8-KEarningsReleaseEx99.1 1Q14

EX-99.1 2 a8-kearningsreleaseex9911q.htm EXHIBIT 8-KEarningsReleaseEx99.1 1Q14

COUSINS PROPERTIES INCORPORATED

QUARTERLY INFORMATION PACKAGE

For the Quarter Ended March 31, 2014

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	23
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; 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 PROPERTIES REPORTS

FIRST QUARTER 2014 RESULTS

Highlights


•	Funds From Operations for the first quarter was $0.19 per share, up from $0.11 in the prior year.


•	Cash basis same property net operating income for the first quarter was up 10.2% over the prior year.

ATLANTA (May 7, 2014) - Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2014.

“The strong results in the quarter reflect the health of our markets, the quality of our assets, and the intense focus of our team in providing exceptional value to our customers every day,” said Larry Gellerstedt, President and Chief Executive Officer of Cousins. “The 454,000 square feet of leasing was highlighted by the 110,000 square feet of new activity at Colorado Tower in Austin.”

Portfolio Activity


•	Leased or renewed 454,000 square feet of office and retail space during the first quarter.


•	Average second generation net effective rent per square foot for office properties for the first quarter was up 12.7% over the prior year.

Transaction Activity


•	Sold the 600 University Park office building for $19.7 million, generating a gain of $6.4 million.


•	Issued 8.7 million shares of common stock for net proceeds of $98.6 million.


•	Increased the common stock dividend from $0.045 to $0.075 per share.


•	Subsequent to quarter end, redeemed all outstanding shares of the Company’s Series B Cumulative Redeemable Preferred Stock for $94.8 million, excluding accrued dividends.

Financial Results

FFO was $36.2 million, or $0.19 per share, for the first quarter of 2014, compared with $11.5 million, or $0.11 per share, for the first quarter of 2013.

Net income available to common stockholders was $5.2 million, or $0.03 per share, for the first quarter of 2014, compared with net income available of $53.2 million, or $0.51 per share, for the first quarter of 2013. The three months ended March 31, 2013 included gains on the sale of 50% of the Company's interest in Terminus 100 and the acquisition, achieved in stages, of Terminus 200.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Thursday, May 8, 2014, to discuss the results of the quarter ended March 31, 2014. The number to call for this interactive teleconference is (212) 231-2924.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21713241. The replay can be accessed on the Company's website, www.cousinsproperties.com, through the “Q1 2014 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
	March 31,
	2014			2013
Revenues:
Rental property revenues	$	77,484		$	33,125
Fee income	2,338			3,579
Other	1,901			1,558
	81,723			38,262
Costs and expenses:
Rental property operating expenses	34,857			15,208
Reimbursed expenses	932			1,910
General and administrative expenses	5,611			6,070
Interest expense	7,167			4,935
Depreciation and amortization	34,140			11,246
Separation expenses	84			—
Acquisition and related costs	22			235
Other	494			1,455
	83,307			41,059
Loss from continuing operations before taxes, unconsolidated joint ventures, and sale of investment properties	(1,584		)	(2,797		)
Benefit (provision) for income taxes from operations	12			(1		)
Income from unconsolidated joint ventures	1,286			1,652
Loss from continuing operations before gain on sale of investment properties	(286		)	(1,146		)
Gain on sale of investment properties	161			57,154
Income (loss) from continuing operations	(125		)	56,008
Income from discontinued operations:
Income from discontinued operations	892			778
Gain on sale of investment properties	6,365			118
	7,257			896
Net income	7,132			56,904
Net income attributable to noncontrolling interests	(155		)	(507		)
Net income attributable to controlling interests	6,977			56,397
Dividends to preferred stockholders	(1,777		)	(3,227		)
Net income available to common stockholders	$	5,200		$	53,170
Per common share information — basic and diluted:
Income (loss) from continuing operations attributable to controlling interest	$	(0.01	)	$	0.50
Income from discontinued operations	0.04			0.01
Net income available to common stockholders	$	0.03		$	0.51
Weighted average shares — basic	191,739			104,119
Weighted average shares — diluted	191,952			104,252
Dividends declared per common share	$	0.075		$	0.045

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

(unaudited; in thousands, except per share amounts)



	Three Months Ended March 31,
	2014			2013
Net Income Available to Common Stockholders	$	5,200		$	53,170
Depreciation and amortization of real estate assets:
Consolidated properties	33,955			11,063
Discontinued properties	—			1,053
Share of unconsolidated joint ventures	2,998			3,204
(Gain) loss on sale of depreciated properties:
Consolidated properties	—			(56,911		)
Discontinued properties	(6,358		)	(118		)
Share of unconsolidated joint ventures	387			—
Funds From Operations Available to Common Stockholders	$	36,182		$	11,461
Per Common Share — Basic and Diluted:
Net Income Available	$	0.03		$	0.51
Funds From Operations	$	0.19		$	0.11
Weighted Average Shares — Basic	191,739			104,119
Weighted Average Shares — Diluted	191,952			104,252

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. Second generation leases exclude 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.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)



	March 31, 2014			December 31, 2013
	(unaudited)
Assets:
Real estate assets:
Operating properties, net of accumulated depreciation of $258,752 and $235,707 in 2014 and 2013, respectively	$	1,822,086		$	1,828,437
Projects under development	34,816			21,681
Land	34,727			35,053
	1,891,629			1,885,171
Operating properties and related assets held for sale, net of accumulated depreciation of $12,001 and $21,444 in 2014 and 2013, respectively	11,463			24,554
Cash and cash equivalents	29,080			975
Restricted cash	3,478			2,810
Notes and accounts receivable, net of allowance for doubtful accounts of $1,897 and $1,827 in 2014 and 2013, respectively	11,456			11,778
Deferred rents receivable	46,963			39,969
Investment in unconsolidated joint ventures	107,106			107,082
Intangible assets, net of accumulated amortization of $49,112 and $37,544 in 2014 and 2013, respectively	159,200			170,973
Other assets	33,636			29,894
Total assets	$	2,294,011		$	2,273,206
Liabilities:
Notes payable	$	587,442		$	630,094
Accounts payable and accrued expenses	55,493			76,668
Deferred income	24,781			25,754
Intangible liabilities, net of accumulated amortization of $9,344 and $6,323 in 2014 and 2013, respectively	63,455			66,476
Other liabilities	14,682			15,242
Total liabilities	745,853			814,234
Commitments and contingencies	—			—
Equity:
Stockholders' investment:
Preferred stock, 7.50% Series B cumulative redeemable preferred stock, $1 par value, $25 liquidation preference, 20,000,000 shares authorized, 3,791,000 shares issued and outstanding in 2014 and 2013	94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 201,992,661 and 193,236,454 shares issued in 2014 and 2013, respectively	201,993			193,236
Additional paid-in capital	1,510,409			1,420,951
Treasury stock at cost, 3,570,082 shares in 2014 and 2013	(86,840		)	(86,840		)
Distributions in excess of cumulative net income	(173,752		)	(164,721		)
	1,546,585			1,457,401
Nonredeemable noncontrolling interests	1,573			1,571
Total equity	1,548,158			1,458,972
Total liabilities and equity	$	2,294,011		$	2,273,206

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

(Unaudited, in thousands)



	Three Months Ended March 31,
	2014			2013
Net Operating Income - Consolidated Properties
Rental property revenues	$	77,484		$	33,125
Rental property expenses	(34,857		)	(15,208		)
	42,627			17,917
Net Operating Income - Discontinued Operations
Rental property revenues	1,356			3,000
Rental property expenses	(464		)	(1,194		)
	892			1,806
Net Operating Income - Unconsolidated Joint Ventures	6,499			6,447
Total Net Operating Income	$	50,018		$	26,170

Net Operating Income
Same Property	$	15,247		$	14,917
Non-Same Property	34,771			11,253
	$	50,018		$	26,170

Non-Cash Items
Straight-line rent	$	7,648		$	2,611
Other	1,583			(108		)
	9,231			2,503
Cash Basis Property Net Operating Income
Same Property	14,650			13,300
Non-Same Property	26,137			10,367
	$	40,787		$	23,667

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.

Cash Basis Same Property Net Operating Income 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

KEY PERFORMANCE INDICATORS



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
Property Statistics
Number of Operating Properties	30		31		33		24		23		23		22
Rentable Square Feet (in thousands)	11,827		13,111		13,546		15,768		15,723		15,723		15,600

Leverage Ratios (1)
Debt/Total Market Capitalization	36.5	%	32.3	%	32.1	%	29.9	%	29.5	%	29.5	%	25.6	%
Debt/Total Undepreciated Assets	35.3	%	34.6	%	33.1	%	30.8	%	30.0	%	30.0	%	28.0	%
Debt + Preferred/Total Market Capitalization	46.8	%	41.2	%	37.0	%	33.2	%	32.8	%	32.8	%	28.5	%
Debt + Preferred/Total Undepreciated Assets	45.4	%	44.2	%	38.1	%	34.1	%	33.3	%	33.3	%	31.3	%

Coverage Ratios (1)
Interest Coverage	3.53		3.28		4.13		3.98		4.92		4.15		5.23
Fixed Charges Coverage	2.03		1.86		2.36		2.73		3.51		2.64		3.56
Debt/Annualized EBITDA	6.00		7.01		5.73		7.59		4.72		4.72		4.31

Dividend Ratios (1)
FFO Payout Ratio	28.2	%	40.9	%	38.4	%	49.6	%	24.9	%	35.3	%	39.3	%
FFO Before Certain Charges Payout Ratio	32.4	%	40.1	%	31.7	%	42.5	%	24.9	%	32.7	%	39.2	%
FAD Payout Ratio	43.0	%	79.5	%	67.7	%	85.3	%	42.3	%	61.6	%	61.1	%
FAD Before Certain Charges Payout Ratio	53.6	%	76.5	%	49.3	%	66.4	%	42.3	%	54.2	%	60.9	%

Operations Ratios (1)
General and Administrative Expenses/Revenues (2)	12.2	%	14.7	%	10.0	%	12.4	%	5.8	%	9.9	%	6.8	%
Annualized General and Administrative Expenses/Total Undepreciated Assets	1.3	%	1.4	%	1.0	%	0.9	%	0.7	%	0.7	%	0.8	%

(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)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
Net Operating Income
Office	80,907		21,837		23,894		30,308		46,464		122,503		47,598
Retail	29,429		4,290		4,302		3,663		1,023		13,278		1,303
Other	121		43		376		861		1,019		2,299		1,117
Total Net Operating Income	110,457		26,170		28,572		34,832		48,506		138,080		50,018
Sales Less Cost of Sales
Land	4,915		243		276		725		29		1,273		160
Other	309		168		(8	)	(6	)	37		191		—
Total Sales Less Cost of Sales	5,224		411		268		719		66		1,464		160
Fee Income	17,797		3,580		2,931		2,420		1,959		10,890		2,339
Third Party Management and Leasing Revenues	16,365		74		2		—		—		76		—
Other Income	5,153		282		2,064		303		879		3,528		1,908
Total Fee and Other Income	39,315		3,936		4,997		2,723		2,838		14,494		4,247
Gain on Sale of Third Party Management and Leasing Business	7,459		—		—		4,531		45		4,576		7
Third Party Management and Leasing Expenses	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)	—
Reimbursed Expenses	(7,063	)	(1,910	)	(1,359	)	(1,097	)	(850	)	(5,216	)	(932	)
Separation Expenses	(1,985	)	—		—		(520	)	—		(520	)	(84	)
General and Administrative Expenses	(23,208	)	(6,069	)	(4,552	)	(6,635	)	(4,684	)	(21,940	)	(5,611	)
Loss on Debt Extinguishment	(94	)	—		—		—		—		—		—
Interest Expense	(28,154	)	(6,645	)	(6,573	)	(7,224	)	(9,230	)	(29,672	)	(9,012	)
Impairment Loss	(488	)	—		—		—		—		—		—
Other Expenses	(7,209	)	(946	)	(1,071	)	(8,092	)	(498	)	(10,607	)	(650	)
Income Tax Benefit (Provision)	(90	)	(1	)	(1	)	(1	)	26		23		12
Depreciation and Amortization of Non-Real Estate Assets	(1,090	)	(205	)	(213	)	(219	)	(150	)	(787	)	(196	)
Preferred Stock Dividends and Original Issuance Costs	(12,907	)	(3,227	)	(5,883	)	(1,777	)	(1,777	)	(12,664	)	(1,777	)
FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
Weighted Average Shares - Basic	104,117		104,119		118,661		163,426		189,665		144,255		191,739
Weighted Average Shares - Diluted	104,125		104,252		118,845		163,603		189,853		144,420		191,952
FFO per Share - Basic and Diluted	0.64		0.11		0.12		0.11		0.18		0.53		0.19

(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)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
GREENWAY PLAZA	—		—		—		5,103		19,503		24,606		18,202
POST OAK CENTRAL	—		2,459		4,328		4,498		4,308		15,593		5,564
191 PEACHTREE TOWER	15,222		4,064		4,021		3,982		3,973		16,040		4,198
THE AMERICAN CANCER SOCIETY CENTER	11,029		2,881		2,932		2,911		2,815		11,539		2,992
PROMENADE	8,748		2,485		2,235		2,453		2,395		9,568		2,772
777 MAIN	—		—		—		699		2,355		3,054		2,560
NORTH POINT CENTER EAST	5,186		1,373		1,452		1,508		1,576		5,909		1,606
816 CONGRESS AVENUE	—		—		1,098		1,498		1,433		4,029		1,536
2100 ROSS AVENUE	1,511		1,101		1,305		965		1,249		4,620		1,474
MERIDIAN MARK PLAZA	4,033		1,037		1,011		1,056		1,007		4,111		908
THE POINTS AT WATERVIEW	2,065		505		464		449		458		1,876		415
TERMINUS 100 (2)	15,809		1,627		(1	)	58		11		1,695		4
OTHER	(46	)	(7	)	(4	)	(5	)	—		(16	)	(6	)
SUBTOTAL - OFFICE CONSOLIDATED	63,557		17,525		18,841		25,175		41,083		102,624		42,225

UNCONSOLIDATED PROPERTIES:
TERMINUS 100 (2)	—		1,208		1,821		1,938		1,925		6,892		1,973
TERMINUS 200 (3)	1,545		898		1,144		1,093		1,143		4,278		1,235
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER	3,758		981		956		968		969		3,874		998
GATEWAY VILLAGE (4)	1,208		302		302		302		302		1,208		302
OTHER (5)	6,244		(16	)	(17	)	(16	)	(12	)	(61	)	(15	)
SUBTOTAL - OFFICE UNCONSOLIDATED	12,755		3,373		4,206		4,285		4,327		16,191		4,493

DISCONTINUED OPERATIONS (6)	4,595		939		847		848		1,054		3,688		880

TOTAL - OFFICE NET OPERATING INCOME	80,907		21,837		23,894		30,308		46,464		122,503		47,598

RETAIL:
CONSOLIDATED PROPERTIES:
MAHAN VILLAGE	314		390		389		363		454		1,596		402
OTHER	6		(2	)	1		1		(303	)	(303	)	—
SUBTOTAL - RETAIL CONSOLIDATED	320		388		390		364		151		1,293		402

UNCONSOLIDATED PROPERTIES:
CW INVESTMENTS (7)	2,398		580		578		579		568		2,305		567
EMORY POINT	10		274		344		303		290		1,211		321
OTHER (8)	8,311		2,177		2,078		1,510		(9	)	5,756		—
SUBTOTAL - RETAIL UNCONSOLIDATED	10,719		3,031		3,000		2,392		849		9,272		888

DISCONTINUED OPERATIONS (9)	18,390		871		912		907		23		2,713		13

TOTAL - RETAIL NET OPERATING INCOME	29,429		4,290		4,302		3,663		1,023		13,278		1,303

OTHER:
UNCONSOLIDATED PROPERTIES:
EMORY POINT RESIDENTIAL	122		43		376		861		1,020		2,300		1,118
SUBTOTAL - OTHER UNCONSOLIDATED	122		43		376		861		1,020		2,300		1,118

DISCONTINUED OPERATIONS OTHER (10)	(1	)	—		—		—		(1	)	(1	)	(1	)

TOTAL - OTHER NET OPERATING INCOME	121		43		376		861		1,019		2,299		1,117

TOTAL NET OPERATING INCOME	110,457		26,170		28,572		34,832		48,506		138,080		50,018

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

($ in thousands, except per share amounts)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
SALES LESS COST OF SALES
LAND SALES LESS COST OF SALES - CONSOLIDATED	4,915		243		276		610		29		1,158		160
LAND SALES LESS COST OF SALES - UNCONSOLIDATED	—		—		—		115		—		115		—
SUBTOTAL - LAND SALES LESS COST OF SALES	4,915		243		276		725		29		1,273		160

OTHER - CONSOLIDATED	281		158		—		—		37		195		—
OTHER - UNCONSOLIDATED	28		10		(8	)	(6	)	—		(4	)	—
SUBTOTAL - OTHER SALES LESS COST OF SALES	309		168		(8	)	(6	)	37		191		—

TOTAL SALES LESS COST OF SALES	5,224		411		268		719		66		1,464		160

FEE INCOME
DEVELOPMENT FEES	9,059		1,335		585		594		588		3,102		937
MANAGEMENT FEES (11)	8,164		2,030		2,146		1,793		1,254		7,223		1,315
LEASING & OTHER FEES	574		215		200		33		117		565		87
TOTAL - FEE INCOME	17,797		3,580		2,931		2,420		1,959		10,890		2,339

THIRD PARTY MANAGEMENT AND LEASING REVENUES	16,365		74		2		—		—		76		—

OTHER INCOME
TERMINATION FEES	128		19		1,965		155		813		2,952		1,843
TERMINATION FEES - DISCONTINUED OPERATIONS	3,512		—		—		—		—		—		—
INTEREST AND OTHER INCOME	1,513		259		100		136		66		561		64
INTEREST AND OTHER INCOME - DISCONTINUED OPERATIONS	—		4		(1	)	12		—		15		1
TOTAL INTEREST INCOME & OTHER	5,153		282		2,064		303		879		3,528		1,908

TOTAL FEE AND OTHER INCOME	39,315		3,936		4,997		2,723		2,838		14,494		4,247

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

THIRD PARTY MANAGEMENT AND LEASING EXPENSES	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)	—

REIMBURSED EXPENSES	(7,063	)	(1,910	)	(1,359	)	(1,097	)	(850	)	(5,216	)	(932	)

SEPARATION EXPENSES	(1,985	)	—		—		(520	)	—		(520	)	(84	)

GENERAL AND ADMINISTRATIVE EXPENSES	(23,208	)	(6,069	)	(4,552	)	(6,635	)	(4,684	)	(21,940	)	(5,611	)

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

INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER	(8,932	)	(2,183	)	(2,200	)	(2,219	)	(2,211	)	(8,813	)	(2,158	)
POST OAK CENTRAL	—		—		—		(565	)	(2,053	)	(2,618	)	(2,044	)
PROMENADE	—		—		—		(338	)	(1,230	)	(1,568	)	(1,223	)
191 PEACHTREE TOWER	(2,701	)	(890	)	(871	)	(861	)	(861	)	(3,483	)	(861	)
UNSECURED CREDIT FACILITY	(3,712	)	(546	)	(522	)	(608	)	(584	)	(2,260	)	(575	)
MERIDIAN MARK PLAZA	(1,609	)	(399	)	(397	)	(396	)	(395	)	(1,587	)	(393	)
THE POINTS AT WATERVIEW	(931	)	(228	)	(227	)	(225	)	(223	)	(903	)	(221	)
MAHAN VILLAGE	(122	)	(65	)	(81	)	(56	)	(68	)	(270	)	(65	)
TERMINUS 100 (2)	(7,221	)	(725	)	—		—		—		(725	)	—
OTHER	(341	)	—		—		—		—		—		—
CAPITALIZED	1,636		101		57		119		241		518		373
SUBTOTAL - CONSOLIDATED	(23,933	)	(4,935	)	(4,241	)	(5,149	)	(7,384	)	(21,709	)	(7,167	)

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

($ in thousands, except per share amounts)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
UNCONSOLIDATED DEBT:
TERMINUS 100 (2)	—		(530	)	(893	)	(887	)	(883	)	(3,193	)	(879	)
TERMINUS 200 (3)	(512	)	(199	)	(390	)	(390	)	(390	)	(1,369	)	(390	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER	(1,408	)	(347	)	(341	)	(336	)	(334	)	(1,358	)	(334	)
EMORY POINT	(59	)	(155	)	(229	)	(244	)	(239	)	(867	)	(242	)
OTHER	(2,242	)	(479	)	(479	)	(218	)	—		(1,176	)	—
SUBTOTAL - UNCONSOLIDATED	(4,221	)	(1,710	)	(2,332	)	(2,075	)	(1,846	)	(7,963	)	(1,845	)

TOTAL INTEREST EXPENSE	(28,154	)	(6,645	)	(6,573	)	(7,224	)	(9,230	)	(29,672	)	(9,012	)

IMPAIRMENT LOSSES	(488	)	—		—		—		—		—		—

OTHER EXPENSES
NONCONTROLLING INTERESTS	(2,415	)	(507	)	(515	)	(489	)	(160	)	(1,671	)	(156	)
PROPERTY TAXES & OTHER HOLDING COSTS	(1,738	)	(274	)	(242	)	(827	)	(227	)	(1,570	)	(271	)
PREDEVELOPMENT & OTHER	(1,623	)	(42	)	(63	)	(104	)	(186	)	(395	)	(229	)
ACQUISITION AND RELATED COSTS	(794	)	(235	)	(333	)	(6,859	)	(57	)	(7,484	)	(22	)
OTHER - UNCONSOLIDATED	(639	)	112		82		187		132		513		28
TOTAL - OTHER EXPENSES	(7,209	)	(946	)	(1,071	)	(8,092	)	(498	)	(10,607	)	(650	)

INCOME TAX (PROVISION) BENEFIT	(90	)	(1	)	(1	)	(1	)	26		23		12

DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED	(1,075	)	(183	)	(189	)	(192	)	(189	)	(753	)	(185	)
SHARE OF UNCONSOLIDATED JOINT VENTURES	(15	)	(22	)	(24	)	(27	)	39		(34	)	(11	)
TOTAL - NON-REAL ESTATE DEPRECIATION AND AMORTIZATION	(1,090	)	(205	)	(213	)	(219	)	(150	)	(787	)	(196	)

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

FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
WEIGHTED AVERAGE SHARES - BASIC	104,117		104,119		118,661		163,426		189,665		144,255		191,739
WEIGHTED AVERAGE SHARES - DILUTED	104,125		104,252		118,845		163,603		189,853		144,420		191,952
FFO PER SHARE - BASIC AND DILUTED	0.64		0.11		0.12		0.11		0.18		0.53		0.19

(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.

(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 March 31, 2014, 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.

(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 March 31, 2014



						Company's Share
	Property Description	Metropolitan Area	Rentable Square Feet	Financial Statement Presentation	Company's Ownership Interest	End of Period Leased 1Q14	End of Period Leased 4Q13	Weighted Average Occupancy 1Q14 (1)	Weighted Average Occupancy 4Q13 (1)	% of Total Net Operating Income (2)	Property Level Debt ($000)
I.	OFFICE PROPERTIES
	Greenway Plaza (3)	Houston	4,348,000	Consolidated	100%	95.8%	95.4%	94.1%	95.3%	37%	—
	Post Oak Central (3)	Houston	1,280,000	Consolidated	100%	94.3%	94.5%	94.3%	92.5%	11%	187,522
	777 Main	Fort Worth	980,000	Consolidated	100%	73.8%	73.9%	71.9%	85.6%	5%	—
	2100 Ross Avenue	Dallas	844,000	Consolidated	100%	81.9%	79.2%	68.4%	58.2%	3%	—
	816 Congress	Austin	435,000	Consolidated	100%	83.9%	76.6%	77.1%	76.0%	3%	—
	The Points at Waterview	Dallas	203,000	Consolidated	100%	83.1%	89.6%	84.1%	90.0%	1%	15,007
	TEXAS		8,090,000							60%	202,529

	191 Peachtree Tower	Atlanta	1,225,000	Consolidated	100%	87.2%	86.6%	85.8%	86.1%	8%	100,000
	The American Cancer Society Center	Atlanta	996,000	Consolidated	100%	83.9%	82.4%	83.4%	83.3%	6%	132,287
	Promenade	Atlanta	777,000	Consolidated	100%	91.6%	89.2%	76.5%	70.2%	6%	112,927
	Terminus 100	Atlanta	656,000	Unconsolidated	50%	99.0%	98.3%	96.4%	96.0%	4%	66,689
	North Point Center East (3)	Atlanta	540,000	Consolidated	100%	93.1%	94.4%	91.9%	92.1%	3%	—
	Terminus 200	Atlanta	566,000	Unconsolidated	50%	88.4%	88.4%	88.4%	88.2%	2%	41,000
	Meridian Mark Plaza	Atlanta	160,000	Consolidated	100%	99.0%	99.0%	99.0%	97.6%	2%	25,714
	Emory University Hospital Midtown Medical Office Tower	Atlanta	358,000	Unconsolidated	50%	98.5%	98.1%	98.0%	98.5%	2%	37,500
	GEORGIA		5,278,000							33%	516,117

	Lakeshore Park Plaza (4)	Birmingham	197,000	Consolidated	100%	99.0%	97.7%	98.1%	98.2%	1%	—
	ALABAMA		197,000							1%	—

	Gateway Village (5)	Charlotte	1,065,000	Unconsolidated	50%	100.0%	100.0%	100.0%	100.0%	1%	24,145
	NORTH CAROLINA		1,065,000							1%	24,145
	TOTAL OFFICE PROPERTIES		14,630,000							95%	742,791

II.	RETAIL PROPERTIES
	Mt. Juliet Village (5)	Nashville	91,000	Unconsolidated	50.5%	75.3%	75.3%	75.3%	72.3%	1%	3,041
	The Shops of Lee Village (5)	Nashville	74,000	Unconsolidated	50.5%	92.9%	91.0%	89.1%	87.5%	—%	2,744
	Creek Plantation Village (5)	Chattanooga	78,000	Unconsolidated	50.5%	96.4%	96.4%	96.4%	96.4%	—%	2,989
	TENNESSEE		243,000							1%	8,774

	Emory Point (Phase I)	Atlanta	80,000	Unconsolidated	75%	89.9%	86.7%	82.7%	81.9%	1%	7,160
	GEORGIA		80,000							1%	7,160

	Mahan Village (6)	Tallahassee	147,000	Consolidated	100%	90.5%	90.5%	90.5%	90.5%	1%	13,985
	Highland City Town Center (5)	Lakeland	96,000	Unconsolidated	50.5%	82.9%	82.9%	82.9%	82.9%	—%	5,149
	FLORIDA		243,000							1%	19,134
	TOTAL RETAIL PROPERTIES		566,000							3%	35,068

III.	APARTMENTS
	Emory Point (Phase I) (7)	Atlanta	404,000	Unconsolidated	75%	99.3%	96.8%	98.5%	93.6%	2%	36,156
	GEORGIA		404,000							2%	36,156
	TOTAL APARTMENTS		404,000							2%	36,156

	TOTAL PORTFOLIO		15,600,000							100%	814,015

(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. Calculation is based on amounts for the three months ended March 31, 2014.
(3)	Contains multiple buildings that are grouped together for reporting purposes.
(4)	This property was classified as held for sale as of March 31, 2014.
(5)	This property is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale may be disproportionate.
(6)	This property is shown as 100% as it is owned through a consolidated joint venture. See Joint Venture Information included herein for further details.
(7)	This property consists of 443 units.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY PERFORMANCE (1)

LEASING AND OCCUPANCY



		Property Description	End of Period Leased 1Q14	End of Period Leased 4Q13	End of Period Leased 1Q13	Weighted Average Occupancy 1Q14 (2)	Weighted Average Occupancy 4Q13 (2)	Weighted Average Occupancy 1Q13 (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	83.1%	89.6%	89.6%	84.1%	90.0%	89.6%
		TEXAS	83.1%	89.6%	89.6%	84.1%	90.0%	89.6%

		Lakeshore Park Plaza	99.0%	97.7%	98.1%	98.1%	98.2%	98.1%
		ALABAMA	99.0%	97.7%	98.1%	98.1%	98.2%	98.1%

		Meridian Mark Plaza	99.0%	99.0%	97.6%	99.0%	97.6%	97.6%
		Terminus 100	99.0%	98.3%	96.6%	96.4%	96.0%	95.1%
		Emory University Hospital Midtown Medical Office Tower	98.5%	98.1%	99.1%	98.0%	98.5%	98.4%
		North Point Center East	93.1%	94.4%	91.0%	91.9%	92.1%	90.3%
		Terminus 200	88.4%	88.4%	87.8%	88.4%	88.2%	87.8%
		191 Peachtree Tower	87.2%	86.6%	86.9%	85.8%	86.1%	86.8%
		The American Cancer Society Center	83.9%	82.4%	82.3%	83.4%	83.3%	82.2%
		GEORGIA	89.4%	88.9%	88.2%	88.3%	88.3%	87.9%

		TOTAL PROPERTIES	90.7%	90.5%	90.1%	89.9%	90.2%	89.8%

(1	)	Same Properties include those office properties that were operational and stabilized on January 1, 2013, 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
	March 31, 2014	March 31, 2013	December 31, 2013	1Q14 vs. 1Q13 % Change		1Q14 vs. 4Q13 % Change
Rental Property Revenues (2)	25,374	25,179	25,475	0.8	%	(0.4	)%
Rental Property Operating Expenses (2)	10,127	10,262	10,764	(1.3	)%	(5.9	)%
Same Property Net Operating Income (3)	15,247	14,917	14,711	2.2	%	3.6	%

Cash Basis Same Property Net Operating Income (4)	14,650	13,300	13,551	10.2	%	8.1	%

(1) Same Properties include those office properties that were operational and stabilized on January 1, 2013, excluding properties subsequently sold.
(2) Rental Property Revenues and Expenses includes results for the Company and its share of unconsolidated joint ventures.
(3) Same Property Net Operating Income represents 30%, 57%, and 30% of total Net Operating Income at March 31, 2014, March 31, 2013, and December 31, 2013, respectively.
(4) 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 March 31, 2014

OFFICE

As of March 31, 2014, the Company's office portfolio included 16 commercial office properties. The weighted average remaining lease term of these office properties was 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	707,405			888,835			1,389,238			1,432,012			1,201,369			720,744			809,699			884,844			806,475			3,234,773			12,075,394
% of Leased Space	6		%	7		%	11		%	12		%	10		%	6		%	7		%	7		%	7		%	27		%	100		%
Annual Contractual Rent ($000s) (1)	$	11,775		$	17,862		$	26,413		$	28,921		$	25,216		$	16,403		$	18,757		$	21,257		$	16,490		$	81,214		$	264,308
% of Annual Contractual Rent (1)	4		%	7		%	10		%	11		%	10		%	6		%	7		%	8		%	6		%	31		%	100		%
Annual Contractual Rent per Square Foot (1)	$	16.64		$	20.10		$	19.01		$	20.20		$	20.99		$	22.76		$	23.16		$	24.02		$	20.45		$	25.11		$	21.89

RETAIL

As of March 31, 2014, the Company's retail portfolio included 6 retail properties. The weighted average remaining lease term of these retail properties was 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)	11,482			6,666			6,048			15,561			20,149			7,694			4,546			2,246			15,113			244,725			334,230
% of Leased Space	3		%	2		%	2		%	5		%	6		%	2		%	1		%	1		%	5		%	73		%	100		%
Annual Contractual Rent ($000s) (1)	$	208		$	131		$	112		$	399		$	489		$	187		$	99		$	70		$	443		$	3,453		$	5,591
% of Annual Contractual Rent (1)	4		%	2		%	2		%	7		%	9		%	3		%	2		%	1		%	8		%	62		%	100		%
Annual Contractual Rent per Square Foot (1)	$	18.12		$	19.64		$	18.48		$	25.67		$	24.25		$	24.32		$	21.74		$	31.35		$	29.31		$	14.11		$	16.73

(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 March 31, 2014



	Three Months Ended March 31, 2014
	New			Renewal			Expansion			Total
Gross leased square footage										445,306
Less: Leases less than one year, amenity leases, percentage rent leases, storage leases, intercompany leases, and license agreements										(76,092		)
Net leased square footage	212,043			107,911			49,260			369,214
Number of transactions	15			21			13			49
Lease term (years) (2)	8.98			5.38			4.96			7.39

Net rent per square foot (2)(3)	$	24.91		$	16.08		$	15.37		$	21.05
Total leasing costs per square foot (2)(4)	(8.00		)	(2.61		)	(4.01		)	(5.91		)
Net effective rent per square foot (2)	$	16.91		$	13.47		$	11.36		$	15.14

Second generation leased square footage (2)(5)										185,306
Increase in second generation net rent per square foot (2)(3)(5)										12.7		%
Decrease in cash-basis second generation net rent per square foot (2)(5)(6)										(0.4		)%

(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 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 March 31, 2014



	Tenant (1)	Company Share of Annualized Base Rent (2)	Average Remaining Lease Term (Years) (5)
1.	Occidental Oil & Gas Corp.	6%	12
2.	Apache Corporation	4%	5
3.	Transocean Offshore Deepwater (3)	3%	2
4.	Invesco Management Group, Inc	3%	10
5.	Deloitte & Touche	3%	10
6.	American Cancer Society	2%	8
7.	Smith, Gambrell & Russell, LLP	2%	7
8.	Stewart Information Services	2%	3
9.	CPL Retail Energy, LP	2%	5
10.	ExxonMobil Corporation	2%	1
11.	US South Communications	2%	7
12.	Internap Network Services	1%	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.	Northside Hospital	1%	9
18.	FTS International Services, LLC	1%	5
19.	Gulf South Pipeline Company LP	1%	3
20.	Lockton Companies	1%	11
		40%	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.
(5)	Weighted average.

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 March 31, 2014

($ 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	$34,816	51	%	—	%	4Q14	(3	)	4Q15

Emory Point (Phase II)	Mixed	Atlanta, GA	75	%	4Q13		$73,300	$18,284

Apartments						307			—	%	—	%	1Q15	(4	)	1Q16
Retail						43,000			7	%	—	%	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 March 31, 2014, $1,000 was outstanding on the Emory Point Phase II construction loan.

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

(4) Represents the quarter within which the Company estimates the first apartment/retail space 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 March 31, 2014

($ 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
The Avenue Forsyth-Adjacent Land	Atlanta	100.00%	11
Wildwood Office Park	Atlanta	100.00%	10
549 / 555 / 557 Peachtree Street	Atlanta	100.00%	1
Georgia			99

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			216

COMPANY'S SHARE OF TOTAL ACRES HELD			164

COST BASIS OF COMMERCIAL LAND HELD			$	49,491

COMPANY'S SHARE OF COST BASIS OF COMMERCIAL LAND HELD			$	24,842

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			5,615

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			5,779

GRAND TOTAL COMPANY'S SHARE OF COST BASIS OF LAND HELD			$	44,447

(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 March 31, 2014

($ 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) (3)	100.00	%	(2)	1.80	%	9/12/14	$	13,985	$	—	$	—	$	—	$	—	$	—	$	13,985	$	3,496
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (4)	100.00	%		1.65	%	2/28/16	—		—		—		—		—		—		—		—
Total Floating Rate Debt							13,985		—		—		—		—		—		13,985		3,496

Fixed Rate Debt
The Points at Waterview	100.00	%		5.66	%	1/1/16	409		573		14,025		—		—		—		15,007		—
The American Cancer Society Center (5)	100.00	%		6.45	%	9/1/17	1,204		1,741		1,834		127,508		—		—		132,287		—
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	306		430		456		484		514		23,524		25,714		—
Post Oak Central	100.00	%		4.26	%	10/1/20	2,412		3,339		3,485		3,636		3,794		170,856		187,522		—
Promenade	100.00	%		4.27	%	10/1/22	1,982		2,742		2,862		2,986		3,116		99,239		112,927		—
Total Fixed Rate Debt							6,313		8,825		23,967		136,627		104,106		293,619		573,457		—

TOTAL CONSOLIDATED DEBT							$	20,298	$	8,825	$	23,967	$	136,627	$	104,106	$	293,619	$	587,442	$	3,496

UNCONSOLIDATED DEBT

Floating Rate Debt
Emory Point (LIBOR + 1.75%, $61.1mm facility) (6)	75.00	%		1.90	%	10/9/14	43,316		—		—		—		—		—		43,316		4,332
Highland City Town Center (LIBOR + 2.65%)	50.50	%	(2)	2.80	%	1/1/16	88		123		4,938		—		—		—		5,149		—
Creek Plantation Village (LIBOR + 2.65%)	50.50	%	(2)	2.80	%	1/1/16	51		71		2,867		—		—		—		2,989		—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)	50.50	%	(2)	3.00	%	1/1/16	44		62		2,935		—		—		—		3,041		1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)	50.50	%	(2)	3.00	%	1/1/16	40		56		2,648		—		—		—		2,744		1,388
Emory Point II (LIBOR + 1.85%, $46mm facility)	75.00	%		2.00	%	10/9/16	—		—		1		—		—		—		1		1
Total Floating Rate Debt							43,539		312		13,389		—		—		—		57,240		7,259

Fixed Rate Debt
Gateway Village (7)	50.00	%		6.41	%	12/1/16	6,380		8,997		8,768		—		—		—		24,145		—
Terminus 100	50.00	%		5.25	%	1/1/23	868		1,212		1,277		1,346		1,418		60,568		66,689		—
Terminus 200	50.00	%		3.79	%	1/1/23	—		—		559		770		800		38,871		41,000		—
Emory University Hospital Midtown Medical Office Tower	50.00	%		3.50	%	6/1/23	—		357		732		758		785		34,868		37,500		—
Total Fixed Rate Debt							7,248		10,566		11,336		2,874		3,003		134,307		169,334		—

TOTAL UNCONSOLIDATED DEBT							$	50,787	$	10,878	$	24,725	$	2,874	$	3,003	$	134,307	$	226,574	$	7,259

TOTAL DEBT							$	71,085	$	19,703	$	48,692	$	139,501	$	107,109	$	427,926	$	814,016	$	10,755

TOTAL MATURITIES (8)							$	57,301	$	—	$	27,414	$	127,508	$	96,682	$	399,803	$	708,708
% OF MATURITIES							8%		—%		4%		18%		14%		56%		100%

Floating and Fixed Rate Debt Analysis



	Total Debt ($)		Total Debt (%)		Weighted Average Interest Rate		Weighted Average Maturity (Yrs.)
Floating Rate Debt	$	71,225	9	%	2.07	%	0.8
Fixed Rate Debt	742,791		91	%	4.71	%	6.2
Total Debt	$	814,016	100	%	4.48	%	5.7

(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) This loan may be extended for two additional one-year terms, provided certain conditions are met.

(4) Total borrowing capacity of the Credit Facility at March 31, 2014 was $350 million. The spread over LIBOR at March 31, 2014 was 1.50%.

(5) 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.

(6) This loan may be extended for four additional one-year terms, provided certain conditions are met.

(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 AND SUBSIDIARIES

JOINT VENTURE INFORMATION

As of March 31, 2014



		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.
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)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:

TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS	13,181		2,865		1,524		2,642		5,108		12,139		2,745
SECOND GENERATION BUILDING IMPROVEMENTS	1,271		79		1,589		200		1,946		3,814		550
	14,453		2,944		3,113		2,842		7,054		15,954		3,295
RETAIL:
SECOND GENERATION LEASING RELATED COSTS	605		88		239		133		—		460		—
TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX	15,058		3,032		3,352		2,976		7,054		16,414		3,295

NET OPERATING INCOME:

OFFICE CONSOLIDATED PROPERTIES	63,555		17,526		18,841		25,175		41,083		102,625		42,225
RETAIL CONSOLIDATED PROPERTIES	320		389		390		364		151		1,294		402
NET OPERATING INCOME - CONSOLIDATED	63,875		17,915		19,231		25,539		41,234		103,919		42,627

RENTAL PROPERTY REVENUES	114,208		33,123		37,099		47,575		76,620		194,420		77,484
RENTAL PROPERTY OPERATING EXPENSES	(50,329	)	(15,208	)	(17,868	)	(22,036	)	(35,386	)	(90,498	)	(34,857	)
NET OPERATING INCOME - CONSOLIDATED	63,879		17,915		19,231		25,539		41,234		103,919		42,627

INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES	33,918		3,000		2,940		2,870		1,742		10,552		1,356
RENTAL PROPERTY OPERATING EXPENSES	(10,935	)	(1,194	)	(1,182	)	(1,118	)	(668	)	(4,162	)	(464	)
NET OPERATING INCOME	22,983		1,806		1,758		1,752		1,074		6,390		892

TERMINATION FEES	3,512		—		—		—		—		—		—
INTEREST AND OTHER INCOME (EXPENSE)	(3	)	4		(1	)	12		—		15		1
FFO FROM DISCONTINUED OPERATING PROPERTIES	26,492		1,810		1,757		1,764		1,074		6,405		893

THIRD PARTY MANAGEMENT AND LEASING REVENUES	16,365		74		2		—		—		76		—
THIRD PARTY MANAGEMENT AND LEASING EXPENSES	(13,675	)	(53	)	(27	)	(14	)	(3	)	(97	)	—
FFO FROM THIRD PARTY MANAGEMENT AND LEASING	2,690		21		(25	)	(14	)	(3	)	(21	)	—

FFO FROM DISCONTINUED OPERATIONS	29,182		1,831		1,732		1,750		1,071		6,384		893

DEPRECIATION AND AMORTIZATION OF REAL ESTATE	(13,479	)	(1,053	)	(1,046	)	(492	)	(494	)	(3,085	)	—
IMPAIRMENT LOSSES	(13,791	)	—		—		—		—		—		—

INCOME FROM DISCONTINUED OPERATIONS	1,912		778		686		1,258		577		3,299		893

RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES - CONSOLIDATED:
RESIDENTIAL LOT SALES	2,616		460		283		155		70		968		—
OUTPARCEL SALES	—		503		150		—		—		653		—
TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES	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)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th	2013		2014 1st
RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES	1,421		460		283		147		65	955		—
OUTPARCEL COST OF SALES	—		503		150		—		—	653		—
TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED	1,421		963		433		147		65	1,608		—

TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES	3,720		243		276		602		24	1,145		160
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY
SALES LESS COST OF SALES - CONSOLIDATED	4,915		243		276		610		29	1,158		160

SUMMARY - CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES	1,195		—		—		8		5	13		—
OUTPARCEL SALES LESS COST OF SALES	—		—		—		—		—	—		—
TRACT SALES LESS COST OF SALES	3,720		243		276		602		24	1,145		160
TOTAL CONSOLIDATED SALES LESS COST OF SALES	4,915		243		276		610		29	1,158		160

OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES - CONSOLIDATED:
OTHER SALES	694		340		—		—		—	340		—
OTHER COST OF SALES	(413	)	(182	)	—		—		37	(145	)	—
OTHER SALES LESS COST OF SALES - CONSOLIDATED	281		158		—		—		37	195		—

UNCONSOLIDATED:
OTHER SALES - UNCONSOLIDATED:
OTHER SALES	—		—		—		—		—	—		—
OTHER COST OF SALES	—		—		—		—		—	—		—
OTHER, NET	28		10		(8	)	(6	)	—	(4	)	—
OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED	28		10		(8	)	(6	)	—	(4	)	—
TOTAL OTHER SALES FFO	309		168		(8	)	(6	)	37	191		—

UNCONSOLIDATED:
RESIDENTIAL LOT AND TRACT SALES - UNCONSOLIDATED:
RESIDENTIAL LOT SALES	—		—		—		—		—	—		—
OUTPARCEL SALES	—		—		—		475		—	475		—
TRACT SALES	176		—		—		90		—	90		57
TOTAL RESIDENTIAL LOT AND TRACT SALES	176		—		—		565		—	565		57

RESIDENTIAL LOT AND TRACT COST OF SALES - UNCONSOLIDATED:
RESIDENTIAL LOT COST OF SALES	—		—		—		—		—	—		—
OUTPARCEL COST OF SALES	—		—		—		360		—	360		—
TRACT COST OF SALES	176		—		—		90		—	90		57
TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES	176		—		—		450		—	450		57
RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES -UNCONSOLIDATED	—		—		—		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)



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st

SUMMARY - UNCONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES	—		—		—		—		—		—		—
OUTPARCEL SALES LESS COST OF SALES	—		—		—		115		—		115		—
TRACT SALES LESS COST OF SALES	—		—		—		—		—		—		—
RESIDENTIAL LOT AND TRACT SALES LESS COST OF
SALES - SHARE OF UNCONSOLIDATED	—		—		—		115		—		115		—
TOTAL RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES	4,915		243		276		725		29		1,273		160

INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES	12,755		3,373		4,206		4,289		4,327		16,195		4,493
RETAIL PROPERTIES	10,719		3,031		3,000		2,392		849		9,272		888
OTHER PROPERTIES	122		43		376		861		1,020		2,300		1,118
NET OPERATING INCOME	23,596		6,447		7,582		7,542		6,196		27,767		6,499
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES	—		—		—		115		—		115		—
OTHER SALES LESS COST OF SALES	28		10		(8	)	(6	)	—		(4	)	—
TERMINATION FEES	62		19		—		—		—		19		—
INTEREST EXPENSE	(4,221	)	(1,710	)	(2,332	)	(2,075	)	(1,846	)	(7,963	)	(1,845	)
OTHER EXPENSE	(639	)	112		82		187		132		513		28
IMPAIRMENT LOSSES	—		—		—		—		—		—		—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS	(15	)	(22	)	(24	)	(27	)	39		(34	)	(11	)
FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES	18,811		4,856		5,300		5,736		4,521		20,413		4,671
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET	30,662		—		—		60,421		(77	)	60,344		(387	)
DEPRECIATION AND AMORTIZATION OF REAL ESTATE	(10,215	)	(3,204	)	(4,167	)	(3,079	)	(2,985	)	(13,435	)	(2,998	)

NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES	39,258		1,652		1,133		63,078		1,459		67,322		1,286

MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END	8.35		10.69		10.10		10.29		10.30		10.30		11.47
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END	104,090		104,127		120,688		189,660		189,666		189,666		198,423
COMMON STOCK CAPITALIZATION	869,152		1,113,118		1,218,949		1,951,601		1,953,560		1,953,560		2,275,912

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

DEBT	425,410		344,832		340,374		642,834		630,094		630,094		587,442
SHARE OF UNCONSOLIDATED DEBT	170,480		266,069		281,960		230,280		228,489		228,489		226,574
DEBT (2)	595,890		610,901		622,334		873,114		858,583		858,583		814,016

TOTAL MARKET CAPITALIZATION	1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918		3,184,703

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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

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



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
LEVERAGE RATIOS
DEBT (2)	595,890		610,901		622,334		873,114		858,583		858,583		814,016
TOTAL MARKET CAPITALIZATION	1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918		3,184,703
DEBT (2) / TOTAL MARKET CAPITALIZATION	36.5%		32.3%		32.1%		29.9%		29.5%		29.5%		25.6%

TOTAL ASSETS-CONSOLIDATED	1,124,242		1,096,444		1,200,788		2,263,766		2,273,206		2,273,206		2,294,011
ACCUMULATED DEPRECIATION-CONSOLIDATED	258,258		221,429		245,608		238,297		257,151		257,151		270,753
UNDEPRECIATED ASSETS-UNCONSOLIDATED (2)	403,141		575,323		562,475		432,750		441,928		441,928		446,890
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES	(97,868	)	(128,541	)	(127,948	)	(98,183	)	(107,082	)	(107,082	)	(107,106	)
TOTAL UNDEPRECIATED ASSETS (2)	1,687,773		1,764,655		1,880,923		2,836,630		2,865,203		2,865,203		2,904,548
DEBT (2)	595,890		610,901		622,334		873,114		858,583		858,583		814,016
UNDEPRECIATED ASSETS (2)	1,687,773		1,764,655		1,880,923		2,836,630		2,865,203		2,865,203		2,904,548
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)	35.3%		34.6%		33.1%		30.8%		30.0%		30.0%		28.0%

DEBT (2)	595,890		610,901		622,334		873,114		858,583		858,583		814,016
PREFERRED STOCK AT LIQUIDATION VALUE	169,602		169,602		94,775		94,775		94,775		94,775		94,775
DEBT (2) + PREFERRED	765,492		780,503		717,109		967,889		953,358		953,358		908,791
TOTAL MARKET CAPITALIZATION	1,634,644		1,893,620		1,936,057		2,919,490		2,906,918		2,906,918		3,184,703
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION	46.8%		41.2%		37.0%		33.2%		32.8%		32.8%		28.5%

DEBT (2) + PREFERRED	765,492		780,503		717,109		967,889		953,358		953,358		908,791
TOTAL UNDEPRECIATED ASSETS (2)	1,687,773		1,764,655		1,880,923		2,836,630		2,865,203		2,865,203		2,904,548
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)	45.4%		44.2%		38.1%		34.1%		33.3%		33.3%		31.3%

EBITDA (2)
FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
INTEREST EXPENSE	28,154		6,645		6,573		7,224		9,230		29,672		9,012
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION	1,090		205		213		219		150		787		196
INCOME TAX PROVISION (BENEFIT)	90		1		1		1		(26	)	(23	)	(12	)
IMPAIRMENT LOSSES	488		—		—		—		—		—		—
LOSS ON DEBT EXTINGUISHMENT	94		—		—		—		—		—		—
GAIN ON SALE OF THIRD PARTY BUSINESS	(7,459	)	—		—		(4,531	)	(45	)	(4,576	)	(7	)
PARTICIPATION INTEREST INCOME	(3,366	)	—		—		—		—		—		—
ACQUISITION AND RELATED COSTS	794		235		333		6,859		57		7,484		22
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS	12,907		3,227		5,883		1,777		1,777		12,664		1,777
EBITDA (2)	99,284		21,774		27,161		28,775		45,432		123,142		47,170

COVERAGE RATIOS (2)
EBITDA	99,284		21,774		27,161		28,775		45,432		123,142		47,170
INTEREST EXPENSE	28,154		6,645		6,573		7,224		9,230		29,672		9,012
INTEREST COVERAGE RATIO (2)	3.53		3.28		4.13		3.98		4.92		4.15		5.23

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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

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



	2012		2013 1st		2013 2nd		2013 3rd		2013 4th		2013		2014 1st
INTEREST EXPENSE	28,154		6,645		6,573		7,224		9,230		29,672		9,012
SCHEDULED PRINCIPAL PAYMENTS	7,769		1,855		1,728		1,528		1,922		7,032		2,445
PREFERRED STOCK DIVIDENDS	12,907		3,227		3,227		1,777		1,777		10,008		1,777
FIXED CHARGES	48,830		11,727		11,528		10,529		12,929		46,712		13,234
EBITDA	99,284		21,774		27,161		28,775		45,432		123,142		47,170
FIXED CHARGES COVERAGE RATIO (2)	2.03		1.86		2.36		2.73		3.51		2.64		3.56

DEBT (2)	595,890		610,901		622,334		873,114		858,583		858,583		814,016
ANNUALIZED EBITDA (3)	99,324		87,096		108,644		115,100		181,728		181,728		188,680
DEBT (2) / ANNUALIZED EBITDA (3)	6.00		7.01		5.73		7.59		4.72		4.72		4.31

DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH COMMON DIVIDENDS	18,748		4,689		5,431		8,536		8,536		27,192		14,232
FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
FFO PAYOUT RATIO	28.2%		40.9%		38.4%		49.6%		24.9%		35.3%		39.3%

FFO BEFORE CERTAIN CHARGES
FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
PREFERRED STOCK ORIGINAL ISSUANCE COSTS	—		—		2,656		—		—		2,656		—
IMPAIRMENT LOSSES (2)	488		—		—		—		—		—		—
PREDEVELOPMENT & OTHER CHARGES	(1,185	)	—		—		—		—		—		—
LOSS ON DEBT EXTINGUISHMENT	94		—		—		—		—		—		—
ACQUISITION AND RELATED COSTS	794		235		333		6,859		57		7,484		22
GAIN ON SALE OF THIRD PARTY BUSINESS	(7,459	)	—		—		(4,531	)	(45	)	(4,576	)	(7	)
PARTICIPATION INTEREST INCOME	(3,366	)	—		—		—		—		—		—
SEPARATION CHARGES	1,985		—		—		520		—		520		84
FFO BEFORE CERTAIN CHARGES	57,843		11,696		17,147		20,074		34,301		83,218		36,281
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO	32.4%		40.1%		31.7%		42.5%		24.9%		32.7%		39.2%

FAD (2)
FFO	66,492		11,461		14,158		17,226		34,289		77,134		36,182
FAS 13	(8,319	)	(2,346	)	(2,204	)	(3,244	)	(5,032	)	(12,826	)	(7,648	)
ABOVE AND BELOW MARKET RENTS	493		(185	)	(586	)	(994	)	(2,020	)	(3,785	)	(1,952	)
SECOND GENERATION CAPEX	(15,058	)	(3,032	)	(3,352	)	(2,976	)	(7,054	)	(16,414	)	(3,295	)
FAD (2)	43,608		5,897		8,016		10,012		20,183		44,109		23,286
COMMON DIVIDENDS	18,748		4,689		5,431		8,536		8,536		27,192		14,232
FAD PAYOUT RATIO (2)	43.0%		79.5%		67.7%		85.3%		42.3%		61.6%		61.1%

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

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

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



	2012		2013 1st	2013 2nd	2013 3rd		2013 4th		2013		2014 1st
FAD BEFORE CERTAIN CHARGES
FAD (2)	43,608		5,897	8,016	10,012		20,183		44,109		23,286
PREFERRED STOCK ORIGINAL ISSUANCE COSTS	—		—	2,656	—		—		2,656		—
IMPAIRMENT LOSSES (2)	488		—	—	—		—		—		—
PREDEVELOPMENT & OTHER CHARGES	(1,185	)	—	—	—		—		—		—
LOSS ON DEBT EXTINGUISHMENT	94		—	—	—		—		—		—
ACQUISITION AND RELATED COSTS	794		235	333	6,859		57		7,484		22
GAIN ON SALE OF THIRD PARTY BUSINESS	(7,459	)	—	—	(4,531	)	(45	)	(4,576	)	(7	)
PARTICIPATION INTEREST INCOME	(3,366	)	—	—	—		—		—		—
SEPARATION CHARGES	1,984		—	—	520		—		520		84
FAD BEFORE CERTAIN CHARGES	34,958		6,132	11,005	12,860		20,195		50,193		23,385
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO	53.6%		76.5%	49.3%	66.4%		42.3%		54.2%		60.9%

OPERATIONS RATIOS
REVENUES	136,846		38,262	42,521	50,434		79,520		210,741		81,723
REVENUES FROM DISCONTINUED OPERATIONS	53,839		3,082	2,951	2,888		1,750		10,668		1,363
REVENUES INCLUDING DISCONTINUED OPERATIONS	190,685		41,344	45,472	53,322		81,270		221,409		83,086

GENERAL AND ADMINISTRATIVE EXPENSES	23,208		6,069	4,552	6,635		4,684		21,940		5,611
REVENUES INCLUDING DISCONTINUED OPERATIONS	190,685		41,344	45,472	53,322		81,270		221,409		83,086
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS	12.2%		14.7%	10.0%	12.4%		5.8%		9.9%		6.8%

TOTAL UNDEPRECIATED ASSETS (2)	1,687,773		1,764,655	1,880,923	2,836,630		2,865,203		2,865,203		2,904,548
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS	1.3%		1.4%	1.0%	0.9%		0.7%		0.7%		0.8%

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
	March 31, 2014		March 31, 2013			December 31, 2013
Consolidated Property Net Operating Income
Same Property	$	15,247	$	14,917		$	14,711
Non-Same Property	34,771		11,253			33,795
	$	50,018	$	26,170		$	48,506

Less: Non-Cash Items
Straight-line rent	$	7,648	$	2,611		$	5,032
Other	1,583		(108		)	1,679
	9,231		2,503			6,711

Cash Basis Property Net Operating Income
Same Property	14,650		13,300			13,551
Non-Same Property	26,137		10,367			28,244
	$	40,787	$	23,667		$	41,795

Net Operating Income (4)
Operating Properties	$	42,627	$	17,917		$	41,234
Discontinued Operations	892		1,806			1,076
Share of Unconsolidated Joint Ventures	6,499		6,447			6,196
	$	50,018	$	26,170		$	48,506

(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.