CUZ Cousins Properties Inc

Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2009. 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 $7.6 million, or $0.15 per share, for the first quarter of 2009 compared with FFO of $13.8 million, or $0.27 per share, for the first quarter of 2008. Net Income Available to Common Stockholders (�Net Income Available�) was $160.6 million, or $3.13 per share, compared with Net Income Available of $1.8 million, or $0.04 per share, for the first quarter of 2008.

First quarter highlights of the Company included the following:

• As a result of a distribution from the venture to the partners, recognized approximately $167 million of deferred gain related to the June 2006 Avenue Fund transaction with Prudential.
• Sold a ground-leased outparcel at The Avenue Webb Gin for approximately $1.8 million, generating pre-tax FFO of approximately $582,000.
• Executed or renewed leases covering approximately 80,000 square feet of office space and 72,000 square feet of retail space.

Other highlights subsequent to quarter end included the following:

• In April 2009, repaid in full the $83.3 million mortgage note payable secured by the San Jose MarketCenter for approximately $70 million. The Company anticipates recognizing a gain on extinguishment of this debt of approximately $12.7 million in the second quarter of 2009.
• Executed a 50,000 square foot lease with Firethorn Holdings, LLC in Terminus 200, a 25-story office building under construction at the Company�s Terminus development in Atlanta, Georgia.

At March 31, 2009, the Company�s portfolio of operational office buildings was 90% leased, its portfolio of operational retail centers was 83% leased and its operational industrial buildings were 40% leased.

�In an extremely challenging leasing environment, our leasing team made good progress during the first quarter, leasing new space and renewing existing space,� said Tom Bell, Chairman and CEO of Cousins. �Our recently executed lease of two floors at Terminus 200 provides an encouraging start to the leasing of this asset. Equally encouraging was the purchase of our San Jose MarketCenter note at 84 cents on the dollar, which is a testament to our ability to put our strong balance sheet to work in this environment. We will continue to seek other opportunities that emerge while focusing on maintaining and strengthening our existing assets.�

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 2:00 p.m. (Eastern Time) on Wednesday, May 6, 2009, to discuss the results of the quarter ended March 31, 2009. The number to call for this interactive teleconference is (303) 275-2170. A replay of the conference call will be available for 14 days by dialing (303) 590-3000 and entering the passcode 11129149#. The replay can be accessed on the Company�s website, www.cousinsproperties.com, through the �Q1 2009 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, 2008. 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 March 31, 2009 2008 REVENUES: Rental property revenues $ 37,509 $ 34,307 Fee income 8,044 7,558 Residential lot and outparcel sales 2,548 1,744 Interest and other � 986 � � 1,360 � � 49,087 � � 44,969 � � COSTS AND EXPENSES: Rental property operating expenses 17,313 13,439 General and administrative expenses 9,762 10,599 Reimbursed general and administrative expenses 4,228 3,786 Depreciation and amortization 13,056 11,265 Residential lot and outparcel cost of sales 1,730 946 Interest expense 10,430 6,275 Other � 1,546 � � 1,755 � � 58,065 � � 48,065 � �

LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, INCOME FROM UNCONSOLIDATED JOINT VENTURES AND NONCONTROLLING INTERESTS

(8,978 ) (3,096 ) � BENEFIT FOR INCOME TAXES FROM OPERATIONS 3,941 3,217 � INCOME FROM UNCONSOLIDATED JOINT VENTURES � 1,820 � � 2,817 � �

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES

(3,217 ) 2,938 �

GAIN ON SALE OF INVESTMENT PROPERTIES, NET OF APPLICABLE INCOME TAX PROVISION

� 167,434 � � 3,792 � � INCOME FROM CONTINUING OPERATIONS 164,217 6,730 � LOSS FROM DISCONTINUED OPERATIONS � (7 ) � (407 ) � NET INCOME 164,210 6,323 � NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS � (412 ) � (671 ) � NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST 163,798 5,652 � DIVIDENDS TO PREFERRED STOCKHOLDERS � (3,227 ) � (3,813 ) � NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 160,571 � $ 1,839 � � PER COMMON SHARE-BASIC: Income from continuing operations $ 3.13 $ 0.05 Loss from discontinued operations � - � � (0.01 ) Net income available to common stockholders $ 3.13 � $ 0.04 � � PER COMMON SHARE-DILUTED: Income from continuing operations $ 3.13 $ 0.05 Loss from discontinued operations � - � � (0.01 ) Net income available to common stockholders $ 3.13 � $ 0.04 � � CASH DIVIDENDS DECLARED PER COMMON SHARE $ 0.25 � $ 0.37 � � WEIGHTED AVERAGE SHARES � 51,350 � � 51,281 � � DILUTED WEIGHTED AVERAGE SHARES � 51,350 � � 51,803 � � � COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008 (Unaudited, in thousands, except per share amounts) � � Three Months Ended March 31, 2009 2008 � Net Income Available to Common Stockholders $ 160,571 $ 1,839 Depreciation and amortization: Consolidated properties 13,056 11,265 Discontinued properties - 174 Share of unconsolidated joint ventures 2,158 1,391

Depreciation of furniture, fixtures and equipment and amortization of specifically identifiable intangible assets:

Consolidated properties (968 ) (770 ) Discontinued properties - (7 ) Share of unconsolidated joint ventures (10 ) (25 )

Gain on sale of investment properties, net of applicable income tax provision:

Consolidated (167,434 ) (3,792 ) Share of unconsolidated joint ventures (28 ) - Gain on sale of undepreciated investment properties � 209 � � 3,736 � � Funds From Operations Available to Common Stockholders $ 7,554 � $ 13,811 � � � Per Common Share - Basic: Net Income Available $ 3.13 � $ .04 � Funds From Operations $ .15 � $ .27 � Weighted Average Shares-Basic � 51,350 � � 51,281 � � Per Common Share - Diluted: Net Income Available $ 3.13 � $ .04 � Funds From Operations $ .15 � $ .27 � Weighted Average Shares-Diluted � 51,350 � � 51,803 � �

The table above shows Funds From Operations Available to Common Stockholders (�FFO�) and the related reconciliation to Net Income Available to Common Stockholders ("Net Income 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 its officers and key employees.

� � COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except share and per share amounts) � � March 31, December 31, 2009 2008

ASSETS

PROPERTIES:

Operating properties, net of accumulated depreciation of $192,988 and $182,050 in 2009 and 2008, respectively

$ 849,386 $ 853,450 Projects under development 169,427 172,582 Land held for investment or future development 122,360 115,862 Residential lots under development 60,122 59,197 Multi-family units held for sale � 70,888 � � � 70,658 � Total properties 1,272,183 1,271,749 � CASH AND CASH EQUIVALENTS 59,662 82,963 RESTRICTED CASH 4,549 3,636

NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $2,942 and $2,764 in 2009 and 2008, respectively

51,390 51,267 INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 200,726 200,850 OTHER ASSETS � 84,200 � � 83,330 � � TOTAL ASSETS $ 1,672,710 � $ 1,693,795 � �

LIABILITIES AND STOCKHOLDERS� INVESTMENT

NOTES PAYABLE $ 945,269 $ 942,239 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 55,076 65,026 DEFERRED GAIN 4,620 171,838 DEPOSITS AND DEFERRED INCOME � 6,662 � � 6,485 � � TOTAL LIABILITIES 1,011,627 1,185,588 � COMMITMENTS AND CONTINGENT LIABILITIES �

REDEEMABLE NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES

12,658 3,945 � 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 shares issued and outstanding in 2009 and 2008

74,827 74,827

7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2009 and 2008

94,775 94,775

Common stock, $1 par value, 150,000,000 shares authorized, 54,912,152 and 54,922,173 shares issued in 2009 and 2008, respectively

54,912 54,922 Additional paid-in capital 369,665 368,829 Treasury stock at cost, 3,570,082 shares in 2009 and 2008 (86,840 ) (86,840 ) Accumulated other comprehensive loss (16,121 ) (16,601 ) Cumulative undistributed net income (distributions in excess of net income) � 124,364 � � (23,189 ) �

TOTAL STOCKHOLDERS� INVESTMENT ATTRIBUTABLE TO CONTROLLING INTEREST

615,582 466,723 �

NONREDEEMABLE NONCONTROLLING INTERESTS IN CONSOLIDATED SUBSIDIARIES

� 32,843 � � 37,539 � � TOTAL STOCKHOLDERS' INVESTMENT � 648,425 � � 504,262 � � TOTAL LIABILITIES AND STOCKHOLDERS� INVESTMENT $ 1,672,710 � $ 1,693,795 �