8-K

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): February 9, 2009

Cousins Properties Incorporated

(Exact name of registrant as specified in its charter)

Georgia

(State or other jurisdiction of incorporation)

0-3576

(Commission File Number)

58-0869052

(IRS Employer Identification Number)

191 Peachtree Street NE, Suite 3600 Atlanta, Georgia 30303-1740
(Address of principal executive offices)

Registrant’s telephone number, including area code: (404) 407-1000

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 (see General Instruction A.2. below):

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))

Item 2.02. Results of Operations and Financial Condition

     On February 9, 2009, Cousins Properties Incorporated (the “Company”) issued a Quarterly Information Package containing a press release and information about the Company’s financial condition and results of operations for the three months and year ended December 31, 2008. A copy of the Company’s Quarterly Information Package is attached hereto as Exhibit 99.1. The information contained in this Current Report on Form 8-K, including Exhibit 99.1, 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	Quarterly Information Package for the Quarter Ended December 31, 2008.

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: February 9, 2009

COUSINS PROPERTIES INCORPORATED
By:	/s/ James A. Fleming
	James A. Fleming
	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED

Quarterly Information Package
For the Quarter Ended December 31, 2008

TABLE OF CONTENTS

Press Release	1
Condensed Consolidated Statements of Income	4
Funds From Operations	5
Condensed Consolidated Balance Sheets	6
Key Ratios and Supplemental Information	7
Net Income and Funds From Operations — Supplemental Detail	8
Development Pipeline	15
Portfolio Listing	17
Same Property Information	20
Square Feet Expiring:
Office	21
Retail	22
Industrial	23
Top 25 Largest Tenants	24
Inventory of Land Held	25
Inventory of Residential Lots	27
Debt Outstanding	29
Reconciliations of Non-GAAP Financial Measures	30
Discussion of Non-GAAP Financial Measures	35

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. These include, but are not limited to, general and local economic conditions (including the current general recession and state of the credit markets), local real estate conditions (including the overall condition of the residential markets), the activity of others developing competitive projects, the risks associated with development projects (such as delay, cost overruns and leasing/sales risk of new properties), 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 ability of the Company to close properties under contract and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the risks identified in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. 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 statements are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak 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.

	News Release
	FOR IMMEDIATE RELEASE
CONTACT:

James A. Fleming	Cameron Golden
Executive Vice President and	Director of Investor Relations and
Chief Financial Officer	Corporate Communications
(404) 407-1150	(404) 407-1984
jimfleming@cousinsproperties.com	camerongolden@cousinsproperties.com

Website address: www.cousinsproperties.com

COUSINS PROPERTIES REPORTS RESULTS FOR
QUARTER ENDED DECEMBER 31, 2008

     ATLANTA (February 9, 2009) – Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the three months and year ended December 31, 2008. All per share amounts are reported on a diluted basis; basic per share data is included in the Condensed Consolidated Statements of Income accompanying this release.

     Funds from Operations Available to Common Stockholders (“FFO”) was $10.2 million, or $0.20 per share, for the fourth quarter of 2008 compared with FFO of $7.3 million, or $0.14 per share, for the fourth quarter of 2007. FFO was $61.0 million, or $1.18 per share, for the year ended December 31, 2008 compared to $48.4 million, or $0.92 per share, for the same period in 2007.

     For the fourth quarter of 2008, the Company generated a Net Loss Available to Common Stockholders (“Net Loss Available”) of $4.1 million, or $0.08 per share, as compared to Net Loss Available of $5.0 million, or $0.10 per share, for the fourth quarter of 2007. For the year ended December 31, 2008, the Company generated Net Income Available to Common Stockholders (“Net Income Available”) of $7.6 million, or $0.15 per share, compared with Net Income Available of $17.7 million, or $0.33 per share, for the same period in 2007.

     Included in FFO and Net Income (Loss) Available for the quarter and year ended December 31, 2008 is a $2.1 million pre-tax, non-cash impairment charge related to the Company’s 10 Terminus Place condominium project whose units are complete and held for sale. The Company was required to record these units at their estimated fair value on December 31, 2008.

     Fourth quarter highlights of the Company included the following:

• Sold its 3100 Windy Hill Road office building for $12.5 million, recognizing a gain on sale of approximately $2.5 million.

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191 Peachtree Street NE     •     Suite 3600     •     Atlanta, Georgia 30303-1740     •     404/407-1000     •     FAX 404/407-1002

1

CUZ Reports Fourth Quarter Results
Page 2
February 9, 2009

• Through its CL Realty joint venture, recognized pre-tax FFO of approximately $566,000 from a land tract sale.

• Commenced operations of Building 1 at Palisades West, a 216,000 square foot office building in Austin, Texas. Building 2, which is still partially under development, contains 157,000 square feet.

• Continued closings of units at its 10 Terminus Place multi-family project. The Company recognized approximately $370,000 of pre-tax gain on closings of four of the original 137 units.

• Sold three of the seven remaining commercial units at its 50 Biscayne multi-family project, generating FFO before taxes and minority interest of approximately $496,000.

• Entered into two $75 million interest rate swaps on floating-rate, LIBOR-based borrowings at 2.995% and 2.69% for two years.

• Purchased approximately 1.2 million shares of the Company’s Series A and Series B Cumulative Redeemable Preferred Stock for approximately $15.8 million.

• Entered into new leases on 183,000 square feet and renewed leases on 44,000 square feet of office space.

     At December 31, 2008, the Company’s portfolio of operational office buildings was 97% leased, its portfolio of operational retail centers was 84% leased and its operational industrial buildings were 40% leased.

     “In spite of the difficult economic times, we were able to make progress by selling our vacant 3100 Windy Hill Road building and signing several office leases,” said Tom Bell, Chairman and CEO of Cousins. “Looking to 2009, we are committed to maintaining a strong balance sheet with liquidity, working diligently to lease the remaining space in our development projects and holding the line on occupancy at our existing properties. We will also continue to seek distressed acquisitions and development opportunities, but to date have yet to see projects that meet our requirements.”

     The Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets and a schedule entitled Funds From Operations, which reconciles Net Income Available to FFO, are attached to this press release. More detailed information on 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 website at www.cousinsproperties.com. This information may also be obtained by calling the Company’s Investor Relations Department at (404) 407-1984.

     The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Tuesday, February 10, 2009, to discuss the results of the quarter ended December 31, 2008. The number to call for this interactive teleconference is (303) 228-2960. A replay of the conference call will be available for 14 days by dialing (303) 590-3000 and entering the passcode 11124059#. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q4 2008 Cousins Properties Incorporated

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2

CUZ Reports Fourth Quarter Results
Page 3
February 9, 2009

Earnings Conference Call” link on the Investor Relations page, as well as at www.streetevents.com and www.earnings.com. The rebroadcast will be available on the Investor Relations page of the Company’s website for 14 days.

     Cousins Properties Incorporated is a leading diversified real estate company with extensive experience in development, acquisition, financing, management and leasing. Based in Atlanta, the Company actively invests in office, multi-family, retail, industrial and land development projects. Since its founding in 1958, Cousins has developed 20 million square feet of office space, 20 million square feet of retail space, more than 4,000 multi-family units and more than 60 single-family neighborhoods. The Company is a fully integrated equity real estate investment trust (REIT) and trades on the New York Stock Exchange under the symbol CUZ. For more, please visit 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 risk. These include, but are not limited to, general and local economic conditions (including the current general recession and state of the credit markets), local real estate conditions (including the overall condition of the residential markets), the activity of others developing competitive projects, the risks associated with development projects (such as delay, cost overruns and leasing/sales risk of new properties), 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 ability of the Company to close properties under contract and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including those described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007. 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.

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3

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share amounts)

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
REVENUES:
Rental property revenues	$	38,050		$	32,370		$	147,394		$	112,645
Fee income		10,566			7,875			47,662			36,314
Multi-family residential sales		2,985			—			8,444			20
Residential lot and outparcel sales		247			2,496			6,993			9,949
Interest and other		867			1,490			4,158			6,429
		52,715			44,231			214,651			165,357
COSTS AND EXPENSES:
Rental property operating expenses		13,944			13,028			56,607			46,139
General and administrative expenses		9,441			9,129			42,174			40,643
Reimbursed general and administrative expenses		4,534			3,668			16,279			17,167
Depreciation and amortization		15,777			11,687			52,925			39,796
Multi-family residential cost of sales		2,615			(100	)		7,330			(124	)
Residential lot and outparcel cost of sales		81			2,125			3,776			7,809
Interest expense		10,804			5,020			33,151			8,816
Loss on extinguishment of debt		—			—			—			446
Impairment loss		2,100			—			2,100			—
Other		1,770			650			6,049			2,822
		61,066			45,207			220,391			163,514
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES, MINORITY INTEREST AND INCOME FROM UNCONSOLIDATED JOINT VENTURES		(8,351	)		(976	)		(5,740	)		1,843
BENEFIT FOR INCOME TAXES FROM OPERATIONS		4,293			517			8,770			4,423
MINORITY INTEREST IN INCOME OF CONSOLIDATED SUBSIDIARIES		(690	)		(238	)		(2,378	)		(1,656	)
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		1,168			(815	)		9,721			6,096
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		(3,580	)		(1,512	)		10,373			10,706
GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION		408			678			10,799			5,535
INCOME (LOSS) FROM CONTINUING OPERATIONS		(3,172	)		(834	)		21,172			16,241
DISCONTINUED OPERATIONS, NET OF APPLICABLE INCOME TAX PROVISION:
Income (loss) from discontinued operations		82			(413	)		(1,097	)		(1,414	)
Gain on sale of investment properties		2,472			81			2,472			18,095
		2,554			(332	)		1,375			16,681
NET INCOME (LOSS)		(618	)		(1,166	)		22,547			32,922
DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,520	)		(3,813	)		(14,957	)		(15,250	)
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$	(4,138	)	$	(4,979	)	$	7,590		$	17,672
PER COMMON SHARE INFORMATION — BASIC:
Income (loss) from continuing operations	$	(0.13	)	$	(0.09	)	$	0.12		$	0.02
Income (loss) from discontinued operations		0.05			(0.01	)		0.03			0.32
Basic net income (loss) available to common stockholders	$	(0.08	)	$	(0.10	)	$	0.15		$	0.34
PER COMMON SHARE INFORMATION — DILUTED:
Income (loss) from continuing operations	$	(0.13	)	$	(0.09	)	$	0.12		$	0.02
Income (loss) from discontinued operations		0.05			(0.01	)		0.03			0.31
Diluted net income (loss) available to common stockholders	$	(0.08	)	$	(0.10	)	$	0.15		$	0.33
CASH DIVIDENDS DECLARED PER COMMON SHARE	$	0.25		$	0.37		$	1.36		$	1.48
WEIGHTED AVERAGE SHARES		51,262			51,588			51,202			51,705
DILUTED WEIGHTED AVERAGE SHARES		51,262			51,588			51,621			52,932

4

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
FUNDS FROM OPERATIONS
FOR THE THREE MONTHS AND YEARS ENDED DECEMBER 31, 2008 AND 2007
(Unaudited, in thousands, except per share amounts)

	Three Months Ended						Years Ended
	December 31,						December 31,
	2008			2007			2008			2007
Net Income (Loss) Available to Common Stockholders	$	(4,138	)	$	(4,979	)	$	7,590		$	17,672
Depreciation and amortization:
Consolidated properties		15,777			11,687			52,925			39,796
Discontinued properties		—			174			486			846
Share of unconsolidated joint ventures		2,010			1,273			6,495			4,576
Depreciation of furniture, fixtures and equipment and amortization of specifically identifiable intangible assets:
Consolidated properties		(1,004	)		(769	)		(3,724	)		(2,768	)
Discontinued properties		—			(6	)		(19	)		(25	)
Share of unconsolidated joint ventures		(1	)		(4	)		(79	)		(5	)
Gain on sale of investment properties, net of applicable income tax provision:
Consolidated		(408	)		(678	)		(10,799	)		(5,535	)
Discontinued properties		(2,472	)		(81	)		(2,472	)		(18,095	)
Share of unconsolidated joint ventures		—			12			—			(1,186	)
Gain on sale of undepreciated investment properties		388			622			10,611			13,161
Funds From Operations Available to Common Stockholders	$	10,152		$	7,251		$	61,014		$	48,437
Per Common Share — Basic:
Net Income (Loss) Available	$	(.08	)	$	(.10	)	$	.15		$	.34
Funds From Operations	$	.20		$	.14		$	1.19		$	.94
Weighted Average Shares-Basic		51,262			51,588			51,202			51,705
Per Common Share — Diluted:
Net Income (Loss) Available	$	(.08	)	$	(.10	)	$	.15		$	.33
Funds From Operations	$	.20		$	.14		$	1.18		$	.92
Weighted Average Shares-Diluted		51,262			52,401			51,621			52,932

     The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income (Loss) Available to Common Stockholders [“Net Income (Loss) Available”] for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, which is net income 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.

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

5

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share amounts)

	December 31,			December 31,
	2008			2007
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $182,050 and $142,955 in 2008 and 2007, respectively	$	853,450		$	654,633
Projects under development		172,582			358,925
Land held for investment or future development		115,862			105,117
Residential lots		59,197			44,690
Multi-family units held for sale		70,658			—
Total properties		1,271,749			1,163,365
CASH AND CASH EQUIVALENTS		82,963			17,825
RESTRICTED CASH		3,636			3,587
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $2,764 and $883 in 2008 and 2007, respectively		51,266			44,414
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		200,850			209,477
OTHER ASSETS		91,794			70,943
TOTAL ASSETS	$	1,702,258		$	1,509,611
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
NOTES PAYABLE	$	942,239		$	676,189
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES		73,489			57,208
DEFERRED GAIN		171,838			171,931
DEPOSITS AND DEFERRED INCOME		6,485			5,997
TOTAL LIABILITIES		1,194,051			911,325
MINORITY INTERESTS (includes redeemable minority interests with a book value of $2,981 and a maximum redemption amount of $3,945 as of December 31, 2008)		40,520			45,783
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 and 4,000,000 shares issued and outstanding in 2008 and 2007, respectively		74,827			100,000
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 and 4,000,000 shares issued and outstanding in 2008 and 2007, respectively		94,775			100,000
Common stock, $1 par value, 150,000,000 shares authorized, 54,922,173 and 54,850,505 shares issued in 2008 and 2007, respectively		54,922			54,851
Additional paid-in capital		368,829			348,508
Treasury stock at cost, 3,570,082 shares in 2008 and 2007		(86,840	)		(86,840	)
Accumulated other comprehensive income		(16,601	)		(4,302	)
Cumulative undistributed net income (distributions in excess of net income)		(22,225	)		40,286
TOTAL STOCKHOLDERS’ INVESTMENT		467,687			552,503
TOTAL LIABILITIES AND STOCKHOLDERS’ INVESTMENT	$	1,702,258		$	1,509,611

6

COUSINS PROPERTIES INCORPORATED
KEY RATIOS AND SUPPLEMENTAL INFORMATION
(in thousands, except per share amounts, percentages and ratios)

		2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
	NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS		399,742			34,491			217,441			14,407			395			7,849			(4,979	)		17,672			1,839			2,911			6,978			(4,138	)		7,590
	FFO AVAILABLE TO COMMON STOCKHOLDERS (“FFO”), EXCLUDING LOSS ON EXTINGUISHMENT OF DEBT		109,483			73,746			74,469			24,487			9,383			7,316			7,251			48,437			13,811			16,120			20,931			10,152			61,014
	BASIC WEIGHTED AVERAGE COMMON SHARES		49,005			49,989			50,655			51,719			51,825			51,690			51,588			51,705			51,148			51,187			51,209			51,262			51,202
	DILUTED WEIGHTED AVERAGE COMMON SHARES		51,016			51,747			52,513			53,596			53,306			52,778			52,401			52,932			51,670			52,040			51,652			51,262			51,621
	NET INCOME (LOSS) PER COMMON SHARE — BASIC		8.16			0.69			4.29			0.28			0.01			0.15			(0.10	)		0.34			0.04			0.06			0.14			(0.08	)		0.15
	NET INCOME (LOSS) PER COMMON SHARE — DILUTED		7.84			0.67			4.14			0.27			0.01			0.15			(0.10	)		0.33			0.04			0.06			0.14			(0.08	)		0.15
	FFO PER COMMON SHARE — BASIC		2.23			1.48			1.47			0.47			0.18			0.14			0.14			0.94			0.27			0.31			0.41			0.20			1.19
	FFO PER COMMON SHARE — DILUTED		2.15			1.43			1.42			0.46			0.18			0.14			0.14			0.92			0.27			0.31			0.41			0.20			1.18
(H)	2ND GENERATION TI & LEASING COSTS AND BUILDING CAPEX (1)		19,258			9,439			13,421			6,897			6,455			4,087			1,540			18,979			6,936			8,375			5,010			3,711			24,032
	REGULAR COMMON DIVIDENDS		72,869			74,649			75,495			19,194			19,251			19,185			19,152			76,782			18,974			18,992			18,995			12,846			69,807
	SPECIAL COMMON DIVIDEND		356,493			—			175,470			—			—			—			—			—			—			—			—			—			—
	REGULAR COMMON DIVIDENDS PER SHARE		1.48			1.48			1.48			0.37			0.37			0.37			0.37			1.48			0.37			0.37			0.37			0.25			1.36
	SPECIAL COMMON DIVIDEND PER SHARE		7.15			—			3.40			—			—			—			—			—			—			—			—			—			—
	COMMON STOCK PRICE AT PERIOD END		30.27			28.30			35.27			32.86			29.01			29.36			22.10			22.10			24.71			23.10			25.23			13.85			13.85
	NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		50,092			50,665			51,748			52,018			51,793			51,858			51,280			51,280			51,292			51,336			51,383			51,352			51,352
	PREFERRED STOCK — SERIES A — PRICE AT PERIOD END		26.15			25.75			25.90			25.64			26.00			24.90			22.38			22.38			21.14			22.50			18.00			12.24			12.24
	NUMBER OF PREFERRED SHARES — SERIES A — OUTSTANDING AT PERIOD END		4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			2,993			2,993
	PREFERRED STOCK — SERIES B — PRICE AT PERIOD END		25.00			25.40			25.53			25.82			24.95			23.98			20.59			20.59			20.45			21.78			17.00			12.00			12.00
	NUMBER OF PREFERRED SHARES — SERIES B — OUTSTANDING AT PERIOD END		4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			4,000			3,791			3,791
	COMMON EQUITY MARKET CAPITALIZATION		1,516,285			1,433,820			1,825,152			1,709,311			1,502,515			1,522,551			1,133,288			1,133,288			1,267,425			1,185,862			1,296,393			711,225			711,225
	PREFERRED EQUITY MARKET CAPITALIZATION		204,600			204,600			205,720			205,840			203,800			195,520			171,880			171,880			166,360			177,120			140,000			82,126			82,126
(A)	ADJUSTED DEBT (1)		350,346			514,560			376,516			436,009			558,816			645,219			773,482			773,482			898,205			899,140			973,524			1,073,953			1,073,953
	TOTAL MARKET CAPITALIZATION		2,071,231			2,152,980			2,407,388			2,351,160			2,265,131			2,363,289			2,078,650			2,078,650			2,331,990			2,262,122			2,409,917			1,867,304			1,867,304
	ADJUSTED DEBT AS A % OF TOTAL MARKET CAPITALIZATION		17	%		24	%		16	%		19	%		25	%		27	%		37	%		37	%		39	%		40	%		40	%		58	%		58	%
(A)	RECOURSE DEBT (1)		50,238			196,824			226,855			282,264			394,356			340,480			205,658			205,658			328,106			337,110			392,422			491,603			491,603
	RECOURSE DEBT AS A % OF TOTAL MARKET CAPITALIZATION		2	%		9	%		9	%		12	%		17	%		14	%		10	%		10	%		14	%		15	%		16	%		26	%		26	%
	COMMON EQUITY MARKET CAPITALIZATION		1,516,285			1,433,820			1,825,152			1,709,311			1,502,515			1,522,551			1,133,288			1,133,288			1,267,425			1,185,862			1,296,393			711,225			711,225
	PREFERRED EQUITY MARKET CAPITALIZATION		204,600			204,600			205,720			205,840			203,800			195,520			171,880			171,880			166,360			177,120			140,000			82,126			82,126
(A)	TOTAL DEBT (INCLUDING SHARE OF JV’S)		438,050			615,645			487,234			549,934			676,515			762,981			846,355			846,355			967,832			967,885			1,040,513			1,139,113			1,139,113
	TOTAL MARKET CAPITALIZATION		2,158,935			2,254,065			2,518,106			2,465,085			2,382,830			2,481,051			2,151,523			2,151,523			2,401,617			2,330,867			2,476,906			1,932,464			1,932,464
	TOTAL DEBT AS A % OF TOTAL MARKET CAPITALIZATION		20	%		27	%		19	%		22	%		28	%		31	%		39	%		39	%		40	%		42	%		42	%		59	%		59	%
(B)	CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV’S) (1)		31,656			11,908			14,653			714			1,242			4,089			6,149			12,194			7,400			8,422			9,852			12,044			37,718
	FFO BEFORE INTEREST		141,139			85,654			89,122			25,201			10,625			11,405			13,400			60,631			21,211			24,542			30,783			22,196			98,732
	INTEREST EXPENSE COVERAGE RATIO		4.46			7.19			6.08			35.30			8.55			2.79			2.18			4.97			2.87			2.91			3.12			1.84			2.62
(C)	FIXED CHARGES (excluding preferred dividends)(1)		43,854			20,505			24,089			3,000			2,604			4,878			8,173			18,655			8,751			9,675			11,277			13,365			43,068
	FFO PLUS FIXED CHARGES (excluding preferred dividends)		131,854			86,337			89,637			25,229			10,653			11,433			13,428			60,743			21,238			24,574			30,816			22,228			98,856
	FIXED CHARGE COVERAGE RATIO (excluding preferred dividends)		3.22			4.21			3.72			8.41			4.09			2.34			1.64			3.26			2.43			2.54			2.73			1.66			2.30
(C)	FIXED CHARGES (including preferred dividends)(1)		51,896			35,755			39,339			6,813			6,416			8,691			11,985			33,905			12,564			13,487			15,089			16,885			58,025
	FFO PLUS FIXED CHARGES (including preferred dividends)		139,896			101,587			104,887			29,042			14,465			15,246			17,240			75,993			25,051			28,386			34,628			25,748			113,813
	FIXED CHARGE COVERAGE RATIO (including preferred dividends)		2.87			2.84			2.67			4.26			2.25			1.75			1.44			2.24			1.99			2.10			2.29			1.52			1.96

7

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

		2004		2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
	CONSOLIDATED ENTITY FFO AND NET INCOME:
(D)	RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY
	OPERATING EXPENSES (1):
	OFFICE:
	191 PEACHTREE		0		0			1,964			2,199			2,036			2,555			2,558			9,349			2,661			2,750			2,857			3,071			11,339
	221 PEACHTREE CENTER GARAGE		0		0			0			0			128			222			160			510			147			189			189			114			639
	AMERICAN CANCER SOCIETY CENTER		12,808		11,376			11,774			2,678			2,436			3,454			3,391			11,959			3,555			3,598			3,665			3,729			14,547
	TERMINUS 100		0		0			0			0			120			1,783			3,096			5,000			4,056			4,161			3,771			4,398			16,386
	ONE GEORGIA CENTER		1,369		(1,361	)		(219	)		140			(98	)		38			(190	)		(109	)		(148	)		530			977			1,291			2,650
	THE POINTS AT WATERVIEW		1,949		1,872			2,124			508			549			552			569			2,179			531			504			545			547			2,127
	LAKESHORE PARK PLAZA		1,459		722			922			388			459			436			511			1,794			505			541			515			580			2,141
	MERIDIAN MARK PLAZA		4,224		4,487			4,475			1,135			1,053			1,065			1,086			4,339			1,109			1,178			1,136			1,081			4,504
	555 NORTH POINT CENTER EAST		945		1,506			1,771			466			462			474			480			1,882			488			525			426			550			1,989
	333 NORTH POINT CENTER EAST		1,036		1,395			1,183			320			334			319			314			1,287			310			280			435			424			1,449
	200 NORTH POINT CENTER EAST		417		363			839			322			356			406			406			1,490			416			406			299			363			1,484
	100 NORTH POINT CENTER EAST		1,010		1,020			1,035			309			312			348			351			1,320			458			317			392			362			1,529
	600 UNIVERSITY PARK PLACE		1,797		1,701			1,107			324			426			400			408			1,557			425			419			420			415			1,679
	GALLERIA 75		899		1,036			897			181			158			168			142			650			132			153			169			137			591
	COSMOPOLITAN CENTER		0		0			13			52			14			132			143			341			125			123			142			69			459
	ATHEROGENICS		1,222		1,241			1,263			319			318			322			319			1,279			324			328			328			327			1,307
	INHIBITEX		0		666			917			230			226			229			227			912			229			230			226			225			910
	SUBTOTAL		29,135		26,024			30,065			9,571			9,290			12,905			13,971			45,738			15,323			16,232			16,492			17,683			65,730
	RETAIL:
	THE AVENUE CARRIAGE CROSSING		0		743			5,835			1,775			1,748			1,662			1,589			6,774			1,487			1,660			1,700			1,867			6,714
	THE AVENUE WEBB GIN		0		0			1,653			1,276			1,271			1,533			1,478			5,558			1,612			1,495			1,620			1,240			5,967
	SAN JOSE MARKETCENTER		0		0			3,846			1,422			1,612			1,705			1,711			6,450			1,835			1,835			1,876			1,543			7,089
	THE AVENUE FORSYTH		0		0			0			0			0			0			0			0			73			546			1,184			724			2,527
	TIFFANY SPRINGS MARKETCENTER		0		0			0			0			0			0			0			0			0			(3	)		492			768			1,257
	PROPERTIES CONTRIBUTED TO CP VENTURE FIVE (AVENUE FUND)		13,179		16,623			9,068			(31	)		(36	)		(60	)		82			(45	)		34			1			(3	)		(2	)		30
	SUBTOTAL		13,179		17,366			20,402			4,442			4,595			4,840			4,860			18,736			5,041			5,534			6,869			6,140			23,584
	INDUSTRIAL:
	KING MILL — BUILDING 3A		0		0			405			306			301			297			283			1,187			297			294			295			297			1,183
	KING MILL — BUILDING 3B		0		0			0			0			0			0			(32	)		(32	)		(72	)		(69	)		(66	)		(53	)		(260	)
	LAKESIDE RANCH — BUILDING 20		0		0			0			31			231			302			230			794			240			163			184			181			768
	JEFFERSON MILL — BUILDING A		0		0			0			0			0			0			0			0			0			(29	)		(29	)		(91	)		(149	)
	SUBTOTAL		0		0			405			337			532			599			481			1,949			465			359			384			334			1,542
	OTHER RENTAL OPERATIONS:
	OTHER		1,432		1,021			203			19			22			11			30			82			39			(8	)		(49	)		(51	)		(69	)
	SUBTOTAL		1,432		1,021			203			19			22			11			30			82			39			(8	)		(49	)		(51	)		(69	)
	PROPERTIES SOLD, NOT IN DISCONTINUED OPERATIONS, RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES		7,615		2			0			0			0			0			0			0			0			0			0			0			0
	TOTAL CONSOLIDATED RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES		51,361		44,413			51,076			14,369			14,439			18,355			19,342			66,505			20,868			22,117			23,696			24,106			90,787
(E)	DISCONTINUED OPERATIONS RENTAL PROPERTY REVENUES
	LESS RENTAL PROPERTY OPERATING EXPENSES (1):
	3100 WINDY HILL RD		2,974		2,944			2,676			(256	)		(281	)		(264	)		(231	)		(1,032	)		(233	)		(204	)		(296	)		53			(680	)
	GA 400 LAND LEASES		1,463		1,432			1,537			123			1			2			0			126			0			0			0			0			0
	FROST BANK TOWER		3,486		5,123			4,548			13			17			2			9			41			0			33			0			19			52
	THE AVENUE OF THE PENINSULA		4,213		4,446			5,114			11			62			5			(13	)		65			0			5			3			10			18
	3301 WINDY RIDGE PARKWAY		1,659		1,693			2,750			102			104			22			(4	)		224			0			(1	)		0			0			(1	)
	OTHER		15,760		718			41			0			9			0			0			9			0			0			0			0			0
	TOTAL DISCONTINUED OPERATIONS RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES		29,555		16,356			16,666			(7	)		(88	)		(233	)		(239	)		(567	)		(233	)		(167	)		(293	)		82			(611	)

8

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

			2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
(G	)	RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY FFO:
		OUTPARCEL SALES NET OF COST OF SALES — WHOLLY OWNED (1)		471			1,367			1,656			0			0			768			249			1,017			755			25			1,551			59			2,390
		TRACT SALES NET OF COST OF SALES — WHOLLY OWNED (1)		29,627			15,483			2,481			4,355			0			0			622			4,977			3,736			4,741			375			352			9,204
		TRACT SALES NET OF COST OF SALES — JOINT VENTURES (1)		2,198			3,390			6,675			0			463			0			188			651			0			931			1,695			566			3,192
		TOTAL TRACT SALES NET OF COS		31,825			18,873			9,156			4,355			463			0			810			5,628			3,736			5,672			2,070			918			12,396
		OTHER INVESTMENT PROPERTY SALES NET OF COST OF SALES — WHOLLY OWNED (1)		0			0			11,867			8,185			0			(1	)		0			8,184			0			415			956			36			1,407
		TOTAL OTHER INVESTMENT PROPERTY SALES NET OF COS		0			0			11,867			8,185			0			(1	)		0			8,184			0			415			956			36			1,407
		LOT SALES NET OF COST OF SALES — WHOLLY OWNED (1)		4,222			4,162			2,877			218			344			440			122			1,124			43			398			279			107			827
		LOT SALES NET OF COST OF SALES — JOINT VENTURES (1)		6,993			10,479			8,217			406			758			407			250			1,822			121			237			182			255			795
		TOTAL LOT SALES NET OF COS		11,215			14,641			11,094			624			1,102			848			372			2,946			164			635			461			362			1,622
		INTEREST — JOINT VENTURES (1)		(135	)		(152	)		(284	)		(35	)		(35	)		(83	)		(85	)		(238	)		(101	)		(85	)		(139	)		(145	)		(470	)
		OTHER — JOINT VENTURES (1)		(226	)		(528	)		(381	)		(141	)		(38	)		(237	)		(671	)		(1,087	)		1,014			258			(235	)		(988	)		49
		DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS — JOINT VENTURES (1)		0			(62	)		0			0			0			0			0			0			(21	)		(21	)		(21	)		0			(63	)
		TOTAL RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY FFO		43,150			34,139			33,108			12,988			1,492			1,295			675			16,450			5,547			6,899			4,643			242			17,331
(I	)	MULTI-FAMILY FFO:
		MULTI-FAMILY SALES NET OF COST OF SALES — CONSOLIDATED (1)		0			1,828			3,731			0			47			(3	)		100			144			0			0			744			370			1,114
		MULTI-FAMILY SALES NET OF COST OF SALES — JOINT VENTURES (1)		0			7,182			10,343			2,424			1,804			(3,345	)		(1,068	)		(185	)		650			(227	)		973			496			1,892
		TOTAL MULTI-FAMILY FFO		0			9,010			14,074			2,424			1,851			(3,348	)		(968	)		(41	)		650			(227	)		1,717			866			3,006
		DEVELOPMENT INCOME		3,310			3,056			4,585			574			2,204			1,568			1,535			5,881			1,013			1,219			14,322			1,204			17,758
		MANAGEMENT FEES		21,931			24,058			24,437			6,354			6,698			6,043			5,687			24,782			5,791			6,153			6,388			7,072			25,404
		LEASING & OTHER FEES		4,463			8,084			6,443			1,138			958			2,902			653			5,651			754			430			1,026			2,290			4,500
		TERMINATION FEES		2,132			545			631			3,557			664			(17	)		989			5,193			131			(109	)		355			30			407
		INTEREST INCOME & OTHER		2,528			1,886			742			110			169			455			502			1,236			1,229			1,049			636			837			3,751
		GENERAL & ADMINISTRATIVE EXPENSES:
		GENERAL & ADMINISTRATIVE EXPENSES		(33,702	)		(40,702	)		(42,536	)		(10,583	)		(11,069	)		(9,862	)		(9,129	)		(40,643	)		(10,599	)		(9,114	)		(9,648	)		(9,399	)		(38,760	)
		COMMISSION ON DEVELOPMENT FEE		0			0			0			0			0			0			0			0			0			0			(3,372	)		(42	)		(3,414	)
		REIMBURSED GENERAL & ADMINISTRATIVE EXPENSES		(13,227	)		(15,116	)		(16,056	)		(4,107	)		(4,535	)		(4,857	)		(3,668	)		(17,167	)		(3,786	)		(3,953	)		(4,006	)		(4,534	)		(16,279	)
		TOTAL GENERAL & ADMINISTRATIVE EXPENSES		(46,929	)		(55,818	)		(58,592	)		(14,690	)		(15,604	)		(14,719	)		(12,797	)		(57,810	)		(14,385	)		(13,067	)		(17,026	)		(13,975	)		(58,453	)
		INTEREST EXPENSE CONSOLIDATED:
		2007 CREDIT FACILITY — FLOATING @ LIBOR + .75% to 1.25%								0			0			0			(1,795	)		(1,513	)		(3,308	)		(1,339	)		(1,949	)		(2,082	)		(2,759	)		(8,129	)
		UNSECURED TERM LOAN — FIXED SWAP RATE OF 5.01% + .70% to 1.20%								0			0			0			(560	)		(1,417	)		(1,977	)		(1,470	)		(1,479	)		(1,479	)		(1,524	)		(5,952	)
		THE AMERICAN CANCER SOCIETY CENTER - 6.45%								0			0			0			(756	)		(2,271	)		(3,027	)		(2,240	)		(2,240	)		(2,263	)		(2,264	)		(9,007	)
		333 & 555 NORTH POINT CENTER DEBT - 7%		(2,207	)		(2,165	)		(2,121	)		(523	)		(520	)		(516	)		(513	)		(2,072	)		(510	)		(507	)		(503	)		(500	)		(2,020	)
		MERIDIAN MARK PLAZA DEBT - 8.27%		(2,048	)		(2,021	)		(1,991	)		(493	)		(491	)		(489	)		(487	)		(1,959	)		(484	)		(482	)		(480	)		(477	)		(1,923	)
		600 UNIVERSITY PARK DEBT - 7.38%		(1,020	)		(1,009	)		(995	)		(247	)		(246	)		(245	)		(245	)		(983	)		(243	)		(242	)		(241	)		(240	)		(966	)
		100 NORTH POINT CENTER EAST DEBT - 5.39%		(932	)		(932	)		(932	)		(231	)		(208	)		(170	)		(170	)		(780	)		(169	)		(172	)		(170	)		(170	)		(681	)
		200 NORTH POINT CENTER EAST DEBT - 5.39%		(826	)		(826	)		(826	)		(205	)		(191	)		(170	)		(170	)		(736	)		(168	)		(172	)		(170	)		(170	)		(680	)
		LAKESHORE PARK PLAZA DEBT - 5.89%								0			0			0			0			0			0			0			0			(230	)		(293	)		(523	)
		LAKESHORE PARK PLAZA DEBT - 6.78%		(666	)		(648	)		(631	)		(155	)		(154	)		(152	)		(151	)		(612	)		(150	)		(115	)		0			0			(265	)
		KING MILL DEBT - 9%		0			(34	)		(293	)		(109	)		(114	)		(121	)		(124	)		(469	)		(121	)		(122	)		(125	)		(125	)		(493	)
		JEFFERSON MILL DEBT - 9%		0			0			(23	)		(40	)		(53	)		(62	)		(64	)		(218	)		(65	)		(67	)		(70	)		(70	)		(272	)
		THE POINTS AT WATERVIEW DEBT - 5.66%		0			(11	)		(1,051	)		(284	)		(263	)		(262	)		(261	)		(1,070	)		(259	)		(258	)		(257	)		(255	)		(1,029	)
		TERMINUS 100 DEBT - 6.13%		0			0			0			0			0			0			(2,358	)		(2,358	)		(2,800	)		(2,801	)		(2,801	)		(2,801	)		(11,203	)
		SAN JOSE MARKETCENTER DEBT - 5.6%		0			0			0			0			0			0			(448	)		(448	)		(1,223	)		(1,224	)		(1,225	)		(1,222	)		(4,894	)
		2005 CREDIT FACILITY — FLOATING @ LIBOR + .80% to 1.30%		0			0			(8,752	)		(2,732	)		(3,578	)		(1,704	)		0			(8,014	)		0			0			0			0			0
		2005 TERMINUS CONSTRUCTION FACILITY — FLOATING @ LIBOR + .80% to 1.30%		0			0			(2,598	)		(1,072	)		(1,265	)		(910	)		(19	)		(3,265	)		0			0			0			0			0
		BRIDGE LOAN — FLOATING @ LIBOR + .75%								0			0			0			(907	)		52			(855	)		0			0			0			0			0
		BANK OF AMERICA PLAZA FINANCING - 6.9575%		(10,406	)		(10,197	)		(7,447	)		0			(2	)		0			0			(2	)		0			0			0			0			0
		THE AVENUE EAST COBB DEBT - 8.39%		(3,188	)		(3,153	)		(1,546	)		0			0			0			0			0			0			0			0			0			0
		CREDIT FACILITY — FLOATING @ LIBOR + .90% to 1.50%		(764	)		(3,979	)		(2,103	)		0			0			0			0			0			0			0			0			0			0
		OTHER		(6,594	)		(1,312	)		(363	)		0			(2	)		(2	)		(2	)		(6	)		(2	)		(1	)		(4	)		(1	)		(8	)
		CAPITALIZED		14,028			17,193			20,553			6,091			6,555			5,556			5,141			23,343			4,968			4,464			3,395			2,067			14,894
		TOTAL INTEREST EXPENSE CONSOLIDATED		(14,623	)		(9,094	)		(11,119	)		0			(531	)		(3,265	)		(5,020	)		(8,816	)		(6,275	)		(7,367	)		(8,705	)		(10,804	)		(33,151	)

9

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

			2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
		OTHER EXPENSES — CONTINUING OPERATIONS
		LOSS ON EXTINGUISHMENT OF DEBT (NOT ASSOCIATED WITH PROPERTY SALE)		0			0			0			0			0			(446	)		0			(446	)		0			0			0			0			0
		PROPERTY TAXES & OTHER HOLDING COSTS		(664	)		(754	)		(524	)		(187	)		165			(230	)		(327	)		(579	)		(248	)		(102	)		(307	)		(825	)		(1,482	)
		MINORITY INTEREST EXPENSE		(1,417	)		(3,037	)		(4,130	)		(862	)		(842	)		285			(238	)		(1,656	)		(671	)		(251	)		(766	)		(690	)		(2,378	)
		PREDEVELOPMENT & OTHER		(1,284	)		(568	)		(2,287	)		(173	)		(924	)		(824	)		(322	)		(2,243	)		(1,507	)		(447	)		(1,668	)		(945	)		(4,567	)
		IMPAIRMENT LOSS		0			0			0			0			0			0			0			0			0			0			0			(2,100	)		(2,100	)
		TOTAL OTHER EXPENSES		(3,365	)		(4,359	)		(6,941	)		(1,222	)		(1,601	)		(1,215	)		(887	)		(4,925	)		(2,426	)		(800	)		(2,741	)		(4,560	)		(10,527	)
(E	)	OTHER EXPENSES — DISCONTINUED OPERATIONS		(5,870	)		0			0			0			0			0			0			0			0			0			0			0			0
		INCOME TAX (PROVISION)/BENEFIT:
		CONTINUING OPERATIONS		(2,744	)		(7,756	)		(4,193	)		1,027			1,073			1,806			517			4,423			3,217			2,176			(916	)		4,293			8,770
(E	)	DISCONTINUED OPERATIONS (1)		0			(126	)		(2	)		0			0			0			0			0			0			0			0			0			0
		TOTAL INCOME TAX (PROVISION)/BENEFIT		(2,744	)		(7,882	)		(4,195	)		1,027			1,073			1,806			517			4,423			3,217			2,176			(916	)		4,293			8,770
		DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS:
		CONSOLIDATED		(2,652	)		(2,951	)		(2,911	)		(501	)		(746	)		(752	)		(769	)		(2,768	)		(770	)		(961	)		(989	)		(1,004	)		(3,724	)
(E	)	DISCONTINUED OPERATIONS		0			0			0			0			(12	)		(7	)		(6	)		(25	)		(7	)		(6	)		(6	)		0			(19	)
		SHARE OF UNCONSOLIDATED JOINT VENTURES		0			0			0			0			0			(1	)		(4	)		(5	)		(4	)		(5	)		(6	)		(1	)		(16	)
		TOTAL NON-REAL ESTATE DEPRECIATION & AMORTIZATION		(2,652	)		(2,951	)		(2,911	)		(501	)		(758	)		(760	)		(779	)		(2,798	)		(781	)		(972	)		(1,001	)		(1,005	)		(3,759	)
(F	)	JOINT VENTURE FFO (EXCLUDING 905 JUNIPER, 50 BISCAYNE, TEMCO, CL REALTY, PINE MOUNTAIN BUILDERS, HANDY ROAD & VERDE) (1):
		CP VENTURE TWO LLC		1,861			1,722			1,725			436			425			404			389			1,654			400			364			406			334			1,504
		CP VENTURE FIVE LLC		0			0			3,849			609			683			589			572			2,453			606			571			568			509			2,254
		TEN PEACHTREE PLACE ASSOCIATES		1,533			1,506			1,433			296			312			299			319			1,226			326			331			350			311			1,318
		CHARLOTTE GATEWAY VILLAGE, LLC (GATEWAY VILLAGE)		1,208			1,191			1,208			302			302			302			302			1,208			302			302			302			302			1,208
		CRAWFORD LONG — CPI, LLC		1,447			1,865			2,007			515			524			532			476			2,047			533			526			523			512			2,094
		AVENUE MURFREESBORO		0			0			0			0			0			79			29			108			318			442			519			719			1,998
		PALISADES WEST LLC — BUILDING 1		0			0			(11	)		25			32			62			8			127			27			26			27			347			427
		OTHER		29,229			21,269			11,504			(4	)		(50	)		(6	)		(242	)		(302	)		12			36			(53	)		(40	)		(45	)
		TOTAL SHARE OF JOINT VENTURE FFO		35,278			27,553			21,715			2,179			2,228			2,261			1,853			8,522			2,524			2,598			2,642			2,994			10,758
		PREFERRED STOCK DIVIDENDS		(8,042	)		(15,250	)		(15,250	)		(3,813	)		(3,812	)		(3,813	)		(3,812	)		(15,250	)		(3,813	)		(3,812	)		(3,812	)		(3,520	)		(14,957	)
		FFO AVAILABLE TO COMMON STOCKHOLDERS, EXCLUDING LOSS ON EXTINGUISHMENT OF DEBT		109,483			73,746			74,469			24,487			9,383			7,316			7,251			48,437			13,811			16,120			20,931			10,152			61,014
		LOSS ON EXTINGUISHMENT OF DEBT		(605	)		0			(18,207	)		0			0			0			0			0			0			0			0			0			0
		FFO AVAILABLE TO COMMON STOCKHOLDERS, AS DEFINED		108,878			73,746			56,262			24,487			9,383			7,316			7,251			48,437			13,811			16,120			20,931			10,152			61,014
		GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET:
		CONTINUING OPERATIONS		118,056			15,733			3,012			4,440			62			355			678			5,535			3,792			5,212			1,387			408			10,799
(G	)	LESS GAIN ON SALE OF UNDEPRECIATED INVESTMENT PROPERTIES		(29,627	)		(15,483	)		(14,348	)		(12,540	)		0			1			(622	)		(13,161	)		(3,736	)		(5,156	)		(1,331	)		(388	)		(10,611	)
		DISCONTINUED OPERATIONS		81,927			1,037			86,495			8,164			(22	)		9,872			81			18,095			0			0			0			2,472			2,472
		SHARE OF UNCONSOLIDATED JOINT VENTURES		176,265			1,935			135,618			(44	)		10			1,232			(12	)		1,186			0			0			0			0			0
		TOTAL GAIN ON SALE OF INVESTMENT PROPERTIES, NET		346,621			3,222			210,777			20			50			11,460			125			11,655			56			56			56			2,492			2,660
		DEPRECIATION & AMORTIZATION OF REAL ESTATE (1):
		CONSOLIDATED		(26,421	)		(23,319	)		(27,913	)		(8,681	)		(7,801	)		(9,628	)		(10,918	)		(37,028	)		(10,495	)		(11,650	)		(12,283	)		(14,773	)		(49,201	)
(E	)	DISCONTINUED OPERATIONS		(13,456	)		(10,316	)		(12,866	)		(338	)		(148	)		(167	)		(168	)		(821	)		(167	)		(168	)		(132	)		0			(467	)
		SHARE OF UNCONSOLIDATED JOINT VENTURES		(15,880	)		(8,842	)		(8,819	)		(1,081	)		(1,089	)		(1,132	)		(1,269	)		(4,571	)		(1,366	)		(1,447	)		(1,594	)		(2,009	)		(6,416	)
		TOTAL REAL ESTATE DEPRECIATION & AMORTIZATION		(55,757	)		(42,477	)		(49,598	)		(10,100	)		(9,038	)		(10,927	)		(12,355	)		(42,420	)		(12,028	)		(13,265	)		(14,009	)		(16,782	)		(56,084	)
		NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS		399,742			34,491			217,441			14,407			395			7,849			(4,979	)		17,672			1,839			2,911			6,978			(4,138	)		7,590

10

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS-SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

JOINT VENTURES	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
COUSINS’ SHARE OF CP VENTURE TWO LLC (2):
RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES):
COUSINS’ SHARE OF CP VENTURE TWO LLC -OFFICE PORTFOLIO		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%
OFFICE:
FIRST UNION TOWER		322			8			0			0			0			0			0			0			0			0			0			0			0
GRANDVIEW II		276			196			157			0			(1	)		0			0			(1	)		0			0			0			0			0
100 NORTH POINT CENTER EAST		0			0			0			0			0			0			0			0			0			0			0			0			0
200 NORTH POINT CENTER EAST		1			0			0			0			0			0			0			0			0			0			0			0			0
PRESBYTERIAN MEDICAL PLAZA		106			111			106			28			30			24			34			116			21			29			26			11			87
SUBTOTAL OFFICE		705			315			263			28			29			24			34			115			21			29			26			11			87
COUSINS’ SHARE OF CP VENTURE TWO LLC -RETAIL PORTFOLIO		11.50	%		11.50	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%		10.32	%
RETAIL:
NORTH POINT MARKETCENTER		591			649			668			156			154			155			148			613			155			143			152			138			588
MANSELL CROSSING II		141			144			153			34			36			0			2			72			0			0			0			(6	)		(6	)
GREENBRIER MARKETCENTER		518			517			534			128			121			135			127			511			133			128			137			134			532
LOS ALTOS MARKETCENTER		363			354			358			89			89			89			78			345			90			65			91			57			303
SUBTOTAL RETAIL		1,613			1,664			1,713			407			400			379			355			1,541			378			336			380			323			1,417
TOTAL REVENUES LESS OPERATING EXPENSES		2,318			1,979			1,976			435			429			403			389			1,656			399			365			406			334			1,504
INTEREST EXPENSE		(248	)		(240	)		(231	)		0			0			0			0			0			0			0			0			0			0
OTHER, NET		0			(17	)		(20	)		1			(4	)		1			0			(2	)		1			(1	)		0			0			0
IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY		(209	)		0			0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		1,861			1,722			1,725			436			425			404			389			1,654			400			364			406			334			1,504
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(852	)		(667	)		(670	)		(123	)		(123	)		(115	)		(116	)		(477	)		(112	)		(111	)		(131	)		(195	)		(549	)
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		0			0			736			0			0			1,231			(7	)		1,224			0			0			0			0			0
NET INCOME (LOSS)		1,009			1,055			1,791			313			302			1,520			266			2,401			288			253			275			139			955
COUSINS’ SHARE OF CP VENTURE FIVE (2):								40.63	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%		11.50	%
RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES (REVENUES LESS OPERATING EXPENSES):
THE AVENUE EAST COBB		0			0			1,382			201			192			156			174			723			175			182			184			169			710
THE AVENUE PEACHTREE CITY		0			0			843			132			122			123			114			491			122			116			112			108			458
THE AVENUE WEST COBB		0			0			1,132			158			179			184			164			685			167			142			152			125			586
THE AVENUE VIERA		0			0			947			154			159			155			152			620			164			155			153			153			625
VIERA MARKETCENTER		0			0			198			51			52			54			51			208			55			50			52			40			197
TOTAL REVENUES LESS OPERATING EXPENSES		0			0			4,502			696			704			672			655			2,727			683			645			653			595			2,576
INTEREST EXPENSE		0			0			(634	)		(88	)		(88	)		(87	)		(87	)		(350	)		(87	)		(86	)		(86	)		(86	)		(345	)
OTHER, NET		0			0			(19	)		1			68			4			4			77			10			12			1			0			23
FUNDS FROM OPERATIONS		0			0			3,849			609			684			589			572			2,454			606			571			568			509			2,254
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			(2,018	)		(298	)		(332	)		(331	)		(244	)		(1,205	)		(261	)		(269	)		(359	)		(314	)		(1,203	)
NET INCOME (LOSS)		0			0			1,831			311			352			258			328			1,249			345			302			209			195			1,051
COUSINS’ SHARE OF TEN PEACHTREE PLACE ASSOCIATES (2):		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
REVENUES LESS OPERATING EXPENSES		2,211			2,326			2,239			496			511			497			516			2,020			516			521			539			523			2,099
INTEREST EXPENSE		(678	)		(820	)		(806	)		(200	)		(199	)		(198	)		(197	)		(794	)		(190	)		(190	)		(189	)		(212	)		(781	)
FUNDS FROM OPERATIONS		1,533			1,506			1,433			296			312			299			319			1,226			326			331			350			311			1,318
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(1,134	)		(1,128	)		(1,060	)		(271	)		(250	)		(270	)		(261	)		(1,052	)		(267	)		(267	)		(267	)		(243	)		(1,044	)
NET INCOME		399			378			373			25			62			29			58			174			59			64			83			68			274
COUSINS’ SHARE OF GATEWAY VILLAGE (2) (3):
REVENUES LESS OPERATING EXPENSES		1,208			1,191			1,208			302			302			302			302			1,208			302			302			302			302			1,208
INTEREST EXPENSE		0			0			0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		1,208			1,191			1,208			302			302			302			302			1,208			302			302			302			302			1,208
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(32	)		(33	)		(32	)		(8	)		(8	)		(8	)		(8	)		(32	)		(8	)		(8	)		(8	)		(8	)		(32	)
NET INCOME		1,176			1,158			1,176			294			294			294			294			1,176			294			294			294			294			1,176

11

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS-SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

JOINT VENTURES	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008  1st			2008  2nd			2008  3rd			2008  4th			2008 YTD
COUSINS’ SHARE OF CRAWFORD LONG — CPI (2):		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
REVENUES LESS OPERATING EXPENSES		3,071			3,467			3,586			906			913			920			862			3,601			918			909			904			892			3,623
INTEREST EXPENSE		(1,624	)		(1,602	)		(1,579	)		(391	)		(389	)		(388	)		(386	)		(1,554	)		(385	)		(383	)		(381	)		(380	)		(1,529	)
FUNDS FROM OPERATIONS		1,447			1,865			2,007			515			524			532			476			2,047			533			526			523			512			2,094
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(1,352	)		(1,447	)		(1,468	)		(347	)		(340	)		(336	)		(329	)		(1,352	)		(321	)		(321	)		(321	)		(324	)		(1,287	)
NET INCOME		95			418			539			168			184			196			147			695			212			205			202			188			807
COUSINS’ SHARE OF AVENUE MURFREESBORO (2):																	50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
REVENUES LESS OPERATING EXPENSES		0			0			0			0			0			147			407			554			680			753			844			1,136			3,413
OTHER, NET					0			0			0			0			0			0			0			0			0			27			0			27
INTEREST EXPENSE		0			0			0			0			0			(68	)		(374	)		(442	)		(362	)		(311	)		(352	)		(417	)		(1,442	)
DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			0			0			0			0			0			(4	)		(4	)		(4	)		(5	)		(6	)		(1	)		(16	)
FUNDS FROM OPERATIONS		0			0			0			0			0			79			29			108			314			437			513			718			1,982
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			(38	)		(272	)		(310	)		(351	)		(425	)		(462	)		(708	)		(1,946	)
NET INCOME		0			0			0			0			0			41			(243	)		(202	)		(37	)		12			51			10			36
COUSINS’ SHARE OF PALISADES WEST LLC (2):								50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
REVENUES LESS OPERATING EXPENSES		0			0			(11	)		25			32			62			8			127			27			26			27			347			427
OTHER, NET					0			0			0			0			0			0			0			0			0			0			0			0
INTEREST EXPENSE		0			0			0			0			0			0			0			0			0			0			0			0			0
DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			0			0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		0			0			(11	)		25			32			62			8			127			27			26			27			347			427
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			(170	)		(170	)
NET INCOME		0			0			(11	)		25			32			62			8			127			27			26			27			177			257
COUSINS’ SHARE OF 905 JUNIPER, LLC (2):					72	%
MULTI-FAMILY SALES, NET OF COS		0			514			0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		0			514			0			0			0			0			0			0			0			0			0			0			0
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			0			0
NET INCOME		0			514			0			0			0			0			0			0			0			0			0			0			0
COUSINS’ SHARE OF 50 BISCAYNE, LLC (2):					40	%		40	%		40	%		40	%		40	%		40	%		40	%		40	%		40	%		40	%		40	%		40	%
MULTI-FAMILY SALES, NET OF COS		0			6,515			10,172			2,289			1,676			(3,460	)		(3,832	)		(3,327	)		199			195			1,263			487			2,144
OTHER, NET		0			153			171			135			128			115			2,764			3,142			451			(422	)		(290	)		9			(252	)
FUNDS FROM OPERATIONS		0			6,668			10,343			2,424			1,804			(3,345	)		(1,068	)		(185	)		650			(227	)		973			496			1,892
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			0			0
NET INCOME		0			6,668			10,343			2,424			1,804			(3,345	)		(1,068	)		(185	)		650			(227	)		973			496			1,892
COUSINS’ SHARE OF OTHER (2):
REVENUES LESS OPERATING EXPENSES		40,201			15,874			11,344			(8	)		(43	)		3			(17	)		(65	)		(5	)		47			6			(19	)		29
INTEREST EXPENSE		(8,478	)		0			0			0			0			0			0			0			0			0			0			0			0
OTHER, NET		791			5,411			172			4			(7	)		(8	)		(227	)		(238	)		17			(11	)		(59	)		(21	)		(74	)
DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		(35	)		(16	)		(12	)		0			0			0			0			0			0			0			0			0			0
MARK-TO-MARKET DEBT ADJUSTMENT		(3,250	)		0			0			0			0			0			0			0			0			0			0			0			0
IMPAIRMENT LOSS ON DEPRECIABLE PROPERTY		0			0			0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		29,229			21,269			11,504			(4	)		(50	)		(5	)		(244	)		(303	)		12			36			(53	)		(40	)		(45	)
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(12,421	)		(5,014	)		(2,991	)		(5	)		(4	)		(5	)		(5	)		(19	)		(35	)		(35	)		(35	)		(35	)		(140	)
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		176,265			1,935			134,882			(44	)		8			0			(5	)		(41	)		0			0			0			0			0
NET INCOME		193,073			18,190			143,395			(53	)		(46	)		(10	)		(254	)		(363	)		(23	)		1			(88	)		(75	)		(185	)
COUSINS’ SHARE OF TEMCO ASSOCIATES (2):		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
RESIDENTIAL LOT AND TRACT SALES, NET OF COS		5,336			4,092			7,523			82			228			134			253			697			14			32			992			(1	)		1,037
INTEREST EXPENSE		(135	)		(152	)		(146	)		(35	)		(35	)		(35	)		(34	)		(139	)		(34	)		(33	)		(33	)		(32	)		(132	)
OTHER, NET		(6	)		105			125			(45	)		61			16			(306	)		(274	)		(89	)		276			(128	)		(293	)		(234	)
DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			0			0			0			0			0			0			0			(21	)		(21	)		(21	)		0			(63	)
IMPAIRMENT LOSS		0			0			0			0			0			0			0			0			0			0			0			(22	)		(22	)
FUNDS FROM OPERATIONS		5,195			4,045			7,502			2			254			115			(87	)		284			(130	)		254			810			(348	)		586
DEPRECIATION & AMORTIZATION OF REAL ESTATE		(88	)		(114	)		(114	)		(29	)		(31	)		(30	)		(33	)		(123	)		(11	)		(11	)		(11	)		(12	)		(45	)
NET INCOME		5,107			3,931			7,388			(27	)		223			85			(120	)		161			(141	)		243			799			(360	)		541

12

COUSINS PROPERTIES INCORPORATED
NET INCOME AND FUNDS FROM OPERATIONS-SUPPLEMENTAL DETAIL
(in thousands, except per share amounts, percentages and ratios)

JOINT VENTURES	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008  1st			2008  2nd			2008  3rd			2008  4th			2008 YTD
COUSINS’ SHARE OF CL REALTY, LLC (2):		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
RESIDENTIAL LOT AND TRACT SALES, NET OF COS		3,457			9,052			6,629			330			976			280			150			1,736			101			1,093			885			716			2,795
INTEREST EXPENSE		0			0			0			0			0			(48	)		(51	)		(99	)		(44	)		(40	)		(88	)		(74	)		(246	)
OTHER, NET		(220	)		(150	)		(137	)		(53	)		(58	)		(210	)		(317	)		(638	)		1,110			(12	)		(100	)		(340	)		658
IMPAIRMENT LOSS		0			0			0			0			0			0			0			0			0			0			0			(325	)		(325	)
FUNDS FROM OPERATIONS		3,237			8,902			6,492			277			918			22			(218	)		999			1,167			1,041			697			(23	)		2,882
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			0			0
NET INCOME		3,237			8,902			6,492			277			918			22			(218	)		999			1,167			1,041			697			(23	)		2,882
COUSINS’ SHARE OF PINE MOUNTAIN BUILDERS, LLC (2):		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
RESIDENTIAL LOT AND TRACT SALES, NET OF COS		398			725			739			(5	)		18			(7	)		35			41			6			43			0			106			155
OTHER, NET		0			0			0			0			0			0			0			0			0			0			0			(1	)		(1	)
FUNDS FROM OPERATIONS		398			725			739			(5	)		18			(7	)		35			41			6			43			0			105			154
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			0			0
NET INCOME		398			725			739			(5	)		18			(7	)		35			41			6			43			0			105			154
COUSINS’ SHARE OF HANDY ROAD ASSOCIATES, LLC (2):								50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%		50	%
RESIDENTIAL LOT AND TRACT SALES, NET OF COS		0			0			0			0			0			0			0			0			0			0			0			0			0
INTEREST EXPENSE		0			0			(138	)		0			0			0			0			0			(23	)		(12	)		(18	)		(39	)		(92	)
OTHER, NET		0			0			(155	)		(43	)		(41	)		(43	)		(48	)		(175	)		(7	)		(6	)		(7	)		(7	)		(27	)
FUNDS FROM OPERATIONS		0			0			(293	)		(43	)		(41	)		(43	)		(48	)		(175	)		(30	)		(18	)		(25	)		(46	)		(119	)
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			0			0			0			0			0			0			0			0			0			0			0			0
NET INCOME (LOSS)		0			0			(293	)		(43	)		(41	)		(43	)		(48	)		(175	)		(30	)		(18	)		(25	)		(46	)		(119	)
COUSINS’ SHARE OF VERDE GROUP, LLC (2):					4.94	%		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
RESIDENTIAL LOT AND TRACT SALES, NET OF COS		0			0			0			0			0			0			0			0			0			0			0			0			0
OTHER, NET		0			(483	)		(214	)		0			0			0			0			0			0			0			0			0			0
DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			(62	)		0			0			0			0			0			0			0			0			0			0			0
FUNDS FROM OPERATIONS		0			(545	)		(214	)		0			0			0			0			0			0			0			0			0			0
DEPRECIATION & AMORTIZATION OF REAL ESTATE		0			(439	)		(467	)		0			0			0			0			0			0			0			0			0			0
NET INCOME (LOSS)		0			(984	)		(681	)		0			0			0			0			0			0			0			0			0			0

13

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, 2007.

14

COUSINS PROPERTIES INCORPORATED
DEVELOPMENT PIPELINE (1)
As of December 31, 2008
($ in thousands)

															Cousins’			Cousins’		Actual or
	Company		Total			Leased GLA (%)							Cousins’		Share of			Share of		Projected Dates
	Owned		Project			Total Project			Cousins’		Approximate		Share of		Cost Incurred			Remaining		for Completion and
Project	GLA (2)		GLA (3)			(fully executed)			Ownership %		Total Cost		Total Cost		at 12/31/08			Costs		Fully Operational/Sold
OFFICE
Terminus 200 (Atlanta, GA)		565,000		565,000			3%			50%	$	173,300	$	86,650	$	44,387		$	42,263	const. - 3Q-09 fully operational 3Q-10
191 Peachtree Tower (4) (Atlanta, GA)		1,221,000		1,221,000			74%	(5)		100%		233,750		233,750		198,553			35,197	acquired 3Q-06 fully stabilized 2Q-12
Palisades West (Austin, TX)
Building 2		157,000		157,000			21%			50%		38,100		19,050		13,607			5,443	const. - 4Q-08 fully operational 4Q-09
TOTAL OFFICE		1,943,000		1,943,000								445,150		339,450		256,547			82,903
MULTI-FAMILY
Glenmore Garden Villas (Charlotte, NC)	71 Units		71 Units				N/A			50%		27,600		13,800		5,000			8,800	const. - 4Q-11 fully sold - 2Q-12
TOTAL MULTI-FAMILY	71 Units		71 Units		(6)							27,600		13,800		5,000			8,800
RETAIL
Tiffany Springs MarketCenter (Kansas City, MO)		249,000		587,000			89%			88.5%		59,700		52,828		49,320			3,508	const. - 3Q-08 fully operational 3Q-09
The Avenue Forsyth (Suburban Atlanta, GA)
Phase IA		473,000		473,000			56%			88.5%										const. - 2Q-08 fully operational 2Q-09
Phase IB		64,000		64,000			0%			88.5%										const. - 3Q-10 fully operational 3Q-11
Total — Avenue Forsyth		537,000		537,000								145,100		128,400		108,980			19,420
TOTAL RETAIL		786,000		1,124,000								204,800		181,228		158,300			22,928
Accumulated Depreciation on Partially
Operational Properties		—		—								—		—		(4,202	)
TOTAL PORTFOLIO		2,729,000		3,067,000							$	677,550	$	534,478	$	415,645	(7)	$	114,631

15

COUSINS PROPERTIES INCORPORATED
DEVELOPMENT PIPELINE (1)
As of December 31, 2008
($ in thousands)

(1)	This schedule includes all Office, Multi-Family and Retail projects under construction and redevelopment from the commencement of construction until the projects become fully operational pursuant to accounting principles generally accepted in the United States. Single-family residential projects are included on a separate schedule in this package. Amounts included in the total cost columns represent the estimated costs upon completion of the project and achievement of fully operational status. Significant estimation is required to derive these costs and the final costs may differ from these estimates. The projected dates for completion and fully operational status shown above are also estimates and are subject to change as the projects proceed through the development process.
(2)	Company owned GLA includes square footage owned either directly by the Company or by a joint venture in which the Company is a partner.
(3)	Total project GLA includes anchor stores that may own their own property and other non-owned property contained within the named development.
(4)	191 Peachtree Tower is under redevelopment and repositioning and is treated as a development property for the purposes of this schedule, although its cost basis is included in operating properties on the Company’s condensed consolidated balance sheets. 201 Peachtree, a 7,500 square foot building adjacent to 191 Peachtree Tower, is also under redevelopment and is included in the amounts above.
(5)	Leased square footage includes 65,000 square feet occupied by the Company.
(6)	As of December 31, 2008, the Company had 124 unsold residential units remaining in the recently completed 137-unit 10 Terminus project. In addition, there are only four unsold commercial units remaining in the 50 Biscayne multi-family project as of December 31, 2008.
(7)	Reconciliation to Condensed Consolidated Balance Sheet

Total Cousins’ Share of Cost Incurred per above schedule	$	415,645
Less: Operating property under redevelopment/repositioning		(198,553	)
Less: Investment in unconsolidated joint ventures
Palisades West		(13,607	)
Terminus 200		(44,387	)
Glenmore Garden Villas		(5,000	)
Add: Prudential’s 11.5% interest in Tiffany Springs MarketCenter		5,418
Add: Prudential’s 11.5% interest in The Avenue Forsyth		13,066
Consolidated projects under development per balance sheet	$	172,582

16

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
BY PROPERTY TYPE
As of December 31, 2008

								Percent Leased
								(Fully Executed)
					Company’s
	Metropolitan		Rentable		Ownership			Prior Quarter			Current Quarter
Property Description	Area	State	Square Feet		Interest			9/30/2008			12/31/2008
I. OFFICE OPERATING PROPERTIES
Gateway Village	Charlotte	North Carolina		1,065,000		50.00	%		100	%		100	%
The American Cancer Society Center	Atlanta	Georgia		993,000		100.00	%		100	%		100	%
Terminus 100	Atlanta	Georgia		656,000		100.00	%		95	%		97	%
One Georgia Center (a)	Atlanta	Georgia		375,000		88.50	%		100	%		100	%
Emory Crawford Long Medical Office Tower	Atlanta	Georgia		358,000		50.00	%		98	%		100	%
Ten Peachtree Place	Atlanta	Georgia		260,000		50.00	%		92	%		92	%
Palisades West Building 1	Austin	Texas		216,000		50.00	%		100	%		100	%
The Points at Waterview	Dallas	Texas		203,000		100.00	%		100	%		98	%
Lakeshore Park Plaza (b)	Birmingham	Alabama		196,000		100.00	%		96	%		96	%
Meridian Mark Plaza	Atlanta	Georgia		160,000		100.00	%		100	%		92	%
555 North Point Center East	Atlanta	Georgia		152,000		100.00	%		98	%		98	%
333 North Point Center East	Atlanta	Georgia		130,000		100.00	%		100	%		100	%
200 North Point Center East	Atlanta	Georgia		130,000		100.00	%		100	%		100	%
100 North Point Center East	Atlanta	Georgia		128,000		100.00	%		97	%		97	%
600 University Park Place (b)	Birmingham	Alabama		123,000		100.00	%		100	%		100	%
Galleria 75	Atlanta	Georgia		114,000		100.00	%		72	%		39	%
Cosmopolitan Center	Atlanta	Georgia		85,000		100.00	%		93	%		94	%
Presbyterian Medical Plaza at University	Charlotte	North Carolina		69,000		11.50	%		83	%		83	%
AtheroGenics	Atlanta	Georgia		51,000		100.00	%		100	%		100	%
Inhibitex	Atlanta	Georgia		51,000		100.00	%		100	%		100	%
Total Office Operating Portfolio				5,515,000								97	%
OFFICE DEVELOPMENT/REDEVELOPMENT PROPERTIES (c)
191 Peachtree Tower (d)	Atlanta	Georgia		1,221,000		100.00	%		89	%		74	%
Terminus 200 (a)	Atlanta	Georgia		565,000		50.00	%		3	%		3	%
Palisades West Building 2	Austin	Texas		157,000		50.00	%		21	%		21	%
Total Office Development/Redevelopment Properties				1,943,000
TOTAL OFFICE, OPERATING AND DEVELOPMENT/REDEVELOPMENT				7,458,000

17

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
BY PROPERTY TYPE
As of December 31, 2008

								Percent Leased
					Company’s			(Fully Executed)
	Metropolitan		Rentable		Ownership			Prior Quarter			Current Quarter
Property Description	Area	State	Square Feet		Interest			9/30/2008			12/31/2008
II.  RETAIL OPERATING PROPERTIES
The Avenue Murfreesboro	Nashville	Tennessee		749,000		50.00	%		79	%		75	%
The Avenue Carriage Crossing (b)	Memphis	Tennessee		511,000		100.00	%		92	%		83	%
North Point MarketCenter	Atlanta	Georgia		401,000		10.32	%		100	%		83	%
Greenbrier MarketCenter	Chesapeake	Virginia		376,000		10.32	%		99	%		99	%
The Avenue Webb Gin	Atlanta	Georgia		356,000		100.00	%		81	%		81	%
The Avenue Viera	Viera	Florida		332,000		11.50	%		95	%		94	%
The Avenue West Cobb	Atlanta	Georgia		257,000		11.50	%		93	%		83	%
The Avenue East Cobb	Atlanta	Georgia		231,000		11.50	%		100	%		98	%
San Jose MarketCenter	San Jose	California		214,000		100.00	%		97	%		98	%
The Avenue Peachtree City	Atlanta	Georgia		183,000		11.50	%		98	%		94	%
Viera MarketCenter	Viera	Florida		178,000		11.50	%		95	%		95	%
Los Altos MarketCenter	Long Beach	California		157,000		10.32	%		100	%		84	%
Total Retail Operating Properties				3,945,000								84	%
RETAIL DEVELOPMENT PROPERTIES (c)
The Avenue Forsyth (a)	Atlanta	Georgia		537,000		88.50	%		59	%		56	%
Tiffany Springs MarketCenter (a)	Kansas City	Missouri		249,000		88.50	%		69	%		73	%
Total Retail Development Properties				786,000
TOTAL RETAIL, OPERATING AND DEVELOPMENT				4,731,000
III. INDUSTRIAL OPERATING PROPERTIES
Lakeside Ranch Business Park – Building 20 (b)	Dallas	Texas		749,000		100.00	%		48	%		48	%
Jefferson Mill Business Park – Building A	Atlanta	Georgia		459,000		75.00	%		0	%		0	%
King Mill Distribution Park – Building 3A	Atlanta	Georgia		417,000		75.00	%		100	%		100	%
King Mill Distribution Park – Building 3B	Atlanta	Georgia		379,000		75.00	%		0	%		0	%
TOTAL INDUSTRIAL OPERATING PROPERTIES				2,004,000								40	%
TOTAL PORTFOLIO OPERATING AND DEVELOPMENT				14,193,000

18

COUSINS PROPERTIES INCORPORATED
PORTFOLIO LISTING
BY PROPERTY TYPE & GEOGRAPHICAL CONCENTRATION
As of December 31, 2008

			Company		Weighted			Percent Leased -
			Share of		Portfolio			Fully Executed
	Rentable		Rentable		Ownership			Excludes
	Square Feet		Square Feet		%			Development Properties
SUMMARY BY TYPE
Office		7,458,000		6,043,000		60	%		97	%
Retail		4,731,000		2,384,000		24	%		84	%
Industrial		2,004,000		1,690,000		16	%		40	%
TOTAL		14,193,000		10,117,000		100	%
SUMMARY BY STATE
Georgia		8,649,000		6,685,000		66	%		82	%
Texas		1,325,000		1,139,000		11	%		63	%
Tennessee		1,260,000		886,000		9	%		79	%
North Carolina		1,134,000		540,000		5	%		100	%
Alabama		319,000		319,000		3	%		98	%
California		371,000		230,000		2	%		97	%
Missouri		249,000		220,000		2	%		N/A
Florida		510,000		59,000		1	%		94	%
Virginia		376,000		39,000		1	%		99	%
		14,193,000		10,117,000		100	%

(a)	This project is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale may be disproportionate.
(b)	These projects are shown as 100% owned by the Company; however, they are owned in a joint venture with a third party who may receive a participation in operations and/or on sale of the property depending upon achievement of certain thresholds.
(c)	These properties are under construction, redevelopment and/or in lease up.
(d)	Operating property purchased with intent to redevelop and reposition. 201 Peachtree, a 7,500 square foot building adjacent to 191 Peachtree Tower, is also under redevelopment and is included in the amounts above.

19

COUSINS PROPERTIES INCORPORATED
SAME PROPERTY INFORMATION

	Fourth Quarter 2008 vs
	Third Quarter 2008									2008 vs 2007
	Office			Retail			Total			Office			Retail			Total
Rental Property Revenues (1) less Operating Expenses		3.8	%		-11.1	%		-2.1	%		10.2	%		-2.3	%		5.1	%
Cash Basis Rental Property Revenues (2) less Operating Expenses		6.1	%		-10.3	%		-0.5	%		12.6	%		-1.8	%		6.7	%

Note: The following properties are included in the same property portfolio:	Office
	Gateway Village	333 Northpoint Center East
	The American Cancer Society Center	200 Northpoint Center East
	One Georgia Center	100 Northpoint Center East
	Emory Crawford Long Medical Office Tower	600 University Park Place
	Ten Peachtree Place	Galleria 75
	The Points at Waterview	Cosmopolitan Center
	Lakeshore Park Plaza	Presbyterian Medical Plaza
	Meridian Mark Plaza	AtheroGenics
	555 Northpoint Center East	Inhibitex
	Terminus 100 (4Q to 3Q only)
	Retail
	The Avenue Carriage Crossing	The Avenue Peachtree City
	North Point MarketCenter	Viera MarketCenter
	Greenbrier MarketCenter	Los Altos MarketCenter
	The Avenue Viera	San Jose MarketCenter (4Q to 3Q only)
	The Avenue West Cobb	The Avenue Webb Gin (4Q to 3Q only)
	The Avenue East Cobb

(1)	Rental Property Revenues is Total Rental Property Revenues of the Company and its unconsolidated joint ventures.
(2)	Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and its unconsolidated joint ventures. It excludes straight-line rents and amortization of above and below market leases.

20

COUSINS PROPERTIES INCORPORATED
SQUARE FEET EXPIRING
As of December 31, 2008

OFFICE

As of December 31, 2008, the Company’s office portfolio included 20 commercial office buildings, excluding all properties currently under development, held for redevelopment and buildings in lease-up stage. The weighted average remaining lease term of these office buildings was approximately seven years as of December 31, 2008. 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:

	2009			2010			2011			2012			2013			2014			2015			2016			2017			2018 & Thereafter			Total
Total (including Company’s % share of Joint Venture Properties):
Square Feet Expiring (1)		433,519			188,078			450,333			184,441			446,430			219,266			247,014			636,858			427,495			1,086,233			4,319,667
% of Leased Space		10	%		4	%		11	%		4	%		10	%		5	%		6	%		15	%		10	%		25	%		100	%
Annual Contractual
Rent (000’s) (2)	$	5,965		$	3,023		$	6,167		$	3,328		$	8,604		$	4,967		$	4,823		$	11,777		$	11,410		$	23,566		$	83,630
Annual Contractual
Rent/Sq. Ft. (2)	$	13.76		$	16.07		$	13.69		$	18.04		$	19.27		$	22.65		$	19.53		$	18.49		$	26.69		$	21.70		$	19.36
Wholly Owned:
Square Feet Expiring (1)		406,592			175,244			431,439			131,148			300,243			197,287			228,604			99,251			346,997			726,329			3,043,134	(3)
% of Leased Space		13	%		6	%		14	%		4	%		10	%		6	%		9	%		3	%		11	%		24	%		100	%
Annual Contractual
Rent (000’s) (2)	$	5,584		$	2,802		$	5,945		$	2,272		$	5,914		$	4,414		$	4,551		$	1,812		$	9,430		$	17,124		$	59,848
Annual Contractual
Rent/Sq. Ft. (2)	$	13.73		$	15.99		$	13.78		$	17.32		$	19.70		$	22.37		$	19.91		$	18.26		$	27.18		$	23.58		$	19.67
Joint Venture:
Square Feet Expiring (1)		41,857			19,770			32,285			136,412			278,700			43,958			23,697			1,071,594			159,886			500,571			2,308,730	(4)
% of Leased Space		2	%		1	%		1	%		6	%		12	%		2	%		1	%		46	%		7	%		22	%		100	%
Annual Contractual
Rent (000’s) (2)	$	668		$	359		$	423		$	2,737		$	5,185		$	1,106		$	370		$	19,869		$	3,960		$	10,327		$	45,004
Annual Contractual
Rent/Sq. Ft. (2)	$	15.97		$	18.13		$	13.11		$	20.06		$	18.60		$	25.17		$	15.60		$	18.54		$	24.77		$	20.63		$	19.49

(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)	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, 2008 out of approximately 3,172,000 total rentable square feet.
(4)	Rentable square feet leased as of December 31, 2008 out of approximately 2,343,000 total rentable square feet.

21

COUSINS PROPERTIES INCORPORATED
SQUARE FEET EXPIRING
As of December 31, 2008

RETAIL

As of December 31, 2008, the Company’s retail portfolio included 12 retail properties, excluding all properties currently under development and/or in lease-up. The weighted average remaining lease term of these retail properties was approximately nine years as of December 31, 2008. 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:

																												2018 &
	2009			2010			2011			2012			2013			2014			2015			2016			2017			Thereafter			Total
Total (including Company’s % share of Joint Venture Properties):
Square Feet Expiring (1)		37,934			23,202			89,065			70,643			40,304			20,040			82,800			352,888			188,378			508,127			1,413,381
% of Leased Space		3	%		2	%		6	%		5	%		3	%		1	%		6	%		25	%		13	%		36	%		100	%
Annual Contractual Rent (000’s)(2)	$	640		$	529		$	2,336		$	1,649		$	1,063		$	531		$	2,119		$	9,143		$	5,512		$	8,274		$	31,796
Annual Contractual Rent/Sq. Ft.(2)	$	16.86		$	22.81		$	26.22		$	23.34		$	26.38		$	26.51		$	25.59		$	25.91		$	29.26		$	16.28		$	22.50
Wholly Owned:
Square Feet Expiring (1)		16,937			3,204			61,159			36,594			16,635			3,350			52,767			332,123			142,754			255,111			920,634	(3)
% of Leased Space		2	%		0	%		7	%		4	%		2	%		0	%		6	%		36	%		15	%		28	%		100	%
Annual Contractual Rent (000’s)(2)	$	265		$	101		$	1,895		$	953		$	442		$	139		$	1,541		$	8,706		$	4,550		$	4,293		$	22,885
Annual Contractual Rent/Sq. Ft.(2)	$	15.67		$	31.45		$	30.99		$	26.05		$	26.56		$	41.47		$	29.20		$	26.21		$	31.87		$	16.83		$	24.86
Joint Venture:
Square Feet Expiring (1)		151,117			180,300			264,325			306,774			151,590			141,898			202,176			189,315			233,098			669,789			2,490,382	(4)
% of Leased Space		6	%		7	%		11	%		12	%		6	%		6	%		8	%		8	%		9	%		27	%		100	%
Annual Contractual Rent (000’s)(2)	$	2,970		$	3,833		$	4,087		$	6,113		$	3,883		$	3,284		$	4,172		$	3,951		$	4,890		$	9,996		$	47,179
Annual Contractual Rent/Sq. Ft.(2)	$	19.66		$	21.26		$	15.46		$	19.93		$	25.61		$	23.15		$	20.64		$	20.87		$	20.98		$	14.92		$	18.94

(1)	Certain leases contain termination options, with or without penalty, if co-tenancy clauses or sales volume levels are not achieved. The expiration date per the lease is used for these leases in the above table, although early termination is possible.
(2)	Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable and any percentage rents due. The contractual rental rate shown is the estimated rate in the year of expiration.
(3)	Gross leasable area leased as of December 31, 2008 out of approximately 1,081,000 total gross leasable area.
(4)	Gross leasable area leased as of December 31, 2008 out of approximately 2,864,000 total gross leasable area.

22

COUSINS PROPERTIES INCORPORATED
SQUARE FEET EXPIRING
As of December 31, 2008

INDUSTRIAL

As of December 31 2008, the Company’s operating industrial portfolio consisted of King Mill Distribution Park — Building 3, Jefferson Mill Business Park — Building A and Lakeside Ranch Business Park — Building 20. The leases provide for pass through of operating expenses and contractual rents which escalate over time. The leases expire as follows:

	2012			Total
Company’s % share of Joint Venture Properties:
Square Feet Expiring		668,671			668,671
% of Leased Space		100	%		100	%
Annual Contractual Rent (000’s) (1)	$	2,063		$	2,063
Annual Contractual Rent/Sq. Ft. (1)	$	3.09		$	3.09
Joint Venture:
Square Feet Expiring		773,021			773,021	(2)
% of Leased Space		100	%		100	%
Annual Contractual Rent (000’s) (1)	$	2,368		$	2,368
Annual Contractual Rent/Sq. Ft. (1)	$	3.06		$	3.06

(1)	Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable. The contractual rental rate shown is the estimated rate in the year of expiration.
(2)	Rentable square feet leased as of December 31, 2008 out of approximately 2,004,000 total rentable square feet.

23

COUSINS PROPERTIES INCORPORATED
TOP 25 LARGEST TENANTS
BASED ON SQUARE FEET OF TOTAL PORTFOLIO
As of December 31, 2008

			Percentage of Total Portfolio			Average Remaining
	Tenant (1)	Product Type	at the Company’s Share (2)			Lease Term (Years)
1.	Bank of America	Office		5.8	%		7.0
2.	HD Supply	Industrial		3.9	%		3.3
3.	Deloitte & Touche	Office		3.7	%		15.4
4.	Snapper	Industrial		3.4	%		3.2
5.	American Cancer Society	Office		3.0	%		13.5
6.	Georgia Department of Transportation	Office		2.8	%		9.6
7.	AT&T	Office		1.5	%		0.7
8.	Georgia Lottery Corporation	Office		1.4	%		10.9
9.	Internap Network Services	Office		1.3	%		11.3
10.	AGL Services Company	Office		1.2	%		4.3
11.	MedAssets Net Revenue Systems, LLC	Office		1.2	%		6.2
12.	Dimensional Fund Advisors	Office		1.2	%		14.8
13.	Bombardier Aerospace Corporation	Office		1.1	%		4.2
14.	Barnes & Noble	Retail		1.0	%		7.9
15.	CB Richard Ellis	Office		1.0	%		8.5
16.	Emory University	Office		0.8	%		8.0
17.	Cooper Carry	Office		0.8	%		14.0
18.	Citigroup	Office		0.8	%		9.8
19.	US South Communications	Office		0.8	%		2.4
20.	The Gap Inc.	Retail		0.8	%		3.1
21.	Premiere Global Services, Inc.	Office		0.7	%		9.7
22.	KIDS II, Inc.	Office		0.7	%		7.1
23.	Best Buy	Retail		0.7	%		9.5
24.	Limited Brands	Retail		0.7	%		8.2
25.	Turner Broadcasting System, Inc.	Office		0.6	%		2.4
	Total leased square feet of Top 25 Largest Tenants			40.9	%		8.0

(1)	In some cases, the actual tenant may be an affiliate of the entity shown.
(2)	Percentages are based on square footage of all office, retail and industrial properties, whether operating, under development, held for redevelopment or in the lease-up stage.

24

COUSINS PROPERTIES INCORPORATED
INVENTORY OF LAND HELD
As of December 31, 2008

		Company's			Developable					Cost
		Ownership			Land Area			Year		Basis
Description and Location	Zoned Use	Interest			(Acres)			Acquired		($000)(1)
CONSOLIDATED
Round Rock Land Austin, TX	Retail and Commercial		100	%		60			2005	$	17,115
King Mill Distribution Park Suburban Atlanta, GA	Industrial		100	%		130	(2)		2005		17,018
Jefferson Mill Business Park Suburban Atlanta, GA	Industrial and Commercial		100	%		172	(2)		2006		13,702
Terminus Atlanta, GA	Mixed Use		100	%		4			2005		11,287
615 Peachtree Street Atlanta, GA	Mixed Use		100	%		2			1996		10,164
Blalock Lakes Suburban Atlanta, GA	Residential		100	%		1,205			2008		9,646
Lakeside Ranch Business Park Dallas, TX	Industrial and Commercial		100	%(3)		48			2006		9,191
505 / 511 / 555 / 557 Peachtree Street Atlanta, GA	Mixed Use		100	%		1			2004		5,988
Land Adjacent to The Avenue Forsyth Suburban Atlanta, GA	Retail		100	%		11			2007		5,027
Research Park V Austin, TX	Commercial		100	%		6			1998		4,890
Lancaster Dallas, TX	Industrial		100	%(3)		47			2007		4,842
North Point Suburban Atlanta, GA	Mixed Use		100	%		37			1970-1985		3,194
Land Adjacent to The Avenue Carriage Crossing Suburban Memphis, TN	Retail		100	%		2			2004		1,969
Land Adjacent to The Avenue Webb Gin Suburban Atlanta, GA	Retail		100	%		2			2005		946
Wildwood Office Park Suburban Atlanta, GA	Mixed Use		100	%		23			1971-1989		883
The Lakes at Cedar Grove Suburban Atlanta, GA	Mixed Use		100	%		9			2002		—	(4)
TOTAL CONSOLIDATED LAND HELD										$	115,862

25

COUSINS PROPERTIES INCORPORATED
INVENTORY OF LAND HELD
As of December 31, 2008

		Company’s			Developable				Cost
		Ownership			Land Area		Year		Basis
Description and Location	Zoned Use	Interest			(Acres)		Acquired		($000)(1)
JOINT VENTURES
TEMCO ASSOCIATES TRACTS:
Paulding County Suburban Atlanta, GA	Residential and Mixed Use		50	%		5,641		2005	$	13,161
Happy Valley Suburban Atlanta, GA	Residential		50	%		228		2003		2,754
Seven Hills Suburban Atlanta, GA	Residential and Mixed Use		50	%		85		2002-2005		—	(4)
CL REALTY, L.L.C. TRACTS:
Padre Island Corpus Christi, TX	Residential and Mixed Use		50	%		15		2005		11,545
Summer Creek Ranch Forth Worth, TX	Residential and Mixed Use		50	%		363		2002		—	(4)
Long Meadow Farms Houston, TX	Residential and Mixed Use		19	%		138		2002		—	(4)
Waterford Park Rosenberg, TX	Commercial		50	%		37		2005		—	(4)
Summer Lakes Rosenberg, TX	Commercial		50	%		4		2003		—	(4)
Village Park McKinney, TX	Residential		50	%		2		2003-2005		—	(4)
OTHER JOINT VENTURES:
Land Adjacent to The Avenue Murfreesboro Suburban Nashville, TN	Retail		50	%		8		2006		6,234
Wildwood Office Park Suburban Atlanta, GA	Office and Commercial		50	%		36		1971-1989		21,258
Handy Road Associates, LLC Suburban Atlanta, GA	Large Lot Residential		50	%		1,187		2004		5,367
Total Acres						9,503

(1)	Cost Basis reflects the Company’s basis for consolidated properties and the venture’s basis for joint venture properties.
(2)	A third party has the option to purchase certain tracts aggregating approximately 145 acres through June 30, 2011, under certain circumstances, and is obligated to purchase certain other tracts aggregating approximately 89 acres on or before December 31, 2009.
(3)	This project is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale most likely will be disproportionate.
(4)	These residential communities have adjacent land that may be sold to third parties in large tracts for residential, multi-family or commercial development. The basis of these tracts and the lot inventory are included on the Inventory of Residential Lots schedule.

26

COUSINS PROPERTIES INCORPORATED
INVENTORY OF RESIDENTIAL LOTS
As of December 31, 2008

			Estimated		Estimated		Developed		Lots Sold		Lots Sold		Total		Remaining
	Year		Project Life		Total Lots to		Lots in		in Current		Year to		Lots		Lots to be		Cost
Description	Commenced		(In Years)		be Developed (1)		Inventory		Quarter		Date		Sold		Sold		Basis ($000) (2)
Cousins Real Estate Corporation (Consolidated)
The Lakes at Cedar Grove (3)		2001		10		906		73		—		—		702		204	$	5,277
Fulton County
Suburban Atlanta, GA
Callaway Gardens (50% owned)(4)		2006		8		559		107		1		10		12		547		13,709
Harris County
Pine Mountain, GA
Blalock Lakes		2006		9		141		94		—		1		16		125		36,317
Coweta County
Newnan, GA
Longleaf at Callaway (5)		2002		7		138		14		1		2		124		14		436
Harris County
Pine Mountain, GA
River’s Call		1999		11		107		13		—		1		94		13		554
East Cobb County
Suburban Atlanta, GA
Tillman Hall		2008		3		29		29		—		—		—		29		2,904
Gwinnett County
Suburban Atlanta, GA
Total consolidated						1,880		330		2		14		948		932		59,197
Temco Associates (50% owned) (6)
Bentwater		1998		11		1,676		5		—		—		1,671		5		16
Paulding County
Suburban Atlanta, GA
The Georgian (75% owned)		2003		14		1,385		259		—		1		288		1,097		23,221
Paulding County
Suburban Atlanta, GA
Seven Hills		2003		9		1,077		259		—		7		634		443		16,292
Paulding County
Suburban Atlanta, GA
Harris Place		2004		6		27		9		—		—		18		9		649
Paulding County
Suburban Atlanta, GA
Total Temco						4,165		532		—		8		2,611		1,554		40,178
CL Realty, LLC (50% owned) (6)
Long Meadow Farms (37.5% owned)		2003		14		2,106		155		1		4		603		1,503		19,173
Fort Bend County
Houston, TX
Summer Creek Ranch		2003		13		2,568		187		—		3		796		1,772		22,948
Tarrant County
Fort Worth, TX
Bar C Ranch		2004		15		1,199		138		—		1		176		1,023		8,251
Tarrant County
Fort Worth, TX
Summer Lakes		2003		10		1,144		177		—		31		325		819		7,472
Fort Bend County
Rosenberg, TX

27

COUSINS PROPERTIES INCORPORATED
INVENTORY OF RESIDENTIAL LOTS
As of December 31, 2008

			Estimated		Estimated			Developed			Lots Sold			Lots Sold			Total			Remaining
	Year		Project Life		Total Lots to			Lots in			in Current			Year to			Lots			Lots to be			Cost
Description	Commenced		(In Years)		be Developed (1)			Inventory			Quarter			Date			Sold			Sold			Basis ($000) (2)
CL Realty, LLC, continued
Southern Trails (80% owned)		2005		9		1,069			31			10			70			320			749		$	21,172
Brazoria County
Pearland, TX
Village Park		2003		7		560			17			—			4			339			221			7,024
Collin County
McKinney, TX
Waterford Park		2005		7		493			—			—			—			—			493			8,416
Fort Bend County
Rosenberg, TX
Stonewall Estates (50% owned)		2005		7		381			84			21			54			168			213			6,363
Bexar County
San Antonio, TX
Manatee River Plantation		2003		8		457			109			—			—			348			109			4,197
Manatee County
Tampa, FL
Stillwater Canyon		2003		8		335			6			—			—			226			109			2,317
Dallas County
DeSoto, TX
Creekside Oaks		2003		10		301			176			—			—			125			176			6,132
Manatee County
Bradenton, FL
Blue Valley (25% owned)		2005		7		197			3			—			—			25			172			33,327
Cherokee & Fulton Counties
Alpharetta, GA
Village Park North		2005		7		189			12			—			10			67			122			2,448
Collin County
McKinney, TX
Bridle Path Estates		2004		8		87			—			—			—			—			87			3,290
Hillsborough County
Tampa, FL
West Park		2005		8		85			—			—			—			21			64			5,264
Cobb County
Suburban Atlanta, GA
Total CL Realty						11,171			1,095			32			177			3,539			7,632			157,794
Total						17,216			1,957			34			199			7,098			10,118		$	257,169
Company Share of Total						8,161			984			11			80			3,709			4,452		$	126,229
Company Weighted Average Ownership						47	%		50	%		32	%		40	%		52	%		44	%		49	%

(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)	Includes cost basis of land tracts as detailed on the Inventory of Land Held schedule.
(3)	A third party has a participation in this project after certain thresholds are met.
(4)	Callaway Gardens is owned in a joint venture which is consolidated with the Company. The partner is entitled to a share of the profits after the Company’s capital is recovered.
(5)	Longleaf at Callaway lots are sold to a home building venture, of which the Company 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, 2008, 122 houses have been sold by this venture.
(6)	The Company owns 50% of Temco Associates and CL Realty, LLC. See the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 for a description of these entities.

28

COUSINS PROPERTIES INCORPORATED
DEBT OUTSTANDING
AS OF DECEMBER 31, 2008
($ in thousands)

											Company’s			Company’s		Total		Weighted
	Total		Ownership			Maturity		Rate End of			Share			Share		Company		Average Years
Description (Interest Rate Base, if not fixed)	Debt		Percentage			Date		Quarter			Recourse			Non-Recourse (1)		Share		to Maturity
CONSOLIDATED DEBT
CORPORATE CREDIT FACILITY, UNSECURED (LIBOR + 0.75%-1.25%)	$	311,000		100	%		8/29/2011		2.55	%(2)	$	311,000		$	—	$	311,000
UNSECURED TERM LOAN		100,000		100	%		8/29/2012		5.91	%(3)		100,000					100,000
TERMINUS 100 (INTEREST ONLY)		180,000		100	%		10/1/2012		6.13	%		5,000			175,000		180,000
THE AMERICAN CANCER SOCIETY CENTER (INTEREST ONLY UNTIL 10/1/2011) (4)		136,000		100	%		9/1/2017		6.45	%					136,000		136,000
SAN JOSE MARKETCENTER (INTEREST ONLY) (4)		83,300		100	%		12/1/2010		5.60	%					83,300		83,300
333/555 NORTH POINT CENTER EAST		28,102		100	%		11/1/2011		7.00	%		28,102					28,102
MERIDIAN MARK PLAZA		22,757		100	%		9/1/2010		8.27	%					22,757		22,757
100/200 NORTH POINT CENTER EAST (INTEREST ONLY UNTIL 7/1/2010)		25,000		100	%		6/1/2012		5.39	%					25,000		25,000
THE POINTS AT WATERVIEW		17,433		100	%		1/1/2016		5.66	%					17,433		17,433
600 UNIVERSITY PARK		12,762		100	%		8/10/2011		7.38	%					12,762		12,762
LAKESHORE PARK PLAZA		18,241		100	%		8/1/2012		5.89	%					18,241		18,241
KING MILL PROJECT I (INTEREST ONLY) (5)		2,711		75	%		8/30/2011		9.00	%					2,711		2,711
KING MILL PROJECT I (INTEREST ONLY) (5)		2,047		75	%		6/26/2009		9.00	%					2,047		2,047
JEFFERSON MILL PROJECT I (INTEREST ONLY) (5)		2,652		75	%		9/13/2009		9.00	%					2,652		2,652
VARIOUS		234		100	%	VARIOUS		VARIOUS				36			198		234
TOTAL CONSOLIDATED		942,239							4.62	%		444,138			498,101		942,239		3.9
UNCONSOLIDATED DEBT
CF MURFREESBORO ASSOCIATES (LIBOR +1.15%) ($131MM CONSTRUCTION LOAN)		109,926		50	%		7/20/2010		1.59	%		26,220			28,743		54,963
EMORY CRAWFORD LONG MEDICAL OFFICE TOWER		50,661		50	%		6/1/2013		5.90	%					25,331		25,331
THE AVENUE EAST COBB		36,834		11.5	%		8/1/2010		8.39	%					4,236		4,236
TEN PEACHTREE PLACE		27,871		50	%		4/1/2015		5.39	%					13,936		13,936
HANDY ROAD ASSOCIATES (PRIME +0.5%)		3,294		50	%		3/31/2010		3.75	%					1,647		1,647
PINE MOUNTAIN BUILDERS (PRIME)		2,781		50	%		10/24/2009		3.25	%					1,391		1,391
TERMINUS 200 LLC (LIBOR + 1.65%) ($138MM CONSTRUCTION LOAN)		44,328		50	%		6/6/2011		2.09	%		17,250			4,914		22,164
GLENMORE GARDEN VILLAS (LIBOR + 2.25%) ($13.5MM CONSTRUCTION LOANS)		7,990		50	%		10/3/2010		2.69	%		3,995	(6)				3,995
TEMCO:
BENTWATER LINKS		3,191		50	%		3/22/2009		7.98	%					1,596		1,596
BENTWATER LINKS, EQUIPMENT NOTE		6		50	%		1/15/2009		7.00	%					3		3
CL REALTY:
SUMMER LAKES (PRIME + 1.5%)		2,481		50	%		2/22/2009		4.75	%					1,241		1,241
MCKINNEY VILLAGE PARK (LIBOR + 2.25%)		1,195		50	%		3/28/2009		2.69	%					598		598
WATERFORD PARK (PRIME + 1.5%)		1,225		50	%		5/8/2009		4.75	%					613		613
TOTAL UNCONSOLIDATED		291,783							3.33	%		47,465			84,249		131,714		2.7
TOTAL ADJUSTED DEBT	$	1,234,022							4.46	%	$	491,603		$	582,350	$	1,073,953		3.7
INVESTMENT ENTITY DEBT (7)
CHARLOTTE GATEWAY VILLAGE	$	122,362		50	%		12/1/2016		6.41	%				$	61,181	$	61,181
CL REALTY:
BLUE VALLEY (PRIME)		22,960		12.5	%		9/30/2009		3.25	%					2,870		2,870
LONG MEADOW FARMS (PRIME)		1,812		18.75	%		9/8/2009		3.25	%					340		340
STONEWALL ESTATES (PRIME)		3,075		25.0	%		5/31/2010		3.25	%					769		769
TOTAL INVESTMENT ENTITY DEBT		150,209							6.23	%		—			65,160		65,160		7.5
TOTAL	$	1,384,231							4.57	%	$	491,603		$	647,510	$	1,139,113		3.9

(1)	Subject to customary carve-outs for non-recourse loans.
(2)	The Company entered into two interest rate swaps that effectively fix the interest rate on two $75 million tranches of the Company’s Corporate Credit Facility at 2.995% and 2.69%, plus the applicable spreads. The rate shown is the weighted average rate for all borrowings under the Credit Facility.
(3)	The interest rate on this instrument is LIBOR plus 0.70% to 1.20%. The Company entered into an interest rate swap that effectively fixes the underlying LIBOR rate at 5.01%. Rate at the end of the quarter represents the swap rate plus 0.90%.
(4)	The real estate and other assets of these properties are restricted under loan agreements such that these assets are not available to settle other debts of the Company.
(5)	Represents a secured note payable with Weeks Properties CW Holdings, LLC, the Company’s 25% partner in the development of King Mill Project I and Jefferson Mill Project I.
(6)	The Company has an obligation to guarantee 50% of the available amount, up to a maximum of $6.75 million.
(7)	An investment entity is defined as an entity where the Company (1) has a fixed commitment to the venture, (2) has no direct or contingent liability for any indebtedness of the venture, except for customary carve-outs, which are commonly included in non-recourse financings and (3) is not the managing member of the venture. Investment entity debt is not included in any of the financial covenant calculations in the Company’s credit facility.

29

COUSINS PROPERTIES INCORPORATED
SAME PROPERTY GROWTH
Third Quarter 2008 Compared to Fourth Quarter 2008
(in thousands, except percentages)

	Same Property
	Office									Retail							Total									Non-Same						All Properties
	Q3 2008			Q4 2008			% Change			Q3 2008		Q4 2008		% Change			Q3 2008			Q4 2008			% Change			Q3 2008			Q4 2008			Q3 2008			Q4 2008
RENTAL PROPERTY REVENUES	$	35,332		$	34,744					$	20,190	$	19,627				$	55,522		$	54,371					$	11,435		$	12,433		$	66,957		$	66,804
RENTAL PROPERTY OPERATING EXPENSES		13,433			12,004						5,637		6,691					19,070			18,695						4,756			4,474			23,826			23,169
RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES	$	21,899		$	22,740			3.8	%	$	14,553	$	12,936		-11.1	%	$	36,452		$	35,676			-2.1	%	$	6,679		$	7,959		$	43,131		$	43,635
RENTAL PROPERTY REVENUES	$	35,332		$	34,744					$	20,190	$	19,627				$	55,522		$	54,371					$	11,435		$	12,433		$	66,957		$	66,804
Less: STRAIGHT-LINE RENTS		1,153			744						365		203					1,518			947						813			765			2,331			1,712
AMORTIZATION OF LEASE INDUCEMENTS		(122	)		(139	)					21		21					(101	)		(118	)					(83	)		(204	)		(184	)		(322	)
AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES		4			5						0		0					4			5						(841	)		(841	)		(837	)		(836	)
CASH BASIS RENTAL PROPERTY REVENUES (1)		34,297			34,134						19,804		19,403					54,101			53,537						11,546			12,713			65,647			66,250
RENTAL PROPERTY OPERATING EXPENSES		13,433			12,004						5,637		6,691					19,070			18,695						4,756			4,474			23,826			23,169
CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES	$	20,864		$	22,130			6.1	%	$	14,167	$	12,712		-10.3	%	$	35,031		$	34,842			-0.5	%	$	6,790		$	8,239		$	41,821		$	43,081
RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES
RENTAL PROPERTY REVENUES	$	35,332		$	34,744					$	20,190	$	19,627				$	55,522		$	54,371					$	11,435		$	12,433		$	66,957		$	66,804
RENTAL PROPERTY OPERATING EXPENSES		13,433			12,004						5,637		6,691					19,070			18,695						4,756			4,474			23,826			23,169
	$	21,899		$	22,740					$	14,553	$	12,936				$	36,452		$	35,676					$	6,679		$	7,959		$	43,131		$	43,635
RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES:
OPERATING PROPERTIES (2)																																$	23,696		$	24,106
DISCONTINUED OPERATIONS (3)																																	(293	)		82
SHARE OF UNCONSOLIDATED JOINT VENTURES (4)																																	3,681			4,110
COMPANY’S’ SHARE OF RENTAL REVENUES LESS RENTAL PROPERTY EXPENSES																																	27,084			28,298
PARTNERS’ SHARE OF UNCONSOLIDATED JVs (5)																																	16,047			15,337
TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES																																$	43,131		$	43,635

(1)	Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and its unconsolidated joint ventures. It excludes termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases.
(2)	See reconciliation (D) of Reconciliations of Non-GAAP Financial Measures.
(3)	See reconciliation (E) of Reconciliations of Non-GAAP Financial Measures.
(4)	See reconciliation (F) of Reconciliations of Non-GAAP Financial Measures.
(5)	Same property information includes unconsolidated joint venture properties at 100%.

30

COUSINS PROPERTIES INCORPORATED
SAME PROPERTY GROWTH
Twelve Months 2008 Compared to Twelve Months 2007
(in thousands, except percentages)

	Same Property																								Non-Same						All Properties
	Office								Retail								Total
	12M 2007			12M 2008			% Change		12M 2007			12M 2008			% Change		12M 2007			12M 2008			% Change		12M 2007			12M 2008			12M 2007			12M 2008
RENTAL PROPERTY REVENUES	$	107,088		$	116,891				$	61,403		$	61,963				$	168,491		$	178,854				$	48,753		$	82,275		$	217,244		$	261,129
RENTAL PROPERTY OPERATING EXPENSES		42,600			45,857					17,589			19,141					60,189			64,998					18,568			28,357			78,757			93,355
RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES	$	64,488		$	71,034			10.2%	$	43,814		$	42,822			-2.3%	$	108,302		$	113,856			5.1%	$	30,185		$	53,918		$	138,487		$	167,774
RENTAL PROPERTY REVENUES	$	107,088		$	116,891				$	61,403		$	61,963				$	168,491		$	178,854				$	48,753		$	82,275		$	217,244		$	261,129
Less: STRAIGHT-LINE RENTS		2,437			831					826			553					3,263			1,384					5,478			8,530			8,741			9,914
AMORTIZATION OF LEASE INDUCEMENTS		(188	)		(203	)				(87	)		(22	)				(275	)		(225	)				(145	)		(591	)		(420	)		(816	)
AMORTIZATION OF ACQUIRED ABOVE MARKET LEASES		(258	)		18					0			0					(258	)		18					(4,421	)		(3,485	)		(4,679	)		(3,467	)
CASH BASIS RENTAL PROPERTY REVENUES (1)		105,097			116,245					60,664			61,432					165,761			177,677					47,841			77,821			213,602			255,498
RENTAL PROPERTY OPERATING EXPENSES		42,600			45,857					17,589			19,141					60,189			64,998					18,568			28,357			78,757			93,355
CASH BASIS RENTAL PROPERTY REVENUES LESS OPERATING EXPENSES	$	62,497		$	70,388			12.6%	$	43,075		$	42,291			-1.8%	$	105,572		$	112,679			6.7%	$	29,273		$	49,464		$	134,845		$	162,143
RECONCILIATION OF RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES
RENTAL PROPERTY REVENUES	$	107,088		$	116,891				$	61,403		$	61,963				$	168,491		$	178,854				$	48,753		$	82,275		$	217,244		$	261,129
RENTAL PROPERTY OPERATING EXPENSES		42,600			45,857					17,589			19,141					60,189			64,998					18,568			28,357			78,757			93,355
	$	64,488		$	71,034				$	43,814		$	42,822				$	108,302		$	113,856				$	30,185		$	53,918		$	138,487		$	167,774
RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES:
OPERATING PROPERTIES (2)																															$	66,506		$	90,787
DISCONTINUED OPERATIONS (3)																																(568	)		(611	)
SHARE OF UNCONSOLIDATED JOINT VENTURES (4)																																11,828			14,879
COMPANY’S’ SHARE OF RENTAL REVENUES LESS RENTAL PROPERTY EXPENSES																																77,766			105,055
PARTNERS’ SHARE OF UNCONSOLIDATED JVs (5)																																60,721			62,719
TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES																															$	138,487		$	167,774

(1)	Cash Basis Rental Property Revenues is Rental Property Revenues of the Company and its unconsolidated joint ventures. It excludes termination fees, inter-company activities, straight-line rents and amortization of acquired above market leases.
(2)	See reconciliation (D) of Reconciliations of Non-GAAP Financial Measures.
(3)	See reconciliation (E) of Reconciliations of Non-GAAP Financial Measures.
(4)	See reconciliation (F) of Reconciliations of Non-GAAP Financial Measures.
(5)	Same property information includes unconsolidated joint venture properties at 100%.

31

COUSINS PROPERTIES INCORPORATED
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
($ in thousands)

		RECONCILIATIONS	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
(A	)	ADJUSTED DEBT:
		CONSOLIDATED DEBT		302,286			467,516			315,149			367,681			477,971			557,557			676,189			676,189			793,882			787,506			852,771			942,239			942,239
		SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT		135,764			148,129			172,085			182,253			198,544			205,424			170,166			170,166			173,950			180,379			187,742			196,874			196,874
		TOTAL DEBT INCLUDING SHARE OF JV’S		438,050			615,645			487,234			549,934			676,515			762,981			846,355			846,355			967,832			967,885			1,040,513			1,139,113			1,139,113
		SHARE OF INVESTMENT ENTITY DEBT		(87,704	)		(101,085	)		(110,718	)		(113,925	)		(117,699	)		(117,762	)		(72,873	)		(72,873	)		(69,627	)		(68,745	)		(66,989	)		(65,160	)		(65,160	)
		ADJUSTED DEBT		350,346			514,560			376,516			436,009			558,816			645,219			773,482			773,482			898,205			899,140			973,524			1,073,953			1,073,953
		RECOURSE DEBT		50,238			196,824			226,855			282,264			394,356			340,480			205,658			205,658			328,106			337,110			392,422			491,603			491,603
		NON-RECOURSE DEBT		300,108			317,736			149,661			153,745			164,460			304,739			567,824			567,824			570,099			562,030			581,102			582,350			582,350
		ADJUSTED DEBT		350,346			514,560			376,516			436,009			558,816			645,219			773,482			773,482			898,205			899,140			973,524			1,073,953			1,073,953
(B	)	CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JOINT VENTURES):
		CONSOLIDATED INTEREST EXPENSE		14,623			9,094			11,119			0			531			3,265			5,020			8,816			6,275			7,367			8,705			10,804			33,151
		DISCONTINUED OPERATIONS INTEREST EXPENSE		5,870			0			0			0			0			0			0			0			0			0			0			0			0
		SHARE OF JOINT VENTURE INTEREST EXPENSE		11,163			2,814			3,534			714			711			824			1,129			3,378			1,125			1,055			1,147			1,240			4,567
		CONSOLIDATED INTEREST EXPENSE (INC SHARE OF JV’S)		31,656			11,908			14,653			714			1,242			4,089			6,149			12,194			7,400			8,422			9,852			12,044			37,718
(C	)	FIXED CHARGES:
		CONSOLIDATED INTEREST EXPENSE (INCLUDING SHARE OF JV’S)		31,656			11,908			14,653			714			1,242			4,089			6,149			12,194			7,400			8,422			9,852			12,044			37,718
		LESS INVESTMENT ENTITY DEBT INTEREST EXPENSE		(124	)		(240	)		(231	)		0			0			0			0			0			0			0			0			0			0
		PRINCIPAL PAYMENTS:
		CONSOLIDATED		6,560			5,361			3,926			628			516			536			529			2,209			519			471			486			571			2,047
		SHARE OF JOINT VENTURES		5,257			2,793			5,226			1,630			818			225			1,467			4,140			805			750			906			718			3,179
		GROUND LEASE PAYMENTS:
		CONSOLIDATED		493			671			500			22			22			22			22			88			21			23			23			23			90
		SHARE OF JOINT VENTURES		12			12			15			6			6			6			6			24			6			9			10			9			34
		TOTAL FIXED CHARGES (excluding Preferred Dividends)		43,854			20,505			24,089			3,000			2,604			4,878			8,173			18,655			8,751			9,675			11,277			13,365			43,068
		PREFERRED STOCK DIVIDENDS		8,042			15,250			15,250			3,813			3,812			3,813			3,812			15,250			3,813			3,812			3,812			3,520			14,957
		TOTAL FIXED CHARGES (including Preferred Dividends)		51,896			35,755			39,339			6,813			6,416			8,691			11,985			33,905			12,564			13,487			15,089			16,885			58,025
(D	)	RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES:
		RENTAL PROPERTY REVENUES		77,748			72,402			85,032			24,122			25,494			30,659			32,370			112,645			34,307			36,700			38,337			38,050			147,394
		RENTAL PROPERTY OPERATING EXPENSES		(26,385	)		(27,988	)		(33,955	)		(9,753	)		(11,055	)		(12,303	)		(13,028	)		(46,139	)		(13,439	)		(14,583	)		(14,641	)		(13,944	)		(56,607	)
		RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES		51,363			44,414			51,077			14,369			14,439			18,356			19,342			66,506			20,868			22,117			23,696			24,106			90,787
(E	)	INCOME FROM DISCONTINUED OPERATIONS:
		RENTAL PROPERTY REVENUES		40,477			28,132			23,766			419			363			92			(38	)		836			3			6			6			20			35
		LEASE TERMINATION FEES & OTHER INCOME		4,433			302			3,155			47			14			11			40			112			2			0			0			20			22
		RENTAL PROPERTY OPERATING EXPENSES		(15,357	)		(12,078	)		(10,257	)		(473	)		(465	)		(337	)		(241	)		(1,516	)		(238	)		(173	)		(299	)		42			(668	)
		TOTAL RENTAL PROPERTY REVENUES LESS RENTAL PROPERTY OPERATING EXPENSES		29,553			16,356			16,664			(7	)		(88	)		(234	)		(239	)		(568	)		(233	)		(167	)		(293	)		82			(611	)
		INTEREST EXPENSE		(5,870	)		0			0			0			0			0			0			0			0			0			0			0			0
		MARK-TO-MARKET DEBT ADJUSTMENT		(605	)		0			0			0			0			0			0			0			0			0			0			0			0
		PROVISION FOR INCOME TAXES		0			(126	)		(2	)		0			0			0			0			0			0			0			0			0			0
		DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			0			0			0			(12	)		(7	)		(6	)		(25	)		(7	)		(6	)		(6	)		0			(19	)
		FUNDS FROM OPERATIONS		23,078			16,230			16,662			(7	)		(100	)		(241	)		(245	)		(593	)		(240	)		(173	)		(299	)		82			(630	)
		DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(13,456	)		(10,316	)		(12,866	)		(338	)		(148	)		(167	)		(168	)		(821	)		(167	)		(168	)		(132	)		0			(467	)
		INCOME FROM DISCONTINUED OPERATIONS		9,622			5,914			3,796			(345	)		(248	)		(408	)		(413	)		(1,414	)		(407	)		(341	)		(431	)		82			(1,097	)

32

COUSINS PROPERTIES INCORPORATED
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
($ in thousands)

		RECONCILIATIONS	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
(F	)	SHARE OF INCOME FROM UNCONSOLIDATED JOINT VENTURES:
		CP VENTURE TWO LLC		1,009			1,055			1,791			313			302			1,520			266			2,401			288			253			275			139			955
		CP VENTURE FIVE LLC		0			0			1,831			311			352			258			328			1,249			345			302			209			195			1,051
		TEN PEACHTREE PLACE ASSOCIATES		399			378			373			25			62			29			58			174			59			64			83			68			274
		GATEWAY VILLAGE		1,176			1,158			1,176			294			294			294			294			1,176			294			294			294			294			1,176
		CRAWFORD LONG — CPI		95			418			539			168			184			196			147			695			212			205			202			188			807
		AVENUE MURFREESBORO		0			0			0			0			0			41			(243	)		(202	)		(37	)		12			51			10			36
		PALISADES WEST LLC		0			0			(11	)		25			32			62			8			127			27			26			27			177			257
		905 JUNIPER, LLC		0			514			0			0			0			0			0			0			0			0			0			0			0
		50 BISCAYNE, LLC		0			6,668			10,343			2,424			1,804			(3,345	)		(1,068	)		(185	)		650			(227	)		973			496			1,892
		TEMCO ASSOCIATES		5,107			3,931			7,388			(27	)		223			85			(120	)		161			(141	)		243			799			(360	)		541
		CL REALTY, LLC		3,237			8,902			6,492			277			918			22			(218	)		999			1,167			1,041			697			(23	)		2,882
		PINE MOUNTAIN BUILDERS, LLC		398			725			739			(5	)		18			(7	)		35			41			6			43			0			105			154
		HANDY ROAD ASSOCIATES, LLC		0			0			(293	)		(43	)		(41	)		(43	)		(48	)		(175	)		(30	)		(18	)		(25	)		(46	)		(119	)
		VERDE GROUP, LLC		0			(984	)		(681	)		0			0			0			0			0			0			0			0			0			0
		OTHER		193,073			18,190			143,395			(53	)		(46	)		(10	)		(254	)		(365	)		(23	)		1			(88	)		(75	)		(185	)
		NET INCOME (INCOME FROM UNCONSOLIDATED JOINT VENTURES)		204,494			40,955			173,083			3,709			4,102			(898	)		(815	)		6,096			2,817			2,239			3,497			1,168			9,721
(G	)	CONSOLIDATED RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES AND COST OF SALES:
		RESIDENTIAL LOT AND OUTPARCEL SALES — WHOLLY OWNED:
		OUTPARCEL SALES		1,400			7,004			6,788			0			0			1,700			1,300			3,000			1,600			0			3,250			0			4,850
		LOT SALES		15,300			14,929			10,497			1,426			1,476			2,851			1,196			6,949			144			1,255			497			247			2,143
		TOTAL RESIDENTIAL AND OUTPARCEL SALES		16,700			21,933			17,285			1,426			1,476			4,551			2,496			9,949			1,744			1,255			3,747			247			6,993
		RESIDENTIAL LOT AND OUTPARCEL COST OF SALES — WHOLLY-OWNED:
		OUTPARCEL COST OF SALES		929			5,637			5,132			0			0			932			1,051			1,983			845			(25	)		1,699			(59	)		2,460
		LOT COST OF SALES		11,078			10,767			7,620			1,208			1,132			2,411			1,074			5,825			101			857			218			140			1,316
		TOTAL RESIDENTIAL AND OUTPARCEL COST OF SALES		12,007			16,404			12,752			1,208			1,132			3,343			2,125			7,808			946			832			1,917			81			3,776
		OTHER INVESTMENT PROPERTY INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		0			0			11,867			8,185			0			(1	)		0			8,184			0			415			956			36			1,407
		TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		29,627			15,483			2,481			4,355			0			0			622			4,977			3,736			4,741			375			352			9,204
		OUTPARCEL SALES, TRACT SALES, RESIDENTIAL LOT SALES AND OTHER INVESTMENT PROPERTY SALES, NET -WHOLLY OWNED		34,320			21,012			18,881			12,758			344			1,207			993			15,302			4,534			5,579			3,161			554			13,828
		SUMMARY:
		OUTPARCEL SALES NET OF COS — WHOLLY OWNED		471			1,367			1,656			0			0			768			249			1,017			755			25			1,551			59			2,390
		OTHER INVESTMENT PROPERTY INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		0			0			11,867			8,185			0			(1	)		0			8,184			0			415			956			36			1,407
		TRACT SALES NET OF COS — WHOLLY OWNED		29,627			15,483			2,481			4,355			0			0			622			4,977			3,736			4,741			375			352			9,204
		LOT SALES NET OF COS — WHOLLY OWNED		4,222			4,162			2,877			218			344			440			122			1,124			43			398			279			107			827
		TOTAL WHOLLY OWNED SALES, NET		34,320			21,012			18,881			12,758			344			1,207			993			15,302			4,534			5,579			3,161			554			13,828
		SHARE OF UNCONSOLIDATED JOINT VENTURES RESIDENTIAL LOT AND TRACT SALES AND COST OF SALES:
		RESIDENTIAL LOT AND TRACT SALES — JOINT VENTURES:
		LOT SALES		32,116			41,232			38,676			1,715			3,465			1,292			2,246			8,718			1,074			1,059			436			1,170			3,739
		TRACT SALES		3,434			6,218			14,235			0			855			0			500			1,355			0			931			2,660			567			4,158
		TOTAL RESIDENTIAL LOT AND TRACT SALES		35,550			47,450			52,911			1,715			4,320			1,292			2,746			10,073			1,074			1,990			3,096			1,737			7,897
		RESIDENTIAL LOT AND TRACT COST OF SALES — JOINT VENTURES:
		LOT COST OF SALES		25,123			30,753			30,459			1,309			2,707			884			1,996			6,896			953			822			254			915			2,944
		TRACT COST OF SALES		1,236			2,828			7,560			0			392			0			312			704			0			0			965			1			966
		TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES		26,359			33,581			38,019			1,309			3,099			884			2,308			7,600			953			822			1,219			916			3,910
		RESIDENTIAL LOT SALES AND TRACT SALES, NET -JOINT VENTURES		9,191			13,869			14,892			406			1,221			408			438			2,473			121			1,168			1,877			821			3,987
		SHARE OF UNCONSOLIDATED JOINT VENTURES:
		LOT SALES LESS COST OF SALES		6,993			10,479			8,217			406			758			408			250			1,822			121			237			182			255			795
		TRACT SALES LESS COST OF SALES		2,198			3,390			6,675			0			463			0			188			651			0			931			1,695			566			3,192
		INTEREST EXPENSE		(135	)		(152	)		(284	)		(35	)		(35	)		(83	)		(85	)		(238	)		(101	)		(85	)		(139	)		(145	)		(470	)
		OTHER		(226	)		(528	)		(381	)		(141	)		(38	)		(237	)		(671	)		(1,087	)		1,014			258			(235	)		(988	)		49
		DEPRECIATION & AMORTIZATION OF NON-REAL ESTATE ASSETS		0			(62	)		0			0			0			0			0			0			(21	)		(21	)		(21	)		0			(63	)
		RESIDENTIAL LOT AND TRACT SALES, NET — SHARE OF JOINT VENTURES		8,830			13,127			14,227			230			1,148			88			(318	)		1,148			1,013			1,320			1,482			(312	)		3,503
		TOTAL RESIDENTIAL, OUTPARCEL AND TRACT FFO		43,150			34,139			33,108			12,988			1,492			1,295			675			16,450			5,547			6,899			4,643			242			17,331

33

COUSINS PROPERTIES INCORPORATED
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
($ in thousands)

		RECONCILIATIONS	2004			2005			2006			2007 1st			2007 2nd			2007 3rd			2007 4th			2007 YTD			2008 1st			2008 2nd			2008 3rd			2008 4th			2008 YTD
(H	)	2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:
		TOTAL BY TYPE:
		SECOND GENERATION LEASING RELATED COSTS		19,210			8,422			12,355			6,933			6,260			3,794			1,157			18,144			5,573			5,380			3,944			1,087			15,984
		SECOND GENERATION BUILDING IMPROVEMENTS		48			1,017			1,066			(37	)		195			293			383			834			1,363			2,995			1,066			2,624			8,048
				19,258			9,439			13,421			6,896			6,455			4,087			1,540			18,978			6,936			8,375			5,010			3,711			24,032
		TOTAL BY SEGMENT:
		OFFICE:
		SECOND GENERATION LEASING RELATED COSTS		18,882			7,820			9,332			6,919			6,260			3,794			1,157			18,130			5,573			5,380			3,944			1,087			15,984
		SECOND GENERATION BUILDING IMPROVEMENTS		(30	)		1,015			1,066			(37	)		195			293			383			834			1,363			2,995			1,066			2,624			8,048
				18,852			8,835			10,398			6,882			6,455			4,087			1,540			18,964			6,936			8,375			5,010			3,711			24,032
		RETAIL:
		SECOND GENERATION LEASING RELATED COSTS		328			602			3,023			15			0			0			0			15			0			0			0			0			0
		SECOND GENERATION BUILDING IMPROVEMENTS		78			2			0			0			0			0			0			0			0			0			0			0			0
				406			604			3,023			15			0			0			0			15			0			0			0			0			0
		TOTAL 2ND GENERATION TI & LEASING & BUILDING CAPEX		19,258			9,439			13,421			6,897			6,455			4,087			1,540			18,979			6,936			8,375			5,010			3,711			24,032
(I	)	CONSOLIDATED MULTI-FAMILY SALES AND COST OF SALES:
		MULTI-FAMILY SALES — CONSOLIDATED:
		MULTI-FAMILY SALES		0			11,233			23,134			0			0			20			0			20			0			0			5,459			2,985			8,444
		MULTI-FAMILY COST OF SALES		0			(9,405	)		(19,403	)		0			47			(23	)		100			124			0			0			(4,715	)		(2,615	)		(7,330	)
		MULTI-FAMILY SALES — CONSOLIDATED, NET		0			1,828			3,731			0			47			(3	)		100			144			0			0			744			370			1,114
		MULTI-FAMILY SALES — JOINT VENTURES:
		MULTI-FAMILY SALES		0			26,127			56,734			9,696			9,199			(11,780	)		(7,181	)		(66	)		3,321			6,171			12,239			1,560			23,291
		MULTI-FAMILY COST OF SALES		0			(19,098	)		(46,562	)		(7,407	)		(7,523	)		8,320			3,349			(3,261	)		(3,122	)		(5,976	)		(10,976	)		(1,073	)		(21,147	)
		OTHER, NET		0			153			171			135			128			115			2,764			3,142			451			(422	)		(290	)		9			(252	)
		MULTI-FAMILY SALES — SHARE OF JOINT VENTURES, NET		0			7,182			10,343			2,424			1,804			(3,345	)		(1,068	)		(185	)		650			(227	)		973			496			1,892
		TOTAL MULTI-FAMILY FFO		0			9,010			14,074			2,424			1,851			(3,348	)		(968	)		(41	)		650			(227	)		1,717			866			3,006

34

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.

     “2^nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures” is used in the valuation and analysis of real estate. Because the Company develops and acquires properties, in addition to operating existing properties, its property acquisition and development expenditures included in the Statements of Cash Flows includes both initial costs associated with developing and acquiring investment assets and those expenditures necessary for operating and maintaining existing properties at 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 Investment Entities. Investment Entities are unconsolidated joint ventures where the Company (1) has a fixed commitment to the venture, (2) has no direct or contingent liability for any indebtedness of the venture, except for customary carve-outs, which are commonly included in non-recourse financings, and (3) is not the managing member of the venture. Investment Entity debt is not included in any of the financial covenant calculations in the Company’s credit facility. Adjusted Debt is useful as a measure of the Company’s ability to meet its debt obligations and to borrow additional funds.

     “Fixed Charge Coverage Ratio” is defined as FFO plus those fixed charges which have been expensed in calculating FFO (“FFO Plus Fixed Charges”), divided by fixed charges. Fixed charges is the sum of interest expense, net of amounts capitalized, 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 Investment Entity 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. For periods other than 2005, the Company calculated FFO in

35

COUSINS PROPERTIES INCORPORATED
DISCUSSION OF NON-GAAP FINANCIAL MEASURES

accordance with 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. For the 2005 period, the Company modified its NAREIT defined calculations of FFO to include $5.0 million in income from a real estate venture related to the sale of real estate. The Company included this amount in FFO because, based on the nature of the investment, the Company believes that, for FFO purposes, this income should not be considered gain on the sale of depreciable property.

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

     “Funds From Operations, Excluding Loss on Extinguishment of Debt” is FFO adjusted to exclude loss on extinguishment of debt, which the Company has presented in the year ended December 31, 2006 in addition to NAREIT-defined FFO. During the second quarter of 2006, the Company contributed The Avenue East Cobb to CP Venture Five, LLC, one of the ventures formed with the Prudential Insurance Company of America. The Avenue East Cobb was encumbered by a mortgage note payable, which was marked-to-market upon contribution to the venture. The Company recorded 88.5%, the extent of outside ownership in the venture, of the debt mark-to-market adjustment, approximately $2.8 million, as a loss on extinguishment of debt. During the third quarter of 2006, in conjunction with the sale of Bank of America Plaza, CSC Associates, L.P. (“CSC”) repaid the non-recourse mortgage note payable on the building. The Company was obligated to CSC to fund this repayment and an additional defeasance charge. The defeasance charge and the unamortized balance of closing costs related to the origination of the note, approximately $15.4 million in the aggregate, were recorded as loss on

36

COUSINS PROPERTIES INCORPORATED
DISCUSSION OF NON-GAAP FINANCIAL MEASURES

extinguishment of debt in the third quarter of 2006. NAREIT-defined FFO includes losses on extinguishment of debt in the FFO calculation. The Company believes the charges in the second and third quarters of 2006 relate to the sale or exchange of real estate and should be excluded from FFO to provide the user with a clearer picture of ongoing funds from operations.

     “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 Investment Entities 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 borrow additional funds.

     “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.

     “Same-Property Growth” represents the percentage change in Rental Property Revenues less rental property operating expenses and in Cash Basis Rental Property Revenues less rental property operating expenses for Same Properties. Rental Property Revenues is defined as rental property revenues of the Company and its unconsolidated joint ventures, 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 or below 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.

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