-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RcJvDlkf0UK9nJiSMLIxtN4FLqn6rEA17EylNiErjk0dFbKFX3BLgR+IpbmR8gIZ D6fY/Y4WU5dls79tj2H27A== 0000950144-05-000691.txt : 20050131 0000950144-05-000691.hdr.sgml : 20050131 20050131161138 ACCESSION NUMBER: 0000950144-05-000691 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050131 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050131 DATE AS OF CHANGE: 20050131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COUSINS PROPERTIES INC CENTRAL INDEX KEY: 0000025232 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 580869052 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11312 FILM NUMBER: 05561980 BUSINESS ADDRESS: STREET 1: 2500 WINDY RIDGE PKWY STE 1600 CITY: ATLANTA STATE: GA ZIP: 30339-5683 BUSINESS PHONE: 7709552200 MAIL ADDRESS: STREET 1: 2500 WINDY RIDGE PARKWAY STREET 2: SUITE 1600 CITY: ATLANTA STATE: GA ZIP: 30339-5683 8-K 1 g92938e8vk.htm COUSINS PROPERTIES INCORPORATED COUSINS PROPERTIES INCORPORATED
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 31, 2005

Cousins Properties Incorporated

(Exact name of registrant as specified in charter)
     
Georgia   58-0869052
(State or other jurisdiction of incorporation)   (IRS Employer Identification Number)
     

0-3576

(Commission File Number)

2500 Windy Ridge Parkway, Atlanta, Georgia 30339-5683

(Address of principal executive offices)

Registrant’s telephone number, including area code: (770) 955-2200

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
SIGNATURES
EX-99.1 PRESS RELEASE DATED JANUARY 31, 2005
EX-99.2 SUPPLEMENTAL INFORMATION FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2004

Item 2.02. Results of Operations and Financial Condition

     On January 31, 2005, Cousins Properties Incorporated (the “Company”) issued a press release containing information about the Company’s financial condition and results of operations for the quarter and year ended December 31, 2004. A copy of the Company’s press release is attached hereto as Exhibit 99.1. A copy of the Company’s Quarterly Supplemental Information is attached hereto as Exhibit 99.2. The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits

     (c) Exhibits:

     
Exhibit Number   Description
99.1
  Cousins Properties Incorporated Press Release dated January 31, 2005.
 
    
99.2
  Cousins Properties Incorporated Supplemental Information for the Quarter and Year Ended December 31, 2004.

 

 

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
Date: January 31, 2005   COUSINS PROPERTIES INCORPORATED
 
        
  By:   /s/ James A. Fleming
       
      James A. Fleming
      Executive Vice President and Chief Financial Officer
      (Duly Authorized Officer and Principal Financial Officer)

 

EX-99.1 2 g92938exv99w1.txt EX-99.1 PRESS RELEASE DATED JANUARY 31, 2005 EXHIBIT 99.1 COUSINS PROPERTIES INCORPORATED QUARTERLY INFORMATION PACKAGE FOR THE QUARTER ENDED DECEMBER 31, 2004 I. PRESS RELEASE Press Release Consolidated Statements of Income Net Income Available and Funds From Operations Basic Reconciliation Certain matters contained in this package are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company's ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the failure of assets under contract for sale to ultimately close and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Current Report on Form 8-K filed on December 10, 2003. The words "believes", "expects", "anticipates", "estimates" and 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 these plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak only 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. [COUSINS LOGO] News Release FOR IMMEDIATE RELEASE CONTACT: James A. Fleming Mark A. Russell Executive Vice President and Senior Vice President and Chief Financial Officer Senior Investment Officer (770) 857-2416 (770) 857-2449 jimfleming@cousinsproperties.com markrussell@cousinsproperties.com WEB SITE ADDRESS: WWW.COUSINSPROPERTIES.COM COUSINS PROPERTIES REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2004 - REPORTS "NET INCOME AVAILABLE" OF $2.29 PER SHARE AND FFO OF $0.53 PER SHARE FOR THE FOURTH QUARTER OF 2004. - REPORTS "NET INCOME AVAILABLE" OF $7.84 PER SHARE AND FFO OF $2.13 PER SHARE FOR THE YEAR ENDED DECEMBER 31, 2004. - SALES OF OFFICE AND RETAIL ASSETS REACHED $209 MILLION IN THE FOURTH QUARTER AND $901 MILLION IN THE YEAR ENDED DECEMBER 31, 2004. ATLANTA (January 31, 2005) - - Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the fourth quarter and year ended December 31, 2004. All per share amounts are reported on a diluted basis; basic per share data is included in the Consolidated Statements of Income accompanying this release. Net Income Available to Common Stockholders ("Net Income Available") was $118.5 million, or $2.29 per share, for the fourth quarter of 2004 compared with $8.5 million, or $0.17 per share, for the fourth quarter of 2003. For the year ended December 31, 2004, Net Income Available was $399.7 million, or $7.84 per share, compared with $238.8 million, or $4.83 per share, for the same period last year. Funds From Operations Available to Common Stockholders ("FFO") was $27.3 million, or $0.53 per share, for the fourth quarter of 2004 compared with $26.0 million, or $0.52 per share, for the fourth quarter of 2003. For the year ended December 31, 2004, FFO was $108.9 million, or $2.13 per share, compared with $125.0 million, or $2.53 per share, for the same period last year. Included in Net Income Available for the fourth quarter of 2004 is a deferred gain of $18.6 million related to the Company's contribution of land in 1986 to Wildwood Associates, a venture in which the -MORE- 2500 Windy Ridge Parkway - Suite 1600 - Atlanta, Georgia 30339-5683 - 770/955-2200 - FAX 770/857-2360
CUZ Reports Quarter Results Page 2 January 31, 2005 Company has a 50% interest. The accounting for this deferred gain is consistent with the deferred gain recognized in the third quarter of 2004 from the Wildwood property sales. The Company was given equity credit in the venture for the value of the land at the time of contribution, which was greater than the Company's basis. This stepped-up basis created a deferred gain, a portion of which was recognized in the fourth quarter of 2004 upon the sale of two Wildwood office buildings and eight ground leases. The deferred gain was triggered as the sale of the Wildwood buildings and ground leases represented the culmination of the earnings process. One-half of the deferred gain, which represents the portion attributable to the Company's half-interest in the land underlying the Wildwood office buildings and ground leases, is included in net gain on sale of depreciable investment property, and excluded from FFO. The other half of the deferred gain, which relates to the half-interest in the land that was transferred to our partner in 1986, is included in gain on sale of undepreciated investment properties and included in FFO. The Company and Wildwood Associates still have a total of 94 acres of land available for sale or development in Wildwood Office Park. Net Income Available and FFO increased in the fourth quarter of 2004 due to an increase in net profits from residential lot and tract sales, including the Company's share of residential lot sales in unconsolidated joint ventures and recognition of the deferred gain mentioned above, an increase in net revenues from recently developed and acquired properties and a decrease in interest expense resulting primarily from the retirement of debt associated with property sales. The increase in FFO and Net Income Available was partially offset by a decrease in net revenues from sold properties, including the Company's share of those sold by joint ventures, and a decrease in leasing and other fees. Net Income Available was further increased in the fourth quarter of 2004 when compared with the fourth quarter of 2003 due to higher gains on sales of depreciable investment properties, including the Company's share of those sold by joint ventures, and reduced depreciation expense from sold properties. For the year ended December 31, 2004, Net Income Available and FFO reflected a decrease in lease termination fees and a decrease in net revenues from sold properties, including those sold by joint ventures, a full year of preferred dividends in 2004 compared with only five months of preferred dividends in 2003 and a decrease in leasing and other fees. Partially offsetting the decrease in Net Income Available and FFO was an increase in net profits from residential lot and tract sales, including the Company's share of residential lot sales in unconsolidated joint ventures and recognition of the deferred gain discussed above. An increase in net revenues from recently developed and acquired properties and a decrease in interest expense resulting primarily from the retirement of debt associated with property sales also partially offset the decrease in Net Income Available and FFO. Net Income Available also increased due to higher gains on sales of depreciable investment properties, including the Company's share of those sold by joint ventures, and reduced depreciation expense from sold properties in the year ended December 31, 2004 compared with the year ended December 31, 2003. At December 31, 2004, the Company's portfolio of operational office and medical office buildings was 82% leased and its portfolio of operational retail centers was 92% leased, resulting in an 84% overall leased level. -MORE- CUZ Reports Quarter Results Page 3 January 31, 2005 Fourth quarter highlights included the following: - The Company, along with its joint venture partners, sold six office buildings, eight ground leases and one retail center comprising a total of 2.2 million square feet for sales prices totaling $394.2 million. The Company's share of the sales prices and square footage of the sold properties was $208.9 million and 1.2 million square feet, respectively. The sale of these assets generated GAAP gains to the Company of $103.0 million, and resulted in value creation to the Company of $47.2 million after removing $55.8 million attributable to accumulated depreciation and other adjustments. The Company will continue to manage two of the sold office buildings along with the eight ground leases. - In addition to the sale of the operating assets mentioned above, the Company sold 30 acres of land at the North Point/Westside mixed-use project in Alpharetta, Georgia for $6.1 million, six acres of land in Wildwood Office Park for $3.8 million and a ground lease at the Company's North Point MarketCenter for $1.6 million. The GAAP gains generated from these land sales totaled $8.7 million. - In November 2004, Phase I of The Avenue(R) Viera opened in Brevard County, Florida. Phase I of the retail center consists of 361,000 square feet of specialty retail shops, of which the Company owns 286,000 square feet and Rave Theater owns 75,000 square feet. As of December 31, 2004, the Company-owned portion of Phase I was 79% leased and 82% committed. The Company may expand the project with a 20,000-square-foot Phase II. When completed, the project is expected to include approximately 66 retailers and restaurants and a landscaped urban park. - The Company acquired 22 acres in December 2004 for the development of Viera MarketCenter, a power center adjacent to The Avenue(R) Viera. When Phase I is completed, projected for October 2005, Viera MarketCenter is anticipated to contain a total of 104,000 square feet, including a 96,000-square-foot Kohl's. - In December 2004, the Company, in conjunction with its joint venture partner, commenced development of a condominium project in Atlanta, Georgia. Construction is anticipated to be completed in the fourth quarter of 2005 and when complete, the project is expected to include 117 units. - The Company paid a special cash dividend in November 2004 to common stockholders of approximately $356 million, or $7.15 per share, as a result of taxable gains generated from sales of wholly-owned and joint venture assets, including the transactions mentioned above. - The Company closed a public offering of 4,000,000 shares of 7.50% Series B Cumulative Redeemable Preferred Stock in December 2004. The net proceeds from the offering were approximately $96.5 million and were used to pay down the Company's unsecured credit facility and for general corporate purposes, including funding ongoing development activities. -MORE- CUZ Reports Quarter Results Page 4 January 31, 2005 Other 2004 highlights for the Company included the following: - In conjunction with its joint venture partners, sold nineteen office buildings, eight ground leases and one retail center comprising a total of 5.7 million square feet for sales prices totaling $1.3 billion. The Company's share of the sales prices and square footage of the sold properties was $901 million and 3.7 million square feet, respectively. The sale of these assets generated GAAP gains to the Company of $345.0 million, and resulted in value creation to the Company of $201.3 million after removing $143.7 million attributable to accumulated depreciation and other adjustments. The Company will continue to manage thirteen of the sold office buildings and the eight ground leases. - Commenced construction of three retail projects and one medical office building in 2004. When completed, the projects are expected to add 810,000 square feet to the Company's operating portfolio at a cost of approximately $132.0 million. - Increased FFO from residential lot and tract sales by $29.2 million from 2003, including recognition of the land portion of the Wildwood deferred gain of approximately $14.6 million, and commenced development of four new residential developments in joint ventures totaling over 1,600 lots. - Opened one new office building in Austin, Texas consisting of 529,000 square feet. - Renewed and recast its unsecured revolving credit facility, increasing the size by $50 million to $325 million. - Completed over 1.7 million square feet of new leases and renewals, including significant leases with Troutman Sanders, General Electric, Parisian, Kohl's and Kids II. Recent developments in 2005 include the following: - The Company acquired 182 acres in Henry County, a suburb of Atlanta, for development of King Mill Distribution Park, an industrial park projected to contain approximately 2.9 million square feet. The park will be developed by Cousins/Weeks, a partnership of Cousins Properties and Weeks Properties. The first phase is planned to consist of a 416,000-square-foot building expandable to 790,000 square feet. A construction start date has not been determined. - In January 2005, the Company sold 7 acres in Wildwood Office Park for $2.6 million, generating GAAP gains of approximately $2.2 million. -MORE- CUZ Reports Quarter Results Page 5 January 31, 2005 "Last year was an important year for Cousins. Our philosophy of harvesting value created through development was never more evident than in 2004, when we and our venture partners sold approximately $1.3 billion worth of office buildings, taking advantage of a rare pricing environment for high quality buildings. The sales allowed us to return $7.15 per share to common stockholders through a special dividend, and trimmed our capital base to a level where we hope to continue to produce the types of returns our stockholders have come to enjoy over the years," said Tom Bell, President and CEO of Cousins Properties. "In 2004, we also saw the creation of our Industrial Division, under the leadership of veteran developer Forrest Robinson, and the formation of the Cousins/Weeks partnership to develop industrial properties. This further diversification was a natural step for Cousins, and we're happy the timing was right to partner with Ray Weeks, one of the most accomplished industrial developers of the past 20 years." Mr. Bell continued, "All of our divisions performed well in 2004. Our Retail Division had a strong year, delivering one Avenue(R) project in Florida and beginning a new Avenue(R) project and two other retail centers. The division's potential development pipeline grew with power center and Avenue(R) projects proposed in markets including Atlanta, Austin, Albuquerque and San Jose. The Land Division forged a deeper relationship with its partners in 2004, and we now have the potential to develop over time more than 12,000 lots in Georgia, Florida and Texas, making Cousins one of the most active community developers in the country. Finally, our Office Division made tremendous progress toward our next signature project, a mixed-use development in the heart of the Buckhead district in Atlanta. All of this activity points to a busy 2005." The Consolidated Statements of Income and a schedule entitled Net Income and Funds From Operations Basic Reconciliation, which reconciles Net Income Available to FFO, are attached to this press release. More detailed information on the fourth quarter and year-to-date Net Income 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 "Quarterly Disclosures" and "SEC Filings" links on the Investor Relations page of the Company's Web site at www.cousinsproperties.com. This information may also be obtained by calling the Company's Investor Relations Department at (770) 857-2449. The Company will conduct a conference call at 11:00 a.m. (Eastern time) on Tuesday, February 1, 2005, to discuss the results of the quarter and year ended December 31, 2004. The number to call for this interactive teleconference is (719) 457-2679. A replay of the conference call will be available for 14 days by dialing (719) 457-0820 and entering the pass code, 938565. The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter 2004 earnings release conference call. The live broadcast will be available through the "Q4 2004 Cousins Properties Incorporated Earnings Conference Call" link on the Investor Relations page of the Company's Web site, at www.streetevents.com and at www.fulldisclosure.com. The rebroadcast will be available on the Investor Relations page of the Company's Web site for 30 days. -MORE- CUZ Reports Quarter Results Page 6 January 31, 2005 Cousins Properties Incorporated, headquartered in Atlanta, has extensive experience in the real estate industry including the development, acquisition, financing, management and leasing of properties. The property types that Cousins actively invests in include office, retail, medical office, industrial and land development projects. The Company's portfolio consists of interests in 7.2 million square feet of office and medical office space, 3.2 million square feet of retail space, over 3,000 acres of strategically located land tracts for sale or future development, and significant land holdings for development of single-family residential communities. Cousins also provides leasing and management services to third-party investors; its client-services portfolio comprises 10.4 million square feet of office space. Cousins is a fully integrated equity real estate investment trust (REIT) that has been public since 1962 and trades on the New York Stock Exchange under the symbol "CUZ." For more information on the Company, please visit Cousins' Web site at www.cousinsproperties.com. 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 risks, including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company's ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the failure of assets under contract for sale to ultimately close and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Current Report on Form 8-K filed on December 10, 2003. The words "believes", "expects", "anticipates", "estimates" and 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 these 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. -MORE- COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2004 AND 2003 (Unaudited, in thousands, except per share amounts)
THREE MONTHS ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, --------------------- --------------------- 2004 2003 2004 2003 --------- --------- --------- --------- REVENUES: Rental property revenues $ 22,556 $ 25,615 $ 101,102 $ 101,389 Development income 1,129 640 3,310 2,870 Management fees 2,248 2,000 8,704 8,519 Leasing and other fees 1,520 3,874 4,463 6,991 Residential lot and outparcel sales 5,105 4,572 16,700 12,945 Interest and other 879 (34) 2,528 3,940 --------- --------- --------- --------- 33,437 36,667 136,807 136,654 --------- --------- --------- --------- COSTS AND EXPENSES: Rental property operating expenses 8,407 8,894 33,814 32,674 General and administrative expenses 8,683 7,417 33,702 29,606 Depreciation and amortization 9,620 9,449 37,231 39,477 Residential lot and outparcel cost of sales 4,120 3,577 12,007 10,022 Interest expense 2,707 4,413 14,623 22,576 Property taxes on undeveloped land 139 216 611 768 Other 534 964 2,754 3,290 --------- --------- --------- --------- 34,210 34,930 134,742 138,413 --------- --------- --------- --------- (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND INCOME FROM UNCONSOLIDATED JOINT VENTURES (773) 1,737 2,065 (1,759) PROVISION FOR INCOME TAXES FROM OPERATIONS (1,178) (1,579) (2,744) (2,596) INCOME FROM UNCONSOLIDATED JOINT VENTURES 79,565 3,527 204,493 24,619 --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES 77,614 3,685 203,814 20,264 GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION 29,408 6,421 118,056 100,558 --------- --------- --------- --------- INCOME FROM CONTINUING OPERATIONS 107,022 10,106 321,870 120,822 DISCONTINUED OPERATIONS, NET OF APPLICABLE INCOME TAX PROVISION: Income from discontinued operations (326) 289 3,987 27,880 Gain on sale of investment properties 13,988 61 81,927 93,459 --------- --------- --------- --------- 13,662 350 85,914 121,339 --------- --------- --------- --------- NET INCOME 120,684 10,456 407,784 242,161 PREFERRED DIVIDENDS 2,230 1,937 8,042 3,358 --------- --------- --------- --------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 118,454 $ 8,519 $ 399,742 $ 238,803 ========= ========= ========= ========= BASIC PER SHARE INFORMATION: Income from continuing operations $ 2.11 $ 0.17 $ 6.40 $ 2.43 Income from discontinued operations 0.28 0.01 1.76 2.51 --------- --------- --------- --------- Basic net income available to common stockholders $ 2.39 $ 0.18 $ 8.16 $ 4.94 ========= ========= ========= ========= DILUTED PER SHARE INFORMATION: Income from continuing operations $ 2.03 $ 0.16 $ 6.15 $ 2.38 Income from discontinued operations 0.26 0.01 1.69 2.45 --------- --------- --------- --------- Diluted net income available to common stockholders $ 2.29 $ 0.17 $ 7.84 $ 4.83 ========= ========= ========= ========= CASH DIVIDENDS DECLARED PER COMMON SHARE $ 7.52 $ 0.37 $ 8.63 $ 3.55 ========= ========= ========= ========= BASIC WEIGHTED AVERAGE SHARES 49,567 48,474 49,005 48,313 ========= ========= ========= ========= DILUTED WEIGHTED AVERAGE SHARES 51,677 50,068 51,016 49,415 ========= ========= ========= =========
COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES NET INCOME AND FUNDS FROM OPERATIONS BASIC RECONCILIATION FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2004 AND 2003 (UNAUDITED) (In thousands, except per share amounts)
THREE MONTHS ENDED YEAR ENDED DECEMBER 31, DECEMBER 31, -------------------- --------------------- 2004 2003 2004 2003 --------- -------- --------- --------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 118,454 $ 8,519 $ 399,742 $ 238,803 Depreciation and amortization: Consolidated properties 9,620 9,449 37,231 39,477 Discontinued properties 44 2,317 5,298 14,678 Share of unconsolidated joint ventures 2,631 7,511 15,915 21,299 Depreciation of furniture, fixtures and equipment and amortization of specifically identifiable intangible assets: Consolidated properties (658) (670) (2,652) (2,511) Share of unconsolidated joint ventures (6) (8) (35) (34) Gain on sale of investment properties, net of applicable income tax provision Consolidated properties (29,408) (6,421) (118,056) (100,558) Discontinued properties (13,988) (61) (81,927) (93,459) Share of unconsolidated joint ventures (76,965) - (176,265) - Gain on sale of undepreciated investment properties 17,557 5,323 29,627 7,270 --------- -------- --------- --------- FUNDS FROM OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS $ 27,281 $ 25,959 $ 108,878 $ 124,965 ========= ======== ========= ========= PER COMMON SHARE - BASIC: NET INCOME AVAILABLE $ 2.39 $ .18 $ 8.16 $ 4.94 ========= ======== ========= ========= FUNDS FROM OPERATIONS $ .55 $ .54 $ 2.22 $ 2.59 ========= ======== ========= ========= WEIGHTED AVERAGE SHARES 49,567 48,474 49,005 48,313 ========= ======== ========= ========= PER COMMON SHARE - DILUTED: NET INCOME AVAILABLE $ 2.29 $ .17 $ 7.84 $ 4.83 ========= ======== ========= ========= FUNDS FROM OPERATIONS $ .53 $ .52 $ 2.13 $ 2.53 ========= ======== ========= ========= DILUTED WEIGHTED AVERAGE SHARES 51,677 50,068 51,016 49,415 ========= ======== ========= =========
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 Consolidated Entities and its unconsolidated joint ventures. Effective January 1, 2003, the Company adopted the National Association of Real Estate Investment Trusts' ("NAREIT") definition of FFO, which is net income available to common stockholders (computed in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. In October 2003, NAREIT revised its prior FFO implementation guidance by stating that impairment write-downs of depreciable real estate assets should no longer be an adjustment to FFO. Accordingly, the Company's FFO for the year ended December 31, 2003 was restated to include the $551,000 impairment loss previously recognized as a reduction in FFO. 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. 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 the operating performance of its reportable segments and of its divisions based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and employees. Page 1 of 1 EX-99.2 3 g92938exv99w2.txt EX-99.2 SUPPLEMENTAL INFORMATION FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2004 Exhibit 99.2 COUSINS PROPERTIES INCORPORATED QUARTERLY INFORMATION PACKAGE FOR THE QUARTER ENDED DECEMBER 31, 2004 II. QUARTERLY SUPPLEMENTAL INFORMATION Net Income and Funds From Operations - Supplemental Detail Same Property Growth Development Pipeline Consolidated Balance Sheets Portfolio Listing Top 25 Largest Tenants Inventory of Land Held for Investment or Future Development Inventory of Residential Lots Under Development Square Feet Expiring: Office Medical Office Retail Summary of Gains on Sales of Investment Properties Summary of 2004 Office Asset Sales Reconciliations of Non-GAAP Financial Measures Discussion of Non-GAAP Financial Measures Certain matters contained in this package are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company's ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the failure of assets under contract for sale to ultimately close and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Current Report on Form 8-K filed on December 10, 2003. The words "believes", "expects", "anticipates", "estimates" and 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 these plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak only 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. COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
2000 2001 2002 2003 1st 2003 2nd ------------------------------------------------------------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - (SEE PAGE 5) 62,043 70,815 47,872 27,594 143,500 ------------------------------------------------------------- FFO AVAILABLE TO COMMON STOCKHOLDERS ("FFO") - (SEE PAGE 5) 97,299 108,122 113,366 46,528 27,028 ------------------------------------------------------------- WEIGHTED AVERAGE COMMON SHARES 48,632 49,205 49,252 48,135 48,267 DILUTED WEIGHTED AVERAGE COMMON SHARES 49,731 50,280 49,937 48,780 49,228 NET INCOME PER COMMON SHARE - BASIC 1.28 1.44 0.97 0.57 2.97 NET INCOME PER COMMON SHARE - DILUTED 1.25 1.41 0.96 0.57 2.92 FFO PER COMMON SHARE - BASIC 2.00 2.20 2.30 0.97 0.56 FFO PER COMMON SHARE - DILUTED 1.96 2.15 2.27 0.95 0.55 (A) 2ND GENERATION TI & LEASING COSTS AND BUILDING CAPEX (1) 4,810 6,073 12,988 4,358 1,916 REGULAR COMMON DIVIDENDS 60,315 68,595 73,345 17,834 17,919 SPECIAL COMMON DIVIDEND - - - - - REGULAR COMMON DIVIDENDS PER SHARE 1.24 1.39 1.48 0.37 0.37 SPECIAL COMMON DIVIDEND PER SHARE - - - - - COMMON STOCK PRICE AT PERIOD END 27.9375 24.36 24.70 25.85 27.90 NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END 49,211 49,425 48,386 48,343 48,491 PREFERRED STOCK - SERIES A - PRICE AT PERIOD END - - - - - NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END - - - - - PREFERRED STOCK - SERIES B - PRICE AT PERIOD END - - - - - NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END - - - - - COMMON EQUITY MARKET CAPITALIZATION 1,374,832 1,203,993 1,195,134 1,249,667 1,352,899 PREFERRED EQUITY MARKET CAPITALIZATION - - - - - (B) ADJUSTED DEBT (1) 671,068 766,503 844,880 859,595 724,437 ------------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,045,900 1,970,496 2,040,014 2,109,261 2,077,336 ------------------------------------------------------------- ADJUSTED DEBT AS A % OF TOTAL MARKET CAPITALIZATION 33% 39% 41% 41% 35% (B) RECOURSE DEBT (1) 174,522 154,018 160,443 178,239 18,842 RECOURSE DEBT AS A % OF TOTAL MARKET CAPITALIZATION 9% 8% 8% 8% 1% COMMON EQUITY MARKET CAPITALIZATION 1,374,832 1,203,993 1,195,134 1,249,667 1,352,899 PREFERRED EQUITY MARKET CAPITALIZATION - - - - - (B) TOTAL DEBT (INCLUDING SHARE OF JV'S) 741,377 861,188 935,646 949,340 813,148 ------------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,116,209 2,065,181 2,130,780 2,199,007 2,166,047 ------------------------------------------------------------- TOTAL DEBT AS A % OF TOTAL MARKET CAPITALIZATION 35% 42% 44% 43% 38% (C) CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV'S) (1) 27,907 41,546 50,631 13,000 12,339 FFO BEFORE INTEREST 125,206 149,668 163,997 59,528 39,367 INTEREST EXPENSE COVERAGE RATIO 4.49 3.60 3.24 4.58 3.19 (D) FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS)(1) 37,052 52,588 65,254 16,329 15,798 FFO PLUS EXPENSED FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS) 125,365 150,293 164,848 59,745 39,578 FIXED CHARGE COVERAGE RATIO (EXCLUDING PREFERRED DIVIDENDS) 3.38 2.86 2.53 3.66 2.51 (D) FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS)(1) 37,052 52,588 65,254 16,329 15,798 FFO PLUS EXPENSED FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) 125,365 150,293 164,848 59,745 39,578 FIXED CHARGE COVERAGE RATIO (INCLUDING PREFERRED DIVIDENDS) 3.38 2.86 2.53 3.66 2.51 2003 3rd 2003 4th 2003 2004 1st ------------------------------------------------------------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - (SEE PAGE 5) 59,190 8,519 238,803 10,842 ------------------------------------------------------------- FFO AVAILABLE TO COMMON STOCKHOLDERS ("FFO") - (SEE PAGE 5) 25,450 25,959 124,965 26,995 ------------------------------------------------------------- WEIGHTED AVERAGE COMMON SHARES 48,370 48,474 48,313 48,637 DILUTED WEIGHTED AVERAGE COMMON SHARES 49,643 50,068 49,415 50,421 NET INCOME PER COMMON SHARE - BASIC 1.22 0.18 4.94 0.22 NET INCOME PER COMMON SHARE - DILUTED 1.19 0.17 4.83 0.22 FFO PER COMMON SHARE - BASIC 0.53 0.54 2.59 0.56 FFO PER COMMON SHARE - DILUTED 0.51 0.52 2.53 0.54 (A) 2ND GENERATION TI & LEASING COSTS AND BUILDING CAPEX (1) 2,324 5,909 14,507 739 REGULAR COMMON DIVIDENDS 17,945 17,996 71,694 18,096 SPECIAL COMMON DIVIDEND 100,544 - 100,544 - REGULAR COMMON DIVIDENDS PER SHARE 0.37 0.37 1.48 0.37 SPECIAL COMMON DIVIDEND PER SHARE 2.07 - 2.07 - COMMON STOCK PRICE AT PERIOD END 27.75 30.60 30.60 32.79 NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END 48,572 48,835 48,835 48,996 PREFERRED STOCK - SERIES A - PRICE AT PERIOD END 25.39 27.25 27.25 27.50 NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END 4,000 4,000 4,000 4,000 PREFERRED STOCK - SERIES B - PRICE AT PERIOD END - - - - NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END - - - - COMMON EQUITY MARKET CAPITALIZATION 1,347,873 1,494,351 1,494,351 1,606,579 PREFERRED EQUITY MARKET CAPITALIZATION 101,560 109,000 109,000 110,000 (B) ADJUSTED DEBT (1) 679,237 697,050 697,050 741,630 ------------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,128,670 2,300,401 2,300,401 2,458,209 ------------------------------------------------------------- ADJUSTED DEBT AS A % OF TOTAL MARKET CAPITALIZATION 32% 30% 30% 30% (B) RECOURSE DEBT (1) 20,783 20,697 20,697 57,555 RECOURSE DEBT AS A % OF TOTAL MARKET CAPITALIZATION 1% 1% 1% 2% COMMON EQUITY MARKET CAPITALIZATION 1,347,873 1,494,351 1,494,351 1,606,579 PREFERRED EQUITY MARKET CAPITALIZATION 101,560 109,000 109,000 110,000 (B) TOTAL DEBT (INCLUDING SHARE OF JV'S) 766,895 783,638 783,638 827,172 ------------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,216,328 2,386,989 2,386,989 2,543,751 ------------------------------------------------------------- TOTAL DEBT AS A % OF TOTAL MARKET CAPITALIZATION 35% 33% 33% 33% (C) CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV'S) (1) 10,461 9,974 45,774 10,255 FFO BEFORE INTEREST 35,911 35,933 170,739 37,250 INTEREST EXPENSE COVERAGE RATIO 3.43 3.60 3.73 3.63 (D) FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS)(1) 13,924 13,529 59,580 13,831 FFO PLUS EXPENSED FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS) 35,997 36,018 171,338 37,340 FIXED CHARGE COVERAGE RATIO (EXCLUDING PREFERRED DIVIDENDS) 2.59 2.66 2.88 2.70 (D) FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS)(1) 15,345 15,466 62,938 15,769 FFO PLUS EXPENSED FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) 37,418 37,955 174,696 39,278 FIXED CHARGE COVERAGE RATIO (INCLUDING PREFERRED DIVIDENDS) 2.44 2.45 2.78 2.49 2004 2nd 2004 3rd 2004 4th 2004 ---------------------------------------------------------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS - (SEE PAGE 5) 45,707 224,739 118,454 399,742 ---------------------------------------------------------- FFO AVAILABLE TO COMMON STOCKHOLDERS ("FFO") - (SEE PAGE 5) 25,266 29,336 27,281 108,878 ---------------------------------------------------------- WEIGHTED AVERAGE COMMON SHARES 48,750 49,060 49,567 49,005 DILUTED WEIGHTED AVERAGE COMMON SHARES 50,405 50,943 51,677 51,016 NET INCOME PER COMMON SHARE - BASIC 0.94 4.58 2.39 8.16 NET INCOME PER COMMON SHARE - DILUTED 0.91 4.41 2.29 7.84 FFO PER COMMON SHARE - BASIC 0.52 0.60 0.55 2.22 FFO PER COMMON SHARE - DILUTED 0.50 0.58 0.53 2.13 (A) 2ND GENERATION TI & LEASING COSTS AND BUILDING CAPEX (1) 1,687 9,098 7,734 19,258 REGULAR COMMON DIVIDENDS 18,133 18,191 18,449 72,869 SPECIAL COMMON DIVIDEND - - 356,493 356,493 REGULAR COMMON DIVIDENDS PER SHARE 0.37 0.37 0.37 1.48 SPECIAL COMMON DIVIDEND PER SHARE - - 7.15 7.15 COMMON STOCK PRICE AT PERIOD END 32.95 34.31 30.27 30.27 NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END 49,095 49,740 50,092 50,092 PREFERRED STOCK - SERIES A - PRICE AT PERIOD END 25.20 25.79 26.15 26.15 NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END 4,000 4,000 4,000 4,000 PREFERRED STOCK - SERIES B - PRICE AT PERIOD END - - 25.00 25.00 NUMBER OF PREFERRED SHARES OUTSTANDING AT PERIOD END - - 4,000 4,000 COMMON EQUITY MARKET CAPITALIZATION 1,617,680 1,706,579 1,516,285 1,516,285 PREFERRED EQUITY MARKET CAPITALIZATION 100,800 103,160 204,600 204,600 (B) ADJUSTED DEBT (1) 702,534 430,517 355,915 355,915 ---------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,421,014 2,240,256 2,076,800 2,076,800 ---------------------------------------------------------- ADJUSTED DEBT AS A % OF TOTAL MARKET CAPITALIZATION 29% 19% 17% 17% (B) RECOURSE DEBT (1) 101,269 50,365 50,238 50,238 RECOURSE DEBT AS A % OF TOTAL MARKET CAPITALIZATION 4% 2% 2% 2% COMMON EQUITY MARKET CAPITALIZATION 1,617,680 1,706,579 1,516,285 1,516,285 PREFERRED EQUITY MARKET CAPITALIZATION 100,800 103,160 204,600 204,600 (B) TOTAL DEBT (INCLUDING SHARE OF JV'S) 786,931 513,792 438,050 438,050 ---------------------------------------------------------- TOTAL MARKET CAPITALIZATION 2,505,411 2,323,531 2,158,935 2,158,935 ---------------------------------------------------------- TOTAL DEBT AS A % OF TOTAL MARKET CAPITALIZATION 31% 22% 20% 20% (C) CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV'S) (1) 10,115 7,522 3,764 31,656 FFO BEFORE INTEREST 35,381 36,858 31,045 140,534 INTEREST EXPENSE COVERAGE RATIO 3.50 4.90 8.25 4.44 (D) FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS)(1) 13,800 10,681 5,666 43,978 FFO PLUS EXPENSED FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS) 35,518 37,003 31,178 141,039 FIXED CHARGE COVERAGE RATIO (EXCLUDING PREFERRED DIVIDENDS) 2.57 3.46 5.50 3.21 (D) FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS)(1) 15,737 12,618 7,896 52,020 FFO PLUS EXPENSED FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) 37,455 38,940 33,408 149,081 FIXED CHARGE COVERAGE RATIO (INCLUDING PREFERRED DIVIDENDS) 2.38 3.09 4.23 2.87
See Footnotes on Page 14 Page 1 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH -------------------------------------------------------------------- CONSOLIDATED ENTITY FFO AND NET INCOME: (E) RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (1): OFFICE: 3100 WINDY HILL RD 2,632 2,688 2,693 743 764 758 723 3301 WINDY RIDGE PARKWAY 804 1,122 1,517 380 401 386 388 100 NORTH POINT CENTER EAST 0 0 0 0 0 0 73 200 NORTH POINT CENTER EAST 0 0 0 0 0 0 23 333 NORTH POINT CENTER EAST 2,287 2,410 2,447 589 434 220 205 555 NORTH POINT CENTER EAST 1,691 2,603 2,546 401 1,364 224 249 615 PEACHTREE STREET 1,548 1,930 1,987 490 513 488 431 101 INDEPENDENCE CENTER 8,484 9,173 8,916 2,239 2,299 2,280 2,267 LAKESHORE PARK PLAZA 1,346 1,351 1,113 284 324 301 322 333 JOHN CARLYLE 2,806 3,259 3,535 884 1,469 815 784 INFORUM 12,153 13,813 13,714 3,484 3,407 3,503 3,449 600 UNIVERSITY PARK PLACE 401 1,631 1,757 468 456 466 481 THE POINTS AT WATERVIEW 14 1,717 1,040 345 405 541 511 ONE GEORGIA CENTER 336 3,822 3,438 746 742 697 758 1900 DUKE STREET 402 2,245 2,698 694 754 702 782 FROST BANK TOWER 0 0 0 0 0 0 0 GALLERIA 75 0 0 0 0 0 0 0 COLUMBUS BAZAAR 0 0 0 0 0 0 0 505 & 511 PEACHTREE STREET 0 0 0 0 0 0 0 ------------------------------------------------------------------- SUBTOTAL 34,904 47,764 47,401 11,747 13,332 11,381 11,446 ------------------------------------------------------------------- MEDICAL OFFICE: ATHEROGENICS 1,083 1,114 1,134 286 293 301 301 MERIDIAN MARK PLAZA 3,439 3,556 4,073 1,018 1,006 1,081 1,048 ------------------------------------------------------------------ SUBTOTAL 4,522 4,670 5,207 1,304 1,299 1,382 1,349 ------------------------------------------------------------------ RETAIL: GA 400 LAND LEASES 1,366 1,331 1,298 374 348 355 322 COLONIAL PLAZA MARKETCENTER 4,861 746 0 0 0 0 0 LAGUNA NIGUEL PROMENADE 488 0 0 0 0 0 0 THE AVENUE EAST COBB 4,841 5,396 5,327 1,494 1,406 1,404 1,516 THE AVENUE OF THE PENINSULA 1,602 2,522 4,284 2,189 668 925 790 THE AVENUE PEACHTREE CITY 0 1,191 3,160 799 832 755 643 THE AVENUE WEST COBB 0 0 0 0 0 0 655 AVENUE VIERA 0 0 0 0 0 0 0 ------------------------------------------------------------------- SUBTOTAL 13,158 11,186 14,069 4,856 3,254 3,439 3,926 ------------------------------------------------------------------- OTHER RENTAL OPERATIONS: OTHER 12 156 0 0 0 0 0 ------------------------------------------------------------------- SUBTOTAL 12 156 0 0 0 0 0 ------------------------------------------------------------------- TOTAL CONSOLIDATED RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 52,596 63,776 66,677 17,907 17,885 16,202 16,721 2003 2004 IST 2004 2ND 2004 3RD 2004 4TH 2004 ------------------------------------------------------ CONSOLIDATED ENTITY FFO AND NET INCOME: (E) RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (1): OFFICE: 3100 WINDY HILL RD 2,988 746 748 752 728 2,974 3301 WINDY RIDGE PARKWAY 1,555 389 430 429 411 1,659 100 NORTH POINT CENTER EAST 73 212 241 281 276 1,010 200 NORTH POINT CENTER EAST 23 102 97 95 123 417 333 NORTH POINT CENTER EAST 1,448 214 216 302 304 1,036 555 NORTH POINT CENTER EAST 2,238 1,908 275 228 177 2,588 615 PEACHTREE STREET 1,922 440 464 264 247 1,415 101 INDEPENDENCE CENTER 9,085 2,275 2,351 647 21 5,294 LAKESHORE PARK PLAZA 1,231 351 382 374 352 1,459 333 JOHN CARLYLE 3,952 856 460 (3) 3 1,316 INFORUM 13,843 3,581 3,491 3,063 2,673 12,808 600 UNIVERSITY PARK PLACE 1,871 457 460 457 423 1,797 THE POINTS AT WATERVIEW 1,802 833 523 545 478 2,379 ONE GEORGIA CENTER 2,943 736 332 363 (62) 1,369 1900 DUKE STREET 2,932 742 390 (2) (1) 1,129 FROST BANK TOWER 0 21 711 1,172 1,582 3,486 GALLERIA 75 0 124 245 277 253 899 COLUMBUS BAZAAR 0 0 5 (43) (86) (124) 505 & 511 PEACHTREE STREET 0 0 0 0 38 38 -------------------------------------------------------- SUBTOTAL 47,906 13,987 11,821 9,201 7,940 42,949 -------------------------------------------------------- MEDICAL OFFICE: ATHEROGENICS 1,181 303 306 307 306 1,222 MERIDIAN MARK PLAZA 4,153 1,044 1,059 1,065 1,056 4,224 -------------------------------------------------------- SUBTOTAL 5,334 1,347 1,365 1,372 1,362 5,446 -------------------------------------------------------- RETAIL: GA 400 LAND LEASES 1,399 385 365 365 348 1,463 COLONIAL PLAZA MARKETCENTER 0 0 0 0 0 0 LAGUNA NIGUEL PROMENADE 0 0 0 0 0 0 THE AVENUE EAST COBB 5,820 1,404 1,401 1,487 1,372 5,664 THE AVENUE OF THE PENINSULA 4,572 1,001 1,193 968 1,051 4,213 THE AVENUE PEACHTREE CITY 3,029 993 833 749 855 3,430 THE AVENUE WEST COBB 655 882 953 1,068 1,032 3,935 AVENUE VIERA 0 0 0 0 189 189 -------------------------------------------------------- SUBTOTAL 15,475 4,665 4,745 4,637 4,847 18,894 -------------------------------------------------------- OTHER RENTAL OPERATIONS: OTHER 0 0 (1) 0 0 (1) -------------------------------------------------------- SUBTOTAL 0 0 (1) 0 0 (1) -------------------------------------------------------- TOTAL CONSOLIDATED RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 68,715 19,999 17,930 15,210 14,149 67,288
See Footnotes on Page 14 Page 2 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
2000 2001 2002 2003 1st 2003 2nd 2003 3rd 2003 4th ---------------------------------------------------------------- (F) DISCONTINUED OPERATIONS RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (1): NORTHSIDE/ALPHARETTA I 1,754 1,641 1,819 389 420 412 385 NORTHSIDE/ALPHARETTA II 1,734 2,335 2,255 596 566 475 523 101 SECOND STREET 9,633 13,616 14,557 2,396 2,314 3,585 2,337 55 SECOND STREET 0 0 12,724 22,344 1,545 1,558 1,626 AT&T WIRELESS SERVICES HEADQUARTERS 5,810 5,732 5,718 1,448 1,380 0 0 CERRITOS CORPORATE CENTER-PHASE II 0 1,415 2,322 576 552 0 0 PRESIDENTIAL MARKETCENTER 2,755 3,451 3,731 950 972 474 0 MIRA MESA MARKETCENTER 2,678 5,636 5,956 1,500 945 (121) (26) PERIMETER EXPO 3,400 3,226 3,178 874 908 624 (2) SALEM ROAD STATION 124 556 505 0 0 0 0 THE SHOPS OF LAKE TUSCALOOSA 0 0 0 0 0 0 18 OTHER 86 100 94 26 23 29 20 ------------------------------------------------------------ TOTAL DISCONTINUED OPERATIONS RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 27,974 37,708 52,859 31,099 9,625 7,036 4,881 ------------------------------------------------------------ RESIDENTIAL LOT/TRACT FFO: (H) TRACT SALES NET OF COST OF SALES - WHOLLY OWNED (1) 564 2,011 2,338 0 0 2,067 5,323 (G)(H) TRACT SALES NET OF COST OF SALES - JOINT VENTURES (1) 773 1,098 671 0 430 42 0 ------------------------------------------------------------ TOTAL TRACT SALES NET OF COS 1,337 3,109 3,009 0 430 2,109 5,323 ------------------------------------------------------------ (H) LOT SALES NET OF COST OF SALES - WHOLLY OWNED (1) 2,267 772 1,622 697 244 867 995 (G)(H) LOT SALES NET OF COST OF SALES - JOINT VENTURES (1) 0 645 1,281 544 822 822 1,240 ------------------------------------------------------------ TOTAL LOT SALES NET OF COS 2,267 1,417 2,903 1,241 1,066 1,689 2,235 ------------------------------------------------------------ (G)(H) INTEREST - JOINT VENTURE (1) 0 0 0 0 0 0 0 (G)(H) OTHER - JOINT VENTURE (1) (95) (23) (3) (31) (27) (46) (52) ------------------------------------------------------------ TOTAL RESIDENTIAL LOT/TRACT FFO 3,509 4,503 5,909 1,210 1,469 3,752 7,506 ------------------------------------------------------------ DEVELOPMENT INCOME 4,251 6,179 4,625 764 908 558 640 ------------------------------------------------------------ MANAGEMENT FEES 4,841 7,966 9,313 2,105 2,187 2,227 2,000 ------------------------------------------------------------- LEASING & OTHER FEES 1,608 5,344 4,297 1,111 1,234 772 3,874 ------------------------------------------------------------- INTEREST INCOME & OTHER: GNMAs 5 5 13 1 (1) 2 2 OTHER INTEREST AND OTHER MISCELLANEOUS 773 526 254 23 496 272 (36) 650 MASS AVE NOTES 3,472 4,126 4,126 1,031 1,031 1,119 0 CHARLOTTE GATEWAY VILLAGE, LLC NOTE 1,745 1,404 0 0 0 0 0 ------------------------------------------------------------ TOTAL INTEREST INCOME 5,995 6,061 4,393 1,055 1,526 1,393 (34) ------------------------------------------------------------ GENERAL & ADMINISTRATIVE EXPENSES (18,452) (27,010) (27,670) (7,214) (7,644) (7,331) (7,417) ------------------------------------------------------------ STOCK APPRECIATION RIGHT EXPENSE (468) 276 (29) 0 0 0 0 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 ------------------------------------------------------ (F) DISCONTINUED OPERATIONS RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (1): NORTHSIDE/ALPHARETTA I 1,606 386 411 463 79 1,339 NORTHSIDE/ALPHARETTA II 2,160 579 592 605 216 1,992 101 SECOND STREET 10,632 2,320 2,322 2,150 (22) 6,770 55 SECOND STREET 27,073 1,652 1,950 1,495 (30) 5,067 AT&T WIRELESS SERVICES HEADQUARTERS 2,828 0 0 0 0 0 CERRITOS CORPORATE CENTER-PHASE II 1,128 0 0 0 0 0 PRESIDENTIAL MARKETCENTER 2,396 0 0 0 0 0 MIRA MESA MARKETCENTER 2,298 0 0 0 0 0 PERIMETER EXPO 2,404 0 0 0 0 0 SALEM ROAD STATION 0 0 0 0 0 0 THE SHOPS OF LAKE TUSCALOOSA 18 132 145 151 142 570 OTHER 98 22 0 0 0 22 TOTAL DISCONTINUED OPERATIONS RENTAL PROPERTY ------------------------------------------------------- REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 52,641 5,091 5,420 4,864 385 15,760 ------------------------------------------------------- RESIDENTIAL LOT/TRACT FFO: (H) TRACT SALES NET OF COST OF SALES - WHOLLY OWNED (1) 7,390 1,967 1,267 8,836 17,557 29,627 (G)(H) TRACT SALES NET OF COST OF SALES - JOINT VENTURES (1) 472 991 80 937 227 2,235 ------------------------------------------------------- TOTAL TRACT SALES NET OF COS 7,862 2,958 1,347 9,773 17,784 31,862 ------------------------------------------------------- (H) LOT SALES NET OF COST OF SALES - WHOLLY OWNED (1) 2,803 1,398 1,188 1,122 985 4,693 (G)(H) LOT SALES NET OF COST OF SALES - JOINT VENTURES (1) 3,428 1,724 1,389 1,011 2,826 6,950 ------------------------------------------------------- TOTAL LOT SALES NET OF COS 6,231 3,122 2,577 2,133 3,811 11,643 ------------------------------------------------------- (G)(H) INTEREST - JOINT VENTURE (1) 0 (20) (37) (39) (39) (135) (G)(H) OTHER - JOINT VENTURE (1) (156) (38) (7) (43) (132) (220) ------------------------------------------------------- TOTAL RESIDENTIAL LOT/TRACT FFO 13,937 6,022 3,880 11,824 21,424 43,150 ------------------------------------------------------- DEVELOPMENT INCOME 2,870 512 1,045 624 1,129 3,310 ------------------------------------------------------- MANAGEMENT FEES 8,519 2,074 2,140 2,242 2,248 8,704 ------------------------------------------------------- LEASING & OTHER FEES 6,991 643 782 1,518 1,520 4,463 ------------------------------------------------------- INTEREST INCOME & OTHER: GNMAs 4 0 0 1 2 3 OTHER INTEREST AND OTHER MISCELLANEOUS 755 448 107 1,093 877 2,525 650 MASS AVE NOTES 3,181 0 0 0 0 0 CHARLOTTE GATEWAY VILLAGE, LLC NOTE 0 0 0 0 0 0 ------------------------------------------------------- TOTAL INTEREST INCOME 3,940 448 107 1,094 879 2,528 ------------------------------------------------------- GENERAL & ADMINISTRATIVE EXPENSES (29,606) (7,983) (8,605) (8,431) (8,683) (33,702) ------------------------------------------------------- STOCK APPRECIATION RIGHT EXPENSE 0 0 0 0 0 0 -------------------------------------------------------
See Footnote on page 14 Page 3 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
2000 2001 2002 2003 1st 2003 2nd 2003 3rd --------------------------------------------------------------- INTEREST EXPENSE CONSOLIDATED: CREDIT FACILITY - FLOATING @ LIBOR + 1.05% to 1.70% (8,615) (9,910) (4,738) (1,408) (1,086) (423) CREDIT FACILITY - FLOATING @ LIBOR + .90% to 1.50% 0 0 0 0 0 0 NOTE PAYABLE, UNSECURED - 8.04% 0 0 0 0 0 (141) PERIMETER EXPO DEBT - 8.04% (1,683) (1,662) (1,637) (406) (404) (277) 650 MASS AVE DEBT - 6.53% (995) 0 0 0 0 0 BANK OF AMERICA PLAZA FINANCING - 6.677% (4,854) (4,583) (868) 0 0 0 BANK OF AMERICA PLAZA FINANCING - 6.9575% 0 0 (8,974) (2,792) (2,633) (2,652) 101 INDEPENDENCE CENTER DEBT - 8.22% (3,893) (3,827) (3,755) (926) (921) (916) LAKESHORE PARK PLAZA DEBT - 6.78% (724) (710) (696) (172) (171) (170) MERIDIAN MARK PLAZA DEBT - 8.27% (710) (2,118) (2,097) (521) (519) (518) 1900 DUKE STREET & 333 JOHN CARLYLE DEBT - 7% 0 (579) (3,456) (858) (856) (854) 100 NORTH POINT CENTER EAST DEBT - 7.86% 0 0 0 0 0 0 200 NORTH POINT CENTER EAST DEBT - 7.86% 0 0 0 0 0 0 333 & 555 NORTH POINT CENTER DEBT - 7% 0 (384) (2,282) (565) (563) (560) THE AVENUE EAST COBB DEBT - 8.39% (1,464) (3,277) (3,250) (808) (806) (804) 600 UNIVERSITY PARK DEBT - 7.38% 0 (492) (1,042) (259) (258) (257) CEDAR GROVE LAKES DEBT - 8% 0 0 (148) (29) (29) 58 CALLAWAY GARDENS DEBT - 6% 0 0 (13) (26) 40 0 OTHER (27) (22) (19) (14) (15) (13) CAPITALIZED 15,285 9,712 5,934 1,567 1,858 2,944 --------------------------------------------------------------- TOTAL INTEREST EXPENSE CONSOLIDATED (7,680) (17,852) (27,041) (7,217) (6,363) (4,583) --------------------------------------------------------------- LOSS ON EXTINGUISHMENT OF DEBT 0 0 (3,501) 0 0 0 --------------------------------------------------------------- OTHER EXPENSES - CONTINUING OPERATIONS: PROPERTY TAXES (40) (619) (675) (185) (218) (149) MINORITY INTEREST EXPENSE (2,931) (1,553) (1,589) (482) (328) (397) PREDEVELOPMENT & OTHER (646) (708) (1,558) (420) (518) (181) --------------------------------------------------------------- TOTAL OTHER EXPENSES (3,617) (2,880) (3,822) (1,087) (1,064) (727) --------------------------------------------------------------- (F) OTHER EXPENSES - DISCONTINUED OPERATIONS: INTEREST EXPENSE (5,916) (9,758) (10,382) (2,572) (2,571) (2,293) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 MINORITY INTEREST EXPENSE (509) (2,063) (1,710) (229) (143) 0 --------------------------------------------------------------- TOTAL OTHER EXPENSES - DISCONTINUED OPERATIONS (6,425) (11,821) (12,092) (2,801) (2,714) (2,293) --------------------------------------------------------------- INCOME TAX (PROVISION)/BENEFIT: CONTINUING OPERATIONS 1,145 691 (1,526) (249) (537) (231) (F) DISCONTINUED OPERATIONS (1) (31) (136) (139) 0 0 0 --------------------------------------------------------------- TOTAL INCOME TAX (PROVISION)/BENEFIT 1,114 555 (1,665) (249) (537) (231) --------------------------------------------------------------- DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (1): (I) CONSOLIDATED (1,099) (2,166) (2,148) (571) (602) (668) --------------------------------------------------------------- TOTAL NON-REAL ESTATE DEPRECIATION & AMORTIZATION (1,099) (2,166) (2,148) (571) (602) (668) --------------------------------------------------------------- (I) MINORITY INTEREST SHARE OF REAL ESTATE DEPRECIATION (1) (1,164) (95) 0 0 0 0 2003 4th 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 -------------------------------------------------------------------- INTEREST EXPENSE CONSOLIDATED: CREDIT FACILITY - FLOATING @ LIBOR + 1.05% to 1.70% (403) (3,320) (472) (753) (106) 0 (1,331) CREDIT FACILITY - FLOATING @ LIBOR + .90% to 1.50% 0 0 0 0 (356) (408) (764) NOTE PAYABLE, UNSECURED - 8.04% (457) (598) (489) (466) (466) (461) (1,882) PERIMETER EXPO DEBT - 8.04% 0 (1,087) 0 0 0 0 0 650 MASS AVE DEBT - 6.53% 0 0 0 0 0 0 0 BANK OF AMERICA PLAZA FINANCING - 6.677% 0 0 0 0 0 0 0 BANK OF AMERICA PLAZA FINANCING - 6.9575% (2,641) (10,718) (2,605) (2,592) (2,610) (2,599) (10,406) 101 INDEPENDENCE CENTER DEBT - 8.22% (910) (3,673) (905) (899) (269) 0 (2,073) LAKESHORE PARK PLAZA DEBT - 6.78% (169) (682) (168) (167) (166) (165) (666) MERIDIAN MARK PLAZA DEBT - 8.27% (516) (2,074) (515) (513) (511) (509) (2,048) 1900 DUKE STREET & 333 JOHN CARLYLE DEBT - 7% (851) (3,419) (849) (440) 0 0 (1,289) 100 NORTH POINT CENTER EAST DEBT - 7.86% (79) (79) (232) (232) (233) (235) (932) 200 NORTH POINT CENTER EAST DEBT - 7.86% (70) (70) (205) (205) (209) (207) (826) 333 & 555 NORTH POINT CENTER DEBT - 7% (558) (2,246) (556) (553) (550) (548) (2,207) THE AVENUE EAST COBB DEBT - 8.39% (802) (3,220) (800) (798) (796) (794) (3,188) 600 UNIVERSITY PARK DEBT - 7.38% (258) (1,032) (256) (255) (255) (254) (1,020) CEDAR GROVE LAKES DEBT - 8% 0 0 0 0 0 0 0 CALLAWAY GARDENS DEBT - 6% 0 14 0 0 0 0 0 OTHER (13) (55) (7) (4) (4) (4) (19) CAPITALIZED 3,314 9,683 3,340 3,433 3,778 3,477 14,028 ----------------------------------------------------------------- TOTAL INTEREST EXPENSE CONSOLIDATED (4,413) (22,576) (4,719) (4,444) (2,753) (2,707) (14,623) ----------------------------------------------------------------- LOSS ON EXTINGUISHMENT OF DEBT 0 0 0 0 0 0 0 ----------------------------------------------------------------- OTHER EXPENSES - CONTINUING OPERATIONS: PROPERTY TAXES (216) (768) (166) (222) (124) (152) (664) MINORITY INTEREST EXPENSE (406) (1,613) (398) (397) (401) (221) (1,417) PREDEVELOPMENT & OTHER (558) (1,677) (226) (305) (453) (300) (1,284) ----------------------------------------------------------------- TOTAL OTHER EXPENSES (1,180) (4,058) (790) (924) (978) (673) (3,365) ----------------------------------------------------------------- (F) OTHER EXPENSES - DISCONTINUED OPERATIONS: INTEREST EXPENSE (2,023) (9,459) (2,017) (2,011) (1,780) (62) (5,870) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 (605) (605) MINORITY INTEREST EXPENSE (252) (624) 0 0 0 0 0 ----------------------------------------------------------------- TOTAL OTHER EXPENSES - DISCONTINUED OPERATIONS (2,275) (10,083) (2,017) (2,011) (1,780) (667) (6,475) ----------------------------------------------------------------- INCOME TAX (PROVISION)/BENEFIT: CONTINUING OPERATIONS (1,579) (2,596) (836) (17) (713) (1,178) (2,744) (F) DISCONTINUED OPERATIONS (1) 0 0 0 0 0 0 0 ------------------------------------------------------------------ TOTAL INCOME TAX (PROVISION)/BENEFIT (1,579) (2,596) (836) (17) (713) (1,178) (2,744) ------------------------------------------------------------------ DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (1): (I) CONSOLIDATED (670) (2,511) (635) (700) (659) (658) (2,652) ----------------------------------------------------------------- TOTAL NON-REAL ESTATE DEPRECIATION & AMORTIZATION (670) (2,511) (635) (700) (659) (658) (2,652) ----------------------------------------------------------------- (I) MINORITY INTEREST SHARE OF REAL ESTATE DEPRECIATION (1) 0 0 0 0 0 0 0
See Footnotes on Page 14 Page 4 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
2000 2001 2002 2003 1ST 2003 2ND 2003 3RD -------------------------------------------------------- (G) JOINT VENTURE FFO (EXCLUDING TEMCO & CL REALTY) (1): WILDWOOD ASSOCIATES 8,634 9,724 10,870 2,517 2,192 2,205 WILDWOOD ASSOCIATES - IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 (551) 0 0 CP VENTURE TWO LLC 2,463 2,435 2,274 526 513 532 CP VENTURE TWO LLC - IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 0 0 0 COUSINS LORET VENTURE, L.L.C. 3,425 3,798 3,653 771 812 818 CC-JM II ASSOCIATES (BOOZ-ALLEN BUILDING) 956 1,038 1,120 303 300 309 BRAD COUS GOLF VENTURE, LTD. (WORLD GOLF VILLAGE) 228 279 350 66 120 90 TEN PEACHTREE PLACE ASSOCIATES 361 277 (488) 30 516 466 CSC ASSOCIATES, L.P. (BANK OF AMERICA PLAZA) 14,544 14,614 15,368 3,978 3,989 3,917 285 VENTURE, LLC (1155 PERIMETER CENTER WEST) 1,202 3,878 3,998 1,006 1,007 1,007 CPI/FSP I, L.P. (AUSTIN RESEARCH PARK) 0 756 3,180 840 856 856 CHARLOTTE GATEWAY VILLAGE, LLC (GATEWAY VILLAGE) 762 620 1,208 302 302 302 CRAWFORD LONG - CPI, LLC 0 0 1,728 628 511 262 OTHER 1,741 158 0 0 0 0 ------------------------------------------------------ TOTAL SHARE OF JOINT VENTURE FFO 34,316 37,577 43,261 10,416 11,118 10,764 ------------------------------------------------------ PREFERRED STOCK DIVIDENDS 0 0 0 0 0 (1,421) ------------------------------------------------------ FFO AVAILABLE TO COMMON STOCKHOLDERS 97,299 108,122 113,366 46,528 27,028 25,450 ------------------------------------------------------ GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET: CONTINUING OPERATIONS 11,937 23,496 6,254 1,003 90,956 2,178 (H) LESS GAIN ON SALE OF UNDEPRECIATED INVESTMENT PROPERTIES (564) (2,011) (2,143) 0 0 (1,947) DISCONTINUED OPERATIONS 0 0 1,174 0 43,012 50,386 SHARE OF UNCONSOLIDATED JOINT VENTURES 0 0 0 0 0 0 ------------------------------------------------------ TOTAL GAIN ON SALE OF INVESTMENT PROPERTIES, NET 11,373 21,485 5,285 1,003 133,968 50,617 ------------------------------------------------------ DEPRECIATION & AMORTIZATION OF REAL ESTATE (1): (I) CONSOLIDATED (23,083) (30,624) (34,154) (9,779) (10,078) (8,330) (I) MINORITY INTEREST SHARE 1,164 95 0 0 0 0 (F,I)DISCONTINUED OPERATIONS (8,603) (11,862) (18,085) (5,726) (2,738) (3,897) (G,I)SHARE OF UNCONSOLIDATED JOINT VENTURES (15,542) (16,400) (18,540) (4,432) (4,680) (4,650) -------------------------------------------------------- TOTAL REAL ESTATE DEPRECIATION & AMORTIZATION (46,064) (58,791) (70,779) (19,937) (17,496) (16,877) -------------------------------------------------------- CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (566) 0 0 0 0 0 ------------------------------------------------------- NET INCOME AVAILABLE TO COMMON STOCKHOLDERS 62,043 70,815 47,872 27,594 143,500 59,190 ------------------------------------------------------- 2003 4th 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 ------------------------------------------------------------ (G) JOINT VENTURE FFO (EXCLUDING TEMCO & CL REALTY) (1): WILDWOOD ASSOCIATES 3,137 10,051 2,105 2,374 2,216 (1,798) 4,897 WILDWOOD ASSOCIATES - IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 (551) 0 0 0 0 0 CP VENTURE TWO LLC 509 2,080 520 530 536 484 2,070 CP VENTURE TWO LLC - IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY (985) (985) 0 0 0 (209) (209) COUSINS LORET VENTURE, L.L.C. 841 3,242 869 904 299 (8) 2,064 CC-JM II ASSOCIATES (BOOZ-ALLEN BUILDING) 291 1,203 333 290 335 (1,259) (301) BRAD COUS GOLF VENTURE, LTD. (WORLD GOLF VILLAGE) 89 365 73 112 88 134 407 TEN PEACHTREE PLACE ASSOCIATES 527 1,539 482 349 353 349 1,533 CSC ASSOCIATES, L.P. (BANK OF AMERICA PLAZA) 3,905 15,789 3,904 3,891 3,796 3,690 15,281 285 VENTURE, LLC (1155 PERIMETER CENTER WEST) 82 3,102 445 2,587 231 229 3,492 CPI/FSP I, L.P. (AUSTIN RESEARCH PARK) 860 3,412 856 904 706 (1) 2,465 CHARLOTTE GATEWAY VILLAGE, LLC (GATEWAY VILLAGE) 302 1,208 302 302 302 302 1,208 CRAWFORD LONG - CPI, LLC 284 1,685 311 357 349 430 1,447 OTHER 0 0 924 0 0 0 924 ----------------------------------------------------------- TOTAL SHARE OF JOINT VENTURE FFO 9,842 42,140 11,124 12,600 9,211 2,343 35,278 ----------------------------------------------------------- PREFERRED STOCK DIVIDENDS (1,937) (3,358) (1,938) (1,937) (1,937) (2,230) (8,042) ----------------------------------------------------------- FFO AVAILABLE TO COMMON STOCKHOLDERS 25,959 124,965 26,995 25,266 29,336 27,281 108,878 ----------------------------------------------------------- GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET: CONTINUING OPERATIONS 6,421 100,558 2,066 36,500 50,082 29,408 118,056 (H) LESS GAIN ON SALE OF UNDEPRECIATED INVESTMENT PROPERTIES (5,323) (7,270) (1,967) (1,267) (8,836) (17,557)(29,627) DISCONTINUED OPERATIONS 61 93,459 648 0 67,291 13,988 81,927 SHARE OF UNCONSOLIDATED JOINT VENTURES 0 0 0 0 99,300 76,965 176,265 ----------------------------------------------------------- TOTAL GAIN ON SALE OF INVESTMENT PROPERTIES, NET 1,159 186,747 747 35,233 207,837 102,804 346,621 ----------------------------------------------------------- DEPRECIATION & AMORTIZATION OF REAL ESTATE (1): (I) CONSOLIDATED (8,779) (36,966) (9,857) (8,084) (7,676) (8,962)(34,579) (I) MINORITY INTEREST SHARE 0 0 0 0 0 0 0 (F,I)DISCONTINUED OPERATIONS (2,317) (14,678) (2,318) (1,879) (1,057) (44) (5,298) (G,I)SHARE OF UNCONSOLIDATED JOINT VENTURES (7,503) (21,265) (4,725) (4,829) (3,701) (2,625)(15,880) ------------------------------------------------------------- TOTAL REAL ESTATE DEPRECIATION & AMORTIZATION (18,599) (72,909) (16,900) (14,792) (12,434) (11,631)(55,757) ------------------------------------------------------------- CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 0 0 0 0 0 0 ------------------------------------------------------------ NET INCOME AVAILABLE TO COMMON STOCKHOLDERS 8,519 238,803 10,842 45,707 224,739 118,454 399,742 ------------------------------------------------------------
See Footnotes on Page 14 Page 5 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH --------------------------------------------------------------------- WILDWOOD ASSOCIATES (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): 2300 WINDY RIDGE PARKWAY 10,408 10,803 11,182 1,868 2,270 2,166 2,158 2500 WINDY RIDGE PARKWAY 4,760 5,037 4,992 1,184 1,190 1,157 1,142 3200 WINDY HILL ROAD (WILDWOOD PLAZA) 9,708 11,462 12,217 2,914 2,888 2,901 4,478 4100/4300 WILDWOOD PARKWAY (GA PACIFIC) 3,441 3,458 3,803 960 965 965 961 4200 WILDWOOD PARKWAY (GE) 4,819 4,711 4,853 1,195 1,106 1,193 1,196 BANK/RESTAURANT GROUND LEASES 1,063 1,161 1,081 320 325 324 318 ------------------------------------------------------------------- 34,199 36,632 38,128 8,441 8,744 8,706 10,253 ------------------------------------------------------------------- INTEREST EXPENSE: 2300 DEBT - 7.56% (4,947) (4,754) (4,546) (1,106) (1,095) (1,084) (1,074) 2500 DEBT - 7.45% (1,769) (1,708) (1,642) (400) (395) (390) (386) 3200 DEBT - 8.23% (5,600) (5,524) (5,389) (1,322) (1,310) (1,299) (1,287) 4100/4300 DEBT - 7.65% (2,191) (2,150) (2,097) (508) (508) (509) (505) 4200 DEBT - 6.78% (2,934) (2,877) (2,812) (681) (683) (693) (680) LINE OF CREDIT - FLOATING @ LIBOR + .75% (1) 0 0 0 0 0 0 INTEREST CAPITALIZED 0 0 0 0 0 0 0 ------------------------------------------------------------------- (17,442) (17,014) (16,486) (4,017) (3,991) (3,975) (3,932) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 0 OTHER, NET 516 (169) 96 900 (75) (89) (258) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (6) 0 0 (11) (12) (12) (10) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 (1,101) 0 0 0 ------------------------------------------------------------------- FUNDS FROM OPERATIONS 17,267 19,449 21,738 4,212 4,666 4,630 6,053 DEPRECIATION & AMORTIZATION OF REAL ESTATE (9,575) (9,003) (9,022) (2,117) (2,195) (2,103) (2,949) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 ------------------------------------------------------------------- NET INCOME 7,692 10,446 12,716 2,095 2,471 2,527 3,104 =================================================================== COUSINS' SHARE OF WILDWOOD ASSOCIATES (2): 50% 50% 50% 50% 50% 50% 50% =================================================================== REVENUES LESS OPERATING EXPENSES 17,100 18,316 19,065 4,082 4,233 4,244 5,237 INTEREST EXPENSE (8,721) (8,507) (8,243) (2,009) (1,997) (1,988) (1,966) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 0 OTHER, NET 258 (85) 48 450 (38) (45) (129) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (3) 0 0 (6) (6) (6) (5) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 (551) 0 0 0 ------------------------------------------------------------------- FUNDS FROM OPERATIONS 8,634 9,724 10,870 1,966 2,192 2,205 3,137 DEPRECIATION & AMORTIZATION OF REAL ESTATE (4,788) (4,502) (4,512) (1,059) (1,097) (1,052) (1,474) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 ------------------------------------------------------------------- NET INCOME 3,846 5,222 6,358 907 1,095 1,153 1,663 =================================================================== JOINT VENTURES 2003 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 --------------------------------------------------------- WILDWOOD ASSOCIATES (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): 2300 WINDY RIDGE PARKWAY 8,462 2,197 2,254 2,268 411 7,130 2500 WINDY RIDGE PARKWAY 4,673 1,069 1,183 921 (9) 3,164 3200 WINDY HILL ROAD (WILDWOOD PLAZA) 13,181 2,571 2,847 2,939 504 8,861 4100/4300 WILDWOOD PARKWAY (GA PACIFIC) 3,851 960 962 843 (1) 2,764 4200 WILDWOOD PARKWAY (GE) 4,690 1,193 1,194 1,048 (1) 3,434 BANK/RESTAURANT GROUND LEASES 1,287 326 336 321 58 1,041 --------------------------------------------------------- 36,144 8,316 8,776 8,340 962 26,394 --------------------------------------------------------- INTEREST EXPENSE: 2300 DEBT - 7.56% (4,359) (1,064) (1,054) (1,042) (222) (3,382) 2500 DEBT - 7.45% (1,571) (381) (376) (348) 0 (1,105) 3200 DEBT - 8.23% (5,218) (1,275) (1,263) (1,252) (266) (4,056) 4100/4300 DEBT - 7.65% (2,030) (493) (489) (431) 0 (1,413) 4200 DEBT - 6.78% (2,737) (665) (659) (574) 0 (1,898) LINE OF CREDIT - FLOATING @ LIBOR + .75% 0 0 0 0 0 0 INTEREST CAPITALIZED 0 0 0 0 0 0 --------------------------------------------------------- (15,915) (3,878) (3,841) (3,647) (488) (11,854) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 (3,843) (3,843) OTHER, NET 478 (102) (41) (110) (12) (265) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (45) (8) (10) (9) (3) (30) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY (1,101) 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 19,561 4,328 4,884 4,574 (3,384) 10,402 DEPRECIATION & AMORTIZATION OF REAL ESTATE (9,364) (2,151) (2,197) (2,037) (13) (6,398) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 84,008 116,827 200,835 --------------------------------------------------------- NET INCOME 10,197 2,177 2,687 86,545 113,430 204,839 ========================================================= COUSINS' SHARE OF WILDWOOD ASSOCIATES (2): 50% 50% 50% 50% 50% 50% ========================================================= REVENUES LESS OPERATING EXPENSES 17,796 4,099 4,321 4,100 375 12,895 INTEREST EXPENSE (7,960) (1,939) (1,921) (1,824) (244) (5,928) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 (1,922) (1,922) OTHER, NET 238 (51) (21) (55) (6) (133) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (23) (4) (5) (5) (1) (15) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY (551) 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 9,500 2,105 2,374 2,216 (1,798) 4,897 DEPRECIATION & AMORTIZATION OF REAL ESTATE (4,682) (1,076) (1,097) (1,012) (6) (3,191) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 41,577 57,783 99,360 --------------------------------------------------------- NET INCOME 4,818 1,029 1,277 42,781 55,979 101,066 =========================================================
See Footnotes on Page 14 Page 6 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH --------------------------------------------------------------------- CP VENTURE TWO LLC (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): OFFICE: FIRST UNION TOWER 4,990 4,855 4,021 783 674 767 720 GRANDVIEW II 2,178 2,192 2,288 582 579 595 603 100 NORTH POINT CENTER EAST 2,077 2,213 1,456 330 323 416 170 200 NORTH POINT CENTER EAST 2,217 1,703 1,047 219 146 78 41 ------------------------------------------------------------------- SUBTOTAL OFFICE 11,462 10,963 8,812 1,914 1,722 1,856 1,534 ------------------------------------------------------------------- MEDICAL OFFICE: PRESBYTERIAN MEDICAL PLAZA 881 902 912 234 233 233 238 ------------------------------------------------------------------- RETAIL: NORTH POINT MARKETCENTER 4,875 5,011 4,982 1,270 1,286 1,292 1,308 MANSELL CROSSING II 1,043 1,141 1,533 265 305 309 311 GREENBRIER MARKETCENTER 4,530 4,533 4,687 1,160 1,103 1,168 1,088 LOS ALTOS MARKETCENTER 2,822 2,797 2,974 743 744 729 760 ------------------------------------------------------------------- SUBTOTAL RETAIL 13,270 13,482 14,176 3,438 3,438 3,498 3,467 ------------------------------------------------------------------- TOTAL REVENUES LESS OPERATING EXPENSES 25,613 25,347 23,900 5,586 5,393 5,587 5,239 ------------------------------------------------------------------- OTHER, NET 58 1 (52) (55) 4 (1) (19) ------------------------------------------------------------------- INTEREST EXPENSE: NORTH POINT MARKETCENTER - 8.50% (2,370) (2,323) (2,264) (559) (556) (552) (549) 100 & 200 NORTH POINT CENTER EAST - 7.86% (1,884) (1,853) (1,815) (442) (444) (447) (295) ------------------------------------------------------------------- TOTAL INTEREST EXPENSE (4,254) (4,176) (4,079) (1,001) (1,000) (999) (844) ------------------------------------------------------------------- DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 0 0 0 (8,567) ------------------------------------------------------------------- FUNDS FROM OPERATIONS 21,417 21,172 19,769 4,530 4,397 4,587 (4,191) DEPRECIATION & AMORTIZATION OF REAL ESTATE (15,601) (12,383) (10,639) (2,496) (2,457) (2,444) (2,330) ------------------------------------------------------------------- NET INCOME 5,816 8,789 9,130 2,034 1,940 2,143 (6,521) =================================================================== COUSINS' SHARE OF CP VENTURE TWO (2): 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% =================================================================== REVENUES LESS OPERATING EXPENSES 2,945 2,915 2,749 647 628 647 608 INTEREST EXPENSE (489) (480) (470) (115) (115) (115) (97) OTHER, NET 7 0 (5) (6) 0 0 (2) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY 0 0 0 0 0 0 (985) ------------------------------------------------------------------- FUNDS FROM OPERATIONS 2,463 2,435 2,274 526 513 532 (476) DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,794) (1,424) (1,223) (287) (283) (281) (268) ------------------------------------------------------------------- NET INCOME 669 1,011 1,051 239 230 251 (744) =================================================================== JOINT VENTURES 2003 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 --------------------------------------------------------- CP VENTURE TWO LLC (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): OFFICE: FIRST UNION TOWER 2,944 733 664 691 571 2,659 GRANDVIEW II 2,359 606 609 613 572 2,400 100 NORTH POINT CENTER EAST 1,239 6 1 0 0 7 200 NORTH POINT CENTER EAST 484 10 3 0 0 13 --------------------------------------------------------- SUBTOTAL OFFICE 7,026 1,355 1,277 1,304 1,143 5,079 --------------------------------------------------------- MEDICAL OFFICE: PRESBYTERIAN MEDICAL PLAZA 938 240 235 234 257 966 --------------------------------------------------------- RETAIL: NORTH POINT MARKETCENTER 5,156 1,249 1,359 1,345 1,189 5,142 MANSELL CROSSING II 1,190 310 319 313 285 1,227 GREENBRIER MARKETCENTER 4,519 1,143 1,119 1,194 1,057 4,513 LOS ALTOS MARKETCENTER 2,976 753 849 807 692 3,101 --------------------------------------------------------- SUBTOTAL RETAIL 13,841 3,455 3,646 3,659 3,223 13,983 --------------------------------------------------------- TOTAL REVENUES LESS OPERATING EXPENSES 21,805 5,050 5,158 5,197 4,623 20,028 --------------------------------------------------------- OTHER, NET (71) (19) (52) 0 0 (71) --------------------------------------------------------- INTEREST EXPENSE: NORTH POINT MARKETCENTER - 8.50% (2,216) (546) (541) (538) (534) (2,159) 100 & 200 NORTH POINT CENTER EAST - 7.86% (1,628) 0 0 --------------------------------------------------------- TOTAL INTEREST EXPENSE (3,844) (546) (541) (538) (534) (2,159) --------------------------------------------------------- DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY (8,567) 0 0 0 (1,535) (1,535) --------------------------------------------------------- FUNDS FROM OPERATIONS 9,323 4,485 4,565 4,659 2,554 16,263 DEPRECIATION & AMORTIZATION OF REAL ESTATE (9,727) (1,926) (1,923) (1,920) (1,648) (7,417) --------------------------------------------------------- NET INCOME (404) 2,559 2,642 2,739 906 8,846 ========================================================= COUSINS' SHARE OF CP VENTURE TWO (2): 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% ========================================================= REVENUES LESS OPERATING EXPENSES 2,530 583 592 597 546 2,318 INTEREST EXPENSE (442) (63) (62) (61) (62) (248) OTHER, NET (8) 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY (985) 0 0 0 (209) (209) --------------------------------------------------------- FUNDS FROM OPERATIONS 1,095 520 530 536 275 1,861 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,119) (222) (220) (221) (189) (852) --------------------------------------------------------- NET INCOME (24) 298 310 315 86 1,009 =========================================================
See Footnotes on Page 14 Page 7 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1st 2003 2nd 2003 3rd 2003 4th -------------- --------------------------------------------------------------- COUSINS LORET VENTURE, L.L.C. (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): TWO LIVE OAK 5,093 5,093 4,446 958 895 946 972 THE PINNACLE 8,830 9,652 9,986 2,352 2,492 2,448 2,459 --------------------------------------------------------------- TOTAL REVENUES LESS OPERATING EXPENSES 13,923 14,745 14,432 3,310 3,387 3,394 3,431 INTEREST EXPENSE (7,268) (7,192) (7,109) (1,764) (1,758) (1,753) (1,747) CAPITALIZED INTEREST 0 0 0 0 0 0 0 OTHER, NET 194 46 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 (4) (17) (4) (4) (4) (4) --------------------------------------------------------------- FUNDS FROM OPERATIONS 6,849 7,595 7,306 1,542 1,625 1,637 1,680 DEPRECIATION & AMORTIZATION OF REAL ESTATE (7,617) (7,703) (8,680) (1,780) (1,790) (1,835) (1,385) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME (768) (108) (1,374) (238) (165) (198) 295 =============================================================== COUSINS SHARE OF COUSINS LORET (2): 50% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 6,962 7,373 7,217 1,655 1,693 1,697 1,716 INTEREST EXPENSE (3,634) (3,596) (3,555) (882) (879) (877) (873) OTHER, NET 97 23 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 (2) (9) (2) (2) (2) (2) --------------------------------------------------------------- FUNDS FROM OPERATIONS 3,425 3,798 3,653 771 812 818 841 DEPRECIATION & AMORTIZATION OF REAL ESTATE (3,809) (3,852) (4,383) (890) (895) (918) (692) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME (384) (54) (730) (119) (83) (100) 149 =============================================================== CC-JM II ASSOCIATES (BOOZ-ALLEN BUILDING) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 3,554 3,571 3,661 948 938 952 909 INTEREST - 7.0% (1,561) (1,493) (1,420) (342) (338) (333) (328) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (2) (1) 0 0 0 (1) (1) --------------------------------------------------------------- FUNDS FROM OPERATIONS 1,991 2,077 2,241 606 600 618 580 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,126) (1,125) (1,126) (282) (281) (281) (281) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 865 952 1,115 324 319 337 299 =============================================================== COUSINS SHARE OF CC-JM II (2): 50% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 1,738 1,786 1,831 474 469 476 455 INTEREST EXPENSE (781) (747) (711) (171) (169) (167) (164) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (1) (1) 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 956 1,038 1,120 303 300 309 291 DEPRECIATION & AMORTIZATION OF REAL ESTATE (575) (575) (575) (144) (144) (144) (144) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 381 463 545 159 156 165 147 =============================================================== JOINT VENTURES 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 -------------- ---------------------------------------------------------- COUSINS LORET VENTURE, L.L.C. (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES): TWO LIVE OAK 3,771 1,029 1,075 357 (7) 2,454 THE PINNACLE 9,751 2,455 2,469 841 (9) 5,756 ---------------------------------------------------------- TOTAL REVENUES LESS OPERATING EXPENSES 13,522 3,484 3,544 1,198 (16) 8,210 INTEREST EXPENSE (7,022) (1,741) (1,735) (596) 0 (4,072) CAPITALIZED INTEREST 0 0 0 0 0 0 OTHER, NET 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (16) (4) (4) (1) 0 (9) ---------------------------------------------------------- FUNDS FROM OPERATIONS 6,484 1,739 1,805 601 (16) 4,129 DEPRECIATION & AMORTIZATION OF REAL ESTATE (6,790) (1,867) (1,872) (44) 0 (3,783) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 89,919 3 89,922 ---------------------------------------------------------- NET INCOME (306) (128) (67) 90,476 (13) 90,268 ========================================================== COUSINS SHARE OF COUSINS LORET (2): 50% 50% 50% 50% 50% 50% ========================================================== REVENUES LESS OPERATING EXPENSES 6,761 1,742 1,774 598 (8) 4,106 INTEREST EXPENSE (3,511) (871) (868) (298) 0 (2,037) OTHER, NET 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (8) (2) (2) (1) 0 (5) ---------------------------------------------------------- FUNDS FROM OPERATIONS 3,242 869 904 299 (8) 2,064 DEPRECIATION & AMORTIZATION OF REAL ESTATE (3,395) (933) (936) (20) 0 (1,889) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 45,364 (24) 45,340 ---------------------------------------------------------- NET INCOME (153) (64) (32) 45,643 (32) 45,515 ========================================================== CC-JM II ASSOCIATES (BOOZ-ALLEN BUILDING) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 3,747 988 972 980 215 3,155 INTEREST - 7.0% (1,341) (323) (316) (310) (76) (1,025) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 (2,657) (2,657) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (2) 0 0 (1) 0 (1) ---------------------------------------------------------- FUNDS FROM OPERATIONS 2,404 665 656 669 (2,518) (528) DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,125) (281) (282) (281) 0 (844) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 38,917 38,917 ---------------------------------------------------------- NET INCOME 1,279 384 374 388 36,399 37,545 ========================================================== COUSINS SHARE OF CC-JM II (2): 50% 50% 50% 50% 50% 50% ========================================================== REVENUES LESS OPERATING EXPENSES 1,874 494 448 490 108 1,540 INTEREST EXPENSE (671) (161) (158) (155) (39) (513) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 (1,328) (1,328) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 ---------------------------------------------------------- FUNDS FROM OPERATIONS 1,203 333 290 335 (1,259) (301) DEPRECIATION & AMORTIZATION OF REAL ESTATE (576) (144) (144) (144) (3) (435) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 19,212 19,212 ---------------------------------------------------------- NET INCOME 627 189 146 191 17,950 18,476 ==========================================================
See Footnotes on Page 14 Page 8 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH -------------- --------------------------------------------------------------- BRAD COUS GOLF VENTURE, LTD. (WORLD GOLF VILLAGE) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 456 558 696 131 240 179 177 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 456 558 696 131 240 179 177 DEPRECIATION & AMORTIZATION OF REAL ESTATE (395) (691) (829) (34) (171) (171) (171) --------------------------------------------------------------- NET INCOME 61 (133) (133) 97 69 8 6 =============================================================== COUSINS SHARE OF BRAD COUS GOLF VENTURE (2): 50% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 228 279 350 66 120 90 89 INTEREST EXPENSE 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 228 279 350 66 120 90 89 DEPRECIATION & AMORTIZATION OF REAL ESTATE (198) (346) (415) (17) (85) (86) (86) --------------------------------------------------------------- NET INCOME 30 (67) (65) 49 35 4 3 =============================================================== TEN PEACHTREE PLACE ASSOCIATES (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 2,886 2,569 (518) 128 1,097 988 1,111 INTEREST - 5.39% (1,373) (1,234) (457) (69) (66) (55) (56) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (2) (11) 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 1,511 1,324 (975) 59 1,031 933 1,055 DEPRECIATION & AMORTIZATION OF REAL ESTATE (553) (588) (727) (292) (557) (546) (621) --------------------------------------------------------------- NET INCOME 958 736 (1,702) (233) 474 387 434 =============================================================== COUSINS SHARE OF TEN PEACHTREE PLACE ASSOCIATES (2): 24% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 1,048 885 (259) 64 549 494 555 INTEREST EXPENSE (686) (606) (229) (34) (33) (28) (28) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (1) (2) 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 361 277 (488) 30 516 466 527 DEPRECIATION & AMORTIZATION OF REAL ESTATE (76) (134) (365) (146) (278) (273) (310) --------------------------------------------------------------- NET INCOME 285 143 (853) (116) 238 193 217 =============================================================== JOINT VENTURES 2003 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 -------------- -------------------------------------------------------- BRAD COUS GOLF VENTURE, LTD. (WORLD GOLF VILLAGE) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 727 146 224 176 269 815 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 727 146 224 176 269 815 DEPRECIATION & AMORTIZATION OF REAL ESTATE (547) (171) (171) (170) (174) (686) -------------------------------------------------------- NET INCOME 180 (25) 53 6 95 129 ======================================================== COUSINS SHARE OF BRAD COUS GOLF VENTURE (2): 50% 50% 50% 50% 50% 50% ======================================================== REVENUES LESS OPERATING EXPENSES 365 73 112 88 134 407 INTEREST EXPENSE 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 365 73 112 88 134 407 DEPRECIATION & AMORTIZATION OF REAL ESTATE (274) (86) (86) (85) (86) (343) -------------------------------------------------------- NET INCOME 91 (13) 26 3 48 64 ======================================================== TEN PEACHTREE PLACE ASSOCIATES (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 3,324 1,078 1,114 1,119 1,111 4,422 INTEREST - 5.39% (246) (115) (414) (414) (413) (1,356) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 3,078 963 700 705 698 3,066 DEPRECIATION & AMORTIZATION OF REAL ESTATE (2,016) (571) (569) (569) (569) (2,278) -------------------------------------------------------- NET INCOME 1,062 392 131 136 129 788 ======================================================== COUSINS SHARE OF TEN PEACHTREE PLACE ASSOCIATES (2): 50% 50% 50% 50% 50% 50% ======================================================== REVENUES LESS OPERATING EXPENSES 1,662 539 556 560 556 2,211 INTEREST EXPENSE (123) (57) (207) (207) (207) (678) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 1,539 482 349 353 349 1,533 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,007) (286) (285) (280) (283) (1,134) -------------------------------------------------------- NET INCOME 532 196 64 73 66 399 ========================================================
See Footnotes on Page 14 Page 9 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH -------------- --------------------------------------------------------------- CSC ASSOCIATES, L.P. (BANK OF AMERICA PLAZA) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 29,088 29,227 30,735 7,956 7,977 7,834 7,810 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 29,088 29,227 30,735 7,956 7,977 7,834 7,810 DEPRECIATION & AMORTIZATION OF REAL ESTATE (7,710) (7,653) (7,654) (1,928) (1,916) (1,925) (1,847) --------------------------------------------------------------- NET INCOME 21,378 21,574 23,081 6,028 6,061 5,909 5,963 =============================================================== COUSINS SHARE OF CSC ASSOCIATES (2): 50% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 14,544 14,614 15,368 3,978 3,989 3,917 3,905 INTEREST EXPENSE 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 14,544 14,614 15,368 3,978 3,989 3,917 3,905 DEPRECIATION & AMORTIZATION OF REAL ESTATE (3,931) (3,903) (3,904) (983) (977) (982) (943) --------------------------------------------------------------- NET INCOME 10,613 10,711 11,464 2,995 3,012 2,935 2,962 =============================================================== 285 VENTURE, LLC (1155 PERIMETER CENTER WEST) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 2,403 7,756 7,994 2,012 2,013 2,014 163 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 2,403 7,756 7,994 2,012 2,013 2,014 163 DEPRECIATION & AMORTIZATION OF REAL ESTATE (720) (2,224) (2,211) (571) (553) (554) (5,880) --------------------------------------------------------------- NET INCOME 1,683 5,532 5,783 1,441 1,460 1,460 (5,717) =============================================================== COUSINS SHARE OF 285 VENTURE (2): 50% 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 1,202 3,878 3,998 1,006 1,007 1,007 82 INTEREST EXPENSE 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 1,202 3,878 3,998 1,006 1,007 1,007 82 DEPRECIATION & AMORTIZATION OF REAL ESTATE (371) (1,282) (1,274) (327) (319) (319) (2,982) --------------------------------------------------------------- NET INCOME 831 2,596 2,724 679 688 688 (2,900) =============================================================== JOINT VENTURES 2003 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 -------------- -------------------------------------------------------- CSC ASSOCIATES, L.P. (BANK OF AMERICA PLAZA) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 31,577 7,813 7,789 7,602 7,389 30,593 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 (6) (8) (10) (10) (34) -------------------------------------------------------- FUNDS FROM OPERATIONS 31,577 7,807 7,781 7,592 7,379 30,559 DEPRECIATION & AMORTIZATION OF REAL ESTATE (7,616) (1,900) (1,866) (1,837) (1,837) (7,440) -------------------------------------------------------- NET INCOME 23,961 5,907 5,915 5,755 5,542 23,119 ======================================================== COUSINS SHARE OF CSC ASSOCIATES (2): 50% 50% 50% 50% 50% 50% ======================================================== REVENUES LESS OPERATING EXPENSES 15,789 3,907 3,895 3,801 3,695 15,298 INTEREST EXPENSE 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 (3) (4) (5) (5) (17) -------------------------------------------------------- FUNDS FROM OPERATIONS 15,789 3,904 3,891 3,796 3,690 15,281 DEPRECIATION & AMORTIZATION OF REAL ESTATE (3,885) (969) (952) (937) (937) (3,795) -------------------------------------------------------- NET INCOME 11,904 2,935 2,939 2,859 2,753 11,486 ======================================================== 285 VENTURE, LLC (1155 PERIMETER CENTER WEST) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 6,202 891 5,176 (94) 458 6,431 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 6,202 891 5,176 (94) 458 6,431 DEPRECIATION & AMORTIZATION OF REAL ESTATE (7,558) (702) (837) (920) (1,362) (3,821) -------------------------------------------------------- NET INCOME (1,356) 189 4,339 (1,014) (904) 2,610 ======================================================== COUSINS SHARE OF 285 VENTURE (2): 50% 50% 50% 50% 50% 50% ======================================================== REVENUES LESS OPERATING EXPENSES 3,102 445 2,587 231 229 3,492 INTEREST EXPENSE 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 -------------------------------------------------------- FUNDS FROM OPERATIONS 3,102 445 2,587 231 229 3,492 DEPRECIATION & AMORTIZATION OF REAL ESTATE (3,947) (393) (460) (502) (722) (2,077) -------------------------------------------------------- NET INCOME (845) 52 2,127 (271) (493) 1,415 ========================================================
See Footnotes on Page 14 Page 10 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1st 2003 2nd 2003 3rd 2003 4th -------------- --------------------------------------------------------------- CPI/FSP I, L.P. (AUSTIN RESEARCH PARK) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 0 1,512 6,357 1,680 1,714 1,713 1,721 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 (1) (1) (1) --------------------------------------------------------------- FUNDS FROM OPERATIONS 0 1,512 6,357 1,680 1,713 1,712 1,720 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 (738) (1,949) (451) (487) (488) (488) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 0 774 4,408 1,229 1,226 1,224 1,232 =============================================================== COUSINS SHARE OF CPI/FSP I (2): 50% 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 0 756 3,180 840 857 857 861 INTEREST EXPENSE 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 (1) (1) (1) --------------------------------------------------------------- FUNDS FROM OPERATIONS 0 756 3,180 840 856 856 860 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 (382) (1,062) (255) (257) (266) (266) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 0 374 2,118 585 599 590 594 =============================================================== CHARLOTTE GATEWAY VILLAGE, LLC (GATEWAY VILLAGE) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 1,486 10,763 21,126 5,263 5,260 5,251 5,249 INTEREST (1,501) (6,280) (12,030) (2,928) (2,895) (2,862) (2,828) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS (15) 4,483 9,096 2,335 2,365 2,389 2,421 DEPRECIATION & AMORTIZATION OF REAL ESTATE (578) (4,715) (5,928) (1,505) (1,509) (1,511) (1,512) --------------------------------------------------------------- NET INCOME (593) (232) 3,168 830 856 878 909 =============================================================== COUSINS SHARE OF GATEWAY VILLAGE (2) (3): =============================================================== REVENUES LESS OPERATING EXPENSES 762 620 1,208 302 302 302 302 INTEREST EXPENSE 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 762 620 1,208 302 302 302 302 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 (25) (8) (8) (8) (8) --------------------------------------------------------------- NET INCOME 762 620 1,183 294 294 294 294 =============================================================== JOINT VENTURES 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 -------------- --------------------------------------------------------- CPI/FSP I, L.P. (AUSTIN RESEARCH PARK) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 6,828 1,714 1,755 1,413 (1) 4,881 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (3) (1) 5 0 0 4 --------------------------------------------------------- FUNDS FROM OPERATIONS 6,825 1,713 1,760 1,413 (1) 4,885 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,914) (493) (539) (248) 0 (1,280) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 27,183 (13) 27,170 --------------------------------------------------------- NET INCOME 4,911 1,220 1,221 28,348 (14) 30,775 ========================================================= COUSINS SHARE OF CPI/FSP I (2): 50% 50% 50% 50% 50% 50% ========================================================= REVENUES LESS OPERATING EXPENSES 3,415 857 901 706 (1) 2,463 INTEREST EXPENSE 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (3) (1) 3 0 0 2 --------------------------------------------------------- FUNDS FROM OPERATIONS 3,412 856 904 706 (1) 2,465 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,044) (268) (291) (132) 0 (691) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 12,359 (6) 12,353 --------------------------------------------------------- NET INCOME 2,368 588 613 12,933 (7) 14,127 ========================================================= CHARLOTTE GATEWAY VILLAGE, LLC (GATEWAY VILLAGE) (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 21,023 5,248 5,246 5,245 5,258 20,997 INTEREST (11,513) (2,793) (2,758) (2,723) (2,687) (10,961) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 9,510 2,455 2,488 2,522 2,571 10,036 DEPRECIATION & AMORTIZATION OF REAL ESTATE (6,037) (1,522) (1,530) (1,537) (1,541) (6,130) --------------------------------------------------------- NET INCOME 3,473 933 958 985 1,030 3,906 ========================================================= COUSINS SHARE OF GATEWAY VILLAGE (2) (3): ========================================================= REVENUES LESS OPERATING EXPENSES 1,208 302 302 302 302 1,208 INTEREST EXPENSE 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 1,208 302 302 302 302 1,208 DEPRECIATION & AMORTIZATION OF REAL ESTATE (32) (8) (8) (8) (8) (32) --------------------------------------------------------- NET INCOME 1,176 294 294 294 294 1,176 =========================================================
See Footnotes on Page 14 Page 11 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS)
JOINT VENTURES 2000 2001 2002 2003 1st 2003 2nd 2003 3rd 2003 4th -------------- --------------------------------------------------------------- CRAWFORD LONG - CPI, LLC (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 0 0 3,454 1,255 1,445 1,343 1,388 INTEREST - 5.9% 0 0 0 0 (424) (820) (818) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 0 0 3,454 1,255 1,021 523 570 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 (1,530) (606) (648) (620) (633) --------------------------------------------------------------- NET INCOME 0 0 1,924 649 373 (97) (63) =============================================================== COUSINS SHARE OF CRAWFORD LONG - CPI (2): 50% 50% 50% 50% 50% =============================================================== REVENUES LESS OPERATING EXPENSES 0 0 1,728 628 723 672 694 INTEREST EXPENSE 0 0 0 0 (212) (410) (410) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 0 0 1,728 628 511 262 284 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 (802) (316) (337) (323) (330) --------------------------------------------------------------- NET INCOME 0 0 926 312 174 (61) (46) =============================================================== OTHER: RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 142 0 0 0 0 0 0 OTHER, NET 3,543 453 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (301) (64) 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 3,384 389 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 3,384 389 0 0 0 0 0 =============================================================== COUSINS SHARE OF OTHER (2): =============================================================== REVENUES LESS OPERATING EXPENSES 71 0 0 0 0 0 0 INTEREST EXPENSE 0 0 0 0 0 0 0 OTHER, NET 1,896 206 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (226) (48) 0 0 0 0 0 --------------------------------------------------------------- FUNDS FROM OPERATIONS 1,741 158 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 0 --------------------------------------------------------------- NET INCOME 1,741 158 0 0 0 0 0 =============================================================== JOINT VENTURES 2003 2004 1st 2004 2nd 2004 3rd 2004 4th 2004 -------------- --------------------------------------------------------- CRAWFORD LONG - CPI, LLC (100%): RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 5,431 1,438 1,527 1,507 1,667 6,139 INTEREST - 5.9% (2,062) (815) (813) (810) (808) (3,246) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 3,369 623 714 697 859 2,893 DEPRECIATION & AMORTIZATION OF REAL ESTATE (2,507) (632) (638) (659) (669) (2,598) --------------------------------------------------------- NET INCOME 862 (9) 76 38 190 295 ========================================================= COUSINS SHARE OF CRAWFORD LONG - CPI (2): 50% 50% 50% 50% 50% 50% ========================================================= REVENUES LESS OPERATING EXPENSES 2,717 719 764 754 834 3,071 INTEREST EXPENSE (1,032) (408) (407) (405) (404) (1,624) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 1,685 311 357 349 430 1,447 DEPRECIATION & AMORTIZATION OF REAL ESTATE (1,306) (329) (332) (343) (348) (1,352) --------------------------------------------------------- NET INCOME 379 (18) 25 6 82 95 ========================================================= OTHER: RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 0 0 0 0 0 0 OTHER, NET 0 1,848 0 0 0 1,848 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 0 1,848 0 0 0 1,848 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 --------------------------------------------------------- NET INCOME 0 1,848 0 0 0 1,848 ========================================================= COUSINS SHARE OF OTHER (2): ========================================================= REVENUES LESS OPERATING EXPENSES 0 0 0 0 0 0 INTEREST EXPENSE 0 0 0 0 0 0 OTHER, NET 0 924 0 0 0 924 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS 0 0 0 0 0 0 --------------------------------------------------------- FUNDS FROM OPERATIONS 0 924 0 0 0 924 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 --------------------------------------------------------- NET INCOME 0 924 0 0 0 924 =========================================================
See Footnotes on Page 14 Page 12 of 14 COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (In thousands, except per share amounts, percentages and ratios)
====================================================================== JOINT VENTURES 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD 2003 4TH 2003 - ---------------------------------------------------- ======== ===== ===== ======== ======== ======== ======== ====== COUSINS SHARE OF TEMCO ASSOCIATES (2): 50% 50% 50% 50% 50% 50% 50% 50% ======== ===== ===== ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 773 1,743 1,952 544 1,055 605 995 3,199 INTEREST EXPENSE 0 0 0 0 0 0 0 0 OTHER, NET (95) (23) (3) (13) (7) (20) (22) (62) -------- ----- ----- -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 678 1,720 1,949 531 1,048 585 973 3,137 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 0 0 -------- ----- ----- -------- -------- -------- -------- ------ NET INCOME 678 1,720 1,949 531 1,048 585 973 3,137 ======== ===== ===== ======== ======== ======== ======== ====== COUSINS SHARE OF CL REALTY, LLC (2): 50% 50% 50% 50% 50% ======== ===== ===== ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 0 0 0 0 197 259 245 701 OTHER, NET 0 0 0 (18) (20) (26) (30) (94) -------- ----- ----- -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 0 0 0 (18) 177 233 215 607 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 0 0 -------- ----- ----- -------- -------- -------- -------- ------ NET INCOME 0 0 0 (18) 177 233 215 607 ======== ===== ===== ======== ======== ======== ======== ====== COUSINS SHARE OF PINE MOUNTAIN BUILDERS, LLC (2): 50% 50% 50% 50% 50% ======== ===== ===== ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 0 0 0 0 0 0 0 0 OTHER, NET 0 0 0 0 0 0 0 0 -------- ----- ----- -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 0 0 0 0 0 0 0 0 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 0 0 0 -------- ----- ----- -------- -------- -------- -------- ------ NET INCOME 0 0 0 0 0 0 0 0 ======== ===== ===== ======== ======== ======== ======== ======
======== ======== ======== ======== ====== JOINT VENTURES 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 - ---------------------------------------------------- ======== ======== ======== ======== ====== COUSINS SHARE OF TEMCO ASSOCIATES (2): 50% 50% 50% 50% 50% ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 2,105 781 1,383 1,062 5,331 INTEREST EXPENSE (20) (37) (39) (39) (135) OTHER, NET 24 35 9 (69) (1) -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 2,109 779 1,353 954 5,195 DEPRECIATION & AMORTIZATION OF REAL ESTATE (11) (17) (17) (43) (88) -------- -------- -------- -------- ------ NET INCOME 2,098 762 1,336 911 5,107 ======== ======== ======== ======== ====== COUSINS SHARE OF CL REALTY, LLC (2): 50% 50% 50% 50% 50% ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 610 606 381 1,859 3,456 OTHER, NET (62) (42) (52) (63) (219) -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 548 564 329 1,796 3,237 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 -------- -------- -------- -------- ------ NET INCOME 548 564 329 1,796 3,237 ======== ======== ======== ======== ====== COUSINS SHARE OF PINE MOUNTAIN BUILDERS, LLC (2): 50% 50% 50% 50% 50% ======== ======== ======== ======== ====== RESIDENTIAL LOT AND OUTPARCEL SALES, NET OF COS 0 82 184 132 398 OTHER, NET 0 0 0 0 0 -------- -------- -------- -------- ------ FUNDS FROM OPERATIONS 0 82 184 132 398 DEPRECIATION & AMORTIZATION OF REAL ESTATE 0 0 0 0 0 -------- -------- -------- -------- ------ NET INCOME 0 82 184 132 398 ======== ======== ======== ======== ======
COUSINS PROPERTIES INCORPORATED NET INCOME AND FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, PERCENTAGES AND RATIOS) FOOTNOTES - ---------- (1) See corresponding reconciliations (identified with capital letters preceding the item descriptions) in Reconciliations of Non-GAAP Financial Measures. (2) Cousins' share of income from unconsolidated joint ventures has been adjusted in certain instances for elimination of inter-company activities and depreciation on Cousins' investment in joint ventures. (3) The Company recognizes a preferred return on its equity in Gateway Village. See Note 5 to "Notes to Consolidated Financial Statements" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. ================================================================================ COUSINS PROPERTIES INCORPORATED SAME PROPERTY GROWTH
FOURTH QUARTER 2004 VS FOURTH QUARTER TWELVE MONTHS THIRD QUARTER 2004 2004 VS 2003 2004 VS 2003 ----------------------- ---------------------- ------------------- OFFICE RETAIL TOTAL OFFICE RETAIL TOTAL OFFICE RETAIL TOTAL ------ ------ ----- ------ ------ ----- ------ ------ ----- Adjusted Rental Property Revenues (1) -4.3% 2.6% -2.7% -10.6% 5.7% -7.5% -7.9% 1.7% -6.0% Rental Property Operating Expenses 1.6% 5.6% 2.4% -5.8% -12.7% -7.1% -2.9% -8.1% -3.9% Adjusted Rental Property Revenues less Operating Expenses -7.6% 1.3% -5.4% -13.2% 16.6% -7.7% -10.3% 6.6% -7.0% Cash Basis Rental Property Revenues (2) -6.1% 2.6% -4.1% -14.0% 5.8% -10.4% -7.9% 2.1% -6.0% Rental Property Operating Expenses 1.6% 5.6% 2.4% -5.8% -12.7% -7.1% -2.9% -8.1% -3.9% Cash Basis Rental Property Revenues less Operating Expenses -10.1% 1.3% -7.3% -18.3% 16.8% -12.1% -10.4% 7.1% -7.0%
- ---------- (1) Adjusted Rental Property Revenues is Total Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees and inter-company activities. (2) Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases. COUSINS PROPERTIES INCORPORATED SAME PROPERTY GROWTH FOURTH QUARTER 2004 COMPARED TO THIRD QUARTER 2004 (IN THOUSANDS, EXCEPT PERCENTAGES)
SAME PROPERTY ---------------------------------------------------------------------------------------- OFFICE RETAIL TOTAL ---------------------------- -------------------------- ---------------------------- 3q 2004 4q 2004 % Change 3q 2004 4q 2004 % Change 3q 2004 4q 2004 % Change -------- -------- -------- ------- ------- -------- -------- -------- -------- RENTAL PROPERTY REVENUES $ 22,379 $ 21,418 $ 6,773 $ 6,920 $ 29,152 $ 28,338 Less: LEASE TERMINATION FEES 242 235 43 18 285 253 INTER-COMPANY ACTIVITIES 0 0 0 0 0 0 -------- -------- ------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES (1) 22,137 21,183 -4.3% 6,730 6,902 2.6% 28,867 28,085 -2.7% RENTAL PROPERTY OPERATING EXPENSES 7,844 7,970 1.6% 1,990 2,102 5.6% 9,834 10,072 2.4% -------- -------- ------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 14,293 $ 13,213 -7.6% $ 4,740 $ 4,800 1.3% $ 19,033 $ 18,013 -5.4% ======== ======== ======= ======= ======== ======== ADJUSTED RENTAL PROPERTY REVENUES (1) $ 22,137 $ 21,183 $ 6,730 $ 6,902 $ 28,867 $ 28,085 Less: STRAIGHT-LINE RENTS (236) 176 6 3 (230) 179 AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES (205) (205) 0 0 (205) (205) -------- -------- ------- ------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES (2) 22,578 21,212 -6.1% 6,724 6,899 2.6% 29,302 28,111 -4.1% RENTAL PROPERTY OPERATING EXPENSES 7,844 7,970 1.6% 1,990 2,102 5.6% 9,834 10,072 2.4% -------- -------- ------- ------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 14,734 $ 13,242 -10.1% $ 4,734 $ 4,797 1.3% $ 19,468 $ 18,039 -7.3% ======== ======== ======= ======= ======== ======== RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $ 22,379 $ 21,418 $ 6,773 $ 6,920 $ 29,152 $ 28,338 RENTAL PROPERTY OPERATING EXPENSES 7,844 7,970 1,990 2,102 9,834 10,072 -------- -------- ------- ------- -------- -------- $ 14,535 $ 13,448 $ 4,783 $ 4,818 $ 19,318 $ 18,266 ======== ======== ======= ======= ======== ======== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES (3) DISCONTINUED OPERATIONS (4) SHARE OF UNCONSOLIDATED JOINT VENTURES (5) TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES
NON-SAME ALL PROPERTIES ----------------- ------------------ 3q 2004 4q 2004 3q 2004 4q 2004 -------- ------- -------- -------- RENTAL PROPERTY REVENUES $ 19,575 $ 4,567 $ 48,727 $ 32,905 Less: LEASE TERMINATION FEES 227 4 512 257 INTER-COMPANY ACTIVITIES (69) 0 (69) 0 -------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES (1) 19,417 4,563 48,284 32,648 RENTAL PROPERTY OPERATING EXPENSES 6,592 1,529 16,426 11,601 -------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 12,825 $ 3,034 $ 31,858 $ 21,047 ======== ======== ======== ======== ADJUSTED RENTAL PROPERTY REVENUES (1) $ 19,417 $ 4,563 $ 48,284 $ 32,648 Less: STRAIGHT-LINE RENTS 710 520 480 699 AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES 0 0 (205) (205) -------- ------- -------- ------- CASH BASIS RENTAL PROPERTY REVENUES (2) 18,707 4,043 48,009 32,154 RENTAL PROPERTY OPERATING EXPENSES 6,592 1,529 16,426 11,601 -------- ------- -------- ------- CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 12,115 $ 2,514 $ 31,583 $ 20,553 ======== ======== ======== ======== RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $ 19,575 $ 4,567 $ 48,727 $ 32,905 RENTAL PROPERTY OPERATING EXPENSES 6,592 1,529 16,426 11,601 -------- ------- -------- -------- $ 12,983 $ 3,038 $ 32,301 $ 21,304 ======== ======= ======== ======== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES (3) $ 15,210 $ 14,149 DISCONTINUED OPERATIONS (4) 4,864 $ 385 SHARE OF UNCONSOLIDATED JOINT VENTURES (5) 12,227 6,770 -------- -------- TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES $ 32,301 $ 21,304 ======== ========
(1) Adjusted Rental Property Revenues is Total Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees and inter-company activities. (2) Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases. (3) See reconciliation (E) of Reconciliations of Non-GAAP Financial Measures. (4) See reconciliation (F) of Reconciliations of Non-GAAP Financial Measures. (5) See reconciliation (G) of Reconciliations of Non-GAAP Financial Measures. COUSINS PROPERTIES INCORPORATED SAME PROPERTY GROWTH Fourth Quarter 2004 Compared to Fourth Quarter 2003 (in thousands, except percentages)
SAME PROPERTY -------------------------------------------------------------------------------------- OFFICE RETAIL TOTAL ---------------------------- -------------------------- ---------------------------- 4q 2003 4q 2004 % Change 4q 2003 4q 2004 % Change 4 q 2003 4q 2004 % Change -------- -------- -------- ------- ------- -------- -------- -------- -------- RENTAL PROPERTY REVENUES $ 22,451 $ 20,285 $ 5,381 $ 5,525 $ 27,832 $ 25,810 Less: LEASE TERMINATION FEES 29 235 161 8 190 243 INTER-COMPANY ACTIVITIES 0 0 0 0 0 0 -------- -------- ------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES (1) 22,422 20,050 -10.6% 5,220 5,517 5.7% 27,642 25,567 -7.5% RENTAL PROPERTY OPERATING EXPENSES 7,949 7,489 -5.8% 1,940 1,693 -12.7% 9,889 9,182 -7.1% -------- -------- ------- ------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 14,473 $ 12,561 -13.2% $ 3,280 $ 3,824 16.6% $ 17,753 $ 16,385 -7.7% ======== ======== ======= ======= ======== ======== ADJUSTED RENTAL PROPERTY REVENUES (1) $ 22,422 $ 20,050 $ 5,220 $ 5,517 $ 27,642 $ 25,567 Less: STRAIGHT-LINE RENTS (714) 154 4 (2) (710) 152 AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES 0 0 0 0 0 0 -------- -------- ------- ------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES (2) 23,136 19,896 -14.0% 5,216 5,519 5.8% 28,352 25,415 -10.4% RENTAL PROPERTY OPERATING EXPENSES 7,949 7,489 -5.8% 1,940 1,693 -12.7% 9,889 9,182 -7.1% -------- -------- ------- ------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 15,187 $ 12,407 -18.3% $ 3,276 $ 3,826 16.8% $ 18,463 $ 16,233 -12.1% ======== ======== ======= ======= ======== ======== - RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $ 22,451 $ 20,285 $ 5,381 $ 5,525 $ 27,832 $ 25,810 RENTAL PROPERTY OPERATING EXPENSES 7,949 7,489 1,940 1,693 9,889 9,182 -------- -------- ------- ------- -------- -------- $ 14,502 $ 12,796 $ 3,441 $ 3,832 $ 17,943 $ 16,628 ======== ======== ======= ======= ======== ======== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES((3) DISCONTINUED OPERATIONS (4) SHARE OF UNCONSOLIDATED JOINT VENTURES(5) TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES
NON-SAME ALL PROPERTIES ------------------ ------------------ 4q 2003 4q 2004 4q 2003 4q 2004 -------- -------- -------- -------- RENTAL PROPERTY REVENUES $ 26,290 $ 7,095 $ 54,122 $ 32,905 Less: LEASE TERMINATION FEES 780 14 970 257 INTER-COMPANY ACTIVITIES 110 0 110 0 -------- -------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES (1) 25,400 7,081 53,042 32,648 RENTAL PROPERTY OPERATING EXPENSES 8,127 2,419 18,016 11,601 -------- -------- -------- -------- ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 17,273 $ 4,662 $ 35,026 $ 21,047 ======== ======== ======== ======== ADJUSTED RENTAL PROPERTY REVENUES (1) $ 25,400 $ 7,081 $ 53,042 $ 32,648 Less: STRAIGHT-LINE RENTS 180 547 (530) 699 AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES (52) (205) (52) (205) -------- -------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES (2) 25,272 6,739 53,624 32,154 RENTAL PROPERTY OPERATING EXPENSES 8,127 2,419 18,016 11,601 -------- -------- -------- -------- CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 17,145 $ 4,320 $ 35,608 $ 20,553 ======== ======== ======== ======== RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $ 26,290 $ 7,095 $ 54,122 $ 32,905 RENTAL PROPERTY OPERATING EXPENSES 8,127 2,419 18,016 11,601 -------- -------- -------- -------- $ 18,163 $ 4,676 $ 36,106 $ 21,304 ======== ======== ======== ======== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES((3) $ 16,721 $ 14,149 DISCONTINUED OPERATIONS (4) 4,881 $ 385 SHARE OF UNCONSOLIDATED JOINT VENTURES(5) 14,504 6,770 -------- -------- TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES $ 36,106 $ 21,304 ======== ========
- ---------- (1) Adjusted Rental Property Revenues is Total Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees and inter-company activities. (2) Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases. (3) See reconciliation (E) of Reconciliations of Non-GAAP Financial Measures. (4) See reconciliation (F) of Reconciliations of Non-GAAP Financial Measures. (5) See reconciliation (G) of Reconciliations of Non-GAAP Financial Measures. COUSINS PROPERTIES INCORPORATED SAME PROPERTY GROWTH Twelve Months 2004 Compared to Twelve Months 2003 (in thousands, except percentages)
SAME PROPERTY OFFICE RETAIL TOTAL --------------------------------------------------------------------------- % % % 2003 2004 Change 2003 2004 Change 2003 2004 Change ------------------------ ------------------------ ------------------------- RENTAL PROPERTY REVENUES $88,354 $85,697 $22,471 $21,838 $110,825 $107,535 Less: LEASE TERMINATION FEES 803 5,038 1,246 246 2,049 5,284 INTER-COMPANY ACTIVITIES 0 0 0 0 0 0 ---------------- ---------------- ------------------ ADJUSTED RENTAL PROPERTY REVENUES (1) 87,551 80,659 -7.9% 21,225 21,592 1.7% 108,776 102,251 -6.0% RENTAL PROPERTY OPERATING EXPENSES 29,031 28,185 -2.9% 7,076 6,506 -8.1% 36,107 34,691 -3.9% ---------------- ---------------- ------------------ ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $58,520 $52,474 -10.3% $14,149 $15,086 6.6% $ 72,669 $ 67,560 -7.0% ================ ================ ================== ADJUSTED RENTAL PROPERTY REVENUES (1) $87,551 $80,659 $21,225 $21,592 $108,776 $102,251 Less: STRAIGHT-LINE RENTS (387) (294) 69 0 (318) (294) AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES 0 0 0 0 0 0 ---------------- ---------------- ------------------ CASH BASIS RENTAL PROPERTY REVENUES (2) 87,938 80,953 -7.9% 21,156 21,592 2.1% 109,094 102,545 -6.0% RENTAL PROPERTY OPERATING EXPENSES 29,031 28,185 -2.9% 7,076 6,506 -8.1% 36,107 34,691 -3.9% ---------------- ---------------- ------------------ CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $58,907 $52,768 -10.4% $14,080 $15,086 7.1% $ 72,987 $ 67,854 -7.0% ================ ================ ================== RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $88,354 $85,697 $22,471 $21,838 $110,825 $107,535 RENTAL PROPERTY OPERATING EXPENSES 29,031 28,185 7,076 6,506 36,107 34,691 ---------------- ---------------- ------------------ $59,323 $57,512 $15,395 $15,332 $ 74,718 $ 72,844 ================ ================ ================== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES (3) DISCONTINUED OPERATIONS (4) SHARE OF UNCONSOLIDATED JOINT VENTURES (5) TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES NON-SAME ALL PROPERTIES -------------------- -------------------- 2003 2004 2003 2004 -------------------- -------------------- RENTAL PROPERTY REVENUES $140,961 $87,435 $251,786 $194,970 Less: LEASE TERMINATION FEES 22,613 454 24,662 5,738 INTER-COMPANY ACTIVITIES (279) (197) (279) (197) -------------------- -------------------- ADJUSTED RENTAL PROPERTY REVENUES (1) 118,627 87,178 227,403 189,429 RENTAL PROPERTY OPERATING EXPENSES 37,104 28,222 73,211 62,913 -------------------- -------------------- ADJUSTED RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 81,523 $58,956 $154,192 $126,516 ==================== ==================== ADJUSTED RENTAL PROPERTY REVENUES (1) $118,627 $87,178 $227,403 $189,429 Less: STRAIGHT-LINE RENTS 1,145 2,624 827 2,330 AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES (52) (805) (52) (805) -------------------- -------------------- CASH BASIS RENTAL PROPERTY REVENUES (2) 117,534 85,359 226,628 187,904 RENTAL PROPERTY OPERATING EXPENSES 37,104 28,222 73,211 62,913 -------------------- -------------------- CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES $ 80,430 $57,137 $153,417 $124,991 ==================== ==================== RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES RENTAL PROPERTY REVENUES $140,961 $87,435 $251,786 $194,970 RENTAL PROPERTY OPERATING EXPENSES 37,104 28,222 73,211 62,913 -------------------- -------------------- $103,857 $59,213 $178,575 $132,057 ==================== ==================== RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: OPERATING PROPERTIES (3) $ 68,715 $ 67,288 DISCONTINUED OPERATIONS (4) 52,641 15,760 SHARE OF UNCONSOLIDATED JOINT VENTURES (5) 57,219 49,009 -------------------- TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES $178,575 $132,057 ====================
(1) Adjusted Rental Property Revenues is Total Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees and inter-company activities. (2) Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and the Company's pro rata share of Rental Property Revenues of unconsolidated joint ventures, adjusted to exclude termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases. (3) See reconciliation (E) of Reconciliations of Non-GAAP Financial Measures. (4) See reconciliation (F) of Reconciliations of Non-GAAP Financial Measures. (5) See reconciliation (G) of Reconciliations of Non-GAAP Financial Measures. Page 4 of 4 COUSINS PROPERTIES INCORPORATED DEVELOPMENT PIPELINE (1) AS OF DECEMBER 31, 2004 ($ in thousands)
ACTUAL OR LEASED PROJECTED DATES GLA (%) COUSINS' COUSINS' FOR COMPLETION COMPANY OWNED (FULLY VENTURE COUSINS' APPROXIMATE SHARE OF INVESTMENT AND FULLY PROJECT GLA EXECUTED) PARTNER OWNERSHIP % TOTAL COST TOTAL COSTS @ 12/31/04 OPERATIONAL/SOLD ------- ------------- --------- ------------- ----------- ----------- ----------- ---------- ----------------- OFFICE & MEDICAL OFFICE Inhibitex 51,000 100% N/A 100% $ 6,900 $ 6,900 $ 5,091 const. - 1Q-05 (Atlanta, GA) fully operational 2Q-05 ------------ ----------- ------- ------- TOTAL OFFICE & MEDICAL OFFICE 51,000 6,900 6,900 5,091 ------------ ----------- ------- ------- CONDOMINIUMS 905 Juniper 117 units N/A Gellerstedt 72% 29,400 22,700 4,800 const. - 4Q-05 (Atlanta, GA) Development fully sold 4Q-06 ------------ ----------- ------- ------- TOTAL CONDOMINIUMS 117 units 29,400 22,700 4,800 ------------ ----------- ------- ------- RETAIL The Avenue Viera (2) 306,000 79% N/A 100% 54,400 54,400 39,909 const. - 4Q-04 (Viera, FL) fully operational 4Q-05 Hanover Square South 69,000 35% N/A 100% 12,300 12,300 8,111 const. - 1Q-05 (Richmond, VA) fully operational 1Q-06 The Avenue Carriage Crossing (3) 586,000 51% Jim Wilson & 100% 103,000 100,500 37,172 const. - 4Q-05 (Memphis, TN) Associates fully operational 4Q-06 Viera MarketCenter (4) 104,000 93% N/A 100% 9,800 9,800 4,256 const. - 4Q-05 (Viera, FL) fully operational 4Q-05 ----------- ----------- ------- -------- TOTAL RETAIL 1,065,000 179,500 177,000 89,448 ----------- ----------- ------- -------- Accumulated Depreciation on Partially Operational Properties - - - (90) ----------- ----------- -------- -------- TOTAL PORTFOLIO 1,116,000 $ 215,800 $206,600 $ 99,249 =========== =========== ======== ========
(1) This schedule includes all projects currently under construction from the commencement of construction until the projects become fully operational pursuant to accounting principles generally accepted in the United States. Costs are estimated costs upon completion and achievement of fully operational status. Significant estimates are required to derive these costs and the final costs may differ from these estimates. The projected dates for completion and fully operational status shown are estimates and are subject to change as the projects proceed through the development process. (2) The Avenue Viera ("AV") is Partially Operational for financial reporting purposes and therefore, depreciation has commenced. Additionally, AV will be constructed in two phases. Phase 1 represents approximately 286,000 square feet. The completion date, operational date, and leased square footage in the above schedule relate only to Phase 1. Phase 2 represents approximately 20,000 square feet and is anticipated to have construction completed in the fourth quarter of 2005, with fully operational status occurring first quarter 2006. (3) The Avenue Carriage Crossing ("ACC") square footage includes 130,000 square feet ground leased to a tenant. The tenant is constructing its own building and therefore the cost of this space is not included in the total costs above. ACC is consolidated by the Company. Jim Wilson & Associates contributed $2.5 million of equity to the entity and will share in the operations and any gain on sale of the property. Additionally, ACC will be constructed in two phases. Phase 1 represents approximately 532,000 square feet. The completion and operational dates in the above schedule relate only to Phase 1. Leased square footage in the above schedule does not include 40,000 square feet of expansion space related to Phase 1. Phase 2 represents approximately 54,000 square feet and is anticipated to have construction completed in the fourth quarter of 2006, with fully operational status occurring fourth quarter 2007. (4) The Viera MarketCenter square footage includes 96,000 square feet ground leased to a tenant who is constructing its own space and reimbursing the Company at the end of construction for a portion of its construction costs. Total costs above are net of this reimbursement, although Cousins' investment is not, since the reimbursement has not been received. Note: Certain matters herein are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks, including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company's ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the failure of assets under contract for sale to ultimately close and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Current Report on Form 8-K filed on December 10, 2003. The words "believes", "expects", "anticipates", "estimates" and 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 these 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. COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts)
DECEMBER 31, December 31, 2004 2003 ------------ ----------- (UNAUDITED) ASSETS PROPERTIES: Operating properties, net of accumulated depreciation of $140,262 in 2004 and $162,955 in 2003 $ 528,551 $ 686,788 Land held for investment or future development 29,563 17,435 Projects under construction 94,449 152,042 Residential lots under development 19,860 22,496 ------------ ------------ Total properties 672,423 878,761 CASH AND CASH EQUIVALENTS, at cost which approximates market 89,490 13,061 RESTRICTED CASH 1,188 3,661 NOTES AND OTHER RECEIVABLES 22,107 19,847 INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 199,233 185,221 OTHER ASSETS, including goodwill of $7,891 in 2004 and $15,696 in 2003 36,678 39,863 ------------ ------------ TOTAL ASSETS $ 1,021,119 $ 1,140,414 ============ ============ LIABILITIES AND STOCKHOLDERS' INVESTMENT NOTES PAYABLE $ 302,286 $ 497,981 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 29,353 29,909 DEPOSITS AND DEFERRED INCOME 3,504 5,341 ------------ ------------ TOTAL LIABILITIES 335,143 533,231 ------------ ------------ MINORITY INTERESTS 20,017 19,346 ------------ ------------ DEFERRED GAIN 6,209 9,060 ------------ ------------ COMMITMENTS AND CONTINGENT LIABILITIES STOCKHOLDERS' INVESTMENT: 7.75% Series A cumulative redeemable preferred stock, $1 par value, $25 liquidation value; 20,000,000 shares authorized, 4,000,000 shares issued 100,000 100,000 7.50% Series B cumulative redeemable preferred stock, $1 par value, $25 liquidation value; 20,000,000 shares authorized, 4,000,000 and 0 shares issued, respectively 100,000 - Common stock, $1 par value, 150,000,000 shares authorized, 52,783,791 and 51,526,647 shares issued, respectively 52,784 51,527 Additional paid-in capital 311,943 298,542 Treasury stock at cost, 2,691,582 shares (64,894) (64,894) Unearned compensation (10,160) (5,803) Cumulative undistributed net income 170,077 199,405 ------------ ------------ TOTAL STOCKHOLDERS' INVESTMENT 659,750 578,777 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,021,119 $ 1,140,414 ============ ============
COUSINS PROPERTIES INCORPORATED PORTFOLIO LISTING BY PROPERTY TYPE & GEOGRAPHICAL CONCENTRATION AS OF DECEMBER 31, 2004
PERCENT LEASED (FULLY EXECUTED) COMPANY'S ---------------- METROPOLITAN RENTABLE OWNERSHIP PRIOR QUARTER CURRENT QUARTER PROPERTY DESCRIPTION AREA STATE SQUARE FEET INTEREST (9/30/04) (12/31/04) - ------------------------------------------- ------------ -------------- -------------- --------- ----------------- --------------- I. OFFICE A. COMMERCIAL OFFICE Bank of America Plaza Atlanta 1,253,000 50.00% 100% 100% Inforum Atlanta 983,000 100.00% 85% 85% 1155 Perimeter Center West Atlanta 365,000 50.00% 59% 59% One Georgia Center Atlanta 347,000 88.50% 41% 15% Ten Peachtree Place Atlanta 259,000 50.00% 100% 100% 3100 Windy Hill Road Atlanta 188,000 100.00% 100% 100% 555 North Point Center East Atlanta 152,000 100.00% 80% 82% 615 Peachtree Street Atlanta 138,000 100.00% 57% 57% 200 North Point Center East Atlanta 130,000 100.00% 43% 43% 333 North Point Center East Atlanta 129,000 100.00% 71% 71% 100 North Point Center East Atlanta 128,000 100.00% 81% 82% Galleria 75 Atlanta 114,000 100.00% 84% 80% 3301 Windy Ridge Parkway Atlanta 107,000 100.00% 100% 100% ----------- ------------- ------------ Georgia 4,293,000 80% 78% ----------- ------------- ------------ Gateway Village Charlotte North Carolina 1,065,000 50.00% 100% 100% ----------- ------------- ------------ Frost Bank Tower Austin 529,000 90.25% 61%(a) 62% The Points at Waterview Dallas 203,000 100.00% 96% 100% ----------- ------------- ------------ Texas 732,000 96% 74% ----------- ------------- ------------ Lakeshore Park Plaza (b) Birmingham 190,000 100.00% 92% 96% Grandview II Birmingham 149,000 11.50% 100% 92% 600 University Park Place (b) Birmingham 123,000 100.00% 100% 95% ----------- ------------- ------------ Alabama 462,000 95% 96% ----------- ------------- ------------ TOTAL COMMERCIAL OFFICE 6,552,000(d) 85%(c) 81%(c) =========== ============= ============ B. MEDICAL OFFICE Emory Crawford Long Medical Office Tower Atlanta 358,000 50.00% 98% 98% Meridian Mark Plaza Atlanta 160,000 100.00% 100% 100% AtheroGenics Atlanta 51,000 100.00% 100% 100% Inhibitex Atlanta 51,000 100.00% 100%(a) 100%(a) ----------- ------------- ------------ Georgia 620,000 99% 99% ----------- ------------- ------------ Presbyterian Medical Plaza at University Charlotte North Carolina 69,000 11.50% 100% 100% ----------- ------------- ------------ TOTAL MEDICAL OFFICE 689,000 99%(c) 99%(c) =========== ============= ============ TOTAL OFFICE 7,241,000(d) 86%(c) 82%(c) =========== ============= ============
COUSINS PROPERTIES INCORPORATED PORTFOLIO LISTING BY PROPERTY TYPE & GEOGRAPHICAL CONCENTRATION AS OF DECEMBER 31, 2004
PERCENT LEASED (FULLY EXECUTED) COMPANY'S ---------------- METROPOLITAN RENTABLE OWNERSHIP PRIOR QUARTER CURRENT QUARTER PROPERTY DESCRIPTION AREA STATE SQUARE FEET INTEREST (9/30/04) (12/31/04) - ----------------------------------- ------------- ---------- ---------------- ----------- ------------------ ----------------- II.RETAIL North Point MarketCenter Atlanta 401,000 11.50% 100% 100% The Avenue East Cobb Atlanta 230,000 100.00% 98% 96% The Avenue West Cobb Atlanta 205,000 100.00% 96% 96% The Avenue Peachtree City Atlanta 182,000 88.50% 99%(e) 99%(e) Mansell Crossing Phase II Atlanta 103,000 11.50% 100% 100% -------------- ------------- ------------- Georgia 1,121,000 98% 97% -------------- ------------- ------------- The Avenue Carriage Crossing (b) Memphis Tennessee 586,000 100.00% 45%(a,g) 51%(a,g) -------------- ------------- ------------- The Avenue of the Peninsula Rolling Hills Estates 374,000 100.00% 84% 84% Los Altos MarketCenter Long Beach 157,000 11.50% 100% 100% -------------- ------------- ------------- California 531,000 84% 85% -------------- ------------- ------------- The Avenue Viera Viera 306,000 100.00% 72%(a,g) 79%(a,g) Viera MarketCenter Viera 104,000 100.00% N/A 93%(a) The Shops at World Golf Village St. Augustine 80,000 50.00% 72% 72% -------------- ------------- ------------- Florida 490,000 72% 72% -------------- ------------- ------------- Greenbrier MarketCenter Chesapeake 376,000 11.50% 100% 100% Hanover Square South Richmond 69,000 100.00% 27%(a) 35%(a) -------------- ------------- ------------- Virginia 445,000 100% 100% -------------- ------------- ------------- TOTAL RETAIL 3,173,000(f) 92%(c) 92%(c) ============== ============= ============= TOTAL PORTFOLIO 10,414,000 87%(c) 84%(c) ============== ============= =============
COUSINS PROPERTIES INCORPORATED PORTFOLIO LISTING BY PROPERTY TYPE & GEOGRAPHICAL CONCENTRATION AS OF DECEMBER 31, 2004
PERCENT LEASED COMPANY WEIGHTED (FULLY EXECUTED) SHARE OF AVERAGE ---------------- RENTABLE RENTABLE OWNERSHIP PRIOR QUARTER CURRENT QUARTER SQUARE FEET SQUARE FEET % (9/30/04) (12/31/04) ----------- ----------- --------- --------------- --------------- SUMMARY BY TYPE Commercial Office 6,552,000 4,858,000 65% 85% 81% Medical Office 689,000 449,000 6% 99% 99% ----------- ----------- --------- --------------- --------------- Subtotal 7,241,000 5,307,000 71% 86% 82% Retail 3,173,000 2,194,000 29% 92% 92% ----------- ----------- --------- --------------- --------------- TOTAL 10,414,000 7,501,000 100% 87%(c) 84%(c) =========== =========== ========= =============== =============== SUMMARY BY STATE Georgia 6,034,000 4,410,000 59% 85% 83% North Carolina 1,134,000 540,000 7% 100% 100% Texas 732,000 681,000 9% 96% 74% Tennessee 586,000 586,000 8% N/A(c) N/A(c) California 531,000 392,000 5% 84% 85% Florida 490,000 450,000 6% 72% 72% Alabama 462,000 330,000 5% 95% 96% Virginia 445,000 112,000 1% 100% 100% ----------- ----------- --------- --------------- --------------- 10,414,000 7,501,000 100% 87%(c) 84%(c) =========== =========== ========= =============== ===============
(a) Under construction and/or in lease up. (b) This project is owned through a joint venture with a third party, and a portion of the upside is shared with the other venturer. (c) Total leased percentage (weighted by ownership) of completed projects excluding projects under construction and/or in lease-up. (d) The Company has an effective 9.80% ownership interest in 191 Peachtree Tower, a 1.2 million square foot office building in Atlanta, Georgia, subject to a preference in favor of the majority owner. The Company has not recognized any income from this property to date and is excluding this property from the portfolio listing. (e) This property is subject to a contractual participation in which a portion of the upside is shared with a third party. Also, an expansion of 13,000 square feet is currently under construction and lease-up. The expansion space is included in the rentable square feet for the property, but excluded from the percent leased calculations. (f) The Company has a 10% interest in Deerfield Towne Center, a 371,000 square foot retail project that is partially operational and in lease-up in Deerfield, Ohio. The Company has no capital invested in the project, but is entitled to receive 10% of the operating income and 10% of any residuals upon sale. (g) Total project square footage for these properties includes anticipated expansions however, the percent leased excludes these expansions. COUSINS PROPERTIES INCORPORATED TOP 25 LARGEST TENANTS BASED ON SQUARE FEET As of December 31, 2004
PERCENTAGE OF TOTAL PORTFOLIO AT AVERAGE REMAINING TENANT (1) THE COMPANY'S SHARE (2) LEASE TERM (YEARS) -------------------------------------------------- -------------------------------- ------------------ 1. Bank of America 12.2% 9.9 2. BellSouth 4.4% 4.8 3. IBM 2.9% 1.9 4. Georgia Lottery Corporation 2.0% 8.5 5. AGL Services Company 1.8% 8.3 6. Troutman Sanders LLP 1.8% 15.4 7. Infinity Insurance Company 1.7% 0.1 8. Internap Network Services 1.7% 15.3 9. Mirant Corporation 1.7% 1.7 10. Indus International, Inc. 1.7% 7.3 11. Ernst & Young U.S. LLP 1.7% 2.3 12. Bombardier Aerospace Corporation 1.5% 8.2 13. Emory University 1.2% 12.2 14. The Gap Inc. 1.0% 2.2 15. Graves Dougherty 0.9% 10.7 16. Turner Broadcasting System, Inc. 0.9% 1.4 17. Sapient Corporation 0.9% 4.4 18. Paul Hastings 0.9% 7.8 19. Regal Cinemas, Inc. 0.9% 10.3 20. KIDS II, Inc. 0.8% 11.0 21. Northside Hospital 0.8% 8.1 22. AtheroGenics 0.8% 4.2 23. Hunton & Williams LLP 0.7% 4.2 24. The Frost National Bank 0.7% 9.3 25. Winstead Sechrest 0.7% 9.4 ---- ---- TOTAL LEASED SQUARE FEET OF TOP 25 LARGEST TENANTS 46.4% 7.5
(1) In some cases, the actual tenant may be an affiliate of the company shown. (2) Percentages are based on square footage amounts of completed projects only. COUSINS PROPERTIES INCORPORATED INVENTORY OF LAND HELD FOR INVESTMENT OR FUTURE DEVELOPMENT (EXCLUDING BUILDING PADS (1) AND RESIDENTIAL COMMUNITIES (2)) AS OF DECEMBER 31, 2004
COMPANY'S DEVELOPABLE JOINT VENTURE OWNERSHIP DESCRIPTION AND LOCATION ZONED USE LAND AREA (3) PARTNER INTEREST - ------------------------ --------- ------------- ------- -------- WILDWOOD OFFICE PARK Office and Commercial 62 N/A 100% Suburban Atlanta, GA Office and Commercial 32 IBM 50% NORTH POINT LAND (4) Suburban Atlanta, GA Office and Commercial-East Side 13 N/A 100% (Georgia Highway 400 & Haynes Bridge Road) Mixed Use-West Side 99 N/A 100% 50 BISCAYNE BOULEVARD Miami, FL Mixed Use 1 N/A 100% SALEM ROAD STATION Suburban Atlanta, GA Retail Outparcel 2 N/A 100% THE AVENUE WEST COBB Suburban Atlanta, GA Commercial 8 N/A 100% THE AVENUE VIERA Viera, FL Retail Outparcels 3 N/A 100% HANOVER SQUARE Richmond, VA Retail Outparcels 5 N/A 100% AUSTIN RESEARCH PARK CommonWealth Pacific Austin, TX Commercial 6 LLC and CalPERS 50% 505 & 511 PEACHTREE STREET Atlanta, GA Mixed Use 1 N/A 100% HANDY ROAD ASSOCIATES, LLC Handy Road Suburban Atlanta, GA Agricultural (5) 1,187 Managers, LLC 50% TEMCO ASSOCIATES Temple-Inland Suburban Atlanta, GA Residential and Commercial See Note (7) Inc. (6) 50%
Page 1 of 2 COUSINS PROPERTIES INCORPORATED INVENTORY OF LAND HELD FOR INVESTMENT OR FUTURE DEVELOPMENT (EXCLUDING BUILDING PADS (1) AND RESIDENTIAL COMMUNITIES (2)) AS OF DECEMBER 31, 2004 (1) The following properties include adjacent building pads, the basis of which are included in the basis of each of these operating properties in the Company's consolidated financial statements or the applicable joint venture's financial statements. The square footage of potential office buildings which could be built on the land is as follows:
Ownership Interest Square Footage -------- -------------- Ten Peachtree Place 50% 400,000 One Georgia Center 100% 300,000 The Points at Waterview 100% 60,000
(2) Certain residential communities have adjacent land either owned or under option that is intended to be sold to third parties in large tracts for residential, multi-family or commercial development. See the Inventory of Residential Lots Under Development schedule for a detail of such land. (3) Rounded to nearest acre, based upon management's current estimates. (4) The North Point property is located both east and west of Georgia Highway 400. The land located east of Georgia Highway 400 is near North Point Mall, a 1.3 million square foot regional mall on a 100-acre site which the Company sold in 1988. Development had been mainly concentrated on the land located east of Georgia Highway 400, until July 1998 when the Company commenced construction of the first building, AtheroGenics, on the west side. The land on the west side has been rezoned to mixed use to include residential as well as office and commercial. The Company sold approximately 70 and 42 acres of land on the west side in the years ended December 31, 2004 and 2003, respectively. The Company also transferred approximately 5 acres of land to Projects Under Construction during the year ended December 31, 2004. (5) Current zoning allows large lot residential development. (6) Joint venture partner is an affiliate of the entity shown. (7) Temco Associates has an option through March 2006, with no carrying costs, to acquire the fee simple interest in approximately 6,500 acres in Paulding County, Georgia (northwest of Atlanta, Georgia). The partnership also has an option to acquire interests in a timber rights only lease covering approximately 22,000 acres. This option also expires in March 2006, with the underlying lease expiring in 2025. The options may be exercised in whole or in part over the option period, and the option price of the fee simple land was $1,243 per acre at January 1, 2005, escalating at 6% on January 1 of each succeeding year during the term of the option. The following is a detail of acreage activity:
Year Ended December 31, ----------------------- 2004 2003 2002 ---- ---- ---- Acres purchased and simultaneously sold 161 97 607 Acres purchased and held under option for third parties - - 78 Acres held under option or for sale or future development subsequently sold 149 10 - Acres purchased by Temco for residential developments 472 21 910 Acres purchased for sale or future development - 149 - --- --- ----- Total option acres exercised 782 277 1,595 === === =====
Page 2 of 2 COUSINS PROPERTIES INCORPORATED INVENTORY OF RESIDENTIAL LOTS UNDER DEVELOPMENT AS OF DECEMBER 31, 2004
ESTIMATED ESTIMATED DEVELOPED LOTS SOLD LOTS SOLD TOTAL YEAR PROJECT LIFE TOTAL LOTS TO LOTS IN IN CURRENT YEAR TO LOTS DESCRIPTION COMMENCED (IN YEARS) BE DEVELOPED (1) INVENTORY QUARTER DATE SOLD ----------- --------- ---------- --------------- --------- ------- ---- ---- COUSINS REAL ESTATE CORPORATION (100% OWNED) THE LAKES AT CEDAR GROVE 2001 9 906 73 68 157 473 Fulton County Suburban Atlanta, GA LONGLEAF AT CALLAWAY (3) 2002 4 138 78 15 41 60 Harris County Pine Mountain, GA RIVER'S CALL 1999 10 107 38 3 27 52 East Cobb County Suburban Atlanta, GA ----- --- -- --- --- TOTAL 100% OWNED 1,151 189 86 225 585 ----- --- -- --- --- TEMCO ASSOCIATES (50% OWNED) (4) BENTWATER 1998 11 1,650 106 45 205 1,395 Paulding County Suburban Atlanta, GA THE GEORGIAN (75% OWNED) 2003 10 1,386 216 16 129 142 Paulding County Suburban Atlanta, GA SEVEN HILLS AT BENTWATER 2003 6 996 235 80 150 150 Paulding County Suburban Atlanta, GA HAPPY VALLEY (50% OWNED) 2004 4 399 0 0 0 0 Paulding County Suburban Atlanta, GA PAUL HARRIS ESTATES 2004 4 27 20 7 7 7 Paulding County Suburban Atlanta, GA ----- --- --- --- ----- TOTAL TEMCO 4,458 577 148 491 1,694 ----- --- --- --- ----- CL REALTY, LLC (50% OWNED) (4) LONG MEADOW FARMS (37.5% OWNED) 2003 10 2,710 218 102 110 110 Fort Bend County Houston, TX SUMMER CREEK RANCH 2003 9 2,445 211 77 349 477 Tarrant County Fort Worth, TX REMAINING ADDITIONAL LOTS TO BE LAND DESCRIPTION SOLD (ACRES) (2) ----------- ---- ----------- COUSINS REAL ESTATE CORPORATION (100% OWNED) THE LAKES AT CEDAR GROVE 433 118 Fulton County Suburban Atlanta, GA LONGLEAF AT CALLAWAY (3) 78 0 Harris County Pine Mountain, GA RIVER'S CALL 55 0 East Cobb County Suburban Atlanta, GA --- --- TOTAL 100% OWNED 566 118 --- --- TEMCO ASSOCIATES (50% OWNED) (4) BENTWATER 255 0 Paulding County Suburban Atlanta, GA THE GEORGIAN (75% OWNED) 1,244 0 Paulding County Suburban Atlanta, GA SEVEN HILLS AT BENTWATER 846 1,047 Paulding County Suburban Atlanta, GA HAPPY VALLEY (50% OWNED) 399 0 Paulding County Suburban Atlanta, GA PAUL HARRIS ESTATES 20 0 Paulding County Suburban Atlanta, GA ----- ----- TOTAL TEMCO 2,764 1,047 ----- ----- CL REALTY, LLC (50% OWNED) (4) LONG MEADOW FARMS (37.5% OWNED) 2,600 134 Fort Bend County Houston, TX SUMMER CREEK RANCH 1,968 374 Tarrant County Fort Worth, TX
Page 1 of 2 COUSINS PROPERTIES INCORPORATED INVENTORY OF RESIDENTIAL LOTS UNDER DEVELOPMENT AS OF DECEMBER 31, 2004
ESTIMATED ESTIMATED DEVELOPED LOTS SOLD LOTS SOLD TOTAL YEAR PROJECT LIFE TOTAL LOTS TO LOTS IN IN CURRENT YEAR TO LOTS DESCRIPTION COMMENCED (IN YEARS) BE DEVELOPED (1) INVENTORY QUARTER DATE SOLD ----------- --------- ---------- --------------- --------- ------- ---- ---- CL REALTY, LLC, CONTINUED BAR C RANCH 2004 8 1,180 0 0 0 0 Tarrant County Forth Worth, TX SUMMER LAKES 2003 5 1,160 0 0 0 0 Fort Bend County Rosenberg, TX STONEBRIDGE (10% OWNED) 2003 4 619 106 110 173 173 Coweta County Newnan, GA MCKINNEY VILLAGE PARK (60% OWNED) 2003 4 587 67 39 120 120 Collin County McKinney, TX MANATEE RIVER PLANTATION 2003 5 460 147 88 88 88 Manatee County Tampa, FL STILLWATER CANYON 2003 5 336 42 14 63 85 Dallas County DeSota, TX CREEKSIDE OAKS 2003 5 305 37 0 40 40 Manatee County Bradenton, FL HIDDEN LAKES 2003 2 89 19 24 29 70 Tarrant County Keller, TX GARDINIER ESTATES 2004 6 86 0 0 0 0 Hillsborough County Tampa, FL ------ ----- --- ----- ----- TOTAL CL REALTY 9,977 847 454 972 1,163 ------ ----- --- ----- ----- TOTAL 15,586 1,613 688 1,688 3,442 ====== ===== === ===== ===== COMPANY SHARE OF TOTAL 6,853 745 296 804 1,860 ====== ===== === ===== ===== COMPANY WEIGHTED AVERAGE OWNERSHIP 44% 46% 43% 48% 54% ====== ===== === ===== ===== REMAINING ADDITIONAL LOTS TO BE LAND DESCRIPTION SOLD (ACRES) (2) ----------- ---- ----------- CL REALTY, LLC, CONTINUED BAR C RANCH 1,180 0 Tarrant County Forth Worth, TX SUMMER LAKES 1,160 50 Fort Bend County Rosenberg, TX STONEBRIDGE (10% OWNED) 446 0 Coweta County Newnan, GA MCKINNEY VILLAGE PARK (60% OWNED) 467 8 Collin County McKinney, TX MANATEE RIVER PLANTATION 372 0 Manatee County Tampa, FL STILLWATER CANYON 251 0 Dallas County DeSota, TX CREEKSIDE OAKS 265 0 Manatee County Bradenton, FL HIDDEN LAKES 19 0 Tarrant County Keller, TX GARDINIER ESTATES 86 0 Hillsborough County Tampa, FL ------ ----- TOTAL CL REALTY 8,814 566 ------ ----- TOTAL 12,144 1,731 ====== ===== COMPANY SHARE OF TOTAL 4,993 881 ====== ===== COMPANY WEIGHTED AVERAGE OWNERSHIP 41% 51% ====== =====
(1) This estimate represents the total projected development capacity for a development on both owned land and land expected to be purchased for further development. The numbers shown include lots currently developed or to be developed over time, based on management's current estimates, and lots sold to date from inception of development. (2) This estimate represents the acreage on both owned land and land under option that is intended to be sold to third parties in large tracts for residential, multi-family or commercial development. (3) Longleaf at Callaway lots are sold to a home building venture, of which Cousins Real Estate Corporation ("CREC") is a joint venture partner. As a result of this relationship, the Company recognizes profits when houses are built and sold, rather than at the time lots are sold, as is the case with the Company's other residential developments. As of December 31, 2004, 27 houses have been sold. (4) CREC owns 50% of Temco Associates and CL Realty, LLC ("CL Realty"). See the Company's Annual Report on Form 10-K for the year ended December 31, 2003 for a description of Temco Associates and CL Realty. Page 2 of 2 COUSINS PROPERTIES INCORPORATED SQUARE FEET EXPIRING AS OF DECEMBER 31, 2004 OFFICE As of December 31, 2004, the Company's office portfolio included 19 commercial office buildings. The weighted average remaining lease term of these office buildings was approximately seven years as of December 31, 2004. 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:
2005 2006 2007 2008 2009 2010 2011 2012 ---- ---- ---- ---- ---- ---- ---- ---- Wholly Owned: Square Feet Expiring (1) 285,387 390,610 117,730 160,070 417,963 96,218 96,199 130,724 % of Leased Space 13% 18% 5% 7% 19% 4% 4% 6% Annual Contractual Rent (000's) (3) $ 4,654 $ 6,084 $ 2,158 $ 2,365 $ 6,240 $ 1,597 $ 1,494 $ 2,190 Annual Contractual Rent/Sq. Ft. (3) $ 16.31 $ 15.57 $ 18.33 $ 14.77 $ 14.93 $ 16.59 $ 15.53 $ 16.76 Joint Venture: Square Feet Expiring (1) 85,574 46,926 458,402 51,552 181,132 3,948 6,478 647,393 % of Leased Space 3% 1% 14% 2% 5% 0% 0% 20% Annual Contractual Rent (000's) (3) $ 1,383 $ 818 $ 8,555 $ 897 $ 3,477 $ 73 $ 84 $ 17,723 Annual Contractual Rent/Sq. Ft. (3) $ 16.17 $ 17.44 $ 18.66 $ 17.39 $ 19.20 $ 18.45 $ 12.91 $ 27.38 Total (including only Company's % share of Joint Venture Properties): Square Feet Expiring (1) 304,102 414,516 350,886 171,874 511,101 99,712 101,096 454,421 % of Leased Space 8% 11% 9% 4% 13% 3% 3% 12% Annual Contractual Rent (000's) (3) $ 4,931 $ 6,468 $ 6,478 $ 2,535 $ 8,032 $ 1,661 $ 1,570 $ 11,052 Annual Contractual Rent/Sq. Ft. (3) $ 16.22 $ 15.60 $ 18.46 $ 14.75 $ 15.71 $ 16.66 $ 15.53 $ 24.32 2014 & 2013 THEREAFTER TOTAL ---- ---------- ----- Wholly Owned: Square Feet Expiring (1) 230,462 250,872 2,176,235 (2) % of Leased Space 11% 13% 100% Annual Contractual Rent (000's) (3) $ 3,717 $ 6,085 $ 36,584 Annual Contractual Rent/Sq. Ft. (3) $ 16.13 $ 24.26 $ 16.81 Joint Venture: Square Feet Expiring (1) 240,318 1,593,218 3,314,941 (4) % of Leased Space 7% 48% 100% Annual Contractual Rent (000's) (3) $ 4,240 $ 33,597 $ 70,847 Annual Contractual Rent/Sq. Ft. (3) $ 17.64 $ 21.09 $ 21.37 Total (including only Company's % share of Joint Venture Properties): Square Feet Expiring (1) 356,070 1,170,193 3,933,971 % of Leased Space 9% 28% 100% Annual Contractual Rent (000's) (3) $ 5,837 $ 26,030 74,594 Annual Contractual Rent/Sq. Ft. (3) $ 16.39 $ 22.24 $ 18.96
(1) Where a tenant has the option to cancel its lease without penalty, the lease expiration date used in the table above reflects the cancellation option date rather than the lease expiration date. (2) Rentable square feet leased as of December 31, 2004 out of approximately 2,585,000 total rentable square feet. (3) Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable. If the lease does not provide for pass through of such operating expense reimbursements, an estimate of operating expenses is deducted from the rental rate shown. The contractual rental rate shown is the estimated rate in the year of expiration. (4) Rentable square feet leased as of December 31, 2004 out of approximately 3,967,000 total rentable square feet. Page 1 of 3 COUSINS PROPERTIES INCORPORATED SQUARE FEET EXPIRING AS OF DECEMBER 31, 2004 MEDICAL OFFICE As of December 31, 2004, the Company's medical office portfolio included four medical office buildings, excluding the property currently under construction. The weighted average remaining lease term of these medical office properties was approximately seven years as of December 31, 2004. The medical office properties provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:
2014 & 2005 2006 2007 2008 2009 2010 2011 2012 2013 THEREAFTER TOTAL -------- -------- -------- -------- -------- -------- -------- -------- -------- ---------- ----------- Wholly Owned: Square Feet Expiring 1,887 1,464 20,508 35,571 84,505 - 2,916 - 64,371 - 211,222(1) % of Leased Space 1% 1% 10% 17% 40% 0% 1% 0% 30% 0% 100% Annual Contractual Rent (000's) (2) $ 39 $ 30 $ 438 $ 806 $ 1,773 $ - $ 67 $ - $ 1,473 $ - $ 4,626 Annual Contractual Rent/Sq. Ft. (2) $ 20.50 $ 20.22 $ 21.35 $ 22.67 $ 20.98 $ - $ 23.10 $ - $ 22.88 $ - $ 21.90 Joint Venture: Square Feet Expiring 3,445 - 68,996 1,178 35,041 7,175 14,735 82,677 25,416 181,920 420,583(3) % of Leased Space 1% 0% 16% 0% 8% 2% 4% 20% 6% 43% 100% Annual Contractual Rent (000's) (2) $ 56 $ - $ 1,263 $ 24 $ 767 $ 155 $ 359 $ 1,708 $ 545 $ 4,484 $ 9,361 Annual Contractual Rent/Sq. Ft. (2) $ 16.40 $ - $ 18.31 $ 20.01 $ 21.88 $ 21.59 $ 24.37 $ 20.66 $ 21.42 $ 24.65 $ 22.25 Total (including only Company's % share of Joint Venture Properties): Square Feet Expiring 2,283 1,464 45,475 36,160 102,026 3,588 10,284 25,745 77,079 90,960 395,064 % of Leased Space 1% 0% 12% 9% 26% 1% 3% 7% 20% 21% 100% Annual Contractual Rent (000's) (2) $ 45 $ 30 $ 910 $ 818 $ 2,156 $ 77 $ 247 $ 557 $ 1,745 $ 2,242 $ 8,827 Annual Contractual Rent/Sq. Ft. (2) $ 19.79 $ 20.22 $ 20.01 $ 22.63 $ 21.13 $ 21.59 $ 24.01 $ 21.62 $ 22.64 $ 24.65 $ 22.34
(1) Rentable square feet leased as of December 31, 2004 out of approximately 211,000 total rentable square feet. (2) Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable. If the lease does not provide for pass through of such operating expense reimbursements, an estimate of operating expenses is deducted from the rental rate shown. The contractual rental rate shown is the estimated rate in the year of expiration. (3) Rentable square feet leased as of December 31, 2004 out of approximately 427,000 total rentable square feet. Page 2 of 3 COUSINS PROPERTIES INCORPORATED SQUARE FEET EXPIRING AS OF DECEMBER 31, 2004 RETAIL As of December 31, 2004, the Company's retail portfolio included nine retail properties, excluding all properties currently under construction and/or in lease-up. The weighted average remaining lease term of these retail properties was approximately eight years as of December 31, 2004. 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:
2014 & RETAIL 2005 2006 2007 2008 2009 2010 2011 2012 2013 THEREAFTER TOTAL - ------ ---- ---- ---- ---- ---- ---- ---- ---- ---- ---------- ----- Wholly Owned: Square Feet Expiring 55,432 67,925 16,068 11,796 32,431 119,487 35,461 18,004 99,313 277,324 733,241(1) % of Leased Space 8% 9% 2% 2% 4% 16% 5% 2% 14% 38% 100% Annual Contractual Rent (000's) (2) $ 1,450 $ 1,684 $ 217 $ 349 $ 976 $ 2,985 $ 634 $ 564 $ 2,727 $ 5,882 $ 17,468 Annual Contractual Rent/Sq. Ft. (2) $ 26.15 $ 24.79 $ 13.49 $ 29.56 $ 30.11 $ 24.98 $ 17.89 $ 31.35 $ 27.46 $ 21.21 $ 23.82 Joint Venture: Square Feet Expiring 54,189 162,790 81,560 55,721 58,379 105,451 141,969 235,511 51,751 314,109 1,261,430(3) % of Leased Space 4% 13% 6% 4% 5% 8% 11% 19% 4% 26% 100% Annual Contractual Rent (000's) (2) $ 809 $ 2,167 $ 1,751 $ 1,106 $ 1,083 $ 1,231 $ 2,203 $ 3,735 $ 1,084 $ 5,109 $ 20,278 Annual Contractual Rent/Sq. Ft. (2) $ 14.93 $ 13.31 $ 21.47 $ 19.84 $ 18.56 $ 11.67 $ 15.52 $ 15.86 $ 20.95 $ 16.26 $ 16.08 Total (including only Company's % share of Joint Venture Properties): Square Feet Expiring 63,779 106,875 49,749 52,855 46,204 134,403 59,815 77,382 120,569 317,639 1,029,270 % of Leased Space 6% 10% 5% 5% 4% 13% 6% 8% 12% 31% 100% Annual Contractual Rent (000's) (2) $ 1,593 $ 2,413 $ 988 $ 1,176 $ 1,293 $ 3,176 $ 1,123 $ 1,730 $ 3,191 $ 6,524 $ 23,207 Annual Contractual Rent/Sq. Ft. (2) $ 24.97 $ 22.58 $ 19.85 $ 22.25 $ 28.00 $ 23.63 $ 18.77 $ 22.36 $ 26.46 $ 20.54 $ 22.55
(1) Gross leasable area leased as of December 31, 2004 out of approximately 809,000 total gross leasable area. (2) Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable and any percentage rents due. If the lease does not provide for pass through of such operating expense reimbursements, an estimate of operating expenses is deducted from the rental rate shown. The contractual rental rate shown is the estimated rate in the year of expiration. (3) Gross leasable area leased as of December 31, 2004 out of approximately 1,286,000 total gross leasable area. Page 3 of 3 COUSINS PROPERTIES INCORPORATED SUMMARY OF GAINS ON SALES OF INVESTMENT PROPERTIES (1) FOR THE YEAR ENDED DECEMBER 31, 2004 ($ in thousands)
DISCONTINUED OPERATIONS -------------------------------------------------------------------------------------------- RETAIL OFFICE OFFICE OFFICE RETAIL ----------- ----------- ------------ ----------- ----------- THE SHOPS OF TOTAL ROCKY 55 SECOND 101 SECOND LAKE DISCONTINUED CREEK STREET STREET NSA I & II TUSCALOOSA OTHER OPERATIONS ----------- ----------- ----------- ----------- ------------ ----------- ------------- SQUARE FOOTAGE Total square footage - 379,000 387,000 301,000 62,000 - 1,129,000 Company share of square footage - 379,000 387,000 301,000 62,000 - 1,129,000 ----------- ----------- ----------- ----------- ----------- ----------- ----------- VALUE CREATION & GAAP GAIN: Sales price $ 650 $ 146,400 $ 140,600 $ 41,400 $ 9,930 $ - $ 338,980 Adjustment to sales price (3) - - - 605 - - 605 Cost of property and closing costs (147) (125,640) (95,880) (36,645) (7,628) 40 (265,900) Recognition of deferred gain (4) (5) - - - - - - - Minority interest - (7,450) (10,723) - - - (18,173) ----------- ----------- ----------- ----------- ----------- ----------- ----------- VALUE CREATION 503 13,310 33,997 5,360 2,302 40 55,512 Recognition of deferred gain (6) - - - - - - - Straight-line rent receivable - (74) (3,438) (150) - - (3,662) Accumulated depreciation 145 8,395 14,931 7,354 204 - 31,029 Impairment loss - - - - - - - Provision for income taxes - - - - (952) - (952) ----------- ----------- ----------- ----------- ----------- ----------- ----------- GAIN ON SALE OF INVESTMENT PROPERTIES, NET (7) $ 648 $ 21,631 $ 45,490 $ 12,564 $ 1,554 $ 40 $ 81,927 =========== =========== =========== =========== =========== =========== =========== ESTIMATED TAX GAIN: Sales price $ 650 $ 146,400 $ 140,600 $ 41,400 $ 9,930 $ - $ 338,980 Adjustment to sales price (3) - - - 200 - - 200 Cost of property and closing costs (35) (106,990) (95,705) (36,379) (7,173) - (246,282) Accumulated depreciation & amortization of leasing costs - 8,256 16,712 6,527 156 - 31,651 Additional capitalized interest write-off at NBV - (7,854) (3,787) - - - (11,641) Elimination:intercompany loss b/t CPI and CREC (Wildwood) - - - - - - - Built-in gain (CPI) - - - - - - - Minority interest - (7,451) (9,222) - - - (16,673) ----------- ----------- ----------- ----------- ----------- ----------- ----------- COUSINS PROPERTIES (REIT) TAX GAIN $ 615 $ 32,361 $ 48,598 $ 11,748 $ 2,913 $ - $ 96,235 =========== =========== =========== =========== =========== =========== =========== CONTINUING OPERATIONS (2) ------------------------------------------------------------------------ OFFICE OFFICE ---------------- ----------- 333 JOHN 101 UNDEPRECIATED TOTAL CARLYLE/ INDEPENDENCE INVESTMENT CONTINUING 1900 DUKE STREET CENTER PROPERTIES OTHER OPERATIONS ---------------- ------------ ------------- ----------- ----------- SQUARE FOOTAGE Total square footage 250,000 526,000 - - 776,000 Company share of square footage 250,000 526,000 - - 776,000 ----------- ----------- ----------- ----------- ----------- VALUE CREATION & GAAP GAIN: Sales price $ 80,000 $ 100,000 $ 23,701 $ - $ 203,701 Adjustment to sales price (3) - - - - - Cost of property and closing costs (53,949) (85,591) (8,323) - (147,863) Recognition of deferred gain (4) (5) - - - - - Minority interest - - - - - ----------- ----------- ----------- ----------- ----------- VALUE CREATION 26,051 14,409 15,378 - 55,838 Recognition of deferred gain (6) - - 14,647 359 15,006 Straight-line rent receivable (154) (1,916) - - (2,070) Accumulated depreciation 8,610 23,317 - - 31,927 Impairment loss - - - - - Provision for income taxes - - (398) 611 213 ----------- ----------- ----------- ----------- ----------- GAIN ON SALE OF INVESTMENT PROPERTIES, NET (7) $ 34,507 $ 35,810 $ 29,627 $ 970 $ 100,914 =========== =========== =========== =========== =========== ESTIMATED TAX GAIN: Sales price $ 80,000 $ 100,000 $ 23,701 $ - $ 203,701 Adjustment to sales price (3) - - 237 - 237 Cost of property and closing costs (53,906) (72,730) (10,365) - (137,001) Accumulated depreciation & amortization of leasing costs 8,781 11,885 - - 20,666 Additional capitalized interest write-off at NBV - - - - - Elimination:intercompany loss b/t CPI and CREC (Wildwood) - - 966 - 966 Built-in gain (CPI) - - - - - Minority interest - - - - - ----------- ----------- ----------- ----------- ----------- COUSINS PROPERTIES (REIT) TAX GAIN $ 34,875 $ 39,155 $ 14,539 $ - $ 88,569 =========== =========== =========== =========== ===========
(CONTINUED ON FOLLOWING PAGE) Page 1 of 2 COUSINS PROPERTIES INCORPORATED SUMMARY OF GAINS ON SALES OF INVESTMENT PROPERTIES (1) FOR THE YEAR ENDED DECEMBER 31, 2004 ($ in thousands)
UNCONSOLIDATED JOINT VENTURES ----------------------------------------------------------------------------------- OFFICE OFFICE OFFICE OFFICE OFFICE ------------------ ------------ ----------- ------------------- ----------- 2500 WILDWOOD TWO LIVE OAK AUSTIN 2300 WINDY RIDGE 4100/4300 WILDWOOD & RESEARCH 3200 WILDWOOD PLAZA WACHOVIA (CONTINUED FROM PREVIOUS PAGE) 4200 WILDWOOD THE PINNACLE PARK GROUND LEASES TOWER ------------------ ------------ ----------- ------------------- ----------- SQUARE FOOTAGE Total square footage 825,000 702,000 358,000 1,333,000 324,000 Company share of square footage 412,500 351,000 179,000 666,500 37,260 ----------- ----------- ----------- ----------- ----------- VALUE CREATION & GAAP GAIN: Sales price $ 86,250 $ 100,000 $ 39,350 $ 123,750 $ 4,145 Adjustment to sales price (3) (5,791) - - 1,626 - Cost of property and closing costs (54,567) (74,353) (29,934) (110,040) (6,428) Recognition of deferred gain (4) (5) 5,353 - - 9,296 2,493 Minority interest - - - - - ----------- ----------- ----------- ----------- ----------- VALUE CREATION 31,245 25,647 9,416 24,632 210 Recognition of deferred gain (6) - - - - - Straight-line rent receivable (2,076) (347) - (970) (161) Accumulated depreciation 17,679 20,040 2,937 43,499 2,235 Impairment loss - - - - 209 Provision for income taxes - - - - - ----------- ----------- ----------- ----------- ----------- GAIN ON SALE OF INVESTMENT PROPERTIES, NET (7) $ 46,848 $ 45,340 $ 12,353 $ 67,161 $ 2,493 =========== =========== =========== =========== =========== ESTIMATED TAX GAIN: Sales price $ 86,250 $ 100,000 $ 39,350 $ 123,750 $ 4,145 Adjustment to sales price (3) (5,791) - - - - Cost of property and closing costs (45,775) (72,958) (30,101) (96,255) (3,491) Accumulated depreciation & amortization of leasing costs 19,448 18,351 4,906 51,822 933 Additional capitalized interest write-off at NBV - - (811) - - Elimination:intercompany loss b/t CPI and CREC (Wildwood) - - - - - Built-in gain (CPI) 6,455 - - 16,697 11,874 Minority interest - - - - - ----------- ----------- ----------- ----------- ----------- COUSINS PROPERTIES (REIT) TAX GAIN $ 60,587 $ 45,393 $ 13,344 $ 96,014 $ 13,461 =========== =========== =========== =========== =========== UNCONSOLIDATED JOINT VENTURES ----------------------------- OFFICE ----------- TOTAL TOTAL TOTAL JOHN UNCONSOLIDATED DISCONTINUED CONTINUING (CONTINUED FROM PREVIOUS PAGE) MARSHALL II JOINT VENTURES OPERATIONS OPERATIONS TOTAL ----------- -------------- ------------ ----------- ----------- SQUARE FOOTAGE Total square footage 224,000 3,766,000 1,129,000 776,000 5,671,000 Company share of square footage 112,000 1,758,260 1,129,000 776,000 3,663,260 ----------- ----------- ----------- ----------- ----------- VALUE CREATION & GAAP GAIN: Sales price $ 29,671 $ 383,166 $ 338,980 $ 203,701 $ 925,847 Adjustment to sales price (3) 1,329 (2,836) 605 - (2,231) Cost of property and closing costs (16,303) (291,625) (265,900) (147,863) (705,388) Recognition of deferred gain (4) (5) - 17,142 - - 17,142 Minority interest - - (18,173) - (18,173) ----------- ----------- ----------- ----------- ----------- VALUE CREATION 14,697 105,847 55,512 55,838 217,197 Recognition of deferred gain (6) - - - 15,006 15,006 Straight-line rent receivable (380) (3,934) (3,662) (2,070) (9,666) Accumulated depreciation 4,895 91,285 31,029 31,927 154,241 Impairment loss - 209 - - 209 Provision for income taxes - - (952) 213 (739) ----------- ----------- ----------- ----------- ----------- GAIN ON SALE OF INVESTMENT PROPERTIES, NET (7) $ 19,212 $ 193,407 $ 81,927 $ 100,914 $ 376,248 =========== =========== =========== =========== =========== ESTIMATED TAX GAIN: Sales price $ 29,671 $ 383,166 $ 338,980 $ 203,701 $ 925,847 Adjustment to sales price (3) - (5,791) 200 237 (5,354) Cost of property and closing costs (15,321) (263,901) (246,282) (137,001) (647,184) Accumulated depreciation & amortization of leasing costs 3,415 98,875 31,651 20,666 151,192 Additional capitalized interest write-off at NBV (162) (973) (11,641) - (12,614) Elimination:intercompany loss b/t CPI and CREC (Wildwood) - - - 966 966 Built-in gain (CPI) - 35,026 - - 35,026 Minority interest - - (16,673) - (16,673) ----------- ----------- ----------- ----------- ----------- COUSINS PROPERTIES (REIT) TAX GAIN $ 17,603 $ 246,402 $ 96,235 $ 88,569 $ 431,206 =========== =========== =========== =========== ===========
(1) Includes Cousins' share of gains on sales of investment properties from unconsolidated joint ventures. (2) Continuing operations includes sold properties for which the Company retained management. (3) Adjustment to sales price represents mark-to-market adjustments on sold properties with above or below market debt. (4) Deferred gain includes one-half of a $29.3 million gain on sale of Wildwood land associated with Wildwood office properties. This land was originally contributed upon formation of Wildwood Associates. The other half of this gain was attributable to land and is included in gain on sale of undepreciated investment properties. (5) Included in deferred gain is a $2.5 million gain recognized upon sale of Wachovia Tower that was deferred upon contribution of properties to CP Venture entities in 1998. (6) Deferred gain includes one-half of the $29.3 million gain on sale of Wildwood land mentioned in Note 4 above and recognition of deferred gain of $0.3 million on contribution of properties to CP Venture entities in 1998. See Note 5 to "Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2003. (7) See page 5 of the "Net Income and Funds From Operations - Supplemental Detail" schedule included in the Quarterly Information Package for a reconciliation to the Consolidated Statements of Income. Total for Unconsolidated Joint Ventures differs by the deferred gain recognized on the Wildwood Associates and Wachovia Tower sales. This amount is recorded in Gain on Sale of Investment Properties in the Consolidated Statements of Income. Page 2 of 2 COUSINS PROPERTIES INCORPORATED SUMMARY OF 2004 ASSET SALES (1) AS OF DECEMBER 31, 2004
RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES (2) -------------------------------------------------------------------------------------------------- Ownership Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Properties Percentage 2003 2003 2003 2004 2004 2004 ---------- -------------------------------------------------------------------------------------------------- 333 John Carlyle/1900 Duke Street 100% $ 2,223 $ 1,517 $ 1,566 $ 1,598 $ - $ - 101 Independence Center 100% - 2,280 2,267 2,275 2,351 - The Pinnacle and Two Live Oak Center 50% - 1,697 1,716 1,742 1,772 - Austin Research Park 50% - 857 861 857 878 - 2500 Windy Ridge Parkway 50% - 579 571 535 592 - 4100/4300 Wildwood Parkway 50% - 483 481 480 482 - 4200 Wildwood Parkway 50% - 597 598 597 597 - 101 Second Street 100% - 3,585 2,337 2,320 2,322 - 55 Second Street 100% - 1,558 1,626 1,652 1,950 - 2300 Windy Ridge Parkway 50% - - 1,079 1,099 1,127 1,134 3200 Windy Hill Road 50% - - 2,239 1,285 1,424 1,470 Wildwood Ground leases 50% - - 159 163 169 161 John Marshall-II 50% - - 455 494 447 490 Northside/Alpharetta I and II 100% - - 908 965 1,003 1,068 Wachovia Tower 11.5% - - 83 83 83 78 The Shops of Lake Tuscaloosa (4) 100% - - 18 131 145 151 ------------------------------------------------------------------------------------- $ 2,223 $ 13,153 $ 16,964 $ 16,276 $ 15,342 $ 4,552 ===================================================================================== ADJUSTMENTS ------------------------ Contract Trailing NOI/ Termination Straight Trailing Sales Contract Properties Fees Line NOI (3) Price Sales Price ---------- -------------------------------------------------------------------------- 333 John Carlyle/1900 Duke Street $ 611 $ 143 $ 6,150 $ 80,000 7.69% 101 Independence Center - (36) 9,209 100,000 9.21% The Pinnacle and Two Live Oak Center 63 (65) 6,929 100,000 6.93% Austin Research Park - - 3,453 39,350 8.78% 2500 Windy Ridge Parkway 62 231 1,984 29,000 6.84% 4100/4300 Wildwood Parkway - - 1,926 25,375 7.59% 4200 Wildwood Parkway - 170 2,219 31,875 6.96% 101 Second Street 1,159 82 9,323 140,600 6.63% 55 Second Street - 67 6,719 146,400 4.59% 2300 Windy Ridge Parkway - (29) 4,468 52,000 8.59% 3200 Windy Hill Road 1,056 496 4,866 62,500 7.79% Wildwood Ground leases - 22 630 9,250 6.81% John Marshall-II - 48 1,838 29,671 6.19% Northside/Alpharetta I and II 44 9 3,891 41,400 9.40% Wachovia Tower - (3) 330 4,145 7.96% The Shops of Lake Tuscaloosa (4) - - 596 9,930 6.00% ------------------------------------------------------------------------ $ 2,995 $ 1,135 $ 64,531 $ 901,496 7.16% =======================================================================
(1) Amounts above reflect the Company's share of operations, adjustments and sales prices. (2) See definition contained in Discussion of Non-GAAP Financial Measures. See reconciliations to Net Income contained in the Net Income and Funds From Operations Supplemental Detail schedule. (3) Trailing NOI is calculated as Rental Property Revenues less Operating Expenses adjusted for termination fees and straight line rental revenue for the four quarters immediately preceding the asset sale. (4) This property was partially operational in the fourth quarter of 2003. As a result, trailing NOI was calculated by adding the three quarters immediately preceding the asset sale and including another quarter equal to the most recent quarter preceding the asset sale. COUSINS PROPERTIES INCORPORATED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES ($ in thousands)
RECONCILIATIONS 2000 2001 2002 2003 1ST 2003 2ND 2003 3RD --------------- ------------------------------------------------------- (A) 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX: PROPERTY ACQUISITION AND DEVELOPMENT EXPENDITURES PER CASH FLOWS FROM INVESTING ACTIVITIES 215,958 140,346 88,127 22,498 20,493 25,856 ADDITIONS TO PROJECTS UNDER CONSTRUCTION, NET (50,784) (74,539) (58,504) (18,061) (16,490) (21,514) ADDITIONS TO LAND HELD FOR INVESTMENT OR FUTURE DEVELOPMENT (3,376) (18,288) (2,899) (21) (23) (7) ADDITIONS TO RESIDENTIAL LOTS UNDER DEVELOPMENT (6,688) (13,964) (12,000) (1,881) (2,681) (4,317) PROPERTY ACQUISITIONS (61,200) 0 0 0 0 0 1ST GENERATION TI & LEASING FEES (89,849) (22,080) (4,722) (201) (326) 2,058 FURNITURE & FIXTURES (688) (6,916) (2,002) (377) (508) (312) ------------------------------------------------------- CONSOLIDATED SECOND GENERATION RELATED COSTS 3,373 4,559 8,000 1,957 465 1,764 SHARE OF JOINT VENTURE 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX 1,437 1,514 4,988 2,401 1,451 560 ------------------------------------------------------- 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX 4,810 6,073 12,988 4,358 1,916 2,324 ======================================================= TOTAL BY TYPE: SECOND GENERATION LEASING RELATED COSTS 3,876 3,582 11,804 4,287 1,762 2,328 SECOND GENERATION BUILDING IMPROVEMENTS 934 2,491 1,184 71 154 (4) ------------------------------------------------------- 4,810 6,073 12,988 4,358 1,916 2,324 ======================================================= TOTAL BY SEGMENT: OFFICE: SECOND GENERATION LEASING RELATED COSTS 3,239 3,292 11,348 3,873 1,728 1,978 SECOND GENERATION BUILDING IMPROVEMENTS 907 2,484 888 22 116 (18) ------------------------------------------------------- 4,146 5,776 12,236 3,895 1,844 1,960 ------------------------------------------------------- RETAIL: SECOND GENERATION LEASING RELATED COSTS 637 290 456 414 35 351 SECOND GENERATION BUILDING IMPROVEMENTS 27 7 296 49 37 13 ------------------------------------------------------- 664 297 752 463 72 364 ------------------------------------------------------- 4,810 6,073 12,988 4,358 1,916 2,324 ======================================================= (B) ADJUSTED DEBT: CONSOLIDATED DEBT 485,085 585,275 669,792 686,011 524,883 478,134 SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT 256,292 275,913 265,854 263,329 288,265 288,761 ------------------------------------------------------- TOTAL DEBT INCLUDING SHARE OF JV'S 741,377 861,188 935,646 949,340 813,148 766,895 SHARE OF CHARLOTTE GATEWAY VILLAGE DEBT (1) (70,309) (94,685) (90,766) (89,746) (88,711) (87,658) ------------------------------------------------------- ADJUSTED DEBT 671,068 766,503 844,880 859,595 724,437 679,237 ======================================================= RECOURSE DEBT 174,522 154,018 160,443 178,239 18,842 20,783 NON-RECOURSE DEBT 496,546 612,485 684,437 681,356 705,595 658,454 ------------------------------------------------------- ADJUSTED DEBT 671,068 766,503 844,880 859,595 724,437 679,237 ======================================================= RECONCILIATIONS 2003 4TH 2003 2004 1ST 2004 2ND 2004 3RD 2004 4TH 2004 --------------- --------------------------------------------------------------- (A) 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX: PROPERTY ACQUISITION AND DEVELOPMENT EXPENDITURES PER CASH FLOWS FROM INVESTING ACTIVITIES 40,911 109,758 38,613 54,499 44,937 35,124 173,173 ADDITIONS TO PROJECTS UNDER CONSTRUCTION, NET (30,366) (86,431) (22,687) (38,946) (25,544) (21,864) (109,041) ADDITIONS TO LAND HELD FOR INVESTMENT OR FUTURE DEVELOPMENT (2,691) (2,742) (2,515) (13,387) (371) (5,213) (21,486) ADDITIONS TO RESIDENTIAL LOTS UNDER DEVELOPMENT (2,185) (11,064) 0 0 0 0 0 PROPERTY ACQUISITIONS 0 0 (11,415) 0 0 0 (11,415) 1ST GENERATION TI & LEASING FEES (2,549) (1,018) (724) (936) (11,520) (3,335) (16,515) FURNITURE & FIXTURES (313) (1,510) (407) (578) (217) (1,793) (2,995) -------------------------------------------------------------- CONSOLIDATED SECOND GENERATION RELATED COSTS 2,807 6,993 865 652 7,285 2,919 11,721 SHARE OF JOINT VENTURE 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX 3,102 7,514 (126) 1,035 1,813 4,815 7,537 -------------------------------------------------------------- 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX 5,909 14,507 739 1,687 9,098 7,734 19,258 ============================================================== TOTAL BY TYPE: SECOND GENERATION LEASING RELATED COSTS 4,970 13,347 1,166 1,574 8,912 7,558 19,210 SECOND GENERATION BUILDING IMPROVEMENTS 939 1,160 (427) 113 186 176 48 -------------------------------------------------------------- 5,909 14,507 739 1,687 9,098 7,734 19,258 ============================================================== TOTAL BY SEGMENT: OFFICE: SECOND GENERATION LEASING RELATED COSTS 4,778 12,357 1,143 1,567 8,848 7,324 18,882 SECOND GENERATION BUILDING IMPROVEMENTS 818 938 (452) 113 176 133 (30) --------------------------------------------------------------- 5,596 13,295 691 1,680 9,024 7,457 18,852 --------------------------------------------------------------- RETAIL: SECOND GENERATION LEASING RELATED COSTS 192 992 23 7 64 234 328 SECOND GENERATION BUILDING IMPROVEMENTS 121 220 25 0 10 43 78 --------------------------------------------------------------- 313 1,212 48 7 74 277 406 --------------------------------------------------------------- 5,909 14,507 739 1,687 9,098 7,734 19,258 =============================================================== (B) ADJUSTED DEBT: CONSOLIDATED DEBT 497,981 497,981 533,082 495,268 313,208 302,286 302,286 SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT 285,657 285,657 294,090 291,663 200,584 135,764 135,764 --------------------------------------------------------------- TOTAL DEBT INCLUDING SHARE OF JV'S 783,638 783,638 827,172 786,931 513,792 438,050 438,050 SHARE OF CHARLOTTE GATEWAY VILLAGE DEBT (1) (86,588) (86,588) (85,542) (84,397) (83,275) (82,135) (82,135) --------------------------------------------------------------- ADJUSTED DEBT 697,050 697,050 741,630 702,534 430,517 355,915 355,915 =============================================================== RECOURSE DEBT 20,697 20,697 57,555 101,269 50,365 50,238 50,238 NON-RECOURSE DEBT 676,353 676,353 684,075 601,265 380,152 305,677 305,677 --------------------------------------------------------------- ADJUSTED DEBT 697,050 697,050 741,630 702,534 430,517 355,915 355,915 ===============================================================
(1) The Charlotte Gateway Village ("Gateway") debt is fully secured by the underlying property and non-recourse to the borrower and is fully amortized by rental payments under a long-term lease to Bank of America. The Gateway debt is also excluded from debt and coverage ratios for purposes of the bank covenants pertaining to the Company's credit facility. COUSINS PROPERTIES INCORPORATED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES ($ in thousands)
2003 2003 2003 2003 RECONCILIATIONS 2000 2001 2002 1ST 2ND 3RD 4TH --------------- ----------------------------------------------------------- (C) CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JOINT VENTURES): CONSOLIDATED INTEREST EXPENSE 7,680 17,852 27,041 7,217 6,363 4,583 4,413 DISCONTINUED OPERATIONS INTEREST EXPENSE 5,916 9,758 10,382 2,572 2,571 2,293 2,023 SHARE OF JOINT VENTURE INTEREST EXPENSE 14,311 13,936 13,208 3,211 3,405 3,585 3,538 ----------------------------------------------------------- CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV'S) 27,907 41,546 50,631 13,000 12,339 10,461 9,974 =========================================================== (D) FIXED CHARGES: CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JV'S) 27,907 41,546 50,631 13,000 12,339 10,461 9,974 PRINCIPAL PAYMENTS: CONSOLIDATED 4,734 5,721 7,632 1,606 1,720 1,736 1,800 SHARE OF JOINT VENTURES 4,252 4,696 6,140 1,506 1,528 1,641 1,670 GROUND LEASE PAYMENTS: CONSOLIDATED 147 613 839 214 208 83 82 SHARE OF JOINT VENTURES 12 12 12 3 3 3 3 ----------------------------------------------------------- TOTAL FIXED CHARGES (EXCLUDING PREFERRED DIVIDENDS) 37,052 52,588 65,254 16,329 15,798 13,924 13,529 PREFERRED STOCK DIVIDENDS 0 0 0 0 0 1,421 1,937 ----------------------------------------------------------- TOTAL FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) 37,052 52,588 65,254 16,329 15,798 15,345 15,466 =========================================================== (E) RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: RENTAL PROPERTY REVENUES 76,340 94,281 97,290 25,413 25,967 24,394 25,615 RENTAL PROPERTY OPERATING EXPENSES (23,744) (30,505) (30,613) (7,506) (8,082) (8,192) (8,894) ----------------------------------------------------------- RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 52,596 63,776 66,677 17,907 17,885 16,202 16,721 =========================================================== (F) INCOME FROM DISCONTINUED OPERATIONS: RENTAL PROPERTY REVENUES 37,646 51,188 71,382 35,600 13,937 10,304 7,621 RENTAL PROPERTY OPERATING EXPENSES (9,672) (13,480) (18,523) (4,501) (4,312) (3,268) (2,740) ----------------------------------------------------------- TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 27,974 37,708 52,859 31,099 9,625 7,036 4,881 INTEREST EXPENSE (5,916) (9,758) (10,382) (2,572) (2,571) (2,293) (2,023) MINORITY INTEREST EXPENSE (509) (2,063) (1,710) (229) (143) 0 (252) MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 0 0 0 PROVISION FOR INCOME TAXES (31) (136) (139) 0 0 0 0 ----------------------------------------------------------- FUNDS FROM OPERATIONS 21,518 25,751 40,628 28,298 6,911 4,743 2,606 DEPRECIATION AND AMORTIZATION OF REAL ESTATE (8,603) (11,862) (18,085) (5,726) (2,738) (3,897) (2,317) ----------------------------------------------------------- NET INCOME FROM DISCONTINUED OPERATIONS 12,915 13,889 22,543 22,572 4,173 846 289 =========================================================== 2004 2004 2004 2004 RECONCILIATIONS 2003 1ST 2ND 3RD 4TH 2004 --------------- -------------------------------------------------- (C) CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JOINT VENTURES): CONSOLIDATED INTEREST EXPENSE 22,576 4,719 4,444 2,753 2,707 14,623 DISCONTINUED OPERATIONS INTEREST EXPENSE 9,459 2,017 2,011 1,780 62 5,870 SHARE OF JOINT VENTURE INTEREST EXPENSE 13,739 3,519 3,660 2,989 995 11,163 -------------------------------------------------- CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV'S) 45,774 10,255 10,115 7,522 3,764 31,656 ================================================== (D) FIXED CHARGES: CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JV'S) 45,774 10,255 10,115 7,522 3,764 31,656 PRINCIPAL PAYMENTS: CONSOLIDATED 6,862 1,789 1,748 1,637 1,386 6,560 SHARE OF JOINT VENTURES 6,345 1,697 1,800 1,377 383 5,257 GROUND LEASE PAYMENTS: CONSOLIDATED 587 87 134 142 130 493 SHARE OF JOINT VENTURES 12 3 3 3 3 12 -------------------------------------------------- TOTAL FIXED CHARGES (excluding Preferred Dividends) 59,580 13,831 13,800 10,681 5,666 43,978 PREFERRED STOCK DIVIDENDS 3,358 1,938 1,937 1,937 2,230 8,042 -------------------------------------------------- TOTAL FIXED CHARGES (including Preferred Dividends) 62,938 15,769 15,737 12,618 7,896 52,020 ================================================== (E) RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES: RENTAL PROPERTY REVENUES 101,389 28,750 26,386 23,410 22,556 101,102 RENTAL PROPERTY OPERATING EXPENSES (32,674) (8,751) (8,456) (8,200) (8,407) (33,814) -------------------------------------------------- RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 68,715 19,999 17,930 15,210 14,149 67,288 ================================================== (F) INCOME FROM DISCONTINUED OPERATIONS: RENTAL PROPERTY REVENUES 67,462 7,949 7,699 7,466 574 23,688 RENTAL PROPERTY OPERATING EXPENSES (14,821) (2,858) (2,279) (2,602) (189) (7,928) -------------------------------------------------- TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES 52,641 5,091 5,420 4,864 385 15,760 INTEREST EXPENSE (9,459) (2,017) (2,011) (1,780) (62) (5,870) MINORITY INTEREST EXPENSE (624) 0 0 0 0 0 MARK-TO-MARKET DEBT ADJUSTMENT 0 0 0 0 (605) (605) PROVISION FOR INCOME TAXES 0 0 0 0 0 0 -------------------------------------------------- FUNDS FROM OPERATIONS 42,558 3,074 3,409 3,084 (282) 9,285 DEPRECIATION AND AMORTIZATION OF REAL ESTATE (14,678) (2,318) (1,879) (1,057) (44) (5,298) -------------------------------------------------- NET INCOME FROM DISCONTINUED OPERATIONS 27,880 756 1,530 2,027 (326) 3,987 ==================================================
COUSINS PROPERTIES INCORPORATED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES ($ in thousands)
2003 2003 2003 2003 RECONCILIATIONS 2000 2001 2002 1ST 2ND 3RD 4TH --------------- ----------------------------------------------------------- (G) SHARE OF INCOME FROM UNCONSOLIDATED JOINT VENTURES: RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES, NET OF CONSOLIDATING ENTRY 46,600 51,422 56,435 13,742 14,570 14,403 14,504 INTEREST EXPENSE (14,311) (13,936) (13,208) (3,211) (3,405) (3,585) (3,538) LOSS ON EXTINGUISHMENT OF DEBT 0 0 0 0 0 0 0 OTHER, NET 2,258 144 43 444 (38) (45) (131) DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (231) (53) (9) (8) (9) (9) (8) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY - JOINT VENTURE 0 0 0 (551) 0 0 (985) ----------------------------------------------------------- FUNDS FROM OPERATIONS, EXCLUDING RESIDENTIAL LOT AND TRACT SALES, NET OF COS 34,316 37,577 43,261 10,416 11,118 10,764 9,842 RESIDENTIAL LOT AND TRACT FFO 678 1,720 1,949 513 1,225 818 1,188 ----------------------------------------------------------- FUNDS FROM OPERATIONS 34,994 39,297 45,210 10,929 12,343 11,582 11,030 DEPRECIATION & AMORTIZATION OF REAL ESTATE (15,542) (16,400) (18,540) (4,432) (4,680) (4,650) (7,503) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 0 0 0 0 ----------------------------------------------------------- NET INCOME (INCOME FROM UNCONSOLIDATED JOINT VENTURES) 19,452 22,897 26,670 6,497 7,663 6,932 3,527 =========================================================== (H) CONSOLIDATED RESIDENTIAL AND OUTPARCEL SALES AND COST OF SALES: RESIDENTIAL LOT AND OUTPARCEL SALES - WHOLLY OWNED: TRACT SALES 0 0 547 0 0 600 0 LOT SALES 13,951 6,682 8,579 3,928 1,612 2,233 4,572 ----------------------------------------------------------- TOTAL RESIDENTIAL AND OUTPARCEL SALES 13,951 6,682 9,126 3,928 1,612 2,833 4,572 ----------------------------------------------------------- RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - WHOLLY-OWNED: TRACT COST OF SALES 0 0 352 0 0 480 0 LOT COST OF SALES 11,684 5,910 6,957 3,231 1,368 1,366 3,577 ----------------------------------------------------------- TOTAL RESIDENTIAL AND OUTPARCEL COST OF SALES 11,684 5,910 7,309 3,231 1,368 1,846 3,577 ----------------------------------------------------------- TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES 564 2,011 2,143 0 0 1,947 5,323 ----------------------------------------------------------- RESIDENTIAL LOT AND OUTPARCEL SALES, NET -WHOLLY OWNED 2,831 2,783 3,960 697 244 2,934 6,318 =========================================================== SUMMARY: TRACT SALES NET OF COS - WHOLLY OWNED 564 2,011 2,338 0 0 2,067 5,323 LOT SALES NET OF COS - WHOLLY OWNED 2,267 772 1,622 697 244 867 995 ----------------------------------------------------------- TOTAL WHOLLY OWNED SALES, NET 2,831 2,783 3,960 697 244 2,934 6,318 ----------------------------------------------------------- SHARE OF UNCONSOLIDATED JOINT VENTURES: TRACT SALES LESS COST OF SALES 773 1,098 671 0 430 42 0 LOT SALES LESS COST OF SALES 0 645 1,281 544 822 822 1,240 INTEREST EXPENSE 0 0 0 0 0 0 0 OTHER - JOINT VENTURE (95) (23) (3) (31) (27) (46) (52) ----------------------------------------------------------- TRACT AND LOT SALES, NET - SHARE OF JOINT VENTURES 678 1,720 1,949 513 1,225 818 1,188 ----------------------------------------------------------- TOTAL RESIDENTIAL LOT/TRACT FFO 3,509 4,503 5,909 1,210 1,469 3,752 7,506 =========================================================== 2004 2004 2004 2004 RECONCILIATIONS 2003 1ST 2ND 3RD 4TH 2004 --------------- -------------------------------------------------- (G) SHARE OF INCOME FROM UNCONSOLIDATED JOINT VENTURES: RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES, NET OF CONSOLIDATING ENTRY 57,219 13,760 16,252 12,227 6,770 49,009 INTEREST EXPENSE (13,739) (3,499) (3,623) (2,950) (956) (11,028) LOSS ON EXTINGUISHMENT OF DEBT 0 0 0 0 (3,250) (3,250) OTHER, NET 230 873 (21) (55) (6) 791 DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS (34) (10) (8) (11) (6) (35) IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY - JOINT VENTURE (1,536) 0 0 0 (209) (209) --------------------------------------------------- FUNDS FROM OPERATIONS, EXCLUDING RESIDENTIAL LOT AND TRACT SALES, NET OF COS 42,140 11,124 12,600 9,211 2,343 35,278 RESIDENTIAL LOT AND TRACT FFO 3,744 2,657 1,425 1,866 2,882 8,830 --------------------------------------------------- FUNDS FROM OPERATIONS 45,884 13,781 14,025 11,077 5,225 44,108 DEPRECIATION & AMORTIZATION OF REAL ESTATE (21,265) (4,725) (4,829) (3,701) (2,625) (15,880) GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET 0 0 0 99,300 76,965 176,265 ------------------------------------------------- NET INCOME (INCOME FROM UNCONSOLIDATED JOINT VENTURES) 24,619 9,056 9,196 106,676 79,565 204,493 ================================================= (H) CONSOLIDATED RESIDENTIAL AND OUTPARCEL SALES AND COST OF SALES: RESIDENTIAL LOT AND OUTPARCEL SALES - WHOLLY OWNED: TRACT SALES 600 0 0 0 0 0 LOT SALES 12,345 3,888 4,366 3,341 5,105 16,700 ------------------------------------------------- TOTAL RESIDENTIAL AND OUTPARCEL SALES 12,945 3,888 4,366 3,341 5,105 16,700 ------------------------------------------------- RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - WHOLLY-OWNED: TRACT COST OF SALES 480 0 0 0 0 0 LOT COST OF SALES 9,542 2,490 3,178 2,219 4,120 12,007 ------------------------------------------------- TOTAL RESIDENTIAL AND OUTPARCEL COST OF SALES 10,022 2,490 3,178 2,219 4,120 12,007 ------------------------------------------------- TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES 7,270 1,967 1,267 8,836 17,557 29,627 ------------------------------------------------- RESIDENTIAL LOT AND OUTPARCEL SALES, NET -WHOLLY OWNED 10,193 3,365 2,455 9,958 18,542 34,320 ================================================= SUMMARY: TRACT SALES NET OF COS - WHOLLY OWNED 7,390 1,967 1,267 8,836 17,557 29,627 LOT SALES NET OF COS - WHOLLY OWNED 2,803 1,398 1,188 1,122 985 4,693 ------------------------------------------------- TOTAL WHOLLY OWNED SALES, NET 10,193 3,365 2,455 9,958 18,542 34,320 ------------------------------------------------- SHARE OF UNCONSOLIDATED JOINT VENTURES: TRACT SALES LESS COST OF SALES 472 991 80 937 227 2,235 LOT SALES LESS COST OF SALES 3,428 1,724 1,389 1,011 2,826 6,950 INTEREST EXPENSE 0 (20) (37) (39) (39) (135) OTHER - JOINT VENTURE (156) (38) (7) (43) (132) (220) ------------------------------------------------- TRACT AND LOT SALES, NET - SHARE OF JOINT VENTURES 3,744 2,657 1,425 1,866 2,882 8,830 ------------------------------------------------- TOTAL RESIDENTIAL LOT/TRACT FFO 13,937 6,022 3,880 11,824 21,424 43,150 =================================================
COUSINS PROPERTIES INCORPORATED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES ($ in thousands)
2003 2003 2003 2003 RECONCILIATIONS 2000 2001 2002 1ST 2ND 3RD 4TH --------------- ----------------------------------------------------------- (I) DEPRECIATION AND AMORTIZATION: REAL ESTATE RELATED: CONSOLIDATED 23,083 30,624 34,154 9,779 10,078 8,330 8,779 DISCONTINUED OPERATIONS 8,603 11,862 18,085 5,726 2,738 3,897 2,317 ----------------------------------------------------------- 31,686 42,486 52,239 15,505 12,816 12,227 11,096 SHARE OF JOINT VENTURES 15,542 16,400 18,540 4,432 4,680 4,650 7,503 ----------------------------------------------------------- TOTAL REAL ESTATE RELATED 47,228 58,886 70,779 19,937 17,496 16,877 18,599 ----------------------------------------------------------- NON-REAL ESTATE RELATED: CONSOLIDATED 1,099 2,166 2,148 571 602 668 670 DISCONTINUED OPERATIONS 0 0 0 0 0 0 0 ----------------------------------------------------------- 1,099 2,166 2,148 571 602 668 670 SHARE OF JOINT VENTURES 231 53 9 8 9 9 8 ----------------------------------------------------------- TOTAL NON-REAL ESTATE RELATED 1,330 2,219 2,157 579 611 677 678 ----------------------------------------------------------- TOTAL DEPRECIATION AND AMORTIZATION 48,558 61,105 72,936 20,516 18,107 17,554 19,277 =========================================================== SUMMARY: CONSOLIDATED 24,182 32,790 36,302 10,350 10,680 8,998 9,449 DISCONTINUED OPERATIONS 8,603 11,862 18,085 5,726 2,738 3,897 2,317 ----------------------------------------------------------- 32,785 44,652 54,387 16,076 13,418 12,895 11,766 SHARE OF JOINT VENTURES 15,773 16,453 18,549 4,440 4,689 4,659 7,511 ----------------------------------------------------------- TOTAL DEPRECIATION AND AMORTIZATION 48,558 61,105 72,936 20,516 18,107 17,554 19,277 MINORITY INTEREST'S SHARE OF DEPRECIATION AND AMORTIZATION (1,164) (95) 0 0 0 0 0 ----------------------------------------------------------- TOTAL DEPRECIATION & AMORTIZATION, NET OF MINORITY INTERESTS' SHARE 47,394 61,010 72,936 20,516 18,107 17,554 19,277 =========================================================== SUMMARY BY TYPE: REAL ESTATE RELATED: BUILDING (INCLUDING TENANT FIRST GENERATION): CONSOLIDATED 30,402 38,522 49,913 14,904 12,190 11,633 9,900 SHARE OF JOINT VENTURES 14,825 15,656 17,762 4,182 4,230 4,232 7,065 ----------------------------------------------------------- 45,227 54,178 67,675 19,086 16,420 15,865 16,965 ----------------------------------------------------------- TENANT SECOND GENERATION: CONSOLIDATED 1,284 3,964 2,326 601 626 594 1,196 SHARE OF JOINT VENTURES 717 744 778 250 450 418 438 ----------------------------------------------------------- 2,001 4,708 3,104 851 1,076 1,012 1,634 ----------------------------------------------------------- TOTAL REAL ESTATE RELATED 47,228 58,886 70,779 19,937 17,496 16,877 18,599 ----------------------------------------------------------- NON-REAL ESTATE RELATED: FURNITURE, FIXTURES AND EQUIPMENT: CONSOLIDATED 799 1,485 2,122 565 596 661 663 SHARE OF JOINT VENTURES 231 53 9 8 9 9 8 ----------------------------------------------------------- 1,030 1,538 2,131 573 605 670 671 ----------------------------------------------------------- GOODWILL & SPECIFICALLY IDENTIFIABLE INTANGIBLE ASSETS CONSOLIDATED 300 681 26 6 6 7 7 SHARE OF JOINT VENTURES 0 0 0 0 0 0 0 ----------------------------------------------------------- 300 681 26 6 6 7 7 ----------------------------------------------------------- TOTAL NON-REAL ESTATE RELATED 1,330 2,219 2,157 579 611 677 678 ----------------------------------------------------------- TOTAL DEPRECIATION & AMORTIZATION 48,558 61,105 72,936 20,516 18,107 17,554 19,277 =========================================================== 2004 2004 2004 2004 RECONCILIATIONS 2003 1ST 2ND 3RD 4TH 2004 --------------- -------------------------------------------------- (I) DEPRECIATION AND AMORTIZATION: REAL ESTATE RELATED: CONSOLIDATED 36,966 9,857 8,084 7,676 8,962 34,579 DISCONTINUED OPERATIONS 14,678 2,318 1,879 1,057 44 5,298 ------------------------------------------------- 51,644 12,175 9,963 8,733 9,006 39,877 SHARE OF JOINT VENTURES 21,265 4,725 4,829 3,701 2,625 15,880 ------------------------------------------------- TOTAL REAL ESTATE RELATED 72,909 16,900 14,792 12,434 11,631 55,757 ------------------------------------------------- NON-REAL ESTATE RELATED: CONSOLIDATED 2,511 635 700 659 658 2,652 DISCONTINUED OPERATIONS 0 0 0 0 0 0 ------------------------------------------------- 2,511 635 700 659 658 2,652 SHARE OF JOINT VENTURES 34 10 8 11 6 35 ------------------------------------------------- TOTAL NON-REAL ESTATE RELATED 2,545 645 708 670 664 2,687 ------------------------------------------------- TOTAL DEPRECIATION AND AMORTIZATION 75,454 17,545 15,500 13,104 12,295 58,444 ================================================= SUMMARY: CONSOLIDATED 39,477 10,492 8,784 8,335 9,620 37,231 DISCONTINUED OPERATIONS 14,678 2,318 1,879 1,057 44 5,298 ------------------------------------------------- 54,155 12,810 10,663 9,392 9,664 42,529 SHARE OF JOINT VENTURES 21,299 4,735 4,837 3,712 2,631 15,915 ------------------------------------------------- TOTAL DEPRECIATION AND AMORTIZATION 75,454 17,545 15,500 13,104 12,295 58,444 MINORITY INTEREST'S SHARE OF DEPRECIATION AND AMORTIZATION 0 0 0 0 0 0 ------------------------------------------------- TOTAL DEPRECIATION & AMORTIZATION, NET OF MINORITY INTERESTS' SHARE 75,454 17,545 15,500 13,104 12,295 58,444 ================================================= SUMMARY BY TYPE: REAL ESTATE RELATED: BUILDING (INCLUDING TENANT FIRST GENERATION): CONSOLIDATED 48,627 11,568 9,217 8,107 8,349 37,241 SHARE OF JOINT VENTURES 19,709 4,152 4,214 2,911 2,352 13,629 ------------------------------------------------- 68,336 15,720 13,431 11,018 10,701 50,870 ------------------------------------------------- TENANT SECOND GENERATION: CONSOLIDATED 3,017 607 746 626 657 2,636 SHARE OF JOINT VENTURES 1,556 573 615 790 273 2,251 ------------------------------------------------- 4,573 1,180 1,361 1,416 930 4,887 ------------------------------------------------- TOTAL REAL ESTATE RELATED 72,909 16,900 14,792 12,434 11,631 55,757 ------------------------------------------------- NON-REAL ESTATE RELATED: FURNITURE, FIXTURES AND EQUIPMENT: CONSOLIDATED 2,485 643 695 655 654 2,647 SHARE OF JOINT VENTURES 34 10 8 11 6 35 ------------------------------------------------- 2,519 653 703 666 660 2,682 ------------------------------------------------- GOODWILL & SPECIFICALLY IDENTIFIABLE INTANGIBLE ASSETS CONSOLIDATED 26 (8) 5 4 4 5 SHARE OF JOINT VENTURES 0 0 0 0 0 0 ------------------------------------------------- 26 (8) 5 4 4 5 ------------------------------------------------- TOTAL NON-REAL ESTATE RELATED 2,545 645 708 670 664 2,687 ------------------------------------------------- TOTAL DEPRECIATION & AMORTIZATION 75,454 17,545 15,500 13,104 12,295 58,444 =================================================
COUSINS PROPERTIES INCORPORATED DISCUSSION OF NON-GAAP FINANCIAL MEASURES The Company uses non-GAAP financial measures in its filings and other public disclosures. These non-GAAP financial measures are defined below. For oral presentations, reconciliations to the most directly comparable GAAP measure may be accessed through the "Quarterly Disclosures" link and the "Supplemental SEC Information" link on the Investor Relations page of the Company's Web site, www.cousinsproperties.com. 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. "2ND 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 historical 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. "ADJUSTED DEBT" is defined as the Company's debt and the Company's pro rata share of unconsolidated joint venture debt, excluding debt related to Charlotte Gateway Village, L.L.C. ("Gateway"). The Company excludes Gateway debt as it is fully secured by the underlying property and non-recourse to the borrower and is fully amortized by rental payments under a long-term lease to Bank of America. The Gateway debt is also excluded from debt and coverage ratios for purposes of the bank covenants pertaining to the Company's credit facility. This measure is useful as a measure of the Company's ability to meet its debt obligations and to raise additional debt. "FIXED CHARGE COVERAGE RATIO" is defined as FFO plus those fixed charges which have been expensed in calculating FFO ("FFO Plus Expensed Fixed Charges"), divided by fixed charges. Fixed charges is the sum of interest expense, principal amortization under mortgage notes payable, ground lease rental payments and preferred stock dividends. Fixed charges include the Company's share of fixed charges for unconsolidated joint ventures, with Gateway expenses excluded, as discussed above. This measure is useful as a measure of the Company's ability to meet its debt obligations and to raise additional debt or capital. "FUNDS FROM OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS" ("FFO") is a supplemental operating performance measure used in the real estate industry. Effective January 1, 2003, the Company adopted the National Association of Real Estate Investment Trusts' ("NAREIT") definition of FFO, which is net income available to common Page 1 of 3 COUSINS PROPERTIES INCORPORATED DISCUSSION OF NON-GAAP FINANCIAL MEASURES stockholders (computed in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. FFO is used by industry analysts and investors as a supplemental measure of an equity REIT's operating performance. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from GAAP net income. 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 the operating performance of its reportable segments and of its divisions based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and employees. "INTEREST EXPENSE COVERAGE RATIO" is defined as the ratio of FFO plus consolidated interest expense ("FFO Before Interest") divided by consolidated interest expense. Consolidated interest expense is the sum of the Company's interest expense plus its share of interest expense for unconsolidated joint ventures. The Company's share of interest expense for Gateway has been excluded in accordance with the discussion under "Adjusted Debt" above. This measure is useful as a measure of the Company's ability to meet its debt obligations and to raise additional debt. "RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES" is used by industry analysts, investors and Company management to measure operating performance of the Company's properties. Like FFO, 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 this item for the reasons described under FFO above. Additionally, appraisals of real estate are based on the value of an income stream before interest and depreciation. Page 2 of 3 COUSINS PROPERTIES INCORPORATED DISCUSSION OF NON-GAAP FINANCIAL MEASURES "SAME-PROPERTY GROWTH" represents the percentage change in Adjusted Rental Property Revenues less rental property operating expenses and in Cash Basis Rental Property Revenues less rental property operating expenses for Same Properties. Adjusted Rental Property Revenues is defined as rental property revenues, excluding lease termination fees, which are generally one-time payments that may distort results of operations for comparable periods, and inter-company activities. Cash Basis Rental Property Revenues excludes lease termination fees and inter-company activities and also excludes straight-line rents and amortization of acquired above market rents. Same Properties include those properties that have been fully operational in each of the comparable reporting periods. Same-Property Growth allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company's portfolio. "VALUE CREATION" is defined as the value or sales price of a property less any applicable closing costs and less the GAAP cost of the property before deducting accumulated depreciation and excluding any straight-line rent receivable, all as of the measurement date. Where the ownership entity is a venture, the Company's share of these items is used in these calculations. Value Creation is useful in determining the economic gain or loss inherent in a property. For example, to the extent that GAAP depreciation is recorded against an asset when the asset has in fact appreciated, it is helpful to eliminate this portion of the GAAP gain in order to reflect the true economic gain. As such, Value Creation is useful to investors as a measure of a company's ability to create value by developing or acquiring an investment which has a fair market value in excess of the cost incurred by the company to create the investment. Company management considers Value Creation a key objective and core competency of the Company and uses this as an additional measure in assessing performance of the Company and its officers and employees. Page 3 of 3 -----END PRIVACY-ENHANCED MESSAGE-----