Cousins Properties Reports Results for Fourth Quarter and Year Ended December 31, 2006.

ATLANTA -- Cousins Properties Incorporated (NYSE:CUZ) today reported its results of operations for the three months and year ended December 31, 2006. All per share amounts are reported on a diluted basis; basic per share data is included in the Consolidated Statements of Income accompanying this release.

Funds from Operations to Common Stockholders ("FFO") was $26.7 million, or $0.50 per share, for the fourth quarter of 2006 compared with FFO of $22.8 million, or $0.44 per share, for the fourth quarter of 2005. FFO was $73.6 million, or $1.40 per share, for the year ended December 31, 2006 after a supplemental adjustment to exclude loss on extinguishment of debt. This compares to FFO of $73.7 million, or $1.43 per share, for the year ended December 31, 2005. Loss on extinguishment of debt was $18.2 million, or $0.35 per share, for the year ended December 31, 2006 and relates to defeasance costs on a mortgage loan repaid upon a property sale and an adjustment to mark to market the debt associated with a property contributed to a venture.

Net Income Available to Common Stockholders ("Net Income Available") was $37.3 million, or $0.70 per share, for the fourth quarter of 2006 compared with Net Income Available of $12.6 million, or $0.24 per share, for the fourth quarter of 2005. Net Income Available was $216.6 million, or $4.13 per share, for the year ended December 31, 2006 compared with $34.5 million, or $0.67 per share, for the year ended December 31, 2005.

Fourth quarter highlights of the Company included the following:

* Sold The Avenue of the Peninsula, a 373,000-square-foot specialty retail center in Rolling Hills Estates, California, for approximately $96 million and recognized a gain of approximately $20 million.

* Opened the second phase of The Avenue West Cobb. This phase is 46,000 square feet and was 94% leased at December 31, 2006.

* Formed a joint venture and commenced development of Palisades West, a two-building, 360,000-square-foot office project in Austin, Texas; 210,000 square feet is pre-leased to Dimensional Fund Advisors, a partner in the joint venture.

* Sold seven ground leased outparcels at the Company's North Point property for an aggregate price of $14.3 million. The $11.9 million aggregate gain on the sale of these outparcels was included in the Company's calculation of FFO, as these properties had not previously been depreciated.

* Sold 13 acres at its North Point property for $2.7 million resulting in a gain of $1.6 million.

* Paid a special dividend of $3.40 per share to common shareholders.

Other developments subsequent to quarter-end:

* Sold 41 acres of land adjacent to The Avenue Carriage Crossing for $11.7 million.

* Purchased 109 acres of land in Forsyth County, Georgia for $36.2 million for potential future development.

At December 31, 2006, the Company's portfolio of operational office buildings was 84% leased, its portfolio of operational retail centers was 95% leased and its operational industrial building was 100% leased.

At December 31, 2006, the Company and its joint ventures had ten retail, office and industrial projects under development and redevelopment totaling 5.3 million Company-owned square feet, and one condominium project under development containing a total of 529 units. The Company estimates the total cost of these projects will be approximately $1 billion and expects completion of these projects throughout the next four years. In addition, the Company and its joint ventures had 24 residential communities under development in which approximately 11,561 lots are available for future development or sale.

"With our third special dividend in the past four years and new development projects and acquisition starts of more than $475 million, Cousins' 2006 performance will go down as one of our best years ever," said Tom Bell, chairman and CEO of Cousins Properties. "From our purchase and pending move to 191 Peachtree Tower in downtown Atlanta to starting our largest Avenue yet, we were able to identify value creation opportunities across each of our product types and move quickly to take advantage of them."

The Condensed Consolidated Statements of Income, Condensed Consolidated Balance Sheets and a schedule entitled Funds From Operations, which reconciles Net Income Available to FFO, are attached to this press release. More detailed information on Net Income Available and FFO results is included in the "Net Income and Funds From Operations-Supplemental Detail" schedule which is included along with other supplemental information in the Company's Current Report on Form 8-K, which the Company is furnishing to the Securities and Exchange Commission ("SEC"), and which can be viewed through the "Quarterly Disclosures" and "SEC Filings" links on the Investor Relations page of the Company's Web site at www.cousinsproperties.com. This information may also be obtained by calling the Company's Investor Relations Department at [phone].

The Company will conduct a conference call at 10:00 a.m. (Eastern Time) on Tuesday, February 6, 2007, to discuss the results of the quarter ended December 31, 2006. The number to call for this interactive teleconference is [phone]. A replay of the conference call will be available for 14 days by dialing [phone] and entering the passcode 7641964. The Company will also provide an online Web simulcast and rebroadcast of its fourth quarter 2006 earnings release conference call. The live broadcast will be available through the "Q4 2006 Cousins Properties Incorporated Earnings Conference Call" link on the Investor Relations page of the Company's Web site, as well as at www.streetevents.com and www.earnings.com. The rebroadcast will be available on the Investor Relations page of the Company's Web site for 14 days.

Cousins Properties Incorporated, headquartered in Atlanta, has extensive experience in the real estate industry including the development, acquisition, financing, management and leasing of properties. The property types that Cousins actively invests in include office, multi-family, retail, industrial and land development projects. The Company's portfolio consists of interests in 7.2 million square feet of office space, 4.2 million square feet of retail space, 2.0 million square feet of industrial space, a 529 unit for-sale multi-family project under development, 24 residential communities under development, over 9,000 acres of strategically located land tracts, and significant land holdings for development of single-family residential communities. The Company also provides leasing and management services to third-party investors; its client-services portfolio comprises 14.8 million square feet of office and retail space. The Company is a fully integrated equity real estate investment trust (REIT) that has been public since 1962 and trades on the New York Stock Exchange under the symbol "CUZ." For more information on the Company, please visit its Web site at www.cousinsproperties.com.

Certain matters discussed in this news release are forward-looking statements within the meaning of the federal securities laws and are subject to uncertainties and risks, including, but not limited to, general and local economic conditions, local real estate conditions, the activity of others developing competitive projects, the risks associated with development projects (such as delay, cost overruns and leasing/sales risk of new properties), the cyclical nature of the real estate industry, the financial condition of existing tenants, interest rates, the Company's ability to obtain favorable financing or zoning, environmental matters, the effects of terrorism, the ability of the Company to close properties under contract and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2005. The words "believes", "expects", "anticipates", "estimates" and similar expressions are intended to identify forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in any forward-looking statement are reasonable, the Company can give no assurance that these plans, intentions or expectations will be achieved. Such forward-looking statements are based on current expectations and speak as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

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The table above shows Funds From Operations Available to Common Stockholders ("FFO") and the related reconciliation to Net Income Available to Common Stockholders ("Net Income Available") for Cousins Properties Incorporated and Subsidiaries. The Company calculated FFO in accordance with the National Association of Real Estate Investment Trusts' ("NAREIT") definition, which is net income available to common stockholders (computed in accordance with accounting principles generally accepted in the United States ("GAAP")), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis. For the 2005 periods, the Company modified its NAREIT defined calculations of FFO to include $5.0 million ($.10 per share) in income from a real estate venture related to the sale of real estate. The Company included this amount in FFO because, based on the nature of the investment, the Company believes that, for FFO purposes this income should not be considered gain on the sale of depreciable property. The Company presented Funds From Operations Available to Common Stockholders, Excluding Loss on Extinguishment of Debt to exclude the effect of the losses incurred during the year ended December 31, 2006. The Company views those losses as components of the sale or exchange of real estate and therefore believes they should be excluded from the FFO calculation. See further detail within Discussion of Non-GAAP Financial Measures herein.

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 the operating performance of its reportable segments and of its divisions based on FFO. Additionally, the Company uses FFO and FFO per share, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and employees.