Cousins Properties (CUZ) 8-K Consolidated Statements of Operations

Exhibit 99.1

COUSINS PROPERTIES INCORPORATED

QUARTERLY INFORMATION PACKAGE

For the Quarter Ended June 30, 2013

TABLE OF CONTENTS

Press Release	1
Consolidated Statements of Operations	4
Funds From Operations	5
Consolidated Balance Sheets	6
Same Property Information	7
Key Performance Indicators	8
Funds From Operations – Summary	9
Funds From Operations – Supplemental Detail	10
Portfolio Listing	13
Same Property Performance – Leasing and Occupancy	14
Same Property Performance – Net Operating Income	15
Square Feet Expiring	16
Top 20 Tenants	17
Development Pipeline	18
Inventory of Land Held	19
Debt Outstanding	20
Joint Venture Information	21
Calculations and Reconciliations of Non-GAAP Financial Measures	22
Discussion of Non-GAAP Financial Measures	28

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, the availability and terms of capital and financing; the ability to refinance indebtedness as it matures; failure of purchase, sale or other contracts to ultimately close; the availability of buyers and adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial markets in particular; market conditions and changes to the Company’s strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effects of the sale of the Company’s third party management business; leasing risks, including the ability to obtain new tenants or renew expiring tenants on favorable terms, and the ability to lease newly developed, recently acquired or current vacant space; financial condition of existing tenants; volatility in interest rates and insurance rates; the availability of sufficient investment opportunities; competition from other developers or investors; the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk); loss of key personnel; potential liability for uninsured losses, condemnation or environmental issues; potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; and 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, 2012. 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.

News Release

CONTACT:
Gregg D. Adzema	Cameron Golden
Executive Vice President and	Vice President, Investor Relations and
Chief Financial Officer	Corporate Communications
(404) 407-1116	(404) 407-1984
greggadzema@cousinsproperties.com	camerongolden@cousinsproperties.com

COUSINS REPORTS RESULTS FOR THE SECOND QUARTER OF 2013

Accelerates Earnings Call to July 30 at 8 a.m. ET

Highlights

• Funds From Operations for the quarter was $0.12 per share, $0.14 per share before preferred stock redemption charges.

• Same property net operating income for the quarter increased 4.7% over prior year.

• Leased or renewed 413,000 square feet of office and retail space.

• Acquired 816 Congress, a 435,000-square-foot Class-A office tower in downtown Austin, Texas.

• Commenced construction of Colorado Tower, a 371,000-square-foot Class-A office tower in downtown Austin, Texas.

ATLANTA (July 29, 2013) –Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter ended June 30, 2013.

“It was another solid quarter, highlighted by the 816 Congress acquisition and the commencement of Colorado Tower in Austin,” said Larry Gellerstedt, President and Chief Executive Officer of Cousins. “We were also pleased with our leasing progress, particularly at Promenade and 2100 Ross, where our re-positioning efforts continue to drive results.”

Portfolio Activity

• Leased or renewed 367,000 square feet of office space and 46,000 square feet of retail space.

• The office and retail portfolios finished the quarter 90% occupied on a same property basis, up from 87% in the prior year.

Transaction Activity

• Completed a public offering of 16.5 million shares of common stock at $10.45 per share, generating net proceeds of $165.1 million.

• Redeemed all outstanding shares of the Company’s Series A Cumulative Redeemable Preferred Stock for approximately $75 million.

• Acquired 816 Congress, a Class-A office tower in downtown Austin, Texas, for $102.4 million, after adjusting for rent credits.

• Commenced construction of Colorado Tower, a Class-A office tower in downtown Austin, Texas for an estimated total cost of $126.1 million.

• Refinanced the mortgage on Emory University Hospital Midtown Medical Office Tower, lowering the interest rate to 3.5% from 5.9%.

• Sold all remaining land at the Company’s Jefferson Mill project for $2.9 million.

• Entered into a contract to sell Tiffany Springs MarketCenter.

• Entered into a contract to sell The Avenue Murfreesboro.

Financial Results

FFO was $14.2 million, or $0.12 per share, for the second quarter of 2013 compared with $13.2 million, or $0.13 per share, for the second quarter of 2012. FFO was $25.6 million, or $0.23 per share, for the six months ended June 30, 2013, compared with $26.6 million, or $0.26 per share, for the same period in 2012.

Net loss available to common stockholders was ($5.6) million, or ($0.05) per share, for the second quarter of 2013, compared with net income available of $6.4 million, or $0.06 per share, for the second quarter of 2012. Net income available was $47.6 million, or $0.43 per share, for the six months ended June 30, 2013, compared to net loss available of ($6.7) million, or ($0.06) per share, for the same period in 2012.

In connection with the redemption of the Series A preferred stock in the second quarter of 2013, net income available was reduced by $2.7 million, or $0.02 per share. This amount represents the original issuance costs associated with the preferred stock. FFO before the effect of this reduction was $0.14 per share.

Investor Conference Call and Webcast

The Company will conduct a conference call at 8 a.m. (Eastern Time) on Tuesday, July 30, 2013, to discuss the results of the quarter ended June 30, 2013. The number to call for this interactive teleconference is (212) 231-2917.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21669478. The replay can be accessed on the Company’s website,www.cousinsproperties.com, through the “Q2 2013 Cousins Properties Incorporated Earnings Conference Call” link on the Investor Relations page.

Cousins Properties Incorporated is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company, based in Atlanta, GA primarily invests in Class-A office towers located in high growth Sunbelt markets, with a focus on Georgia, Texas and North Carolina. 

The Consolidated Statements of Operations, Consolidated Balance Sheets, a schedule entitled Funds From Operations, which reconciles Net Income (Loss) Available to FFO, and a schedule entitled Same Property Information, which reconciles same property net operating income to rental property revenues and rental property expenses, are attached to this press release. More detailed information on Net Income (Loss) 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 “Supplemental Information” and “SEC Filings” links on the “Investor Information & Filings” link of the Investor Relations page of the Company’s website atwww.cousinsproperties.com. This information may also be obtained by calling the Company’s Investor Relations Department at (404) 407-1984.

-MORE-

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, the availability and terms of capital and financing; the ability to refinance indebtedness as it matures; failure of purchase, sale or other contracts to ultimately close; the availability of buyers and adequate pricing with respect to the disposition of assets; risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial markets in particular; market conditions and changes to the Company’s strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effects of the sale of the Company’s third party management business; leasing risks, including the ability to obtain new tenants or renew expiring tenants on favorable terms, and the ability to lease newly developed, recently acquired or current vacant space; financial condition of existing tenants; volatility in interest rates and insurance rates; the availability of sufficient investment opportunities; competition from other developers or investors; the risks associated with real estate developments and acquisitions (such as construction delays, cost overruns and leasing risk); loss of key personnel; potential liability for uninsured losses, condemnation or environmental issues; potential liability for a failure to meet regulatory requirements; the financial condition and liquidity of, or disputes with, joint venture partners; any failure to comply with debt covenants under credit agreements; and 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, 2012. 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.

-MORE-

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
REVENUES:
Rental property revenues	$	38,729		$	28,922		$	73,477		$	57,221
Fee income		2,931			2,786			6,511			5,642
Land sales		433			535			1,396			1,484
Other		2,065			253			2,668			1,526
		44,158			32,496			84,052			65,873
COSTS AND EXPENSES:
Rental property operating expenses		18,576			12,521			34,406			24,370
Reimbursed expenses		1,359			1,357			3,268			2,732
General and administrative expenses		4,552			5,644			10,622			12,267
Land cost of sales		433			416			1,396			980
Interest expense		4,241			5,875			9,176			12,143
Depreciation and amortization		15,450			9,783			27,240			19,796
Separation expenses		—			79			—			292
Other		631			566			1,358			1,246
		45,242			36,241			87,466			73,826
LOSS ON EXTINGUISHMENT OF DEBT		—			—			—			(94	)
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES		(1,084	)		(3,745	)		(3,414	)		(8,047	)
PROVISION FOR INCOME TAXES FROM OPERATIONS		(1	)		(33	)		(2	)		(60	)
INCOME FROM UNCONSOLIDATED JOINT VENTURES		1,132			9,762			2,784			11,948
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES		47			5,984			(632	)		3,841
GAIN ON SALE OF INVESTMENT PROPERTIES		406			29			57,583			86
INCOME FROM CONTINUING OPERATIONS		453			6,013			56,951			3,927
INCOME (LOSS) FROM DISCONTINUED OPERATIONS:
Income (loss) from discontinued operations		280			3,543			593			(5,811	)
Gain on sale of discontinued operations		86			674			181			760
		366			4,217			774			(5,051	)
NET INCOME (LOSS)		819			10,230			57,725			(1,124	)
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		(515	)		(602	)		(1,022	)		867
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST		304			9,628			56,703			(257	)
PREFERRED SHARE ORIGINAL ISSUANCE COSTS		(2,656	)		—			(2,656	)		—
DIVIDENDS TO PREFERRED STOCKHOLDERS		(3,227	)		(3,227	)		(6,454	)		(6,454	)
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$	(5,579	)	$	6,401		$	47,593		$	(6,711	)
PER COMMON SHARE INFORMATION - BASIC AND DILUTED:
Income (loss) from continuing operations attributable to controlling interest	$	(0.05	)	$	0.02		$	0.42		$	(0.01	)
Income (loss) from discontinued operations		0.00		$	0.04		$	0.01		$	(0.05	)
Net income (loss) available to common stockholders		(0.05	)	$	0.06		$	0.43		$	(0.06	)
WEIGHTED AVERAGE SHARES - BASIC		118,661			104,165			111,430			104,082
WEIGHTED AVERAGE SHARES - DILUTED		118,661			104,165			111,593			104,082
DIVIDENDS PER COMMON SHARE	$	0.045		$	0.045		$	0.09		$	0.09

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

FUNDS FROM OPERATIONS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(Unaudited, in thousands, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Income (Loss) Available to Common Stockholders	$	(5,579	)	$	6,401		$	47,593		$	(6,711	)
Depreciation and amortization of real estate assets:
Consolidated properties		15,262			9,560			26,869			19,209
Discontinued properties		524			2,967			1,033			7,210
Share of unconsolidated joint ventures		4,167			2,495			7,371			5,156
Impairment loss on depreciable investment property net of amounts attributable to noncontrolling interests		—			—			—			10,190
Gain on sale of depreciated properties:
Consolidated		(130	)		(59	)		(57,066	)		(116	)
Discontinued properties		(86	)		(674	)		(181	)		(760	)
Share of unconsolidated joint ventures		—			(7,509	)		—			(7,509	)
Other		—			(29	)		—			(29	)
Funds From Operations Available to Common Stockholders	$	14,158		$	13,152		$	25,619		$	26,640
Per Common Share - Basic and Diluted:
Net Income (Loss) Available	$	(.05	)	$	.06		$	.43		$	(.06	)
Funds From Operations	$	.12		$	.13		$	.23		$	.26
Weighted Average Shares - Basic		118,661			104,165			111,430			104,082
Weighted Average Shares - Diluted		118,845			104,165			111,593			104,082

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, impairment losses on depreciable investment property 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 along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

	June 30, 2013			December 31, 2012
	(unaudited)
ASSETS
PROPERTIES:
Operating properties, net of accumulated depreciation of $221,331 and $255,128 in 2013 and 2012, respectively	$	838,826		$	669,652
Projects under development, net of accumulated depreciation of $0 and $183 in 2013 and 2012, respectively		5,819			25,209
Land		38,039			42,187
Other		—			151
Total properties		882,684			737,199
OPERATING PROPERTIES AND RELATED ASSETS HELD FOR SALE, net of accumulated depreciation of $12,139 and $2,947 in 2013 and 2012, respectively		51,301			1,866
CASH AND CASH EQUIVALENTS		4,925			176,892
RESTRICTED CASH		3,230			2,852
NOTES AND ACCOUNTS RECEIVABLE, net of allowance for doubtful accounts of $1,700 and $1,743 in 2013 and 2012, respectively		8,539			9,972
DEFERRED RENTS RECEIVABLE		34,707			39,378
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		127,948			97,868
OTHER ASSETS		87,454			58,215
TOTAL ASSETS	$	1,200,788		$	1,124,242
LIABILITIES AND EQUITY
NOTES PAYABLE	$	340,374		$	425,410
ACCOUNTS PAYABLE AND ACCRUED EXPENSES		34,433			34,751
DEFERRED INCOME		25,785			11,888
OTHER LIABILITIES		26,582			9,240
TOTAL LIABILITIES		427,174			481,289
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS’ INVESTMENT:
Preferred stock, 20,000,000 shares authorized, $1 par value:
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 0 and 2,993,090 shares issued and outstanding in 2013 and 2012, respectively		—			74,827
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2013 and 2012		94,775			94,775
Common stock, $1 par value, 250,000,000 shares authorized, 124,257,723 and 107,660,080 shares issued in 2013 and 2012, respectively		124,258			107,660
Additional paid-in capital		825,777			690,024
Treasury stock at cost, 3,570,082 shares in 2013 and 2012		(86,840	)		(86,840	)
Distributions in excess of cumulative net income		(206,995	)		(260,104	)
TOTAL STOCKHOLDERS’ INVESTMENT		750,975			620,342
Nonredeemable noncontrolling interests		22,639			22,611
TOTAL EQUITY		773,614			642,953
TOTAL LIABILITIES AND EQUITY	$	1,200,788		$	1,124,242

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES

SAME PROPERTY INFORMATION

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012

(Unaudited, in thousands)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Net Operating Income - Consolidated Properties
Rental property revenues	$	38,729	$	28,922	$	73,477	$	57,221
Rental property expenses		18,576	$	12,521		34,406	$	24,370
Net Operating Income - Consolidated Properties		20,153		16,401		39,071		32,851
Net Operating Income - Discontinued Operations
Rental property revenues		1,311		7,753		2,687		16,946
Rental property expenses		474		2,663		1,047		5,321
Net Operating Income - Discontinued Operations		837		5,090		1,640		11,625
Net Operating Income - Unconsolidated Joint Ventures		7,582		5,937		14,029		12,206
Total Net Operating Income	$	28,572	$	27,428	$	54,740	$	56,682
Net Operating Income:
Same property		18,611		17,768		37,605		35,850
Non-same property		9,962		9,660		17,136		20,832
Net Operating Income	$	28,572	$	27,428	$	54,740	$	56,682

This schedule shows same property net operating income and the related reconciliation to rental property revenues and rental property expenses. Net Operating Income is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. Net Operating Income, which is 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 Net Operating Income. Same Property Net Operating Income includes those office and retail properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. Same Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company’s portfolio.

COUSINS PROPERTIES INCORPORATED

KEY PERFORMANCE INDICATORS

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
Property Statistics
Number of Operating Properties (1)		35			35			32			34			30			30			31			33			33
Rentable Square Feet (in thousands)		12,572			12,573			11,688			12,678			11,827			11,827			13,111			13,546			13,546
Leverage Ratios (2)
Debt/Total Market Capitalization		46	%		42	%		39	%		41	%		36	%		36	%		32	%		32	%		32	%
Debt/Total Undepreciated Assets		37	%		38	%		36	%		38	%		35	%		35	%		35	%		33	%		33	%
Debt + Preferred/Total Market Capitalization		57	%		52	%		49	%		51	%		47	%		47	%		41	%		37	%		37	%
Debt + Preferred/Total Undepreciated Assets		46	%		47	%		45	%		47	%		45	%		45	%		44	%		38	%		38	%
Coverage Ratios (2)
Interest Coverage		3.08			3.31			3.40			3.81			3.50			3.50			3.24			4.08			3.66
Fixed Charges Coverage		1.90			1.93			1.93			2.19			2.03			2.02			1.84			2.33			2.08
Debt/Annualized EBITDA		6.45			7.03			6.55			6.65			6.07			6.07			7.09			5.80			5.80
Dividend Ratios (2)
FFO Payout Ratio		–24	%		35	%		36	%		18	%		33	%		28	%		41	%		38	%		39	%
FFO Before Certain Charges Payout Ratio		35	%		37	%		35	%		29	%		31	%		33	%		41	%		32	%		36	%
FAD Payout Ratio		–17	%		55	%		59	%		25	%		57	%		43	%		79	%		68	%		73	%
FAD Before Certain Charges Payout Ratio		80	%		61	%		59	%		51	%		51	%		55	%		79	%		51	%		61	%
Operations Ratios (2)
General and Administrative Expenses/Revenues Including Discontinued Operations		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%		14.7	%		10.0	%		12.2	%
Annualized General and Administrative Expenses/Total Undepreciated Assets		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%		1.4	%		1.0	%		1.0	%

(1) In the fourth quarter of 2012, the Company combined 100 Northpoint Center East, 200 Northpoint Center East, 333 Northpoint Center East and 555 Northpoint Center East and reported them as one property. Previous quarters were restated to be consistent with the new presentation.

(2) See calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUMMARY (1)

($ in thousands, except per share)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
NET OPERATING INCOME
OFFICE		75,388			20,598			20,013			20,452			19,844			80,907			21,837			23,894			45,731
RETAIL		31,583			8,658			7,415			7,168			6,188			29,429			4,290			4,302			8,592
OTHER		3,583			1			—			—			120			121			43			376			419
TOTAL NET OPERATING INCOME		110,554			29,257			27,428			27,620			26,152			110,457			26,170			28,572			54,742
SALES LESS COST OF SALES
LAND		5,236			385			89			378			4,063			4,915			243			276			519
OTHER		2,250			(1	)		53			—			257			309			168			(8	)		160
TOTAL SALES LESS COST OF SALES		7,486			384			142			378			4,320			5,224			411			268			679
FEE INCOME		13,821			2,856			2,786			7,343			4,812			17,797			3,580			2,931			6,511
THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74			3			77
OTHER INCOME		2,204			1,507			112			3,329			205			5,153			282			2,064			2,346
TOTAL FEE AND OTHER INCOME		35,384			9,074			8,927		��	15,461			5,853			39,315			3,936			4,998			8,934
GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			7,384			75			7,459			—			—			—
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)		(27	)		(80	)
REIMBURSED EXPENSES		(6,208	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)		(1,910	)		(1,359	)		(3,269	)
SEPARATION EXPENSES		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)		—			—			—
GENERAL AND ADMINISTRATIVE EXPENSES		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)		(6,069	)		(4,552	)		(10,622	)
LOSS ON DEBT EXTINGUISHMENT		(74	)		(94	)		—			—			—			(94	)		—			—			—
INTEREST EXPENSE		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)		(6,645	)		(6,573	)		(13,218	)
IMPAIRMENT LOSSES		(129,134	)		—			—			(488	)		—			(488	)		—			—			—
OTHER EXPENSES		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)		(946	)		(1,072	)		(2,017	)
INCOME TAX (PROVISION) BENEFIT		186			(27	)		(33	)		(60	)		30			(90	)		(1	)		(1	)		(2	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)		(205	)		(213	)		(418	)
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(5,883	)		(9,110	)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
WEIGHTED AVERAGE SHARES - BASIC		103,651			104,000			104,165			104,193			104,109			104,117			104,119			118,661			111,430
WEIGHTED AVERAGE SHARES - DILUTED		103,655			104,000			104,165			104,203			104,132			104,125			104,252			118,845			111,593
FFO PER SHARE - BASIC AND DILUTED		(0.74	)		0.13			0.13			0.25			0.14			0.64			0.11			0.12			0.23

(1) Amounts may differ slightly from other schedules contained herein due to rounding.

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
NET OPERATING INCOME
OFFICE:
CONSOLIDATED PROPERTIES:
POST OAK CENTRAL		—			—			—			—			—			—			2,459			4,328			6,787
191 PEACHTREE TOWER		14,044			3,789			3,745			3,899			3,789			15,222			4,064			4,021			8,085
THE AMERICAN CANCER SOCIETY CENTER		11,571			2,872			2,581			2,744			2,832			11,029			2,881			2,932			5,813
PROMENADE		693			2,014			2,324			2,124			2,286			8,748			2,485			2,235			4,720
NORTH POINT CENTER EAST		6,363			1,254			1,268			1,142			1,521			5,185			1,373			1,452			2,825
2100 ROSS AVENUE		—			—			—			876			635			1,511			1,101			1,305			2,406
816 CONGRESS AVENUE		—			—			—			—			—			—			—			1,098			1,098
MERIDIAN MARK PLAZA		3,863			1,015			996			1,013			1,009			4,033			1,037			1,011			2,048
LAKESHORE PARK PLAZA		2,099			559			559			513			535			2,166			592			532			1,124
THE POINTS AT WATERVIEW		1,824			504			557			516			488			2,065			505			464			969
600 UNIVERSITY PARK PLACE		1,189			384			354			376			388			1,502			412			390			802
TERMINUS 100(2)		15,537			4,063			4,039			3,922			3,785			15,809			1,627			(1	)		1,626
OTHER		(6	)		(5	)		(29	)		(3	)		(8	)		(45	)		(7	)		(4	)		(11	)
SUBTOTAL - OFFICE CONSOLIDATED		57,177			16,449			16,394			17,122			17,260			67,225			18,529			19,763			38,292
UNCONSOLIDATED PROPERTIES:
TERMINUS 100(2)		—			—			—			—			—			—			1,208			1,821			3,029
TERMINUS 200(3)		463			358			374			439			374			1,545			898			1,144			2,042
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		3,822			970			920			950			918			3,758			981			956			1,937
GATEWAY VILLAGE (4)		1,208			302			302			302			302			1,208			302			302			604
OTHER(5)		8,099			2,031			1,675			1,519			1,019			6,244			(16	)		(17	)		(33	)
SUBTOTAL - OFFICE UNCONSOLIDATED		13,592			3,661			3,271			3,210			2,613			12,755			3,373			4,206			7,579
DISCONTINUED OPERATIONS (6)		4,619			488			348			119			(28	)		927			(65	)		(75	)		(140	)
TOTAL - OFFICE NET OPERATING INCOME		75,388			20,598			20,013			20,451			19,845			80,907			21,837			23,894			45,731
RETAIL:
CONSOLIDATED PROPERTIES:
MAHAN VILLAGE		—			—			—			55			259			314			390			389			779
OTHER		(3	)		—			4			2			—			6			(2	)		1			(1	)
SUBTOTAL - RETAIL CONSOLIDATED		(3	)		—			4			57			259			320			388			390			778
UNCONSOLIDATED PROPERTIES:
THE AVENUE MURFREESBORO		4,692			1,075			1,148			1,168			1,204			4,595			1,192			1,134			2,326
CW INVESTMENTS(7)		2,410			610			610			591			587			2,398			580			578			1,158
EMORY POINT		—			—			—			(9	)		19			10			274			344			618
NORTH POINT MARKETCENTER		532			144			146			156			160			606			155			161			316
THE AVENUE EAST COBB		569			122			151			137			137			547			140			138			278
GREENBRIER MARKETCENTER		550			152			141			144			146			583			148			137			285
THE AVENUE VIERA		519			137			130			136			142			545			148			133			281
THE AVENUE WEST COBB		559			134			133			133			136			536			135			131			266
THE AVENUE PEACHTREE CITY		410			112			106			106			103			427			120			106			226
LOS ALTOS MARKETCENTER		221			71			53			56			85			265			90			88			178
VIERA MARKETCENTER		206			51			49			53			55			208			50			50			100
OTHER		(2	)		—			(1	)		—			—			(1	)		(1	)		—			(1	)
SUBTOTAL - RETAIL UNCONSOLIDATED		10,666			2,608			2,666			2,671			2,774			10,719			3,031			3,000			6,031
DISCONTINUED OPERATIONS (8)		20,920			6,050			4,745			4,440			3,155			18,390			871			912			1,783
TOTAL - RETAIL NET OPERATING INCOME		31,583			8,658			7,415			7,168			6,188			29,429			4,290			4,302			8,592
OTHER:
UNCONSOLIDATED PROPERTIES:
EMORY POINT RESIDENTIAL		—			—			—			—			122			122			44			376			420
SUBTOTAL - OTHER UNCONSOLIDATED		—			—			—			—			122			122			44			376			420
DISCONTINUED OPERATIONS OTHER (9)		3,582			1			—			—			(2	)		(1	)		(1	)		—			(1	)
TOTAL - OTHER NET OPERATING INCOME		3,582			1			—			—			120			121			43			376			419
TOTAL NET OPERATING INCOME		110,553			29,257			27,428			27,619			26,153			110,457			26,170			28,572			54,742

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
SALES LESS COST OF SALES
LAND SALES LESS COST OF SALES - CONSOLIDATED		3,382			385			89			378			4,063			4,915			243			276			519
LAND SALES LESS COST OF SALES - UNCONSOLIDATED		1,854			—			—			—			—			—			—			—			—
SUBTOTAL - LAND SALES LESS COST OF SALES		5,236			385			89			378			4,063			4,915			243			276			519
OTHER - CONSOLIDATED		2,177			—			55			—			226			281			158			—			158
OTHER - UNCONSOLIDATED		73			(1	)		(2	)		—			31			28			10			(8	)		2
SUBTOTAL - OTHER SALES LESS COST OF SALES		2,250			(1	)		53			—			257			309			168			(8	)		160
TOTAL SALES LESS COST OF SALES		7,486			384			142			378			4,320			5,224			411			268			679
FEE INCOME
DEVELOPMENT FEES		2,850			525			640			5,278			2,616			9,059			1,335			585			1,920
MANAGEMENT FEES(10)		8,857			2,099			2,051			1,944			2,070			8,164			2,030			2,146			4,176
LEASING & OTHER FEES		2,114			232			95			121			126			574			215			200			415
TOTAL - FEE INCOME		13,821			2,856			2,786			7,343			4,812			17,797			3,580			2,931			6,511
THIRD PARTY MANAGEMENT AND LEASING REVENUES
DEVELOPMENT FEES		1,374			314			272			296			37			919			—			2			2
MANAGEMENT FEES(11)		13,062			3,396			3,452			3,553			380			10,781			(3	)		1			(2	)
LEASING & OTHER FEES		4,923			1,001			2,305			940			419			4,665			77			—			77
TOTAL - THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74			3			77
OTHER INCOME
TERMINATION FEES		1,549			43			21			—			64			128			19			1,965			1,984
TERMINATION FEES - DISCONTINUED OPERATIONS		77			192			13			3,232			75			3,512			—			—			—
INTEREST AND OTHER INCOME		539			1,289			92			95			69			1,545			264			108			372
INTEREST AND OTHER INCOME - DISCONTINUED OPERATIONS		39			(17	)		(14	)		2			(3	)		(32	)		(1	)		(9	)		(10	)
TOTAL INTEREST INCOME & OTHER		2,204			1,507			112			3,329			205			5,153			282			2,064			2,346
TOTAL FEE AND OTHER INCOME		35,384			9,074			8,927			15,461			5,853			39,315			3,936			4,998			8,934
GAIN ON SALE OF THIRD PARTY MANAGEMENT AND LEASING BUSINESS		—			—			—			7,384			75			7,459			—			—			—
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)		(27	)		(80	)
REIMBURSED EXPENSES		(6,207	)		(1,376	)		(1,357	)		(1,235	)		(3,095	)		(7,063	)		(1,910	)		(1,359	)		(3,269	)
SEPARATION EXPENSES		(197	)		(213	)		(79	)		(574	)		(1,118	)		(1,985	)		—			—			—
GENERAL AND ADMINISTRATIVE EXPENSES		(24,166	)		(6,623	)		(5,646	)		(5,255	)		(5,684	)		(23,208	)		(6,069	)		(4,552	)		(10,622	)
LOSS ON DEBT EXTINGUISHMENT		(74	)		(94	)		—			—			—			(94	)		—			—			—
INTEREST EXPENSE
CONSOLIDATED DEBT:
THE AMERICAN CANCER SOCIETY CENTER		(8,979	)		(2,230	)		(2,223	)		(2,242	)		(2,237	)		(8,932	)		(2,183	)		(2,200	)		(4,383	)
191 PEACHTREE TOWER		—			(28	)		(891	)		(891	)		(891	)		(2,701	)		(890	)		(871	)		(1,761	)
UNSECURED CREDIT FACILITY		(6,205	)		(1,648	)		(777	)		(725	)		(562	)		(3,712	)		(546	)		(522	)		(1,068	)
MERIDIAN MARK PLAZA		(1,630	)		(404	)		(403	)		(402	)		(400	)		(1,609	)		(399	)		(397	)		(796	)
THE POINTS AT WATERVIEW		(958	)		(235	)		(234	)		(232	)		(230	)		(931	)		(228	)		(227	)		(455	)
MAHAN VILLAGE		—			—			(20	)		(43	)		(59	)		(122	)		(65	)		(81	)		(146	)
TERMINUS 100(2)		(7,328	)		(1,816	)		(1,808	)		(1,802	)		(1,795	)		(7,221	)		(725	)		—			(725	)
NORTH POINT CENTER EAST		(2,130	)		(332	)		(8	)		—			—			(340	)		—			—			—
600 UNIVERSITY PARK PLACE		(559	)		—			—			—			—			—			—			—			—
LAKESHORE PARK PLAZA		(548	)		—			—			—			—			—			—			—			—
OTHER		(47	)		(1	)		—			—			—			(1	)		—			—			—
CAPITALIZED		600			426			489			544			177			1,636			101			57			158
SUBTOTAL - CONSOLIDATED		(27,784	)		(6,268	)		(5,875	)		(5,793	)		(5,997	)		(23,933	)		(4,935	)		(4,241	)		(9,176	)
UNCONSOLIDATED DEBT:
TERMINUS 100(2)		—			—			—			—			—			—			(530	)		(893	)		(1,423	)
THE AVENUE MURFREESBORO		(1,812	)		(444	)		(437	)		(438	)		(430	)		(1,749	)		(431	)		(431	)		(862	)
TERMINUS 200(3)		(393	)		(126	)		(129	)		(129	)		(128	)		(512	)		(199	)		(390	)		(589	)
EMORY UNIVERSITY HOSPITAL MIDTOWN MEDICAL OFFICE TOWER		(1,441	)		(355	)		(353	)		(351	)		(349	)		(1,408	)		(347	)		(341	)		(688	)
EMORY POINT		—			—			—			—			(59	)		(59	)		(155	)		(229	)		(384	)
THE AVENUE EAST COBB		(196	)		(49	)		(48	)		(48	)		(48	)		(193	)		(48	)		(48	)		(96	)
TEN PEACHTREE PLACE		(730	)		(180	)		(80	)		—			—			(260	)		—			—			—
TEMCO ASSOCIATES		(98	)		(25	)		(15	)		—			—			(40	)		—			—			—
CL REALTY		(61	)		—			—			—			—			—			—			—			—
SUBTOTAL - UNCONSOLIDATED		(4,731	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)		(1,710	)		(2,332	)		(4,042	)
TOTAL INTEREST EXPENSE		(32,515	)		(7,447	)		(6,937	)		(6,759	)		(7,011	)		(28,154	)		(6,645	)		(6,573	)		(13,218	)

COUSINS PROPERTIES INCORPORATED

FUNDS FROM OPERATIONS - SUPPLEMENTAL DETAIL (1)

(in thousands, except per share amounts and percentages)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
IMPAIRMENT LOSSES
IMPAIRMENT LOSS - CONSOLIDATED		(100,131	)		—			—			(488	)		—			(488	)		—			—			—
IMPAIRMENT LOSS - UNCONSOLIDATED INVESTMENTS		(29,003	)		—			—			—			—			—			—			—			—
TOTAL - IMPAIRMENT LOSSES		(129,134	)		—			—			(488	)		—			(488	)		—			—			—
OTHER EXPENSES
NONCONTROLLING INTERESTS		(2,087	)		(574	)		(631	)		(608	)		(604	)		(2,415	)		(507	)		(515	)		(1,022	)
PROPERTY TAXES & OTHER HOLDING COSTS		(2,394	)		(433	)		(320	)		(518	)		(467	)		(1,738	)		(274	)		(242	)		(516	)
PREDEVELOPMENT & OTHER		(1,574	)		(187	)		(76	)		(1,397	)		37			(1,623	)		(42	)		(63	)		(105	)
ACQUISITION COSTS		(468	)		(78	)		(67	)		(350	)		(299	)		(794	)		(235	)		(333	)		(568	)
OTHER - UNCONSOLIDATED		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)		112			81			194
TOTAL - OTHER EXPENSES		(6,990	)		(1,551	)		(1,232	)		(3,040	)		(1,388	)		(7,209	)		(946	)		(1,072	)		(2,017	)
INCOME TAX (PROVISION) BENEFIT		186			(27	)		(33	)		(60	)		30			(90	)		(1	)		(1	)		(2	)
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS
CONSOLIDATED		(1,688	)		(364	)		(223	)		(256	)		(232	)		(1,075	)		(183	)		(189	)		(372	)
SHARE OF UNCONSOLIDATED JOINT VENTURES		(20	)		(5	)		(5	)		(5	)		—			(15	)		(22	)		(24	)		(46	)
TOTAL - NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		(1,708	)		(369	)		(228	)		(261	)		(232	)		(1,090	)		(205	)		(213	)		(418	)
PREFERRED STOCK DIVIDENDS AND ORIGINAL ISSUANCE COSTS		(12,907	)		(3,227	)		(3,227	)		(3,226	)		(3,227	)		(12,907	)		(3,227	)		(5,883	)		(9,110	)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
WEIGHTED AVERAGE SHARES - BASIC		103,651			104,000			104,165			104,193			104,109			104,117			104,119			118,661			111,430
WEIGHTED AVERAGE SHARES - DILUTED		103,655			104,000			104,165			104,203			104,132			104,125			104,252			118,845			111,593
FFO PER SHARE - BASIC AND DILUTED		(0.74	)		0.13			0.13			0.25			0.14			0.64			0.11			0.12			0.23

(1) Amounts may differ slightly from other schedules contained herein due to rounding.

(2) In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The Terminus 100 Consolidated line represents the Company’s share for the period prior to the joint venture formation, the Terminus 100 Unconsolidated line represents the Company’s share for the periods subsequent to the joint venture formation.

(3) In the first quarter of 2013, the Company formed a 50/50 joint venture for both Terminus 100 and Terminus 200. The first quarter 2013 Terminus 200 line includes the Company’s share for both the Company’s 20% share of the previous MSREF/T200 Joint Venture and the Company’s 50% share subsequent to the joint venture formation.

(4) The Company receives an 11.46% current return on its $10.4 million investment in Gateway Village and recognizes this amount as NOI from this venture. See Joint Venture Information included herein for further details.

(5) Other includes sold unconsolidated properties as well as Other Unconsolidated NOI. The sold unconsolidated properties include: Palisades West, Ten Peachtree Place and Presbyterian Medical Plaza. Previous quarters were restated to be consistent with the new presentation.

(6) Discontinued Office Properties includes the discontinued NOI for the following consolidated Office Properties: Cosmopolitan Center, One Georgia Center, 8995 Westside Parkway, Galleria 75 and Inhibitex.

(7) The Company recognizes a 16.00% return on its investment in CW Investments as NOI from this investment. As of December 31, 2012, its investment in CW Investments was $14.4 million. CW Investments has an investment in four retail properties: Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village and Highland City Town Center. See Joint Information included herein for further details.

(8) Discontinued Retail Properties includes the discontinued NOI for the following consolidated Retail Properties: Tiffany Springs MarketCenter, The Avenue Forsyth, The Avenue Webb Gin, The Avenue Collierville and San Jose MarketCenter.

(9) Discontinued Other Properties includes the discontinued NOI for the following consolidated Industrial Properties: King Mill Building 3, Jefferson Mill Building A and Lakeside Building 20.

(10) Management Fees include reimbursed expenses that are included in the “Reimbursed Expenses” line item.

(11) Management Fees related to third party management fee revenues include reimbursed expenses that are included in the “Third Party Management and Leasing Expenses” line item.

COUSINS PROPERTIES INCORPORATED

PORTFOLIO LISTING

OPERATING PROPERTIES

As of and For the Three Months ended June 30, 2013

								Company’s Share
	Property Description	Metropolitan Area	Rentable Square Feet		Company’s Ownership Interest			End of Period Leased			Weighted Average Occupancy (1)			% of Total Net Operating Income (2)			Property Level Debt ($000)
I.	OFFICE PROPERTIES
	191 Peachtree Tower	Atlanta		1,225,000		100.00	%		86	%		87	%		14	%		100,000
	The American Cancer Society Center	Atlanta		996,000		100.00	%		83	%		83	%		10	%		133,479
	Promenade (3)	Atlanta		775,000		100.00	%		87	%		67	%		8	%		—
	Terminus 100	Atlanta		655,000		50.00	%		96	%		96	%		7	%		67,524
	North Point Center East (4)	Atlanta		540,000		100.00	%		92	%		91	%		5	%		—
	Terminus 200	Atlanta		566,000		50.00	%		88	%		88	%		4	%		41,000
	Meridian Mark Plaza	Atlanta		160,000		100.00	%		98	%		98	%		4	%		26,006
	Emory University Hospital Midtown Medical Office Tower	Atlanta		358,000		50.00	%		100	%		99	%		3	%		37,500
	Inhibitex (6)	Atlanta		51,000		100.00	%		0	%		0	%		0	%		—
GEORGIA				5,326,000											55	%		405,509
	Post Oak Central	Houston		1,280,000		100.00	%		93	%		92	%		15	%		—
	2100 Ross Avenue	Dallas		844,000		100.00	%		81	%		65	%		5	%		—
	816 Congress	Austin		435,000		100.00	%		74	%		74	%		4	%		—
	The Points at Waterview	Dallas		203,000		100.00	%		88	%		89	%		1	%		15,399
TEXAS				2,762,000											25	%		15,399
	Lakeshore Park Plaza (3)	Birmingham		197,000		100.00	%		99	%		96	%		2	%		—
	600 University Park Place (3)	Birmingham		123,000		100.00	%		98	%		98	%		1	%		—
ALABAMA				320,000											3	%		—
	Gateway Village (5)	Charlotte		1,065,000		50.00	%		100	%		100	%		1	%		30,226
NORTH CAROLINA				1,065,000											1	%		30,226
	TOTAL OFFICE PROPERTIES			9,473,000											84	%		451,134
II.	RETAIL PROPERTIES
	The Avenue Murfreesboro (6)	Nashville		752,000		50.00	%		85	%		84	%		4	%		45,927
	Mt. Juliet Village (5)	Nashville		91,000		50.50	%		80	%		80	%		1	%		3,083
	The Shops of Lee Village (5)	Nashville		74,000		50.50	%		89	%		89	%		0	%		2,782
	Creek Plantation Village (5)	Chattanooga		78,000		50.50	%		98	%		98	%		0	%		3,037
TENNESSEE				995,000											5	%		54,829
	Emory Point	Atlanta		80,000		75.00	%		82	%		79	%		1	%		9,155
	North Point MarketCenter	Atlanta		401,000		10.32	%		100	%		100	%		1	%		—
	The Avenue East Cobb	Atlanta		230,000		11.50	%		98	%		86	%		1	%		4,036
	The Avenue West Cobb	Atlanta		256,000		11.50	%		100	%		95	%		0	%		—
	The Avenue Peachtree City	Atlanta		183,000		11.50	%		92	%		90	%		0	%		—
GEORGIA				1,150,000											3	%		13,191
	Tiffany Springs MarketCenter (6)	Kansas City		238,000		100.00	%		88	%		87	%		4	%		—
MISSOURI				238,000											4	%		—
	Mahan Village (3)	Tallahassee		147,000		100.00	%		90	%		90	%		1	%		14,316
	Highland City Town Center (5)	Lakeland		96,000		50.50	%		87	%		87	%		1	%		5,233
	The Avenue Viera	Viera		332,000		11.50	%		95	%		93	%		1	%		—
	Viera MarketCenter	Viera		178,000		11.50	%		94	%		94	%		0	%		—
FLORIDA				753,000											3	%		19,549
	Greenbrier MarketCenter	Chesapeake		376,000		10.32	%		100	%		100	%		0	%		—
VIRGINIA				376,000											0	%		—
	Los Altos MarketCenter	Long Beach		157,000		10.32	%		100	%		100	%		0	%		—
CALIFORNIA				157,000											0	%		—
	TOTAL RETAIL PROPERTIES			3,669,000											15	%		87,569
III.	APARTMENTS
	Emory Point	Atlanta		404,000		75.00	%		75	%		58	%		1	%		32,457
GEORGIA
	TOTAL PORTFOLIO			13,546,000											100	%		571,160

(1) Weighted average occupancy represents an average of the square footage occupied at the property during the quarter.

(2) Calculation is based on amounts for the three months ended June 30, 2013.

(3) This property is shown as 100% as it is owned through a consolidated joint venture. See Joint Venture Information included herein for further details.

(4) Contains 4 Buildings - 100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East.

(5) This property 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.

(6) This property was classified as held for sale as of June 30, 2013.

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE

LEASING AND OCCUPANCY

	Property Description		Percent Leased 2Q12			Percent Leased 1Q13			Percent Leased 2Q13			Weighted Average Occupancy 2Q 12 (1)			Weighted Average Occupancy 1Q 13 (1)			Weighted Average Occupancy 2Q 13 (1)
I.	OFFICE PROPERTIES
	Terminus 100			96	%		97	%		96	%		96	%		95	%		96	%
	191 Peachtree Tower			85	%		87	%		86	%		78	%		87	%		87	%
	The American Cancer Society Center			84	%		82	%		83	%		83	%		82	%		83	%
	Meridian Mark Plaza			98	%		98	%		98	%		97	%		98	%		98	%
	Emory University Hospital Midtown Medical Office Tower			98	%		99	%		100	%		95	%		98	%		99	%
	North Point Center East(2)			91	%		91	%		92	%		83	%		90	%		91	%
	Terminus 200			88	%		88	%		88	%		87	%		88	%		88	%
GEORGIA - Company Share (3)				88	%		88	%		88	%		84	%		88	%		88	%
	The Points at Waterview			90	%		90	%		88	%		90	%		90	%		89	%
	TEXAS - Company Share (3)			90	%		90	%		88	%		90	%		90	%		89	%
	Lakeshore Park Plaza			94	%		98	%		99	%		95	%		98	%		96	%
	600 University Park Place			95	%		98	%		98	%		93	%		98	%		98	%
ALABAMA - Company Share (3)				94	%		98	%		99	%		94	%		98	%		97	%
	Gateway Village			100	%		100	%		100	%		100	%		100	%		100	%
NORTH CAROLINA - Company Share (3)				100	%		100	%		100	%		100	%		100	%		100	%
	TOTAL OFFICE PROPERTIES - Company Share (3)			90	%		90	%		90	%		87	%		90	%		90	%
II.	RETAIL PROPERTIES
	The Avenue Murfreesboro			87	%		88	%		85	%		87	%		87	%		84	%
	Mt. Juliet Village			80	%		80	%		80	%		80	%		80	%		80	%
	The Shops of Lee Village			87	%		89	%		89	%		79	%		87	%		89	%
	Creek Plantation Village			93	%		98	%		98	%		93	%		91	%		98	%
TENNESSEE - Company Share (3)				87	%		88	%		86	%		86	%		87	%		85	%
	The Avenue West Cobb			96	%		97	%		100	%		95	%		94	%		95	%
	North Point MarketCenter			100	%		100	%		100	%		98	%		100	%		100	%
	The Avenue East Cobb			87	%		96	%		98	%		86	%		86	%		86	%
	The Avenue Peachtree City			90	%		92	%		92	%		88	%		90	%		90	%
GEORGIA - Company Share (3)				94	%		97	%		98	%		93	%		94	%		94	%
	Tiffany Springs MarketCenter			85	%		88	%		88	%		83	%		87	%		87	%
MISSOURI - Company Share (3)				85	%		88	%		88	%		83	%		87	%		87	%
	Highland City Town Center			87	%		87	%		87	%		87	%		87	%		87	%
	The Avenue Viera			95	%		95	%		95	%		94	%		96	%		93	%
	Viera MarketCenter			94	%		94	%		94	%		94	%		94	%		94	%
FLORIDA - Company Share (3)				91	%		91	%		91	%		91	%		91	%		91	%
	Greenbrier MarketCenter			100	%		100	%		100	%		100	%		100	%		100	%
VIRGINIA - Company Share (3)				100	%		100	%		100	%		100	%		100	%		100	%
	Los Altos MarketCenter			99	%		100	%		100	%		79	%		100	%		100	%
		��
CALIFORNIA - Company Share (3)				99	%		100	%		100	%		79	%		100	%		100	%
	TOTAL RETAIL PROPERTIES - Company Share (3)			88	%		90	%		89	%		87	%		89	%		88	%
	TOTAL PORTFOLIO - Company Share (3)			90	%		90	%		90	%		87	%		90	%		90	%

(1) Weighted average occupancy represents an average of the square footage occupied at the property during the quarter.

(2) Contains 4 Buildings - 100 North Point Center East, 200 North Point Center East, 333 North Point Center East and 555 North Point Center East.

(3) Company Share represents the applicable percentage weighted for the Company’s ownership interest.

COUSINS PROPERTIES INCORPORATED

SAME PROPERTY PERFORMANCE (1)

NET OPERATING INCOME

($ in thousands)

	Three Months Ended						Q2 '13 vs.			Q2 '13 vs.
	June 30,		June 30,		March 31,		Q2 '12			Q1 '13
	2013		2012		2013		% Change			% Change
Rental Property Revenues (2)
Office		26,035		24,984		25,857		4.2	%		0.7	%
Retail		4,865		4,838		4,958		0.6	%		–1.9	%
Total Rental Property Revenues		30,899		29,822		30,815		3.6	%		0.3	%
Rental Property Operating Expenses (2)
Office		11,017		10,746		10,526		2.5	%		4.7	%
Retail		1,272		1,308		1,295		–2.7	%		–1.8	%
Total Rental Property Operating Expenses		12,289		12,054		11,822		1.9	%		3.9	%
Same Property Net Operating Income
Office		15,019		14,239		15,330		5.5	%		–2.0	%
Retail		3,593		3,530		3,663		1.8	%		–1.9	%
Total Same Property Net Operating Income		18,611		17,768		18,993		4.7	%		–2.0	%
	Three Months Ended						Q2 '13 vs.			Q2 '13 vs.
	June 30,		June 30,		March 31,		Q2 '12			Q1 '13
	2013		2012		2013		% Change			% Change
Cash Basis Same Property Net Operating Income (3)
Office		14,020		13,227		13,770		6.0	%		1.8	%
Retail		3,580		3,447		3,626		3.9	%		–1.3	%
Total Cash Basis Same Property Net Operating Income		17,599		16,674		17,395		5.6	%		1.2	%

	Six Months Ended
	June 30,
	2013		2012		% Change
Rental Property Revenues (2)
Office		51,892		49,597		4.6	%
Retail		9,823		9,637		1.9	%
Total Rental Property Revenues		61,715		59,233		4.2	%
Rental Property Operating Expenses
Office		21,543		20,781		3.7	%
Retail		2,568		2,604		–1.4	%
Total Rental Property Operating Expenses		24,111		23,385		3.1	%
Same Property Net Operating Income
Office		30,349		28,816		5.3	%
Retail		7,256		7,033		3.2	%
Total Same Property Net Operating Income		37,605		35,850		4.9	%
	Six Months Ended
	June 30,
	2013		2012		% Change
Cash Basis Same Property Net Operating Income (3)
Office		27,791		26,501		4.9	%
Retail		7,205		6,898		4.5	%
Total Cash Basis Same Property Net Operating Income		34,996		33,399		4.8	%

(1) Same Properties include those office and retail properties that were operational on January 1, 2012, excluding properties subsequently sold.

(2) Rental Property Revenues and Expenses includes results for the Company and its share of unconsolidated joint ventures.

(3) Cash Basis Same Property Net Operating Income includes that of the Company and its share of unconsolidated joint ventures. It represents Net Operating Income excluding straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents.

COUSINS PROPERTIES INCORPORATED

SQUARE FEET EXPIRING

As of June 30, 2013

OFFICE

As of June 30, 2013, the Company’s office portfolio included 16 commercial office properties. The weighted average remaining lease term of these office properties was approximately six years. 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:

																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total
Company Share
Square Feet Expiring		178,450			590,256			591,643			1,135,036			551,442			834,120			333,084			299,829			622,726			2,041,653			7,178,239
% of Leased Space		2	%		8	%		8	%		16	%		8	%		12	%		5	%		4	%		9	%		28	%		100	%
Annual Contractual Rent ($000’s) (1)	$	2,900		$	12,326		$	12,822		$	21,529		$	12,251		$	17,594		$	7,790		$	8,083		$	15,365		$	49,233		$	159,893
Annual Contractual Rent/Sq. Ft. (1)	$	16.25		$	20.88		$	21.67		$	18.97		$	22.22		$	21.09		$	23.39		$	26.96		$	24.67		$	24.11		$	22.27

RETAIL

As of June 30, 2013, the Company’s retail portfolio included 16 retail properties. The weighted average remaining lease term of these retail properties was approximately eight years. 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:

																												2022 &
	2013			2014			2015			2016			2017			2018			2019			2020			2021			Thereafter			Total
Company Share
Square Feet Expiring (2)		28,003			52,517			57,066			68,626			90,795			226,713			155,705			19,189			16,407			372,779			1,087,800
% of Leased Space		3	%		5	%		5	%		6	%		8	%		21	%		14	%		2	%		2	%		34	%		100	%
Annual Contractual Rent ($000’s) (1)	$	502		$	944		$	1,075		$	1,291		$	1,925		$	4,706		$	3,079		$	331		$	442		$	4,111		$	18,406
Annual Contractual Rent/Sq. Ft. (1)	$	17.93		$	17.97		$	18.84		$	18.81		$	21.20		$	20.76		$	19.78		$	17.27		$	26.91		$	11.03		$	16.92

(1) Annual Contractual Rent shown is the estimated rate in the year of expiration. It includes the minimum contractual rent paid by the tenant which, in most of the office leases, includes a base year of operating expenses.

(2) 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.

COUSINS PROPERTIES INCORPORATED

TOP 20 TENANTS

As of June 30, 2013

	Tenant (1)	Company Share of Annualized Base Rent (2)			Average Remaining Lease Term (Years)
1.	Apache Corporation		6	%		6
2.	Deloitte & Touche		4	%		9
3.	American Cancer Society		3	%		9
4.	Smith, Gambrell & Russell, LLP		3	%		8
5.	Stewart Information Services		3	%		3
6.	US South Communications		2	%		8
7.	Internap Network Services		2	%		7
8.	CB Richard Ellis, Inc.		2	%		8
9.	IPR-GDF SUEZ North America		2	%		7
10.	Bank of America (3)		2	%		3
11.	MedAssets Net Revenue Systems, LLC		2	%		2
12.	tvsdesign		2	%		11
13.	Emory University		1	%		15
14.	Bombardier Aerospace Corporation		1	%		1
15.	Publix		1	%		16
16.	Northside Hospital		1	%		8
17.	Georgia Lottery Corporation		1	%		10
18.	Wells Fargo Bank, N.A.		1	%		3
19.	Children’s Healthcare of Atlanta		1	%		10
20.	Morgan Stanley		1	%		5
			42	%		7

(1) In some cases, the actual tenant may be an affiliate of the entity shown.

(2) Annualized Base Rent represents the annualized minimum rent paid by the tenant as of the date of this report. If the tenant is in a free rent period as of the date of this report, Annualized Base Rent represents the annualized minimum contractual rent the tenant will pay in the first month it is required to pay rent.

(3) A portion of the Company’s economic exposure for this tenant is limited to a fixed return through a joint venture arrangement.

NOTE: This schedule includes tenants whose leases have commenced and/or have taken occupancy. Leases that have been signed but have not commenced are excluded from this schedule.

COUSINS PROPERTIES INCORPORATED

DEVELOPMENT PIPELINE (1)

As of June 30, 2013

($ in thousands)

Project	Type	Metropolitan Area	Company’s Ownership Interest			Project Start Date	Square Feet/Number of Apartment Units		Estimated Project Cost (2)		Project Cost Incurred to Date (2)		Percent Leased			Percent Occupied			Initial Occupancy			Estimated Stabilization (5)
Colorado Tower	Office	Austin, TX		100	%	2Q 13		371,000	$	126,100	$	5,819		17	%		0	%		4Q14	(3)		4Q 15
Emory Point (Phase I)	Mixed	Atlanta, GA		75	%	2Q 11			$	102,300	$	89,143
Apartments								443						75	%		69	%		3Q 12	(4)		2Q 14
Retail								80,000						82	%		80	%		4Q 12	(4)		1Q 14

(1) This schedule shows projects currently under active development through the point of stabilization. Amounts included in the estimated project cost column represent the estimated costs of the project through stabilization. Significant estimation is required to derive these costs and the final costs may differ from these estimates. The projected stabilization dates are also estimates and are subject to change as the project proceeds through the development process.

(2) Amount represents 100% of the estimated project cost. Colorado Tower is being funded 100% by the Company and Emory Point is being funded with a combination of equity from the partners and a $61.1 million construction loan. As of June 30, 2013, $55.5 million was outstanding under the Emory Point construction loan.

(3) Estimated opening represents the quarter within which the Company estimates the first office square feet to be occupied.

(4) Represents the actual quarter within which the first retail space was open for operations and the quarter that the first apartment unit was occupied.

(5) Estimated stabilization represents the quarter within which the Company estimates it will achieve 90% economic occupancy.

COUSINS PROPERTIES INCORPORATED

INVENTORY OF LAND HELD

As of June 30, 2013

	Metropolitan Area	Company’s Ownership Interest			Developable Land Area (Acres)
COMMERCIAL
North Point	Atlanta		100.00	%		32
Wildwood Office Park	Atlanta		50.00	%		30
Wildwood Office Park	Atlanta		100.00	%		11
The Avenue Forsyth-Adjacent Land	Atlanta		100.00	%		11
549 / 555 / 557 Peachtree Street	Atlanta		100.00	%		1
Georgia						85
Round Rock	Austin		100.00	%		60
Research Park V	Austin		100.00	%		6
Texas						66
Highland City Town Center -Outparcels, Adjacent Land (1) (2) (3)	Lakeland		50.50	%		55
Florida						55
The Shops of Lee Village-Outparcels (2) (3)	Nashville		50.50	%		6
The Avenue Murfreesboro-Outparcels (2) (3)	Nashville		50.00	%		5
Tennessee						11
Tiffany Springs MarketCenter-Outparcels (2)	Kansas City		100.00	%		10
Missouri						10
TOTAL COMMERCIAL LAND ACRES HELD						227
COMPANY’S SHARE OF TOTAL ACRES						178
COST BASIS OF COMMERCIAL LAND HELD					$	60,898
COMPANY’S SHARE OF COST BASIS OF COMMERCIAL LAND HELD					$	34,819
RESIDENTIAL (4)
Paulding County	Atlanta		50.00	%		5,525
Blalock Lakes	Atlanta		100.00	%		2,663
Callaway Gardens (5)	Atlanta		100.00	%		218
Longleaf at Callaway	Atlanta		100.00	%		4
Georgia						8,409
Padre Island	Corpus Christi		50.00	%		15
Texas						15
TOTAL RESIDENTIAL LAND ACRES HELD						8,424
COMPANY’S SHARE OF TOTAL ACRES						5,654
COST BASIS OF RESIDENTIAL LAND HELD					$	26,268
COMPANY’S SHARE OF COST BASIS OF RESIDENTIAL LAND HELD					$	20,169
GRAND TOTAL COMPANY’S SHARE OF ACRES						5,832
GRAND TOTAL COMPANY’S SHARE OF COST BASIS OF LAND HELD					$	54,988

(1) Land is adjacent to an existing retail center and is anticipated to either be sold to a third party or developed as an additional phase of the retail center.

(2) Land relates to outparcels available for sale or ground lease.

(3) This project is owned through a joint venture with a third party who has contributed equity. See Joint Venture Information included herein for further details.

(4) Residential represents land that may be sold to third parties as lots or in large tracts for residential or commercial development.

(5) Company’s ownership interest is shown at 100% as Callaway Gardens is owned in a joint venture which is consolidated with the Company. See Joint Venture Information included herein for further details.

COUSINS PROPERTIES INCORPORATED

DEBT OUTSTANDING

As of June 30, 2013

($ in thousands)

	Company’s Ownership			Rate End of			Maturity		Company’s Share of Debt Maturities and Principal Payments																					Company’s Share
Description (Interest Rate Base, if not fixed)	Interest			Quarter			Date		2013			2014			2015			2016			2017			Thereafter			Total			Recourse (1)
CONSOLIDATED DEBT
Floating Rate Debt
Mahan Village (LIBOR + 1.65%; $15mm facility)		100.00	%(3)		1.84	%		9/12/2014		—			14,316			—			—			—			—			14,316			3,579
Credit Facility, Unsecured (LIBOR + 1.50%-2.10%; $350mm facility) (2)		100.00	%		1.69	%		2/28/2016		—			—			—			51,000			—			—			51,000			51,000
Total Floating Rate Debt										—			14,316			—			51,000			—			—			65,316			54,579
Fixed Rate Debt
Callaway Gardens		100.00	%		4.13	%		11/18/2013		174			—			—			—			—			—			174			—
The Points at Waterview		100.00	%		5.66	%		1/1/2016		259			542			573			14,025			—			—			15,399			—
The American Cancer Society Center (4)		100.00	%		6.45	%		9/1/2017		764			1,632			1,741			1,834			127,508			—			133,479			—
191 Peachtree Tower		100.00	%		3.35	%		10/1/2018		—			—			—			1,305			2,013			96,682			100,000			—
Meridian Mark Plaza		100.00	%		6.00	%		8/1/2020		193			405			430			456			484			24,038			26,006			—
Total Fixed Rate Debt										1,390			2,579			2,744			17,620			130,005			120,720			275,058			—
TOTAL CONSOLIDATED DEBT										1,390			16,895			2,744			68,620			130,005			120,720			340,374			54,579
UNCONSOLIDATED DEBT
Floating Rate Debt
The Avenue Murfreesboro (LIBOR + 3.0%; $97.5mm facility) (5)		50.00	%		3.19	%		12/31/2013		45,927			—			—			—			—			—			45,927			26,220
Emory Point (LIBOR + 1.85%, $61.1mm facility)		75.00	%		2.04	%		6/28/2014		—			41,612			—			—			—			—			41,612			11,456
Highland City Town Center (LIBOR + 2.65%)		50.50	%(3)		2.84	%		1/1/2016		56			116			123			4,938			—			—			5,233			—
Creek Plantation Village (LIBOR + 2.65%)		50.50	%(3)		2.84	%		1/1/2016		32			67			71			2,867			—			—			3,037			—
Mt. Juliet Village (LIBOR + 2.85%; $9.2mm facility)		50.50	%(3)		3.04	%		1/1/2016		28			58			62			2,935			—			—			3,083			1,538
The Shops of Lee Village (LIBOR + 2.85%; $7.1mm facility)		50.50	%(3)		3.04	%		1/1/2016		25			53			56			2,648			—			—			2,782			1,388
Total Floating Rate Debt										46,068			41,906			312			13,388			—			—			101,674			40,602
Fixed Rate Debt
Gateway Village (6)		50.00	%		6.41	%		12/1/2016		4,022			8,439			8,997			8,768			—			—			30,226			—
The Avenue East Cobb		11.50	%		4.52	%		12/1/2017		37			78			81			85			3,755			—			4,036			—
Terminus 100		50.00	%		5.25	%		1/1/2023		553			1,150			1,212			1,277			1,346			61,986			67,524			—
Terminus 200		50.00	%		3.79	%		1/1/2023		—			—			—			559			770			39,671			41,000			—
Emory University Hospital Midtown Medical Office Tower		50.00	%		3.50	%		6/1/2023		—			—			357			732			758			35,653			37,500			—
Total Fixed Rate Debt										4,612			9,667			10,647			11,421			6,629			137,310			180,286			—
TOTAL UNCONSOLIDATED DEBT									$	50,680		$	51,573		$	10,959		$	24,809		$	6,629		$	137,310		$	281,960		$	40,602
TOTAL DEBT									$	52,070		$	68,468		$	13,703		$	93,429		$	136,634		$	258,030		$	622,334		$	95,181
TOTAL MATURITIES (7)									$	46,101		$	55,928		$	—		$	78,413		$	131,263		$	240,536		$	552,242
% OF MATURITIES										8	%		10	%		0	%		14	%		24	%		44	%		100	%

Floating and Fixed Rate Debt Analysis

	Total Debt ($)		Total Debt (%)			Weighted Average Interest Rate			Weighted Average Maturity(Yrs.)
Floating Rate Debt	$	166,990		27	%		2.31	%		1.5
Fixed Rate Debt		455,344		73	%		5.04	%		6.2
Total Debt	$	622,334		100	%		4.30	%		5.0

(1) Non-recourse loans are subject to customary carve-outs.

(2) Total borrowing capacity of the Credit Facility at June 30, 2013 was $350 million. The spread over LIBOR at June 30, 2013 was 1.50%.

(3) The ownership percentage of the venture holding these loans and the allocation of results of operations and/or gain or loss on property sales may be disproportionate.

(4) The real estate and other assets of this property are restricted under a loan agreement such that these assets are not available to settle other debts of the Company.

(5) Beginning July 21, 2013 the spread over LIBOR will decrease to 2.5% through the end of the term.

(6) See Joint Venture Information for further details on the Gateway Village venture structure. Based on the structure of the venture and the nature of the related debt, the Company excludes the Gateway Village debt in certain of its leverage calculations.

(7) Maturities include lump sum principal payments due at the maturity date. Maturities do not include scheduled principal payments due prior to the maturity date.

COUSINS PROPERTIES INCORPORATED

JOINT VENTURE INFORMATION

As of June 30, 2013

		Cash Flows to Cousins
Unconsolidated Joint Ventures	Properties	Operating	Capital Transactions/Other	GAAP Accounting
CP Venture Five	The Avenue West Cobb, The Avenue East Cobb, The Avenue Peachtree City, The Avenue Viera, Viera MarketCenter	11.5% of operating cash flows.	11.5% of proceeds.	Recognize 11.5% of net income from venture.
Charlotte Gateway Village LLC	Gateway Village	Preferred return on investment of 11.46%.	50% of proceeds after partner receives preference of $66.8 million until a 17% leveraged IRR. Thereafter, receives 20% of remaining proceeds.	Recognize 11.46% of invested capital each period.
CF Murfreesboro Associates	The Avenue Murfreesboro	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
CP Venture Two LLC	Greenbrier MarketCenter, Los Altos MarketCenter, North Point MarketCenter	10.4% of operating cash flows.	10.4% of proceeds.	Recognize 10.4% of net income from venture.
Terminus Office Holdings LLC	Terminus 100, Terminus 200	50% of operating cash flows until partner receives an agreed upon return. Thereafter, the Company may receive an additional promoted interest if certain return thresholds are met.	Same as operating cash flows.	Recognize 50% of net income from venture.
CL Realty	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
Cousins Watkins LLC	Mt. Juliet Village, The Shops of Lee Village, Creek Plantation Village, Highland City Town Center	Preferred return of 9%, 39.65% of remaining operating cash flows.	All proceeds until a 16% leveraged IRR. Then, Watkins receives their unreturned capital. Thereafter, 39.65% of remaining proceeds.	Recognize net income equal to 16% of investment.
Temco Associates LLC	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
EP I LLC	Emory Point	75% of operating cash flows.	75% of proceeds.	Recognize 75% of net income from venture.
Crawford Long-CPI, LLC	Emory University Hospital Midtown Medical Office Tower	50% of Operating Cash Flows.	50% of proceeds.	Recognize 50% of net income from venture.
Wildwood Associates	Land	50% of operating cash flows.	50% of proceeds.	Recognize 50% of net income from venture.
Consolidated Joint Ventures
CP Venture Six	Tiffany Springs MarketCenter, Promenade	All operating cash flow after partner receives preferred return of 6.5%.	88.5% of proceeds from non-liquidating capital transactions. Upon liquidation, proceeds equal to an 8.5% leveraged IRR after partner receives an 8.5% leveraged IRR. Thereafter, 88.5% of proceeds.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest for operating cash flows based on amounts earned by partner. Recognize additional minority interest to arrive at 8.5% leveraged IRR as assets are sold.
Cousins/Callaway LLC	Land	The first $2.0 million of cash flow; 77% of the next $17.7 million of cash flow; 50% of remaining cash flow until it receives an IRR of 20%; 40% of remaining until it receives an IRR of 25%; 25% of remainder.	Same as operating cash flow.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner.
Cousins/Daniel LLC	Lakeshore Park Plaza, 600 University Park Place	Through preferred returns, all operating cash flows.	All capital proceeds.	Recognize revenues and expenses as if a wholly-owned property. No minority interest currently recorded.
Mahan Village LLC	Mahan Village	Preferred return of 9% and receives 87% of remainder after partner receives 9% preferred return.	All proceeds until a 16% leveraged IRR. 75% of remaining proceeds after partner receives its investment and a 9% preferred return.	Recognize revenues and expenses as if a wholly-owned property. Recognize minority interest based on amounts earned by partner.

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX:
TOTAL BY SEGMENT:
OFFICE:
SECOND GENERATION LEASING RELATED COSTS		16,602			1,933			2,393			4,825			4,031			13,181			2,865			1,524			4,389
SECOND GENERATION BUILDING IMPROVEMENTS		464			155			730			137			250			1,271			79			1,589			1,668
		17,067			2,087			3,122			4,962			4,281			14,453			2,944			3,113			6,058
RETAIL:
SECOND GENERATION LEASING RELATED COSTS		2,074			246			64			116			180			605			88			239			327
TOTAL 2ND GENERATION TI & LEASING COSTS & BUILDING CAPEX		19,140			2,333			3,186			5,077			4,461			15,058			3,032			3,352			6,385
NET OPERATING INCOME:
OFFICE CONSOLIDATED PROPERTIES		57,177			16,449			16,397			17,122			17,260			67,228			18,529			19,763			38,292
RETAIL CONSOLIDATED PROPERTIES		(3	)		—			4			57			259			320			389			390			779
NET OPERATING INCOME - CONSOLIDATED		57,177			16,449			16,401			17,179			17,519			67,548			18,918			20,153			39,071
RENTAL PROPERTY REVENUES		100,412			28,299			28,922			31,125			32,072			120,418			34,748			38,729			73,477
RENTAL PROPERTY OPERATING EXPENSES		(43,235	)		(11,850	)		(12,521	)		(13,946	)		(14,553	)		(52,870	)		(15,830	)		(18,576	)		(34,406	)
NET OPERATING INCOME - CONSOLIDATED		57,177			16,449			16,401			17,179			17,519			67,548			18,918			20,153			39,071
INCOME FROM DISCONTINUED OPERATIONS:
RENTAL PROPERTY REVENUES		46,275			9,193			7,753			6,522			4,239			27,707			1,376			1,311			2,687
RENTAL PROPERTY OPERATING EXPENSES		(17,155	)		(2,658	)		(2,663	)		(1,962	)		(1,113	)		(8,396	)		(573	)		(474	)		(1,047	)
NET OPERATING INCOME		29,120			6,535			5,090			4,560			3,126			19,311			803			837			1,640
TERMINATION FEES		77			192			13			3,232			75			3,512			—			—			—
INTEREST AND OTHER INCOME (EXPENSE)		41			(17	)		(14	)		2			(3	)		(32	)		(1	)		(9	)		(10	)
FFO FROM DISCONTINUED OPERATING PROPERTIES		29,238			6,710			5,089			7,794			3,198			22,791			802			828			1,630
THIRD PARTY MANAGEMENT AND LEASING REVENUES		19,359			4,711			6,029			4,789			836			16,365			74			3			77
THIRD PARTY MANAGEMENT AND LEASING EXPENSES		(16,585	)		(4,300	)		(4,607	)		(4,260	)		(508	)		(13,675	)		(53	)		(27	)		(80	)
FFO FROM THIRD PARTY MANAGEMENT AND LEASING		2,774			411			1,422			529			328			2,690			21			(24	)		(3	)
FFO FROM DISCONTINUED OPERATIONS		32,012			7,121			6,511			8,323			3,526			25,481			823			804			1,627
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(21,497	)		(4,242	)		(2,967	)		(3,600	)		(541	)		(11,350	)		(510	)		(524	)		(1,034	)
IMPAIRMENT LOSSES		(10,945	)		(12,233	)		—			—			(1,558	)		(13,791	)		—			—			—
INCOME FROM DISCONTINUED OPERATIONS		(429	)		(9,355	)		3,544			4,723			1,427			340			313			280			593

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)

	2011			2012 1st			2012 2nd			2012 3rd		2012 4th			2012			2013 1st			2013 2nd			2013 YTD
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES AND COST OF SALES:
CONSOLIDATED:
RESIDENTIAL LOT AND OUTPARCEL SALES - CONSOLIDATED:
RESIDENTIAL LOT SALES		3,015			949			535			732		400			2,616			460			283			743
OUTPARCEL SALES		—			—			—			—		—			—			503			150			653
TOTAL RESIDENTIAL LOT AND OUTPARCEL SALES		3,015			949			535			732		400			2,616			963			433			1,396
RESIDENTIAL LOT AND OUTPARCEL COST OF SALES - CONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		2,941			564			416			354		87			1,420			460			283			743
OUTPARCEL COST OF SALES		(50	)		—			—			—		—			—			503			150			653
TOTAL RESIDENTIAL LOT AND OUTPARCEL COST OF SALES-CONSOLIDATED		2,891			564			416			354		87			1,420			963			433			1,396
TRACT SALES INCLUDED IN GAIN ON SALE OF INVESTMENT PROPERTIES		3,258			—			(30	)		—		—			(30	)		242			276			518
RESIDENTIAL LOT, OUTPARCEL, TRACT AND OTHER INVESTMENT PROPERTY SALES LESS COST OF SALES - CONSOLIDATED		3,382			385			90			378		313			1,166			243			276			518
SUMMARY - CONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		74			385			120			378		313			1,196			—			—			—
OUTPARCEL SALES LESS COST OF SALES		50			—			—			—		—			—			—			—			—
TRACT SALES LESS COST OF SALES		3,258			—			(30	)		—		3,750			3,720			242			276			518
TOTAL CONSOLIDATED SALES LESS COST OF SALES		3,382			385			90			378		4,063			4,916			242			276			518
OTHER SALES AND COST OF SALES:
CONSOLIDATED:
OTHER SALES - CONSOLIDATED:
OTHER SALES		4,664			—			174			—		520			694			340			—			340
OTHER COST OF SALES		(2,487	)		—			(119	)		—		(294	)		(413	)		(182	)		—			(182	)
OTHER SALES LESS COST OF SALES - CONSOLIDATED		2,177			—			55			—		226			281			158			—			158
UNCONSOLIDATED:
OTHER SALES - UNCONSOLIDATED:
OTHER SALES		—			—			—			—		—			—			—			—			—
OTHER COST OF SALES		(5	)		—			—			—		—			—			—			—			—
OTHER, NET		77			(1	)		(2	)		—		31			28			10			(8	)		3
OTHER SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED		72			(1	)		(2	)		—		31			28			10			(8	)		3
TOTAL OTHER SALES FFO		2,249			(1	)		53			—		257			309			168			(8	)		160
UNCONSOLIDATED:
RESIDENTIAL LOT AND TRACT SALES - UNCONSOLIDATED:
RESIDENTIAL LOT SALES		7,343			—			—			—		—			—			—			—			—
TRACT SALES		794			176			—			—		—			176			—			—			—
TOTAL RESIDENTIAL LOT AND TRACT SALES		8,137			176			—			—		—			176			—			—			—
RESIDENTIAL LOT AND TRACT COST OF SALES - UNCONSOLIDATED:
RESIDENTIAL LOT COST OF SALES		5,770			—			—			—		—			—			—			—			—
TRACT COST OF SALES		513			176			—			—		—			176			—			—			—
TOTAL RESIDENTIAL LOT AND TRACT COST OF SALES		6,283			176			—			—		—			176			—			—			—
RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES - UNCONSOLIDATED		1,854			—			—			—		—			—			—			—			—
SUMMARY - UNCONSOLIDATED:
RESIDENTIAL LOT SALES LESS COST OF SALES		1,573			—			—			—		—			—			—			—			—
TRACT SALES LESS COST OF SALES		281			—			—			—		—			—			—			—			—
RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES - SHARE OF UNCONSOLIDATED		1,854			—			—			—		—			—			—			—			—
TOTAL RESIDENTIAL LOT AND TRACT SALES LESS COST OF SALES		5,236			385			90			378		4,063			4,916			242			276			518

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
NET OPERATING INCOME:
OFFICE PROPERTIES		13,592			3,661			3,271			3,210			2,613			12,755			3,373			4,206			7,579
RETAIL PROPERTIES		10,666			2,608			2,666			2,671			2,774			10,719			3,031			3,000			6,031
OTHER PROPERTIES		—			—			—			—			122			122			43			376			419
NET OPERATING INCOME		24,258			6,269			5,937			5,881			5,509			23,596			6,447			7,582			14,029
RESIDENTIAL LOT, OUTPARCEL AND TRACT SALES LESS COST OF SALES		1,854			—			—			—			—			—			—			—			—
OTHER SALES LESS COST OF SALES		73			(1	)		(2	)		—			31			28			10			(8	)		2
TERMINATION FEES		73			42			18			—			2			62			19			—			19
INTEREST EXPENSE		(4,338	)		(1,179	)		(1,062	)		(966	)		(1,014	)		(4,221	)		(1,710	)		(2,332	)		(4,042	)
OTHER EXPENSE		(467	)		(279	)		(138	)		(167	)		(55	)		(639	)		112			81			193
IMPAIRMENT LOSSES		(29,003	)		—			—			—			—			—			—			—			—
DEPRECIATION AND AMORTIZATION OF NON-REAL ESTATE ASSETS		(20	)		(5	)		(5	)		(5	)		—			(15	)		(22	)		(24	)		(46	)
FUNDS FROM OPERATIONS - UNCONSOLIDATED JOINT VENTURES		(7,570	)		4,847			4,748			4,743			4,473			18,811			4,856			5,299			10,155
GAIN ON SALE OF DEPRECIATED INVESTMENT PROPERTIES, NET		—			—			7,509			—			23,153			30,662			—			—			—
DEPRECIATION AND AMORTIZATION OF REAL ESTATE		(10,337	)		(2,661	)		(2,495	)		(2,475	)		(2,584	)		(10,215	)		(3,204	)		(4,167	)		(7,371	)
NET INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES		(17,906	)		2,186			9,762			2,268			25,043			39,258			1,652			1,132			2,784
MARKET CAPITALIZATION
COMMON STOCK PRICE AT PERIOD END		6.41			7.58			7.75			7.94			8.35			8.35			10.69			10.10			10.10
NUMBER OF COMMON SHARES OUTSTANDING AT PERIOD END		103,702			104,139			104,215			104,136			104,090			104,090			104,127			120,688			120,688
COMMON STOCK CAPITALIZATION		664,730			789,374			807,666			826,840			869,152			869,152			1,113,118			1,218,949			1,218,949
PREFERRED STOCK-SERIES A-PRICE AT LIQUIDATION VALUE		74,827			74,827			74,827			74,827			74,827			74,827			74,827			—			—
PREFERRED STOCK-SERIES B-PRICE AT LIQUIDATION VALUE		94,775			94,775			94,775			94,775			94,775			94,775			94,775			94,775			94,775
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602			94,775			94,775
DEBT		539,442			529,168			461,021			518,630			425,410			425,410			344,832			340,374			340,374
SHARE OF UNCONSOLIDATED DEBT		162,127			164,217			156,364			165,571			170,480			170,480			266,069			281,960			281,960
DEBT(2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901			622,334			622,334
TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620			1,936,057			1,936,057
LEVERAGE RATIOS
DEBT(2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901			622,334			622,334
TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620			1,936,057			1,936,057
DEBT (2) / TOTAL MARKET CAPITALIZATION		46	%		42	%		39	%		41	%		36	%		36	%		32	%		32	%		32	%
TOTAL ASSETS-CONSOLIDATED		1,235,535			1,199,634			1,135,315			1,199,101			1,124,242			1,124,242			1,096,444			1,200,788			1,200,788
ACCUMULATED DEPRECIATION-CONSOLIDATED		289,473			302,782			281,739			294,710			258,258			258,258			221,429			245,608			245,608
UNDEPRECIATED ASSETS-UNCONSOLIDATED(2)		516,686			467,303			454,388			461,500			403,141			403,141			575,323			562,475			562,475
LESS: INVESTMENT IN UNCONSOLIDATED JOINT VENTURES		(160,587	)		(141,180	)		(140,303	)		(139,782	)		(97,868	)		(97,868	)		(128,541	)		(127,948	)		(127,948	)
TOTAL UNDEPRECIATED ASSETS (2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655			1,880,923			1,880,923
DEBT(2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901			622,334			622,334
UNDEPRECIATED ASSETS(2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655			1,880,923			1,880,923
DEBT (2) / TOTAL UNDEPRECIATED ASSETS (2)		37	%		38	%		36	%		38	%		35	%		35	%		35	%		33	%		33	%
DEBT(2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901			622,334			622,334
PREFERRED STOCK AT LIQUIDATION VALUE		169,602			169,602			169,602			169,602			169,602			169,602			169,602			94,775			94,775
DEBT(2) + PREFERRED		871,171			862,987			786,987			853,803			765,492			765,492			780,503			717,109			717,109
TOTAL MARKET CAPITALIZATION		1,535,901			1,652,361			1,594,654			1,680,643			1,634,644			1,634,644			1,893,620			1,936,057			1,936,057
DEBT (2) + PREFERRED / TOTAL MARKET CAPITALIZATION		57	%		52	%		49	%		51	%		47	%		47	%		41	%		37	%		37	%
DEBT(2) + PREFERRED		871,171			862,987			786,987			853,803			765,492			765,492			780,503			717,109			717,109
TOTAL UNDEPRECIATED ASSETS(2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655			1,880,923			1,880,923
DEBT (2) + PREFERRED / TOTAL UNDEPRECIATED ASSETS (2)		46	%		47	%		45	%		47	%		45	%		45	%		44	%		38	%		38	%

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
EBITDA (2)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645			6,573			13,218
NON-REAL ESTATE DEPRECIATION AND AMORTIZATION		1,708			369			228			261			232			1,090			205			213			418
INCOME TAX PROVISION (BENEFIT)		(186	)		27			33			60			(30	)		90			1			1			2
IMPAIRMENT LOSSES		129,134			—			—			488			—			488			—			—			—
PREDEVELOPMENT CHARGES		937			—			—			—			—			—			—			—			—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—			—			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—			—			—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—			—			—
PREFERRED STOCK ORIGINAL ISSUANCE COSTS		—			—			—			—			—			—			—			2,656			2,656
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			6,454
EBITDA (2)		100,214			24,652			23,577			25,729			24,532			98,490			21,539			26,828			48,367
COVERAGE RATIOS (2)
EBITDA		100,214			24,652			23,577			25,729			24,532			98,490			21,539			26,828			48,367
INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645			6,573			13,218
INTEREST COVERAGE RATIO (2)		3.08			3.31			3.40			3.81			3.50			3.50			3.24			4.08			3.66
INTEREST EXPENSE		32,515			7,447			6,937			6,759			7,011			28,154			6,645			6,573			13,218
SCHEDULED PRINCIPAL PAYMENTS		7,279			2,123			2,045			1,755			1,846			7,769			1,855			1,728			3,582
PREFERRED STOCK DIVIDENDS		12,907			3,227			3,227			3,226			3,227			12,907			3,227			3,227			6,454
FIXED CHARGES		52,701			12,797			12,209			11,740			12,084			48,830			11,727			11,528			23,254
EBITDA		100,214			24,652			23,577			25,729			24,532			98,490			21,539			26,828			48,367
FIXED CHARGES COVERAGE RATIO (2)		1.90			1.93			1.93			2.19			2.03			2.02			1.84			2.33			2.08
DEBT(2)		701,569			693,385			617,385			684,201			595,890			595,890			610,901			622,334			622,334
ANNUALIZED EBITDA(3)		108,800			98,608			94,308			102,916			98,128			98,128			86,156			107,312			107,312
DEBT (2) / ANNUALIZED EBITDA (3)		6.45			7.03			6.55			6.65			6.07			6.07			7.09			5.80			5.80
DIVIDEND RATIOS
REGULAR COMMON DIVIDENDS:
CASH COMMON DIVIDENDS		18,651			4,687			4,686			4,690			4,685			18,748			4,688			5,429			10,117
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
FFO PAYOUT RATIO		–24	%		35	%		36	%		18	%		33	%		28	%		41	%		38	%		39	%
FFO BEFORE CERTAIN CHARGES
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
PREFERRED STOCK ORIGINAL ISSUANCE COSTS		—			—			—			—			—			—			—			2,656			2,656
IMPAIRMENT LOSSES(2)		129,134			—			—			488			—			488			—			—			—
PREDEVELOPMENT & OTHER CHARGES		937			(1,185	)		—			—			—			(1,185	)		—			—			—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—			—			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—			—			—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—			—			—
SEPARATION CHARGES		197			213			79			574			1,118			1,985			—			—			—
FFO BEFORE CERTAIN CHARGES		53,467			12,610			13,231			15,997			15,210			57,049			11,461			16,814			28,275
FFO BEFORE CERTAIN CHARGES PAYOUT RATIO		35	%		37	%		35	%		29	%		31	%		33	%		41	%		32	%		36	%

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (1)

(in thousands, except per share amounts, percentages and ratios)

	2011			2012 1st			2012 2nd			2012 3rd			2012 4th			2012			2013 1st			2013 2nd			2013 YTD
FAD (2)
FFO		(76,875	)		13,488			13,152			25,685			14,167			66,492			11,461			14,158			25,619
FAS 13		(11,076	)		(2,686	)		(2,152	)		(1,823	)		(1,659	)		(8,319	)		(2,346	)		(2,204	)		(4,550	)
ABOVE AND BELOW MARKET RENTS		(26	)		108			87			124			174			493			(185	)		(586	)		(771	)
SECOND GENERATION CAPEX		(19,140	)		(2,333	)		(3,186	)		(5,077	)		(4,461	)		(15,058	)		(3,032	)		(3,352	)		(6,385	)
FAD (2)		(107,117	)		8,577			7,901			18,909			8,222			43,608			5,897			8,016			13,914
COMMON DIVIDENDS		18,651			4,687			4,686			4,690			4,685			18,748			4,688			5,429			10,117
FAD PAYOUT RATIO (2)		–17	%		55	%		59	%		25	%		57	%		43	%		79	%		68	%		73	%
FAD BEFORE CERTAIN CHARGES
FAD(2)		(107,117	)		8,577			7,901			18,909			8,222			43,608			5,897			8,016			13,914
PREFERRED STOCK ORIGINAL ISSUANCE COSTS		—			—			—			—			—			—			—			2,656			2,656
IMPAIRMENT LOSSES(2)		129,134			—			—			488			—			488			—			—			—
PREDEVELOPMENT & OTHER CHARGES		937			(1,185	)		—			—			—			(1,185	)		—			—			—
LOSS ON DEBT EXTINGUISHMENT		74			94			—			—			—			94			—			—			—
GAIN ON SALE OF THIRD PARTY BUSINESS		—			—			—			(7,384	)		(75	)		(7,459	)		—			—			—
PARTICIPATION INTEREST INCOME		—			—			—			(3,366	)		—			(3,366	)		—			—			—
SEPARATION CHARGES		197			213			79			574			1,118			1,984			—			—			—
FAD BEFORE CERTAIN CHARGES		23,225			7,699			7,980			9,221			9,265			34,164			5,897			10,672			16,570
FAD BEFORE CERTAIN CHARGES PAYOUT RATIO		80	%		61	%		59	%		51	%		51	%		55	%		79	%		51	%		61	%
OPERATIONS RATIOS
REVENUES		123,863			33,378			32,496			39,286			37,928			143,088			39,894			44,158			84,052
REVENUES FROM DISCONTINUED OPERATIONS		65,814			14,096			13,795			14,553			5,153			47,597			1,450			1,314			2,764
REVENUES INCLUDING DISCONTINUED OPERATIONS		189,677			47,474			46,291			53,839			43,081			190,685			41,344			45,472			86,816
GENERAL AND ADMINISTRATIVE EXPENSES		24,166			6,623			5,646			5,255			5,684			23,208			6,069			4,552			10,622
REVENUES INCLUDING DISCONTINUED OPERATIONS		189,677			47,474			46,291			53,839			43,081			190,685			41,344			45,472			86,816
GENERAL AND ADMINISTRATIVE EXPENSES/REVENUES INCLUDING DISCONTINUED OPERATIONS		12.7	%		14.0	%		12.2	%		9.8	%		13.2	%		12.2	%		14.7	%		10.0	%		12.2	%
TOTAL UNDEPRECIATED ASSETS(2)		1,881,107			1,828,539			1,731,139			1,815,529			1,687,773			1,687,773			1,764,655			1,880,923			1,880,923
ANNUALIZED GENERAL AND ADMINISTRATIVE EXPENSES (3) / TOTAL UNDEPRECIATED ASSETS		1.3	%		1.4	%		1.3	%		1.2	%		1.3	%		1.2	%		1.4	%		1.0	%		1.0	%

(1) AMOUNTS MAY DIFFER SLIGHTLY FROM OTHER SCHEDULES CONTAINED HEREIN DUE TO ROUNDING.

(2) INCLUDES COMPANY SHARE OF UNCONSOLIDATED JOINT VENTURES.

(3) ANNUALIZED REPRESENTS QUARTER AMOUNT ANNUALIZED.

COUSINS PROPERTIES INCORPORATED

CALCULATIONS AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

($ in thousands)

	Three Months Ended							Six Months Ended
	June 30,		June 30,		March 31,			June 30,
	2013		2012		2013			2013		2012
Net Operating Income
Same Property		18,611		17,768		18,993			37,605		35,850
Non-Same Property		9,961		9,660		7,176			17,138		20,835
Consolidated Property Net Operating Income		28,572		27,428		26,170			54,742		56,685
Less: Non-Cash Items
Straight-line rent		2,248		2,623		2,572			4,820		5,807
Other		252		12		(116	)		1,085		39
Non-Cash Items		2,499		2,635		2,456			5,905		5,844
Cash Basis Property Net Operating Income		26,073		24,794		23,713			48,836		50,841
Cash Basis Property Net Operating Income
Same Property		17,599		16,674		17,395			34,996		33,399
Non-Same Property		8,473		8,119		6,317			13,790		17,441
Cash Basis Property Net Operating Income		26,072		24,793		23,712			48,786		50,840
Net Operating Income (1)
Operating Properties		20,153		16,398		18,917			39,070		32,847
Discontinued Operations		837		5,093		805			1,642		11,632
Share of Unconsolidated Joint Ventures		7,582		5,937		6,448			14,030		12,206
Total Net Operating Income		28,572		27,428		26,170			54,742		56,685

(1) See reconciliation above within previous pages of the calculations and reconciliations of Non-GAAP financial measures.

COUSINS PROPERTIES INCORPORATED

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

The Company uses non-GAAP financial measures in its filings and other public disclosures. 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 historic 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. The Company excludes from second generation costs amounts incurred to lease vacant space and other building improvements associated with properties acquired for redevelopment or repositioning.

“Cash Basis Net Operating Income” represents Net Operating Income excluding straight-line rents, amortization of lease inducements and amortization of acquired above and below market rents.

“EBITDA” represents FFO plus consolidated and Company share of unconsolidated interest expense, non-real estate depreciation and amortization, income taxes, impairment losses, predevelopment charges, loss on debt extinguishment, gain on sale of third party business, participation interest income and preferred stock dividends. Management believes that EBITDA provides analysts and investors with appropriate information to use in various ratios that evaluate the Company’s level of debt.

“Funds Available for Distribution” (“FAD”) represents FFO adjusted to exclude the effect of straight-line rent and above and below market lease amortization less 2^nd Generation Tenant Improvements and Leasing Costs and Building Capital Expenditures. Management believes that FAD provides analysts and investors with information that assists in the comparability of the Company’s dividend policy with other real estate companies.

“FAD Before Certain Charges”represents FAD before non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, gain on sale of third party business, participation interest income and separation charges. Management believes that FAD Before Certain Charges provides analysts and investors with appropriate information related to the Company’s core operations and for comparability of the results of its operations and dividend policy with other real estate companies.

“Funds From Operations Available to Common Stockholders” (“FFO”) is a supplemental operating performance measure used in the real estate industry. The Company calculates 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 real property, plus depreciation and amortization of real estate assets, impairment losses on depreciable investment property 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, as a performance measure for incentive compensation to its officers and other key employees.

COUSINS PROPERTIES INCORPORATED

DISCUSSION OF NON-GAAP FINANCIAL MEASURES

“FFO Before Certain Charges” represents FFO before non-depreciable impairment losses, predevelopment and other charges, loss on debt extinguishment, gain on sale of third party business, participation interest income and separation charges. Management believes that FFO Before Certain Charges provides analysts and investors with appropriate information related to the Company’s core operations and for comparability of the results of its operations with other real estate companies.

“Net Operating Income” is used by industry analysts, investors and Company management to measure operating performance of the Company’s properties. Net Operating Income, which is 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 Net Operating Income for the reasons described under FFO above.

“Same Property Net Operating Income” represents Net Operating income for those office and retail properties that have been fully operational in each of the comparable reporting periods. A fully operational property is one that achieved 90% economic occupancy for each of the two periods presented or has been substantially complete and owned by the Company for each of the two periods presented and the preceding year. Same-Property Net Operating Income allows analysts, investors and management to analyze continuing operations and evaluate the growth trend of the Company’s portfolio.