Cousins Properties Reports Third Quarter Results FFO Per Diluted Share Increased 14%.

ATLANTA--(BUSINESS WIRE)--Nov. 4, 1998--

Third Quarter Summary

-- Funds From Operations per share increased 14% to $0.56

-- Office, retail, and medical office portfolio occupancies of 98%,

99%, and 100%

-- $600 million of projects under development

Cousins Properties Incorporated (NYSE:CUZ), the Atlanta-based diversified real estate development company, today reported record funds from operations (FFO) for the third quarter and nine months ended September 30, 1998. For the quarter, FFO per share increased 14% to $0.56 for the quarter from $0.49 for the same quarter last year. FFO rose 24% to $17.9 million from $14.4 million for the third quarter of 1997. Net income before gain on sale of investment properties was $10.7 million, or $0.33 per share, for the third quarter of 1998 compared with $7.9 million, or $0.27 per share for the same quarter last year. In the third quarter of 1997, the Company also recognized gain on sale of investment properties (net of applicable income taxes) of $3.0 million, or $0.10 per share, from the sale of two retail centers. All per share amounts are reported on a diluted basis with basic per share information included in the attached financial information.

For the first nine months, FFO per share increased 19% to $1.65 from $1.39 per share for the year-earlier period. FFO rose 28% to $52.8 million from $41.2 million for the year-earlier period. Net income before gain on sale of investment properties was $32.2 million, or $1.01 per share, for the first nine months of 1998, compared with $22.6 million, or $0.77 per share, for the year-earlier period. In the first nine months of 1998 and 1997, the Company also recognized gain on sale of investment properties (net of applicable income taxes) of $1.7 million and $5.4 million, or $0.05 and $0.18 per share, respectively. In addition to the aforementioned gain on sale of two retail centers in 1997, both nine-month periods included a gain on sales of land parcels.

Daniel M. DuPree, president and chief operating officer of Cousins, said, "We continued our track record of consistent growth in the third quarter. Our development pipeline remains robust; today, we have approximately $600 million of projects under development. These projects, diverse by both product and market, should contribute to growth in FFO for the year 1999 and beyond.

"In addition, at September 30, 1998, Cousins' portfolio of office projects was 98% leased, its retail portfolio was 99% leased, and its medical office portfolio was 100% leased, excluding projects under development."

While the Company enjoyed double-digit growth in FFO again this quarter, future growth is being secured from progress made in its $600 million development pipeline. During the quarter, Cousins began construction on a 1.3 million square-foot office tower in Charlotte through a venture with NationsBank. The $202 million project is part of a 15-acre urban village, which is located eight blocks west of NationsBank's headquarters. The building is expected to be completed in the third quarter 1999 and will house NationsBank's service department and some technology services. Recent activity at The Pinnacle in Atlanta's Buckhead submarket includes 89,000 s.f. of new leases signed during the quarter, with an additional 53,720 s.f. out for signature. The Pinnacle is over 70% signed or committed. In Cousins' retail division, leases totaling 20,000 s.f. have been signed with the Pottery Barn, Williams-Sonoma, Johnny Rockets, and Bentley at its The Avenue East Cobb project.

Cousins Properties Incorporated 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, retail, medical office and land development projects. The Company's portfolio consists of interests in 8.6 million square feet of office space, 3.4 million square feet of retail space and .6 million square feet of medical office space, and over 400 acres of land for future commercial development. Cousins 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."

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 economic conditions, local real estate conditions, interest rates, the Company's ability to obtain favorable financing, and other risks detailed from time to time in the Company's filings within the Securities and Exchange Commission, including the Form 10-Q for the quarter ended March 31, 1996. -0-

Accompanying Materials
Financial Highlights

       COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES
                   CONSOLIDATED STATEMENTS OF INCOME
    FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                              (UNAUDITED)
              ($ in thousands, except per share amounts)

                                  Three Months        Nine Months
                               Ended September 30, Ended September 30,
                               ---------------------------------------
                                 1998     1997      1998      1997
                               -------  --------  --------  --------
REVENUES:
 Rental property revenues     $ 19,168  $ 15,386  $ 52,134  $ 46,390
 Development income                803     1,081     2,327     2,535
 Management fees                   917       863     2,735     2,552
 Leasing and other fees            538       197     1,552       387
 Residential lot and
  outparcel sales                5,198     3,737    13,972     9,149
 Interest and other              1,039       969     3,011     2,652
                               -------  --------  --------  --------
                                27,663    22,233    75,731    63,665
                               -------  --------  --------  --------
INCOME FROM UNCONSOLIDATED
 JOINT VENTURES                  4,406     3,737    13,534    10,786
                               -------  --------  --------  --------
COSTS AND EXPENSES:
 Rental property operating
  expenses                       5,039     3,685    13,181    11,191
 General and administrative
  expenses                       3,495     3,403     9,460     9,750
 Depreciation and amortization   4,380     3,509    11,743    10,577
 Stock appreciation right
  (credit) expense                (183)      274      (103)      270
 Residential lot and outparcel
  cost of sales                  4,941     3,489    13,179     8,415
 Interest expense                3,369     3,426     8,912    10,701
 Property taxes on undeveloped
  land                             221       245       670       458
 Other                               4       353       113     1,425
                               -------  --------  --------  --------
                                21,266    18,384    57,155    52,787
                               -------  --------  --------  --------
INCOME FROM OPERATIONS BEFORE
 INCOME TAXES                   10,803     7,586    32,110    21,664

EXPENSE (BENEFIT) FOR INCOME
 TAXES FROM OPERATIONS              66      (314)      (41)     (919)
                               -------  --------  --------  --------
INCOME BEFORE GAIN ON SALE OF
 INVESTMENT PROPERTIES          10,737     7,900    32,151    22,583

GAIN ON SALE OF INVESTMENT
 PROPERTIES, NET OF APPLICABLE
 INCOME TAX PROVISION               --     2,974     1,657     5,370
                               -------  --------  --------  --------
NET INCOME                    $ 10,737  $ 10,874  $ 33,808  $ 27,953
                               =======  ========  ========  ========
WEIGHTED AVERAGE SHARES         31,628    29,223    31,556    29,137
                               =======  ========  ========  ========
BASIC NET INCOME PER SHARE    $    .34  $    .37  $   1.07  $    .96
                               =======  ========  ========  ========
ADJUSTED WEIGHTED AVERAGE
 SHARES                         32,070    29,672    32,016    29,558
                               =======  ========  ========  ========
DILUTED NET INCOME PER SHARE  $    .33  $    .37  $   1.06  $    .95
                               =======  ========  ========  ========
CASH DIVIDENDS DECLARED PER
 SHARE                        $    .36  $    .31  $   1.08  $    .93
                               =======  ========  ========  ========


       COUSINS PROPERTIES INCORPORATED AND CONSOLIDATED ENTITIES
                         FUNDS FROM OPERATIONS
    FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                              (UNAUDITED)
               (In thousands, except per share amounts)

                                 Three Months        Nine Months
                              Ended September 30, Ended September 30,
                                1998      1997      1998      1997
                              --------  --------  --------  --------

Income before gain on sale of
 investment properties        $ 10,737   $ 7,900  $ 32,151  $ 22,583

Depreciation and amortization    7,269     5,991    20,337    18,196

Amortization of deferred
 financing costs and
 depreciation of furniture,
 fixtures and equipment           (139)     (114)     (384)     (316)

Elimination of the recognition
 of rental revenues on a
 straight-line basis               328       491     1,018     1,259

Adjustment to reflect stock
 appreciation right expense on
 a cash basis                     (345)      180      (304)     (508)
                              --------  --------  --------  --------

Consolidated Funds From
 Operations                   $ 17,850  $ 14,448  $ 52,818  $ 41,214
                              --------  --------  --------  --------

Weighted Average Shares         31,628    29,223    31,556    29,137
                              --------  --------  --------  --------

Consolidated Funds From
 Operations Per Share-Basic      $ .56     $ .49    $ 1.67    $ 1.41
                              --------  --------  --------  --------

Adjusted Weighted Average
 Shares                         32,070    29,672    32,016    29,558
                              --------  --------  --------  --------

Consolidated Funds From
 Operations Per Share-Diluted    $ .56     $ .49    $ 1.65    $ 1.39
                              --------  --------  --------  --------

The table above shows Funds From Operations ("FFO") for Cousins Properties Incorporated and Consolidated Entities and its unconsolidated joint ventures. On a consolidated basis, FFO includes the Company's FFO and the Company's share of FFO of its unconsolidated joint ventures, but excludes the Company's share of distributions from such ventures. The Company calculates its FFO using the National Association of Real Estate Investment Trusts ("NAREIT") definition of FFO adjusted to (i) eliminate the recognition of rental revenues on a straight-line basis, (ii) reflect stock appreciation right expense on a cash basis, and (iii) recognize certain fee income as cash is received rather than when recognized in the financial statements. The Company believes its FFO presentation more properly reflects its operating results.

Management believes the Company's FFO is not directly comparable to other REITs which own a portfolio of mature income-producing properties because the Company develops projects through a development and lease-up phase before they reach their targeted cash flow returns. Furthermore, the Company eliminates in consolidation fee income for developing and leasing projects owned by consolidated entities, while capitalizing related internal costs. In addition, unlike many REITs, the Company has considerable land holdings which provide a strong base for future FFO growth as land is developed or sold in future years. Property taxes on the land, which are expensed currently, reduce current FFO.

As indicated above, the Company does not include straight-lined rents in its FFO, as it could under the NAREIT definition of FFO. Furthermore, most of the Company's leases are also escalated periodically based on the Consumer Price Index, which unlike fixed escalations, do not require rent to be straight-lined; under NAREIT's definition straight-lining of rents produces higher FFO in the early years of a lease and lower FFO in the later years of a lease.

FFO is used by industry analysts as a supplemental measure of an equity REIT's performance. FFO should not be considered an alternative to net income or other measurements under generally accepted accounting principles as an indicator of operating performance, or to cash flows from operating, investing, or financing activities as a measure of liquidity.

Supplemental detail FFO information is available from the Company upon request.