Done Deals: Cousins Properties Reports Results for Quarter Ended March 31, 2009

Wednesday, May 6, 2009

Cousins Properties Reports Results for Quarter Ended March 31, 2009

ATLANTA--Cousins Properties Incorporated (NYSE:CUZ) reported its results of operations for the quarter ended March 31, 2009.

All per share amounts are reported on a diluted basis; basic per share data is included in the Condensed Consolidated Statements of Income accompanying this release.

Funds from Operations Available to Common Stockholders (“FFO”) was $7.6 million, or $0.15 per share, for the first quarter of 2009 compared with FFO of $13.8 million, or $0.27 per share, for the first quarter of 2008.

Net Income Available to Common Stockholders (“Net Income Available”) was $160.6 million, or $3.13 per share, compared with Net Income Available of $1.8 million, or $0.04 per share, for the first quarter of 2008.

First quarter highlights of the Company included the following:

As a result of a distribution from the venture to the partners, recognized approximately $167 million of deferred gain related to the June 2006 Avenue Fund transaction with Prudential.

Sold a ground-leased outparcel at The Avenue Webb Gin (top left photo) for approximately $1.8 million, generating pre-tax FFO of approximately $582,000.

Executed or renewed leases covering approximately 80,000 square feet of office space and 72,000 square feet of retail space.

Other highlights subsequent to quarter end included the following:

In April 2009, repaid in full the $83.3 million mortgage note payable secured by the San Jose MarketCenter for approximately $70 million.

The Company anticipates recognizing a gain on extinguishment of this debt of approximately $12.7 million in the second quarter of 2009.

Executed a 50,000 square foot lease with Firethorn Holdings, LLC in Terminus 200, (bottom right photo) a 25-story office building under construction at the Company’s Terminus development in Atlanta, Georgia.

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

“In an extremely challenging leasing environment, our leasing team made good progress during the first quarter, leasing new space and renewing existing space,” said Tom Bell, (top right photo) Chairman and CEO of Cousins.

“Our recently executed lease of two floors at Terminus 200 provides an encouraging start to the leasing of this asset.

" Equally encouraging was the purchase of our San Jose MarketCenter note at 84 cents on the dollar, which is a testament to our ability to put our strong balance sheet to work in this environment.

"We will continue to seek other opportunities that emerge while focusing on maintaining and strengthening our existing assets.”