CUZ Cousins Properties Inc

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.
• 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 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.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands, except per share amounts) � � � � Three Months Ended Years Ended December 31, 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 � 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.

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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.

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 �