existing tenants; volatility in interest rates and insurance rates; the availability of sufficient investment opportunities; competition from other developers or investors; the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk); loss of key personnel; potential liability for uninsured losses, condemnation or environmental issues; potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; and 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, 2012. 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.

LOGO

Press Release


CONTACT:

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

COUSINS REPORTS RESULTS FOR

QUARTER AND YEAR ENDED DECEMBER 31, 2012

Highlights

•

Funds From Operations for the fourth quarter was $0.14 per share. Before special items, FFO for the quarter was $0.15 per share.

•

Sold $250.8 million in operating assets during the fourth quarter.

•

Sold $26.5 million in land during the fourth quarter.

•

Subsequent to quarter end, purchased Post Oak Central in Houston for $232.6 million and completed transactions at Terminus 100 and 200 in Atlanta that resulted in a 50% ownership interest in both buildings.

ATLANTA (February 13, 2013) – Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2012.

“Cousins had an exceptional quarter and year, with solid operating performance and significant progress toward our strategic objectives,” said Larry Gellerstedt, CEO of Cousins. “We are thrilled to kick-off 2013 with the off-market acquisition of Post Oak Central in Houston, a 1.3 million-square-foot, Class-A office asset in the heart of the Galleria submarket. This investment not only serves as an attractive entry into a target market, it provides a rare combination of substantial in-place yield and significant future development opportunity.”

Portfolio Activity

•

Leased or renewed 184,000 square feet of office space and 106,000 square feet of retail space.

•

The office and retail portfolios finished the quarter 91% and 90% leased, respectively, on a same property basis.

Transaction Activity

•

Sold The Avenue Forsyth for $119.0 million, generating $105.7 million in net proceeds to the Company.

•

Sold the Company’s interest in Palisades West for $64.8 million.

•

Sold The Avenue Webb Gin for $59.6 million.

•

Sold the 615 Peachtree land parcel for $11.0 million.

•

Sold the Terminus land parcels for $10.5 million.

•

Sold Cosmopolitan Center for $7.0 million.

•

Liquidated the Company’s investment in Verde Realty for $5.4 million.

-MORE-

191 Peachtree Street NE • Suite 500 • Atlanta, Georgia 30303-1740 • 404/407-1000 • FAX 404/407-1002

CUZ Reports Fourth Quarter Results

Page 2

February 13, 2013

•

Sold the remaining King Mill land parcel for $4.2 million.

•

For the year, the Company sold $401.2 million in operating properties, land and other non-core assets.

Transactions Subsequent to Year End

•

Purchased the remaining 80% interest in Terminus 200 from a fund managed by Morgan Stanley Real Estate Investing in a transaction that valued the property at $164.0 million, or $290 per square foot.

•

Formed a 50/50 joint venture with institutional investors advised by J.P. Morgan Asset Management for both Terminus 100 and Terminus 200, neighboring Class-AA office towers in Atlanta’s Buckhead submarket. Terminus 100 was attributed a value of $209.2 million, or $320 per square foot; Terminus 200 was attributed a value of $164.0 million, or $290 per square foot.

•

Purchased a 100% interest in Post Oak Central, a Class-A office complex in the Galleria submarket of Houston from institutional investors advised by J.P. Morgan Asset Management, for $232.6 million, or $182 per square foot.

Financial Results

FFO was $14.2 million, or $0.14 per share, for the fourth quarter of 2012 compared with ($110.2) million, or ($1.06) per share, for the fourth quarter of 2011. FFO was $66.5 million, or $0.64 per share, for the year ended December 31, 2012, compared with ($76.9) million, or ($0.74) per share, for the same period in 2011.

Net income available to common stockholders was $30.1 million, or $0.29 per share, for the fourth quarter of 2012 compared with net loss available of ($129.0) million, or ($1.24) per share, for the fourth quarter of 2011. Net income available was $32.8 million, or $0.32 per share, for the year ended December 31, 2012, compared with net loss available of ($141.3) million, or ($1.36) per share, for the same period in 2011.

The Company recorded separation expenses in the fourth quarter of 2012 of $1.1 million in connection with the strategic re-organization the Company previously announced in the third quarter of 2012. The Company also recognized an additional $75,000 gain on the previously completed sale of Cousins Properties Services during the fourth quarter of 2012. The following table reconciles FFO to FFO before these special items for the three months ended December 31, 2012:


	Actual ($000)		Per Share
	Actual ($000)		Per Share
FFO	$	14,167	$	0.14
Severance/reorganization expenses		1,118		0.01
Gain on sale of Cousins Properties Services		(75)		(0.00)

FFO before special items	$	15,210	$	0.15

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, February 14, 2013, to discuss the results of the quarter and year ended December 31, 2012. The number to call for this interactive teleconference is (212) 231-2905.

- MORE -

CUZ Reports Fourth Quarter Results

Page 3

February 13, 2013

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21645972. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q4 2012 Cousins Properties Incorporated Earnings Conference Call” link on the Investor Relations page.

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 projects. Since its founding in 1958, Cousins has developed 20 million square feet of office space and 20 million square feet of retail space. Cousins has built and maintained an industry-wide reputation for innovative and sustainable developments, premium management services and top quality leadership. The Company creates and maintains value in real estate assets for the benefit of shareholders, and partners. Cousins Properties is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ.

The Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets and a schedule entitled Funds From Operations, which reconciles Net Income (Loss) Available to FFO, and a schedule entitled Same Property Information, which reconciles same property net operating income to rental property revenues and rental property expenses, 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.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share amounts)


	Three Months Ended December 31,						Year Ended December 31,
	2012			2011			2012			2011
REVENUES:
Rental property revenues	$	33,394		$	27,486		$	125,609		$	105,596
Fee income		4,812			3,092			17,797			13,821
Land sales		400			2,605			2,616			3,015
Other		644			460			2,256			6,614

		39,250			33,643			148,278			129,046

COSTS AND EXPENSES:
Rental property operating expenses		14,982			11,273			54,518			44,912
Reimbursed expenses		3,095			1,459			7,063			6,207
Land cost of sales		87			2,588			1,420			2,891
General and administrative expenses		5,684			6,338			23,208			24,166
Interest expense		5,997			6,281			23,933			27,784
Depreciation and amortization		11,719			9,267			43,559			34,580
Impairment losses		—			96,623			488			100,131
Separation expenses		1,118			4			1,985			197
Other		1,016			2,100			4,517			6,861

		43,698			135,933			160,691			247,729

LOSS ON EXTINGUISHMENT OF DEBT		—			—			(94	)		(74	)

LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		(4,448	)		(102,290	)		(12,507	)		(118,757	)
BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS		30			(31	)		(91	)		186
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		25,042			(25,767	)		39,258			(18,299	)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		20,624			(128,088	)		26,660			(136,870	)
GAIN ON SALE OF INVESTMENT PROPERTIES		3,907			3,317			4,053			3,494

INCOME (LOSS) FROM CONTINUING OPERATIONS		24,531			(124,771	)		30,713			(133,376	)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Income (loss) from discontinued operations		1,034			(5,537	)		(1,201	)		1,390
Gain on sale of discontinued operations		10,200			6,082			18,407			8,519

		11,234			545			17,206			9,909

NET INCOME (LOSS)		35,765			(124,226	)		47,919			(123,467	)

NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(2,450	)		(1,504	)		(2,191	)		(4,958	)

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST		33,315			(125,730	)		45,728			(128,425	)

DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,227	)		(3,227	)		(12,907	)		(12,907	)

NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$	30,088		$	(128,957	)	$	32,821		$	(141,332	)

PER COMMON SHARE INFORMATION—BASIC AND DILUTED:
Income (loss) from continuing operations attributable to controlling interest	$	0.18		$	(1.25	)	$	0.15		$	(1.46	)
Income (loss) from discontinued operations		0.11			0.01		$	0.17		$	0.10

Net income (loss) available to common stockholders	$	0.29		$	(1.24	)	$	0.32		$	(1.36	)

WEIGHTED AVERAGE SHARES—BASIC		104,109			103,712			104,117			103,651

WEIGHTED AVERAGE SHARES—DILUTED		104,132			103,712			104,125			103,651

DIVIDENDS PER COMMON SHARE	$	0.045		$	0.045		$	0.180		$	0.180

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

(Unaudited, in thousands, except per share amounts)


	Three Months Ended December 31,						Years Ended December 31,
	2012			2011			2012			2011
Net Income (Loss) Available to Common Stockholders	$	30,088		$	(128,957	)	$	32,821		$	(141,332	)
Depreciation and amortization:
Consolidated properties		11,719			9,267			43,559			34,580
Discontinued properties		36			4,511			9,344			19,481
Share of unconsolidated joint ventures		2,584			2,566			10,230			10,357
Depreciation of non-real estate assets:
Consolidated properties		(232	)		(365	)		(1,075	)		(1,688	)
Discontinued properties		—			—			—			—
Share of unconsolidated joint ventures		—			(5	)		(15	)		(20	)
Impairment loss on depreciable investment property net of amounts attributable to noncontrolling interests		1,558			7,632			11,748			7,632
Gain on sale of investment properties:
Consolidated properties		(3,907	)		(3,317	)		(4,053	)		(3,494	)
Discontinued properties, net of noncontrolling interests		(8,353	)		(4,792	)		(16,557	)		(5,649	)
Share of unconsolidated joint ventures		(23,153	)		—			(30,662	)		—
Gain on sale of undepreciated investment properties		3,752			3,258			3,693			3,258
Gain on sale of third party management and leasing business		75			—			7,459			—

Funds From Operations Available to Common Stockholders	$	14,167		$	(110,202	)	$	66,492		$	(76,875	)

Per Common Share—Basic and Diluted:
Net Income (Loss) Available	$	.29		$	(1.24	)	$	.32		$	(1.36	)

Funds From Operations	$	.14		$	(1.06	)	$	.64		$	(.74	)

Weighted Average Shares—Basic		104,109			103,712			104,117			103,651

Weighted Average Shares—Diluted		104,132			103,712			104,125			103,651

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, impairment losses on depreciable investment property 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 special items provides analysts and investors with appropriate information related to its core operations and for the comparability of the results of its operations with other real estate companies.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except share and per share amounts)


	December 31, 2012			December 31, 2011
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $255,128 and $289,473 in 2012 and 2011, respectively	$	669,652		$	884,652
Projects under development, net of accumulated depreciation of $183 in 2012		25,209			11,325
Land		42,187			67,327
Other		151			637

Total properties		737,199			963,941
OPERATING PROPERTIES AND RELATED ASSETS HELD FOR SALE, net of accumulated depreciation of $2,947 in 2012		1,866			—
CASH AND CASH EQUIVALENTS		176,892			4,858
RESTRICTED CASH		2,852			4,929
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $1,743 and $5,100 in 2012 and 2011, respectively		9,972			11,359
DEFERRED RENTS RECEIVABLE		39,378			37,141
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		97,868			160,587
OTHER ASSETS		58,215			52,720

TOTAL ASSETS	$	1,124,242		$	1,235,535

LIABILITIES AND EQUITY
NOTES PAYABLE	$	425,410		$	539,442
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		34,751			29,682
DEFERRED INCOME		11,888			17,343
OTHER LIABILITIES		9,240			8,910

TOTAL LIABILITIES		481,289			595,377
COMMITMENTS AND CONTINGENT LIABILITIES
REDEEMABLE NONCONTROLLING INTERESTS		—			2,763
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 2012 and 2011		74,827			74,827
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2012 and 2011		94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 107,660,080 and 107,272,078 shares issued in 2012 and 2011, respectively		107,660			107,272
Additional paid-in capital		690,024			687,835
Treasury stock at cost, 3,570,082 shares in 2012 and 2011		(86,840	)		(86,840	)
Distributions in excess of cumulative net income		(260,104	)		(274,177	)

TOTAL STOCKHOLDERS’ INVESTMENT		620,342			603,692
Nonredeemable noncontrolling interests		22,611			33,703

TOTAL EQUITY		642,953			637,395

TOTAL LIABILITIES AND EQUITY	$	1,124,242		$	1,235,535

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2012 AND 2011

(Unaudited, in thousands)


	Three Months Ended December 31,				Year Ended December 31,
	2012		2011		2012		2011
Net Operating Income—Consolidated Properties
Rental property revenues	$	33,394	$	27,486	$	125,607	$	105,596
Rental property expenses		14,982		11,273		54,517		44,912

Net Operating Income—Consolidated Properties		18,412		16,213		71,090		60,684
Net Operating Income—Discontinued Operations
Rental property revenues		2,917		8,680		22,517		41,092
Rental property expenses		685		3,225		6,746		15,481

Net Operating Income—Discontinued Operations		2,232		5,455		15,771		25,611
Net Operating Income—Unconsolidated Joint Ventures		5,508		6,235		23,596		24,258

Total Net Operating Income	$	26,152	$	27,903	$	110,457	$	110,553

Net Operating Income:
Same property		19,589		19,723		77,775		76,127
Non-same property		6,563		8,180		32,682		34,426

Net Operating Income	$	26,152	$	27,903	$	110,457	$	110,553

This schedule shows same property net operating income and the related reconciliation to rental property revenues and rental property expenses. 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, 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. Additionally, appraisals of real estate are based on the value of an income stream before interest and depreciation. Same Property Net Operating Income includes 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.

COUSINS PROPERTIES INCORPORATED

KEY PERFORMANCE INDICATORS


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
Property Statistics
Number of Operating Properties (1)		38			37			37			36			35			35			35			32			34			30			30
Rentable Square Feet (in thousands)		14,156			13,747			13,749			13,342			12,572			12,572			12,573			11,688			12,678			11,827			11,827
Leverage Ratios (2)
Debt/Total Market Capitalization		40	%		39	%		39	%		45	%		46	%		46	%		42	%		39	%		41	%		36	%		36	%
Debt/Total Undepreciated Assets		35	%		34	%		34	%		33	%		37	%		37	%		38	%		36	%		38	%		35	%		35	%
Debt + Preferred/Total Market Capitalization		50	%		49	%		48	%		57	%		57	%		57	%		52	%		49	%		51	%		47	%		47	%
Debt + Preferred/Total Undepreciated Assets		43	%		43	%		43	%		42	%		46	%		46	%		47	%		45	%		47	%		45	%		45	%
Coverage Ratios (2)
Interest Coverage		2.53			2.76			2.74			3.28			3.65			3.08			3.31			3.40			3.81			3.50			3.50
Fixed Charges Coverage		1.78			1.76			1.71			2.02			2.15			1.90			1.93			1.93			2.19			2.03			2.02
Debt/Annualized EBITDA		6.13			6.88			7.11			6.09			6.45			6.45			7.03			6.55			6.65			6.07			6.07
Dividend Ratios (2)
FFO Payout Ratio		111	%		57	%		43	%		33	%		-4	%		-24	%		35	%		36	%		18	%		33	%		28	%
FFO Before Certain Charges Payout Ratio		72	%		40	%		42	%		32	%		29	%		35	%		37	%		35	%		29	%		31	%		33	%
FAD Payout Ratio		226	%		133	%		297	%		94	%		-4	%		-17	%		55	%		59	%		25	%		57	%		43	%
FAD Before Certain Charges Payout Ratio		107	%		66	%		246	%		92	%		51	%		80	%		61	%		59	%		51	%		51	%		55	%
Operations Ratios (2)
General and Administrative Expenses/Revenues Including Discontinued Operations		12.2	%		15.1	%		13.5	%		9.0	%		13.3	%		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%
Annualized General and Administrative Expenses/Total Undepreciated Assets		1.5	%		1.5	%		1.3	%		0.9	%		1.3	%		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%

(1)

In the fourth quarter 2012, the Company combined 100 Northpoint Center East, 200 Northpoint Center East, 333 Northpoint Center East and 555 Northpoint Center East and reported them as one property. Previous quarters were restated to be consistent with the new presentation.

(2)

See calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS—SUMMARY (1)

($ in thousands, except per share)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
NET OPERATING INCOME
OFFICE		72,792			18,608			18,780			18,848			19,151			75,387			20,598			20,013			20,452			19,844			80,907
RETAIL		31,729			8,430			7,443			7,672			8,038			31,583			8,658			7,415			7,168			6,188			29,429
OTHER		3,721			1,051			911			907			714			3,583			1			—			—			120			121

TOTAL NET OPERATING INCOME		108,242			28,089			27,134			27,427			27,903			110,553			29,257			27,428			27,620			26,152			110,457
SALES LESS COST OF SALES
LAND		12,502			296			425			686			3,829			5,236			385			89			378			4,063			4,915
OTHER		7,898			2,174			53			(2	)		25			2,250			(1	)		53			—			257			309

TOTAL SALES LESS COST OF SALES		20,400			2,470			478			684			3,854			7,486			384			142			378			4,320			5,224
FEE INCOME		14,443			3,385			3,435			3,909			3,092			13,821			2,856			2,786			7,343			4,812			17,797
THIRD PARTY MANAGEMENT AND LEASING REVENUES		18,977			4,088			4,605			5,398			5,268			19,359			4,711			6,029			4,789			836			16,365
OTHER INCOME		1,312			571			644			448			541			2,204			1,507			112			3,329			205			5,153

TOTAL FEE AND OTHER INCOME		34,732			8,044			8,684			9,755			8,901			35,384			9,074			8,927			15,461			5,853			39,315
GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			—			—			—			—			—			7,384			75			7,459
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)
REIMBURSED EXPENSES		(6,297	)		(1,512	)		(1,371	)		(1,866	)		(1,459	)		(6,208	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)
SEPARATION EXPENSES		(1,045	)		(101	)		(77	)		(15	)		(4	)		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)
GENERAL AND ADMINISTRATIVE EXPENSES		(28,517	)		(7,400	)		(6,133	)		(4,295	)		(6,338	)		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)
LOSS ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		(9,827	)		—			—			(74	)		—			(74	)		(94	)		—			—			—			(94	)
INTEREST EXPENSE		(41,432	)		(8,736	)		(8,505	)		(7,813	)		(7,461	)		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)
IMPAIRMENT LOSSES		(6,300	)		(3,508	)		(250	)		—			(125,376	)		(129,134	)		—			—			(488	)		—			(488	)
OTHER EXPENSES		(6,043	)		(1,400	)		(1,353	)		(1,814	)		(2,423	)		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)
INCOME TAX (PROVISION) BENEFIT		1,079			64			(27	)		180			(31	)		186			(27	)		(33	)		(60	)		30			(90	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(1,911	)		(568	)		(377	)		(393	)		(370	)		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)
PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)

FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
WEIGHTED AVERAGE SHARES—BASIC		101,440			103,515			103,659			103,715			103,712			103,651			104,000			104,165			104,193			104,109			104,117
WEIGHTED AVERAGE SHARES—DILUTED		101,440			103,530			103,684			103,718			103,712			103,655			104,000			104,165			104,203			104,132			104,125
FFO PER SHARE- BASIC AND DILUTED		0.32			0.08			0.11			0.14			(1.06	)		(0.74	)		0.13			0.13			0.25			0.14			0.64

(1)

Amounts may differ slightly from other schedules contained herein due to rounding.

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS—SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
191 PEACHTREE TOWER		13,117			3,228			3,238			3,641			3,937			14,044			3,789			3,745			3,899			3,789			15,222
TERMINUS 100		14,781			4,015			3,897			3,669			3,956			15,537			4,063			4,039			3,922			3,785			15,809
THE AMERICAN CANCER SOCIETY CENTER		10,818			2,771			2,995			2,927			2,878			11,571			2,872			2,581			2,744			2,832			11,029
PROMENADE		—			—			—			—			693			693			2,014			2,324			2,124			2,286			8,748
NORTH POINT CENTER EAST (2)		6,810			1,670			1,697			1,501			1,495			6,363			1,254			1,268			1,142			1,521			5,185
MERIDIAN MARK PLAZA		3,686			895			946			1,021			1,001			3,863			1,015			996			1,013			1,009			4,033
2100 ROSS AVENUE		—			—			—			—			—			—			—			—			876			635			1,511
LAKESHORE PARK PLAZA		2,203			546			505			490			558			2,099			559			559			513			535			2,166
THE POINTS AT WATERVIEW		1,927			415			423			523			463			1,824			504			557			516			488			2,065
600 UNIVERSITY PARK PLACE		1,526			182			300			352			355			1,189			384			354			376			388			1,502
OTHER		—			—			(4	)		(3	)		—			(7	)		(5	)		(29	)		(3	)		(8	)		(45	)

SUBTOTAL—OFFICE CONSOLIDATED		54,868			13,722			13,997			14,121			15,336			57,176			16,449			16,394			17,122			17,260			67,225
UNCONSOLIDATED PROPERTIES:
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,679			933			992			960			937			3,822			970			920			950			918			3,758
TERMINUS 200		62			14			67			140			242			463			358			374			439			374			1,545
GATEWAY VILLAGE (3)		1,208			302			302			302			302			1,208			302			302			302			302			1,208
SOLD UNCONSOLIDATED PROPERTIES (4)		7,345			2,127			1,975			2,024			2,036			8,162			2,045			1,692			1,538			1,020			6,295
OTHER		(52	)		(19	)		(14	)		(20	)		(10	)		(63	)		(14	)		(17	)		(18	)		(2	)		(51	)

SUBTOTAL—OFFICE UNCONSOLIDATED		12,242			3,357			3,322			3,406			3,507			13,592			3,661			3,271			3,211			2,612			12,755
DISCONTINUED OPERATIONS OFFICE (5)		5,682			1,529			1,461			1,321			308			4,619			488			348			119			(28	)		927
TOTAL—OFFICE NET OPERATING INCOME		72,792			18,608			18,780			18,848			19,151			75,387			20,598			20,013			20,452			19,844			80,907
RETAIL:
CONSOLIDATED PROPERTIES:
TIFFANY SPRINGS MARKETCENTER		3,311			856			875			901			875			3,507			897			864			889			893			3,543
MAHAN VILLAGE		—			—			—			—			—			—			—			—			55			259			314
OTHER		—			—			(3	)		(1	)		1			(3	)		—			4			2			—			6

SUBTOTAL—RETAIL CONSOLIDATED		3,311			856			872			900			876			3,504			897			868			946			1,152			3,863
UNCONSOLIDATED PROPERTIES:
THE AVENUE MURFREESBORO		4,405			1,175			1,153			1,140			1,224			4,692			1,075			1,148			1,168			1,204			4,595
CW INVESTMENTS (6)		—			594			594			612			610			2,410			610			610			591			587			2,398
NORTH POINT MARKETCENTER		493			138			121			132			141			532			144			146			156			160			606
GREENBRIER MARKETCENTER		551			142			141			132			135			550			152			141			144			146			583
THE AVENUE VIERA		503			128			129			128			134			519			137			130			136			142			545
THE AVENUE EAST COBB		634			144			163			150			112			569			122			151			137			137			547
THE AVENUE WEST COBB		493			135			134			142			148			559			134			133			133			136			536
THE AVENUE PEACHTREE CITY		437			106			99			103			102			410			112			106			106			103			427
LOS ALTOS MARKETCENTER		220			84			10			60			67			221			71			53			56			85			265
VIERA MARKETCENTER		201			49			53			49			55			206			51			49			53			55			208
EMORY POINT		—			—			—			—			—			—			—			—			(9	)		19			10
OTHER		—			—			(1	)		(1	)		—			(2	)		—			(1	)		—			—			(1	)

SUBTOTAL—RETAIL UNCONSOLIDATED		7,937			2,695			2,596			2,647			2,728			10,666			2,608			2,666			2,671			2,774			10,719
DISCONTINUED OPERATIONS RETAIL (7)		20,481			4,879			3,975			4,125			4,434			17,413			5,153			3,881			3,551			2,262			14,847
TOTAL—RETAIL NET OPERATING INCOME		31,729			8,430			7,443			7,672			8,038			31,583			8,658			7,415			7,168			6,188			29,429
OTHER:
CONSOLIDATED PROPERTIES		96			1			—			—			—			1			—			—			—			—			—
UNCONSOLIDATED PROPERTIES:
EMORY POINT RESIDENTIAL		—			—			—			—			—			—			—			—			—			122			122

SUBTOTAL—OTHER UNCONSOLIDATED		—			—			—			—			—			—			—			—			—			122			122
DISCONTINUED OPERATIONS OTHER (8)		3,625			1,050			911			907			714			3,582			1			—			—			(2	)		(1	)
TOTAL—OTHER NET OPERATING INCOME		3,721			1,051			911			907			714			3,583			1			—			—			120			121
TOTAL NET OPERATING INCOME		108,242			28,089			27,134			27,427			27,903			110,553			29,257			27,428			27,620			26,152			110,457

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS—SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
SALES LESS COST OF SALES
LAND SALES LESS COST OF SALES—CONSOLIDATED		6,941			96			4			7			3,275			3,382			385			89			378			4,063			4,915
LAND SALES LESS COST OF SALES—UNCONSOLIDATED		5,561			200			421			679			554			1,854			—			—			—			—			—

SUBTOTAL—LAND SALES LESS COST OF SALES		12,502			296			425			686			3,829			5,236			385			89			378			4,063			4,915
OTHER—CONSOLIDATED		7,425			2,157			20			—			—			2,177			—			55			—			226			281
OTHER —UNCONSOLIDATED		473			17			33			(2	)		25			73			(1	)		(2	)		—			31			28

SUBTOTAL—OTHER SALES LESS COST OF SALES		7,898			2,174			53			(2	)		25			2,250			(1	)		53			—			257			309

TOTAL SALES LESS COST OF SALES		20,400			2,470			478			684			3,854			7,486			384			142			378			4,320			5,224
FEE INCOME
DEVELOPMENT FEES		2,013			532			612			994			712			2,850			525			640			5,278			2,616			9,059
MANAGEMENT FEES (9)		9,662			2,377			2,176			2,198			2,106			8,857			2,099			2,051			1,944			2,070			8,164
LEASING & OTHER FEES		2,768			476			647			717			274			2,114			232			95			121			126			574

TOTAL—FEE INCOME		14,443			3,385			3,435			3,909			3,092			13,821			2,856			2,786			7,343			4,812			17,797
THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,239			249			271			266			588			1,374			314			272			296			37			919
MANAGEMENT FEES (10)		13,539			3,359			3,341			3,136			3,226			13,062			3,396			3,452			3,553			380			10,781
LEASING & OTHER FEES		4,199			480			993			1,996			1,454			4,923			1,001			2,305			940			419			4,665

TOTAL—THIRD PARTY MANAGEMENT AND LEASING REVENUES		18,977			4,088			4,605			5,398			5,268			19,359			4,711			6,029			4,789			836			16,365
OTHER INCOME
TERMINATION FEES		457			428			369			368			384			1,549			43			21			—			64			128
TERMINATION FEES—DISCONTINUED OPERATIONS		105			24			—			—			53			77			192			13			3,232			75			3,512
INTEREST AND OTHER INCOME—CONTINUING OPERATIONS		775			135			203			96			105			539			1,289			92			98			72			1,551
INTEREST AND OTHER INCOME—DISCONTINUED OPERATIONS		(25	)		(16	)		72			(16	)		(1	)		39			(17	)		(14	)		(1	)		(6	)		(38	)

TOTAL INTEREST INCOME & OTHER		1,312			571			644			448			541			2,204			1,507			112			3,329			205			5,153
TOTAL FEE AND OTHER INCOME		34,732			8,044			8,684			9,755			8,901			35,384			9,074			8,927			15,461			5,853			39,315
GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			—			—			—			—			—			7,384			75			7,459
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)
REIMBURSED EXPENSES		(6,297	)		(1,512	)		(1,371	)		(1,866	)		(1,459	)		(6,207	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)
SEPARATION EXPENSES		(1,045	)		(101	)		(77	)		(15	)		(4	)		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)
GENERAL AND ADMINISTRATIVE EXPENSES		(28,517	)		(7,400	)		(6,133	)		(4,295	)		(6,338	)		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)
LOSS ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		(9,827	)		—			—			(74	)		—			(74	)		(94	)		—			—			—			(94	)

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS—SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER		(8,982	)		(2,215	)		(2,240	)		(2,264	)		(2,260	)		(8,979	)		(2,230	)		(2,223	)		(2,242	)		(2,237	)		(8,932	)
TERMINUS 100		(11,135	)		(1,842	)		(1,835	)		(1,829	)		(1,822	)		(7,328	)		(1,816	)		(1,808	)		(1,802	)		(1,795	)		(7,221	)
191 PEACHTREE TOWER		—			—			—			—			—			—			(28	)		(891	)		(891	)		(891	)		(2,701	)
UNSECURED CREDIT FACILITY		(5,235	)		(1,475	)		(1,480	)		(1,665	)		(1,585	)		(6,205	)		(1,648	)		(777	)		(725	)		(562	)		(3,712	)
MERIDIAN MARK PLAZA		(1,763	)		(409	)		(408	)		(407	)		(406	)		(1,630	)		(404	)		(403	)		(402	)		(400	)		(1,609	)
THE POINTS AT WATERVIEW		(983	)		(242	)		(240	)		(239	)		(237	)		(958	)		(235	)		(234	)		(232	)		(230	)		(931	)
MAHAN VILLAGE		—			—			—			—			—			—			—			(20	)		(43	)		(59	)		(122	)
NORTH POINT CENTER EAST (2)		(3,264	)		(809	)		(653	)		(334	)		(334	)		(2,130	)		(332	)		(8	)		—			—			(340	)
600 UNIVERSITY PARK PLACE		(933	)		(230	)		(229	)		(100	)		—			(559	)		—			—			—			—			—
LAKESHORE PARK PLAZA		(1,112	)		(275	)		(273	)		—			—			(548	)		—			—			—			—			—
OTHER		(235	)		(47	)		—			—			—			(47	)		(1	)		—			—			—			(1	)
UNSECURED TERM LOAN		(3,538	)		—			—			—			—			—			—			—			—			—			—
CAPITALIZED		—			—			—			237			363			600			426			489			544			177			1,636

SUBTOTAL—CONSOLIDATED		(37,180	)		(7,544	)		(7,358	)		(6,601	)		(6,281	)		(27,784	)		(6,268	)		(5,875	)		(5,793	)		(5,997	)		(23,933	)
UNCONSOLIDATED DEBT:
THE AVENUE MURFREESBORO		(1,409	)		(458	)		(417	)		(484	)		(453	)		(1,812	)		(444	)		(437	)		(438	)		(430	)		(1,749	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,472	)		(364	)		(361	)		(359	)		(357	)		(1,441	)		(355	)		(353	)		(351	)		(349	)		(1,408	)
TERMINUS 200		(155	)		(89	)		(93	)		(98	)		(113	)		(393	)		(126	)		(129	)		(129	)		(128	)		(512	)
EMORY POINT		—			—			—			—			—			—			—			—			—			(59	)		(59	)
THE AVENUE EAST COBB		(246	)		(49	)		(49	)		(49	)		(49	)		(196	)		(49	)		(48	)		(48	)		(48	)		(193	)
TEN PEACHTREE PLACE		(752	)		(184	)		(183	)		(182	)		(181	)		(730	)		(180	)		(80	)		—			—			(260	)
TEMCO ASSOCIATES		(109	)		(26	)		(26	)		(25	)		(21	)		(98	)		(25	)		(15	)		—			—			(40	)
CL REALTY		(109	)		(22	)		(18	)		(15	)		(6	)		(61	)		—			—			—			—			—

SUBTOTAL—UNCONSOLIDATED		(4,252	)		(1,192	)		(1,147	)		(1,212	)		(1,180	)		(4,731	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)
TOTAL INTEREST EXPENSE		(41,432	)		(8,736	)		(8,505	)		(7,813	)		(7,461	)		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)
IMPAIRMENT LOSSES
IMPAIRMENT LOSS—CONSOLIDATED		(2,554	)		(3,508	)		—			—			(96,623	)		(100,131	)		—			—			(488	)		—			(488	)
IMPAIRMENT LOSS—OTHER		(3,746	)		—			—			—			—			—			—			—			—			—			—
IMPAIRMENT LOSS—UNCONSOLIDATED INVESTMENTS		—			—			(250	)		—			(28,753	)		(29,003	)		—			—			—			—			—

TOTAL—IMPAIRMENT LOSSES		(6,300	)		(3,508	)		(250	)		—			(125,376	)		(129,134	)		—			—			(488	)		—			(488	)
OTHER EXPENSES
NONCONTROLLING INTERESTS		(2,540	)		(581	)		(681	)		(613	)		(212	)		(2,087	)		(574	)		(631	)		(608	)		(604	)		(2,415	)
PROPERTY TAXES & OTHER HOLDING COSTS		(3,158	)		(803	)		(555	)		(522	)		(514	)		(2,394	)		(433	)		(320	)		(518	)		(467	)		(1,738	)
PREDEVELOPMENT & OTHER		(1,258	)		(59	)		(117	)		(164	)		(1,234	)		(1,574	)		(187	)		(76	)		(1,397	)		37			(1,623	)
ACQUISITION COSTS		—			—			—			(102	)		(366	)		(468	)		(78	)		(67	)		(350	)		(299	)		(794	)
OTHER—UNCONSOLIDATED		914			43			—			(413	)		(97	)		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)

TOTAL—OTHER EXPENSES		(6,042	)		(1,400	)		(1,353	)		(1,814	)		(2,423	)		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)
INCOME TAX (PROVISION) BENEFIT		1,079			64			(27	)		180			(31	)		186			(27	)		(33	)		(60	)		30			(90	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(1,884	)		(563	)		(372	)		(388	)		(365	)		(1,688	)		(364	)		(223	)		(256	)		(232	)		(1,075	)
DISCONTINUED OPERATIONS		(5	)		—			—			—			—			—			—			—			—			—			—
SHARE OF UNCONSOLIDATED JOINT VENTURES		(22	)		(5	)		(5	)		(5	)		(5	)		(20	)		(5	)		(5	)		(5	)		—			(15	)

TOTAL—NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		(1,911	)		(568	)		(377	)		(393	)		(370	)		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)
PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
WEIGHTED AVERAGE SHARES—BASIC		101,440			103,515			103,659			103,715			103,712			103,651			104,000			104,165			104,193			104,109			104,117
WEIGHTED AVERAGE SHARES—DILUTED		101,440			103,530			103,684			103,718			103,712			103,655			104,000			104,165			104,203			104,132			104,125
FFO PER SHARE—BASIC AND DILUTED		0.32			0.08			0.11			0.14			(1.06	)		(0.74	)		0.13			0.13			0.25			0.14			0.64

(1)

Amounts may differ slightly from other schedules contained herein due to rounding.

(2)

(3)

The Company receives an 11.46% current return on its $10.4 million investment in Gateway Village and recognizes this amount as NOI from this venture. See Joint Venture Information included herein for further details.

(4)

In the fourth quarter 2012, the Company combined Palisades West, Ten Peachtree Place and Presbyterian Medical Plaza into one line—Sold Unconsolidated Properties. Previous quarters were restated to be consistent with the new presentation.

(5)

Discontinued Office Properties includes the discontinued NOI for the following consolidated Office Properties: Cosmopolitan Center, One Georgia Center, 8995 Westside Parkway, Galleria 75 and Inhibitex.

(6)

The Company recognizes a 16.00% return on its investment in CW Investments as NOI from this investment. As of December 31, 2012, its investment in CW Investments was $14.4 million. CW Investments has an investment in four retail properties: Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village and Highland City Town Center. See Joint Information included herein for further details.

(7)

Discontinued Retail Properties includes the discontinued NOI for the following consolidated Retail Properties: The Avenue Forsyth, The Avenue Webb Gin, The Avenue Collierville and San Jose MarketCenter.

(8)

Discontinued Other Properties includes the discontinued NOI for the following consolidated Industrial Properties: King Mill Building 3, Jefferson Mill Building A and Lakeside Building 20.

(9)

Management Fees include reimbursed expenses that are included in the “Reimbursed Expenses” line item.

(10)

Management Fees related to third party management fee revenues include reimbursed expenses that are included in the “Third Party Management and Leasing Expenses” line item.

COUSINS PROPERTIES INCORPORATED

PORTFOLIO LISTING

OPERATING PROPERTIES

As of and For the Three Months ended December 31, 2012


								Company’s Share
Property Description		Metropolitan Area	Rentable Square Feet		Company’s Ownership Interest			End of Period Leased			Weighted Average Occupancy (1)			% of Total Net Operating Income (2)			Property Level Debt ($000)
I.	OFFICE PROPERTIES
	Terminus 100	Atlanta		655,000		100.00	%		96	%		95	%		17	%		136,123
	191 Peachtree Tower	Atlanta		1,222,000		100.00	%		87	%		82	%		17	%		100,000
	The American Cancer Society Center	Atlanta		996,000		100.00	%		82	%		83	%		12	%		134,243
	Promenade (3)	Atlanta		775,000		100.00	%		73	%		66	%		10	%		—
	North Point Center East (4)	Atlanta		540,000		100.00	%		91	%		92	%		7	%		—
	Meridian Mark Plaza	Atlanta		160,000		100.00	%		98	%		98	%		4	%		26,194
	Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		99	%		99	%		4	%		23,248
	Terminus 200 (5)	Atlanta		566,000		20.00	%		88	%		88	%		2	%		14,868
	Inhibitex (6)	Atlanta		51,000		100.00	%		0	%		0	%		0	%		—

	GEORGIA			5,323,000											73	%		434,676
	2100 Ross Avenue	Dallas		844,000		100.00	%		65	%		66	%		3	%		—
	The Points at Waterview	Dallas		203,000		100.00	%		90	%		90	%		2	%		15,651

	TEXAS			1,047,000											5	%		15,651
	Lakeshore Park Plaza (3)	Birmingham		197,000		100.00	%		98	%		96	%		2	%		—
	600 University Park Place (3)	Birmingham		123,000		100.00	%		98	%		94	%		2	%		—

	ALABAMA			320,000											4	%		—
	Gateway Village (5)	Charlotte		1,065,000		50.00	%		100	%		100	%		1	%		34,121

	NORTH CAROLINA			1,065,000											1	%		34,121

	TOTAL OFFICE PROPERTIES			7,755,000											83	%		484,448

II.	RETAIL PROPERTIES
	The Avenue West Cobb	Atlanta		256,000		11.50	%		94	%		95	%		1	%		—
	North Point MarketCenter	Atlanta		401,000		10.32	%		100	%		100	%		1	%		—
	The Avenue East Cobb	Atlanta		230,000		11.50	%		86	%		86	%		0	%		4,073
	The Avenue Peachtree City	Atlanta		183,000		11.50	%		92	%		91	%		0	%		—
	Emory Point	Atlanta		80,000		75.00	%		82	%		79	%		0	%		7,180

	GEORGIA			1,150,000											2	%		11,253
	The Avenue Murfreesboro	Nashville		751,000		50.00	%		88	%		87	%		5	%		47,270
	Mt. Juliet Village (5)	Nashville		91,000		50.50	%		80	%		80	%		1	%		3,106
	The Shops of Lee Village (5)	Nashville		74,000		50.50	%		89	%		83	%		0	%		2,803
	Creek Plantation Village (5)	Chattanooga		78,000		50.50	%		98	%		91	%		0	%		3,069

	TENNESSEE			994,000											6	%		56,248
	Tiffany Springs MarketCenter	Kansas City		238,000		88.50	%		87	%		86	%		4	%		—

	MISSOURI			238,000											4	%		—
	Highland City Town Center (5)	Lakeland		96,000		50.50	%		87	%		87	%		1	%		5,286
	The Avenue Viera	Viera		332,000		11.50	%		96	%		96	%		1	%		—
	Mahan Village (3)	Tallahassee		147,000		100.00	%		88	%		55	%		1	%		13,027
	Viera MarketCenter	Viera		178,000		11.50	%		94	%		97	%		0	%		—

	FLORIDA			753,000											3	%		18,313
	Greenbrier MarketCenter	Chesapeake		376,000		10.32	%		100	%		100	%		1	%		—

	VIRGINIA			376,000											1	%		—
	Los Altos MarketCenter	Long Beach		157,000		10.32	%		100	%		94	%		0	%		—

	CALIFORNIA			157,000											0	%		—

	TOTAL RETAIL PROPERTIES			3,668,000											16	%		85,814

III.	APARTMENTS

	Emory Point	Atlanta		404,000		75.00	%		30	%		21	%		1	%		25,456

	GEORGIA

	TOTAL PORTFOLIO			11,827,000											100	%		595,718

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

(2)	Calculation is based on amounts for the three months ended December 31, 2012.

(3)	This property is shown as 100% as it is owned through a consolidated joint venture. See Joint Venture Information included herein for further details.

(4)	Contains 4 Buildings—100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East.

(5)	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.

(6)	This property is classified as held for sale as of December 31, 2012.

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE

LEASING AND OCCUPANCY


											Weighted			Weighted			Weighted
		Percent			Percent			Percent			Average			Average			Average
		Leased			Leased			Leased			Occupancy			Occupancy			Occupancy
Property Description		4Q11			3Q12			4Q12			4Q 11 (1)			3Q 12 (1)			4Q 12 (1)
I.	OFFICE PROPERTIES
	Terminus 100		97	%		96	%		96	%		97	%		94	%		95	%
	191 Peachtree Tower		82	%		87	%		87	%		79	%		82	%		82	%
	The American Cancer Society Center		83	%		83	%		82	%		86	%		84	%		83	%
	Meridian Mark Plaza		97	%		98	%		98	%		97	%		97	%		98	%
	Emory University Hospital Midtown Medical Office Tower		100	%		99	%		99	%		100	%		96	%		99	%
	North Point Center East (2)		91	%		94	%		91	%		94	%		82	%		92	%
	Terminus 200		87	%		88	%		88	%		63	%		88	%		88	%

	GEORGIA—Company Share (3)		87	%		89	%		89	%		87	%		86	%		87	%
	The Points at Waterview		88	%		90	%		90	%		86	%		90	%		90	%

	TEXAS—Company Share (3)		88	%		90	%		90	%		86	%		90	%		90	%
	Lakeshore Park Plaza		95	%		97	%		98	%		96	%		96	%		96	%
	600 University Park Place		93	%		95	%		98	%		92	%		94	%		94	%

	ALABAMA—Company Share (3)		94	%		96	%		98	%		94	%		95	%		95	%
	Gateway Village		100	%		100	%		100	%		100	%		100	%		100	%

	NORTH CAROLINA—Company Share (3)		100	%		100	%		100	%		100	%		100	%		100	%

	TOTAL OFFICE PROPERTIES—Company Share (3)		89	%		91	%		91	%		89	%		88	%		89	%

II.	RETAIL PROPERTIES
	The Avenue West Cobb		96	%		95	%		94	%		98	%		96	%		95	%
	North Point MarketCenter		100	%		100	%		100	%		91	%		100	%		100	%
	The Avenue East Cobb		86	%		86	%		86	%		78	%		86	%		86	%
	The Avenue Peachtree City		89	%		94	%		92	%		90	%		89	%		91	%

	GEORGIA—Company Share (3)		94	%		95	%		94	%		90	%		94	%		94	%
	The Avenue Murfreesboro		88	%		88	%		88	%		86	%		87	%		87	%
	Mt. Juliet Village		80	%		80	%		80	%		77	%		80	%		80	%
	The Shops of Lee Village		83	%		87	%		89	%		79	%		83	%		83	%
	Creek Plantation Village		93	%		93	%		98	%		92	%		93	%		91	%

	TENNESSEE—Company Share (3)		87	%		87	%		88	%		85	%		87	%		87	%
	Tiffany Springs MarketCenter		83	%		87	%		87	%		83	%		84	%		86	%

	MISSOURI—Company Share (3)		83	%		87	%		87	%		83	%		84	%		86	%
	Highland City Town Center		87	%		87	%		87	%		87	%		87	%		87	%
	The Avenue Viera		97	%		97	%		96	%		97	%		95	%		96	%
	Viera MarketCenter		94	%		96	%		94	%		96	%		95	%		97	%

	FLORIDA—Company Share (3)		92	%		92	%		92	%		92	%		91	%		92	%
	Greenbrier MarketCenter		100	%		100	%		100	%		100	%		100	%		100	%

	VIRGINIA—Company Share (3)		100	%		100	%		100	%		100	%		100	%		100	%
	Los Altos MarketCenter		100	%		100	%		100	%		98	%		99	%		94	%

	CALIFORNIA—Company Share (3)		100	%		100	%		100	%		98	%		99	%		94	%

	TOTAL RETAIL PROPERTIES—Company Share (3)		88	%		89	%		90	%		87	%		88	%		89	%

	TOTAL PORTFOLIO—Company Share (3)		89	%		91	%		91	%		89	%		88	%		89	%

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

(2)	Contains 4 Buildings—100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East.

(3)	Company Share represents the applicable percentage weighted for the Company’s ownership interest.

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE (1)

NET OPERATING INCOME

($ in thousands)


	Three Months Ended							Q4 ‘12 vs. Q4 ‘11 % Change			Q4 ‘12 vs. Q3 ‘12 % Change
	December 31, 2012		December 31, 2011		September 30, 2012			Q4 ‘12 vs. Q4 ‘11 % Change			Q4 ‘12 vs. Q3 ‘12 % Change
Rental Property Revenues (2)
Office		26,830		26,693		27,241			0.5	%		-1.5	%
Retail		4,830		4,701		4,843			2.7	%		-0.3	%

Total Rental Property Revenues		31,660		31,394		32,084			0.8	%		-1.3	%
Rental Property Operating Expenses (2)
Office		10,889		10,569		11,425			3.0	%		-4.7	%
Retail		1,183		1,102		1,274			7.4	%		-7.1	%

Total Rental Property Operating Expenses		12,072		11,671		12,699			3.4	%		-4.9	%
Same Property Net Operating Income
Office		15,942		16,124		15,816			-1.1	%		0.8	%
Retail		3,647		3,599		3,569			1.3	%		2.2	%

Total Same Property Net Operating Income		19,589		19,723		19,385			-0.7	%		1.1	%

	Three Months Ended							Q4 ‘12 vs. Q4 ‘11 % Change			Q4 ‘12 vs. Q3 ‘12 % Change
	December 31, 2012		December 31, 2011		September 30, 2012			Q4 ‘12 vs. Q4 ‘11 % Change			Q4 ‘12 vs. Q3 ‘12 % Change
Cash Basis Same Property Net Operating Income (3)
Office		15,359		15,319		15,434			0.3	%		-0.5	%
Retail		3,597		3,537		3,484			1.7	%		3.3	%

Total Cash Basis Same Property Net Operating Income		18,956		18,856		18,918			0.5	%		0.2	%

	Year Ended
	December 31,
	2012		2011		% Change
Rental Property Revenues (2)
Office		107,451		106,599		0.8	%
Retail		19,308		19,203		0.5	%

Total Rental Property Revenues		126,759		125,802		0.8	%
Rental Property Operating Expenses
Office		43,923		44,610		-1.5	%
Retail		5,061		5,067		-0.1	%

Total Rental Property Operating Expenses		48,984		49,677		-1.4	%
Same Property Net Operating Income
Office		63,528		61,990		2.5	%
Retail		14,247		14,137		0.8	%

Total Same Property Net Operating Income		77,775		76,127		2.2	%

	Year Ended
	December 31,
	2012		2011		% Change
Cash Basis Same Property Net Operating Income (3)
Office		61,257		56,706		8.0	%
Retail		13,977		13,823		1.1	%

Total Cash Basis Same Property Net Operating Income		75,234		70,529		6.7	%

(1)	Same Properties include those office and retail properties that were operational on January 1, 2011, excluding properties subsequently sold.

(2)	Rental Property Revenues and Expenses includes results for the Company and its share of unconsolidated joint ventures.

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

COUSINS PROPERTIES INCORPORATED

SQUARE FEET EXPIRING

As of December 31, 2012

OFFICE

As of December 31, 2012, the Company’s office portfolio included 14 commercial office properties. The weighted average remaining lease term of these office properties was approximately six years as of December 31, 2012. 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:


																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total
*Company Share*
Square Feet Expiring		341,823			324,807			507,656			855,524			653,729			333,857			338,038			290,306			502,502			1,429,527			5,577,769
% of Leased Space		6	%		6	%		9	%		15	%		12	%		6	%		6	%		5	%		9	%		26	%		100	%
Annual Contractual Rent ($000’s) (1)	$	6,684		$	6,734		$	11,268		$	16,194		$	15,742		$	9,208		$	8,260		$	7,889		$	12,707		$	34,017		$	128,703
Annual Contractual Rent/Sq. Ft. (1)	$	19.55		$	20.73		$	22.20		$	18.93		$	24.08		$	27.58		$	24.43		$	27.17		$	25.29		$	23.80		$	23.07
RETAIL As of December 31, 2012, the Company’s retail portfolio included 16 retail properties. The weighted average remaining lease term of these retail properties was approximately nine years as of December 31, 2012. 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:

																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total
*Company Share*
Square Feet Expiring (2)		44,332			51,254			55,863			66,176			90,812			214,923			150,656			32,593			19,027			363,070			1,088,706
% of Leased Space		4	%		5	%		5	%		6	%		8	%		20	%		14	%		3	%		2	%		33	%		100	%
Annual Contractual Rent ($000’s) (1)	$	911		$	952		$	1,047		$	1,226		$	1,908		$	4,420		$	2,971		$	624		$	527		$	3,844		$	18,430
Annual Contractual Rent/Sq. Ft. (1)	$	20.55		$	18.58		$	18.75		$	18.53		$	21.01		$	20.57		$	19.72		$	19.16		$	27.71		$	10.59		$	16.93

(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

As of December 31, 2012


Tenant (1)	Product Type	Company Share of Annualized Base Rent (2)	Average Remaining Lease Term (Years)
1. Deloitte & Touche	Office	5%	10
2. American Cancer Society	Office	4%	10
3. Smith, Gambrell & Russell, LLP	Office	4%	9
4. CB Richard Ellis, Inc.	Office	3%	7
5. Internap Network Services	Office	3%	7
6. US South Communications	Office	3%	9
7. Bank of America (3)	Office	2%	4
8. MedAssets Net Revenue Systems, LLC	Office	2%	2
9. Morgan Stanley	Office	2%	6
10. tvsdesign	Office	2%	11
11. Emory University	Office	2%	4
12. Bombardier Aerospace Corporation	Office	2%	10
13. Publix	Retail	2%	16
14. Wells Fargo Bank, N.A.	Office	1%	4
15. Northside Hospital	Office	1%	2
16. Cumulus Media, Inc.	Office	1%	5
17. Georgia Lottery Corporation	Office	1%	11
18. Premiere Global Services, Inc.	Office	1%	6
19. Synovus	Office	1%	4
20. Children’s Healthcare of Atlanta	Office	1%	10

		43%	8

(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)	A portion of the Company’s economic exposure for this tenant is limited to a fixed return through a joint venture arrangement.

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

DEVELOPMENT PIPELINE (1)

As of December 31, 2012

($ in thousands)


Project	Metropolitan Area		Company’s Ownership Interest			Estimated Project Cost (2)		Project Cost Incurred to Date (2)		Number of Apartment Units/Square Feet		Percent Leased			Actual Opening (3)		Estimated Stabilization(4)
Emory Point (Phase I)		Atlanta, GA		75	%	$	102,300	$	83,238
Apartments											443		30	%		3Q 12		2Q 14
Retail											80,000		82	%		4Q 12		4Q 13
Mahan Village		Tallahassee, FL		100	%(5)	$	25,800	$	23,909
Retail											147,000		88	%		3Q 12		3Q 13

(1)

This schedule shows projects currently under active development through the point of stabilization. Amounts included in the estimated project cost column represent the estimated costs of the project through stabilization. Significant estimation is required to derive these costs and the final costs may differ from these estimates. The projected stabilization dates are also estimates and are subject to change as the project proceeds through the development process.

(2)

Amount represents 100% of the estimated project cost. The projects are being funded with a combination of equity from the partners and $61.1 million and $15 million of construction loans for Emory Point and Mahan Village, respectively. As of December 31, 2012, $43.5 million and $13.0 million were outstanding under the Emory Point and Mahan Village loans, respectively.

(3)	Actual opening represents the quarter within which the first retail space was open for operations and the quarter that the first apartment unit was occupied.

(4)	Estimated stabilization represents the quarter within which the Company estimates it will achieve 90% economic occupancy.

(5)	Company’s ownership interest is shown at 100% as Mahan Village is owned in a joint venture which is consolidated with the Company. See Joint Venture Information included herein for further details.

COUSINS PROPERTIES INCORPORATED

INVENTORY OF LAND HELD

As of December 31, 2012


	Metropolitan Area	Company’s Ownership Interest			Developable Land Area (Acres)
COMMERCIAL
Jefferson Mill Business Park	Atlanta		100.00	%		123
Wildwood Office Park	Atlanta		50.00	%		40
North Point	Atlanta		100.00	%		37
Wildwood Office Park	Atlanta		100.00	%		23
The Avenue Forsyth-Adjacent Land	Atlanta		100.00	%		11
549 / 555 / 557 Peachtree Street	Atlanta		100.00	%		1

Georgia						235

Round Rock	Austin		100.00	%		60
Research Park V	Austin		100.00	%		6

Texas						66

Highland City Town Center -Outparcels, Adjacent Land (1) (2) (3)	Lakeland		50.50	%		55

Florida						55

The Shops of Lee Village-Outparcels (2) (3)	Nashville		50.50	%		6
The Avenue Murfreesboro-Outparcels (2) (3)	Nashville		50.00	%		5

Tennessee						11

Tiffany Springs MarketCenter-Outparcels (2)	Kansas City		100.00	%		12

Missouri						12

TOTAL COMMERCIAL LAND ACRES HELD						379

COMPANY’S SHARE OF TOTAL ACRES						325

COST BASIS OF COMMERCIAL LAND HELD					$	64,124

COMPANY’S SHARE OF COST BASIS OF COMMERCIAL LAND HELD					$	38,002

RESIDENTIAL (4)
Paulding County	Atlanta		50.00	%		5,565
Blalock Lakes	Atlanta		100.00	%		2,800
Callaway Gardens (5)	Atlanta		100.00	%		218
The Lakes at Cedar Grove	Atlanta		100.00	%		25
Longleaf at Callaway	Atlanta		100.00	%		4

Georgia						8,612

Padre Island	Corpus Christi		50.00	%		15

Texas						15

TOTAL RESIDENTIAL LAND ACRES HELD						8,627

COMPANY’S SHARE OF TOTAL ACRES						5,837

COST BASIS OF RESIDENTIAL LAND HELD					$	27,434

COMPANY’S SHARE OF COST BASIS OF RESIDENTIAL LAND HELD					$	21,335

GRAND TOTAL COMPANY’S SHARE OF ACRES						6,162

GRAND TOTAL COMPANY’S SHARE OF COST BASIS OF LAND HELD					$	59,337

(1)	Land is adjacent to an existing retail center and is anticipated to either be sold to a third party or developed as an additional phase of the retail center.

(2)	Land relates to outparcels available for sale or ground lease.

(3)	This project is owned through a joint venture with a third party who has contributed equity. See Joint Venture Information included herein for further details.

(4)	Residential represents land that may be sold to third parties as lots or in large tracts for residential or commercial development.

(5)	Company’s ownership interest is shown at 100% as Callaway Gardens is owned in a joint venture which is consolidated with the Company. See Joint Venture Information included herein for further details.

COUSINS PROPERTIES INCORPORATED

DEBT OUTSTANDING

As of December 31, 2012

($ in thousands)


Description (Interest Rate Base, if not fixed)	Company’s Ownership Interest			Rate End of Quarter			Maturity Date		Company’s Share of Debt Maturities and Principal Payments																					Company’s Share Recourse (1)
Description (Interest Rate Base, if not fixed)	Company’s Ownership Interest			Rate End of Quarter			Maturity Date		2013			2014			2015			2016			2017			Thereafter			Total			Company’s Share Recourse (1)
CONSOLIDATED DEBT
Floating Rate Debt
Mahan Village (LIBOR + 1.65%; $15mm facility)		100.00	%(3)		1.86	%		9/12/2014		—			13,027			—			—			—			—			13,027			3,257
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (2)		100.00	%		1.71	%		2/28/2016		—			—			—			—			—			—			—			—

Total Floating Rate Debt										—			13,027			—			—			—			—			13,027			3,257

Fixed Rate Debt
Callaway Gardens		100.00	%		4.13	%		11/18/2013		172			—			—			—			—			—			172			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016		512			541			573			14,025			—			—			15,651			—
The American Cancer Society Center (4)		100.00	%		6.45	%		9/1/2017		1,528			1,632			1,741			1,834			127,508			—			134,243			—
191 Peachtree Tower		100.00	%		3.35	%		10/1/2018		—			—			—			1,305			2,013			96,682			100,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020		381			405			430			456			484			24,038			26,194			—
Terminus 100		100.00	%		5.25	%		1/1/2023		2,182			2,300			2,424			2,554			2,691			123,972			136,123			—

Total Fixed Rate Debt										4,775			4,878			5,168			20,174			132,696			244,692			412,383			—

TOTAL CONSOLIDATED DEBT										4,775			17,905			5,168			20,174			132,696			244,692			425,410			3,257

UNCONSOLIDATED DEBT
Floating Rate Debt
The Avenue Murfreesboro (LIBOR + 3.0%; $97.5mm facility) (5)		50.00	%		3.21	%		12/31/2013		47,270			—			—			—			—			—			47,270			26,220
Terminus 200 (LIBOR + 2.5%; $92mm facility)		20.00	%		2.71	%		12/31/2013		14,868			—			—			—			—			—			14,868			—
Emory Point (LIBOR + 1.85%, $61.1mm facility)		75.00	%		2.06	%		6/28/2014		—			32,636			—			—			—			—			32,636			11,456
Highland City Town Center (LIBOR + 2.65%)		50.50	%(3)		2.86	%		1/1/2016		109			116			123			4,938			—			—			5,286			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(3)		2.86	%		1/1/2016		64			67			71			2,867			—			—			3,069			—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)		50.50	%(3)		3.06	%		1/1/2016		51			58			62			2,935			—			—			3,106			1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)		50.50	%(3)		3.06	%		1/1/2016		46			53			56			2,648			—			—			2,803			1,388

Total Floating Rate Debt										62,408			32,930			312			13,388			—			—			109,038			40,602

Fixed Rate Debt
Emory University Hospital Midtown Medical Office Tower		50.00	%		5.90	%		6/1/2013		23,248			—			—			—			—			—			23,248			—
Gateway Village (6)		50.00	%		6.41	%		12/1/2016		7,917			8,439			8,997			8,768			—			—			34,121			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017		74			78			81			85			3,755			—			4,073			—

Total Fixed Rate Debt										31,239			8,517			9,078			8,853			3,755			—			61,442			—

TOTAL UNCONSOLIDATED DEBT									$	93,647		$	41,447		$	9,390		$	22,241		$	3,755		$	—		$	170,480		$	40,602

TOTAL DEBT									$	98,422		$	59,352		$	14,558		$	42,415		$	136,451		$	244,692		$	595,890		$	43,859

TOTAL MATURITIES (7)									$	85,558		$	45,663		$	—		$	27,413		$	131,263		$	227,841		$	517,739

% OF MATURITIES										17	%		9	%		0	%		5	%		25	%		44	%		100	%


Floating and Fixed Rate Debt Analysis
	Total Debt ($)		Total Debt (%)			Weighted Average Interest Rate			Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	122,065		20	%		2.67	%		1.4
Fixed Rate Debt		473,825		80	%		5.35	%		6.3

Total Debt	$	595,890		100	%		4.80	%		5.3

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

(2)	Total borrowing capacity of the Credit Facility at December 31, 2012 was 269.2 million. The spread over LIBOR at December 31, 2012 was 1.50%.

(3)	The ownership percentage of the venture holding these loans and the allocation of results of operations and/or gain or loss on property sales may be disproportionate.

(4)	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.

(5)	CF Murfreesboro Associates amended this note in the fourth quarter of 2012. The amendment extended the maturity date, reduced the amount available to $97.5 million, and reduced the interest rate spread over LIBOR to 2.5% for the last 5 months of the term.

(6)	See Joint Venture Information for further details on the Gateway Village venture structure. Based on the structure of the venture and the nature of the related debt, the Company excludes the Gateway Village debt in certain of its leverage calculations.

(7)	Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.

COUSINS PROPERTIES INCORPORATED

JOINT VENTURE INFORMATION

As of December 31, 2012


		Cash Flows to Cousins
Unconsolidated Joint Ventures	Properties	Operating	Capital Transactions/Other	GAAP Accounting

CP Venture Five	The Avenue West Cobb, The Avenue East Cobb, The Avenue Peachtree City, The Avenue Viera, Viera MarketCenter	11.5% of operating cash flows.	11.5% of proceeds.	Recognize 11.5% of net income from venture.

Charlotte Gateway Village LLC	Gateway Village	Preferred return on investment of 11.46%.	Cousins receives 50% of proceeds after partner receives distributions equal to Cousins. Cousins distributions are capped at a cumulative 17% IRR.	Recognize 11.46% of invested capital each period.

CF Murfreesboro Associates	The Avenue Murfreesboro	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.

CP Venture Two LLC	Greenbrier MarketCenter, Los Altos MarketCenter, North Point MarketCenter	10.4% of operating cash flows.	10.4% of proceeds.	Recognize 10.4% of net income from venture.

MSREF/Cousins Terminus 200 LLC	Terminus 200	20% of operating cash flows until Morgan Stanley receives a 15% IRR. Then, 30% of operating cash flows until Morgan Stanley receives a 20% IRR. Thereafter, 40% of operating cash flows.	Same as operating cash flows.	Recognize 20% of net income from venture.

CL Realty	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.

Cousins Watkins LLC	Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village, Highland City Town Center	Preferred return of 9%, 39.65% of remaining operating cash flows.	Cousins receives all proceeds until it receives a 16% IRR. Then, Watkins receives their unreturned capital. Thereafter, 39.65% of remaining proceeds.	Recognize net income equal to 16% of investment.

Temco Associates LLC	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.

EP I LLC	Emory Point	75% of operating cash flows.	75% of proceeds.	Recognize 75% of net income from venture.

Crawford Long-CPI, LLC	Emory University Hospital Midtown Medical Office Tower	50% of Operating Cash Flows.	50% of proceeds.	Recognize 50% of net income from venture.

Wildwood Associates	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
Consolidated Joint Ventures

CP Venture Six	Tiffany Springs MarketCenter, Promenade	Cousins receives all operating cash flow after partner receives preferred return of 6.5%.	Cousins receives 88.5% of proceeds from non-liquidating capital transactions. Upon liquidation, Cousins receives proceeds equal to an 8.5% IRR after partner receives an 8.5% IRR. Thereafter, Cousins receives 88.5% of proceeds.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest for operating cash flows based on amounts earned by partner. Recognize additional minority interest to arrive at 8.5% IRR as assets are sold.

Cousins/Callaway LLC	Land	Cousins receives the first $2.0 million of cash flow; 77% of the next $17.7 million of cash flow; 50% of remaining cash flow until it receives an IRR of 20%; 40% of remaining until it receives an IRR of 25%; 25% of remainder.	Same as operating cash flow.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner.

Cousins/Daniel LLC	Lakeshore Park Plaza, 600 University Park Place	Through preferred returns, Cousins receives all operating cash flows.	Cousins receives all capital proceeds.	Recognize revenues and expenses as if a wholly-owned property. No minority interest currently recorded.

Mahan Village LLC	Mahan Village	Cousins receives preferred return of 9% and receives 87% of remainder after partner receives 9% preferred return.	Cousins receives all proceeds until it obtains a 16% IRR. Cousins receives 75% of remaining proceeds after partner receives its investment and a 9% preferred return.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner.

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:
TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS		5,363			1,896			6,357			5,821			2,528			16,602			1,933			2,393			4,825			4,031			13,181
SECOND GENERATION BUILDING IMPROVEMENTS		624			25			24			35			380			464			155			730			137			250			1,271

		5,987			1,921			6,381			5,856			2,908			17,067			2,087			3,122			4,962			4,281			14,453
RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,613			51			44			372			1,607			2,074			246			64			116			180			605

TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX		8,600			1,972			6,425			6,228			4,515			19,140			2,333			3,186			5,077			4,461			15,058
NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		54,867			13,721			13,998			14,122			15,336			57,177			16,451			16,395			17,121			17,260			67,227
RETAIL CONSOLIDATED PROPERTIES		3,311			856			872			900			876			3,504			897			868			946			1,152			3,863
OTHER RENTAL OPERATIONS - CONSOLIDATED		96			1			—			—			—			1			—			—			—			—			—

NET OPERATING INCOME - CONSOLIDATED		58,274			14,578			14,870			15,023			16,213			60,684			17,348			17,263			18,067			18,412			71,090
RENTAL PROPERTY REVENUES		101,715			25,204			26,114			26,792			27,486			105,596			29,573			30,219			32,421			33,394			125,607
RENTAL PROPERTY OPERATING EXPENSES		(43,441	)		(10,626	)		(11,244	)		(11,769	)		(11,273	)		(44,912	)		(12,225	)		(12,956	)		(14,354	)		(14,982	)		(54,517	)

NET OPERATING INCOME - CONSOLIDATED		58,274			14,578			14,870			15,023			16,213			60,684			17,348			17,263			18,067			18,412			71,090
INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		46,613			11,089			10,574			10,749			8,680			41,092			7,919			6,455			5,226			2,917			22,517
RENTAL PROPERTY OPERATING EXPENSES		(16,824	)		(3,631	)		(4,228	)		(4,397	)		(3,224	)		(15,480	)		(2,279	)		(2,228	)		(1,554	)		(685	)		(6,746	)

NET OPERATING INCOME		29,789			7,458			6,346			6,352			5,456			25,612			5,640			4,227			3,672			2,232			15,771
TERMINATION FEES		105			24			—			—			53			77			192			13			3,232			75			3,512
INTEREST AND OTHER INCOME (EXPENSE)		(25	)		(16	)		72			(16	)		(1	)		39			(17	)		(14	)		(1	)		(6	)		(38	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(5	)		—			—			—			—			—			—			—			—			—			—

FFO FROM DISCONTINUED OPERATING PROPERTIES		29,864			7,466			6,418			6,336			5,508			25,728			5,815			4,226			6,903			2,301			19,245
THIRD PARTY MANAGEMENT AND LEASING REVENUES		18,977			4,088			4,605			5,398			5,268			19,359			4,711			6,029			4,789			836			16,365
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)

FFO FROM THIRD PARTY MANAGEMENT AND LEASING		1,584			(5	)		525			1,157			1,097			2,774			411			1,422			529			328			2,690
FFO FROM DISCONTINUED OPERATIONS		31,448			7,461			6,943			7,493			6,605			28,502			6,226			5,648			7,432			2,629			21,935
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(23,268	)		(5,150	)		(5,087	)		(4,733	)		(4,511	)		(19,481	)		(3,741	)		(2,468	)		(3,099	)		(36	)		(9,344	)
IMPAIRMENT LOSSES		—			—			—			—			(7,632	)		(7,632	)		(12,233	)		—			—			(1,558	)		(13,791	)

INCOME FROM DISCONTINUED OPERATIONS		8,180			2,311			1,856			2,760			(5,537	)		1,390			(9,749	)		3,180			4,333			1,035			(1,200	)

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)


	2010			2011 1st			2011 2nd		2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd		2012 4th			2012
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT
PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES—CONSOLIDATED:
RESIDENTIAL LOT SALES		2,514			165			80		165			2,605			3,015			949			535			732		400			2,616
OUTPARCEL SALES		13,429			—			—		—			—			—			—			—			—		—			—

TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		15,943			165			80		165			2,605			3,015			949			535			732		400			2,616
RESIDENTIAL LOT AND OUTPARCEL COST OF SALES—CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		1,940			119			76		158			2,588			2,941			564			416			354		87			1,420
OUTPARCEL COST OF SALES		8,759			(50	)		—		—			—			(50	)		—			—			—		—			—

TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES—CONSOLIDATED		10,699			69			76		158			2,588			2,891			564			416			354		87			1,420
TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		1,697			—			—		—			3,258			3,258			—			(30	)		—		—			(30	)

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY
SALES LESS COST OF SALES—CONSOLIDATED		6,941			96			4		7			3,275			3,382			385			90			378		313			1,166
SUMMARY—CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		574			46			4		7			17			74			385			120			378		313			1,196
OUTPARCEL SALES LESS COST OF SALES		4,670			50			—		—			—			50			—			—			—		—			—
TRACT SALES LESS COST OF SALES		1,697			—			—		—			3,258			3,258			—			(30	)		—		3,750			3,720

TOTAL CONSOLIDATED SALES LESS COST OF SALES		6,941			96			4		7			3,275			3,382			385			90			378		4,063			4,916
OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES—CONSOLIDATED:
OTHER SALES		34,442			4,657			7		—			—			4,664			—			174			—		520			694
OTHER COST OF SALES		(27,017	)		(2,500	)		13		—			—			(2,487	)		—			(119	)		—		(294	)		(413	)

OTHER SALES LESS COST OF SALES—CONSOLIDATED		7,425			2,157			20		—			—			2,177			—			55			—		226			281
UNCONSOLIDATED:
OTHER SALES—UNCONSOLIDATED:
OTHER SALES		389			—			—		—			—			—			—			—			—		—			—
OTHER COST OF SALES		(266	)		(5	)		—		—			—			(5	)		—			—			—		—			—
OTHER, NET		350			22			33		(2	)		25			77			(1	)		(2	)		—		31			28

OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED		473			17			33		(2	)		25			72			(1	)		(2	)		—		31			28

TOTAL OTHER SALES FFO		7,898			2,174			53		(2	)		25			2,249			(1	)		53			—		257			309
UNCONSOLIDATED:
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES—UNCONSOLIDATED:
RESIDENTIAL LOT SALES		7,768			1,186			2,229		1,875			2,053			7,343			—			—			—		—			—
OUTPARCEL SALES		516			—			—		—			—			—			—			—			—		—			—
TRACT SALES		10,633			572			29		152			41			794			176			—			—		—			176

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES		18,917			1,758			2,258		2,027			2,093			8,137			176			—			—		—			176
RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES—UNCONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		5,896			1,006			1,835		1,363			1,566			5,770			—			—			—		—			—
OUTPARCEL COST OF SALES		434			—			—		—			—			—			—			—			—		—			—
TRACT COST OF SALES		7,026			552			2		(15	)		(26	)		513			176			—			—		—			176

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES		13,356			1,558			1,837		1,348			1,540			6,283			176			—			—		—			176
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS
COST OF SALES—UNCONSOLIDATED		5,561			200			421		679			554			1,854			—			—			—		—			—
SUMMARY - UNCONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		1,872			180			394		512			487			1,573			—			—			—		—			—
OUTPARCEL SALES LESS COST OF SALES		82			—			—		—			—			—			—			—			—		—			—
TRACT SALES LESS COST OF SALES		3,607			20			27		167			67			281			—			—			—		—			—

RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES—SHARE OF UNCONSOLIDATEDS		5,561			200			421		679			554			1,854			—			—			—		—			—
TOTAL RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES LESS COST OF SALES		12,502			296			425		686			3,829			5,236			385			90			378		4,063			4,916

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES		12,242			3,357			3,322			3,406			3,507			13,592			3,661			3,271			3,211			2,612			12,755
RETAIL PROPERTIES		7,937			2,695			2,596			2,647			2,728			10,666			2,608			2,666			2,671			2,774			10,719
OTHER PROPERTIES		—			—			—			—			—			—			—			—						122			122

NET OPERATING INCOME		20,179			6,052			5,918			6,053			6,235			24,258			6,269			5,937			5,882			5,508			23,596
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES		5,561			200			421			679			554			1,854			—			—			—			—			—
OTHER SALES LESS COST OF SALES		473			17			33			(2	)		25			73			(1	)		(2	)		—			31			28
TERMINATION FEES		48			58			—			—			15			73			42			18			—			2			62
INTEREST EXPENSE		(4,252	)		(1,192	)		(1,147	)		(1,212	)		(1,180	)		(4,731	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)
OTHER EXPENSE		913			43			—			(413	)		(97	)		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)
IMPAIRMENT LOSSES		(3,746	)		—			(250	)		—			(28,753	)		(29,003	)		—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(22	)		(5	)		(5	)		(5	)		(5	)		(20	)		(5	)		(5	)		(5	)		—			(15	)

FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES		19,154			5,173			4,970			5,100			(23,206	)		(7,963	)		4,847			4,748			4,744			4,472			18,811
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		—			—			—			—			—			—			—			7,509			—			23,153			30,662
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(9,661	)		(2,678	)		(2,658	)		(2,440	)		(2,561	)		(10,337	)		(2,661	)		(2,495	)		(2,475	)		(2,584	)		(10,215	)
NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		9,493			2,496			2,312			2,660			(25,767	)		(18,299	)		2,186			9,762			2,269			25,042			39,258
MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END		8.34			8.35			8.54			5.85			6.41			6.41			7.58			7.75			7.94			8.35			8.35
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		103,392			103,631			103,714			103,714			103,702			103,702			104,139			104,215			104,136			104,090			104,090

COMMON STOCK CAPITALIZATION		862,289			865,319			885,718			606,727			664,730			664,730			789,374			807,666			826,840			869,152			869,152
PREFERRED STOCK-SERIES A-PRICE AT LIQUIDATION VALUE		74,827			74,827			74,827			74,827			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			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			169,602			169,602			169,602			169,602
DEBT		509,509			496,823			498,034			462,135			539,442			539,442			529,168			461,021			518,630			425,410			425,410
SHARE OF UNCONSOLIDATED DEBT		172,325			166,726			163,931			162,022			162,127			162,127			164,217			156,364			165,571			170,480			170,480

DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			595,890			595,890
TOTAL MARKET CAPITALIZATION		1,713,725			1,698,470			1,717,285			1,400,486			1,535,901			1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644
LEVERAGE RATIOS
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			595,890			595,890
TOTAL MARKET CAPITALIZATION		1,713,725			1,698,470			1,717,285			1,400,486			1,535,901			1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644
DEBT (2) / TOTAL MARKET CAPITALIZATION		40	%		39	%		39	%		45	%		46	%		46	%		42	%		39	%		41	%		36	%		36	%
TOTAL ASSETS-CONSOLIDATED		1,371,282			1,335,453			1,337,132			1,294,376			1,235,535			1,235,535			1,199,634			1,135,315			1,199,101			1,124,242			1,124,242
ACCUMULATED DEPRECIATION-CONSOLIDATED		274,925			286,547			298,085			286,399			289,473			289,473			302,782			281,739			294,710			258,075			258,075
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2)		485,993			485,029			499,381			507,201			516,686			516,686			467,303			454,388			461,500			403,141			403,141
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		(167,108	)		(165,119	)		(179,149	)		(181,947	)		(160,587	)		(160,587	)		(141,180	)		(140,303	)		(139,782	)		(97,868	)		(97,868	)

TOTAL UNDEPRECIATED ASSETS (2)		1,965,092			1,941,910			1,955,449			1,906,029			1,881,107			1,881,107			1,828,539			1,731,139			1,815,529			1,687,590			1,687,590
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			595,890			595,890
UNDEPRECIATED ASSETS (2)		1,965,092			1,941,910			1,955,449			1,906,029			1,881,107			1,881,107			1,828,539			1,731,139			1,815,529			1,687,590			1,687,590
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)		35	%		34	%		34	%		33	%		37	%		37	%		38	%		36	%		38	%		35	%		35	%
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			595,890			595,890
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602

DEBT (2) + PREFERRED		851,436			833,151			831,567			793,759			871,171			871,171			862,987			786,987			853,803			765,492			765,492
TOTAL MARKET CAPITALIZATION		1,713,725			1,698,470			1,717,285			1,400,486			1,535,901			1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION		50	%		49	%		48	%		57	%		57	%		57	%		52	%		49	%		51	%		47	%		47	%
DEBT (2) + PREFERRED		851,436			833,151			831,567			793,759			871,171			871,171			862,987			786,987			853,803			765,492			765,492
TOTAL UNDEPRECIATED ASSETS (2)		1,965,092			1,941,910			1,955,449			1,906,029			1,881,107			1,881,107			1,828,539			1,731,139			1,815,529			1,687,590			1,687,590
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)		43	%		43	%		43	%		42	%		46	%		46	%		47	%		45	%		47	%		45	%		45	%

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
EBITDA (2)
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			7,011			28,154
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		1,911			568			377			393			370			1,708			369			228			261			232			1,090
INCOME TAX PROVISION (BENEFIT)		(1,079	)		(64	)		27			(180	)		31			(186	)		27			33			60			(30	)		90
IMPAIRMENT LOSSES		6,300			3,508			250			—			125,376			129,134			—			—			488			—			488
PREDEVELOPMENT CHARGES		732			—			—			—			937			937			—			—			—			—			—
LOSS ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		9,827			—			—			74			—			74			94			—			—			—			94
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			—			—			—			—			—			(7,384	)		(75	)		(7,459	)
PARTICIPATION INTEREST INCOME		—			—			—			—			—			—			—			—			(3,366	)		—			(3,366	)
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			3,226			3,227			12,907

EBITDA (2)		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			24,532			98,490
COVERAGE RATIOS (2)
EBITDA		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			24,532			98,490
INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			7,011			28,154
INTEREST COVERAGE RATIO (2)		2.53			2.76			2.74			3.28			3.65			3.08			3.31			3.40			3.81			3.50			3.50
INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			7,011			28,154
SCHEDULED PRINCIPAL PAYMENTS		4,399			1,755			1,894			1,650			1,980			7,279			2,123			2,045			1,755			1,846			7,769
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			3,226			3,227			12,907

FIXED CHARGES		58,738			13,718			13,626			12,689			12,668			52,701			12,797			12,209			11,740			12,084			48,830
EBITDA		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			24,532			98,490
FIXED CHARGES COVERAGE RATIO (2)		1.78			1.76			1.71			2.02			2.15			1.90			1.93			1.93			2.19			2.03			2.02
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			595,890			595,890
ANNUALIZED EBITDA (3)		111,284			96,388			93,128			102,540			108,800			108,800			98,608			94,308			102,916			98,128			98,128
DEBT (2) / ANNUALIZED EBITDA (3)		6.13			6.88			7.11			6.09			6.45			6.45			7.03			6.55			6.65			6.07			6.07
DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH		12,176			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			4,685			18,748
COMMON STOCK		24,282			—			—			—			—			—			—			—			—			—			—

COMMON DIVIDENDS		36,458			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			4,685			18,748
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
FFO PAYOUT RATIO		111	%		57	%		43	%		33	%		-4	%		-24	%		35	%		36	%		18	%		33	%		28	%
FFO BEFORE CERTAIN CHARGES
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
IMPAIRMENT LOSSES (2)		6,300			3,508			250			—			125,376			129,134			—			—			488			—			488
PREDEVELOPMENT & OTHER CHARGES		732			—			—			—			937			937			(1,185	)		—			—			—			(1,185	)
LOSS ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		9,827			—			—			74			—			74			94			—			—			—			94
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			—			—			—			—			—			(7,384	)		(75	)		(7,459	)
PARTICIPATION INTEREST INCOME		—			—			—			—			—			—			—			—			(3,366	)		—			(3,366	)
SEPARATION CHARGES		1,045			101			77			15			4			197			213			79			574			1,118			1,985

FFO BEFORE CERTAIN CHARGES		50,685			11,731			11,223			14,398			16,115			53,467			12,610			13,231			15,997			15,210			57,049
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		72	%		40	%		42	%		32	%		29	%		35	%		37	%		35	%		29	%		31	%		33	%

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)


	2010			2011 1st			2011 2nd			2011 3rd			2011 4th			2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012
FAD (2)
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			14,167			66,492
FAS 13		(7,936	)		(2,637	)		(2,885	)		(3,095	)		(2,459	)		(11,076	)		(2,686	)		(2,152	)		(1,823	)		(1,659	)		(8,319	)
ABOVE AND BELOW MARKET RENTS		(90	)		(23	)		(15	)		(15	)		27			(26	)		108			87			124			174			493
SECOND GENERATION CAPEX		(8,600	)		(1,972	)		(6,425	)		(6,228	)		(4,515	)		(19,140	)		(2,333	)		(3,186	)		(5,077	)		(4,461	)		(15,058	)

FAD (2)		16,154			3,490			1,571			4,970			(117,149	)		(107,117	)		8,577			7,901			18,909			8,222			43,608
COMMON DIVIDENDS		36,458			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			4,685			18,748
FAD PAYOUT RATIO (2)		226	%		133	%		297	%		94	%		-4	%		-17	%		55	%		59	%		25	%		57	%		43	%
FAD BEFORE CERTAIN CHARGES
FAD (2)		16,154			3,490			1,571			4,970			(117,149	)		(107,117	)		8,577			7,901			18,909			8,222			43,608
IMPAIRMENT LOSSES (2)		6,300			3,508			250			—			125,376			129,134			—			—			488			—			488
PREDEVELOPMENT & OTHER CHARGES		732			—			—			—			937			937			(1,185	)		—			—			—			(1,185	)
LOSS ON DEBT EXTINGUISHMENT AND INTEREST RATE SWAP		9,827			—			—			74			—			74			94			—			—			—			94
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			—			—			—			—			—			(7,384	)		(75	)		(7,459	)
PARTICIPATION INTEREST INCOME		—			—			—			—			—			—			—			—			(3,366	)		—			(3,366	)
SEPARATION CHARGES		1,045			101			77			15			4			197			213			79			574			1,118			1,984

FAD BEFORE CERTAIN CHARGES		34,058			7,099			1,898			5,059			9,168			23,225			7,699			7,980			9,221			9,265			34,164
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		107	%		66	%		246	%		92	%		51	%		80	%		61	%		59	%		51	%		51	%		55	%
OPERATIONS RATIOS
REVENUES		154,234			33,899			30,191			31,313			33,644			129,047			34,653			33,794			40,582			39,250			148,279
REVENUES FROM DISCONTINUED OPERATIONS		79,163			15,202			15,268			16,148			14,012			60,630			12,821			12,497			13,257			3,755			42,330

REVENUES INCLUDING DISCONTINUED OPERATIONS		233,397			49,101			45,459			47,461			47,656			189,677			47,474			46,291			53,839			43,005			190,609
GENERAL AND ADMINISTRATIVE EXPENSES		28,517			7,400			6,133			4,295			6,338			24,166			6,623			5,646			5,255			5,684			23,208
REVENUES INCLUDING DISCONTINUED OPERATIONS		233,362			49,101			45,459			47,461			47,656			189,677			47,474			46,291			53,839			43,005			190,609
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS		12.2	%		15.1	%		13.5	%		9.0	%		13.3	%		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%
TOTAL UNDEPRECIATED ASSETS (2)		1,965,092			1,941,910			1,955,449			1,906,029			1,881,107			1,881,107			1,828,539			1,731,139			1,815,529			1,687,590			1,687,590
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS		1.5	%		1.5	%		1.3	%		0.9	%		1.3	%		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%

(1)

AMOUNTS MAY DIFFER SLIGHTLY FROM OTHER SCHEDULES CONTAINED HEREIN DUE TO ROUNDING.

(2)

INCLUDES COMPANY SHARE OF UNCONSOLIDATED JOINT VENTURES.

(3)

ANNUALIZED REPRESENTS QUARTER AMOUNT ANNUALIZED.

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

($ in thousands)


	Three Months Ended								Year Ended
	December 31,			December 31,		September 30,			December 31,
	2012			2011		2012			2012			2011
Net Operating Income
Same Property		19,589			19,723		19,385			77,775			76,127
Non-Same Property		6,563			8,180		8,235			32,683			34,426

Consolidated Property Net Operating Income		26,152			27,903		27,620			110,458			110,553

Less: Non-Cash Items
Straight-line rent		1,662			2,458		1,826			8,321			11,054
Other		(224	)		91		(29	)		(248	)		497

Non-Cash Items		1,438			2,549		1,797			8,073			11,551
Cash Basis Property Net Operating Income		24,714			25,354		25,823			102,384			99,002

Net Operating Income (1)
Operating Properties		18,412			16,212		18,068			71,088			60,681
Discontinued Operations		2,232			5,456		3,670			15,774			25,614
Share of Unconsolidated Joint Ventures		5,508			6,235		5,882			23,596			24,258

Total Net Operating Income		26,152			27,903		27,620			110,458			110,553

(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.

“Cash Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents.

“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 non-depreciable 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 FAD 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 and dividend policy 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, impairment losses on depreciable investment property 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, as a performance measure for incentive compensation to its officers and other key employees.

COUSINS PROPERTIES INCORPORATED

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

“FFO Before Certain Charges” represents FFO before non-depreciable 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.

“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, 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 Net Operating income for 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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