COUSINS PROPERTIES INC - FORM 8-K - EX-99.1 - QUARTERLY INFORMATION PACKAGE

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8-K - FORM 8-K - COUSINS PROPERTIES INC	d430584d8k.htm

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED

Quarterly Information Package

For the Quarter Ended September 30, 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			14
Same Property Performance – Leasing and Occupancy			15
Same Property Performance – Net Operating Income			16
Square Feet Expiring			17
Top 20 Tenants			18
Development Pipeline			19
Inventory of Commercial Land Held			20
Inventory of Lots and Tracts in Residential Projects			21
Debt Outstanding			22
Joint Venture Information			23
Calculations and Reconciliations of Non-GAAP Financial Measures			24
Discussion of Non-GAAP Financial Measures			30

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 or changes in Company business and financial strategy; leasing risks; loss of key personnel; potential acquisitions, new investments and/or dispositions; the failure of purchase, sale or other contracts to ultimately close; 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, 2011. 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.

LOGO

CONTACT:

Gregg D. Adzema

Executive Vice President and

Chief Financial Officer

(404) 407-1116

greggadzema@cousinsproperties.com

Cameron Golden

Vice President, Investor Relations and

Corporate Communications

(404) 407-1984

camerongolden@cousinsproperties.com

COUSINS REPORTS RESULTS FOR THE THIRD QUARTER OF 2012

Highlights

•

Funds From Operations was $0.25 per share, adjusting for special items FFO was $0.15 per share.

•

Completed the sale of Cousins Properties Services for a gain of $7.4 million.

•

Acquired 2100 Ross Avenue in Dallas, Texas.

•

Commenced operations at Emory Point in Atlanta, Georgia and Mahan Village in Tallahassee, Florida.

•

Same property net operating income increased 4.1% for the first nine months of 2012.

ATLANTA (October 30, 2012) – Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended September 30, 2012.

“It was an active and productive third quarter, with the execution of several encouraging transactions and another solid performance for the core operating portfolio,” said Larry Gellerstedt, CEO of Cousins. “We remain focused on simplifying the platform, leasing vacant space, and sourcing additional investment opportunities.”

Portfolio Activity

•

Leased 175,000 square feet of office space and 119,000 square feet of retail space.

•

The office and retail portfolios finished the quarter 91% and 89% leased, respectively, on a same property basis.

•

Subsequent to quarter end, executed 25,000 square feet of additional leases at Promenade in Atlanta, Georgia, bringing the property to 72% leased.

Transaction Activity

•

Completed the sale of Cousins Properties Services, a business unit providing third-party services to owners of Class A office buildings, to Cushman & Wakefield.

•

Acquired 2100 Ross Avenue, a 67% leased, 844,000-square-foot, Class-A office tower located in the Arts District submarket of Dallas, Texas, for cash of $59.2 million or $70 per square-foot.

•

Commenced operations at Emory Point, a mixed-use development comprised of 443 apartments and 80,000 square feet of retail space, located adjacent to Emory University in Atlanta, Georgia.

•

Commenced operations at Mahan Village, a 147,000-square-foot grocery-anchored retail center development in Tallahassee, Florida.

- MORE -

LOGO

CUZ Reports Third Quarter Results

Page 2

October 30, 2012

•

Entered into agreements to sell Avenue Webb Gin and Avenue Forsyth, two retail lifestyle centers in Atlanta, Georgia.

•

Subsequent to quarter end, completed the sale of Cosmopolitan Center, an office complex in Atlanta, Georgia slated for re-development, for $7.0 million.

Financial Results

FFO was $25.7 million, or $0.25 per share, for the third quarter of 2012 compared with $14.3 million, or $0.14 per share, for the third quarter of 2011. FFO was $52.3 million, or $0.50 per share, for the nine months ended September 30, 2012, compared with $33.3 million, or $0.32 per share, for the same period in 2011.

Net income available to common stockholders was $9.4 million, or $0.09 per share, for the third quarter of 2012 compared with net income available of $188,000, or $0.00 per share, for the third quarter of 2011. Net income available was $2.7 million, or $0.03 per share, for the nine months ended September 30, 2012, compared with net loss available of ($12.4) million, or ($0.12) per share, for the same period in 2011.

During the third quarter of 2012, the Company recorded several special items in FFO. These items included a $7.4 million gain on the sale of Cousins Properties Services and income of $3.4 million associated with a participation interest in a previously completed development in Austin, Texas. Additionally, the Company completed a strategic re-organization which generated $574,000 in severance expense in the third quarter of 2012 and is expected to generate additional severance expense in the fourth quarter of 2012. As a result of this re-organization, the Company anticipates a reduction in general and administrative expenses for 2013. The Company also recorded a charge of $488,000 on its investment in Verde Realty as a result of Verde’s recently announced merger. The completion of this merger is currently anticipated to close in the fourth quarter of 2012 and will result in the complete liquidation of the Company’s investment in Verde. The following table reconciles FFO to FFO before these special items for the three months ended September 30, 2012:


	Actual ($000)			Per Share
FFO	$	25,685		$	0.25
Gain on sale of Cousins Properties Services		(7,384	)		(0.07	)
Participation interest income		(3,366	)		(0.03	)
Severance/reorganization expenses		574			0.01
Verde charge		488			0.00

FFO before special items	$	15,997		$	0.15

Investor Conference Call and Webcast

The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Wednesday, October 31, 2012, to discuss the results of the quarter ended September 30, 2012. The number to call for this interactive teleconference is (212) 231-2905.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21607107. The replay can be accessed on the Company’s website,

- MORE -

CUZ Reports Third Quarter Results

Page 3

October 30, 2012

www.cousinsproperties.com, through the “Q3 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 Operations, 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.

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 or changes in Company business and financial strategy; leasing risks; loss of key personnel; potential acquisitions, new investments and/or dispositions; the failure of purchase, sale or other contracts to ultimately close; the financial condition of existing tenants; competition from other developers or investors; the risks associated with real estate development and acquisitions; the availability of buyers and adequate pricing if the Company intends to liquidate certain assets; 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, 2011. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statement are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise, except as required under U.S. federal securities laws.

- MORE -

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
REVENUES:
Rental property revenues	$	32,592		$	27,022		$	92,846		$	78,802
Fee income		7,343			3,909			12,985			10,729
Residential lot and outparcel sales		732			165			2,216			410
Other		3,061			447			4,587			6,154

		43,728			31,543			112,634			96,095


COSTS AND EXPENSES:
Rental property operating expenses		14,400			11,775			39,595			33,658
Residential lot and outparcel cost of sales		354			158			1,334			303
General and administrative expenses		5,255			4,295			17,523			17,828
Interest expense		5,793			6,601			17,936			21,503
Reimbursed expenses		1,235			1,866			3,968			4,749
Depreciation and amortization		11,567			8,719			32,526			25,562
Impairment loss		488			—			488			3,508
Separation expenses		574			15			866			193
Other		2,257			773			3,504			4,760

		41,923			34,202			117,740			112,064


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

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		1,805			(2,733	)		(5,200	)		(16,043	)

BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS		(60	)		180			(120	)		217

INCOME FROM UNCONSOLIDATED JOINT VENTURES		2,269			2,660			14,217			7,468



INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		4,014			107			8,897			(8,358	)

GAIN ON SALE OF INVESTMENT PROPERTIES		60			59			146			177


INCOME (LOSS) FROM CONTINUING OPERATIONS		4,074			166			9,043			(8,181	)

INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Income (loss) from discontinued operations		1,760			2,619			(5,093	)		6,503
Gain on sale of discontinued operations		7,444			2,821			8,204			2,437

		9,204			5,440			3,111			8,940


NET INCOME		13,278			5,606			12,154			759

NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(608	)		(2,192	)		259			(3,454	)

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST		12,670			3,414			12,413			(2,695	)

DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,226	)		(3,226	)		(9,680	)		(9,680	)


NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$	9,444		$	188		$	2,733		$	(12,375	)


PER COMMON SHARE INFORMATION – BASIC AND DILUTED:
Income (loss) from continuing operations attributable to controlling interest	$	—		$	(0.05	)	$	—		$	(0.21	)
Income from discontinued operations		0.09			0.05			0.03			0.09

Net income (loss) available to common stockholders	$	0.09		$	0.00		$	0.03		$	(0.12	)

WEIGHTED AVERAGE SHARES – BASIC		104,193			103,715			104,120			103,631

WEIGHTED AVERAGE SHARES – DILUTED		104,203			103,715			104,125			103,631

DIVIDENDS PER COMMON SHARE	$	0.045		$	0.045		$	0.135		$	0.135

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Unaudited, in thousands, except per share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Net Income (Loss) Available to Common Stockholders	$	9,444		$	188		$	2,733		$	(12,375	)
Depreciation and amortization:
Consolidated properties		11,567			8,719			32,526			25,562
Discontinued properties		2,575			4,650			8,622			14,721
Share of unconsolidated joint ventures		2,480			2,444			7,646			7,790
Depreciation of furniture, fixtures and equipment:
Consolidated properties		(256	)		(388	)		(843	)		(1,323	)
Discontinued properties		—			—			—			—
Share of unconsolidated joint ventures		(5	)		(5	)		(15	)		(15	)
Impairment loss on depreciable investment property net of amounts attributable to noncontrolling interests		—			—			10,190			—
(Gain) loss on sale of investment properties:
Consolidated properties including amounts attributable to noncontrolling interests		(60	)		(59	)		(146	)		(177	)
Discontinued properties		(7,444	)		(1,240	)		(8,204	)		(856	)
Share of unconsolidated joint ventures		—			—			(7,509	)		—
Gain on sale of third party management and leasing business		7,384			—			7,384			—
Other		—			—			(59	)		—


Funds From Operations Available to Common Stockholders	$	25,685		$	14,309		$	52,325		$	33,327


Per Common Share – Basic and Diluted:
Net Income (Loss) Available	$	0.09		$	0.00		$	0.03		$	(0.12	)

Funds From Operations	$	0.25		$	0.14		$	0.50		$	0.32


Weighted Average Shares – Basic		104,193			103,715			104,120			103,631

Weighted Average Shares – Diluted		104,203			103,718			104,125			103,642

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

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

Management believes that FFO before 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

(in thousands, except share and per share amounts)


	September 30, 2012			December 31, 2011
	(unaudited)
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $247,774 and $289,473 in 2012 and 2011, respectively	$	674,615		$	884,652
Projects under development		24,668			11,325
Land held		51,217			54,132
Residential lots		11,965			13,195
Other		431			637

Total properties		762,896			963,941

OPERATING PROPERTIES AND RELATED ASSETS HELD FOR SALE, net of accumulated depreciation of $46,936 in 2012		174,054			—

CASH AND CASH EQUIVALENTS		5,469			4,858
RESTRICTED CASH		2,749			4,929
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $1,207 and $5,100 in 2012 and 2011, respectively		11,163			11,359
DEFERRED RENTS RECEIVABLE		37,840			37,141
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		139,782			160,587
OTHER ASSETS		65,148			52,720


TOTAL ASSETS	$	1,199,101		$	1,235,535


LIABILITIES AND EQUITY
NOTES PAYABLE	$	518,630		$	539,442
ACCOUNTS PAYABLE AND OTHER LIABILITIES		40,073			38,592
DEFERRED INCOME		12,498			17,343

TOTAL LIABILITIES		571,201			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, 107,705,782 and 107,272,078 shares issued in 2012 and 2011, respectively		107,706			107,272
Additional paid-in capital		689,194			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		(285,508	)		(274,177	)

TOTAL STOCKHOLDERS’ INVESTMENT		594,154			603,692
Nonredeemable noncontrolling interests		33,746			33,703

TOTAL EQUITY		627,900			637,395


TOTAL LIABILITIES AND EQUITY	$	1,199,101		$	1,235,535

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

(Unaudited, in thousands)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Net Operating Income – Consolidated Properties
Rental property revenues	$	32,592	$	27,022	$	92,846	$	78,802
Rental property expenses		14,400		11,775		39,595		33,658


Net Operating Income – Consolidated Properties		18,192		15,247		53,251		45,144
Net Operating Income – Discontinued Operations
Rental property revenues		5,055		10,519		18,968		31,720
Rental property expenses		1,508		4,391		6,001		12,237

Net Operating Income – Discontinued Operations		3,547		6,128		12,967		19,483

Net Operating Income – Unconsolidated Joint Ventures		2,670		2,647		7,944		7,938

Total Net Operating Income	$	24,409	$	24,022	$	74,162	$	72,565


Net Operating Income:
Same property		24,446		23,752		73,385		70,512
Non-same property		3,174		3,675		10,920		12,138

Net Operating Income	$	27,620	$	27,426	$	84,305	$	82,650

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 YTD

Property Statistics
Number of Operating Properties		41			40			40			39			38			38			38			35			37			37
Rentable Square Feet (in thousands)		14,156			13,747			13,749			13,342			12,572			12,572			12,573			11,688			12,678			12,678
Acres of Commercial Land (Company share)		510			510			510			506			424			424			424			419			419			419
Acres of Residential Land (Company share)		4,829			4,831			4,228			4,228			4,596			4,596			4,026			4,026			4,026			4,026
Number of Residential Lots Remaining to be Sold (Company Share)		3,684			3,667			3,632			3,600			2,687			2,687			685			681			676			676

Leverage Ratios (1)
Debt/Total Market Capitalization		40	%		39	%		39	%		45	%		46	%		46	%		42	%		39	%		41	%		41	%
Debt/Total Undepreciated Assets		35	%		34	%		34	%		33	%		37	%		37	%		38	%		36	%		38	%		38	%
Debt + Preferred/Total Market Capitalization		50	%		49	%		48	%		57	%		57	%		57	%		52	%		49	%		51	%		51	%
Debt + Preferred/Total Undepreciated Assets		43	%		43	%		43	%		42	%		46	%		46	%		47	%		45	%		47	%		47	%

Coverage Ratios (1)
Interest Coverage		2.53			2.76			2.74			3.28			3.65			3.08			3.31			3.40			3.81			3.50
Fixed Charges Coverage		1.78			1.76			1.71			2.02			2.15			1.90			1.93			1.93			2.19			2.01
Debt/Annualized EBITDA		6.13			6.88			7.11			6.09			6.45			6.45			7.03			6.55			6.65			6.65

Dividend Ratios (1)
FFO Payout Ratio		111	%		57	%		43	%		33	%		-4	%		-24	%		35	%		36	%		18	%		27	%
FFO Before Certain Charges Payout Ratio		72	%		40	%		42	%		32	%		29	%		35	%		37	%		35	%		29	%		34	%
FAD Payout Ratio		226	%		133	%		297	%		94	%		-4	%		-17	%		55	%		59	%		25	%		40	%
FAD Before Certain Charges Payout Ratio		107	%		66	%		246	%		92	%		51	%		80	%		61	%		59	%		51	%		56	%

Operations Ratios (1)
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	%		11.9	%
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	%		1.2	%

(1)	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 YTD
NET OPERATING INCOME
OFFICE		72,792			18,608			18,780			18,848			19,151			75,387			20,598			20,013			20,452			61,063
RETAIL		31,729			8,430			7,443			7,672			8,038			31,583			8,658			7,415			7,168			23,241
OTHER		3,721			1,051			911			907			714			3,583			1			—			—			1

TOTAL NET OPERATING INCOME		108,242			28,089			27,134			27,427			27,903			110,553			29,257			27,428			27,620			84,305
SALES LESS COST OF SALES
RESIDENTIAL LOTS		2,446			226			398			519			504			1,647			385			119			378			882
TRACTS AND OUTPARCEL		10,056			70			27			167			3,325			3,589			—			(30	)		—			(30	)
OTHER		7,898			2,174			53			(2	)		25			2,250			(1	)		53			—			52

TOTAL SALES LESS COST OF SALES		20,400			2,470			478			684			3,854			7,486			384			142			378			904
FEE INCOME		14,443			3,385			3,435			3,909			3,092			13,821			2,856			2,786			7,343			12,985
THIRD PARTY MANAGEMENT AND LEASING REVENUES		18,977			4,088			4,605			5,398			5,268			19,359			4,711			6,029			4,789			15,529
OTHER INCOME		1,312			571			644			448			541			2,204			1,507			112			3,329			4,948

TOTAL FEE AND OTHER INCOME		34,732			8,044			8,684			9,755			8,901			35,384			9,074			8,927			15,461			33,462

GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			—			—			—			—			—			7,384			7,384

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(13,167	)

REIMBURSED EXPENSES		(6,297	)		(1,512	)		(1,371	)		(1,866	)		(1,459	)		(6,208	)		(1,376	)		(1,357	)		(1,235	)		(3,968	)

SEPARATION EXPENSES		(1,045	)		(101	)		(77	)		(15	)		(4	)		(197	)		(213	)		(79	)		(574	)		(866	)

GENERAL AND ADMINISTRATIVE EXPENSES		(28,517	)		(7,400	)		(6,133	)		(4,295	)		(6,338	)		(24,166	)		(6,623	)		(5,645	)		(5,255	)		(17,523	)

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	)		(21,143	)

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	)		(5,823	)

INCOME TAX (PROVISION) BENEFIT		1,079			64			(27	)		180			(31	)		186			(27	)		(33	)		(60	)		(120	)

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(1,911	)		(568	)		(377	)		(393	)		(370	)		(1,708	)		(369	)		(228	)		(261	)		(858	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(9,680	)


FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
WEIGHTED AVERAGE SHARES –BASIC		101,440			103,515			103,659			103,715			103,712			103,651			104,000			104,165			104,193			104,120
WEIGHTED AVERAGE SHARES – DILUTED		101,440			103,530			103,684			103,718			103,712			103,655			104,000			104,165			104,203			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			0.50

(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 YTD
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
TERMINUS 100		14,781			4,015			3,897			3,669			3,956			15,537			4,063			4,039			3,922			12,024
191 PEACHTREE TOWER		13,117			3,228			3,238			3,641			3,937			14,044			3,789			3,745			3,899			11,433
THE AMERICAN CANCER SOCIETY CENTER		10,818			2,771			2,995			2,927			2,878			11,571			2,872			2,581			2,744			8,197
PROMENADE		—			—			—			—			693			693			2,014			2,324			2,124			6,462
MERIDIAN MARK PLAZA		3,686			895			946			1,021			1,001			3,863			1,015			996			1,013			3,024
2100 ROSS AVENUE		—			—			—			—			—			—			—			—			876			876
THE POINTS AT WATERVIEW		1,927			415			423			523			463			1,824			504			557			516			1,577
LAKESHORE PARK PLAZA		2,203			546			505			490			558			2,099			559			559			513			1,631
333 NORTH POINT CENTER EAST		1,673			419			456			375			389			1,639			424			406			421			1,251
600 UNIVERSITY PARK PLACE		1,526			182			300			352			355			1,189			384			354			376			1,114
200 NORTH POINT CENTER EAST		1,575			438			420			374			359			1,591			356			329			310			995
100 NORTH POINT CENTER EAST		1,524			307			373			346			329			1,355			279			309			283			871
555 NORTH POINT CENTER EAST		2,038			506			448			406			418			1,778			195			224			128			547
INHIBITEX		896			225			224			224			224			897			225			223			125			573
OTHER		—			—			(4	)		(3	)		—			(7	)		(5	)		(29	)		(3	)		(37	)

SUBTOTAL – OFFICE CONSOLIDATED		55,764			13,947			14,221			14,345			15,560			58,073			16,674			16,617			17,247			50,538
UNCONSOLIDATED PROPERTIES:
PALISADES WEST		5,012			1,511			1,512			1,511			1,536			6,070			1,528			1,474			1,512			4,514
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,679			933			992			960			937			3,822			970			920			950			2,840
TERMINUS 200		62			14			67			140			242			463			358			374			439			1,171
GATEWAY VILLAGE (2)		1,208			302			302			302			302			1,208			302			302			302			906
TEN PEACHTREE PLACE		2,314			602			448			495			486			2,031			501			201			21			723
PRESBYTERIAN MEDICAL PLAZA		19			14			15			18			14			61			16			17			5			38
OTHER		(52	)		(19	)		(14	)		(20	)		(10	)		(63	)		(14	)		(17	)		(18	)		(49	)

SUBTOTAL – OFFICE UNCONSOLIDATED		12,242			3,357			3,322			3,406			3,507			13,592			3,661			3,271			3,211			10,143
DISCONTINUED OPERATIONS:
GALLERIA 75		319			132			127			107			147			513			206			145			—			351
ONE GEORGIA CENTER		4,101			1,067			1,009			1,071			(39	)		3,108			15			—			—			15
8995 WESTSIDE PARKWAY		(149	)		(1	)		—			(5	)		—			(6	)		—			—			—			—
COSMOPOLITAN CENTER		515			106			95			(76	)		(24	)		101			41			(20	)		(6	)		15
OTHER		—			—			6			—			—			6			1			—			—			1

SUBTOTAL – OFFICE DISCONTINUED		4,786			1,304			1,237			1,097			84			3,722			263			125			(6	)		382
TOTAL – OFFICE NET OPERATING INCOME		72,792			18,608			18,780			18,848			19,151			75,387			20,598			20,013			20,452			61,063

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 YTD
RETAIL:
CONSOLIDATED PROPERTIES:
TIFFANY SPRINGS MARKETCENTER		3,311		856			875			901			875		3,507			897			864			889			2,650
MAHAN VILLAGE		—		—			—			—			—		—			—			—			55			55
OTHER		—		—			(3	)		(1	)		1		(3	)		—			4			2			6

SUBTOTAL – RETAIL CONSOLIDATED		3,311		856			872			900			876		3,504			897			868			946			2,711

UNCONSOLIDATED PROPERTIES:
THE AVENUE MURFREESBORO		4,405		1,175			1,153			1,140			1,224		4,692			1,075			1,148			1,168			3,391
CW INVESTMENTS (3)		—		594			594			612			610		2,410			610			610			591			1,811
NORTH POINT MARKETCENTER		493		138			121			132			141		532			144			146			156			446
GREENBRIER MARKETCENTER		551		142			141			132			135		550			152			141			144			437
THE AVENUE EAST COBB		634		144			163			150			112		569			122			151			137			410
THE AVENUE VIERA		503		128			129			128			134		519			137			130			136			403
THE AVENUE WEST COBB		493		135			134			142			148		559			134			133			133			400
THE AVENUE PEACHTREE CITY		437		106			99			103			102		410			112			106			106			324
LOS ALTOS MARKETCENTER		220		84			10			60			67		221			71			53			56			180
VIERA MARKETCENTER		201		49			53			49			55		206			51			49			53			153
EMORY POINT		—		—			—			—			—		—			—			—			(9	)		(9	)
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			7,945

DISCONTINUED OPERATIONS:
THE AVENUE FORSYTH		6,235		2,166			1,684			1,907			2,019		7,776			2,704			2,397			2,407			7,508
THE AVENUE WEBB GIN		5,295		1,463			1,322			1,239			1,251		5,275			1,258			1,087			1,137			3,482
THE AVENUE COLLIERVILLE		5,238		1,254			1,023			970			1,163		4,410			1,190			405			8			1,603
SAN JOSE MARKETCENTER		3,713		(4	)		(54	)		9			1		(48	)		1			(8	)		(1	)		(8	)

SUBTOTAL – RETAIL DISCONTINUED		20,481		4,879			3,975			4,125			4,434		17,413			5,153			3,881			3,551			12,585
TOTAL – RETAIL NET OPERATING INCOME		31,729		8,430			7,443			7,672			8,038		31,583			8,658			7,415			7,168			23,241

OTHER DISCONTINUED OPERATIONS:
LAKESIDE RANCH BUSINESS PARK—BUILDING 20		1,265		372			382			373			285		1,412			(1	)		1			—			—
KING MILL DISTRIBUTION PARK—BUILDING 3		1,785		537			529			534			429		2,029			2			(1	)		—			1
JEFFERSON MILL BUSINESS PARK—BUILDING A		575		141			—			—			—		141			—			—			—			—

SUBTOTAL – OTHER DISCONTINUED		3,625		1,050			911			907			714		3,582			1			—			—			1
																											—

OTHER CONSOLIDATED NET OPERATING INCOME		96		1			—			—			—		1			—			—			—			—

TOTAL – OTHER NET OPERATING INCOME		3,721		1,051			911			907			714		3,583			1			—			—			1
TOTAL NET OPERATING INCOME		108,242		28,089			27,134			27,427			27,903		110,553			29,257			27,428			27,620			84,305

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 YTD
SALES LESS COST OF SALES

LOT SALES LESS COST OF SALES – CONSOLIDATED		574			46			4			7			17			74			385			119			378			882
LOT SALES LESS COST OF SALES – UNCONSOLIDATED		1,872			180			394			512			487			1,573			—			—			—			—

SUBTOTAL—LOT SALES LESS COST OF SALES		2,446			226			398			519			504			1,647			385			119			378			882

TRACT SALES LESS COST OF SALES – CONSOLIDATED		1,697			—			—			—			3,258			3,258			—			(30	)		—			(30	)
TRACT SALES LESS COST OF SALES – UNCONSOLIDATED		3,607			20			27			167			67			281			—			—			—			—
OUTPARCEL SALES LESS COST OF SALES – CONSOLIDATED		4,670			50			—			—			—			50			—			—			—			—
OUTPARCEL SALES LESS COST OF SALES – UNCONSOLIDATED		82			—			—			—			—			—			—			—			—			—

SUBTOTAL—TRACT AND OUTPARCEL SALES LESS COST OF SALES		10,056			70			27			167			3,325			3,589			—			(30	)		—			(30	)

OTHER – CONSOLIDATED		7,425			2,157			20			—			—			2,177			—			55			—			55
OTHER – UNCONSOLIDATED		473			17			33			(2	)		25			73			(1	)		(2	)		—			(3	)

SUBTOTAL – OTHER SALES LESS COST OF SALES		7,898			2,174			53			(2	)		25			2,250			(1	)		53			—			52

TOTAL SALES LESS COST OF SALES		20,400			2,470			478			684			3,854			7,486			384			142			378			904

FEE INCOME

DEVELOPMENT FEES		2,013			532			612			994			712			2,850			525			640			5,278			6,443
MANAGEMENT FEES (4)		9,662			2,377			2,176			2,198			2,106			8,857			2,099			2,051			1,944			6,094
LEASING & OTHER FEES		2,768			476			647			717			274			2,114			232			95			121			448

TOTAL – FEE INCOME		14,443			3,385			3,435			3,909			3,092			13,821			2,856			2,786			7,343			12,985

THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,239			249			271			266			588			1,374			314			272			296			882
MANAGEMENT FEES (5)		13,539			3,359			3,341			3,136			3,226			13,062			3,396			3,452			3,553			10,401
LEASING & OTHER FEES		4,199			480			993			1,996			1,454			4,923			1,001			2,305			940			4,246

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			15,529

OTHER INCOME

TERMINATION FEES		562			452			369			368			437			1,626			234			22			2,975			3,231
INTEREST AND OTHER INCOME – CONTINUING OPERATIONS		715			111			203			96			52			462			1,098			91			95			1,284
INTEREST AND OTHER INCOME – DISCONTINUED OPERATIONS		35			8			72			(16	)		52			116			175			(1	)		259			433

TOTAL INTEREST INCOME & OTHER		1,312			571			644			448			541			2,204			1,507			112			3,329			4,948

TOTAL FEE AND OTHER INCOME		34,732			8,044			8,684			9,755			8,901			35,384			9,074			8,927			15,461			33,462

GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			—			—			—			—			—			7,384			7,384

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(13,167	)

REIMBURSED EXPENSES		(6,297	)		(1,512	)		(1,371	)		(1,866	)		(1,459	)		(6,208	)		(1,376	)		(1,357	)		(1,235	)		(3,968	)

SEPARATION EXPENSES		(1,045	)		(101	)		(77	)		(15	)		(4	)		(197	)		(213	)		(79	)		(574	)		(866	)

GENERAL AND ADMINISTRATIVE EXPENSES		(28,517	)		(7,400	)		(6,133	)		(4,295	)		(6,338	)		(24,166	)		(6,623	)		(5,645	)		(5,255	)		(17,523	)

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 YTD
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	)		(6,695	)
TERMINUS 100		(11,135	)		(1,842	)		(1,835	)		(1,829	)		(1,822	)		(7,328	)		(1,816	)		(1,808	)		(1,802	)		(5,426	)
191 PEACHTREE TOWER		—			—			—			—			—			—			(28	)		(891	)		(891	)		(1,810	)
UNSECURED CREDIT FACILITY		(5,235	)		(1,475	)		(1,480	)		(1,665	)		(1,585	)		(6,205	)		(1,648	)		(777	)		(725	)		(3,150	)
MERIDIAN MARK PLAZA		(1,763	)		(409	)		(408	)		(407	)		(406	)		(1,630	)		(404	)		(403	)		(402	)		(1,209	)
THE POINTS AT WATERVIEW		(983	)		(242	)		(240	)		(239	)		(237	)		(958	)		(235	)		(234	)		(232	)		(701	)
MAHAN VILLAGE		—			—			—			—			—			—			—			(20	)		(43	)		(63	)
100 NORTH POINT CENTER EAST		(679	)		(169	)		(168	)		(167	)		(167	)		(671	)		(166	)		(4	)		—			(170	)
200 NORTH POINT CENTER EAST		(679	)		(169	)		(168	)		(167	)		(167	)		(671	)		(166	)		(4	)		—			(170	)
600 UNIVERSITY PARK PLACE		(933	)		(230	)		(229	)		(100	)		—			(559	)		—			—			—			—
333 & 555 NORTH POINT CENTER EAST		(1,906	)		(471	)		(317	)		—			—			(788	)		—			—			—			—
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			1,459

SUBTOTAL – CONSOLIDATED		(37,180	)		(7,544	)		(7,358	)		(6,601	)		(6,281	)		(27,784	)		(6,268	)		(5,875	)		(5,793	)		(17,936	)

UNCONSOLIDATED DEBT:
THE AVENUE MURFREESBORO		(1,409	)		(458	)		(417	)		(484	)		(453	)		(1,812	)		(444	)		(437	)		(438	)		(1,319	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,472	)		(364	)		(361	)		(359	)		(357	)		(1,441	)		(355	)		(353	)		(351	)		(1,059	)
TERMINUS 200		(155	)		(89	)		(93	)		(98	)		(113	)		(393	)		(126	)		(129	)		(129	)		(384	)
THE AVENUE EAST COBB		(246	)		(49	)		(49	)		(49	)		(49	)		(196	)		(49	)		(48	)		(48	)		(145	)
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	)		(3,207	)

TOTAL INTEREST EXPENSE		(41,432	)		(8,736	)		(8,505	)		(7,813	)		(7,461	)		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(21,143	)

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	)		(1,813	)
PROPERTY TAXES & OTHER HOLDING COSTS		(3,158	)		(803	)		(555	)		(522	)		(514	)		(2,394	)		(433	)		(320	)		(518	)		(1,271	)
PREDEVELOPMENT & OTHER		(1,258	)		(59	)		(117	)		(266	)		(1,600	)		(2,042	)		(265	)		(143	)		(1,747	)		(2,155	)
OTHER – UNCONSOLIDATED		914			43			—			(413	)		(97	)		(467	)		(279	)		(138	)		(167	)		(584	)

TOTAL – OTHER EXPENSES		(6,042	)		(1,400	)		(1,353	)		(1,814	)		(2,423	)		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(5,823	)

INCOME TAX (PROVISION) BENEFIT		1,079			64			(27	)		180			(31	)		186			(27	)		(33	)		(60	)		(120	)

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(1,884	)		(563	)		(372	)		(388	)		(365	)		(1,688	)		(364	)		(223	)		(256	)		(843	)
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	)		(858	)

PREFERRED STOCK DIVIDENDS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(9,680	)

FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
WEIGHTED AVERAGE SHARES – BASIC		101,440			103,515			103,659			103,715			103,712			103,651			104,000			104,165			104,193			104,120
WEIGHTED AVERAGE SHARES – DILUTED		101,440			103,530			103,684			103,718			103,712			103,655			104,000			104,165			104,203			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			0.50

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

(2)	The Company receives an 11.46% current return on its $10.4 million investment in Gateway Village. Upon liquidation of the venture, the Company will receive up to a 17% internal rate of return on its investment.

(3)	The Company receives a 16.00% current return on its $14.9 million original investment in CW Investments. 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.

(5)	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 September 30, 2012


								Company Share
														Property
					Company’s						% of Total			Level
		Metropolitan	Rentable		Ownership			Percent			Net Operating			Debt
	Property Description	Area	Square Feet		Interest			Leased			Income (3)			($000)
I.	OFFICE PROPERTIES
	Terminus 100	Atlanta		655,000		100.00	%		96	%		14	%		136,651
	191 Peachtree Tower	Atlanta		1,221,000		100.00	%		87	%		14	%		100,000
	The American Cancer Society Center	Atlanta		996,000		100.00	%		83	%		10	%		134,615
	Promenade (2)	Atlanta		775,000		91.05	%		69	%		8	%		—
	Meridian Mark Plaza	Atlanta		160,000		100.00	%		98	%		4	%		26,286
	Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		99	%		3	%		23,393
	555 North Point Center East	Atlanta		152,000		100.00	%		94	%		0	%		—
	333 North Point Center East	Atlanta		130,000		100.00	%		98	%		2	%		—
	200 North Point Center East	Atlanta		130,000		100.00	%		100	%		1	%		—
	100 North Point Center East	Atlanta		128,000		100.00	%		84	%		1	%		—
	Inhibitex	Atlanta		51,000		100.00	%		0	%		0	%		—
	Terminus 200 (1)	Atlanta		566,000		20.00	%		88	%		2	%		14,823
	Cosmopolitan Center (4)	Atlanta		51,000		100.00	%		94	%		0	%		—

	GEORGIA			5,373,000					85	%		59	%		435,768

	Palisades West (5)	Austin		373,000		50.00	%		100	%		6	%		—
	2100 Ross Avenue	Dallas		844,000		100.00	%		67	%		3	%		—
	The Points at Waterview	Dallas		203,000		100.00	%		90	%		2	%		15,775

	TEXAS			1,420,000					76	%		11	%		15,775

	Lakeshore Park Plaza (2)	Birmingham		197,000		100.00	%		97	%		2	%		—
	600 University Park Place (2)	Birmingham		123,000		100.00	%		95	%		1	%		—

	ALABAMA			320,000					96	%		3	%		—

	Gateway Village (1)	Charlotte		1,065,000		50.00	%		100	%		1	%		36,022
	Presbyterian Medical Plaza	Charlotte		66,000		11.50	%		59	%		0	%		—

	NORTH CAROLINA			1,131,000					99	%		1	%		36,022

	TOTAL OFFICE PROPERTIES			8,244,000					85	%		74	%		487,565


II.	RETAIL PROPERTIES(6)
	The Avenue Forsyth	Atlanta		524,000		88.50	%		93	%		9	%		—
	The Avenue Webb Gin	Atlanta		322,000		100.00	%		83	%		4	%		—
	The Avenue West Cobb	Atlanta		256,000		11.50	%		95	%		0	%		—
	North Point MarketCenter	Atlanta		401,000		10.32	%		100	%		1	%		—
	The Avenue East Cobb	Atlanta		230,000		11.50	%		86	%		1	%		4,091
	The Avenue Peachtree City	Atlanta		183,000		11.50	%		94	%		0	%		—

	GEORGIA			1,916,000					90	%		15	%		4,091

	The Avenue Murfreesboro	Nashville		751,000		50.00	%		88	%		4	%		47,793
	Mt. Juliet Village (1)	Nashville		91,000		50.50	%		80	%		1	%		3,106
	The Shops of Lee Village (1)	Nashville		74,000		50.50	%		87	%		1	%		2,803
	Creek Plantation Village (1)	Chattanooga		78,000		50.50	%		93	%		0	%		3,084

	TENNESSEE			994,000					87	%		6	%		56,786

	Tiffany Springs MarketCenter	Kansas City		238,000		88.50	%		87	%		3	%		—

	MISSOURI			238,000					87	%		3	%		—

	Highland City Town Center (1)	Lakeland		96,000		50.50	%		87	%		1	%		5,312
	The Avenue Viera	Viera		332,000		11.50	%		97	%		1	%		—
	Mahan Village (2)	Tallahassee		147,000		100.00	%		87	%		0	%		11,633
	Viera MarketCenter	Viera		178,000		11.50	%		96	%		0	%		—

	FLORIDA			753,000					89	%		2	%		16,945

	Greenbrier MarketCenter	Chesapeake		376,000		10.32	%		100	%		0	%		—

	VIRGINIA			376,000					100	%		0	%		—

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

	CALIFORNIA			157,000					100	%		0	%		—
	TOTAL RETAIL PROPERTIES			4,434,000					89	%		26	%		77,822



	TOTAL PORTFOLIO			12,678,000					86	%		100	%		565,387

(1)	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.

(2)	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.

(3)	Calculation is based on amounts for the three months ended September 30, 2012.

(4)	Property was sold on October 4, 2012.

(5)	The Company’s partner in this venture notified the Company of its intent to exercise its option to purchase the Company’s interest in this property. The Company expects this transaction to close in the fourth quarter.

(6)

The Company also owns 75% of Emory Point (Phase 1) an 80,000 square foot rental center which is 78% leased and 443 apartment units which are 22% leased as of September 30, 2012. This property is not shown on this report due to the fact the retail portion was not operational as of September 30, 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	3Q11			2Q 12			3Q12			3Q 11 (1)			2Q 12 (1)			3Q 12 (1)
I.	OFFICE PROPERTIES
	Terminus 100		97	%		96	%		96	%		97	%		96	%		94	%
	191 Peachtree Tower		80	%		85	%		87	%		79	%		78	%		82	%
	The American Cancer Society Center		91	%		84	%		83	%		91	%		83	%		84	%
	Meridian Mark Plaza		97	%		98	%		98	%		97	%		97	%		97	%
	Emory University Hospital Midtown Medical Office Tower		100	%		98	%		99	%		100	%		95	%		96	%
	555 North Point Center East		98	%		94	%		94	%		98	%		66	%		64	%
	333 North Point Center East		98	%		98	%		98	%		98	%		98	%		98	%
	200 North Point Center East		88	%		88	%		100	%		96	%		88	%		87	%
	100 North Point Center East		89	%		84	%		84	%		93	%		83	%		83	%
	Terminus 200		87	%		88	%		88	%		45	%		87	%		88	%
	Cosmopolitan Center		94	%		94	%		94	%		89	%		94	%		94	%

	GEORGIA – Company Share (2)		89	%		89	%		89	%		88	%		85	%		86	%

	Palisades West		99	%		99	%		100	%		97	%		99	%		99	%
	The Points at Waterview		84	%		90	%		90	%		84	%		90	%		90	%

	TEXAS – Company Share (2)		91	%		94	%		95	%		90	%		94	%		94	%

	Lakeshore Park Plaza		95	%		94	%		97	%		90	%		95	%		96	%
	600 University Park Place		89	%		95	%		95	%		80	%		93	%		94	%

	ALABAMA – Company Share (2)		93	%		94	%		96	%		86	%		94	%		95	%

	Gateway Village		100	%		100	%		100	%		100	%		100	%		100	%
	Presbyterian Medical Plaza		84	%		57	%		59	%		78	%		80	%		60	%

	NORTH CAROLINA – Company Share (2)		100	%		99	%		99	%		100	%		100	%		99	%

	TOTAL OFFICE PROPERTIES – Company Share (2)		91	%		91	%		91	%		89	%		88	%		89	%


II.	RETAIL PROPERTIES
	The Avenue Forsyth		91	%		90	%		93	%		72	%		89	%		91	%
	The Avenue Webb Gin		91	%		81	%		83	%		89	%		82	%		81	%
	The Avenue West Cobb		97	%		96	%		95	%		97	%		95	%		96	%
	North Point MarketCenter		100	%		100	%		100	%		91	%		98	%		100	%
	The Avenue East Cobb		85	%		87	%		86	%		89	%		86	%		86	%
	The Avenue Peachtree City		93	%		90	%		94	%		91	%		88	%		89	%

	GEORGIA – Company Share (2)		91	%		87	%		90	%		80	%		87	%		88	%

	The Avenue Murfreesboro		87	%		87	%		88	%		86	%		87	%		87	%
	Mt. Juliet Village		80	%		80	%		80	%		77	%		80	%		80	%
	The Shops of Lee Village		81	%		87	%		87	%		79	%		79	%		83	%
	Creek Plantation Village		93	%		93	%		93	%		91	%		93	%		93	%

	TENNESSEE – Company Share (2)		86	%		87	%		87	%		85	%		86	%		87	%

	Tiffany Springs MarketCenter		83	%		85	%		87	%		83	%		83	%		84	%

	MISSOURI – Company Share (2)		83	%		85	%		87	%		83	%		83	%		84	%

	Highland City Town Center		87	%		87	%		87	%		87	%		87	%		87	%
	The Avenue Viera		96	%		95	%		97	%		96	%		94	%		95	%
	Viera MarketCenter		99	%		94	%		96	%		96	%		94	%		95	%

	FLORIDA – Company Share (2)		93	%		91	%		92	%		92	%		91	%		91	%

	Greenbrier MarketCenter		100	%		100	%		100	%		100	%		100	%		100	%

	VIRGINIA – Company Share (2)		100	%		100	%		100	%		100	%		100	%		100	%
	Los Altos MarketCenter		100	%		99	%		100	%		87	%		79	%		99	%
	CALIFORNIA - Company Share (2)		100	%		99	%		100	%		87	%		79	%		99	%

	TOTAL RETAIL PROPERTIES – Company Share (2)		89	%		88	%		89	%		83	%		87	%		88	%



	TOTAL PORTFOLIO – Company Share (2)		90	%		90	%		91	%		88	%		88	%		88	%

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

(2)	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						Q3 ‘12 vs.			Q3 ‘12 vs.
	September 30,		September 30,		June 30,		Q3 ‘11			Q2 ‘12
	2012		2011		2012		% Change			% Change
Rental Property Revenues (2)
Office		29,440		29,573		28,908		-0.5	%		1.8	%
Retail		9,758		9,569		9,873		2.0	%		-1.2	%

Total Rental Property Revenues		39,198		39,142		38,781		0.1	%		1.1	%

Rental Property Operating Expenses (2)
Office		12,107		12,510		11,719		-3.2	%		3.3	%
Retail		2,645		2,880		2,862		-8.2	%		-7.6	%

Total Rental Property Operating Expenses		14,752		15,390		14,581		-4.1	%		1.2	%

Same Property Net Operating Income
Office		17,333		17,063		17,188		1.6	%		0.8	%
Retail		7,113		6,689		7,011		6.4	%		1.5	%

Total Same Property Net Operating Income		24,446		23,752		24,199		2.9	%		1.0	%


	Three Months Ended						Q3 ‘12 vs.			Q3 ‘12 vs.
	September 30,		September 30,		June 30,		Q3 ‘11			Q2 ‘12
	2012		2011		2012		% Change			% Change
Cash Basis Same Property Net Operating Income (3)
Office		16,426		14,557		16,140		12.8	%		1.8	%
Retail		6,850		6,458		6,736		6.1	%		1.7	%

Total Cash Basis Same Property Net Operating Income		23,276		21,016		22,876		10.8	%		1.7	%


	Nine Months Ended
	September 30,
	2012		2011		% Change
Rental Property Revenues (2)
Office		86,960		86,149		0.9	%
Retail		29,344		28,337		3.6	%

Total Rental Property Revenues		116,304		114,486		1.6	%

Rental Property Operating Expenses
Office		34,822		35,699	–	2.5	%
Retail		8,097		8,276	–	2.2	%

Total Rental Property Operating Expenses		42,919		43,975	–	2.4	%

Same Property Net Operating Income
Office		52,138		50,451		3.3	%
Retail		21,247		20,061		5.9	%

Total Same Property Net Operating Income		73,385		70,512		4.1	%


	Nine Months Ended
	September 30,
	2012		2011		% Change
Cash Basis Same Property Net Operating Income (3)
Office		48,867		43,712		11.8	%
Retail		20,476		19,224		6.5	%

Total Cash Basis Same Property Net Operating Income		69,343		62,936		10.2	%

(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 September 30, 2012

OFFICE

As of September 30, 2012, the Company’s office portfolio included 20 commercial office buildings. The weighted average remaining lease term of these office buildings was approximately seven years as of September 30, 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:


																												2021 &
	2012			2013			2014			2015			2016			2017			2018			2019			2020			Thereafter			Total
*Company Share*
Square Feet Expiring		131,430			300,445			405,501			489,826			870,000			658,052			379,081			340,982			278,454			1,957,322			5,811,093
% of Leased Space		2	%		5	%		7	%		8	%		15	%		11	%		7	%		6	%		5	%		34	%		100	%
Annual Contractual Rent ($000’s) (1)	$	1,619		$	6,516		$	8,139		$	10,848		$	16,487		$	15,882		$	10,352		$	8,326		$	7,209		$	48,680		$	134,058
Annual Contractual Rent/Sq. Ft. (1)	$	12.32		$	21.69		$	20.07		$	22.15		$	18.95		$	24.13		$	27.31		$	24.42		$	25.89		$	24.87		$	23.07

RETAIL

As of September 30, 2012, 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 September 30, 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:


																												2021 &
	2012			2013			2014			2015			2016			2017			2018			2019			2020			Thereafter			Total
*Company Share*
Square Feet Expiring (2)		25,777			73,861			93,255			71,045			134,424			149,062			338,235			301,904			63,963			538,910			1,790,436
% of Leased Space		1	%		4	%		5	%		4	%		8	%		8	%		19	%		17	%		4	%		30	%		100	%
Annual Contractual Rent ($000’s) (1)	$	335		$	1,675		$	1,847		$	1,452		$	2,750		$	3,432		$	7,356		$	6,711		$	1,170		$	7,917		$	34,645
Annual Contractual Rent/Sq. Ft. (1)	$	12.99		$	22.67		$	19.81		$	20.43		$	20.46		$	23.02		$	21.75		$	22.23		$	18.29		$	14.69		$	19.35

(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 September 30, 2012


	Tenant (1)	Product Type	Company Share of Annualized Base Rent (2)			Average Remaining Lease Term (Years)
1.	Deloitte & Touche	Office		4.3	%		10.1
2.	American Cancer Society	Office		3.6	%		9.8
3.	Smith, Gambrell & Russell, LLP	Office		3.3	%		8.8
4.	CB Richard Ellis, Inc.	Office		2.9	%		7.6
5.	US South Communications	Office		2.3	%		8.9
6.	Internap Network Services	Office		2.3	%		7.6
7.	Bank of America (3)	Office		2.0	%		4.2
8.	MedAssets Net Revenue Systems, LLC	Office		1.9	%		2.5
9.	Dimensional Fund Advisors	Office		1.9	%		11.0
10.	Morgan Stanley	Office		1.7	%		6.0
11.	tvsdesign	Office		1.6	%		10.8
12.	Emory University	Office		1.4	%		4.4
13.	Bombardier Aerospace Corporation	Office		1.4	%		10.4
14.	Wells Fargo Bank, N.A.	Office		1.3	%		3.5
15.	Northside Hospital	Office		1.2	%		2.2
16.	Georgia Lottery Corporation	Office		1.2	%		10.7
17.	Premiere Global Services, Inc.	Office		1.2	%		5.9
18.	Cumulus Media, Inc.	Office		1.2	%		5.2
19.	Children’s Healthcare of Atlanta	Office		1.1	%		8.0
20.	Academy Sports	Retail		0.9	%		15.1

				38.6	%		7.9

(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 September 30, 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			Estimated Opening (3)		Estimated Stabilization(4)
Emory Point (Phase I)		Atlanta, GA		75	%	$	102,300		$	74,092
Apartments													443		22	%		3Q 12		2Q 14
Retail													80,000		78	%		4Q 12		2Q 13
Mahan Village		Tallahassee, FL		100	%(5)	$	25,800	(6)	$	23,368	(5)
Retail													147,000		87	%		3Q 12		3Q 14

(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 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 September 30, 2012, $33.5 million and $11.6 million were outstanding under the Emory Point and Mahan Village loans, respectively.

(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 the first apartment unit 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.

(5)

Company’s ownership interest is shown at 100% as Mahan Village is owned in a joint venture which is consolidated with the Company. The Company receives a preferred return on cash flows from the venture and receives its contributed capital and an IRR look-back prior to any distributions to the partner related to its capital.

COUSINS PROPERTIES INCORPORATED

INVENTORY OF COMMERCIAL LAND HELD

As of September 30, 2012


		Company’s			Developable
	Metropolitan	Ownership			Land Area
Property Description	Area	Interest			(Acres)
Jefferson Mill Business Park	Atlanta		100.00	%		117
King Mill Distribution Park	Atlanta		100.00	%		86
Wildwood Office Park	Atlanta		50.00	%		36
North Point	Atlanta		100.00	%		38
Wildwood Office Park	Atlanta		100.00	%		23
The Avenue Forsyth-Adjacent Land (1)	Atlanta		100.00	%		11
The Avenue Forsyth-Outparcels (2) (4)	Atlanta		100.00	%		6
Terminus	Atlanta		100.00	%		4
615 Peachtree Street (5)	Atlanta		100.00	%		2
The Avenue Webb Gin -Outparcels (2) (4)	Atlanta		100.00	%		2
549 / 555 / 557 Peachtree Street	Atlanta		100.00	%		1

Georgia						326

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 HELD						470

COMPANY’S SHARE OF TOTAL						419

COST BASIS OF COMMERCIAL LAND HELD					$	89,455

COMPANY’S SHARE OF COST BASIS OF COMMERCIAL LAND HELD (2)					$	63,362

(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, but the equity ownership and the allocation of the results of operations and/or gain on sale most likely will be disproportionate.

(4)	This land is included in a contract to sell the related shopping center.

(5)	Property under contract to sell; expected closing in fourth quarter of 2012.

COUSINS PROPERTIES INCORPORATED

INVENTORY OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS

As of September 30, 2012


		Company’s			Lots						Tracts (2)
		Ownership			Estimated		Total		Remaining		Sold since
Description	Metropolitan Area	Interest			Lot Capacity (1)		Sold		to be Sold		Inception		Remaining
Callaway Gardens (3)	Atlanta		100.00	%		559		31		528		—		—
The Lakes at Cedar Grove	Atlanta		100.00	%		774		774		—		—		25
Blalock Lakes	Atlanta		100.00	%		154		22		132		—		1,205
Longleaf at Callaway	Atlanta		100.00	%		138		126		12		—		—
River’s Call	Atlanta		100.00	%		107		103		4		—		—
Paulding County	Atlanta		50.00	%		—		—		—		918		5,577

Georgia						1,732		1,056		676		918		6,807

Padre Island	Corpus Christi		50.00	%		—		—		—		—		15

Texas						—		—		—		—		15

TOTAL LOTS AND TRACTS IN RESIDENTIAL PROJECTS						1,732		1,056		676		918		6,822

COMPANY’S SHARE OF TOTAL						1,732		1,056		676		459		4,026

COST BASIS OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS													$	27,508

COMPANY’S SHARE OF COST BASIS OF LOTS AND TRACTS IN RESIDENTIAL PROJECTS													$	21,409

(1)	This estimate represents management’s current projection of the total lot capacity for the related residential project, which includes lots sold since inception, current lot inventory and projected future development capacity.

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

(3)	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.

COUSINS PROPERTIES INCORPORATED

DEBT OUTSTANDING

As of September 30, 2012

($ in thousands)


	Company’s			Rate																										Company’s
	Ownership			End of			Maturity		Company’s Share of Debt Maturities and Principal Payments																					Share
Description (Interest Rate Base, if not fixed)	Interest			Quarter			Date		2012			2013			2014			2015			2016			Thereafter			Total			Recourse (1)
CONSOLIDATED DEBT

Floating Rate Debt
Mahan Village (LIBOR + 1.65%; $15mm facility)		100.00	%(3)		1.86	%		9/12/2014		—			—			11,633			—			—			—			11,633			2,908
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (2)		100.00	%		1.71	%		2/28/2016		—			—			—			—			93,500			—			93,500			93,500

Total Floating Rate Debt										—			—			11,633			—			93,500			—			105,133			96,408


Fixed Rate Debt
Callaway Gardens		100.00	%		4.13	%		11/18/2013		—			170			—			—			—			—			170			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016		124			512			541			573			14,025			—			15,775			—
The American Cancer Society Center (4)		100.00	%		6.45	%		9/1/2017		372			1,528			1,632			1,741			1,834			127,508			134,615			—
191 Peachtree Tower		100.00	%		3.35	%		10/1/2018		—			—			—			—			1,305			98,695			100,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020		91			381			405			430			456			24,523			26,286			—
Terminus 100		100.00	%		5.25	%		1/1/2023		528			2,182			2,300			2,424			2,554			126,663			136,651			—

Total Fixed Rate Debt										1,115			4,773			4,878			5,168			20,174			377,389			413,497			—


TOTAL CONSOLIDATED DEBT										1,115			4,773			16,511			5,168			113,674			377,389			518,630			96,408


UNCONSOLIDATED DEBT

Floating Rate Debt
The Avenue Murfreesboro (LIBOR + 3.0%; $113.2mm facility)		50.00	%		3.21	%		7/20/2013		—			47,793			—			—			—			—			47,793			26,220
Terminus 200 (LIBOR + 2.5%; $92mm facility)		20.00	%		2.71	%		12/31/2013		—			14,823			—			—			—			—			14,823			—
Emory Point (LIBOR + 1.85%, $61.1mm facility)		75.00	%		2.06	%		6/28/2014		—			—			25,144			—			—			—			25,144			11,456
Highland City Town Center (LIBOR + 2.65%)		50.50	%(3)		2.86	%		1/1/2016		26			109			116			123			4,938			—			5,312			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(3)		2.86	%		1/1/2016		15			64			67			71			2,867			—			3,084			—
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										41			62,886			25,438			312			13,388			—			102,065			40,602

Fixed Rate Debt
Emory University Hospital Midtown Medical Office Tower		50.00	%		5.90	%		6/1/2013		145			23,248			—			—			—			—			23,393			—
Gateway Village (5)		50.00	%		6.41	%		12/1/2016		1,901			7,917			8,439			8,997			8,768			—			36,022			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017		18			74			78			81			85			3,755			4,091			—

Total Fixed Rate Debt										2,064			31,239			8,517			9,078			8,853			3,755			63,506			—

TOTAL UNCONSOLIDATED DEBT									$	2,105		$	94,125		$	33,955		$	9,390		$	22,241		$	3,755		$	165,571		$	40,602

TOTAL DEBT									$	3,220		$	98,898		$	50,466		$	14,558		$	135,915		$	381,144		$	684,201		$	137,010

TOTAL MATURITIES (6)									$	—		$	86,034		$	36,776		$	—		$	120,913		$	359,104		$	602,828

% OF MATURITIES										0	%		14	%		6	%		0	%		20	%		60	%		100	%


	Floating and Fixed Rate Debt Analysis
	Total Debt ($)		Total Debt (%)			Weighted Average Interest Rate			Weighted Average Maturity (Yrs.)
	Total Debt ($)		Total Debt (%)			Weighted Average Interest Rate			Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	207,198		30	%		2.26	%		2.4
Fixed Rate Debt		477,003		70	%		5.36	%		6.5

Total Debt	$	684,201		100	%		4.42	%		5.3

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

(2)	Total borrowing capacity of the Credit Facility at September 30, 2012 was $350.0 million based on certain covenant calculations. The spread over LIBOR at September 30, 2012 was 1.50% based on covenant calculations.

(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)	Gateway Village debt is non-recourse to the Company and the Company receives an 11.46% current return on its $10.4 million investment in Gateway Village. Upon liquidation of the venture, the Company may receive up to a 17% internal rate of return on its investment.

(6)	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 September 30, 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.

Palisades West LLC	Palisades West	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture. Net income includes non-cash deferred income of $443,000 per quarter.

CP Venture Two LLC	Presbyterian Medical Plaza, 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	The Avenue Forsyth, 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 $1.5 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 YTD
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			9,150
SECOND GENERATION BUILDING IMPROVEMENTS		624			25			24			35			380			464			155			730			137			1,021

		5,987			1,921			6,381			5,856			2,908			17,067			2,087			3,122			4,962			10,171

RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,613			51			44			372			1,607			2,074			246			64			116			425

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			10,597

NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		55,763			13,946			14,222			14,346			15,560			58,074			16,676			16,618			17,246			50,540
RETAIL CONSOLIDATED PROPERTIES		3,311			856			872			900			876			3,504			897			868			946			2,711
OTHER RENTAL OPERATIONS – CONSOLIDATED		96			1			—			—			—			1			—			—			—			—

NET OPERATING INCOME – CONSOLIDATED		59,170			14,803			15,094			15,247			16,437			61,581			17,573			17,486			18,192			53,251

RENTAL PROPERTY REVENUES		102,636			25,436			26,344			27,022			27,716			106,518			29,803			30,451			32,592			92,846
RENTAL PROPERTY OPERATING EXPENSES		(43,466	)		(10,633	)		(11,250	)		(11,775	)		(11,279	)		(44,937	)		(12,230	)		(12,965	)		(14,400	)		(39,595	)

NET OPERATING INCOME – CONSOLIDATED		59,170			14,803			15,094			15,247			16,437			61,581			17,573			17,486			18,192			53,251

INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		45,692			10,857			10,344			10,519			8,450			40,170			7,689			6,224			5,055			18,968
RENTAL PROPERTY OPERATING EXPENSES		(16,799	)		(3,624	)		(4,222	)		(4,391	)		(3,218	)		(15,455	)		(2,274	)		(2,219	)		(1,508	)		(6,001	)

NET OPERATING INCOME		28,893			7,233			6,122			6,128			5,232			24,715			5,415			4,005			3,547			12,967

INTEREST AND OTHER INCOME (EXPENSE)		80			8			72			(16	)		52			116			175			(1	)		259			433
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(5	)		—			—			—			—			—			—			—			—			—

FFO FROM DISCONTINUED OPERATING PROPERTIES		28,968			7,241			6,194			6,112			5,284			24,831			5,590			4,004			3,806			13,400

THIRD PARTY MANAGEMENT AND LEASING REVENUES		18,977			4,088			4,605			5,398			5,268			19,359			4,711			6,029			4,789			15,529
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(17,393	)		(4,093	)		(4,080	)		(4,241	)		(4,171	)		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(13,167	)

FFO FROM THIRD PARTY MANAGEMENT AND LEASING		1,584			(5	)		525			1,157			1,097			2,774			411			1,422			529			2,362

FFO FROM DISCONTINUED OPERATIONS		30,552			7,236			6,719			7,269			6,381			27,605			6,001			5,426			4,335			15,762

DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(22,937	)		(5,067	)		(5,004	)		(4,650	)		(4,428	)		(19,149	)		(3,660	)		(2,387	)		(2,575	)		(8,622	)
IMPAIRMENT LOSSES		—			—			—			—			—			—			—			(12,233	)		—			(12,233	)


INCOME FROM DISCONTINUED OPERATIONS		7,615			2,169			1,715			2,619			1,953			8,456			2,341			3,039			1,760			(5,093	)

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 YTD
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		2,216
OUTPARCEL SALES		13,429			—			—		—			—			—			—			—			—		—

TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		15,943			165			80		165			2,605			3,015			949			535			732		2,216

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		1,333
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		1,333

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		853

SUMMARY – CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		574			46			4		7			17			74			385			119			378		882
OUTPARCEL SALES LESS COST OF SALES		4,670			50			—		—			—			50			—			—			—		—
TRACT SALES LESS COST OF SALES		1,697			—			—		—			3,258			3,258			—			(30	)		—		(30	)

TOTAL CONSOLIDATED SALES LESS COST OF SALES		6,941			96			4		7			3,275			3,382			385			89			378		852

OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES – CONSOLIDATED:
OTHER SALES		34,442			4,657			7		—			—			4,664			—			174			—		174
OTHER COST OF SALES		(27,017	)		(2,500	)		13		—			—			(2,487	)		—			(119	)		—		(119	)

OTHER SALES LESS COST OF SALES – CONSOLIDATED		7,425			2,157			20		—			—			2,177			—			55			—		55

UNCONSOLIDATED:
OTHER SALES – UNCONSOLIDATED:
OTHER SALES		389			—			—		—			—			—			—			—			—		—
OTHER COST OF SALES		(266	)		(5	)		—		—			—			(5	)		—			—			—		—
OTHER, NET		350			22			33		(2	)		25			77			(1	)		(2	)		—		(3	)

OTHER SALES LESS COST OF SALES – SHARE OF UNCONSOLIDATED		473			17			33		(2	)		25			72			(1	)		(2	)		—		(3	)

TOTAL OTHER SALES FFO		7,898			2,174			53		(2	)		25			2,249			(1	)		53			—		52

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			89			378		852

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 YTD
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			10,143
RETAIL PROPERTIES		7,937			2,695			2,596			2,647			2,728			10,666			2,608			2,666			2,671			7,945

NET OPERATING INCOME		20,179			6,052			5,918			6,053			6,235			24,258			6,269			5,937			5,882			18,088
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	)		—			(3	)
TERMINATION FEES		48			58			—			—			15			73			42			18			—			60
INTEREST EXPENSE		(4,252	)		(1,192	)		(1,147	)		(1,212	)		(1,180	)		(4,731	)		(1,179	)		(1,062	)		(966	)		(3,207	)
OTHER EXPENSE		913			43			—			(413	)		(97	)		(467	)		(279	)		(138	)		(167	)		(584	)
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			14,339
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		—			—			—			—			—			—			—			7,509			—			7,509
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(9,661	)		(2,678	)		(2,658	)		(2,440	)		(2,561	)		(10,337	)		(2,661	)		(2,495	)		(2,475	)		(7,631	)

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			14,217

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			7.94
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			104,136

COMMON STOCK CAPITALIZATION		862,289			865,319			885,718			606,727			664,730			664,730			789,374			807,666			826,840			826,840

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
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

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

DEBT		509,509			496,823			498,034			462,135			539,442			539,442			529,168			461,021			518,630			518,630
SHARE OF UNCONSOLIDATED DEBT		172,325			166,726			163,931			162,022			162,127			162,127			164,217			156,364			165,571			165,571

DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			684,201
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			1,680,643

LEVERAGE RATIOS
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			684,201
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			1,680,643
DEBT (2) / TOTAL MARKET CAPITALIZATION		40	%		39	%		39	%		45	%		46	%		46	%		42	%		39	%		41	%		41	%

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			1,199,101
ACCUMULATED DEPRECIATION-CONSOLIDATED		274,925			286,547			298,085			286,399			289,473			289,473			302,782			281,739			294,710			294,710
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2)		485,993			485,029			499,381			507,201			516,686			516,686			467,303			454,388			461,500			461,500
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		(167,108	)		(165,119	)		(179,149	)		(181,947	)		(160,587	)		(160,587	)		(141,180	)		(140,303	)		(139,782	)		(139,782	)

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			1,815,529
DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			684,201
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			1,815,529
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)		35	%		34	%		34	%		33	%		37	%		37	%		38	%		36	%		38	%		38	%

DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			684,201
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

DEBT (2) + PREFERRED		851,436			833,151			831,567			793,759			871,171			871,171			862,987			786,987			853,803			853,803
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			1,680,643
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION		50	%		49	%		48	%		57	%		57	%		57	%		52	%		49	%		51	%		51	%

DEBT (2) + PREFERRED		851,436			833,151			831,567			793,759			871,171			871,171			862,987			786,987			853,803			853,803
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			1,815,529
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)		43	%		43	%		43	%		42	%		46	%		46	%		47	%		45	%		47	%		47	%

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 YTD
EBITDA (2)
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			21,143
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		1,911			568			377			393			370			1,708			369			228			261			858
INCOME TAX PROVISION (BENEFIT)		(1,079	)		(64	)		27			(180	)		31			(186	)		27			33			60			120
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	)		(7,384	)
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			9,680

EBITDA (2)		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			73,958

COVERAGE RATIOS (2)
EBITDA		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			73,958
INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			21,143
INTEREST COVERAGE RATIO (2)		2.53			2.76			2.74			3.28			3.65			3.08			3.31			3.40			3.81			3.50

INTEREST EXPENSE		41,432			8,736			8,505			7,813			7,461			32,515			7,447			6,937			6,759			21,143
SCHEDULED PRINCIPAL PAYMENTS		4,399			1,755			1,894			1,650			1,980			7,279			2,123			2,045			1,755			5,923
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			3,226			9,680

FIXED CHARGES		58,738			13,718			13,626			12,689			12,668			52,701			12,797			12,209			11,740			36,746
EBITDA		104,811			24,097			23,282			25,635			27,200			100,214			24,652			23,577			25,729			73,958
FIXED CHARGES COVERAGE RATIO (2)		1.78			1.76			1.71			2.02			2.15			1.90			1.93			1.93			2.19			2.01

DEBT (2)		681,834			663,549			661,965			624,157			701,569			701,569			693,385			617,385			684,201			684,201
ANNUALIZED EBITDA (3)		111,284			96,388			93,128			102,540			108,800			108,800			98,608			94,308			102,916			102,916
DEBT (2) / ANNUALIZED EBITDA (3)		6.13			6.88			7.11			6.09			6.45			6.45			7.03			6.55			6.65			6.65

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH		12,176			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			14,063
COMMON STOCK		24,282			—			—			—			—			—			—			—			—			—

COMMON DIVIDENDS		36,458			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			14,063
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
FFO PAYOUT RATIO		111	%		57	%		43	%		33	%		-4	%		-24	%		35	%		36	%		18	%		27	%

FFO BEFORE CERTAIN CHARGES
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
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	)		(7,384	)
PARTICIPATION INTEREST INCOME		—			—			—			—			—			—			—			—			(3,366	)		(3,366	)
SEPARATION CHARGES		1,045			101			77			15			4			197			213			79			574			866

FFO BEFORE CERTAIN CHARGES		50,685			11,731			11,223			14,398			16,115			53,467			12,610			13,231			15,997			41,838
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		72	%		40	%		42	%		32	%		29	%		35	%		37	%		35	%		29	%		34	%

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 YTD

FAD (2)
FFO		32,781			8,122			10,896			14,309			(110,202	)		(76,875	)		13,488			13,152			25,685			52,325
FAS 13		(7,936	)		(2,637	)		(2,885	)		(3,095	)		(2,459	)		(11,076	)		(2,686	)		(2,152	)		(1,823	)		(6,661	)
ABOVE AND BELOW MARKET RENTS		(90	)		(23	)		(15	)		(15	)		27			(26	)		108			87			124			319
SECOND GENERATION CAPEX		(8,600	)		(1,972	)		(6,425	)		(6,228	)		(4,515	)		(19,140	)		(2,333	)		(3,186	)		(5,077	)		(10,597	)

FAD (2)		16,154			3,490			1,571			4,970			(117,149	)		(107,117	)		8,577			7,901			18,909			35,386
COMMON DIVIDENDS		36,458			4,653			4,663			4,667			4,667			18,651			4,687			4,686			4,690			14,063
FAD PAYOUT RATIO (2)		226	%		133	%		297	%		94	%		-4	%		-17	%		55	%		59	%		25	%		40	%

FAD BEFORE CERTAIN CHARGES
FAD (2)		16,154			3,490			1,571			4,970			(117,149	)		(107,117	)		8,577			7,901			18,909			35,386
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	)		(7,384	)
PARTICIPATION INTEREST INCOME		—			—			—			—			—			—			—			—			(3,366	)		(3,366	)
SEPARATION CHARGES		1,045			101			77			15			4			197			213			79			574			866

FAD BEFORE CERTAIN CHARGES		34,058			7,099			1,898			5,059			9,168			23,225			7,699			7,980			9,221			24,899
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		107	%		66	%		246	%		92	%		51	%		80	%		61	%		59	%		51	%		56	%

OPERATIONS RATIOS
REVENUES		155,155			34,131			30,421			31,543			33,874			129,969			34,882			34,025			43,728			112,635
REVENUES FROM DISCONTINUED OPERATIONS		78,242			14,970			15,038			15,918			13,782			59,708			12,592			12,266			10,111			34,969

REVENUES INCLUDING DISCONTINUED OPERATIONS		233,397			49,101			45,459			47,461			47,656			189,677			47,474			46,291			53,839			147,604

GENERAL AND ADMINISTRATIVE EXPENSES		28,517			7,400			6,133			4,295			6,338			24,166			6,623			5,645			5,255			17,523
REVENUES INCLUDING DISCONTINUED OPERATIONS		233,397			49,101			45,459			47,461			47,656			189,677			47,474			46,291			53,839			147,604
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	%		11.9	%

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			1,815,529
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	%		1.2	%

(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								Nine Months Ended
	September 30,			September 30,		June 30,			September 30,
	2012			2011		2012			2012			2011
Net Operating Income
Same Property		24,446			23,752		24,199			73,385			70,512
Non-Same Property		3,174			3,676		3,229			10,920			12,137

Consolidated Property Net Operating Income		27,620			27,428		27,428			84,305			82,650


Less: Non-Cash Items
Straight-line rent		1,826			3,088		2,153			6,658			8,597
Other		(29	)		116		(3	)		(24	)		406

Non-Cash Items		1,797			3,204		2,151			6,634			9,003

Cash Basis Property Net Operating Income		25,823			24,224		25,278			77,671			73,647


Net Operating Income (1)
Operating Properties		18,192			15,247		17,485			53,251			45,144
Discontinued Operations		3,547			6,128		4,006			12,967			19,483
Share of Unconsolidated Joint Ventures		5,881			6,053		5,937			18,087			18,023

Total Net Operating Income		27,620			27,428		27,428			84,305			82,650

(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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