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

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8-K - FORM 8-K - COUSINS PROPERTIES INC	g27799e8vk.htm

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED
Quarterly Information Package
For the Quarter Ended June 30, 2011

TABLE OF CONTENTS


Press Release			1

Condensed Consolidated Statements of Operations			4

Funds From Operations			5

Condensed Consolidated Balance Sheets			6

Key Performance Indicators			7

Funds From Operations — Summary			8

Funds From Operations — Supplemental Detail			9

Portfolio Listing			13

Same Property Performance			15

Square Feet Expiring			16

Top 20 Tenants			17

Development Pipeline			18

Inventory of Commercial Land Held			19

Inventory of Lots and Tracts in Residential Projects			20

Debt Outstanding			21

Calculations and Reconciliations of Non-GAAP Financial Measures			23

Discussion of Non-GAAP Financial Measures			29

Certain matters contained in this package are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks. These include, but are not limited to, availability and terms of capital and financing; national and local economic conditions; the real estate industry in general and in specific markets; the potential for recognition of additional impairments due to continued adverse market and economic conditions; leasing risks; potential acquisitions, new investments and/or dispositions; the financial condition of existing tenants; rising interest and insurance rates; the availability of sufficient development or investment opportunities; environmental matters; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust, risks associated with development projects and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including those described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise, except as required under U.S. federal securities laws.

CONTACT:


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

COUSINS REPORTS RESULTS FOR SECOND QUARTER OF 2011

Highlights

	•		Funds From Operations (FFO) of $0.11 per share.

	•		Commenced Emory Point mixed-use project.

	•		Leased 424,000 square feet of office and retail space.

ATLANTA (August 3, 2011) — Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended June 30, 2011.

“This was another solid quarter with continued leasing momentum,” said Larry Gellerstedt, CEO of Cousins. “We’re seeing an overall increase in investment opportunities and are particularly excited about our Emory Point mixed-use development.”

Portfolio Activity

	•		Leased 225,000 square feet of office space and 199,000 square feet of retail space.

	•		Office and Retail portfolios are 91% and 88% leased, respectively.

	•		Subsequent to quarter end, renewed AGL Services Company for 238,000 square feet at Ten Peachtree Place and renewed Bombardier for 86,000 square feet at The Points at Waterview, extending these leases to 2026 and 2023, respectively.

Investment/Disposition Activity

	•		Commenced construction on the $102 million Phase I of Emory Point in Atlanta, a mixed-use project comprised of 443 apartment units and 80,000 square feet of retail space scheduled to open in fall 2012.

	•		Sold 108 residential lots for net gains of $398,000.

Financial Results

FFO was $10.9 million, or $0.11 per share, for the second quarter of 2011 compared with $7.9 million, or $0.08 per share, for the second quarter of 2010. FFO was $19.0 million, or $0.18 per share, for the six months ended June 30, 2011, compared with $21.9 million, or $0.22 per share, for the same period in 2010.

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

CUZ Reports Second Quarter Results
Page 2
August 3, 2011

Net loss available to common stockholders was $4.7 million, or $0.05 per share, for the second quarter of 2011 compared with net loss available of $8.6 million, or $0.09 per share, for the second quarter of 2010. Net loss available was $12.6 million, or $0.12 per share, for the six months ended June 30, 2011, compared with $10.2 million, or $0.10 per share, for the same period in 2010.

Investor Conference Call and Webcast

The Company will conduct a conference call at 1:00 p.m. (Eastern Time) on Thursday, August 4, 2011, to discuss the results of the quarter ended June 30, 2011. The number to call for this interactive teleconference is (212) 231-2900.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21530938. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q2 2011 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, 20 million square feet of retail space, more than 3,500 multi-family units and more than 60 single-family neighborhoods. The Company is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ. For more, please visit www.cousinsproperties.com.

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

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CUZ Reports Second Quarter Results
Page 3
August 3, 2011

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

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except share and per share amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
REVENUES:
Rental property revenues	$	36,736		$	35,969		$	72,884		$	70,742
Fee income		3,435			3,728			6,820			7,272
Third party management and leasing revenues		4,605			4,485			8,693			9,279
Multi-family residential unit sales		7			7,943			4,664			18,089
Residential lot and outparcel sales		80			316			245			14,135
Other		556			171			1,069			295

		45,419			52,612			94,375			119,812


COSTS AND EXPENSES:
Rental property operating expenses		15,472			15,246			29,720			29,777
Third party management and leasing expenses		4,080			4,214			8,173			9,172
Multi-family residential unit cost of sales		(13	)		6,108			2,487			14,078
Residential lot and outparcel cost of sales		76			275			145			9,371
General and administrative expenses		6,133			6,763			13,533			14,780
Interest expense		7,358			10,286			14,902			20,067
Reimbursed expenses		1,371			1,398			2,883			3,257
Depreciation and amortization		13,375			14,231			26,850			27,407
Impairment loss		—			586			3,508			586
Separation expenses		77			33			178			101
Other		672			3,002			1,534			3,864

		48,601			62,142			103,913			132,460


LOSS ON EXTINGUISHMENT OF DEBT		—			—			—			(592	)


LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		(3,182	)		(9,530	)		(9,538	)		(13,240	)

(PROVISION) BENEFIT FOR INCOME TAXES FROM OPERATIONS		(27	)		(14	)		37			1,132

INCOME FROM UNCONSOLIDATED JOINT VENTURES		2,312			2,394			4,808			5,314


LOSS FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		(897	)		(7,150	)		(4,693	)		(6,794	)

GAIN ON SALE OF INVESTMENT PROPERTIES		59			1,061			118			1,817

LOSS FROM CONTINUING OPERATIONS		(838	)		(6,089	)		(4,575	)		(4,977	)

INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Income from discontinued operations		40			1,305			112			2,373
Loss on sale of investment properties		—			—			(384	)		—

		40			1,305			(272	)		2,373

NET LOSS		(798	)		(4,784	)		(4,847	)		(2,604	)

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(681	)		(584	)		(1,262	)		(1,110	)


NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST		(1,479	)		(5,368	)		(6,109	)		(3,714	)

DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,227	)		(3,227	)		(6,454	)		(6,454	)


NET LOSS AVAILABLE TO COMMON STOCKHOLDERS	$	(4,706	)	$	(8,595	)	$	(12,563	)	$	(10,168	)


PER COMMON SHARE INFORMATION — BASIC AND DILUTED:
Loss from continuing operations attributable to controlling interest	$	(0.05	)	$	(0.10	)	$	(0.12	)	$	(0.12	)
Income from discontinued operations		—			0.01			—			0.02

Net loss available to common stockholders — basic and diluted	$	(0.05	)	$	(0.09	)	$	(0.12	)	$	(0.10	)


WEIGHTED AVERAGE SHARES — BASIC AND DILUTED		103,659			101,001			103,588			100,538

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
(Unaudited, in thousands, except per share amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net Loss Available to Common Stockholders	$	(4,706	)	$	(8,595	)	$	(12,563	)	$	(10,168	)
Depreciation and amortization:
Consolidated properties		13,375			14,231			26,850			27,407
Discontinued properties		—			333			64			1,052
Share of unconsolidated joint ventures		2,663			2,453			5,346			4,747
Depreciation of furniture, fixtures and equipment:
Consolidated properties		(372	)		(462	)		(935	)		(1,029	)
Discontinued properties		—			(1	)		—			(5	)
Share of unconsolidated joint ventures		(5	)		(5	)		(10	)		(11	)
(Gain) loss on sale of investment properties:
Consolidated properties		(59	)		(1,061	)		(118	)		(1,817	)
Discontinued properties		—			—			384			—
Gain on sale of undepreciated investment properties		—			1,002			—			1,699

Funds From Operations Available to Common Stockholders	$	10,896		$	7,895		$	19,018		$	21,875


Per Common Share — Basic and Diluted:
Net Loss Available	$	(.05	)	$	(.09	)	$	(.12	)	$	(.10	)

Funds From Operations	$	.11		$	.08		$	.18		$	.22


Weighted Average Shares — Basic		103,659			101,001			103,588			100,538

Weighted Average Shares — Diluted		103,684			101,001			103,606			100,538

The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income (Loss) Available to Common Stockholders for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts and investors as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)


	June 30,
	2011			December 31, 2010
	(Unaudited)
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $298,085 and $274,925 in 2011 and 2010, respectively	$	868,155		$	898,119
Land held for investment or future development		120,557			123,879
Residential lots		63,725			63,403
Other		738			2,994

Total properties		1,053,175			1,088,395

CASH AND CASH EQUIVALENTS		4,349			7,599
RESTRICTED CASH		14,544			15,521
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $5,646 and $6,287 in 2011 and 2010, respectively		50,405			48,395

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		179,149			167,108
OTHER ASSETS		35,510			44,264


TOTAL ASSETS	$	1,337,132		$	1,371,282

LIABILITIES AND EQUITY
NOTES PAYABLE	$	498,034		$	509,509
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES		35,710			32,388
DEFERRED GAIN		4,098			4,216
DEPOSITS AND DEFERRED INCOME		17,419			18,029

TOTAL LIABILITIES		555,261			564,142

COMMITMENTS AND CONTINGENT LIABILITIES

REDEEMABLE NONCONTROLLING INTERESTS		9,444			14,289

STOCKHOLDERS’ INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2011 and 2010		74,827			74,827
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2011 and 2010		94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 107,283,901 and 106,961,959 shares issued in 2011 and 2010, respectively		107,284			106,962

Additional paid-in capital		685,577			684,551
Treasury stock at cost, 3,570,082 shares in 2011 and 2010		(86,840	)		(86,840	)
Distributions in excess of cumulative net income		(136,075	)		(114,196	)

TOTAL STOCKHOLDERS’ INVESTMENT		739,548			760,079

Nonredeemable noncontrolling interests		32,879			32,772

TOTAL EQUITY		772,427			792,851


TOTAL LIABILITIES AND EQUITY	$	1,337,132		$	1,371,282

COUSINS PROPERTIES INCORPORATED

KEY PERFORMANCE INDICATORS


	2009			2010 1st			2010 2nd			2010 3rd			2010 4th			2010			2011 1st			2011 2nd			2011 YTD
Property Statistics
Number of Operating Properties		38			38			38			38			41			41			40			40			40
Rentable Square Feet (in thousands)		14,113			14,078			14,078			13,869			14,156			14,156			13,747			13,749			13,749
Acres of Commercial Land (Company share)		569			539			479			482			510			510			510			510			510
Acres of Residential Land (Company share)		4,962			4,962			4,959			4,959			4,829			4,829			4,831			4,228			4,228
Number of Residential Lots Remaining to be Sold (Company Share)		4,632			4,594			4,559			4,531			3,684			3,684			3,667			3,632			3,632

Leverage Ratios (1)
Debt/Total Market Capitalization		46	%		44	%		46	%		42	%		40	%		40	%		39	%		39	%		39	%
Debt + Preferred/Total Market Capitalization		56	%		53	%		57	%		53	%		50	%		50	%		49	%		48	%		48	%
Recourse Debt/Total Market Capitalization		13	%		12	%		12	%		8	%		10	%		10	%		9	%		9	%		9	%

Coverage Ratios (1)
Interest Coverage		1.92			2.61			2.26			2.40			2.89			2.53			2.76			2.74			2.75
Fixed Charges Coverage		1.40			1.89			1.66			1.63			1.97			1.78			1.76			1.71			1.73
Debt/Annualized EBITDA		9.03			6.95			7.28			7.03			6.13			6.51			6.88			7.11			6.99

Dividend Ratios (1)
FFO Payout Ratio		-46	%		64	%		115	%		1034	%		92	%		111	%		57	%		43	%		49	%
FFO Before Certain Charges Payout Ratio		105	%		61	%		87	%		89	%		61	%		72	%		40	%		42	%		41	%
FAD Payout Ratio		-40	%		80	%		213	%		-202	%		175	%		224	%		132	%		294	%		183	%
FAD Before Certain Charges Payout Ratio		160	%		75	%		133	%		186	%		88	%		107	%		65	%		244	%		103	%

Operations Ratios (1)
General and Administrative Expenses/Revenues		12.2	%		11.9	%		12.9	%		11.8	%		13.6	%		12.5	%		15.1	%		13.5	%		14.3	%
Annualized General and Administrative Expenses/Total Undepreciated Assets		1.5	%		1.9	%		1.6	%		1.5	%		1.8	%		1.7	%		1.8	%		1.5	%		1.7	%


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

COUSINS PROPERTIES INCORPORATED

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


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

NET OPERATING INCOME
OFFICE		69,280			17,676			17,920			17,764			19,432			72,792			18,608			18,780			37,388
RETAIL		31,982			8,754			8,714			7,255			7,054			31,777			8,488			7,443			15,931
INDUSTRIAL		1,568			533			615			1,092			1,385			3,625			1,050			911			1,961
OTHER		26			18			59			15			4			96			1			—			1


TOTAL NET OPERATING INCOME		102,856			26,981			27,308			26,126			27,875			108,290			28,147			27,134			55,281
SALES LESS COST OF SALES
MULTI-FAMILY RESIDENTIAL		5,327			2,293			1,880			1,612			2,113			7,898			2,174			53			2,227
RESIDENTIAL LOTS		1,012			650			499			478			819			2,446			226			398			624
TRACTS AND OUTPARCEL		3,366			5,422			1,104			(3	)		3,533			10,056			70			27			97
OTHER INVESTMENT PROPERTY		58			—			—			—			—			—			—			—			—

TOTAL SALES LESS COST OF SALES		9,763			8,365			3,483			2,087			6,465			20,400			2,470			478			2,948

FEE INCOME		11,840			3,544			3,728			3,966			3,205			14,443			3,385			3,435			6,820
THIRD PARTY MANAGEMENT AND LEASING REVENUES		21,966			4,794			4,485			4,724			4,974			18,977			4,088			4,605			8,693
OTHER INCOME		3,025			124			190			256			694			1,264			513			644			1,157

TOTAL FEE AND OTHER INCOME		36,831			8,462			8,403			8,946			8,873			34,684			7,986			8,684			16,670

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,878	)		(4,958	)		(4,214	)		(4,122	)		(4,099	)		(17,393	)		(4,093	)		(4,080	)		(8,173	)

REIMBURSED EXPENSES		(5,378	)		(1,859	)		(1,398	)		(1,392	)		(1,648	)		(6,297	)		(1,512	)		(1,371	)		(2,883	)

SEPARATION EXPENSES		(3,257	)		(68	)		(33	)		(202	)		(742	)		(1,045	)		(101	)		(77	)		(178	)

GENERAL AND ADMINISTRATIVE EXPENSES		(26,198	)		(8,017	)		(6,763	)		(6,172	)		(7,565	)		(28,517	)		(7,400	)		(6,133	)		(13,533	)

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

INTEREST EXPENSE		(45,328	)		(10,680	)		(11,233	)		(9,889	)		(9,630	)		(41,432	)		(8,736	)		(8,505	)		(17,241	)

IMPAIRMENT LOSSES		(115,752	)		—			(586	)		—			(5,714	)		(6,300	)		(3,508	)		(250	)		(3,758	)

OTHER EXPENSES		(16,674	)		(996	)		(3,363	)		(1,563	)		(121	)		(6,043	)		(1,400	)		(1,353	)		(2,753	)

INCOME TAX (PROVISION) BENEFIT		(4,341	)		1,146			(14	)		(25	)		(28	)		1,079			64			(27	)		37

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(3,428	)		(577	)		(468	)		(447	)		(419	)		(1,911	)		(568	)		(377	)		(945	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(6,454	)


FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
WEIGHTED AVERAGE SHARES — BASIC		65,495			100,069			101,001			101,893			102,761			101,440			103,515			103,659			103,588
WEIGHTED AVERAGE SHARES — DILUTED		65,495			100,069			101,001			101,893			102,761			101,440			103,530			103,684			103,606
FFO PER SHARE- BASIC AND DILUTED		(1.40	)		0.14			0.08			0.01			0.10			0.32			0.08			0.11			0.18

COUSINS PROPERTIES INCORPORATED

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


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

NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES :
TERMINUS 100		14,491			3,720			3,731			3,635			3,695			14,781			4,015			3,897			7,912
191 PEACHTREE TOWER		7,190			2,945			2,895			2,982			4,295			13,117			3,228			3,238			6,466
THE AMERICAN CANCER SOCIETY CENTER		13,062			2,675			2,736			2,796			2,611			10,818			2,771			2,995			5,766
ONE GEORGIA CENTER		4,305			1,029			1,025			1,027			1,020			4,101			1,067			1,009			2,076
MERIDIAN MARK PLAZA		3,822			917			924			910			935			3,686			895			946			1,841
LAKESHORE PARK PLAZA		2,186			561			521			527			594			2,203			546			505			1,051
555 NORTH POINT CENTER EAST		2,063			482			539			505			512			2,038			506			448			954
333 NORTH POINT CENTER EAST		1,685			406			422			352			395			1,575			419			456			875
200 NORTH POINT CENTER EAST		1,606			417			415			422			419			1,673			438			420			858
THE POINTS AT WATERVIEW		2,050			460			540			447			480			1,927			415			423			838
100 NORTH POINT CENTER EAST		1,391			319			459			373			373			1,524			307			373			680
600 UNIVERSITY PARK PLACE		1,553			418			349			322			437			1,526			182			300			482
INHIBITEX		896			224			222			225			225			896			225			224			449
GALLERIA 75		261			55			87			63			114			319			132			127			259
COSMOPOLITAN CENTER		554			115			126			110			164			515			106			95			201
OTHER		—			—			—			—			—			—			—			(4	)		(4	)

SUBTOTAL — OFFICE CONSOLIDATED		57,115			14,743			14,991			14,696			16,269			60,699			15,252			15,452			30,704

JOINT VENTURE PROPERTIES :
PALISADES WEST		4,968			1,215			1,240			1,223			1,334			5,012			1,511			1,512			3,023
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,616			894			904			963			918			3,679			933			992			1,925
TEN PEACHTREE PLACE		2,185			571			583			582			578			2,314			602			448			1,050
GATEWAY VILLAGE — PREFERRED RETURN		1,208			302			302			302			302			1,208			302			302			604
TERMINUS 200		58			—			(60	)		50			29			19			14			67			81
PRESBYTERIAN MEDICAL PLAZA		68			16			12			19			15			62			14			15			29
OTHER		(53	)		(22	)		6			(18	)		(18	)		(52	)		(19	)		(14	)		(33	)

SUBTOTAL — OFFICE JOINT VENTURE		12,051			2,976			2,987			3,121			3,158			12,242			3,357			3,322			6,679

DISCONTINUED OPERATIONS :
8995 WESTSIDE PARKWAY		114			(43	)		(58	)		(53	)		5			(149	)		(1	)		—			(1	)
OTHER		—			—			—			—			—			—			—			6			6

SUBTOTAL — OFFICE DISCONTINUED		114			(43	)		(58	)		(53	)		5			(149	)		(1	)		6			5

TOTAL — OFFICE NET OPERATING INCOME		69,280			17,676			17,920			17,764			19,432			72,792			18,608			18,780			37,388

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


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

RETAIL:
CONSOLIDATED PROPERTIES :
THE AVENUE FORSYTH		3,697			1,588			1,458			1,638		1,551		6,235		2,166			1,684			3,850
THE AVENUE WEBB GIN		5,583			1,484			1,214			1,307		1,290		5,295		1,463			1,322			2,785
THE AVENUE CARRIAGE CROSSING		4,800			1,082			1,503			1,396		1,257		5,238		1,254			1,023			2,277
TIFFANY SPRINGS MARKETCENTER		3,329			741			817			835		918		3,311		856			875			1,731
OTHER		—			—			—			—		—		—		—			(3	)		(3	)

SUBTOTAL — RETAIL CONSOLIDATED		17,409			4,895			4,992			5,176		5,016		20,079		5,739			4,901			10,640

JOINT VENTURE PROPERTIES :
THE AVENUE MURFREESBORO		3,995			1,071			1,117			1,082		1,135		4,405		1,233			1,153			2,386
CW INVESTMENTS		—			—			—			—		—		—		594			594			1,188
THE AVENUE EAST COBB		661			154			161			167		152		634		144			163			307
GREENBRIER MARKETCENTER		543			142			136			138		135		551		142			141			283
THE AVENUE WEST COBB		497			130			105			125		133		493		135			134			269
NORTH POINT MARKETCENTER		447			105			133			129		146		513		138			121			259
THE AVENUE VIERA		578			153			131			131		116		531		128			129			257
THE AVENUE PEACHTREE CITY		454			117			106			118		96		437		106			99			205
VIERA MARKETCENTER		205			48			50			51		52		201		49			53			102
LOS ALTOS MARKETCENTER		205			56			40			52		72		220		84			10			94
OTHER		—			—			—			—		—		—		—			(1	)		(1	)

SUBTOTAL — RETAIL JOINT VENTURE		7,585			1,976			1,979			1,993		2,037		7,985		2,753			2,596			5,349

DISCONTINUED OPERATIONS :
SAN JOSE MARKETCENTER		6,988			1,883			1,743			86		1		3,713		(4	)		(54	)		(58	)

SUBTOTAL — RETAIL DISCONTINUED		6,988			1,883			1,743			86		1		3,713		(4	)		(54	)		(58	)

TOTAL — RETAIL NET OPERATING INCOME		31,982			8,754			8,714			7,255		7,054		31,777		8,488			7,443			15,931

INDUSTRIAL :
KING MILL DISTRIBUTION PARK — BUILDING 3		1,047			339			418			470		558		1,785		537			529			1,066
LAKESIDE RANCH BUSINESS PARK — BUILDING 20		727			247			263			360		395		1,265		372			382			754

SUBTOTAL — INDUSTRIAL CONSOLIDATED		1,774			586			681			830		953		3,050		909			911			1,820

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

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

TOTAL — INDUSTRIAL NET OPERATING INCOME		1,568			533			615			1,092		1,385		3,625		1,050			911			1,961

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

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


TOTAL NET OPERATING INCOME		102,856			26,981			27,308			26,126		27,875		108,290		28,147			27,134			55,281

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


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

SALES LESS COST OF SALES
MULTI-FAMILY SALES LESS COST OF SALES — CONSOLIDATED		5,212		2,176		1,835		1,447			1,967			7,425		2,157		20		2,177
MULTI-FAMILY SALES LESS COST OF SALES — JOINT VENTURES		115		117		45		165			146			473		17		33		50

SUBTOTAL — MULTI-FAMILY SALES LESS COST OF SALES		5,327		2,293		1,880		1,612			2,113			7,898		2,174		53		2,227

LOT SALES LESS COST OF SALES — CONSOLIDATED		481		130		41		81			322			574		46		4		50
LOT SALES LESS COST OF SALES — JOINT VENTURES		531		520		458		397			497			1,872		180		394		574

SUBTOTAL — LOT SALES LESS COST OF SALES		1,012		650		499		478			819			2,446		226		398		624

TRACT SALES LESS COST OF SALES — CONSOLIDATED		1,185		697		1,002		(1	)		(1	)		1,697		—		—		—
TRACT SALES LESS COST OF SALES — JOINT VENTURES		264		46		102		2			3,457			3,607		20		27		47
OUTPARCEL SALES LESS COST OF SALES — CONSOLIDATED		1,917		4,593		—		—			77			4,670		50		—		50
OUTPARCEL SALES LESS COST OF SALES — JOINT VENTURE		—		86		—		(4	)		—			82		—		—		—

SUBTOTAL — TRACT AND OUTPARCEL SALES LESS COST OF SALES		3,366		5,422		1,104		(3	)		3,533			10,056		70		27		97
SUBTOTAL — INDUSTRIAL CONSOLIDATED
OTHER INVESTMENT PROPERTY LESS COST OF SALES — CONSOLIDATED		58		—		—		—			—			—		—		—		—


TOTAL SALES LESS COST OF SALES		9,763		8,365		3,483		2,087			6,465			20,400		2,470		478		2,948

FEE INCOME
DEVELOPMENT FEES		2,317		356		493		663			501			2,013		532		612		1,144
MANAGEMENT FEES		8,729		2,748		2,199		2,230			2,485			9,662		2,377		2,176		4,553
LEASING & OTHER FEES		794		440		1,036		1,073			219			2,768		476		647		1,123

TOTAL — FEE INCOME		11,840		3,544		3,728		3,966			3,205			14,443		3,385		3,435		6,820

THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,042		249		285		293			412			1,239		249		271		520
MANAGEMENT FEES		15,914		3,690		3,437		3,239			3,173			13,539		3,359		3,341		6,700
LEASING & OTHER FEES		5,010		855		763		1,192			1,389			4,199		480		993		1,473

TOTAL — THIRD PARTY MANAGEMENT AND LEASING REVENUES		21,966		4,794		4,485		4,724			4,974			18,977		4,088		4,605		8,693

OTHER INCOME
TERMINATION FEES		1,717		8		33		26			447			514		394		369		763
INTEREST AND OTHER INCOME — CONTINUING OPERATIONS		1,255		116		138		219			242			715		119		187		306
INTEREST AND OTHER INCOME — DISCONTINUED OPERATIONS		53		—		19		11			5			35		—		88		88

TOTAL INTEREST INCOME & OTHER		3,025		124		190		256			694			1,264		513		644		1,157

TOTAL FEE AND OTHER INCOME		36,831		8,462		8,403		8,946			8,873			34,684		7,986		8,684		16,670

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


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

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,878	)		(4,958	)		(4,214	)		(4,122	)		(4,099	)		(17,393	)		(4,093	)		(4,080	)		(8,173	)

REIMBURSED EXPENSES		(5,378	)		(1,859	)		(1,398	)		(1,392	)		(1,648	)		(6,297	)		(1,512	)		(1,371	)		(2,883	)

SEPARATION EXPENSES		(3,257	)		(68	)		(33	)		(202	)		(742	)		(1,045	)		(101	)		(77	)		(178	)

GENERAL AND ADMINISTRATIVE EXPENSES		(26,198	)		(8,017	)		(6,763	)		(6,172	)		(7,565	)		(28,517	)		(7,400	)		(6,133	)		(13,533	)

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

INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER		(8,982	)		(2,215	)		(2,240	)		(2,263	)		(2,264	)		(8,982	)		(2,215	)		(2,240	)		(4,455	)
TERMINUS 100		(11,208	)		(2,802	)		(2,802	)		(2,802	)		(2,729	)		(11,135	)		(1,842	)		(1,835	)		(3,677	)
CREDIT FACILITY, UNSECURED (LIBOR LIBOR + 1.75% to 2.25%)		(8,599	)		(1,037	)		(1,277	)		(1,528	)		(1,393	)		(5,235	)		(1,475	)		(1,480	)		(2,955	)
MERIDIAN MARK PLAZA		(1,886	)		(465	)		(462	)		(425	)		(411	)		(1,763	)		(409	)		(408	)		(817	)
333 & 555 NORTH POINT CENTER EAST		(1,966	)		(482	)		(479	)		(475	)		(470	)		(1,906	)		(471	)		(317	)		(788	)
LAKESHORE PARK PLAZA		(1,132	)		(280	)		(278	)		(278	)		(276	)		(1,112	)		(275	)		(273	)		(548	)
THE POINTS AT WATERVIEW		(1,007	)		(248	)		(247	)		(245	)		(243	)		(983	)		(242	)		(240	)		(482	)
600 UNIVERSITY PARK PLACE		(950	)		(235	)		(234	)		(232	)		(232	)		(933	)		(230	)		(229	)		(459	)
100 NORTH POINT CENTER EAST		(681	)		(170	)		(170	)		(170	)		(169	)		(679	)		(169	)		(168	)		(337	)
200 NORTH POINT CENTER EAST		(681	)		(170	)		(170	)		(170	)		(169	)		(679	)		(169	)		(168	)		(337	)
OTHER		(1,945	)		(61	)		(61	)		(58	)		(55	)		(235	)		(47	)		—			(47	)
UNSECURED TERM LOAN (LIBOR + 0.70% to 1.20%)		(6,092	)		(1,616	)		(1,866	)		(56	)		—			(3,538	)		—			—			—
CAPITALIZED		3,736			—			—			—			—			—			—			—			—

SUBTOTAL — CONSOLIDATED		(41,393	)		(9,781	)		(10,286	)		(8,702	)		(8,411	)		(37,180	)		(7,544	)		(7,358	)		(14,902	)

JOINT VENTURE DEBT :
THE AVENUE MURFREESBORO		(861	)		(197	)		(251	)		(489	)		(472	)		(1,409	)		(458	)		(417	)		(875	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,501	)		(371	)		(369	)		(367	)		(365	)		(1,472	)		(364	)		(361	)		(725	)
TEN PEACHTREE PLACE		(766	)		(189	)		(189	)		(188	)		(186	)		(752	)		(184	)		(183	)		(367	)
TERMINUS 200		—			—			(3	)		(34	)		(118	)		(155	)		(89	)		(93	)		(182	)
THE AVENUE EAST COBB		(339	)		(84	)		(83	)		(57	)		(22	)		(246	)		(49	)		(49	)		(98	)
TEMCO ASSOCIATES		(122	)		(26	)		(27	)		(27	)		(29	)		(109	)		(26	)		(26	)		(52	)
CL REALTY		(215	)		(32	)		(25	)		(25	)		(27	)		(109	)		(22	)		(18	)		(40	)
OTHER		(130	)		—			—			—			—			—			—			—			—

SUBTOTAL — JOINT VENTURE		(3,934	)		(899	)		(947	)		(1,187	)		(1,219	)		(4,252	)		(1,192	)		(1,147	)		(2,339	)

TOTAL INTEREST EXPENSE		(45,328	)		(10,680	)		(11,233	)		(9,889	)		(9,630	)		(41,432	)		(8,736	)		(8,505	)		(17,241	)

IMPAIRMENT LOSSES
IMPAIRMENT LOSS — CONSOLIDATED		(40,512	)		—			(586	)		—			(1,968	)		(2,554	)		(3,508	)		—			(3,508	)
IMPAIRMENT LOSS — OTHER		(24,182	)		—			—			—			(3,746	)		(3,746	)		—			—			—
IMPAIRMENT LOSS — JOINT VENTURE INVESTMENTS		(51,058	)		—			—			—			—			—			—			(250	)		(250	)

TOTAL — IMPAIRMENT LOSSES		(115,752	)		—			(586	)		—			(5,714	)		(6,300	)		(3,508	)		(250	)		(3,758	)

OTHER EXPENSES
PROPERTY TAXES & OTHER HOLDING COSTS		(4,830	)		(825	)		(834	)		(805	)		(694	)		(3,158	)		(803	)		(555	)		(1,358	)
PREDEVELOPMENT & OTHER		(8,313	)		(37	)		(2,168	)		(104	)		1,051			(1,258	)		(59	)		(117	)		(176	)
MINORITY INTEREST EXPENSE		(2,252	)		(526	)		(584	)		(696	)		(734	)		(2,540	)		(581	)		(681	)		(1,262	)
OTHER — JOINT VENTURE		(1,279	)		392			223			42			256			913			43			—			43

TOTAL — OTHER EXPENSES		(16,674	)		(996	)		(3,363	)		(1,563	)		(121	)		(6,043	)		(1,400	)		(1,353	)		(2,753	)

INCOME TAX (PROVISION) BENEFIT		(4,341	)		1,146			(14	)		(25	)		(28	)		1,079			64			(27	)		37

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(3,366	)		(567	)		(462	)		(441	)		(414	)		(1,884	)		(563	)		(372	)		(935	)
DISCONTINUED OPERATIONS		(16	)		(4	)		(1	)		0			—			(5	)		—			—			—
SHARE OF UNCONSOLIDATED JOINT VENTURES		(46	)		(6	)		(5	)		(6	)		(5	)		(22	)		(5	)		(5	)		(10	)

TOTAL — NON-REAL ESTATE DEPRECIATION AND AMORTIZATION	(3,428)				(577	)		(468	)		(447	)		(419	)		(1,911	)		(568	)		(377	)		(945	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(6,454	)

FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
WEIGHTED AVERAGE SHARES — BASIC		65,495			100,069			101,001			101,893			102,761			101,440			103,515			103,659			103,588
WEIGHTED AVERAGE SHARES — DILUTED		65,495			100,069			101,001			101,893			102,761			101,440			103,530			103,684			103,606
FFO PER SHARE — BASIC AND DILUTED		(1.40	)		0.14			0.08			0.01			0.10			0.32			0.08			0.11			0.18

COUSINS PROPERTIES INCORPORATED

PORTFOLIO LISTING
OPERATING PROPERTIES
As of and For the Three Months ended June 30, 2011


							Company Share
																Property
				Company’s			% of Total						Weighted			Level
	Metropolitan	Rentable		Ownership			Net Operating			Percent			Average			Debt
Property Description	Area	Square Feet		Interest			Income			Leased			Occupancy (1)			($000)
I. OFFICE PROPERTIES
Terminus 100	Atlanta		655,000		100.00	%		14	%		97	%		97	%		139,190
191 Peachtree Tower	Atlanta		1,221,000		100.00	%		12	%		80	%		74	%		—
The American Cancer Society Center (4)	Atlanta		996,000		100.00	%		11	%		91	%		93	%		136,000
One Georgia Center (3)	Atlanta		376,000		100.00	%		4	%		97	%		97	%		—
Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		4	%		100	%		100	%		24,087
Meridian Mark Plaza	Atlanta		160,000		100.00	%		3	%		97	%		95	%		26,725
333 North Point Center East	Atlanta		130,000		100.00	%		2	%		98	%		98	%		—
Ten Peachtree Place (2)	Atlanta		260,000		50.00	%		2	%		100	%		99	%		13,245
555 North Point Center East	Atlanta		152,000		100.00	%		2	%		98	%		98	%		—
100 North Point Center East	Atlanta		128,000		100.00	%		1	%		94	%		94	%		12,329
Inhibitex	Atlanta		51,000		100.00	%		1	%		100	%		100	%		—
200 North Point Center East	Atlanta		130,000		100.00	%		1	%		100	%		100	%		12,328
Galleria 75	Atlanta		111,000		100.00	%		0	%		67	%		66	%		—
Cosmopolitan Center	Atlanta		84,000		100.00	%		0	%		54	%		93	%		—
Terminus 200 (2)	Atlanta		566,000		20.00	%		0	%		85	%		31	%		10,172

GEORGIA			5,378,000					57	%		90	%		88	%		374,076

Palisades West	Austin		373,000		50.00	%		6	%		97	%		97	%		—
The Points at Waterview	Dallas		203,000		100.00	%		2	%		84	%		84	%		16,366

TEXAS			576,000					8	%		90	%		90	%		16,366

Lakeshore Park Plaza (3)(5)	Birmingham		197,000		100.00	%		2	%		91	%		90	%		17,356
600 University Park Place (3)	Birmingham		123,000		100.00	%		1	%		89	%		80	%		12,163

ALABAMA			320,000					3	%		90	%		86	%		29,519

Gateway Village (2)	Charlotte		1,065,000		50.00	%		1	%		100	%		100	%		45,088
Presbyterian Medical Plaza	Charlotte		69,000		11.50	%		0	%		78	%		78	%		—

NORTH CAROLINA			1,134,000					1	%		100	%		100	%		45,088

TOTAL OFFICE PROPERTIES			7,408,000					69	%		91	%		89	%		465,049


II. RETAIL PROPERTIES
The Avenue Forsyth (3)	Atlanta		523,000		100.00	%		6	%		88	%		68	%		—
The Avenue Webb Gin	Atlanta		322,000		100.00	%		5	%		90	%		87	%		—
The Avenue West Cobb	Atlanta		255,000		11.50	%		1	%		97	%		96	%		—
The Avenue East Cobb	Atlanta		230,000		11.50	%		1	%		95	%		92	%		4,178
North Point MarketCenter	Atlanta		401,000		10.32	%		0	%		99	%		97	%		—
The Avenue Peachtree City	Atlanta		183,000		11.50	%		0	%		91	%		88	%		—

GEORGIA			1,914,000					13	%		90	%		77	%		4,178

The Avenue Carriage Crossing (3)	Memphis		511,000		100.00	%		4	%		89	%		87	%		—
The Avenue Murfreesboro	Nashville		751,000		50.00	%		4	%		86	%		85	%		50,362
Mt. Juliet Village (2)	Nashville		91,000		50.50	%		1	%		77	%		77	%		3,106
The Shops of Lee Village (2)	Nashville		74,000		50.50	%		1	%		79	%		77	%		2,803
Creek Plantation Village (2)	Chattanooga		78,000		50.50	%		0	%		91	%		91	%		3,158

TENNESSEE			1,505,000					10	%		87	%		86	%		59,429
Tiffany Springs MarketCenter (3)	Kansas City		238,000		100.00	%		3	%		82	%		81	%		—


MISSOURI			238,000					3	%		82	%		81	%		—

Highland City Town Center (2)	Lakeland		96,000		50.50	%		1	%		87	%		87	%		5,438
The Avenue Viera	Viera		332,000		11.50	%		0	%		96	%		94	%		—
Viera MarketCenter	Viera		178,000		11.50	%		0	%		100	%		94	%		—

FLORIDA			606,000					1	%		93	%		91	%		5,438

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

VIRGINIA			376,000					1	%		100	%		100	%		—

Los Altos MarketCenter	Long Beach		157,000		10.32	%		0	%		100	%		83	%		—

CALIFORNIA			157,000					0	%		100	%		83	%		—


TOTAL RETAIL PROPERTIES			4,796,000					28	%		88	%		82	%		69,045

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
OPERATING PROPERTIES
As of and For the Three Months ended June 30, 2011


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

GEORGIA			796,000					2	%		100	%		100	%		—

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

TEXAS			749,000					1	%		91	%		77	%		—


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



TOTAL PORTFOLIO			13,749,000					100	%		91	%		87	%		534,094


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

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

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

(4)		Approximately 84,000 of the square footage leased and occupied is on a month to month lease and will be terminated once tenant completes buildout of new space.

(5)		The Company repaid this mortgage note in full on July 1, 2011.

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE (1)
($ in thousands)


	Three Months Ended						Q2 ’11 vs			Q2 ’11 vs
	June 30,		June 30,		March 31,		Q2 ’10			Q1 ’11
	2011		2010		2011		% Change			% Change
Rental Property Revenues (2)
Office		32,091		31,387		31,310		2.2	%		2.5	%
Retail		10,924		10,627		10,897		2.8	%		0.2	%

Total Rental Property Revenues		43,014		42,014		42,207		2.4	%		1.9	%

Rental Property Operating Expenses (2)
Office		13,364		13,356		12,695		0.1	%		5.3	%
Retail		4,016		3,659		3,400		9.8	%		18.1	%

Total Rental Property Operating Expenses		17,380		17,015		16,095		2.1	%		8.0	%

Same Property Net Operating Income
Office		18,726		18,031		18,615		3.9	%		0.6	%
Retail		6,908		6,968		7,498		-0.9	%		-7.9	%

Total Same Property Net Operating Income		25,634		25,000		26,112		2.5	%		-1.8	%


	Three Months Ended						Q2 ’11 vs			Q2 ’11 vs
	June 30,		June 30,		March 31,		Q2 ’10			Q1 ’11
	2011		2010		2011		% Change			% Change
Cash Basis Same Property Net Operating Income (3)
Office		16,675		16,988		17,154		-1.8	%		-2.8	%
Retail		6,679		6,746		7,181		-1.0	%		-7.0	%

Total Cash Basis Same Property Net Operating Income		23,354		23,734		24,334		-1.6	%		-4.0	%


	Six Months Ended
	June 30,		June 30,
	2011		2010		% Change
Rental Property Revenues (2)
Office		63,401		61,833		2.5	%
Retail		21,821		21,145		3.2	%

Total Rental Property Revenues		85,222		82,978		2.7	%

Rental Property Operating Expenses
Office		26,060		26,069		0.0	%
Retail		7,416		7,302		1.6	%

Total Rental Property Operating Expenses		33,476		33,371		0.3	%

Same Property Net Operating Income
Office		37,341		35,764		4.4	%
Retail		14,405		13,842		4.1	%

Total Same Property Net Operating Income		51,746		49,607		4.3	%


	Six Months Ended
	June 30,		June 30,
	2011		2010		% Change
Cash Basis Same Property Net Operating Income (3)
Office		33,829		33,864		-0.1	%
Retail		13,860		13,278		4.4	%

Total Cash Basis Same Property Net Operating Income		47,689		47,143		1.2	%


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

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

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

COUSINS PROPERTIES INCORPORATED

SQUARE FEET EXPIRING
As of June 30, 2011

OFFICE

As of June 30, 2011, the Company’s office portfolio included 21 commercial office buildings. The weighted average remaining lease term of these office buildings was approximately seven years as of June 30, 2011. Most of the major tenant leases in these buildings provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2020 &
	2011			2012			2013			2014			2015			2016			2017			2018			2019			Thereafter			Total
*Company Share*
Square Feet Expiring (3)		276,905			178,476			549,669			288,851			443,798			706,665			482,551			273,120			540,155			1,580,307			5,320,497
% of Leased Space		6	%		3	%		10	%		6	%		8	%		13	%		9	%		5	%		10	%		30	%		100	%
Annual Contractual
Rent ($000’s) (1)	$	4,304		$	3,396		$	12,564		$	5,922		$	9,519		$	13,681		$	12,571		$	7,920		$	12,476		$	38,290		$	120,643
Annual Contractual
Rent/Sq. Ft. (1)	$	15.54		$	19.03		$	22.86		$	20.50		$	21.45		$	19.36		$	26.05		$	29.00		$	23.10		$	24.23		$	22.68

RETAIL

As of June 30, 2011, the Company’s retail portfolio included 17 retail properties. The weighted average remaining lease term of these retail properties was approximately eight years as of June 30, 2011. Most of the major tenant leases in these retail properties provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2020 &
	2011			2012			2013			2014			2015			2016			2017			2018			2019			Thereafter			Total
*Company Share*
Square Feet Expiring (2)		53,088			85,196			71,221			99,124			103,944			280,583			131,490			329,465			319,686			615,161			2,088,958
% of Leased Space		3	%		4	%		3	%		5	%		5	%		13	%		6	%		16	%		15	%		30	%		100	%
Annual Contractual
Rent ($000’s) (1)	$	1,075		$	1,426		$	1,726		$	1,993		$	2,310		$	6,275		$	3,249		$	7,402		$	6,796		$	7,496		$	39,748
Annual Contractual
Rent/Sq. Ft. (1)	$	20.24		$	16.74		$	24.24		$	20.10		$	22.22		$	22.37		$	24.71		$	22.47		$	21.26		$	12.18		$	19.03


(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.

(3)		Subsequent to quarter end, AGL Services Company renewed for 238,000 square feet extending their lease to 2026 and Bombardier renewed for 86,000 square feet extending their lease to 2023.

COUSINS PROPERTIES INCORPORATED

TOP 20 TENANTS
As of June 30, 2011


		Company Share of
		Annualized Base			Average Remaining
Tenant (1)	Product Type	Rent (2)			Lease Term (Years)
1. Deloitte & Touche	Office		4.4	%		12.9
2. Georgia Department of Transportation	Office		3.8	%		8.1
3. American Cancer Society	Office		3.3	%		11.0
4. US South Communications (3)	Office		3.2	%		7.3
5. AGL Services Company (4)	Office		2.4	%		1.8
6. Internap Network Services	Office		2.3	%		8.8
7. Morgan Stanley	Office		2.0	%		6.0
8. MedAssets Net Revenue Systems, LLC	Office		1.9	%		3.8
9. Dimensional Fund Advisors	Office		1.9	%		12.3
10. Briggs & Stratton Corporation	Industrial		1.6	%		3.3
11. Bombardier Aerospace Corporation (5)	Office		1.5	%		1.7
12. CB Richard Ellis, Inc.	Office		1.5	%		8.0
13. Bank of America (6)	Office		1.4	%		5.4
14. Emory University	Office		1.4	%		5.7
15. Northside Hospital	Office		1.3	%		3.5
16. Wells Fargo Bank, N.A.	Office		1.2	%		4.8
17. Cumulus Media, Inc.	Office		1.2	%		6.4
18. Premiere Global Services, Inc.	Office		1.2	%		7.2
19. HD Supply Facilities Maintenance, LTD.	Industrial		1.1	%		5.9
20. Barnes & Noble	Retail		1.1	%		4.8


Total of Top 20 Tenants			39.8	%		7.2


(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)		Approximately 84,000 of the square footage leased and occupied is on a month to month lease and will be terminated once tenant completes buildout of new space.

(4)		Subsequent to quarter end, AGL Services Company renewed for 238,000 square feet extending the lease to 2026.

(5)		Subsequent to quarter end, Bombardier Aerospace Corporation renewed for 86,000 square feet extending the lease to 2023.

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

NOTE:

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

COUSINS PROPERTIES INCORPORATED

DEVELOPMENT PIPELINE (1)
As of June 30, 2011
($ in millions)


																	Estimated
			Cousins’			Estimated Project		Project Cost		Number of Apartment		%			Estimated		Stabilization
Project	Location		Ownership %			Cost (2)		Incurred to Date		Units/Square Feet		Leased			Opening (3)		Date (4)
Emory Point (Phase I)	Atlanta, GA			75	%	$	102.3	$	16.8

Apartments		—		—			—		—		443		N/A			3Q 12		2Q 14
Retail		—		—			—		—		80,087		33	%		4Q 12		2Q 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 dates for opening and stabilization are also estimates and are subject to change as the project proceeds through the development process.

(2)		Amount represents 100% of the estimated phase I project cost. The project is being funded with a combination of equity from the partners and a $61.1 million construction loan. The project will be funded by equity contributions until the partners have contributed their required equity amounts. All subsequent funding is expected to come from the construction loan. As of June 30, 2011, $1,000 was outstanding under the construction loan.

(3)		Estimated opening represents the quarter within which the Company estimates the first retail space to be open for operations and the quarter the Company estimates apartment units to be occupied.

(4)		Estimated stabilization represents the quarter within which the Company estimates it will achieve 95% economic occupancy on the retail space and 93% on the apartments.

COUSINS PROPERTIES INCORPORATED

INVENTORY OF COMMERCIAL LAND HELD
As of June 30, 2011


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

Terminus	Atlanta		100.00	%		4		12,652	(2)

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

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

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

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

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

North Point	Atlanta		100.00	%		42		6,565	(2)

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

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

Georgia						328		93,376


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

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

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

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

Texas						164		36,748

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

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

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

Tennessee						14		8,012


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

Florida						56		5,469



TOTAL COMMERCIAL LAND HELD						562	$	143,605



COMPANY’S SHARE OF TOTAL						510	$	116,700


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

(2)		The cost basis of these consolidated properties aggregates to $110,907,000. Including the basis of the Blalock acreage of $9,650,000, which is included on the Inventory of Lots and Acres in Residential Projects schedule, these properties total $120,557,000, which is reflected on the Condensed Consolidated Balance Sheet.

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

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

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

COUSINS PROPERTIES INCORPORATED

INVENTORY OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS
As of June 30, 2011


		Company’s			Lots						Tracts (2)				Cost
		Ownership			Estimated to		Total		Remaining		Sold since				Basis
Description	Metropolitan Area	Interest			be Developed (1)		Sold		to be Sold		Inception		Remaining		($000’s) (3)
Blalock Lakes (6)	Atlanta		100.00	%		154		20		134		—		1,205	$	49,665	(4)
The Georgian	Atlanta		37.50	%		1,385		289		1,096		—		—		23,637
Seven Hills	Atlanta		50.00	%		1,081		640		441		1,070		113		16,392
Callaway Gardens (5) (6)	Pine Mountain		100.00	%		559		30		529		—		—		15,652	(4)
Paulding County	Atlanta		50.00	%		—		—		—		783		5,712		14,810
West Park	Atlanta		50.00	%		84		21		63		—		—		5,332
The Lakes at Cedar Grove	Atlanta		100.00	%		906		727		179		—		—		4,654	(4)
Tillman Hall	Atlanta		100.00	%		29		7		22		—		—		2,534	(4)
Harris Place	Atlanta		50.00	%		27		18		9		—		—		652
River’s Call	Atlanta		100.00	%		107		95		12		—		—		481	(4)
Longleaf at Callaway (6)	Pine Mountain		100.00	%		138		125		13		—		—		389	(4)
Bentwater	Atlanta		50.00	%		1,676		1,671		5		—		—		16

Georgia						6,146		3,643		2,503		1,853		7,030		134,214

Southern Trails	Houston		40.00	%		1,027		468		559		114		—		16,974
Long Meadow Farms	Houston		18.75	%		2,083		758		1,325		133		113		13,274
Waterford Park	Houston		50.00	%		210		—		210		—		90		8,707
Padre Island	Corpus Christi		50.00	%		—		—		—		—		15		7,545
Summer Lakes	Houston		50.00	%		1,130		373		757		56		—		6,854
Village Park	Dallas/Fort Worth		50.00	%		571		356		215		3		2		7,428
Bar C Ranch	Dallas/Fort Worth		50.00	%		1,199		265		934		—		—		6,514
Summer Creek Ranch	Dallas/Fort Worth		50.00	%		1,274		796		478		624		71		5,074
Stonewall Estates	San Antonio		25.00	%		388		280		108		—		—		4,754
Village Park North	Dallas/Fort Worth		50.00	%		189		72		117		23		—		2,344
Stillwater Canyon	Dallas/Fort Worth		50.00	%		335		225		110		—		—		2,325

Texas						8,406		3,593		4,813		953		291		81,793

Bridle Path Estates	Tampa/St. Petersburg		50.00	%		87		—		87		—		—		3,022
Creekside Oaks	Tampa/St. Petersburg		50.00	%		301		171		130		—		—		2,855
Manatee River Plantation	Tampa/St. Petersburg		50.00	%		457		348		109		—		—		2,104

Florida						845		519		326		—		—		7,981

TOTAL INVENTORY OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS						15,397		7,755		7,642		2,806		7,321	$	223,988

COMPANY SHARE OF TOTAL						7,621		3,990		3,632		1,350		4,228	$	131,705


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

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

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

(4)		The cost basis of these consolidated properties aggregates to $73,375,000. Excluding the basis of the Blalock acreage of $9,650,000, these properties total $63,725,000, which is reflected on the Condensed Consolidated Balance Sheet.

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

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

COUSINS PROPERTIES INCORPORATED
DEBT OUTSTANDING
As of June 30, 2011
($ in thousands)


				Rate																											Company’s
	Ownership			End of			Maturity			Company’s Share of Debt Maturities and Principal Payments																					Share
Description (Interest Rate Base, if not fixed)	Percentage			Quarter			Date			2011			2012			2013			2014			2015			Thereafter			Total			Recourse (1)
CONSOLIDATED DEBT
Floating Rate Debt
Credit Facility, Unsecured (LIBOR + 1.75%-2.25%; $350mm facility) (2)		100.00	%		2.19	%		8/29/2012			—			125,400			—			—			—			—			125,400			125,400

Total Floating Rate Debt											—			125,400			—			—			—			—			125,400			125,400


Fixed Rate Debt
600 University Park Place		100.00	%		7.38	%		8/10/2011			12,163			—			—			—			—			—			12,163			—
100/200 North Point Center East		100.00	%		5.39	%		6/1/2012			179			24,478			—			—			—			—			24,657			—
Lakeshore Park Plaza		100.00	%		5.89	%		8/1/2012	(3)		193			17,163			—			—			—			—			17,356			—
Callaway Gardens		100.00	%		4.13	%		11/18/2013			—			—			177			—			—			—			177			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016			231			484			512			541			573			14,025			16,366			—
The American Cancer Society Center (4)		100.00	%		6.45	%		9/1/2017			350			1,408			1,528			1,631			1,741			129,342			136,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020			171			359			381			405			430			24,979			26,725			—
Terminus 100		100.00	%		5.25	%		1/1/2023			996			2,071			2,182			2,300			2,424			129,217			139,190			—

Total Fixed Rate Date											14,283			45,963			4,780			4,877			5,168			297,563			372,634			—


TOTAL CONSOLIDATED DEBT											14,283			171,363			4,780			4,877			5,168			297,563			498,034			125,400


UNCONSOLIDATED SECURED DEBT

Floating Rate Debt
Summer Lakes (Prime + 1.5%)		50.00	%		4.75	%		8/22/2011			289			—			—			—			—			—			289			—
Waterford Park (Prime + 1.5%)		50.00	%		4.75	%		11/8/2011			574			—			—			—			—			—			574			—
Bentwater Links (LIBOR + 6.5%)		50.00	%		6.69	%		5/23/2012			—			1,430			—			—			—			—			1,430			—
CF Murfreesboro Associates (LIBOR + 3.0%; $113.2mm facility)		50.00	%		3.19	%		7/20/2013			—			—			50,362			—			—			—			50,362			26,220
Terminus 200 (LIBOR + 2.5%; $92mm facility)		20.00	%		2.69	%		12/31/2013			—			—			10,172			—			—			—			10,172			—
Emory Point (LIBOR + 1.85%, $61.1mm facility)		75.00	%		2.04	%		6/28/2014	(6)		—			—			—			1			—			—			1			—
Highland City Town Center (LIBOR + 2.65%)		50.50	%(5)		2.84	%		1/1/2016	(6)		49			103			109			116			123			4,938			5,438			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(5)		2.84	%		1/1/2016	(6)		29			60			64			67			71			2,867			3,158			—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)		50.50	%(5)		3.04	%		1/1/2016	(6)		—			—			50			56			59			2,941			3,106			1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)		50.50	%(5)		3.04	%		1/1/2016	(6)		—			—			45			50			53			2,655			2,803			1,388

Total Floating Rate Debt											941			1,593			60,802			290			306			13,401			77,333			29,146


Fixed Rate Debt
Emory University Hospital Midtown Medical Office Tower		50.00	%		5.90	%		6/1/2013			271			568			23,248			—			—			—			24,087			—
Ten Peachtree Place		50.00	%		5.39	%		4/1/2015			149			311			329			347			12,109			—			13,245			—
Gateway Village		50.00	%		6.41	%		12/1/2016			3,539			7,427			7,917			8,440			8,997			8,768			45,088			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017			34			71			74			78			81			3,840			4,178			—

Total Fixed rate debt											3,993			8,377			31,568			8,865			21,187			12,608			86,598			-


TOTAL UNCONSOLIDATED DEBT										$	4,934		$	9,970		$	92,370		$	9,155		$	21,493		$	26,009		$	163,931		$	29,146

TOTAL DEBT										$	19,217		$	181,333		$	97,150		$	14,032		$	26,661		$	323,572		$	661,965		$	154,546


TOTAL MATURITIES (7)										$	13,026		$	168,471		$	83,959		$	1		$	12,109		$	298,604		$	576,170

% OF MATURITIES											2	%		29	%		15	%		0	%		2	%		52	%		100	%

COUSINS PROPERTIES INCORPORATED
DEBT OUTSTANDING
As of June 30, 2011
($ in thousands)


Floating and Fixed Rate Debt Analysis
						Stated Weighted			Weighted Average
			% of Total Debt			Average Rate			Maturity (Years)
Floating Rate Debt	$	202,733		31	%		2.56	%		1.7
Fixed Rate Debt		459,232		69	%		5.90	%		6.9

Total Debt	$	661,965		100	%		4.87	%		5.3


Unsecured and Secured Debt Analysis
						Stated Weighted			Weighted Average
			% of Total Debt			Average Rate			Maturity (Years)
Unsecured Debt	$	125,400		19	%		2.19	%		1.2
Secured Debt		536,565		81	%		5.50	%		6.3

Total Debt	$	661,965		100	%		4.87	%		5.3


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

(2)		Total borrowing capacity of the Credit Facility at June 30, 2011 was $345.4 million based on certain covenant calculations. The spread over LIBOR at June 30, 2011 was 2% based on covenant calculations.

(3)		The Company repaid this mortgage note in full on July 1, 2011.

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

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

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

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


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

2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:
TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS		2,745			334			954			2,378			1,697			5,363			1,896			6,357			8,253
SECOND GENERATION BUILDING IMPROVEMENTS		1,339			81			270			192			81			624			25			24			49

		4,084			415			1,224			2,570			1,778			5,987			1,921			6,381			8,302

RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,415			594			500			767			752			2,613			51			44			95

TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX		6,499			1,009			1,724			3,337			2,530			8,600			1,972			6,425			8,397

NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		57,163			14,743			14,991			14,696			16,269			60,699			15,252			15,452			30,704
RETAIL CONSOLIDATED PROPERTIES		17,411			4,895			4,992			5,176			5,016			20,079			5,739			4,901			10,640
INDUSTRIAL CONSOLIDATED PROPERTIES		1,774			586			681			830			953			3,050			909			911			1,820
OTHER RENTAL OPERATIONS — CONSOLIDATED		30			18			59			15			4			96			1			—			1

NET OPERATING INCOME — CONSOLIDATED		76,378			20,242			20,723			20,717			22,242			83,924			21,900			21,264			43,164

RENTAL PROPERTY REVENUES		139,504			34,773			35,969			35,946			36,013			142,701			36,148			36,736			72,884
RENTAL PROPERTY OPERATING EXPENSES		(63,176	)		(14,531	)		(15,246	)		(15,229	)		(13,771	)		(58,777	)		(14,248	)		(15,472	)		(29,720	)

NET OPERATING INCOME — CONSOLIDATED		76,328			20,242			20,723			20,717			22,242			83,924			21,900			21,264			43,164

INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		10,283			2,440			2,291			432			463			5,626			145			(48	)		97
RENTAL PROPERTY OPERATING EXPENSES		(3,391	)		(653	)		(672	)		(136	)		(25	)		(1,486	)		(9	)		—			(9	)

NET OPERATING INCOME		6,892			1,787			1,619			296			438			4,139			136			(48	)		88
INTEREST AND OTHER INCOME		53			—			19			11			5			35			—			88			88
INTEREST EXPENSE		(1,552	)		—			—			—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(16	)		(4	)		(1	)		—			—			(5	)		—			—			—


FFO		5,378			1,783			1,637			307			443			4,169			136			40			176

DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(2,926	)		(719	)		(333	)		(180	)		(190	)		(1,422	)		(64	)		—			(64	)


INCOME FROM DISCONTINUED OPERATIONS		2,452			1,065			1,304			127			253			2,747			72			40			112

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


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

MULTI—FAMILY SALES AND COST OF SALES:
CONSOLIDATED:
MULTI-FAMILY SALES — CONSOLIDATED:
MULTI-FAMILY SALES		30,841			10,146			7,943			6,637			9,716			34,442			4,657			7		4,664
MULTI-FAMILY COST OF SALES		(25,629	)		(7,970	)		(6,108	)		(5,190	)		(7,749	)		(27,017	)		(2,500	)		13		(2,487	)

MULTI-FAMILY SALES LESS COST OF SALES — CONSOLIDATED		5,212			2,176			1,835			1,447			1,967			7,425			2,157			20		2,177

JOINT VENTURES:
MULTI-FAMILY SALES — JOINT VENTURES:
MULTI-FAMILY SALES		175			389			—			—			—			389			—			—		—
MULTI-FAMILY COST OF SALES		(116	)		(266	)		—			(3	)		3			(266	)		(5	)		—		(5	)
OTHER, NET		56			(6	)		45			168			143			350			22			33		55

MULTI-FAMILY SALES LESS COST OF SALES — SHARE OF JOINT VENTURE		115			117			45			165			146			473			17			33		50

TOTAL MULTI-FAMILY FFO		5,327			2,293			1,880			1,612			2,113			7,898			2,174			53		2,227

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT
PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES — CONSOLIDATED:
RESIDENTIAL LOT SALES		1,746			390			316			630			1,178			2,514			165			80		245
OUTPARCEL SALES		5,675			13,429			—			—			—			13,429			—			—		—

TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		7,421			13,819			316			630			1,178			15,943			165			80		245

RESIDENTIAL LOT AND OUTPARCEL COST OF SALES — CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		1,265			260			275			549			856			1,940			119			76		195
OUTPARCEL COST OF SALES		3,758			8,836			—			—			(77	)		8,759			(50	)		—		(50	)

TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED		5,023			9,096			275			549			779			10,699			69			76		145

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

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY
SALES LESS COST OF SALES — CONSOLIDATED		3,641			5,420			1,043			80			398			6,941			96			4		100

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

TOTAL CONSOLIDATED SALES LESS COST OF SALES		3,641			5,420			1,043			80			398			6,941			96			4		100

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


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

JOINT VENTURES:

RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES — JOINT VENTURES:
RESIDENTIAL LOT SALES		4,158			1,675			1,328			1,590			3,175			7,768			1,186			2,229			3,415
OUTPARCEL SALES		—			516			—			—			—			516			—			—			—
TRACT SALES		658			61			167			—			10,405			10,633			572			29			601

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES		4,816			2,252			1,495			1,590			13,580			18,917			1,758			2,258			4,016

RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES — JOINT VENTURES:
RESIDENTIAL LOT COST OF SALES		3,627			1,155			870			1,193			2,678			5,896			1,006			1,835			2,841
OUTPARCEL COST OF SALES		—			430			—			4			—			434			—			—			—
TRACT COST OF SALES		394			15			65			(2	)		6,948			7,026			552			2			554

TOTAL RESIDENTIAL LOT, OUTPARCEL AND TRACT COST OF SALES		4,021			1,600			935			1,195			9,626			13,356			1,558			1,837			3,395
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS
COST OF SALES -JOINT VENTURES		795			652			560			395			3,954			5,561			200			421			621

SUMMARY — JOINT VENTURES:
RESIDENTIAL LOT SALES LESS COST OF SALES		531			520			458			397			497			1,872			180			394			574
OUTPARCEL SALES LESS COST OF SALES		—			86			—			(4	)		—			82			—			—			—
TRACT SALES LESS COST OF SALES		264			46			102			2			3,457			3,607			20			27			47

RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES — SHARE OF JOINT VENTURES		795			652			560			395			3,954			5,561			200			421			621
TOTAL RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES LESS COST OF SALES		4,436			6,072			1,603			475			4,352			12,502			296			425			721

INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES		12,051			2,976			2,987			3,121			3,158			12,242			3,357			3,322			6,679
RETAIL PROPERTIES		7,585			1,976			1,979			1,993			2,037			7,985			2,753			2,596			5,349

NET OPERATING INCOME		19,636			4,952			4,966			5,114			5,195			20,227			6,110			5,918			12,028
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES		795			652			560			395			3,954			5,561			200			421			621
MULTI-FAMILY SALES LESS COST OF SALES		115			117			45			165			146			473			17			33			50
INTEREST EXPENSE		(3,934	)		(899	)		(947	)		(1,187	)		(1,219	)		(4,252	)		(1,192	)		(1,147	)		(2,339	)
OTHER EXPENSE		(1,279	)		392			223			42			256			913			43			—			43
IMPAIRMENT LOSSES		(24,182	)		—			—			—			(3,746	)		(3,746	)		—			(250	)		(250	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(46	)		(6	)		(5	)		(6	)		(5	)		(22	)		(5	)		(5	)		(10	)

FUNDS FROM OPERATIONS — UNCONSOLIDATED JOINT VENTURES		(8,895	)		5,208			4,842			4,523			4,581			19,154			5,173			4,970			10,143
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		12			—			—			—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(8,754	)		(2,288	)		(2,448	)		(2,344	)		(2,581	)		(9,661	)		(2,678	)		(2,658	)		(5,336	)

NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		(17,637	)		2,920			2,394			2,179			2,000			9,493			2,496			2,312			4,808

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


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

MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END		7.63			8.31			6.74			7.14			8.34			8.34			8.35			8.54			8.54
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		99,782			100,866			101,767			102,635			103,392			103,392			103,631			103,714			103,714

COMMON STOCK CAPITALIZATION		761,337			838,196			685,910			732,814			862,289			862,289			865,319			885,718			885,718

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
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

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

DEBT		590,208			580,979			580,378			514,363			509,509			509,509			496,823			498,034			498,034
SHARE OF UNCONSOLIDATED DEBT		197,055			195,250			158,290			152,391			172,325			172,325			166,726			163,931			163,931

DEBT (A)		787,263			776,229			738,668			666,754			681,834			681,834			663,549			661,965			661,965

TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470			1,717,285			1,717,285
LEVERAGE RATIOS

DEBT (A)		787,263			776,229			738,668			666,754			681,834			681,834			663,549			661,965			661,965
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470			1,717,285			1,717,285
DEBT/TOTAL MARKET CAPITALIZATION		46	%		44	%		46	%		42	%		40	%		40	%		39	%		39	%		39	%

DEBT (A)		787,263			776,229			738,668			666,754			681,834			681,834			663,549			661,965			661,965
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602			169,602

DEBT (A) + PREFERRED		956,865			945,831			908,270			836,356			851,436			851,436			833,151			831,567			831,567
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470			1,717,285			1,717,285
DEBT (A) + PREFERRED/ TOTAL MARKET CAPITALIZATION		56	%		53	%		57	%		53	%		50	%		50	%		49	%		48	%		48	%

RECOURSE DEBT (A)		222,507			215,544			198,077			127,457			167,258			167,258			149,030			154,546			154,546
TOTAL MARKET CAPITALIZATION		1,718,202			1,784,027			1,594,180			1,569,170			1,713,725			1,713,725			1,698,470			1,717,285			1,717,285
RECOURSE DEBT (A)/TOTAL MARKET CAPITALIZATION		13	%		12	%		12	%		8	%		10	%		10	%		9	%		9	%		9	%

EBITDA (A)
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
INTEREST EXPENSE		45,328			10,680			11,233			9,889			9,630			41,432			8,736			8,505			17,241
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		3,428			577			468			447			419			1,911			568			377			945
INCOME TAX (PROVISION) BENEFIT		4,341			(1,146	)		14			25			28			(1,079	)		(64	)		27			(37	)
IMPAIRMENT LOSSES		115,752			—			586			—			5,714			6,300			3,508			250			3,758
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—			—			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT		(9,732	)		592			—			9,235			—			9,827			—			—			—
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			6,454

EBITDA (A)		87,181			27,910			25,372			23,708			27,821			104,811			24,097			23,282			47,379

COVERAGE RATIOS (A)
EBITDA		87,181			27,910			25,372			23,708			27,821			104,811			24,097			23,282			47,379

INTEREST EXPENSE		45,328			10,680			11,233			9,889			9,630			41,432			8,736			8,505			17,241
INTEREST COVERAGE RATIO (A)		1.92			2.61			2.26			2.40			2.89			2.53			2.76			2.74			2.75
INTEREST EXPENSE		45,328			10,680			11,233			9,889			9,630			41,432			8,736			8,505			17,241
SCHEDULED PRINCIPAL PAYMENTS		3,955			842			853			1,459			1,245			4,399			1,755			1,894			3,649
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			6,454

FIXED CHARGES		62,190			14,749			15,313			14,574			14,102			58,738			13,718			13,626			27,344
EBITDA		87,181			27,910			25,372			23,708			27,821			104,811			24,097			23,282			47,379
FIXED CHARGES COVERAGE RATIO (A)		1.40			1.89			1.66			1.63			1.97			1.78			1.76			1.71			1.73

DEBT		787,263			776,229			738,668			666,754			681,834			681,834			663,549			661,965			661,965
ANNUALIZED EBITDA		87,181			111,640			101,488			94,832			111,284			104,811			96,388			93,128			94,758
DEBT/ANNUALIZED EBITDA (A)		9.03			6.95			7.28			7.03			6.13			6.51			6.88			7.11			6.99

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


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

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH		22,710			2,997			3,034			3,060			3,085			12,176			4,653			4,663			9,316
COMMON STOCK		19,711			5,984			6,046			6,100			6,152			24,282			—			—			—

COMMON DIVIDENDS		42,421			8,981			9,080			9,160			9,237			36,458			4,653			4,663			9,316
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
FFO PAYOUT RATIO		-46	%		64	%		115	%		1034	%		92	%		111	%		57	%		43	%		49	%

FFO BEFORE CERTAIN CHARGES
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
IMPAIRMENT LOSSES (A)		115,752			—			586			—			5,714			6,300			3,508			250			3,758
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—			—			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT AND SWAP TERMINATION FEE		(9,732	)		592			—			9,235			—			9,827			—			—			—
VALUATION ALLOWANCES ON DEFERRED TAX ASSETS		15,907			—			—			—			—			—			—			—			—
SEPARATION CHARGES		3,257			68			33			202			742			1,045			101			77			178

FFO BEFORE CERTAIN CHARGES		40,341			14,640			10,463			10,323			15,259			50,685			11,731			11,223			22,954
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		105	%		61	%		87	%		89	%		61	%		72	%		40	%		42	%		41	%

FAD
FFO		(91,960	)		13,980			7,895			886			10,020			32,781			8,122			10,896			19,018
FAS 13 (A)		(7,277	)		(1,733	)		(1,918	)		(2,074	)		(2,211	)		(7,936	)		(2,637	)		(2,885	)		(5,522	)
SECOND GENERATION CAPEX (A)		(6,499	)		(1,009	)		(1,724	)		(3,337	)		(2,530	)		(8,600	)		(1,972	)		(6,425	)		(8,397	)

FAD		(105,736	)		11,238			4,253			(4,525	)		5,279			16,245			3,513			1,586			5,099
COMMON DIVIDENDS		42,421			8,981			9,080			9,160			9,237			36,458			4,653			4,663			9,316
FAD PAYOUT RATIO		-40	%		80	%		213	%		-202	%		175	%		224	%		132	%		294	%		183	%

FAD BEFORE CERTAIN CHARGES
FAD		(105,736	)		11,238			4,253			(4,525	)		5,279			16,245			3,513			1,586			5,099
IMPAIRMENT LOSSES (A)		115,752			—			586			—			5,714			6,300			3,508			250			3,758
PREDEVELOPMENT CHARGES		7,117			—			1,949			—			(1,217	)		732			—			—			—
(GAIN) LOSS ON DEBT EXTINGUISHMENT AND SWAP TERMINATION FEE		(9,732	)		592			—			9,235			—			9,827			—			—			—
VALUATION ALLOWANCES ON DEFERRED TAX ASSETS		15,907			—			—			—			—			—			—			—			—
SEPARATION CHARGES		3,257			68			33			202			742			1,045			101			77			178

FAD BEFORE CERTAIN CHARGES		26,565			11,898			6,821			4,912			10,518			34,149			7,122			1,913			9,035
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		160	%		75	%		133	%		186	%		88	%		107	%		65	%		244	%		103	%

OPERATIONS RATIOS
GENERAL AND ADMINISTRATIVE EXPENSES		26,198			8,017			6,763			6,172			7,565			28,517			7,400			6,133			13,533
REVENUES		214,544			67,200			52,612			52,148			55,775			227,735			48,956			45,419			94,375
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES		12.2	%		11.9	%		12.9	%		11.8	%		13.6	%		12.5	%		15.1	%		13.5	%		14.3	%

UNDEPRECIATED ASSETS		1,724,643			1,731,606			1,720,272			1,649,949			1,646,207			1,646,207			1,622,000			1,635,217			1,635,217
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES/UNDEPRECIATED ASSETS		1.5	%		1.9	%		1.6	%		1.5	%		1.8	%		1.7	%		1.8	%		1.5	%		1.7	%


(A)		INCLUDES COMPANY SHARE OF UNCONSOLIDATED JOINT VENTURES.

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


	Three Months Ended									Six Months Ended
	June 30,			June 30,			March 31,			June 30,			June 30,
	2011			2010			2011			2011			2010
Net Operating Income
Same Property		25,634			25,000			26,112			51,746			49,607
Non-Same Property		1,500			2,308			2,035			3,535			4,683

Consolidated Property Net Operating Income		27,134			27,308			28,147			55,281			54,289

Less: Non-Cash Items
FAS 13		2,803			1,830			2,557			5,361			3,431
Other		(303	)		(258	)		(292	)		(595	)		(507	)

Non-Cash Items		2,501			1,572			2,265			4,766			2,923
Cash Basis Property Net Operating Income		24,633			25,735			25,882			50,515			51,366

Net Operating Income (1)
Operating Properties		21,264			20,723			21,901			43,165			40,965
Discountinued Operations		(48	)		1,619			136			88			3,406
Share of Unconcolidated Joint Ventures		5,918			4,966			6,110			12,028			9,918

Total Net Operating Income		27,134			27,308			28,147			55,281			54,289


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

COUSINS PROPERTIES INCORPORATED

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

“Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates FFO in accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, which is net income (loss) available to common stockholders (computed in accordance with accounting principles generally accepted in the United States (“GAAP”)), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable real property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts and investors as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes that the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

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

COUSINS PROPERTIES INCORPORATED
DISCUSSION OF NON-GAAP FINANCIAL MEASURES

“Net Operating Income” is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. Net Operating Income which is rental property revenues less rental property operating expenses, like FFO, excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. Certain items, such as interest expense, while included in FFO and net income, do not affect the operating performance of a real estate asset and are often incurred at the corporate level as opposed to the property level. As a result, management uses only those income and expense items that are incurred at the property level to evaluate a property’s performance. Depreciation and amortization are also excluded from Net Operating Income for the reasons described under FFO above. Additionally, appraisals of real estate are based on the value of an income stream before interest and depreciation.

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

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