CUZ Cousins Properties Inc

Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended March 31, 2010. 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 $14.0 million, or $0.14 per share, for the first quarter of 2010 compared with FFO of $7.6 million, or $0.15 per share, for the first quarter of 2009.

Net Loss Available to Common Stockholders was $(1.6) million, or $(0.02) per share, for the first quarter of 2010 compared with Net Income Available to Common Stockholders of $160.6 million, or $3.13 per share, for the first quarter of 2009. During the first quarter of 2009, the Company recognized approximately $167 million of deferred gain related to a joint venture that holds several retail properties.

First quarter 2010 highlights of the Company included the following:

• Sold nine outparcels at three retail centers, generating FFO of approximately $4.7 million.
• Closed 19 units at its 10 Terminus Place condominium project, generating FFO of approximately $2.2 million.
• Sold Glenmore Garden Villas in Charlotte, North Carolina, generating FFO of approximately $369,000.
• Sold 53 acres of land at Jefferson Mill Business Park, generating FFO of approximately $328,000.
• Increased the percent leased of Lakeside Ranch Business Park to 77% upon execution of a lease with Owens & Minor for 223,000 square feet.
• Executed or renewed leases covering approximately 232,000 square feet of office space and 162,000 square feet of retail space.
• Amended its Credit and Term Facilities to provide more financial flexibility.

Other highlights subsequent to quarter end included the following:

• Restructured its interest in Terminus 200 in a transaction that reduced its ownership from 50% to 20% and simultaneously extended the construction loan.
• Executed a lease for the top five floors of Terminus 200.
• Executed a 459,000 square foot lease with a Fortune 1000 Company at Jefferson Mill Business Park, bringing this building to 100% leased.
• Sold 44 acres of land at King Mill Distribution Park.

At March 31, 2010, the Company’s portfolio of operational office buildings was 88% leased, its portfolio of operational retail centers was 85% leased and its operational industrial buildings were 64% leased. After the Jefferson Mill Business Park lease discussed above, the percentage leased of the Company’s operational industrial buildings increased to 85%.

“We made good progress during the quarter in selling outparcels and non-core assets in order to improve our overall financial position,” said Larry Gellerstedt, CEO of Cousins. “We have also been rewarded in our leasing efforts in spite of the struggling economy, showing improvement in the leasing percentages of each of our product types. We are pleased with these trends and will work diligently throughout the year to ensure that they continue.”

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 Tuesday, May 11, 2010, to discuss the results of the quarter ended March 31, 2010. The number to call for this interactive teleconference is (212) 231-2901. A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21463750. The replay can be accessed on the Company’s website, www.cousinsproperties.com, through the “Q1 2010 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 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 3,500 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, availability and terms of capital and financing; national and local economic conditions; the real estate industry in general and in specific markets; the potential for recognition of additional impairments due to continued adverse market and economic conditions; leasing risks; the financial condition of existing tenants; competition from other developers or investors; the risks associated with development projects; rising interest and insurance rates; the availability of sufficient development or investment opportunities; environmental matters; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; any failure to continue to qualify for taxation as a real estate investment trust 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, 2009. The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will” or 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 such 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, except as required under U.S. federal securities laws.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands, except per share amounts)     Three Months Ended March 31, 2010 2009 REVENUES: Rental property revenues $ 37,213 $ 37,509 Fee income 8,338 8,044 Multi-family residential unit sales 10,146 - Residential lot and outparcel sales 13,819 2,548 Interest and other   124     986     69,640     49,087     COSTS AND EXPENSES: Rental property operating expenses 15,184 17,313 Multi-family residential unit cost of sales 7,970 - Residential lot and outparcel cost of sales 9,096 1,730 General and administrative expenses 9,950 9,418 Separation expenses 68 344 Reimbursed general and administrative expenses 4,418 4,228 Depreciation and amortization 13,895 13,056 Interest expense 9,781 10,430 Other   1,328     1,546     71,690     58,065     LOSS ON EXTINGUISHMENT OF DEBT   (592 )   -    

LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES

(2,642 ) (8,978 )   BENEFIT FOR INCOME TAXES FROM OPERATIONS 1,146 3,941   INCOME FROM UNCONSOLIDATED JOINT VENTURES   2,920     1,820    

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

1,424 (3,217 )   GAIN ON SALE OF INVESTMENT PROPERTIES   756     167,434     INCOME FROM CONTINUING OPERATIONS 2,180 164,217   LOSS FROM DISCONTINUED OPERATIONS   -     (7 )   NET INCOME 2,180 164,210 NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS   (526 )   (412 )   NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST 1,654 163,798   DIVIDENDS TO PREFERRED STOCKHOLDERS   (3,227 )   (3,227 )   NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS $ (1,573 ) $ 160,571       NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED $ (0.02 ) $ 3.13     DIVIDENDS DECLARED PER COMMON SHARE $ 0.09   $ 0.25     WEIGHTED AVERAGE SHARES - BASIC AND DILUTED   100,069     51,350     COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (Unaudited, in thousands, except per share amounts)         Three Months Ended March 31, 2010 2009   Net Income (Loss) Available to Common Stockholders $ (1,573 ) $ 160,571 Depreciation and amortization: Consolidated properties 13,895 13,056 Share of unconsolidated joint ventures 2,294 2,158 Depreciation of furniture, fixtures and equipment: Consolidated properties (571 ) (968 ) Share of unconsolidated joint ventures (6 ) (10 ) Gain on sale of investment properties: Consolidated (756 ) (167,434 ) Share of unconsolidated joint ventures - (28 ) Gain on sale of undepreciated investment properties   697     209     Funds From Operations Available to Common Stockholders $ 13,980   $ 7,554       Per Common Share - Basic and Diluted:   Net Income (Loss) Available $ (.02 ) $ 3.13     Funds From Operations $ .14   $ .15     Weighted Average Shares   100,069     51,350    

The table above shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to Net Income (Loss) Available to Common Stockholders 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 (loss) 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 (In thousands, except share and per share amounts)     March 31, 2010 December 31, 2009 (Unaudited)

ASSETS

PROPERTIES:

Operating properties, net of accumulated depreciation of $246,129 and $233,091 in 2010 and 2009, respectively

$ 991,762 $ 1,006,760 Land held for investment or future development 135,313 137,233 Residential lots 62,894 62,825 Multi-family units held for sale   21,295     28,504   Total properties 1,211,264 1,235,322   CASH AND CASH EQUIVALENTS 30,349 9,464 RESTRICTED CASH 3,128 3,585

NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $6,400 and $5,734 in 2010 and 2009, respectively

45,775 49,678 INVESTMENT IN UNCONSOLIDATED JOINT VENTURES 145,352 146,150 OTHER ASSETS   49,609     47,353     TOTAL ASSETS $ 1,485,477   $ 1,491,552    

LIABILITIES AND EQUITY

NOTES PAYABLE $ 580,979 $ 590,208 ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 61,688 56,577 DEFERRED GAIN 4,393 4,452 DEPOSITS AND DEFERRED INCOME   9,615     7,465     TOTAL LIABILITIES 656,675 658,702   COMMITMENTS AND CONTINGENT LIABILITIES   REDEEMABLE NONCONTROLLING INTERESTS 12,689 12,591   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 2010 and 2009

74,827 74,827

7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2010 and 2009

94,775 94,775

Common stock, $1 par value, 150,000,000 shares authorized, 104,436,442 and 103,352,382 shares issued in 2010 and 2009, respectively

104,436 103,352 Additional paid-in capital 667,597 662,216 Treasury stock at cost, 3,570,082 shares in 2010 and 2009 (86,840 ) (86,840 ) Accumulated other comprehensive loss on derivative instruments (9,549 ) (9,517 ) Distributions in excess of net income   (61,956 )   (51,402 )   TOTAL STOCKHOLDERS’ INVESTMENT 783,290 787,411   Nonredeemable noncontrolling interests   32,823     32,848   TOTAL EQUITY   816,113     820,259     TOTAL LIABILITIES AND EQUITY $ 1,485,477   $ 1,491,552