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

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8-K - 8-K - COUSINS PROPERTIES INC	a8-kearningsrelease4q13.htm

COUSINS PROPERTIES INCORPORATED

QUARTERLY INFORMATION PACKAGE

For the Quarter Ended December 31, 2013

TABLE OF CONTENTS



Press Release	2
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
Office Leasing Statistics	17
Top 20 Tenants	18
Development Pipeline	19
Inventory of Land	20
Debt Outstanding	21
Joint Venture Information	22
Calculations and Reconciliations of Non-GAAP Financial Measures	22
Discussion of Non-GAAP Financial Measures	30

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; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions or dispositions; the potential dilutive effect of common stock offerings; the availability of buyers and adequate pricing with respect to the disposition of assets; risks related to the geographic concentration of our portfolio; risks and uncertainties related to national and local economic conditions, the real estate industry in general, and the commercial real estate markets in particular; changes to the Company's strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effect of the sale of the Company's third party management and leasing business; leasing risks, including the ability to obtain new tenants or renew expiring tenants, and the ability to lease newly developed and/or recently acquired space; the 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 zoning approval, receipts of required permits, construction delays, cost overruns, and leasing risk); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the 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; 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, 2013. 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.

News Release

CONTACT:



Gregg D. Adzema		Marli Quesinberry
Executive Vice President and		Director, Investor Relations and
Chief Financial Officer		Corporate Communications
(404) 407-1116		(404) 407-1898
greggadzema@cousinsproperties.com		marliquesinberry@cousinsproperties.com

COUSINS REPORTS RESULTS FOR

QUARTER AND YEAR ENDED DECEMBER 31, 2013

Highlights


•	Funds From Operations for the fourth quarter were $0.18 per share, up from $0.14 in the prior year.


•	Same property net operating income for the fourth quarter was up 3.7% over the prior year.

ATLANTA (February 13, 2014) - Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2013.

“Our fourth quarter performance demonstrates a successful finish to a transformative year at Cousins,” said Larry Gellerstedt, President and Chief Executive Officer of Cousins. “Our team executed exceptionally well in 2013, producing strong financial results and further positioning the company in high-growth Sunbelt markets while maintaining a solid balance sheet.”

Portfolio Activity


•	Leased or renewed 442,000 square feet of office and retail space during the fourth quarter.


•	Same property occupancy for the fourth quarter was 90.4%, up from 89.0% in the prior year.


•	Cash-basis second generation net effective rent for the fourth quarter was up 11.3% over the prior year.

Transaction Activity


•	Sold the Inhibitex office building for $8.3 million prior to the allocation of free rent credits, generating a gain of $3.0 million.


•	Commenced construction on Emory Point Phase II, which will consist of 307 apartments and 43,000 square feet of retail space with a total projected cost of $73.3 million.


•	Closed a construction loan on Emory Point Phase II, which will provide up to $46.0 million at a floating rate of LIBOR plus 1.85% and a term of 3 years with two one-year extension options.

Financial Results

FFO was $34.3 million, or $0.18 per share, for the fourth quarter of 2013 compared with $14.2 million, or $0.14 per share, for the fourth quarter of 2012. FFO was $77.1 million, or $0.53 per share, for the year ended December 31, 2013, compared with $66.5 million, or $0.64 per share, for the same period in 2012.

Net income available to common stockholders was $2.1 million, or $0.01 per share, for the fourth quarter of 2013, compared with net income available of $30.1 million, or $0.29 per share, for the fourth quarter of 2012. Net income available was $109.1 million, or $0.76 per share, for the year ended December 31, 2013, compared with $32.8 million, or $0.32 per share, for the same period in 2012.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Friday, February 14, 2014, to discuss the results of the quarter ended December 31, 2013. The number to call for this interactive teleconference is (212) 231-2915.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21703342. The replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Q4 2013 Cousins Properties Incorporated Earnings Conference Call” link on the Investor Relations page.

Cousins Properties Incorporated is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use developments in Sunbelt markets.

The Consolidated Statements of Operations, Consolidated Balance Sheets, 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) 407-1898.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended						Year Ended
	December 31,						December 31,
	2013			2012			2013			2012
Revenues:
Rental property revenues	$	76,620		$	30,486		$	194,420		$	114,208
Fee income	1,959			4,812			10,891			17,797
Other	941			1,036			5,430			4,841
	79,520			36,334			210,741			136,846
Costs and expenses:
Rental property operating expenses	35,386			13,892			90,498			50,329
Reimbursed expenses	850			3,095			5,215			7,063
General and administrative expenses	4,684			5,685			21,940			23,208
Interest expense	7,384			5,997			21,709			23,933
Impairment losses	—			—			—			488
Depreciation and amortization	31,590			10,658			76,277			39,424
Separation expenses	—			1,118			520			1,985
Acquisition and related costs	57			299			7,484			793
Other	436			803			3,693			5,144
	80,387			41,547			227,336			152,367
Loss on extinguishment of debt	—			—			—			(94		)
Loss from continuing operations before taxes, unconsolidated joint ventures, and sale of investment properties	(867		)	(5,213		)	(16,595		)	(15,615		)
Benefit (provision) for income taxes from operations	26			30			23			(91		)
Income from unconsolidated joint ventures	1,463			25,042			67,325			39,258
Income from continuing operations before gain on sale of investment properties	622			19,859			50,753			23,552
Gain (loss) on sale of investment properties	(72		)	3,907			61,288			4,053
Income from continuing operations	550			23,766			112,041			27,605
Income from discontinued operations:
Income from discontinued operations	577			1,799			3,299			1,907
Gain on sale of investment properties	2,938			10,200			11,489			18,407
	3,515			11,999			14,788			20,314
Net income	4,065			35,765			126,829			47,919
Net income attributable to noncontrolling interests	(167		)	(2,450		)	(5,068		)	(2,191		)
Net income attributable to controlling interests	3,898			33,315			121,761			45,728
Preferred share original issuance costs	—			—			(2,656		)	—
Dividends to preferred stockholders	(1,777		)	(3,227		)	(10,008		)	(12,907		)
Net income available to common stockholders	$	2,121		$	30,088		$	109,097		$	32,821
Per common share information — basic and diluted:
Income (loss) from continuing operations attributable to controlling interest	$	(0.01	)	$	0.17		$	0.66		$	0.12
Income from discontinued operations	0.02			0.12			0.10			0.20
Net income available to common stockholders	$	0.01		$	0.29		$	0.76		$	0.32
Weighted average shares — basic	189,665			104,109			144,255			104,117
Weighted average shares — diluted	189,853			104,132			144,420			104,125
Dividends declared per common share	$	0.045		$	0.045		$	0.180		$	0.180

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended December 31,						Year Ended December 31,
	2013			2012			2013			2012
Net Income Available to Common Stockholders	$	2,121		$	30,088		$	109,097		$	32,821
Depreciation and amortization of real estate assets:
Consolidated properties	31,401			10,426			75,524			38,349
Discontinued properties	495			1,097			3,083			13,479
Share of unconsolidated joint ventures	2,985			2,584			13,434			10,215
Impairment loss on depreciable investment property, net of amounts attributable to noncontrolling interests	—			1,558			—			11,748
(Gain) loss on sale of depreciated properties:
Consolidated properties	96			(158		)	(60,587		)	(334		)
Discontinued properties	(2,893		)	(10,125		)	(6,469		)	(10,948		)
Share of unconsolidated joint ventures	77			(23,153		)	(60,345		)	(30,662		)
Other	7			1,850			3,397			1,824
Funds From Operations Available to Common Stockholders	$	34,289		$	14,167		$	77,134		$	66,492
Per Common Share — Basic and Diluted:
Net Income Available	$	0.01		$	0.29		$	0.76		$	0.32
Funds From Operations	$	0.18		$	0.14		$	0.53		$	0.64
Weighted Average Shares — Basic	189,665			104,109			144,255			104,117
Weighted Average Shares — Diluted	189,853			104,132			144,420			104,125

The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income 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.

Net effective rent represents base rent less operating expense reimbursements and leasing costs.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	December 31, 2013			December 31, 2012
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $235,707 and $255,128 in 2013 and 2012, respectively	$	1,828,437		$	669,652
Projects under development, net of accumulated depreciation of $0 and $183 in 2013 and 2012, respectively	21,681			25,209
Land	35,053			42,187
Other	—			151
	1,885,171			737,199
Operating properties and related assets held for sale, net of accumulated depreciation of $21,444 and $2,947 in 2013 and 2012, respectively	24,554			1,866
Cash and cash equivalents	975			176,892
Restricted cash	2,810			2,852
Notes and accounts receivable, net of allowance for doubtful accounts of $1,827 and $1,743 in 2013 and 2012, respectively	11,778			9,972
Deferred rents receivable	39,969			39,378
Investment in unconsolidated joint ventures	107,082			97,868
Intangible assets, net of accumulated amortization of $37,544 and $15,153 in 2013 and 2012, respectively	170,973			33,280
Other assets	29,894			24,935
Total assets	$	2,273,206		$	1,124,242
Liabilities:
Notes payable	$	630,094		$	425,410
Accounts payable and accrued expenses	76,668			34,751
Deferred income	25,754			11,888
Intangible liabilities, net of accumulated amortization of $6,323 and $13,986 in 2013 and 2012, respectively	66,476			7,520
Other liabilities	15,242			1,720
Total liabilities	814,234			481,289
Commitments and contingencies	—			—
Equity:
Stockholders' investment:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 0 and 2,993,090 shares issued and outstanding in 2013 and 2012, respectively	—			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, 193,236,454 and 107,660,080 shares issued in 2013 and 2012, respectively	193,236			107,660
Additional paid-in capital	1,420,951			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	(164,721		)	(260,104		)
Total stockholders' investment	1,457,401			620,342
Nonredeemable noncontrolling interests	1,571			22,611
Total equity	1,458,972			642,953
Total liabilities and equity	$	2,273,206		$	1,124,242

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

(Unaudited, in thousands)



	Three Months Ended December 31,						Year Ended December 31,
	2013			2012			2013			2012
Net Operating Income - Consolidated Properties
Rental property revenues	$	76,620		$	30,486		$	194,420		$	114,208
Rental property expenses	(35,386		)	(13,892		)	(90,498		)	(50,329		)
Net Operating Income - Consolidated Properties	41,234			16,594			103,922			63,879
Net Operating Income - Discontinued Operations
Rental property revenues	1,742			5,825			10,552			33,918
Rental property expenses	(666		)	(1,775		)	(4,157		)	(10,936		)
Net Operating Income - Discontinued Operations	1,076			4,050			6,395			22,982
Net Operating Income - Unconsolidated Joint Ventures	6,196			5,509			27,763			23,596
Total Net Operating Income	$	48,506		$	26,153		$	138,080		$	110,457

Net Operating Income:
Same Property	$	15,157		$	14,611		$	60,621		$	57,942
Non-Same Property	33,349			11,542			77,459			52,515
Net Operating Income	$	48,506		$	26,153		$	138,080		$	110,457

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 properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that has 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 AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS



	2011		2012 1st		2012 2nd		2012 3rd		2012 4th		2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013
Property Statistics
Number of Operating Properties	35		35		32		34		30		30		31		33		24		23		23
Rentable Square Feet (in thousands)	12,572		12,573		11,688		12,678		11,827		11,827		13,111		13,546		15,768		15,723		15,723

Leverage Ratios (1)
Debt/Total Market Capitalization	45.7	%	42.0	%	38.7	%	40.7	%	36.5	%	36.5	%	32.3	%	32.1	%	29.9	%	29.5	%	29.5	%
Debt/Total Undepreciated Assets	37.3	%	37.9	%	35.7	%	37.7	%	35.3	%	35.3	%	34.6	%	33.1	%	30.8	%	30.0	%	30.0	%
Debt + Preferred/Total Market Capitalization	56.7	%	52.2	%	49.4	%	50.8	%	46.8	%	46.8	%	41.2	%	37.0	%	33.2	%	32.8	%	32.8	%
Debt + Preferred/Total Undepreciated Assets	46.3	%	47.2	%	45.5	%	47.0	%	45.4	%	45.4	%	44.2	%	38.1	%	34.1	%	33.3	%	33.3	%

Coverage Ratios (1)
Interest Coverage	3.10		3.32		3.41		3.86		3.54		3.53		3.28		4.13		3.98		4.92		4.15
Fixed Charges Coverage	1.91		1.93		1.94		2.22		2.05		2.03		1.86		2.36		2.73		3.51		2.64
Debt/Annualized EBITDA	6.45		7.01		6.53		6.56		6.00		6.00		7.01		5.73		7.59		4.72		4.72

Dividend Ratios (1)
FFO Payout Ratio	(24.3	)%	34.8	%	35.6	%	18.3	%	33.1	%	28.2	%	40.9	%	38.4	%	49.6	%	24.9	%	35.3	%
FFO Before Certain Charges Payout Ratio	34.6	%	36.9	%	35.2	%	28.7	%	30.2	%	32.4	%	40.1	%	31.7	%	42.5	%	24.9	%	32.7	%
FAD Payout Ratio	(17.4	)%	54.7	%	59.3	%	24.8	%	57.0	%	43.0	%	79.5	%	67.7	%	85.3	%	42.3	%	61.6	%
FAD Before Certain Charges Payout Ratio	78.7	%	60.3	%	58.2	%	49.0	%	49.0	%	53.6	%	76.5	%	49.3	%	66.4	%	42.3	%	54.2	%

Operations Ratios (1)
General and Administrative Expenses/Revenues (2)	12.7	%	14.0	%	12.2	%	9.8	%	13.2	%	12.2	%	14.7	%	10.0	%	12.4	%	5.8	%	9.9	%
Annualized General and Administrative Expenses/Total Undepreciated Assets	1.3	%	1.4	%	1.3	%	1.2	%	1.3	%	1.3	%	1.4	%	1.0	%	0.9	%	0.7	%	0.7	%

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

(2) Includes discontinued operations.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUMMARY (1)

($ in thousands, except per share amounts)



	2011		2012 1st		2012 2nd		2012 3rd		2012 4th		2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013
Net Operating Income
Office	75,388		20,598		20,013		20,451		19,845		80,907		21,837		23,894		30,308		46,464		122,503
Retail	31,583		8,658		7,415		7,168		6,188		29,429		4,290		4,302		3,663		1,023		13,278
Other	3,583		1		—		—		120		121		43		376		861		1,019		2,299
Total Net Operating Income	110,554		29,257		27,428		27,619		26,153		110,457		26,170		28,572		34,832		48,506		138,080
Sales Less Cost of Sales
Land	5,236		385		89		378		4,063		4,915		243		276		725		29		1,273
Other	2,250		(1	)	53		—		257		309		168		(8	)	(6	)	37		191
Total Sales Less Cost of Sales	7,486		384		142		378		4,320		5,224		411		268		719		66		1,464
Fee Income	13,821		2,856		2,786		7,343		4,812		17,797		3,580		2,931		2,420		1,959		10,890
Third Party Management and Leasing Revenues	19,359		4,711		6,029		4,789		836		16,365		74		2		—		—		76
Other Income	2,204		1,507		112		3,329		205		5,153		282		2,064		303		879		3,528
Total Fee and Other Income	35,384		9,074		8,927		15,461		5,853		39,315		3,936		4,997		2,723		2,838		14,494
Gain on Sale of Third Party Management and Leasing Business	—		—		—		7,384		75		7,459		—		—		4,531		45		4,576
Third Party Management and Leasing Expenses	(16,585	)	(4,300	)	(4,607	)	(4,260	)	(508	)	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)
Reimbursed Expenses	(6,208	)	(1,376	)	(1,357	)	(1,235	)	(3,095	)	(7,063	)	(1,910	)	(1,359	)	(1,097	)	(850	)	(5,216	)
Separation Expenses	(197	)	(213	)	(79	)	(574	)	(1,118	)	(1,985	)	—		—		(520	)	—		(520	)
General and Administrative Expenses	(24,166	)	(6,623	)	(5,646	)	(5,255	)	(5,684	)	(23,208	)	(6,069	)	(4,552	)	(6,635	)	(4,684	)	(21,940	)
Loss on Debt Extinguishment	(74	)	(94	)	—		—		—		(94	)	—		—		—		—		—
Interest Expense	(32,515	)	(7,447	)	(6,937	)	(6,759	)	(7,011	)	(28,154	)	(6,645	)	(6,573	)	(7,224	)	(9,230	)	(29,672	)
Impairment Loss	(129,134	)	—		—		(488	)	—		(488	)	—		—		—		—		—
Other Expenses	(6,990	)	(1,551	)	(1,232	)	(3,040	)	(1,388	)	(7,209	)	(946	)	(1,071	)	(8,092	)	(498	)	(10,607	)
Income Tax Benefit (Provision)	186		(27	)	(33	)	(60	)	30		(90	)	(1	)	(1	)	(1	)	26		23
Depreciation and Amortization of Non-Real Estate Assets	(1,708	)	(369	)	(228	)	(261	)	(232	)	(1,090	)	(205	)	(213	)	(219	)	(150	)	(787	)
Preferred Stock Dividends and Original Issuance Costs	(12,907	)	(3,227	)	(3,227	)	(3,226	)	(3,227	)	(12,907	)	(3,227	)	(5,883	)	(1,777	)	(1,777	)	(12,664	)
FFO	(76,875	)	13,488		13,152		25,685		14,167		66,492		11,461		14,158		17,226		34,289		77,134
Weighted Average Shares - Basic	103,651		104,000		104,165		104,193		104,109		104,117		104,119		118,661		163,426		189,665		144,255
Weighted Average Shares - Diluted	103,655		104,000		104,165		104,203		104,132		104,125		104,252		118,845		163,603		189,853		144,420
FFO per Share - Basic and Diluted	(0.74	)	0.13		0.13		0.25		0.14		0.64		0.11		0.12		0.11		0.18		0.53

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

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

($ in thousands, except per share amounts)



	2011		2012 1st		2012 2nd		2012 3rd		2012 4th		2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
GREENWAY PLAZA	—		—		—		—		—		—		—		—		5,103		19,503		24,606
POST OAK CENTRAL	—		—		—		—		—		—		2,459		4,328		4,498		4,308		15,593
191 PEACHTREE TOWER	14,044		3,789		3,745		3,899		3,789		15,222		4,064		4,021		3,982		3,973		16,040
THE AMERICAN CANCER SOCIETY CENTER	11,571		2,872		2,581		2,744		2,832		11,029		2,881		2,932		2,911		2,815		11,539
PROMENADE	693		2,014		2,324		2,124		2,286		8,748		2,485		2,235		2,453		2,395		9,568
NORTH POINT CENTER EAST	6,363		1,254		1,269		1,142		1,521		5,186		1,373		1,452		1,508		1,576		5,909
816 CONGRESS AVENUE	—		—		—		—		—		—		—		1,098		1,498		1,433		4,029
MERIDIAN MARK PLAZA	3,863		1,015		996		1,013		1,009		4,033		1,037		1,011		1,056		1,007		4,111
2100 ROSS AVENUE	—		—		—		876		635		1,511		1,101		1,305		965		1,249		4,620
777 MAIN	—		—		—		—		—		—		—		—		699		2,355		3,054
THE POINTS AT WATERVIEW	1,824		504		557		516		488		2,065		505		464		449		458		1,876
TERMINUS 100 (2)	15,537		4,063		4,039		3,922		3,785		15,809		1,627		(1	)	58		11		1,695
OTHER	(6	)	(5	)	(30	)	(3	)	(8	)	(46	)	(7	)	(4	)	(5	)	—		(16	)
SUBTOTAL - OFFICE CONSOLIDATED	53,889		15,506		15,481		16,233		16,337		63,557		17,525		18,841		25,175		41,083		102,624

UNCONSOLIDATED PROPERTIES:
TERMINUS 100 (2)	—		—		—		—		—		—		1,208		1,821		1,938		1,925		6,892
TERMINUS 200 (3)	463		358		374		439		374		1,545		898		1,144		1,093		1,143		4,278
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER	3,822		970		920		950		918		3,758		981		956		968		969		3,874
GATEWAY VILLAGE (4)	1,208		302		302		302		302		1,208		302		302		302		302		1,208
OTHER (5)	8,099		2,031		1,675		1,519		1,019		6,244		(16	)	(17	)	(16	)	(12	)	(61	)
SUBTOTAL - OFFICE UNCONSOLIDATED	13,592		3,661		3,271		3,210		2,613		12,755		3,373		4,206		4,285		4,327		16,191

DISCONTINUED OPERATIONS (6)	7,907		1,431		1,261		1,008		895		4,595		939		847		848		1,054		3,688

TOTAL - OFFICE NET OPERATING INCOME	75,388		20,598		20,013		20,451		19,845		80,907		21,837		23,894		30,308		46,464		122,503

RETAIL:
CONSOLIDATED PROPERTIES:
MAHAN VILLAGE	—		—		—		55		259		314		390		389		363		454		1,596
OTHER	(3	)	—		4		2		—		6		(2	)	1		1		(303	)	(303	)
SUBTOTAL - RETAIL CONSOLIDATED	(3	)	—		4		57		259		320		388		390		364		151		1,293

UNCONSOLIDATED PROPERTIES:
CW INVESTMENTS (7)	2,410		610		610		591		587		2,398		580		578		579		568		2,305
EMORY POINT	—		—		—		(9	)	19		10		274		344		303		290		1,211
OTHER (8)	8,256		1,998		2,056		2,089		2,168		8,311		2,177		2,078		1,510		(9	)	5,756
SUBTOTAL - RETAIL UNCONSOLIDATED	10,666		2,608		2,666		2,671		2,774		10,719		3,031		3,000		2,392		849		9,272

DISCONTINUED OPERATIONS (9)	20,920		6,050		4,745		4,440		3,155		18,390		871		912		907		23		2,713

TOTAL - RETAIL NET OPERATING INCOME	31,583		8,658		7,415		7,168		6,188		29,429		4,290		4,302		3,663		1,023		13,278

OTHER:
UNCONSOLIDATED PROPERTIES:
EMORY POINT RESIDENTIAL	—		—		—		—		122		122		43		376		861		1,020		2,300
SUBTOTAL - OTHER UNCONSOLIDATED	—		—		—		—		122		122		43		376		861		1,020		2,300

DISCONTINUED OPERATIONS OTHER (10)	3,583		1		—		—		(2	)	(1	)	—		—		—		(1	)	(1	)

TOTAL - OTHER NET OPERATING INCOME	3,583		1		—		—		120		121		43		376		861		1,019		2,299

TOTAL NET OPERATING INCOME	110,554		29,257		27,428		27,619		26,153		110,457		26,170		28,572		34,832		48,506		138,080

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

($ in thousands, except per share amounts)



	2011		2012 1st		2012 2nd		2012 3rd		2012 4th		2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013
SALES LESS COST OF SALES
LAND SALES LESS COST OF SALES - CONSOLIDATED	3,382		385		89		378		4,063		4,915		243		276		610		29		1,158
LAND SALES LESS COST OF SALES - UNCONSOLIDATED	1,854		—		—		—		—		—		—		—		115		—		115
SUBTOTAL - LAND SALES LESS COST OF SALES	5,236		385		89		378		4,063		4,915		243		276		725		29		1,273

OTHER - CONSOLIDATED	2,177		—		55		—		226		281		158		—		—		37		195
OTHER - UNCONSOLIDATED	73		(1	)	(2	)	—		31		28		10		(8	)	(6	)	—		(4	)
SUBTOTAL - OTHER SALES LESS COST OF SALES	2,250		(1	)	53		—		257		309		168		(8	)	(6	)	37		191

TOTAL SALES LESS COST OF SALES	7,486		384		142		378		4,320		5,224		411		268		719		66		1,464

FEE INCOME
DEVELOPMENT FEES	2,850		525		640		5,278		2,616		9,059		1,335		585		594		588		3,102
MANAGEMENT FEES (11)	8,857		2,099		2,051		1,944		2,070		8,164		2,030		2,146		1,793		1,254		7,223
LEASING & OTHER FEES	2,114		232		95		121		126		574		215		200		33		117		565
TOTAL - FEE INCOME	13,821		2,856		2,786		7,343		4,812		17,797		3,580		2,931		2,420		1,959		10,890

THIRD PARTY MANAGEMENT AND LEASING REVENUES	19,359		4,711		6,029		4,789		836		16,365		74		2		—		—		76

OTHER INCOME
TERMINATION FEES	1,549		43		21		—		64		128		19		1,965		155		813		2,952
TERMINATION FEES - DISCONTINUED OPERATIONS	77		192		13		3,232		75		3,512		—		—		—		—		—
INTEREST AND OTHER INCOME	539		1,281		84		87		61		1,513		259		100		136		66		561
INTEREST AND OTHER INCOME - DISCONTINUED OPERATIONS	39		(9	)	(6	)	10		5		—		4		(1	)	12		—		15
TOTAL INTEREST INCOME & OTHER	2,204		1,507		112		3,329		205		5,153		282		2,064		303		879		3,528

TOTAL FEE AND OTHER INCOME	35,384		9,074		8,927		15,461		5,853		39,315		3,936		4,997		2,723		2,838		14,494

GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS	—		—		—		7,384		75		7,459		—		—		4,531		45		4,576

THIRD PARTY MANAGEMENT AND LEASING EXPENSES	(16,585	)	(4,300	)	(4,607	)	(4,260	)	(508	)	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)

REIMBURSED EXPENSES	(6,208	)	(1,376	)	(1,357	)	(1,235	)	(3,095	)	(7,063	)	(1,910	)	(1,359	)	(1,097	)	(850	)	(5,216	)

SEPARATION EXPENSES	(197	)	(213	)	(79	)	(574	)	(1,118	)	(1,985	)	—		—		(520	)	—		(520	)

GENERAL AND ADMINISTRATIVE EXPENSES	(24,166	)	(6,623	)	(5,646	)	(5,255	)	(5,684	)	(23,208	)	(6,069	)	(4,552	)	(6,635	)	(4,684	)	(21,940	)

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	)	(2,200	)	(2,219	)	(2,211	)	(8,813	)
191 PEACHTREE TOWER	—		(28	)	(891	)	(891	)	(891	)	(2,701	)	(890	)	(871	)	(861	)	(861	)	(3,483	)
UNSECURED CREDIT FACILITY	(6,205	)	(1,648	)	(777	)	(725	)	(562	)	(3,712	)	(546	)	(522	)	(608	)	(584	)	(2,260	)
POST OAK CENTRAL	—		—		—		—		—		—		—		—		(565	)	(2,053	)	(2,618	)
MERIDIAN MARK PLAZA	(1,630	)	(404	)	(403	)	(402	)	(400	)	(1,609	)	(399	)	(397	)	(396	)	(395	)	(1,587	)
PROMENADE	—		—		—		—		—		—		—		—		(338	)	(1,230	)	(1,568	)
THE POINTS AT WATERVIEW	(958	)	(235	)	(234	)	(232	)	(230	)	(931	)	(228	)	(227	)	(225	)	(223	)	(903	)
MAHAN VILLAGE	—		—		(20	)	(43	)	(59	)	(122	)	(65	)	(81	)	(56	)	(68	)	(270	)
TERMINUS 100 (2)	(7,328	)	(1,816	)	(1,808	)	(1,802	)	(1,795	)	(7,221	)	(725	)	—		—		—		(725	)
OTHER	(3,284	)	(333	)	(8	)	—		—		(341	)	—		—		—		—		—
CAPITALIZED	600		426		489		544		177		1,636		101		57		119		241		518
SUBTOTAL - CONSOLIDATED	(27,784	)	(6,268	)	(5,875	)	(5,793	)	(5,997	)	(23,933	)	(4,935	)	(4,241	)	(5,149	)	(7,384	)	(21,709	)

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

($ in thousands, except per share amounts)



	2011		2012 1st		2012 2nd		2012 3rd		2012 4th		2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013
UNCONSOLIDATED DEBT:
TERMINUS 100 (2)	—		—		—		—		—		—		(530	)	(893	)	(887	)	(883	)	(3,193	)
TERMINUS 200 (3)	(393	)	(126	)	(129	)	(129	)	(128	)	(512	)	(199	)	(390	)	(390	)	(390	)	(1,369	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER	(1,441	)	(355	)	(353	)	(351	)	(349	)	(1,408	)	(347	)	(341	)	(336	)	(334	)	(1,358	)
EMORY POINT	—		—		—		—		(59	)	(59	)	(155	)	(229	)	(244	)	(239	)	(867	)
THE AVENUE MURFREESBORO	(1,812	)	(444	)	(437	)	(438	)	(430	)	(1,749	)	(431	)	(431	)	(175	)	—		(1,037	)
THE AVENUE EAST COBB	(196	)	(49	)	(48	)	(48	)	(48	)	(193	)	(48	)	(48	)	(43	)	—		(139	)
OTHER	(889	)	(205	)	(95	)	—		—		(300	)	—		—		—		—		—
SUBTOTAL - UNCONSOLIDATED	(4,731	)	(1,179	)	(1,062	)	(966	)	(1,014	)	(4,221	)	(1,710	)	(2,332	)	(2,075	)	(1,846	)	(7,963	)

TOTAL INTEREST EXPENSE	(32,515	)	(7,447	)	(6,937	)	(6,759	)	(7,011	)	(28,154	)	(6,645	)	(6,573	)	(7,224	)	(9,230	)	(29,672	)

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

OTHER EXPENSES
NONCONTROLLING INTERESTS	(2,087	)	(574	)	(631	)	(608	)	(604	)	(2,415	)	(507	)	(515	)	(489	)	(160	)	(1,671	)
PROPERTY TAXES & OTHER HOLDING COSTS	(2,394	)	(433	)	(320	)	(518	)	(467	)	(1,738	)	(274	)	(242	)	(827	)	(227	)	(1,570	)
PREDEVELOPMENT & OTHER	(1,574	)	(187	)	(76	)	(1,397	)	37		(1,623	)	(42	)	(63	)	(104	)	(186	)	(395	)
ACQUISITION AND RELATED COSTS	(468	)	(78	)	(67	)	(350	)	(299	)	(794	)	(235	)	(333	)	(6,859	)	(57	)	(7,484	)
OTHER - UNCONSOLIDATED	(467	)	(279	)	(138	)	(167	)	(55	)	(639	)	112		82		187		132		513
TOTAL - OTHER EXPENSES	(6,990	)	(1,551	)	(1,232	)	(3,040	)	(1,388	)	(7,209	)	(946	)	(1,071	)	(8,092	)	(498	)	(10,607	)

INCOME TAX (PROVISION) BENEFIT	186		(27	)	(33	)	(60	)	30		(90	)	(1	)	(1	)	(1	)	26		23

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED	(1,688	)	(364	)	(223	)	(256	)	(232	)	(1,075	)	(183	)	(189	)	(192	)	(189	)	(753	)
SHARE OF UNCONSOLIDATED JOINT VENTURES	(20	)	(5	)	(5	)	(5	)	—		(15	)	(22	)	(24	)	(27	)	39		(34	)
TOTAL - NON-REAL ESTATE DEPRECIATION AND AMORTIZATION	(1,708	)	(369	)	(228	)	(261	)	(232	)	(1,090	)	(205	)	(213	)	(219	)	(150	)	(787	)

PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS	(12,907	)	(3,227	)	(3,227	)	(3,226	)	(3,227	)	(12,907	)	(3,227	)	(5,883	)	(1,777	)	(1,777	)	(12,664	)

FFO	(76,875	)	13,488		13,152		25,685		14,167		66,492		11,461		14,158		17,226		34,289		77,134
WEIGHTED AVERAGE SHARES - BASIC	103,651		104,000		104,165		104,193		104,109		104,117		104,119		118,661		163,426		189,665		144,255
WEIGHTED AVERAGE SHARES - DILUTED	103,655		104,000		104,165		104,203		104,132		104,125		104,252		118,845		163,603		189,853		144,420
FFO PER SHARE - BASIC AND DILUTED	(0.74	)	0.13		0.13		0.25		0.14		0.64		0.11		0.12		0.11		0.18		0.53

(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 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.

(4) 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.

(5) 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.

(6) Discontinued Office Properties includes the discontinued NOI for the following consolidated Office Properties: Cosmopolitan Center, One Georgia Center, 8995 Westside Parkway, Galleria 75, Inhibitex, Lakeshore Park Plaza, and 600 University Park.

(7) The Company recognizes a 16% return on its investment in CW Investments as NOI from this investment. As of December 31, 2013, 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.

(8) Other includes sold unconsolidated properties as well as Other Unconsolidated NOI. The sold unconsolidated properties include: North Point MarketCenter, Viera MarketCenter, Greenbrier MarketCenter, Los Altos MarketCenter, The Avenue Murfreesboro, The Avenue East Cobb, The Avenue West Cobb, The Avenue Peachtree City, and The Avenue Viera. Previous quarters were restated to be consistent with the new presentation.

(9) Discontinued Retail Properties includes the discontinued NOI for the following consolidated Retail Properties: Tiffany Springs MarketCenter, 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.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

PORTFOLIO LISTING

OPERATING PROPERTIES

As of and for the Three Months Ended December 31, 2013



						Company's Share
	Property Description	Metropolitan Area	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased 4Q13	End of Period Leased 3Q13	Weighted Average Occupancy 4Q13 (1)	Weighted Average Occupancy 3Q13 (1)	% of Total Net Operating Income (2)(3)	Property Level Debt ($000)
I.	OFFICE PROPERTIES
	Greenway Plaza (4)	Houston	4,348,000	Consolidated	100%	95.4%	95.0%	95.3%	95.0%	40%	—
	Post Oak Central (5)	Houston	1,280,000	Consolidated	100%	94.5%	94.5%	92.5%	91.6%	9%	188,310
	777 Main	Fort Worth	980,000	Consolidated	100%	73.9%	91.4%	85.6%	92.2%	5%	—
	2100 Ross Avenue	Dallas	844,000	Consolidated	100%	79.2%	80.8%	58.2%	58.8%	2%	—
	816 Congress	Austin	435,000	Consolidated	100%	76.6%	76.1%	76.0%	75.2%	3%	—
	The Points at Waterview	Dallas	203,000	Consolidated	100%	89.6%	87.6%	90.0%	90.0%	1%	15,139
	TEXAS		8,090,000							60%	203,449

	191 Peachtree Tower	Atlanta	1,225,000	Consolidated	100%	86.6%	86.8%	86.1%	86.3%	8%	100,000
	The American Cancer Society Center	Atlanta	996,000	Consolidated	100%	82.4%	82.3%	83.3%	83.1%	6%	132,714
	Promenade	Atlanta	777,000	Consolidated	100%	89.2%	87.3%	70.2%	68.7%	5%	113,573
	Terminus 100	Atlanta	656,000	Unconsolidated	50%	98.3%	96.1%	96.0%	95.5%	4%	66,971
	North Point Center East (6)	Atlanta	540,000	Consolidated	100%	94.4%	93.3%	92.1%	91.6%	3%	—
	Terminus 200	Atlanta	566,000	Unconsolidated	50%	88.4%	88.4%	88.2%	87.8%	2%	41,000
	Meridian Mark Plaza	Atlanta	160,000	Consolidated	100%	99.0%	97.6%	97.6%	97.6%	2%	25,813
	Emory University Hospital Midtown Medical Office Tower	Atlanta	358,000	Unconsolidated	50%	98.1%	99.0%	98.5%	98.2%	2%	37,500
	GEORGIA		5,278,000							32%	517,571

	Lakeshore Park Plaza (7)(8)	Birmingham	197,000	Consolidated	100%	97.7%	99.0%	98.2%	96.7%	1%	—
	600 University Park Place (7)(8)	Birmingham	123,000	Consolidated	100%	98.2%	98.2%	98.2%	98.2%	1%	—
	ALABAMA		320,000							2%	—

	Gateway Village (9)	Charlotte	1,065,000	Unconsolidated	50%	100.0%	100.0%	100.0%	100.0%	1%	26,204
	NORTH CAROLINA		1,065,000							1%	26,204
	TOTAL OFFICE PROPERTIES		14,753,000							95%	747,224

II.	RETAIL PROPERTIES
	Mt. Juliet Village (9)	Nashville	91,000	Unconsolidated	50.5%	75.3%	73.8%	72.3%	72.3%	1%	3,055
	The Shops of Lee Village (9)	Nashville	74,000	Unconsolidated	50.5%	91.0%	89.1%	87.5%	87.5%	—%	2,757
	Creek Plantation Village (9)	Chattanooga	78,000	Unconsolidated	50.5%	96.4%	98.2%	96.4%	98.2%	—%	3,005
	TENNESSEE		243,000							1%	8,817

	Emory Point (Phase I)	Atlanta	80,000	Unconsolidated	75%	86.7%	84.0%	81.9%	81.9%	1%	7,078
	GEORGIA		80,000							1%	7,078

	Mahan Village (7)	Tallahassee	147,000	Consolidated	100%	90.5%	90.5%	90.5%	90.0%	1%	14,470
	Highland City Town Center (9)	Lakeland	96,000	Unconsolidated	50.5%	82.9%	85.8%	82.9%	83.9%	—%	5,177
	FLORIDA		243,000							1%	19,647
	TOTAL RETAIL PROPERTIES		566,000							3%	35,542

III.	APARTMENTS
	Emory Point (Phase I) (10)	Atlanta	404,000	Unconsolidated	75%	96.8%	92.3%	93.6%	91.4%	2%	35,741
	GEORGIA		404,000							2%	35,741
	TOTAL APARTMENTS		404,000							2%	35,741

	TOTAL PORTFOLIO		15,723,000							100%	818,507
(1)	Weighted average occupancy represents an average of the square footage occupied at the property during the quarter.
(2)	Net operating income represents rental property revenues less rental property operating expenses.
(3)	Calculation is based on amounts for the three months ended December 31, 2013.
(4)	Contains ten buildings - One Greenway Plaza, Two Greenway Plaza, Three Greenway Plaza, Four Greenway Plaza, Five Greenway Plaza, 3800 Buffalo Speedway, Eight Greenway Plaza, Nine Greenway Plaza, Eleven Greenway Plaza, and Twelve Greenway Plaza.
(5)	Contains three buildings - Post Oak Central I, Post Oak Central II, and Post Oak Central III.
(6)	Contains four buildings - 100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East.
(7)	This property is shown as 100% as it is owned through a consolidated joint venture. See Joint Venture Information included herein for further details.
(8)	This property was classified as held for sale as of December 31, 2013.
(9)	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.
(10)	This property consists of 443 units.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY PERFORMANCE (1)

LEASING AND OCCUPANCY



		Property Description	End of Period Leased 4Q13		End of Period Leased 3Q13		End of Period Leased 4Q12		Weighted Average Occupancy 4Q13 (2)		Weighted Average Occupancy 3Q13 (2)		Weighted Average Occupancy 4Q12 (2)

		Gateway Village	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
		NORTH CAROLINA	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

		The Points at Waterview	89.6	%	87.6	%	89.6	%	90.0	%	90.0	%	89.6	%
		TEXAS	89.6	%	87.6	%	89.6	%	90.0	%	90.0	%	89.6	%

		600 University Park Place	98.2	%	98.2	%	98.2	%	98.2	%	98.2	%	94.0	%
		Lakeshore Park Plaza	97.7	%	99.0	%	98.1	%	98.2	%	96.7	%	95.7	%
		ALABAMA	97.9	%	98.7	%	98.1	%	98.2	%	97.3	%	95.1	%

		Meridian Mark Plaza	99.0	%	97.6	%	97.6	%	97.6	%	97.6	%	97.6	%
		Terminus 100	98.3	%	96.1	%	96.1	%	96.0	%	95.5	%	94.6	%
		Emory University Hospital Midtown Medical Office Tower	98.1	%	99.0	%	98.8	%	98.5	%	98.2	%	98.6	%
		North Point Center East	94.4	%	93.3	%	90.8	%	92.1	%	91.6	%	92.1	%
		Terminus 200	88.4	%	88.4	%	87.8	%	88.2	%	87.8	%	87.8	%
		191 Peachtree Tower	86.6	%	86.8	%	87.4	%	86.1	%	86.3	%	82.3	%
		The American Cancer Society Center	82.4	%	82.3	%	82.3	%	83.3	%	83.1	%	83.1	%
		GEORGIA	88.9	%	88.5	%	88.3	%	88.3	%	88.2	%	86.9	%

		TOTAL PROPERTIES	90.7	%	90.5	%	90.3	%	90.4	%	90.2	%	89.0	%

(1	)	Same Properties include those office properties that were operational and stabilized on January 1, 2012, excluding properties subsequently sold.
(2	)	Weighted average occupancy represents an average of the square footage occupied at the property during the quarter.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY PERFORMANCE (1)

NET OPERATING INCOME

($ in thousands)



	Three Months Ended
	December 31, 2013	September 30, 2013	December 31, 2012		4Q13 vs. 3Q13 % Change		4Q13 vs. 4Q12 % Change
Rental Property Revenues (2)	26,155	26,483	25,084		(1.2	)%	4.3	%
Rental Property Operating Expenses (2)	10,998	11,311	10,473		(2.8	)%	5.0	%
Same Property Net Operating Income	15,157	15,172	14,611		(0.1	)%	3.7	%

Cash Basis Same Property Net Operating Income (3)	14,007	14,053	13,531		(0.2	)%	3.5	%

	Year Ended
	December 31,
	2013	2012	% Change
Rental Property Revenues (2)	104,474	100,151	4.3	%
Rental Property Operating Expenses (2)	43,853	42,209	3.9	%
Same Property Net Operating Income	60,621	57,942	4.6	%

Cash Basis Same Property Net Operating Income (3)	55,765	53,662	3.9	%

(1) Same Properties include those office properties that were operational and stabilized 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 AND SUBSIDIARIES

SQUARE FEET EXPIRING

As of December 31, 2013

OFFICE

As of December 31, 2013, the Company's office portfolio included 17 commercial office properties. The weighted average remaining lease term of these office properties was approximately seven years. 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:



Company Share	2014			2015			2016			2017			2018			2019			2020			2021			2022			2023 & Thereafter			Total
Square Feet Expiring	775,135			920,155			1,424,355			1,448,891			1,224,965			687,206			789,999			877,178			822,830			3,177,550			12,148,264
% of Leased Space	6		%	7		%	12		%	12		%	10		%	6		%	6		%	7		%	7		%	27		%	100		%
Annual Contractual Rent ($000s) (1)	$	14,540		$	18,508		$	27,017		$	29,273		$	25,803		$	15,542		$	18,271		$	21,055		$	16,797		$	79,521		$	266,327
Annual Contractual Rent per Square Foot (1)	$	18.76		$	20.11		$	18.97		$	20.20		$	21.06		$	22.62		$	23.13		$	24.00		$	20.41		$	25.03		$	21.92

RETAIL

As of December 31, 2013, the Company's retail portfolio included 6 retail properties. The weighted average remaining lease term of these retail properties was approximately thirteen years. 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:



Company Share	2014			2015			2016			2017			2018			2019			2020			2021			2022			2023 & Thereafter			Total
Square Feet Expiring (2)	12,896			6,666			6,048			16,265			18,739			5,015			4,546			8,545			15,026			238,513			332,259
% of Leased Space	4		%	2		%	2		%	4		%	6		%	2		%	1		%	3		%	5		%	71		%	100		%
Annual Contractual Rent ($000s) (1)	$	234		$	131		$	112		$	422		$	450		$	115		$	99		$	244		$	479		$	3,243		$	5,529
Annual Contractual Rent per Square Foot (1)	$	18.16		$	19.64		$	18.48		$	25.92		$	24.04		$	23.02		$	21.74		$	28.50		$	31.91		$	13.60		$	16.64

(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 AND SUBSIDIARIES

OFFICE LEASING STATISTICS (1)

OPERATING PROPERTIES

As of December 31, 2013



	Three Months Ended December 31, 2013												Year Ended December 31, 2013
	New			Renewal			Expansion			Total			New			Renewal			Expansion			Total
Gross leased square footage										431,184												1,399,814
Less: Leases less than one year, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(33,971)												(143,390)
Net leased square footage	86,766			232,016			78,431			397,213			555,868			572,646			127,910			1,256,424
Number of transactions	9			20			9			38			33			53			22			108
Lease term (years) (2)	8.73			6.81			6.32			7.13			10.28			8.07			6.06			8.84

Net rent per square foot (2)(3)	$	21.17		$	18.66		$	20.38		$	19.55		$	17.97		$	18.92		$	19.09		$	18.54
Total leasing costs per square foot (2)(4)	(6.31		)	(3.19		)	(5.16		)	(4.26		)	(7.30		)	(3.06		)	(5.65		)	(5.25		)
Net effective rent per square foot (2)	$	14.86		$	15.47		$	15.22		$	15.29		$	10.67		$	15.86		$	13.44		$	13.29

Second generation leased square footage (2)(5)										335,338												761,924
Increase in average second generation net rent per square foot (2)(3)(5)										23.2		%										12.9		%
Increase (decrease) in cash-basis second generation net rent per square foot (2)(5)(6)										11.3		%										(3.6		)%

(1) Excludes all non-office leasing, such as apartment and retail leasing.
(2) Weighted average.
(3) Represents straight-lined net rent per square foot (operating expenses deducted from gross leases) over the lease term.
(4) Includes tenant improvements, external leasing commissions, and free rent.
(5) Excludes leases executed for spaces that were vacant upon acquisition, new leases in a development property, and leases for spaces that have been vacant for one year or more.
(6) Represents increase (decrease) in net rent at the end of term paid by the prior tenant compared to net rent at beginning of term paid by the current tenant.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

TOP 20 TENANTS

As of December 31, 2013



	Tenant (1)	Company Share of Annualized Base Rent (2)	Average Remaining Lease Term (Years)
1.	Occidental Oil & Gas Corp.	7%	13
2.	Apache Corporation	4%	5
3.	Transocean Offshore Deepwater (3)	3%	2
4.	Deloitte & Touche	3%	10
5.	Invesco Management Group, Inc	2%	10
6.	American Cancer Society	2%	9
7.	Smith, Gambrell & Russell, LLP	2%	8
8.	Stewart Information Services	2%	3
9.	CPL Retail Energy, LP	2%	5
10.	ExxonMobil Corporation	2%	1
11.	US South Communications	2%	8
12.	Internap Network Services	2%	6
13.	CB Richard Ellis, Inc.	1%	7
14.	IPR-GDF SUEZ North America	1%	6
15.	Bank of America (4)	1%	3
16.	MedAssets Net Revenue Systems, LLC	1%	1
17.	FTS International Services, LLC	1%	5
18.	Northside Hospital	1%	9
19.	Gulf South Pipeline Company LP	1%	3
20.	Lockton Companies	1%	12
		41%	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)	During the fourth quarter of 2013, tenant signed an agreement to reduce their space during the second quarter of 2014.
(4)	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 AND SUBSIDIARIES

DEVELOPMENT PIPELINE (1)

As of December 31, 2013

($ in thousands)



Project	Type	Metropolitan Area	Company's Ownership Interest		Project Start Date	Number of Apartment Units/Square Feet	Estimated Project Cost (2)	Project Cost Incurred to Date (2)	Percent Leased		Percent Occupied		Initial Occupancy			Estimated Stabilization (5)

Colorado Tower	Office	Austin, TX	100	%	2Q13	373,000	$126,100	$21,681	22	%	—	%	4Q14	(3	)	4Q15

Emory Point (Phase II)	Mixed	Atlanta, GA	75	%	4Q13		$73,300	$13,378

Apartments						307			—	%	—	%	1Q15	(4	)	1Q16
Retail						43,000			—	%	—	%	2Q15	(4	)	3Q15

(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. Colorado Tower is being funded 100% by the Company and Emory Point Phase II is being funded with a combination of equity from the partners and a $46 million construction loan. Emory Point Phase II will initially be funded by equity contributions until the partners have contributed their required equity amounts. All subsequent funding is expected to come from the Emory Point Phase II construction loan. As of December 31, 2013, $1,000 was outstanding on the Emory Point Phase II construction loan.

(3) Represents the estimated quarter within which the Company estimates the first office square feet to be occupied.

(4) Represents the estimated quarter within which the first apartment/retail is expected to be occupied.

(5) Stabilization represents the quarter within which the Company estimates it will achieve 90% economic occupancy or one year from Initial Occupancy.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

INVENTORY OF LAND

As of December 31, 2013

($ in thousands)



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

Wildwood Office Park	Atlanta	50.00%	42
North Point	Atlanta	100.00%	35
Wildwood Office Park	Atlanta	100.00%	18
The Avenue Forsyth-Adjacent Land	Atlanta	100.00%	11
549 / 555 / 557 Peachtree Street	Atlanta	100.00%	1
Georgia			107

Round Rock	Austin	100.00%	51
Research Park V	Austin	100.00%	6
Texas			57

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%	5
Tennessee			5

TOTAL COMMERCIAL LAND ACRES HELD			224

COMPANY'S SHARE OF TOTAL ACRES HELD			172

COST BASIS OF COMMERCIAL LAND HELD			$	49,831

COMPANY'S SHARE OF COST BASIS OF COMMERCIAL LAND HELD			$	25,181

RESIDENTIAL (4)

Paulding County	Atlanta	50.00%	5,458
Blalock Lakes	Atlanta	100.00%	2,660
Callaway Gardens (5)	Atlanta	100.00%	218
Georgia			8,336

Padre Island	Corpus Christi	50.00%	15
Texas			15

TOTAL RESIDENTIAL LAND ACRES HELD			8,351

COMPANY'S SHARE OF TOTAL ACRES HELD			5,614

COST BASIS OF RESIDENTIAL LAND HELD			$	25,704

COMPANY'S SHARE OF COST BASIS OF RESIDENTIAL LAND HELD			$	19,605

GRAND TOTAL COMPANY'S SHARE OF ACRES			5,786

GRAND TOTAL COMPANY'S SHARE OF COST BASIS OF LAND HELD			$	44,786

(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 AND SUBSIDIARIES

DEBT OUTSTANDING

As of December 31, 2013

($ in thousands)



							Company's Share of Debt Maturities and Principal Payments
Description (Interest Rate Base, if not fixed)	Company's Ownership Interest			Rate End of Quarter		Maturity Date	2014		2015		2016		2017		2018		Thereafter		Total		Company's Share Recourse (1)

CONSOLIDATED DEBT

Floating Rate Debt
Mahan Village (LIBOR + 1.65%; $15mm facility)	100.00	%	(2)	1.82	%	9/12/14	$	14,470	$	—	$	—	$	—	$	—	$	—	$	14,470	$	3,618
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (3)	100.00	%		1.67	%	2/28/16	—		—		40,075		—		—		—		40,075		40,075
Total Floating Rate Debt							14,470		—		40,075		—		—		—		54,545		43,693

Fixed Rate Debt
The Points at Waterview	100.00	%		5.66	%	1/1/16	541		573		14,025		—		—		—		15,139		—
The American Cancer Society Center (4)	100.00	%		6.45	%	9/1/17	1,631		1,741		1,834		127,508		—		—		132,714		—
191 Peachtree Tower	100.00	%		3.35	%	10/1/18	—		—		1,305		2,013		96,682		—		100,000		—
Meridian Mark Plaza	100.00	%		6.00	%	8/1/20	405		430		456		484		514		23,524		25,813		—
Post Oak Central	100.00	%		4.26	%	10/1/20	3,200		3,339		3,485		3,636		3,794		170,856		188,310		—
Promenade	100.00	%		4.27	%	10/1/22	2,628		2,742		2,862		2,986		3,116		99,239		113,573		—
Total Fixed Rate Debt							8,405		8,825		23,967		136,627		104,106		293,619		575,549		—

TOTAL CONSOLIDATED DEBT							$	22,875	$	8,825	$	64,042	$	136,627	$	104,106	$	293,619	$	630,094	$	43,693

UNCONSOLIDATED DEBT

Floating Rate Debt
Emory Point (LIBOR + 1.75%, $61.1mm facility)	75.00	%		1.92	%	10/9/14	42,819		—		—		—		—		—		42,819		4,282
Highland City Town Center (LIBOR + 2.65%)	50.50	%	(2)	2.82	%	1/1/16	116		123		4,938		—		—		—		5,177		—
Creek Plantation Village (LIBOR + 2.65%)	50.50	%	(2)	2.82	%	1/1/16	67		71		2,867		—		—		—		3,005		—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)	50.50	%	(2)	3.02	%	1/1/16	58		62		2,935		—		—		—		3,055		1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)	50.50	%	(2)	3.02	%	1/1/16	53		56		2,648		—		—		—		2,757		1,388
Emory Point II (LIBOR + 1.85%, $46mm facility)	75.00	%		2.02	%	10/9/16	—		—		1		—		—		—		1		1
Total Floating Rate Debt							43,113		312		13,389		—		—		—		56,814		7,209

Fixed Rate Debt
Gateway Village (5)	50.00	%		6.41	%	12/1/16	8,439		8,997		8,768		—		—		—		26,204		—
Terminus 100	50.00	%		5.25	%	1/1/23	1,150		1,212		1,277		1,346		1,418		60,568		66,971		—
Terminus 200	50.00	%		3.79	%	1/1/23	—		—		559		770		39,671		—		41,000		—
Emory University Hospital Midtown Medical Office Tower	50.00	%		3.50	%	6/1/23	—		357		732		758		35,653		—		37,500		—
Total Fixed Rate Debt							9,589		10,566		11,336		2,874		76,742		60,568		171,675		—

TOTAL UNCONSOLIDATED DEBT							$	52,702	$	10,878	$	24,725	$	2,874	$	76,742	$	60,568	$	228,489	$	7,209

TOTAL DEBT							$	75,577	$	19,703	$	88,767	$	139,501	$	180,848	$	354,187	$	858,583	$	50,902

TOTAL MATURITIES (6)							$	57,289	$	—	$	67,489	$	127,508	$	96,682	$	399,803	$	748,771
% OF MATURITIES							8%		—%		9%		17%		13%		53%		100%

Floating and Fixed Rate Debt Analysis



	Total Debt ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	111,359	13	%	1.94	%	1.4
Fixed Rate Debt	747,224		87	%	4.72	%	6.5
Total Debt	$	858,583	100	%	4.36	%	5.8

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

(2) 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.

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

(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) 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.

(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 AND SUBSIDIARIES

JOINT VENTURE INFORMATION

As of December 31, 2013



		Cash Flows to Cousins
Unconsolidated Joint Ventures	Properties	Operating	Capital Transactions/Other	GAAP Accounting
Charlotte Gateway Village LLC	Gateway Village	Preferred return on investment of 11.46%.	50% of proceeds after partner receives $66.8 million until a 17% leveraged IRR. Thereafter, 20% of remaining proceeds.	Recognize 11.46% of invested capital each period.
Terminus Office Holdings LLC	Terminus 100, Terminus 200	50% of operating cash flows until partner receives an agreed upon return. Thereafter, receive an additional promoted interest if certain return thresholds are met.	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, partner 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 (Phase I)	75% of operating cash flows.	75% of proceeds.	Recognize 75% of net income from venture.
EP II LLC	Emory Point (Phase II)	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
Cousins/Callaway LLC	Land	The first $2.0 million of cash flows; 77% of the next $17.7 million of cash flows; 50% of remaining cash flows until a IRR of 20%; 40% of remaining cash flows until a 25% IRR; 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%, 87% of remaining cash flows after partner receives 9% return.	All proceeds until a 16% leveraged IRR. Then 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 AND SUBSIDIARIES

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		2013 2nd		2013 3rd		2013 4th		2013
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		1,524		2,642		5,108		12,139
SECOND GENERATION BUILDING IMPROVEMENTS	464		155		730		137		250		1,271		79		1,589		200		1,946		3,814
	17,067		2,087		3,122		4,962		4,281		14,453		2,944		3,113		2,842		7,054		15,954
RETAIL:
SECOND GENERATION LEASING RELATED COSTS	2,074		246		64		116		180		605		88		239		133		—		460
TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX	19,140		2,333		3,186		5,077		4,461		15,058		3,032		3,352		2,976		7,054		16,414

NET OPERATING INCOME:

OFFICE CONSOLIDATED PROPERTIES	53,889		15,506		15,481		16,233		16,335		63,555		17,526		18,841		25,175		41,083		102,625
RETAIL CONSOLIDATED PROPERTIES	(3	)	—		4		57		259		320		389		390		364		151		1,294
NET OPERATING INCOME - CONSOLIDATED	53,889		15,506		15,485		16,290		16,594		63,875		17,915		19,231		25,539		41,234		103,919

RENTAL PROPERTY REVENUES	94,704		26,789		27,393		29,536		30,486		114,208		33,123		37,099		47,575		76,620		194,420
RENTAL PROPERTY OPERATING EXPENSES	(40,815	)	(11,283	)	(11,908	)	(13,246	)	(13,892	)	(50,329	)	(15,208	)	(17,868	)	(22,036	)	(35,386	)	(90,498	)
NET OPERATING INCOME - CONSOLIDATED	53,889		15,506		15,485		16,290		16,594		63,879		17,915		19,231		25,539		41,234		103,919

INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES	51,985		10,702		9,280		8,110		5,825		33,918		3,000		2,940		2,870		1,742		10,552
RENTAL PROPERTY OPERATING EXPENSES	(19,575	)	(3,223	)	(3,276	)	(2,662	)	(1,775	)	(10,935	)	(1,194	)	(1,182	)	(1,118	)	(668	)	(4,162	)
NET OPERATING INCOME	32,410		7,479		6,004		5,448		4,050		22,983		1,806		1,758		1,752		1,074		6,390

TERMINATION FEES	77		192		13		3,232		75		3,512		—		—		—		—		—
INTEREST AND OTHER INCOME (EXPENSE)	70		(9	)	(6	)	10		5		(3	)	4		(1	)	12		—		15
FFO FROM DISCONTINUED OPERATING PROPERTIES	32,557		7,662		6,011		8,690		4,130		26,492		1,810		1,757		1,764		1,074		6,405

THIRD PARTY MANAGEMENT AND LEASING REVENUES	19,359		4,711		6,029		4,789		836		16,365		74		2		—		—		76
THIRD PARTY MANAGEMENT AND LEASING EXPENSES	(16,585	)	(4,300	)	(4,607	)	(4,260	)	(508	)	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)
FFO FROM THIRD PARTY MANAGEMENT AND LEASING	2,774		411		1,422		529		328		2,690		21		(25	)	(14	)	(3	)	(21	)

FFO FROM DISCONTINUED OPERATIONS	35,331		8,073		7,433		9,219		4,458		29,182		1,831		1,732		1,750		1,071		6,384

DEPRECIATION AND AMORTIZATION OF REAL ESTATE	(23,395	)	(4,753	)	(3,499	)	(4,133	)	(1,097	)	(13,479	)	(1,053	)	(1,046	)	(492	)	(494	)	(3,085	)
IMPAIRMENT LOSSES	(10,945	)	(12,233	)	—		—		(1,558	)	(13,791	)	—		—		—		—		—

INCOME FROM DISCONTINUED OPERATIONS	991		(8,913	)	3,934		5,086		1,803		1,912		778		686		1,258		577		3,299

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		283		155		70		968
OUTPARCEL SALES	—		—		—		—		—		—		503		150		—		—		653
TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES	3,015		949		535		732		400		2,616		963		433		155		70		1,621

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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		2013 2nd		2013 3rd		2013 4th	2013
RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES	2,941		564		416		354	87		1,421		460		283		147		65	955
OUTPARCEL COST OF SALES	(50	)	—		—		—	—		—		503		150		—		—	653
TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED	2,891		564		416		354	87		1,421		963		433		147		65	1,608

TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES	3,258		—		(30	)	—	3,750		3,720		243		276		602		24	1,145
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY
SALES LESS COST OF SALES - CONSOLIDATED	3,382		385		89		378	4,063		4,915		243		276		610		29	1,158

SUMMARY - CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES	74		385		119		378	313		1,195		—		—		8		5	13
OUTPARCEL SALES LESS COST OF SALES	50		—		—		—	—		—		—		—		—		—	—
TRACT SALES LESS COST OF SALES	3,258		—		(30	)	—	3,750		3,720		243		276		602		24	1,145
TOTAL CONSOLIDATED SALES LESS COST OF SALES	3,382		385		89		378	4,063		4,915		243		276		610		29	1,158

OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES - CONSOLIDATED:
OTHER SALES	4,664		—		174		—	520		694		340		—		—		—	340
OTHER COST OF SALES	(2,487	)	—		(119	)	—	(294	)	(413	)	(182	)	—		—		37	(145	)
OTHER SALES LESS COST OF SALES - CONSOLIDATED	2,177		—		55		—	226		281		158		—		—		37	195

UNCONSOLIDATED:
OTHER SALES - UNCONSOLIDATED:
OTHER SALES	—		—		—		—	—		—		—		—		—		—	—
OTHER COST OF SALES	(5	)	—		—		—	—		—		—		—		—		—	—
OTHER, NET	77		(1	)	(2	)	—	31		28		10		(8	)	(6	)	—	(4	)
OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED	72		(1	)	(2	)	—	31		28		10		(8	)	(6	)	—	(4	)
TOTAL OTHER SALES FFO	2,249		(1	)	53		—	257		309		168		(8	)	(6	)	37	191

UNCONSOLIDATED:
RESIDENTIAL LOT AND TRACT SALES - UNCONSOLIDATED:
RESIDENTIAL LOT SALES	7,343		—		—		—	—		—		—		—		—		—	—
OUTPARCEL SALES	—		—		—		—	—		—		—		—		475		—	475
TRACT SALES	794		176		—		—	—		176		—		—		90		—	90
TOTAL RESIDENTIAL LOT AND TRACT SALES	8,137		176		—		—	—		176		—		—		565		—	565

RESIDENTIAL LOT AND TRACT COST OF SALES - UNCONSOLIDATED:
RESIDENTIAL LOT COST OF SALES	5,770		—		—		—	—		—		—		—		—		—	—
OUTPARCEL COST OF SALES	—		—		—		—	—		—		—		—		360		—	360
TRACT COST OF SALES	513		176		—		—	—		176		—		—		90		—	90
TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES	6,283		176		—		—	—		176		—		—		450		—	450
RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES -UNCONSOLIDATED	1,854		—		—		—	—		—		—		—		115		—	115

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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		2013 2nd		2013 3rd		2013 4th		2013

SUMMARY - UNCONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES	1,573		—		—		—		—		—		—		—		—		—		—
OUTPARCEL SALES LESS COST OF SALES	—		—		—		—		—		—		—		—		115		—		115
TRACT SALES LESS COST OF SALES	281		—		—		—		—		—		—		—		—		—		—
RESIDENTIAL LOT AND TRACT SALES LESS COST OF
SALES - SHARE OF UNCONSOLIDATED	1,854		—		—		—		—		—		—		—		115		—		115
TOTAL RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES	5,236		385		89		378		4,063		4,915		243		276		725		29		1,273

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		4,206		4,289		4,327		16,195
RETAIL PROPERTIES	10,666		2,608		2,666		2,671		2,774		10,719		3,031		3,000		2,392		849		9,272
OTHER PROPERTIES	—		—		—		—		122		122		43		376		861		1,020		2,300
NET OPERATING INCOME	24,258		6,269		5,937		5,881		5,509		23,596		6,447		7,582		7,542		6,196		27,767
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES	1,854		—		—		—		—		—		—		—		115		—		115
OTHER SALES LESS COST OF SALES	73		(1	)	(2	)	—		31		28		10		(8	)	(6	)	—		(4	)
TERMINATION FEES	73		42		18		—		2		62		19		—		—		—		19
INTEREST EXPENSE	(4,338	)	(1,179	)	(1,062	)	(966	)	(1,014	)	(4,221	)	(1,710	)	(2,332	)	(2,075	)	(1,846	)	(7,963	)
OTHER EXPENSE	(467	)	(279	)	(138	)	(167	)	(55	)	(639	)	112		82		187		132		513
IMPAIRMENT LOSSES	(29,003	)	—		—		—		—		—		—		—		—		—		—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS	(20	)	(5	)	(5	)	(5	)	—		(15	)	(22	)	(24	)	(27	)	39		(34	)
FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES	(7,570	)	4,847		4,748		4,743		4,473		18,811		4,856		5,300		5,736		4,521		20,413
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET	—		—		7,509		—		23,153		30,662		—		—		60,421		(77	)	60,344
DEPRECIATION AND AMORTIZATION OF REAL ESTATE	(10,337	)	(2,661	)	(2,495	)	(2,475	)	(2,584	)	(10,215	)	(3,204	)	(4,167	)	(3,079	)	(2,985	)	(13,435	)

NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES	(17,906	)	2,186		9,762		2,268		25,043		39,258		1,652		1,133		63,078		1,459		67,322

MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END	6.41		7.58		7.75		7.94		8.35		8.35		10.69		10.10		10.29		10.30		10.30
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END	103,702		104,139		104,215		104,136		104,090		104,090		104,127		120,688		189,660		189,666		189,666
COMMON STOCK CAPITALIZATION	664,730		789,374		807,666		826,840		869,152		869,152		1,113,118		1,218,949		1,951,601		1,953,560		1,953,560

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		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		94,775		94,775		94,775		94,775

DEBT	539,442		529,168		461,021		518,630		425,410		425,410		344,832		340,374		642,834		630,094		630,094
SHARE OF UNCONSOLIDATED DEBT	162,127		164,217		156,364		165,571		170,480		170,480		266,069		281,960		230,280		228,489		228,489
DEBT (2)	701,569		693,385		617,385		684,201		595,890		595,890		610,901		622,334		873,114		858,583		858,583

TOTAL MARKET CAPITALIZATION	1,535,901		1,652,361		1,594,654		1,680,643		1,634,644		1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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		2013 2nd		2013 3rd		2013 4th		2013
LEVERAGE RATIOS
DEBT (2)	701,569		693,385		617,385		684,201		595,890		595,890		610,901		622,334		873,114		858,583		858,583
TOTAL MARKET CAPITALIZATION	1,535,901		1,652,361		1,594,654		1,680,643		1,634,644		1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918
DEBT (2) / TOTAL MARKET CAPITALIZATION	45.7%		42.0%		38.7%		40.7%		36.5%		36.5%		32.3%		32.1%		29.9%		29.5%		29.5%

TOTAL ASSETS-CONSOLIDATED	1,235,535		1,199,634		1,135,315		1,199,101		1,124,242		1,124,242		1,096,444		1,200,788		2,263,766		2,273,206		2,273,206
ACCUMULATED DEPRECIATION-CONSOLIDATED	289,473		302,782		281,739		294,710		258,258		258,258		221,429		245,608		238,297		257,151		257,151
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2)	516,686		467,303		454,388		461,500		403,141		403,141		575,323		562,475		432,750		441,928		441,928
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	(160,587	)	(141,180	)	(140,303	)	(139,782	)	(97,868	)	(97,868	)	(128,541	)	(127,948	)	(98,183	)	(107,082	)	(107,082	)
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		1,880,923		2,836,630		2,865,203		2,865,203
DEBT (2)	701,569		693,385		617,385		684,201		595,890		595,890		610,901		622,334		873,114		858,583		858,583
UNDEPRECIATED ASSETS (2)	1,881,107		1,828,539		1,731,139		1,815,529		1,687,773		1,687,773		1,764,655		1,880,923		2,836,630		2,865,203		2,865,203
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)	37.3%		37.9%		35.7%		37.7%		35.3%		35.3%		34.6%		33.1%		30.8%		30.0%		30.0%

DEBT (2)	701,569		693,385		617,385		684,201		595,890		595,890		610,901		622,334		873,114		858,583		858,583
PREFERRED STOCK AT LIQUIDATION VALUE	169,602		169,602		169,602		169,602		169,602		169,602		169,602		94,775		94,775		94,775		94,775
DEBT (2) + PREFERRED	871,171		862,987		786,987		853,803		765,492		765,492		780,503		717,109		967,889		953,358		953,358
TOTAL MARKET CAPITALIZATION	1,535,901		1,652,361		1,594,654		1,680,643		1,634,644		1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION	56.7%		52.2%		49.4%		50.8%		46.8%		46.8%		41.2%		37.0%		33.2%		32.8%		32.8%

DEBT (2) + PREFERRED	871,171		862,987		786,987		853,803		765,492		765,492		780,503		717,109		967,889		953,358		953,358
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		1,880,923		2,836,630		2,865,203		2,865,203
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)	46.3%		47.2%		45.5%		47.0%		45.4%		45.4%		44.2%		38.1%		34.1%		33.3%		33.3%

EBITDA (2)
FFO	(76,875	)	13,488		13,152		25,685		14,167		66,492		11,461		14,158		17,226		34,289		77,134
INTEREST EXPENSE	32,515		7,447		6,937		6,759		7,011		28,154		6,645		6,573		7,224		9,230		29,672
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION	1,708		369		228		261		232		1,090		205		213		219		150		787
INCOME TAX PROVISION (BENEFIT)	(186	)	27		33		60		(30	)	90		1		1		1		(26	)	(23	)
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	)	—		—		(4,531	)	(45	)	(4,576	)
PARTICIPATION INTEREST INCOME	—		—		—		(3,366	)	—		(3,366	)	—		—		—		—		—
ACQUISITION AND RELATED COSTS	468		78		67		350		299		794		235		333		6,859		57		7,484
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS	12,907		3,227		3,227		3,226		3,227		12,907		3,227		5,883		1,777		1,777		12,664
EBITDA (2)	100,682		24,730		23,644		26,079		24,831		99,284		21,774		27,161		28,775		45,432		123,142

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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	2013 2nd	2013 3rd		2013 4th		2013
COVERAGE RATIOS (2)
EBITDA	100,682		24,730		23,644	26,079		24,831		99,284		21,774	27,161	28,775		45,432		123,142
INTEREST EXPENSE	32,515		7,447		6,937	6,759		7,011		28,154		6,645	6,573	7,224		9,230		29,672
INTEREST COVERAGE RATIO (2)	3.10		3.32		3.41	3.86		3.54		3.53		3.28	4.13	3.98		4.92		4.15

INTEREST EXPENSE	32,515		7,447		6,937	6,759		7,011		28,154		6,645	6,573	7,224		9,230		29,672
SCHEDULED PRINCIPAL PAYMENTS	7,279		2,123		2,045	1,755		1,846		7,769		1,855	1,728	1,528		1,922		7,032
PREFERRED STOCK DIVIDENDS	12,907		3,227		3,227	3,226		3,227		12,907		3,227	3,227	1,777		1,777		10,008
FIXED CHARGES	52,701		12,797		12,209	11,740		12,084		48,830		11,727	11,528	10,529		12,929		46,712
EBITDA	100,682		24,730		23,644	26,079		24,831		99,284		21,774	27,161	28,775		45,432		123,142
FIXED CHARGES COVERAGE RATIO (2)	1.91		1.93		1.94	2.22		2.05		2.03		1.86	2.36	2.73		3.51		2.64

DEBT (2)	701,569		693,385		617,385	684,201		595,890		595,890		610,901	622,334	873,114		858,583		858,583
ANNUALIZED EBITDA (3)	108,800		98,920		94,576	104,316		99,324		99,324		87,096	108,644	115,100		181,728		181,728
DEBT (2) / ANNUALIZED EBITDA (3)	6.45		7.01		6.53	6.56		6.00		6.00		7.01	5.73	7.59		4.72		4.72

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH COMMON DIVIDENDS	18,651		4,687		4,686	4,690		4,685		18,748		4,689	5,431	8,536		8,536		27,192
FFO	(76,875	)	13,488		13,152	25,685		14,167		66,492		11,461	14,158	17,226		34,289		77,134
FFO PAYOUT RATIO	(24.3)%		34.8%		35.6%	18.3%		33.1%		28.2%		40.9%	38.4%	49.6%		24.9%		35.3%

FFO BEFORE CERTAIN CHARGES
FFO	(76,875	)	13,488		13,152	25,685		14,167		66,492		11,461	14,158	17,226		34,289		77,134
PREFERRED STOCK ORIGINAL ISSUANCE COSTS	—		—		—	—		—		—		—	2,656	—		—		2,656
IMPAIRMENT LOSSES (2)	129,134		—		—	488		—		488		—	—	—		—		—
PREDEVELOPMENT & OTHER CHARGES	937		(1,185	)	—	—		—		(1,185	)	—	—	—		—		—
LOSS ON DEBT EXTINGUISHMENT	74		94		—	—		—		94		—	—	—		—		—
ACQUISITION AND RELATED COSTS	468		78		67	350		299		794		235	333	6,859		57		7,484
GAIN ON SALE OF THIRD PARTY BUSINESS	—		—		—	(7,384	)	(75	)	(7,459	)	—	—	(4,531	)	(45	)	(4,576	)
PARTICIPATION INTEREST INCOME	—		—		—	(3,366	)	—		(3,366	)	—	—	—		—		—
SEPARATION CHARGES	197		213		79	574		1,118		1,985		—	—	520		—		520
FFO BEFORE CERTAIN CHARGES	53,935		12,688		13,298	16,347		15,509		57,843		11,696	17,147	20,074		34,301		83,218
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO	34.6%		36.9%		35.2%	28.7%		30.2%		32.4%		40.1%	31.7%	42.5%		24.9%		32.7%

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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		2013 2nd		2013 3rd		2013 4th		2013
FAD (2)
FFO	(76,875	)	13,488		13,152		25,685		14,167		66,492		11,461		14,158		17,226		34,289		77,134
FAS 13	(11,076	)	(2,686	)	(2,152	)	(1,823	)	(1,659	)	(8,319	)	(2,346	)	(2,204	)	(3,244	)	(5,032	)	(12,826	)
ABOVE AND BELOW MARKET RENTS	(26	)	108		87		124		174		493		(185	)	(586	)	(994	)	(2,020	)	(3,785	)
SECOND GENERATION CAPEX	(19,140	)	(2,333	)	(3,186	)	(5,077	)	(4,461	)	(15,058	)	(3,032	)	(3,352	)	(2,976	)	(7,054	)	(16,414	)
FAD (2)	(107,117	)	8,577		7,901		18,909		8,222		43,608		5,897		8,016		10,012		20,183		44,109
COMMON DIVIDENDS	18,651		4,687		4,686		4,690		4,685		18,748		4,689		5,431		8,536		8,536		27,192
FAD PAYOUT RATIO (2)	(17.4)%		54.7%		59.3%		24.8%		57.0%		43.0%		79.5%		67.7%		85.3%		42.3%		61.6%

FAD BEFORE CERTAIN CHARGES
FAD (2)	(107,117	)	8,577		7,901		18,909		8,222		43,608		5,897		8,016		10,012		20,183		44,109
PREFERRED STOCK ORIGINAL ISSUANCE COSTS	—		—		—		—		—		—		—		2,656		—		—		2,656
IMPAIRMENT LOSSES (2)	129,134		—		—		488		—		488		—		—		—		—		—
PREDEVELOPMENT & OTHER CHARGES	937		(1,185	)	—		—		—		(1,185	)	—		—		—		—		—
LOSS ON DEBT EXTINGUISHMENT	74		94		—		—		—		94		—		—		—		—		—
ACQUISITION AND RELATED COSTS	468		78		67		350		299		794		235		333		6,859		57		7,484
GAIN ON SALE OF THIRD PARTY BUSINESS	—		—		—		(7,384	)	(75	)	(7,459	)	—		—		(4,531	)	(45	)	(4,576	)
PARTICIPATION INTEREST INCOME	—		—		—		(3,366	)	—		(3,366	)	—		—		—		—		—
SEPARATION CHARGES	197		213		79		574		1,118		1,984		—		—		520		—		520
FAD BEFORE CERTAIN CHARGES	23,693		7,777		8,047		9,571		9,564		34,958		6,132		11,005		12,860		20,195		50,193
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO	78.7%		60.3%		58.2%		49.0%		49.0%		53.6%		76.5%		49.3%		66.4%		42.3%		54.2%

OPERATIONS RATIOS
REVENUES	118,125		31,860		30,960		37,690		36,334		136,846		38,262		42,521		50,434		79,520		210,741
REVENUES FROM DISCONTINUED OPERATIONS	71,553		15,613		15,330		16,149		6,747		53,839		3,082		2,951		2,888		1,750		10,668
REVENUES INCLUDING DISCONTINUED OPERATIONS	189,678		47,473		46,290		53,839		43,081		190,685		41,344		45,472		53,322		81,270		221,409

GENERAL AND ADMINISTRATIVE EXPENSES	24,166		6,623		5,646		5,255		5,684		23,208		6,069		4,552		6,635		4,684		21,940
REVENUES INCLUDING DISCONTINUED OPERATIONS	189,678		47,473		46,290		53,839		43,081		190,685		41,344		45,472		53,322		81,270		221,409
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS	12.7%		14.0%		12.2%		9.8%		13.2%		12.2%		14.7%		10.0%		12.4%		5.8%		9.9%

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		1,880,923		2,836,630		2,865,203		2,865,203
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS	1.3%		1.4%		1.3%		1.2%		1.3%		1.3%		1.4%		1.0%		0.9%		0.7%		0.7%

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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

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



	Three Months Ended							Year Ended
	December 31, 2013		December 31, 2012			September 30, 2013		December 31, 2013		December 31, 2012
Net Operating Income
Same Property	$	15,157	$	14,611		$	15,172	$	60,621	$	57,942
Non-Same Property	33,349		11,542			19,660		77,459		52,515
Consolidated Property Net Operating Income	$	48,506	$	26,153		$	34,832	$	138,080	$	110,457

Less: Non-Cash Items
Straight-line rent	$	5,032	$	2,164		$	3,139	$	13,008	$	10,287
Other	1,679		(63		)	665		2,491		(41		)
Non-Cash Items	6,711		2,101			3,804		15,499		10,246

Cash Basis Property Net Operating Income
Same Property	14,007		13,531			14,034		55,765		53,662
Non-Same Property	27,768		9,164			16,973		65,425		45,078
Cash Basis Property Net Operating Income	$	41,775	$	22,695		$	31,007	$	121,190	$	98,740

Net Operating Income (4)
Operating Properties	$	41,234	$	16,594		$	25,539	$	103,922	$	63,877
Discontinued Operations	1,076		4,050			1,755		6,395		22,984
Share of Unconsolidated Joint Ventures	6,196		5,509			7,538		27,763		23,596
Total Net Operating Income	$	48,506	$	26,153		$	34,832	$	138,080	$	110,457

(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.
(4) SEE RECONCILIATION ABOVE WITHIN PREVIOUS PAGES OF THE CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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, acquisition and related costs, and preferred stock dividends and original issuance costs. 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 preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and related costs, 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. “FFO Before Certain Charges” represents FFO before preferred share issuance costs write off, non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, acquisition and related costs, 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 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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