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

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8-K - FORM 8-K - COUSINS PROPERTIES INC	d532421d8k.htm

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED

QUARTERLY INFORMATION PACKAGE

For the Quarter Ended March 31, 2013

TABLE OF CONTENTS


Press Release			1

Consolidated Statements of Operations			4

Funds From Operations			5

Consolidated Balance Sheets			6

Same Property Information			7

Key Performance Indicators			8

Funds From Operations – Summary			9

Funds From Operations – Supplemental Detail			10

Portfolio Listing			13

Same Property Performance – Leasing and Occupancy			14

Same Property Performance – Net Operating Income			15

Square Feet Expiring			16

Top 20 Tenants			17

Development Pipeline			18

Inventory of Land Held			19

Debt Outstanding			20

Joint Venture Information			21

Calculations and Reconciliations of Non-GAAP Financial Measures			22

Discussion of Non-GAAP Financial Measures			28

Certain matters discussed in this news release are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risk. These include, but are not limited to, the availability and terms of capital and financing; the ability to refinance indebtedness as it matures; failure of purchase, sale or other contracts to ultimately close; the availability of buyers and adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial markets in particular; market conditions and changes to the Company’s strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effects of the sale of the Company’s third party management business; leasing risks, including the ability to obtain new tenants or renew expiring tenants on favorable terms, and the ability to lease newly developed, recently acquired or current vacant space; financial condition of existing tenants; volatility in interest rates and insurance rates; the availability of sufficient investment opportunities; competition from other developers or investors; the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk); loss of key personnel; potential liability for uninsured losses, condemnation or environmental issues; potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; and any failure to continue to qualify for taxation as a real estate investment trust and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including those described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statement are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise, except as required under U.S. federal securities laws.

LOGO

News Release

CONTACT:


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

COUSINS REPORTS RESULTS FOR THE FIRST QUARTER OF 2013

Highlights

•

Funds From Operations for the quarter was $0.11 per share.

•

Same property net operating income for the quarter increased 5.0% over the prior year.

•

Purchased a 100% ownership interest in Post Oak Central.

•

Completed transactions at Terminus 100 and 200 that resulted in a 50% ownership interest in both buildings.

•

Subsequent to quarter end, issued 16.5 million shares of common stock, acquired 816 Congress and notified the holders of the Company’s Series A Redeemable Cumulative Preferred Stock that all shares will be redeemed.

ATLANTA (May 8, 2013) – Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2013.

“It was another solid quarter for Cousins, with a series of positive transactions, a strong operating performance and an uptick in leasing activity,” said Larry Gellerstedt, President and Chief Executive Officer of Cousins. “The execution of our stock offering and another quality acquisition in Texas, subsequent to the quarter, represent additional steps forward as we continue to execute the strategy. It’s a very exciting time to be at Cousins.”

Portfolio Activity

•

Leased or renewed 527,000 square feet of office and retail space.

•

The office and retail portfolios finished the quarter 90% occupied on a same property basis, up from 87% in the prior year.

Transaction Activity

•

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

•

Formed a 50/50 joint venture with institutional investors advised by J.P. Morgan Asset Management for both Terminus 100 and Terminus 200. Terminus 100 was attributed a value of $209.2 million and Terminus 200 was attributed a value of $164.0 million.

•

Purchased a 100% interest in Post Oak Central, a Class-A office complex in the Galleria submarket of Houston, from an affiliate of J.P. Morgan Asset Management for $230.9 million, after adjusting for rent credits.

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

CUZ Reports First Quarter Results

Page 2

May 8, 2013

Transactions Subsequent to Quarter End

•

Issued 16.5 million shares of common stock at $10.45 per share, generating net proceeds of $165.1 million.

•

Acquired 816 Congress, a Class-A office tower in the central business district of Austin, Texas, for $102.4 million, after adjusting for rent credits.

•

Notified holders of the Company’s Series A Cumulative Redeemable Preferred Stock that all outstanding shares will be redeemed on May 13, 2013, for approximately $75 million.

Financial Results

FFO was $11.5 million, or $0.11 per share, for the first quarter of 2013 compared with $13.5 million, or $0.13 per share, for the first quarter of 2012.

Net income available to common stockholders was $53.2 million, or $0.51 per share, for the first quarter of 2013 compared with net loss available of ($13.1) million, or ($0.13) per share, for the first quarter of 2012.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, May 9, 2013, to discuss the results of the quarter ended March 31, 2013. The number to call for this interactive teleconference is (212) 271-4657.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21653403. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q1 2013 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 more than 20 million square feet of office space and 20 million square feet of retail space. Cousins has built and maintained an industry-wide reputation for innovative and sustainable developments, premium management services and top quality leadership. The Company creates and maintains value in real estate assets for the benefit of shareholders, and partners. Cousins Properties is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ.

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

-MORE-

CUZ Reports First Quarter Results

Page 3

May 8, 2013

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(quarter is unaudited; in thousands, except per share amounts)


	Three Months Ended March 31,
	2013			2012
REVENUES:
Rental property revenues	$	36,123		$	29,573
Fee income		3,579			2,857
Land sales		963			949
Other		603			1,273

		41,268			34,652


COSTS AND EXPENSES:
Rental property operating expenses		16,297			12,225
Reimbursed expenses		1,910			1,375
General and administrative expenses		6,069			6,625
Land cost of sales		963			564
Interest expense		4,935			6,268
Depreciation and amortization		12,299			10,515
Separation expenses		—			213
Other		728			680

		43,201			38,465


LOSS ON EXTINGUISHMENT OF DEBT		—			(94	)


LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		(1,933	)		(3,907	)

PROVISION FOR INCOME TAXES FROM OPERATIONS		(1	)		(27	)

INCOME FROM UNCONSOLIDATED JOINT VENTURES		1,652			2,186

LOSS FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		(282	)		(1,748	)

GAIN ON SALE OF INVESTMENT PROPERTIES		57,177			57


INCOME (LOSS) FROM CONTINUING OPERATIONS		56,895			(1,691	)

INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Loss from discontinued operations		(86	)		(9,749	)
Gain on sale of discontinued operations		95			86

		9			(9,663	)

NET INCOME (LOSS)		56,904			(11,354	)
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(507	)		1,469

NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST		56,397			(9,885	)

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


NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$	53,170		$	(13,112	)


PER COMMON SHARE INFORMATION - BASIC AND DILUTED:
Income (loss) from continuing operations attributable to controlling interest	$	0.51		$	(0.04	)
Income (loss) from discontinued operations		0.00		$	(0.09	)

Net income (loss) available to common stockholders	$	0.51		$	(0.13	)


WEIGHTED AVERAGE SHARES - BASIC		104,119			104,000

WEIGHTED AVERAGE SHARES - DILUTED		104,252			104,000

DIVIDENDS PER COMMON SHARE	$	0.045		$	0.045

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012

(Unaudited, in thousands, except per share amounts)


	Three Months Ended March 31,
	2013			2012
Net Income (Loss) Available to Common Stockholders	$	53,170		$	(13,112	)
Depreciation and amortization of real estate assets:
Consolidated properties		12,116			10,151
Discontinued properties		—			3,741
Share of unconsolidated joint ventures		3,204			2,661
Impairment loss on depreciable investment property net of amounts attributable to noncontrolling interests		—			10,190
Gain on sale of depreciated properties:
Consolidated		(56,934	)		(57	)
Discontinued properties		(95	)		(86	)


Funds From Operations Available to Common Stockholders	$	11,461		$	13,488


Per Common Share - Basic and Diluted:
Net Income (Loss) Available	$	.51		$	(.13	)

Funds From Operations	$	.11		$	.13

Weighted Average Shares-Basic		104,119			104,000

Weighted Average Shares-Diluted		104,252			104,000

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

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

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)


	March 31, 2013			December 31, 2012
	(unaudited)
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $218,123 and $255,128 in 2013 and 2012, respectively	$	762,493		$	669,652
Projects under development, net of accumulated depreciation of $359 and $183 in 2013 and 2012, respectively		25,629			25,209
Land		41,019			42,187
Other		—			151

Total properties		829,141			737,199

OPERATING PROPERTIES AND RELATED ASSETS HELD FOR SALE, net of accumulated depreciation of $2,947 in 2013 and 2012		1,866			1,866

CASH AND CASH EQUIVALENTS		6,042			176,892
RESTRICTED CASH		3,616			2,852
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $1,734 and $1,743 in 2013 and 2012, respectively		7,967			9,972
DEFERRED RENTS RECEIVABLE		33,856			39,378
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		128,541			97,868
OTHER ASSETS		85,415			58,215


TOTAL ASSETS	$	1,096,444		$	1,124,242


LIABILITIES AND EQUITY
NOTES PAYABLE	$	344,832		$	425,410
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		26,936			34,751
DEFERRED INCOME		11,591			11,888
OTHER LIABILITIES		22,446			9,240

TOTAL LIABILITIES		405,805			481,289

STOCKHOLDERS’ INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2013 and 2012		74,827			74,827
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2013 and 2012		94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 107,697,435 and 107,660,080 shares issued in 2013 and 2012, respectively		107,697			107,660
Additional paid-in capital		689,176			690,024
Treasury stock at cost, 3,570,082 shares in 2013 and 2012		(86,840	)		(86,840	)
Distributions in excess of cumulative net income		(211,623	)		(260,104	)

TOTAL STOCKHOLDERS’ INVESTMENT		668,012			620,342

Nonredeemable noncontrolling interests		22,627			22,611

TOTAL EQUITY		690,639			642,953


TOTAL LIABILITIES AND EQUITY	$	1,096,444		$	1,124,242

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012

(Unaudited, in thousands)


	Three Months Ended March 31,
	2013			2012
Net Operating Income - Consolidated Properties
Rental property revenues	$	36,123		$	29,573
Rental property expenses		16,297		$	12,225

Net Operating Income - Consolidated Properties		19,826			17,348

Net Operating Income - Discontinued Operations
Rental property revenues		2			7,919
Rental property expenses		105			2,279

Net Operating Income - Discontinued Operations		(103	)		5,640

Net Operating Income - Unconsolidated Joint Ventures		6,447			6,269

Total Net Operating Income	$	26,170		$	29,257


Net Operating Income:
Same property		18,993			18,081
Non-same property		7,177			11,176

Net Operating Income	$	26,170		$	29,257

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. Same Property Net Operating Income includes those office and retail properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. 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


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
Property Statistics
Number of Operating Properties (1)		35			35			32			34			30			30			31
Rentable Square Feet (in thousands)		12,572			12,573			11,688			12,678			11,827			11,827			13,111

Leverage Ratios (2)
Debt/Total Market Capitalization		46	%		42	%		39	%		41	%		36	%		36	%		32	%
Debt/Total Undepreciated Assets		37	%		38	%		36	%		38	%		35	%		35	%		35	%
Debt + Preferred/Total Market Capitalization		57	%		52	%		49	%		51	%		47	%		47	%		41	%
Debt + Preferred/Total Undepreciated Assets		46	%		47	%		45	%		47	%		45	%		45	%		44	%

Coverage Ratios (2)
Interest Coverage		3.08			3.31			3.40			3.81			3.50			3.50			3.24
Fixed Charges Coverage		1.90			1.93			1.93			2.19			2.03			2.02			1.84
Debt/Annualized EBITDA		6.45			7.03			6.55			6.65			6.07			6.07			7.09

Dividend Ratios (2)
FFO Payout Ratio		-24	%		35	%		36	%		18	%		33	%		28	%		41	%
FFO Before Certain Charges Payout Ratio		35	%		37	%		35	%		29	%		31	%		33	%		41	%
FAD Payout Ratio		-17	%		55	%		59	%		25	%		57	%		43	%		79	%
FAD Before Certain Charges Payout Ratio		80	%		61	%		59	%		51	%		51	%		55	%		79	%

Operations Ratios (2)
General and Administrative Expenses/Revenues Including Discontinued Operations		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%		14.7	%
Annualized General and Administrative Expenses/Total Undepreciated Assets		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%		1.4	%

(1)

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

(2)

See calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATION - SUMMARY (1)

($ in thousands, except per share)


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
NET OPERATING INCOME
OFFICE		75,388			20,598			20,013			20,452			19,844			80,907			21,837
RETAIL		31,583			8,658			7,415			7,168			6,188			29,429			4,290
OTHER		3,583			1			—			—			120			121			43

TOTAL NET OPERATING INCOME		110,554			29,257			27,428			27,620			26,152			110,457			26,170

SALES LESS COST OF SALES
LAND		5,236			385			89			378			4,063			4,915			243
OTHER		2,250			(1	)		53			—			257			309			168

TOTAL SALES LESS COST OF SALES		7,486			384			142			378			4,320			5,224			411

FEE INCOME		13,821			2,856			2,786			7,343			4,812			17,797			3,580
THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74
OTHER INCOME		2,204			1,507			112			3,329			205			5,153			282

TOTAL FEE AND OTHER INCOME		35,384			9,074			8,927			15,461			5,853			39,315			3,936

GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			7,384			75			7,459			—

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)

REIMBURSED EXPENSES		(6,208	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)		(1,910	)

SEPARATION EXPENSES		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)		—

GENERAL AND ADMINISTRATIVE EXPENSES		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)		(6,069	)

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

INTEREST EXPENSE		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)		(6,645	)

IMPAIRMENT LOSSES		(129,134	)		—			—			(488	)		—			(488	)		—

OTHER EXPENSES		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)		(946	)

INCOME TAX (PROVISION) BENEFIT		186			(27	)		(33	)		(60	)		30			(90	)		(1	)

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)		(205	)

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


FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
WEIGHTED AVERAGE SHARES - BASIC		103,651			104,000			104,165			104,193			104,109			104,117			104,119
WEIGHTED AVERAGE SHARES - DILUTED		103,655			104,000			104,165			104,203			104,132			104,125			104,252
FFO PER SHARE - BASIC AND DILUTED		(0.74	)		0.13			0.13			0.25			0.14			0.64			0.11

(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)


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
191 PEACHTREE TOWER		14,044			3,789			3,745			3,899			3,789			15,222			4,064
THE AMERICAN CANCER SOCIETY CENTER		11,571			2,872			2,581			2,744			2,832			11,029			2,881
PROMENADE		693			2,014			2,324			2,124			2,286			8,748			2,485
POST OAK CENTRAL		—			—			—			—			—			—			2,459
TERMINUS 100 (2)		15,537			4,063			4,039			3,922			3,785			15,809			1,627
NORTH POINT CENTER EAST (3)		6,363			1,254			1,268			1,142			1,521			5,185			1,373
2100 ROSS AVENUE		—			—			—			876			635			1,511			1,101
MERIDIAN MARK PLAZA		3,863			1,015			996			1,013			1,009			4,033			1,037
LAKESHORE PARK PLAZA		2,099			559			559			513			535			2,166			592
THE POINTS AT WATERVIEW		1,824			504			557			516			488			2,065			505
600 UNIVERSITY PARK PLACE		1,189			384			354			376			388			1,502			412
OTHER		(6	)		(5	)		(29	)		(3	)		(8	)		(45	)		(7	)

SUBTOTAL - OFFICE CONSOLIDATED		57,177			16,449			16,394			17,122			17,260			67,225			18,529

UNCONSOLIDATED PROPERTIES:
TERMINUS 100 (2)		—			—			—			—			—			—			1,208
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,822			970			920			950			918			3,758			981
TERMINUS 200 (4)		463			358			374			439			374			1,545			898
GATEWAY VILLAGE (5)		1,208			302			302			302			302			1,208			302
OTHER (6)		8,099			2,031			1,675			1,519			1,019			6,244			(16	)

SUBTOTAL - OFFICE UNCONSOLIDATED		13,592			3,661			3,271			3,210			2,613			12,755			3,373

DISCONTINUED OPERATIONS (7)		4,619			488			348			119			(28	)		927			(65	)

TOTAL - OFFICE NET OPERATING INCOME		75,388			20,598			20,013			20,451			19,845			80,907			21,837

RETAIL:
CONSOLIDATED PROPERTIES:
TIFFANY SPRINGS MARKETCENTER		3,507			897			864			889			893			3,543			906
MAHAN VILLAGE		—			—			—			55			259			314			390
OTHER		(3	)		—			4			2			—			6			(2	)

SUBTOTAL - RETAIL CONSOLIDATED		3,504			897			868			946			1,152			3,863			1,294

UNCONSOLIDATED PROPERTIES:
THE AVENUE MURFREESBORO		4,692			1,075			1,148			1,168			1,204			4,595			1,192
CW INVESTMENTS (8)		2,410			610			610			591			587			2,398			580
EMORY POINT		—			—			—			(9	)		19			10			274
NORTH POINT MARKETCENTER		532			144			146			156			160			606			155
GREENBRIER MARKETCENTER		550			152			141			144			146			583			148
THE AVENUE VIERA		519			137			130			136			142			545			148
THE AVENUE EAST COBB		569			122			151			137			137			547			140
THE AVENUE WEST COBB		559			134			133			133			136			536			135
THE AVENUE PEACHTREE CITY		410			112			106			106			103			427			120
LOS ALTOS MARKETCENTER		221			71			53			56			85			265			90
VIERA MARKETCENTER		206			51			49			53			55			208			50
OTHER		(2	)		—			(1	)		—			—			(1	)		(1	)

SUBTOTAL - RETAIL UNCONSOLIDATED		10,666			2,608			2,666			2,671			2,774			10,719			3,031

DISCONTINUED OPERATIONS (9)		17,413			5,153			3,881			3,551			2,262			14,847			(35	)

TOTAL - RETAIL NET OPERATING INCOME		31,583			8,658			7,415			7,168			6,188			29,429			4,290

OTHER:
UNCONSOLIDATED PROPERTIES:
EMORY POINT RESIDENTIAL		—			—			—			—			122			122			44

SUBTOTAL - OTHER UNCONSOLIDATED		—			—			—			—			122			122			44

DISCONTINUED OPERATIONS OTHER (10)		3,582			1			—			—			(2	)		(1	)		(1	)

TOTAL - OTHER NET OPERATING INCOME		3,582			1			—			—			120			121			43

TOTAL NET OPERATING INCOME		110,553			29,257			27,428			27,619			26,153			110,457			26,170

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
SALES LESS COST OF SALES
LAND SALES LESS COST OF SALES -CONSOLIDATED		3,382			385			89			378			4,063			4,915			243
LAND SALES LESS COST OF SALES - UNCONSOLIDATED		1,854			—			—			—			—			—			—

SUBTOTAL - LAND SALES LESS COST OF SALES		5,236			385			89			378			4,063			4,915			243

OTHER - CONSOLIDATED		2,177			—			55			—			226			281			158
OTHER - UNCONSOLIDATED		73			(1	)		(2	)		—			31			28			10

SUBTOTAL - OTHER SALES LESS COST OF SALES		2,250			(1	)		53			—			257			309			168


TOTAL SALES LESS COST OF SALES		7,486			384			142			378			4,320			5,224			411

FEE INCOME
DEVELOPMENT FEES		2,850			525			640			5,278			2,616			9,059			1,335
MANAGEMENT FEES (11)		8,857			2,099			2,051			1,944			2,070			8,164			2,030
LEASING & OTHER FEES		2,114			232			95			121			126			574			215

TOTAL - FEE INCOME		13,821			2,856			2,786			7,343			4,812			17,797			3,580

THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,374			314			272			296			37			919			—
MANAGEMENT FEES (12)		13,062			3,396			3,452			3,553			380			10,781			(3	)
LEASING & OTHER FEES		4,923			1,001			2,305			940			419			4,665			77

TOTAL - THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74

OTHER INCOME
TERMINATION FEES		1,549			43			21			—			64			128			19
TERMINATION FEES - DISCONTINUED OPERATIONS		77			192			13			3,232			75			3,512			—
INTEREST AND OTHER INCOME - CONTINUING OPERATIONS		539			1,289			92			98			72			1,551			267
INTEREST AND OTHER INCOME - DISCONTINUED OPERATIONS		39			(17	)		(14	)		(1	)		(6	)		(38	)		(4	)

TOTAL INTEREST INCOME & OTHER		2,204			1,507			112			3,329			205			5,153			282

TOTAL FEE AND OTHER INCOME		35,384			9,074			8,927			15,461			5,853			39,315			3,936

GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			7,384			75			7,459			—

THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)

REIMBURSED EXPENSES		(6,207	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)		(1,910	)

SEPARATION EXPENSES		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)		—

GENERAL AND ADMINISTRATIVE EXPENSES		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)		(6,069	)

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

INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER		(8,979	)		(2,230	)		(2,223	)		(2,242	)		(2,237	)		(8,932	)		(2,183	)
191 PEACHTREE TOWER		—			(28	)		(891	)		(891	)		(891	)		(2,701	)		(890	)
TERMINUS 100 (2)		(7,328	)		(1,816	)		(1,808	)		(1,802	)		(1,795	)		(7,221	)		(725	)
UNSECURED CREDIT FACILITY		(6,205	)		(1,648	)		(777	)		(725	)		(562	)		(3,712	)		(546	)
MERIDIAN MARK PLAZA		(1,630	)		(404	)		(403	)		(402	)		(400	)		(1,609	)		(399	)
THE POINTS AT WATERVIEW		(958	)		(235	)		(234	)		(232	)		(230	)		(931	)		(228	)
MAHAN VILLAGE		—			—			(20	)		(43	)		(59	)		(122	)		(65	)
NORTH POINT CENTER EAST (3)		(2,130	)		(332	)		(8	)		—			—			(340	)		—
600 UNIVERSITY PARK PLACE		(559	)		—			—			—			—			—			—
LAKESHORE PARK PLAZA		(548	)		—			—			—			—			—			—
OTHER		(47	)		(1	)		—			—			—			(1	)		—
CAPITALIZED		600			426			489			544			177			1,636			101

SUBTOTAL - CONSOLIDATED		(27,784	)		(6,268	)		(5,875	)		(5,793	)		(5,997	)		(23,933	)		(4,935	)

UNCONSOLIDATED DEBT:
TERMINUS 100 (2)		—			—			—			—			—			—			(530	)
THE AVENUE MURFREESBORO		(1,812	)		(444	)		(437	)		(438	)		(430	)		(1,749	)		(431	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,441	)		(355	)		(353	)		(351	)		(349	)		(1,408	)		(347	)
TERMINUS 200 (4)		(393	)		(126	)		(129	)		(129	)		(128	)		(512	)		(199	)
EMORY POINT		—			—			—			—			(59	)		(59	)		(155	)
THE AVENUE EAST COBB		(196	)		(49	)		(48	)		(48	)		(48	)		(193	)		(48	)
TEN PEACHTREE PLACE		(730	)		(180	)		(80	)		—			—			(260	)		—
TEMCO ASSOCIATES		(98	)		(25	)		(15	)		—			—			(40	)		—
CL REALTY		(61	)		—			—			—			—			—			—

SUBTOTAL - UNCONSOLIDATED		(4,731	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)		(1,710	)

TOTAL INTEREST EXPENSE		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)		(6,645	)

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)


	2011			2012 1st			2012 2nd			2012 3rd			2012 14th			2012			2013 1st
IMPAIRMENT LOSSES
IMPAIRMENT LOSS - CONSOLIDATED		(100,131	)		—			—			(488	)		—			(488	)		—
IMPAIRMENT LOSS - UNCONSOLIDATED INVESTMENTS		(29,003	)		—			—			—			—			—			—

TOTAL - IMPAIRMENT LOSSES		(129,134	)		—			—			(488	)		—			(488	)		—

OTHER EXPENSES
NONCONTROLLING INTERESTS		(2,087	)		(574	)		(631	)		(608	)		(604	)		(2,415	)		(507	)
PROPERTY TAXES & OTHER HOLDING COSTS		(2,394	)		(433	)		(320	)		(518	)		(467	)		(1,738	)		(274	)
PREDEVELOPMENT & OTHER		(1,574	)		(187	)		(76	)		(1,397	)		37			(1,623	)		(42	)
ACQUISITION COSTS		(468	)		(78	)		(67	)		(350	)		(299	)		(794	)		(235	)
OTHER - UNCONSOLIDATED		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)		112

TOTAL - OTHER EXPENSES		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)		(946	)

INCOME TAX (PROVISION) BENEFIT		186			(27	)		(33	)		(60	)		30			(90	)		(1	)

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(1,688	)		(364	)		(223	)		(256	)		(232	)		(1,075	)		(183	)
SHARE OF UNCONSOLIDATED JOINT VENTURES		(20	)		(5	)		(5	)		(5	)		—			(15	)		(22	)

TOTAL - NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)		(205	)

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

FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
WEIGHTED AVERAGE SHARES - BASIC		103,651			104,000			104,165			104,193			104,109			104,117			104,119
WEIGHTED AVERAGE SHARES - DILUTED		103,655			104,000			104,165			104,203			104,132			104,125			104,252
FFO PER SHARE - BASIC AND DILUTED		(0.74	)		0.13			0.13			0.25			0.14			0.64			0.11

(1)

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

(2)

In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The Terminus 100 Consolidated line represents the Company’s share for the period prior to the joint venture formation, the Terminus 100 Unconsolidated line represents the Company’s share for the period subsequent to the joint venture formation.

(3)

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

(4)

In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The first quarter 2013 Terminus 200 line includes the Company’s share for both the Company’s 20% share of the previous MSREF/T200 Joint Venture and the Company’s 50% share subsequent to the joint venture formation.

(5)

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

(6)

Other includes sold unconsolidated properties as well as Other Unconsolidated NOI. The sold unconsolidated properties include: Palisades West, Ten Peachtree Place and Presbyterian Medical Plaza. Previous quarters were restated to be consistent with the new presentation.

(7)

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

(8)

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

(9)

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

(10)

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

(11)

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

(12)

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 March 31, 2013


								Company’s Share
	Property Description	Metropolitan Area	Rentable Square Feet		Company’s Ownership Interest			End of Period Leased			Weighted Average Occupancy (1)			% of Total Net Operating Income (2)			Property Level Debt ($000)
I.	OFFICE PROPERTIES
	191 Peachtree Tower	Atlanta		1,225,000		100.00	%		87	%		87	%		15	%		100,000
	Terminus 100	Atlanta		655,000		50.00	%		97	%		95	%		11	%		67,795
	The American Cancer Society Center	Atlanta		996,000		100.00	%		82	%		82	%		11	%		133,840
	Promenade (3)	Atlanta		775,000		100.00	%		78	%		70	%		10	%		—
	North Point Center East (4)	Atlanta		540,000		100.00	%		91	%		90	%		5	%		—
	Meridian Mark Plaza	Atlanta		160,000		100.00	%		98	%		98	%		4	%		26,101
	Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		99	%		98	%		4	%		23,101
	Terminus 200	Atlanta		566,000		50.00	%		88	%		88	%		3	%		41,000
	Inhibitex (6)	Atlanta		51,000		100.00	%		0	%		0	%		0	%		—

	GEORGIA			5,326,000											63	%		391,837

	Post Oak Central	Houston		1,280,000		100.00	%		92	%		92	%		9	%		—
	2100 Ross Avenue	Dallas		844,000		100.00	%		77	%		65	%		4	%		—
	The Points at Waterview	Dallas		203,000		100.00	%		90	%		90	%		2	%		15,526

	TEXAS			2,327,000											15	%		15,526

	Lakeshore Park Plaza (3)	Birmingham		197,000		100.00	%		98	%		98	%		2	%		—
	600 University Park Place (3)	Birmingham		123,000		100.00	%		98	%		98	%		2	%		—

	ALABAMA			320,000											4	%		—

	Gateway Village (5)	Charlotte		1,065,000		50.00	%		100	%		100	%		1	%		32,189

	NORTH CAROLINA			1,065,000											1	%		32,189


	TOTAL OFFICE PROPERTIES			9,038,000											83	%		439,552


II.	RETAIL PROPERTIES
	The Avenue Murfreesboro	Nashville		752,000		50.00	%		88	%		87	%		5	%		46,600
	Mt. Juliet Village (5)	Nashville		91,000		50.50	%		80	%		80	%		1	%		3,096
	The Shops of Lee Village (5)	Nashville		74,000		50.50	%		89	%		87	%		0	%		2,795
	Creek Plantation Village (5)	Chattanooga		78,000		50.50	%		98	%		91	%		0	%		3,053

	TENNESSEE			995,000											6	%		55,544

	Emory Point	Atlanta		80,000		75.00	%		82	%		66	%		1	%		8,168
	North Point MarketCenter	Atlanta		401,000		10.32	%		100	%		100	%		1	%		—
	The Avenue East Cobb	Atlanta		230,000		11.50	%		96	%		86	%		1	%		4,055
	The Avenue West Cobb	Atlanta		256,000		11.50	%		97	%		94	%		0	%		—
	The Avenue Peachtree City	Atlanta		183,000		11.50	%		92	%		90	%		0	%		—

	GEORGIA			1,150,000											3	%		12,223

	Tiffany Springs MarketCenter	Kansas City		238,000		88.50	%		88	%		87	%		4	%		—

	MISSOURI			238,000											4	%		—

	Highland City Town Center (5)	Lakeland		96,000		50.50	%		87	%		87	%		1	%		5,260
	The Avenue Viera	Viera		332,000		11.50	%		95	%		96	%		1	%		—
	Mahan Village (3)	Tallahassee		147,000		100.00	%		91	%		86	%		1	%		14,191
	Viera MarketCenter	Viera		178,000		11.50	%		94	%		94	%		0	%		—

	FLORIDA			753,000											3	%		19,451

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

	VIRGINIA			376,000											1	%		—

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

	CALIFORNIA			157,000											0	%		—


	TOTAL RETAIL PROPERTIES			3,669,000											17	%		87,218



III.	APARTMENTS
	Emory Point	Atlanta		404,000		75.00	%		45	%		32	%		0	%		28,958

	GEORGIA


	TOTAL PORTFOLIO			13,111,000											100	%		555,727

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

(2)	Calculation is based on amounts for the three months ended March 31, 2013.

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

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

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

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

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE

LEASING AND OCCUPANCY


	Property Description	Percent Leased 1Q12			Percent Leased 4Q12			Percent Leased 1Q13			Weighted Average Occupancy 1Q 12 (1)			Weighted Average Occupancy 4Q 12 (1)			Weighted Average Occupancy 1Q 13 (1)

I.	OFFICE PROPERTIES
	Terminus 100		96	%		96	%		97	%		96	%		95	%		95	%
	191 Peachtree Tower		82	%		87	%		87	%		78	%		82	%		87	%
	The American Cancer Society Center		83	%		82	%		82	%		83	%		83	%		82	%
	Meridian Mark Plaza		98	%		98	%		98	%		97	%		98	%		98	%
	Emory University Hospital Midtown Medical Office Tower		99	%		99	%		99	%		99	%		99	%		98	%
	North Point Center East (2)		92	%		91	%		91	%		81	%		92	%		90	%
	Terminus 200		88	%		88	%		88	%		87	%		88	%		88	%

	GEORGIA - Company Share (3)		88	%		89	%		85	%		85	%		87	%		88	%

	The Points at Waterview		90	%		90	%		90	%		89	%		90	%		90	%

	TEXAS - Company Share (3)		90	%		90	%		90	%		89	%		90	%		90	%

	Lakeshore Park Plaza		96	%		98	%		98	%		93	%		96	%		98	%
	600 University Park Place		93	%		98	%		98	%		93	%		94	%		98	%

	ALABAMA - Company Share (3)		95	%		98	%		98	%		93	%		95	%		98	%

	Gateway Village		100	%		100	%		100	%		100	%		100	%		100	%

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


	TOTAL OFFICE PROPERTIES - Company Share (3)		90	%		91	%		90	%		87	%		89	%		90	%


II.	RETAIL PROPERTIES
	The Avenue Murfreesboro		87	%		88	%		88	%		86	%		87	%		87	%
	Mt. Juliet Village		80	%		80	%		80	%		80	%		80	%		80	%
	The Shops of Lee Village		83	%		89	%		89	%		81	%		83	%		87	%
	Creek Plantation Village		93	%		98	%		98	%		93	%		91	%		91	%

	TENNESSEE - Company Share (3)		87	%		88	%		88	%		86	%		87	%		87	%

	The Avenue West Cobb		95	%		94	%		97	%		95	%		95	%		94	%
	North Point MarketCenter		100	%		100	%		100	%		91	%		100	%		100	%
	The Avenue East Cobb		86	%		86	%		96	%		82	%		86	%		86	%
	The Avenue Peachtree City		89	%		92	%		92	%		90	%		91	%		90	%

	GEORGIA - Company Share (3)		94	%		94	%		97	%		90	%		94	%		94	%

	Tiffany Springs MarketCenter		85	%		87	%		88	%		83	%		86	%		87	%

	MISSOURI - Company Share (3)		85	%		87	%		88	%		83	%		86	%		87	%

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

	FLORIDA - Company Share (3)		91	%		92	%		91	%		91	%		92	%		91	%

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

	VIRGINIA - Company Share (3)		100	%		100	%		100	%		100	%		100	%		100	%

	Los Altos MarketCenter		99	%		100	%		100	%		98	%		94	%		100	%

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


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



	TOTAL PORTFOLIO - Company Share (3)		89	%		91	%		90	%		87	%		89	%		90	%

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

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

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

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE (1)

NET OPERATING INCOME

($ in thousands)


	Three Months Ended						Q1 ‘13 vs.			Q1 ‘13 vs.
	March 31,		March 31,		December,		Q1 ‘12			Q4 ‘12
	2013		2012		2012		% Change			% Change
Rental Property Revenues (2)
Office		25,857		24,613		25,084		5.1	%		3.1	%
Retail		4,958		4,799		4,830		3.3	%		2.7	%

Total Rental Property Revenues		30,814		29,412		29,914		4.8	%		3.0	%

Rental Property Operating Expenses (2)
Office		10,526		10,035		10,473		4.9	%		0.5	%
Retail		1,295		1,295		1,183		0.0	%		9.5	%

Total Rental Property Operating Expenses		11,822		11,331		11,656		4.3	%		1.4	%

Same Property Net Operating Income
Office		15,330		14,578		14,611		5.2	%		4.9	%
Retail		3,663		3,503		3,647		4.5	%		0.4	%

Total Same Property Net Operating Income		18,993		18,081		18,257		5.0	%		4.0	%


	Three Months Ended						Q1 ‘13 vs.			Q1 ‘13 vs.
	March 31,		March 31,		December,		Q1 ‘12			Q4 ‘12
	2013		2012		2012		% Change			% Change
Cash Basis Same Property Net Operating Income (3)
Office		13,770		13,274		13,531		3.7	%		1.8	%
Retail		3,626		3,451		3,597		5.1	%		0.8	%

Total Cash Basis Same Property Net Operating Income		17,395		16,725		17,128		4.0	%		1.6	%

(1)	Same Properties include those office and retail properties that were operational on January 1, 2012, 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 March 31, 2013

OFFICE

As of March 31, 2013, the Company’s office portfolio included 15 commercial office properties. The weighted average remaining lease term of these office properties was approximately six years as of March 31, 2013. Most of the major tenant leases in these buildings provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total

*Company Share*
Square Feet Expiring		258,283			510,730			546,266			1,127,768			533,153			766,640			326,001			291,283			556,580			1,815,183			6,731,887
% of Leased Space		4	%		8	%		8	%		17	%		8	%		11	%		5	%		4	%		8	%		27	%		100	%
Annual Contractual Rent ($000’s) (1)	$	4,518		$	10,627		$	11,918		$	21,171		$	11,856		$	16,134		$	7,635		$	7,907		$	13,868		$	43,611		$	149,245
Annual Contractual Rent/Sq. Ft. (1)	$	17.49		$	20.81		$	21.82		$	18.77		$	22.24		$	21.05		$	23.42		$	27.15		$	24.92		$	24.03		$	22.17

RETAIL

As of March 31, 2013, the Company’s retail portfolio included 16 retail properties. The weighted average remaining lease term of these retail properties was approximately eight years as of March 31, 2013. Most of the major tenant leases in these retail properties provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:


																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total

*Company Share*
Square Feet Expiring (2)		48,172			52,747			56,336			69,374			91,312			223,067			151,401			18,516			19,027			369,514			1,099,466
% of Leased Space		4	%		5	%		5	%		6	%		8	%		20	%		14	%		2	%		2	%		34	%		100	%
Annual Contractual Rent ($000’s) (1)	$	686		$	956		$	1,060		$	1,318		$	1,934		$	4,604		$	2,993		$	315		$	527		$	4,008		$	18,401
Annual Contractual Rent/Sq. Ft. (1)	$	14.24		$	18.13		$	18.81		$	18.99		$	21.17		$	20.64		$	19.77		$	16.99		$	27.71		$	10.85		$	16.74

(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 March 31, 2013


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

		44	%	7

(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 March 31, 2013

($ in thousands)


Project	Metropolitan Area	Company’s Ownership Interest			Estimated Project Cost (2)		Project Cost Incurred to Date (2)		Number of Apartment Units/Square Feet		Percent Leased			Actual Opening (3)		Estimated Stabilization(4)

Emory Point (Phase I)	Atlanta, GA		75	%	$	102,300	$	87,707

Apartments										443		45	%		3Q 12		2Q 14
Retail										80,000		82	%		4Q 12		4Q 13

Mahan Village	Tallahassee, FL		100	%(5)	$	25,800	$	24,329

Retail										147,000		91	%		3Q 12		2Q 13

(1)

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

(2)

Amount represents 100% of the estimated project cost. The projects are being funded with a combination of equity from the partners and $61.1 million and $15 million of construction loans for Emory Point and Mahan Village, respectively. As of March 31, 2013, $49.5 million and $14.2 million were outstanding under the Emory Point and Mahan Village loans, respectively.

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

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

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

COUSINS PROPERTIES INCORPORATED

INVENTORY OF LAND HELD

As of March 31, 2013


	Metropolitan Area	Company’s Ownership Interest			Developable Land Area (Acres)
COMMERCIAL

Jefferson Mill Business Park	Atlanta		100.00	%		123
North Point	Atlanta		100.00	%		32
Wildwood Office Park	Atlanta		50.00	%		30
Wildwood Office Park	Atlanta		100.00	%		11
The Avenue Forsyth-Adjacent Land	Atlanta		100.00	%		11
549 / 555 / 557 Peachtree Street	Atlanta		100.00	%		1

Georgia						208


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	%		10

Missouri						10


TOTAL COMMERCIAL LAND ACRES HELD						350


COMPANY’S SHARE OF TOTAL ACRES						301


COST BASIS OF COMMERCIAL LAND HELD					$	63,546


COMPANY’S SHARE OF COST BASIS OF COMMERCIAL LAND HELD					$	37,441


RESIDENTIAL (4)

Paulding County	Atlanta		50.00	%		5,565
Blalock Lakes	Atlanta		100.00	%		2,708
Callaway Gardens (5)	Atlanta		100.00	%		218
Longleaf at Callaway	Atlanta		100.00	%		4

Georgia						8,495


Padre Island	Corpus Christi		50.00	%		15

Texas						15


TOTAL RESIDENTIAL LAND ACRES HELD						8,510


COMPANY’S SHARE OF TOTAL ACRES						5,720


COST BASIS OF RESIDENTIAL LAND HELD					$	26,678


COMPANY’S SHARE OF COST BASIS OF RESIDENTIAL LAND HELD					$	20,579


GRAND TOTAL COMPANY’S SHARE OF ACRES						6,020


GRAND TOTAL COMPANY’S SHARE OF COST BASIS OF LAND HELD					$	58,020

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

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

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

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

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

COUSINS PROPERTIES INCORPORATED

DEBT OUTSTANDING

As of March 31, 2013

($ in thousands)


	Company’s Ownership Interest			Rate End of Quarter			Maturity Date		Company’s Share of Debt Maturities and Principal Payments																					Company’s Share Recourse (1)
Description (Interest Rate Base, if not fixed)	Company’s Ownership Interest			Rate End of Quarter			Maturity Date		2013			2014			2015			2016			2017			Thereafter			Total			Company’s Share Recourse (1)

CONSOLIDATED DEBT

Floating Rate Debt
Mahan Village (LIBOR + 1.65%; $15mm facility)		100.00	%(3)		1.85	%		9/12/2014		—			14,191			—			—			—			—			14,191			3,548
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (2)		100.00	%		1.70	%		2/28/2016		—			—			—			55,000			—			—			55,000			55,000

Total Floating Rate Debt										—			14,191			—			55,000			—			—			69,191			58,548


Fixed Rate Debt
Callaway Gardens		100.00	%		4.13	%		11/18/2013		174			—			—			—			—			—			174			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016		386			542			573			14,025			—			—			15,526			—
The American Cancer Society Center (4)		100.00	%		6.45	%		9/1/2017		1,125			1,632			1,741			1,834			127,508			—			133,840			—
191 Peachtree Tower		100.00	%		3.35	%		10/1/2018		—			—			—			1,305			2,013			96,682			100,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020		288			405			430			456			484			24,038			26,101			—


Total Fixed Rate Debt										1,973			2,579			2,744			17,620			130,005			120,720			275,641			—


TOTAL CONSOLIDATED DEBT										1,973			16,770			2,744			72,620			130,005			120,720			344,832			58,548


UNCONSOLIDATED DEBT

Floating Rate Debt
The Avenue Murfreesboro (LIBOR + 3.0%; $97.5mm facility) (5)		50.00	%		3.20	%		12/31/2013		46,600			—			—			—			—			—			46,600			26,220
Emory Point (LIBOR + 1.85%, $61.1mm facility)		75.00	%		2.05	%		6/28/2014		—			37,125			—			—			—			—			37,125			11,456
Highland City Town Center (LIBOR + 2.65%)		50.50	%(3)		2.85	%		1/1/2016		83			116			123			4,938			—			—			5,260			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(3)		2.85	%		1/1/2016		48			67			71			2,867			—			—			3,053			—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)		50.50	%(3)		3.05	%		1/1/2016		41			58			62			2,935			—			—			3,096			1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)		50.50	%(3)		3.05	%		1/1/2016		38			53			56			2,648			—			—			2,795			1,388

Total Floating Rate Debt										46,810			37,419			312			13,388			—			—			97,929			40,602


Fixed Rate Debt
Emory University Hospital Midtown Medical Office Tower (6)		50.00	%		5.90	%		6/1/2013		23,101			—			—			—			—			—			23,101			—
Gateway Village (7)		50.00	%		6.41	%		12/1/2016		5,985			8,439			8,997			8,768			—			—			32,189			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017		56			78			81			85			3,755			—			4,055			—
Terminus 100		50.00	%		5.25	%		1/1/2023		824			1,150			1,212			1,277			1,346			61,986			67,795			—
Terminus 200		50.00	%		3.79	%		1/1/2023		—			—			—			559			770			39,671			41,000			—

Total Fixed Rate Debt										29,966			9,667			10,290			10,689			5,871			101,657			168,140			—


TOTAL UNCONSOLIDATED DEBT									$	76,776		$	47,086		$	10,602		$	24,077		$	5,871		$	101,657		$	266,069		$	40,602


TOTAL DEBT									$	78,749		$	63,856		$	13,346		$	96,697		$	135,876		$	222,377		$	610,901		$	99,150


TOTAL MATURITIES (8)									$	69,875		$	51,316		$	—		$	82,413		$	131,263		$	209,100		$	543,968


% OF MATURITIES										13	%		9	%		0	%		15	%		24	%		39	%		100	%

Floating and Fixed Rate Debt Analysis


	Total Debt ($)		Total Debt (%)			Weighted Average Interest Rate			Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	167,120		27	%		2.31	%		1.8
Fixed Rate Debt		443,781		73	%		5.22	%		5.8

Total Debt	$	610,901		100	%		4.42	%		4.7

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

(2)	Total borrowing capacity of the Credit Facility at March 31, 2013 was $350 million. The spread over LIBOR at March 31, 2013 was 1.50%.

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

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

(5)	Beginning July 21, 2013 the spread over LIBOR will decrease to 2.5% through the end of the term.

(6)	Subsequent to quarter end, Crawford Long - CPI, LLC repaid this note and entered in to a ten year 3.50% fixed rate mortgage note with a principal balance of $75 million (Cousins’ share $37.5 million.)

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

(8)	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 March 31, 2013


		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%.	50% of proceeds after partner receives preference of $66.8 million until a 17% leveraged IRR. Thereafter, receives 20% of remaining proceeds.	Recognize 11.46% of invested capital each period.
CF Murfreesboro Associates	The Avenue Murfreesboro	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
CP Venture Two LLC	Greenbrier MarketCenter, Los Altos MarketCenter, North Point MarketCenter	10.4% of operating cash flows.	10.4% of proceeds.	Recognize 10.4% of net income from venture.
Terminus Office Holdings LLC	Terminus 100, Terminus 200	50% of operating cash flows until partner receives a 12% IRR. Then 60% of operating cash flows.	Same as operating cash flows.	Recognize 50% 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.	All proceeds until a 16% leveraged IRR. Then, Watkins receives their unreturned capital. Thereafter, 39.65% of remaining proceeds.	Recognize net income equal to 16% of investment.
Temco Associates LLC	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
EP I LLC	Emory Point	75% of operating cash flows.	75% of proceeds.	Recognize 75% of net income from venture.
Crawford Long-CPI, LLC	Emory University Hospital Midtown Medical Office Tower	50% of Operating Cash Flows.	50% of proceeds.	Recognize 50% of net income from venture.
Wildwood Associates	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.

Consolidated Joint Ventures
CP Venture Six	Tiffany Springs MarketCenter, Promenade	All operating cash flow after partner receives preferred return of 6.5%.	88.5% of proceeds from non-liquidating capital transactions. Upon liquidation, proceeds equal to an 8.5% leveraged IRR after partner receives an 8.5% leveraged IRR. Thereafter, 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% leveraged IRR as assets are sold.
Cousins/Callaway LLC	Land	The first $2.0 million of cash flow; 77% of the next $17.7 million of cash flow; 50% of remaining cash flow until it receives an IRR of 20%; 40% of remaining until it receives an IRR of 25%; 25% of remainder.	Same as operating cash flow.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner.
Cousins/Daniel LLC	Lakeshore Park Plaza, 600 University Park Place	Through preferred returns, all operating cash flows.	All capital proceeds.	Recognize revenues and expenses as if a wholly-owned property. No minority interest currently recorded.
Mahan Village LLC	Mahan Village	Preferred return of 9% and receives 87% of remainder after partner receives 9% preferred return.	All proceeds until a 16% leveraged IRR. 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)


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:

TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS		16,602			1,933			2,393			4,825			4,031			13,181			2,865
SECOND GENERATION BUILDING IMPROVEMENTS		464			155			730			137			250			1,271			79

		17,067			2,087			3,122			4,962			4,281			14,453			2,944
RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,074			246			64			116			180			605			88

TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX		19,140			2,333			3,186			5,077			4,461			15,058			3,032

NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		57,177			16,451			16,395			17,121			17,260			67,227			18,532
RETAIL CONSOLIDATED PROPERTIES		3,504			897			868			946			1,152			3,863			1,294

NET OPERATING INCOME - CONSOLIDATED		60,684			17,348			17,263			18,067			18,412			71,090			19,826

RENTAL PROPERTY REVENUES		105,596			29,573			30,219			32,421			33,394			125,607			36,123
RENTAL PROPERTY OPERATING EXPENSES		(44,912	)		(12,225	)		(12,956	)		(14,354	)		(14,982	)		(54,517	)		(16,297	)

NET OPERATING INCOME - CONSOLIDATED		60,684			17,348			17,263			18,067			18,412			71,090			19,826

INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		41,092			7,919			6,455			5,226			2,917			22,517			2
RENTAL PROPERTY OPERATING EXPENSES		(15,480	)		(2,279	)		(2,228	)		(1,554	)		(685	)		(6,746	)		(105	)

NET OPERATING INCOME		25,612			5,640			4,227			3,672			2,232			15,771			(103	)

TERMINATION FEES		77			192			13			3,232			75			3,512			—
INTEREST AND OTHER INCOME (EXPENSE)		39			(17	)		(14	)		(1	)		(6	)		(38	)		(4	)

FFO FROM DISCONTINUED OPERATING PROPERTIES		25,728			5,815			4,226			6,903			2,301			19,245			(107	)

THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)

FFO FROM THIRD PARTY MANAGEMENT AND LEASING		2,774			411			1,422			529			328			2,690			21

FFO FROM DISCONTINUED OPERATIONS		28,502			6,226			5,648			7,432			2,629			21,935			(86	)

DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(19,481	)		(3,741	)		(2,468	)		(3,099	)		(36	)		(9,344	)		—
IMPAIRMENT LOSSES		(7,632	)		(12,233	)		—			—			(1,558	)		(13,791	)		—


INCOME FROM DISCONTINUED OPERATIONS		1,390			(9,749	)		3,180			4,333			1,035			(1,200	)		(86	)

COUSINS PROPERTIES INCORPORATED

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

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


	2011			2012 1st			2012 2nd			2012 3rd		2012 4th			2012			2013 1st
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT
PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES - CONSOLIDATED:
RESIDENTIAL LOT SALES		3,015			949			535			732		400			2,616			460
OUTPARCEL SALES		—			—			—			—		—			—			—

TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		3,015			949			535			732		400			2,616			460

RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		2,941			564			416			354		87			1,420			460
OUTPARCEL COST OF SALES		(50	)		—			—			—		—			—			—

TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED		2,891			564			416			354		87			1,420			460

TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		3,258			—			(30	)		—		—			(30	)		242

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY
SALES LESS COST OF SALES - CONSOLIDATED		3,382			385			90			378		313			1,166			243

SUMMARY - CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		74			385			120			378		313			1,196			—
OUTPARCEL SALES LESS COST OF SALES		50			—			—			—		—			—			—
TRACT SALES LESS COST OF SALES		3,258			—			(30	)		—		3,750			3,720			242

TOTAL CONSOLIDATED SALES LESS COST OF SALES		3,382			385			90			378		4,063			4,916			242

OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES - CONSOLIDATED:
OTHER SALES		4,664			—			174			—		520			694			340
OTHER COST OF SALES		(2,487	)		—			(119	)		—		(294	)		(413	)		(182	)

OTHER SALES LESS COST OF SALES - CONSOLIDATED		2,177			—			55			—		226			281			158

UNCONSOLIDATED:
OTHER SALES - UNCONSOLIDATED:
OTHER SALES		—			—			—			—		—			—			—
OTHER COST OF SALES		(5	)		—			—			—		—			—			—
OTHER, NET		77			(1	)		(2	)		—		31			28			10

OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED		72			(1	)		(2	)		—		31			28			10

TOTAL OTHER SALES FFO		2,249			(1	)		53			—		257			309			168

UNCONSOLIDATED:
RESIDENTIAL LOT AND TRACT SALES - UNCONSOLIDATED:
RESIDENTIAL LOT SALES		7,343			—			—			—		—			—			—
TRACT SALES		794			176			—			—		—			176			—

TOTAL RESIDENTIAL LOT AND TRACT SALES		8,137			176			—			—		—			176			—

RESIDENTIAL LOT AND TRACT COST OF SALES - UNCONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		5,770			—			—			—		—			—			—
TRACT COST OF SALES		513			176			—			—		—			176			—

TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES		6,283			176			—			—		—			176			—

RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES - UNCONSOLIDATED		1,854			—			—			—		—			—			—

SUMMARY - UNCONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		1,573			—			—			—		—			—			—
TRACT SALES LESS COST OF SALES		281			—			—			—		—			—			—

RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED		1,854			—			—			—		—			—			—
TOTAL RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES		5,236			385			90			378		4,063			4,916			242

COUSINS PROPERTIES INCORPORATED

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

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


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES		13,592			3,661			3,271			3,210			2,613			12,755			3,373
RETAIL PROPERTIES		10,666			2,608			2,666			2,671			2,774			10,719			3,031
OTHER PROPERTIES		—			—			—			—			122			122			43

NET OPERATING INCOME		24,258			6,269			5,937			5,881			5,509			23,596			6,447
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES		1,854			—			—			—			—			—			—
OTHER SALES LESS COST OF SALES		73			(1	)		(2	)		—			31			28			10
TERMINATION FEES		73			42			18			—			2			62			19
INTEREST EXPENSE		(4,338	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)		(1,710	)
OTHER EXPENSE		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)		112
IMPAIRMENT LOSSES		(29,003	)		—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(20	)		(5	)		(5	)		(5	)		—			(15	)		(22	)

FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES		(7,570	)		4,847			4,748			4,743			4,473			18,811			4,856
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		—			—			7,509			—			23,153			30,662			—
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(10,337	)		(2,661	)		(2,495	)		(2,475	)		(2,584	)		(10,215	)		(3,204	)

NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		(17,906	)		2,186			9,762			2,268			25,043			39,258			1,652

MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END		6.41			7.58			7.75			7.94			8.35			8.35			10.69
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		103,702			104,139			104,215			104,136			104,090			104,090			104,127

COMMON STOCK CAPITALIZATION		664,730			789,374			807,666			826,840			869,152			869,152			1,113,118

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

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

DEBT		539,442			529,168			461,021			518,630			425,410			425,410			344,832
SHARE OF UNCONSOLIDATED DEBT		162,127			164,217			156,364			165,571			170,480			170,480			266,069

DEBT (2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901

TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620

LEVERAGE RATIOS
DEBT (2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901
TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620
DEBT (2) / TOTAL MARKET CAPITALIZATION		46	%		42	%		39	%		41	%		36	%		36	%		32	%

TOTAL ASSETS-CONSOLIDATED		1,235,535			1,199,634			1,135,315			1,199,101			1,124,242			1,124,242			1,096,444
ACCUMULATED DEPRECIATION-CONSOLIDATED		289,473			302,782			281,739			294,710			258,258			258,258			221,429
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2)		516,686			467,303			454,388			461,500			403,141			403,141			575,323
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		(160,587	)		(141,180	)		(140,303	)		(139,782	)		(97,868	)		(97,868	)		(128,541	)

TOTAL UNDEPRECIATED ASSETS (2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655
DEBT (2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901
UNDEPRECIATED ASSETS (2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)		37	%		38	%		36	%		38	%		35	%		35	%		35	%
DEBT (2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602

DEBT (2) + PREFERRED		871,171			862,987			786,987			853,803			765,492			765,492			780,503
TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION		57	%		52	%		49	%		51	%		47	%		47	%		41	%

DEBT (2) + PREFERRED		871,171			862,987			786,987			853,803			765,492			765,492			780,503
TOTAL UNDEPRECIATED ASSETS (2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)		46	%		47	%		45	%		47	%		45	%		45	%		44	%

COUSINS PROPERTIES INCORPORATED

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

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


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
EBITDA (2)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		1,708			369			228			261			232			1,090			205
INCOME TAX PROVISION (BENEFIT)		(186	)		27			33			60			(30	)		90			1
IMPAIRMENT LOSSES		129,134			—			—			488			—			488			—
PREDEVELOPMENT CHARGES		937			—			—			—			—			—			—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227

EBITDA (2)		100,214			24,652			23,577			25,729			24,532			98,490			21,539

COVERAGE RATIOS (2)
EBITDA		100,214			24,652			23,577			25,729			24,532			98,490			21,539
INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645
INTEREST COVERAGE RATIO (2)		3.08			3.31			3.40			3.81			3.50			3.50			3.24

INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645
SCHEDULED PRINCIPAL PAYMENTS		7,279			2,123			2,045			1,755			1,846			7,769			1,855
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227

FIXED CHARGES		52,701			12,797			12,209			11,740			12,084			48,830			11,727
EBITDA		100,214			24,652			23,577			25,729			24,532			98,490			21,539
FIXED CHARGES COVERAGE RATIO (2)		1.90			1.93			1.93			2.19			2.03			2.02			1.84

DEBT (2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901
ANNUALIZED EBITDA (3)		108,800			98,608			94,308			102,916			98,128			98,128			86,156
DEBT (2) / ANNUALIZED EBITDA (3)		6.45			7.03			6.55			6.65			6.07			6.07			7.09

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH COMMON DIVIDENDS		18,651			4,687			4,686			4,690			4,685			18,748			4,688
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
FFO PAYOUT RATIO		-24	%		35	%		36	%		18	%		33	%		28	%		41	%

FFO BEFORE CERTAIN CHARGES
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
IMPAIRMENT LOSSES (2)		129,134			—			—			488			—			488			—
PREDEVELOPMENT & OTHER CHARGES		937			(1,185	)		—			—			—			(1,185	)		—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—
SEPARATION CHARGES		197			213			79			574			1,118			1,985			—

FFO BEFORE CERTAIN CHARGES		53,467			12,610			13,231			15,997			15,210			57,049			11,461
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		35	%		37	%		35	%		29	%		31	%		33	%		41	%

COUSINS PROPERTIES INCORPORATED

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

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


	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st
FAD (2)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461
FAS 13		(11,076	)		(2,686	)		(2,152	)		(1,823	)		(1,659	)		(8,319	)		(2,346	)
ABOVE AND BELOW MARKET RENTS		(26	)		108			87			124			174			493			(185	)
SECOND GENERATION CAPEX		(19,140	)		(2,333	)		(3,186	)		(5,077	)		(4,461	)		(15,058	)		(3,032	)

FAD (2)		(107,117	)		8,577			7,901			18,909			8,222			43,608			5,897
COMMON DIVIDENDS		18,651			4,687			4,686			4,690			4,685			18,748			4,688
FAD PAYOUT RATIO (2)		-17	%		55	%		59	%		25	%		57	%		43	%		79	%

FAD BEFORE CERTAIN CHARGES
FAD (2)		(107,117	)		8,577			7,901			18,909			8,222			43,608			5,897
IMPAIRMENT LOSSES (2)		129,134			—			—			488			—			488			—
PREDEVELOPMENT & OTHER CHARGES		937			(1,185	)		—			—			—			(1,185	)		—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—
SEPARATION CHARGES		197			213			79			574			1,118			1,984			—

FAD BEFORE CERTAIN CHARGES		23,225			7,699			7,980			9,221			9,265			34,164			5,897
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		80	%		61	%		59	%		51	%		51	%		55	%		79	%

OPERATIONS RATIOS
REVENUES		129,047			34,653			33,794			40,582			39,250			148,279			41,268
REVENUES FROM DISCONTINUED OPERATIONS		60,630			12,821			12,497			13,257			3,831			42,406			76

REVENUES INCLUDING DISCONTINUED OPERATIONS		189,677			47,474			46,291			53,839			43,081			190,685			41,344

GENERAL AND ADMINISTRATIVE EXPENSES		24,166			6,623			5,646			5,255			5,684			23,208			6,069
REVENUES INCLUDING DISCONTINUED OPERATIONS		189,677			47,474			46,291			53,839			43,081			190,685			41,344
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%		14.7	%

TOTAL UNDEPRECIATED ASSETS (2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%		1.4	%

(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
	March 31,			March 31,		December,
	2013			2012		2012
Net Operating Income
Same Property		18,993			18,081		18,257
Non-Same Property		6,627			9,685		6,563
Change in ownership %		550			1,491		1,332

Consolidated Property Net Operating Income		26,170			29,257		26,152


Less: Non-Cash Items
Straight-line rent		2,547			3,184		2,163
Other		(256	)		27		(63	)

Non-Cash Items		2,291			3,211		2,100

Cash Basis Property Net Operating Income		23,879			26,046		24,052


Net Operating Income (1)
Operating Properties		19,823			17,346		18,412
Discontinued Operations		(101	)		5,642		2,231
Share of Unconsolidated Joint Ventures		6,448			6,269		5,509

Total Net Operating Income		26,170			29,257		26,152

(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, predevelopment charges, loss on debt extinguishment, gain on sale of third party business, participation interest income 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, predevelopment and other charges, loss on debt extinguishment, gain on sale of third party business, participation interest income 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, predevelopment and other charges, loss on debt extinguishment, gain on sale of third party business, participation interest income 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.

“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. A fully operational property is one that achieved 90% economic occupancy for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. 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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