Dispositions

In 2014, the FASB issued new guidance related to the presentation of discounted operations. See note 2 for further information. The new guidance applies to assets that are sold or meet the criteria for held for sale after the date of adoption. The Company adopted the new standard in 2014; and as a result, two of the Company's properties that were sold subsequent to the adoption that under the previous guidance would have been considered discontinued operations are not considered discontinued operations under the new guidance.

The Company sold the following properties in 2014, 2013, and 2012. The results of operations of the properties noted as discontinued operations are included in a separate section discontinued operations, in the statements of operations for all periods presented ($ in thousands):



Property	Property Type	Location	Square Feet	Sales Price		Discontinued Operations
2014
777 Main	Office	Ft. Worth, TX	980,000	$	167,000	No
Lakeshore Park Plaza	Office	Birmingham, AL	197,000	$	25,000	Yes
Mahan Village	Retail	Tallahassee, FL	147,000	$	29,500	No
600 University Park Place	Office	Birmingham, AL	123,000	$	19,700	Yes
2013
Tiffany Springs MarketCenter	Retail	Kansas City, MO	238,000	$	53,500	Yes
Inhibitex	Office	Atlanta, GA	51,000	$	8,300	Yes
2012
The Avenue Forsyth	Retail	Atlanta, GA	524,000	$	119,000	Yes
The Avenue Collierville	Retail	Memphis, TN	511,000	$	55,000	Yes
The Avenue Webb Gin	Retail	Atlanta, GA	322,000	$	59,600	Yes
Galleria 75	Office	Atlanta, GA	111,000	$	9,200	Yes
Cosmopolitan Center	Office	Atlanta, GA	51,000	$	7,000	Yes

In addition, the Company sold its third party management and leasing business in 2012. The operations of this business are presented as discontinued operations in the accompanying statements of operations. The Company recognized a gain on the sale of its third party management and leasing business of $7.5 million in 2012 and an additional gain of $4.6 million in 2013. The additional gain was based on the performance of the business for the year subsequent to the sale.

The following table details the components of income from discontinued operations for the years ended December 31, 2014, 2013 and 2012 (in thousands):



	2014			2013			2012
Rental property revenues	$	2,927		$	10,552		$	33,918
Other revenues	29			40			3,557
Third party management and leasing revenues	—			76			16,364
Third party management and leasing expenses	—			(99		)	(13,678		)
Impairment losses	—			—			(13,791		)
Depreciation and amortization	—			(3,083		)	(13,479		)
Other expenses	(28		)	(25		)	(49		)
Rental property operating expenses	(1,128		)	(4,162		)	(10,935		)
Income from discontinued operations	$	1,800		$	3,299		$	1,907

Gains (losses) related on sales of discontinued operations are as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands):



	2014			2013			2012
Lakeshore Park Plaza	$	13,025		$	—		$	—
600 University Park Place	6,334			—			—
The Avenue Forsyth	1			(77		)	4,508
Inhibitex	2			2,989			—
Tiffany Springs MarketCenter	(1		)	3,697			—
Third party management and leasing business	(3		)	4,577			7,459
Cosmopolitan Center	—			—			2,064
The Avenue Webb Gin	—			(2		)	3,590
Other	—			305			786
Gain on sale of discontinued operations, net	$	19,358		$	11,489		$	18,407

Acquisitions

In 2014, the Company acquired Northpark Town Center, a 1.5 million square foot office asset located in Atlanta, Georgia. The gross purchase price for this property was $348.0 million, before adjustments for customary closing costs and other closing credits. The Company incurred $643,000 in acquisition and related costs associated with this acquisition.

In 2014, the Company acquired Fifth Third Center, a 698,000 square foot Class A office tower located in the Charlotte, North Carolina central business district. The gross purchase price for this property was $215.0 million, before adjustments for customary closing costs and other closing credits. The Company incurred $328,000 in acquisition and related costs associated with this acquisition.

In 2013, the Company acquired Greenway Plaza, a 10-building, 4.3 million square foot office complex in Houston, Texas, and 777 Main, a 980,000 square foot Class A office building in the central business district of Fort Worth, Texas (collectively the “Texas Acquisition”). The aggregate purchase price for the Texas Acquisition was $1.1 billion, before adjustment for brokers fees, transfer taxes and other customary closing costs.

In conjunction with the Texas Acquisition, the Company entered into a $950 million Loan Agreement with JPMorgan Chase Bank, N.A. and Bank of America, N.A. (the "Term Loan") to assist, if necessary, in the funding of the Texas Acquisition. The Term Loan was not used to finance the Texas Acquisition and, pursuant to the agreement, terminated on the acquisition date. The Company incurred fees and other costs associated with the Term Loan of $2.6 million. In addition, the Company incurred $4.2 million in other acquisition costs related to the Texas Acquisition. The term loan costs and other acquisition costs are included in acquisition and related costs on the statement of operations.

In 2013, the Company acquired 816 Congress Avenue, a 435,000 square foot Class-A office property located in the central business district of Austin, Texas. The purchase price for this property, net of rent credits, was $102.4 million. The Company incurred $342,000 in acquisition and related costs associated with this acquisition.

In 2013, the Company purchased the remaining 80% interest in MSREF/ Cousins Terminus 200 LLC for $53.8 million and simultaneously repaid the mortgage loan secured by the Terminus 200 property in the amount of $74.6 million. The Company recognized a gain of $19.7 million on this acquisition achieved in stages. Immediately thereafter, the Company contributed its interest in the Terminus 200 property and its interest in the Terminus 100 property, together with the existing mortgage loan secured by the Terminus 100 property, to a newly-formed entity, Terminus Office Holdings LLC (“TOH”), and sold 50% of TOH to institutional investors advised by J.P. Morgan Asset Management for $112.2 million. The Company recognized a gain of $37.1 million on this transaction. The Company incurred $122,000 in acquisition and related costs associated with these transactions. TOH closed a new mortgage loan on the Terminus 200 property in the amount of $82.0 million, and the Company received a distribution of $39.2 million from TOH as a result. TOH is an unconsolidated joint venture of the Company (see note 5).

Concurrent with the Terminus 100 and 200 transactions, the Company purchased Post Oak Central, a 1.3 million square foot, Class-A office complex in the Galleria district of Houston, Texas for $230.9 million, net of rent credits, from an affiliate of J.P. Morgan Asset Management. The Company incurred $231,000 in acquisition and related costs associated with this acquisition.

In 2012, the Company purchased 2100 Ross Avenue, a 844,000 square foot Class-A office building in the Arts District submarket of Dallas, Texas, and paid cash of $59.2 million. The Company incurred $408,000 in acquisition and related costs associated with this purchase.

The following tables summarize allocations of the estimated fair values of the assets and liabilities of the acquisitions discussed above (in thousands):



	Northpark Town Center			Fifth Third Center			Post Oak Central			Terminus 200			816 Congress Avenue			Texas Acquisition			2100 Ross Avenue
Tangible assets:
Land and improvements	$	24,577		$	22,863		$	88,406		$	25,040		$	6,817		$	306,563		$	5,987
Building	274,151			163,649			118,470			101,472			86,391			586,150			36,705
Tenant improvements	21,674			16,781			10,877			17,600			3,500			114,220			9,034
Other assets	—			1,014			—			101			—			—			—
Deferred rents receivable	—			—			—			44			—			—			—
Tangible assets	320,402			204,307			217,753			144,257			96,708			1,006,933			51,726
Intangible assets:
Above-market leases	2,846			632			995			1,512			89			4,959			3,267
In-place leases	30,159			17,096			26,968			14,355			8,222			117,630			8,888
Below-market ground leases	—			338			—			—			—			2,958			—
Ground lease purchase option	—			—			—			—			2,403			—			—
Total intangible assets	33,005			18,066			27,963			15,867			10,714			125,547			12,155
Tangible liabilities:
Accounts payable and accrued expenses	—			(1,026		)	—			—			—			—			—
Total tangible liabilities	—			(1,026		)	—			—			—			—			—
Intangible liabilities:
Below-market leases	(8,018		)	(9,374		)	(14,792		)	(9,273		)	(2,820		)	(47,170		)	(436		)
Above-market ground lease	—			—			—			—			(1,981		)	(2,508		)	—
Total intangible liabilities	(8,018		)	(9,374		)	(14,792		)	(9,273		)	(4,801		)	(49,678		)	(436		)

Total net assets acquired	$	345,389		$	211,973		$	230,924		$	150,851		$	102,621		$	1,082,802		$	63,445

See note 6 for a schedule of the timing of amortization of the intangible assets and liabilities and the weighted average amortization periods.

The following unaudited supplemental pro forma information is presented for the years ended December 31, 2014 and 2013, respectively. The pro forma information is based upon the Company's historical consolidated statements of operations, adjusted as if the Northpark Town Center, Post Oak Central, Terminus, 816 Congress Avenue and the Texas Acquisition transactions discussed above had occurred at the beginning of each of the periods presented. The supplemental pro forma information is not necessarily indicative of future results or of actual results that would have been achieved had the transactions been consummated at the beginning of each period.



	2014		2013
	(unaudited, in thousands, except per share amounts)
Revenues	$	388,791	$	354,047
Income from continuing operations	31,695		119,825
Net income	52,853		134,613
Net income available to common stockholders	45,364		116,881
Per share information:
Basic	$	0.22	$	0.62
Diluted	$	0.22	$	0.62