Highlights

• Funds From Operations for the fourth quarter was $0.24 per share. 
• Same property net operating income on a cash basis for the fourth quarter was up 11.1% over the prior year. 
• Acquired Northpark Town Center in Atlanta, Georgia for $348 million. 
• Sold one office asset and five retail assets, recognizing gains totaling $13 million. 
• Commenced construction of Research Park V, a 173,000 square foot office building in Austin, Texas.

Cousins Properties Incorporated today reported its results of operations for the quarter and year ended December 31, 2014.

"Our achievements in the fourth quarter capped a very productive 2014 for Cousins," said Larry Gellerstedt, President and Chief Executive Officer of Cousins. "For the year we leased over 2.1 million square feet of space, we grew same-property cash net operating income by 12.3%, we increased second generation cash net office rents per square foot by 19.7%, and we initiated or completed $607 million in strategic investments. Heading into 2015, the portfolio and the balance sheet are exceptionally well-positioned to take advantage of any opportunities that present themselves in our core Sunbelt markets." 

Portfolio Activity

• Leased or renewed 636,999 square feet of office space during the fourth quarter. 
• Second generation net office rent per square foot on a cash basis increased 27.7% for the fourth quarter.

Investment Activity

• Acquired Northpark Town Center, a 1.5 million square foot Class-A office asset located in the central perimeter submarket of Atlanta, Georgia. The gross purchase price for this property was $348 million, before adjustments for customary closing costs and other closing credits. 
• Commenced construction of Research Park V, a 173,000 square foot office building in the Northwest submarket of Austin, Texas. It is the last building in a five-building complex which Cousins has developed. Total anticipated development costs are $44 million. 
• Formed a joint venture to develop Victory Center, a Class-A office tower in the Uptown submarket of Dallas, Texas, which is expected to have 466,000 square feet of space. The joint venture acquired the land in December 2014. 
• Substantially completed construction of Colorado Tower, a Class-A office tower in downtown Austin, Texas, containing 373,000 square feet of space. The building is currently 95% leased.

Disposition Activity

• Sold 777 Main, a 980,000 square foot office tower in Ft. Worth, Texas, for a gross sales price of $167 million and recognized a gain of $6.2 million. 
• Sold Mahan Village, a 147,000 square foot retail property in Tallahassee, Florida, for a gross sales price of $29.5 million and recognized a gain of $4.6 million. 
• Sold the four retail properties owned by the Cousins Watkins LLC joint venture, received a distribution of $19.8 million (after debt repayment) and recognized a gain of $2.2 million.

Financing Activity

• Closed an $85 million non-recourse mortgage loan secured by 816 Congress in Austin, Texas. This loan has a ten-year term, a fixed rate of 3.75%, and an interest-only period until December 2016.

Financial Results

FFO was $51.6 million, or $0.24 per share, for the fourth quarter of 2014, compared with $34.3 million, or $0.18 per share, for the fourth quarter of 2013. FFO was $165.2 million, or $0.81 per share, for the year ended December 31, 2014, compared with $77.1 million, or $0.53 per share, for same period in 2013. 

Net income available to common stockholders was $23.2 million, or $0.11 per share, for the fourth quarter of 2014, compared with $2.1 million, or $0.01 per share, for the fourth quarter of 2013. Net income available to common stockholders was $45.5 million, or $0.22 per share, for the year ended December 31, 2014, compared with $109.1 million, or $0.76 per share, for same period in 2013. The year ended December 31, 2013 included $56.8 million in gains recognized on the sale of 50% of the Company's interest in Terminus 100 and on the acquisition of Terminus 200, which was achieved in stages. 

2015 FFO Guidance

For the year ending December 31, 2015, the Company expects to report FFO in the range of $0.81 to $0.85 per share. This guidance reflects management's view of current and future market conditions, as well as the earnings impact of events referenced in this release and during our scheduled conference call. This guidance does not include the operational or capital impact of any future unannounced acquisition or disposition activity. This guidance also excludes the operational or capital impact of any development activity other than Research Park V, Colorado Tower, and Emory Point Phase II.

The Company's 2015 FFO guidance includes management's outlook on the following:

• Same property NOI growth of 2.5% to 3.5% on a GAAP basis. 
• Fee and other income of $7 million to $8 million. Our guidance does not include the impact of potential termination fees. 
• General and administrative expense of $21 million to $23 million, net of capitalized salaries. 
• Interest and other expenses of $43 million to $45 million, net of capitalized interest. 
• GAAP straight-lined rental income of $19 million to $21 million. 
• Above and below market rental income of $7 million to $9 million.

This guidance is provided for information purposes based on current plans and assumptions and is subject to change.