Press Release: Fourth Quarter Results 2013

Cousins Properties Reports Results for Quarter and Year Ended December 31, 2013

Highlights

  • Funds From Operations for the fourth quarter were $0.18 per share, up from $0.14 in the prior year.
  • Same property net operating income for the fourth quarter was up 3.7% over the prior year.

ATLANTA (February 13, 2014) - Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the quarter and year ended December 31, 2013.

"Our fourth quarter performance demonstrates a successful finish to a transformative year at Cousins," said Larry Gellerstedt, President and Chief Executive Officer of Cousins. "Our team executed exceptionally well in 2013, producing strong financial results and further positioning the company in high-growth Sunbelt markets while maintaining a solid balance sheet."

Portfolio Activity

  • Leased or renewed 442,000 square feet of office and retail space during the fourth quarter.
  • Same property occupancy for the fourth quarter was 90.4%, up from 89.0% in the prior year.
  • Cash-basis second generation net effective rent for the fourth quarter was up 11.3% over the prior year.

Transaction Activity

  • Sold the Inhibitex office building for $8.3 million prior to the allocation of free rent credits, generating a gain of $3.0 million.
  • Commenced construction on Emory Point Phase II, which will consist of 307 apartments and 43,000 square feet of retail space with a total projected cost of $73.3 million.
  • Closed a construction loan on Emory Point Phase II, which will provide up to $46.0 million at a floating rate of LIBOR plus 1.85% and a term of 3 years with two one-year extension options.

Financial Results

FFO was $34.3 million, or $0.18 per share, for the fourth quarter of 2013 compared with $14.2 million, or $0.14 per share, for the fourth quarter of 2012. FFO was $77.1 million, or $0.53 per share, for the year ended December 31, 2013, compared with $66.5 million, or $0.64 per share, for the same period in 2012.

Net income available to common stockholders was $2.1 million, or $0.01 per share, for the fourth quarter of 2013, compared with net income available of $30.1 million, or $0.29 per share, for the fourth quarter of 2012. Net income available was $109.1 million, or $0.76 per share, for the year ended December 31, 2013, compared with $32.8 million, or $0.32 per share, for the same period in 2012.

Investor Conference Call and Webcast

The Company will conduct a conference call at 11:00 a.m. (Eastern Time) on Friday, February 14, 2014, to discuss the results of the quarter ended December 31, 2013. The number to call for this interactive teleconference is (212) 231-2915.

A replay of the conference call will be available for 14 days by dialing (402) 977-9140 and entering the passcode 21703342. The replay can be accessed on the Company's website, www.cousinsproperties.com, through the Q4 2013 Cousins Properties Incorporated Earnings Conference Call link on the Investor Relations page.

Cousins Properties Incorporated is a leading fully-integrated real estate investment trust (REIT) with extensive experience in development, acquisition, financing, management, and leasing. Based in Atlanta, the Company actively invests in top-tier urban office assets and opportunistic mixed-use developments in Sunbelt markets.

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 at www.cousinsproperties.com. This information may also be obtained by calling the Company's Investor Relations Department at (404) 407-1898.

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; the failure of purchase, sale, or other contracts to ultimately close; the failure to achieve anticipated benefits from acquisitions or dispositions; the potential dilutive effect of common stock offerings; the availability of buyers and adequate pricing with respect to the disposition of assets; risks related to the geographic concentration of our portfolio; risks and uncertainties related to national and local economic conditions, the real estate industry in general, and the commercial real estate markets in particular; changes to the Company's strategy with regard to land and other non-core holdings that require impairment losses to be recognized; the effect of the sale of the Company's third party management and leasing business; leasing risks, including the ability to obtain new tenants or renew expiring tenants, and the ability to lease newly developed and/or recently acquired space; the 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 zoning approval, receipts of required permits, construction delays, cost overruns, and leasing risk); the loss of key personnel; the potential liability for uninsured losses, condemnation, or environmental issues; the 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; 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, 2013. 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.