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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
     
þ   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2010
or
     
o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                    
Commission file number 001-11312
COUSINS PROPERTIES INCORPORATED
(Exact name of registrant as specified in its charter)
     
Georgia
(State or other jurisdiction
of incorporation or organization)
  58-0869052
(I.R.S. Employer
Identification No.)
     
191 Peachtree Street NE, Suite 500, Atlanta, Georgia
(Address of principal executive offices)
  30303-1740
(Zip Code)
(404) 407-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
     
Title of each class   Name of Exchange on which registered
     
Common Stock ($1 par value)   New York Stock Exchange
     
7.75% Series A Cumulative Redeemable
Preferred Stock ($1 par value)
  New York Stock Exchange
     
7.50% Series B Cumulative Redeemable
Preferred Stock ($1 par value)
  New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No þ
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No þ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
             
Large accelerated filer o   Accelerated filer þ   Non-accelerated filer o (Do not check if smaller reporting company)   Smaller reporting company o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ
     As of June 30, 2010, the aggregate market value of the common stock of Cousins Properties Incorporated held by non-affiliates was $593,746,523 based on the closing sales price as reported on the New York Stock Exchange. As of February 24, 2011, 103,635,494 shares of common stock were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
     Portions of the Registrant’s proxy statement for the annual stockholders meeting to be held on May 3, 2011 are incorporated by reference into Part III of this Form 10-K.
 
 

 


TABLE OF CONTENTS

PART I
Item 1. Business
Item 1B. Unresolved Staff Comments
Item 2. Properties
Item 3.Legal Proceedings
Item 4.Reserved
PART II
Item 5.Market for Registrant’s Common Stock and Related Stockholder Matters
Item 6.Selected Financial Data
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Quantitative and Qualitative Disclosure about Market Risk
Item 8.Financial Statements and Supplementary Data
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A. Controls and Procedures
Item 9B. Other Information
PART III
Item 10. Directors, Executive Officers and Corporate Governance
Item 11. Executive Compensation
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13. Certain Relationships and Related Transactions, and Director Independence
Item 14. Principal Accountant Fees and Services
PART IV
Item 15. Exhibits and Financial Statement Schedules
SIGNATURES
EX-10.(a)(xxv)
EX-10.(a)(xxvi)
EX-10.(a)(xxvii)
EX-10.(a)(xxviii)
EX-12
EX-21
EX-23
EX-31.1
EX-31.2
EX-32.1
EX-32.2


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FORWARD-LOOKING STATEMENTS
          Certain matters contained in this report are “forward-looking statements” within the meaning of the federal securities laws and are subject to uncertainties and risks, as itemized in Item 1A included in this Form 10-K. These forward-looking statements include information about possible or assumed future results of the Company’s business and the Company’s financial condition, liquidity, results of operations, plans and objectives. They also include, among other things, statements regarding subjects that are forward-looking by their nature, such as:
    the Company’s business and financial strategy;
 
    the Company’s ability to obtain future financing arrangements;
 
    the Company’s understanding of its competition and its ability to compete effectively;
 
    projected operating results;
 
    market and industry trends;
 
    estimates relating to future distributions;
 
    projected capital expenditures; and
 
    interest rates.
          The forward-looking statements are based upon management’s beliefs, assumptions and expectations of the Company’s future performance, taking into account information currently available. These beliefs, assumptions and expectations may change as a result of many possible events or factors, not all of which are known. If a change occurs, the Company’s business, financial condition, liquidity and results of operations may vary materially from those expressed in forward-looking statements. Actual results may vary from forward-looking statements due to, but not limited to, the following:
    availability and terms of capital and financing, both to fund operations and to refinance indebtedness as it matures;
 
    risks and uncertainties related to national and local economic conditions, the real estate industry in general and in specific markets, and the commercial, residential and condominium markets in particular;
 
    continued adverse market and economic conditions requiring the recognition of additional impairment losses;
 
    leasing risks, including an inability to obtain new tenants or renew tenants on favorable terms, or at all, upon the expiration of existing leases and the ability to lease newly developed or currently unleased space;
 
    financial condition of existing tenants;
 
    rising interest rates and insurance rates;
 
    the availability of sufficient development or investment opportunities;
 
    competition from other developers or investors;
 
    the risks associated with development projects (such as construction delay, cost overruns and leasing/sales risk of new properties);
 
    potential liability for uninsured losses, condemnation or environmental issues;
 
    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.
          The words “believes,” “expects,” “anticipates,” “estimates,” “plans,” “may,” “intend,” “will,” or similar expressions are intended to identify forward-looking statements. Although the Company believes its plans, intentions and expectations reflected in any forward-looking statements are reasonable, the Company can give no assurance that such plans, intentions or expectations will be achieved. 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.

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PART I
Item 1. Business
Corporate Profile
          Cousins Properties Incorporated (the “Registrant” or “Cousins”) is a Georgia corporation, which, since 1987, has elected to be taxed as a real estate investment trust (“REIT”). Cousins Real Estate Corporation and its subsidiaries (“CREC”) is a taxable entity wholly-owned by the Registrant, which is consolidated with the Registrant. CREC owns, develops, and manages its own real estate portfolio and performs certain real estate related services for other parties. The Registrant, its subsidiaries and CREC combined are hereafter referred to as the “Company.” The Company has been a public company since 1962, and its common stock trades on the New York Stock Exchange under the symbol “CUZ.”
          The Company’s strategy is to produce stockholder returns through the investment in and management of high-quality, well-located office and retail properties in its core markets of Georgia, Texas and North Carolina. The Company also owns interests in residential development projects, undeveloped land tracts held for investment and industrial assets, and manages properties for third party owners. Historically, the Company has engaged in timely and strategic dispositions either by sale or through contributions to ventures in which the Company retains an ownership interest. The intent of these transactions was to maximize the value of the assets the Company has created, generate capital for additional development properties and return a portion of the value created to stockholders. The Company’s current strategy will focus on maximizing value in its current portfolio through lease up, as well as opportunistic investments in office or retail properties within its core markets. The Company’s long-term strategy also includes the recycling of capital not invested in its core markets, including leasing and subsequently selling its industrial assets, liquidating its remaining for-sale multi-family residential unit inventory, and reducing its holdings of undeveloped land and residential lots. Additionally, the Company may diversify its holdings geographically in order to reduce the level of concentration in Atlanta, Georgia.
          Unless otherwise indicated, the notes referenced in the discussion below are the “Notes to Consolidated Financial Statements” included in this Annual Report on Form 10-K on pages F- 7 through F- 34.
          For a description and list of the Company’s properties, see the Item 2 tables in the report herein. The following is a summary of the Company’s 2010 activities.
Office
          As of December 31, 2010, the Company owned directly or through joint ventures 22 operating office properties totaling 7.4 million square feet. The Company developed most of the office properties it currently owns. While the Company maintains expertise in the development of office properties, given the current economic environment, it may seek to invest in existing operating office properties within its core markets. During 2010, the Company had the following activity in its office property portfolio:
    Executed new leases covering approximately 956,000 square feet.
 
    Executed renewals of leases covering approximately 385,000 square feet.
 
    Restructured the Terminus 200 venture, resulting in the full payment of the Company’s loan guarantee, a reduction of the Company’s ownership from 50% to 20%, a change in the Company’s venture partner and an amendment and extension of the related construction loan.
 
    Sold 8995 Westside Parkway, a 51,000-square-foot office building in Atlanta, Georgia, for $3.2 million, generating a gain of approximately $700,000.
Retail
          As of December 31, 2010, the Company owned directly or through joint ventures 17 operating retail centers totaling 4.7 million square feet. The Company developed most of the retail properties it currently owns. While the Company maintains expertise in development of retail properties, given the current economic environment, it may seek to invest in existing operating retail properties within its core markets. During 2010, the Company had the following activity in its retail property portfolio:
    Executed new leases covering approximately 381,000 square feet.
 
    Executed renewals of leases covering approximately 369,000 square feet.

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    Invested $14.9 million in Cousins Watkins LLC, a joint venture that holds interests in four Publix-anchored shopping centers in the Southeast.
 
    Sold San Jose MarketCenter for $85 million, generating a net gain of approximately $6.6 million.
 
    Sold nine outparcels at three retail centers generating gains of approximately $4.7 million.
Third Party Management and Other Fee Income
          As of December 31, 2010, the Company managed and/or leased 12.1 million square feet of office and retail properties for third party owners. In addition, the Company has numerous contracts to provide development and construction management services for third party owners. During 2010, the Company executed new development and construction contracts with Cox Enterprises and the College Football Hall of Fame.
Other Investments
          As of December 31, 2010, the Company owned directly or through joint ventures three operating industrial properties totaling 2.0 million square feet, 24 residential development projects, seven completed units in a for-sale multifamily project, and 9,100 acres of undeveloped land. During 2010, the Company had the following activity related to its other investments:
    Closed on the sale of 75 units at the 10 Terminus Place condominium project, generating profit of approximately $7.5 million.
 
    Sold Glenmore Garden Villas LLC (“Glenmore”) in Charlotte, North Carolina, generating a gain of approximately $369,000.
 
    Sold 53 acres of land at Jefferson Mill Business Park, generating a gain of approximately $328,000.
 
    Sold 44 acres of land at King Mill Distribution Park, generating a gain of approximately $876,000.
 
    Executed new leases covering 903,000 square feet of industrial space.
 
    Sold 624 acres of residential land, generating a gain of approximately $3.4 million.
 
    Sold 371 residential lots, generating net profits of $2.2 million.
Financing Activities
          The Company’s financing strategy is to provide capital to fund its investment activities while maintaining a relatively conservative debt level. Historically, the Company has accomplished this strategy by raising capital through bank credit facilities, construction and permanent loans secured by underlying properties, sales of assets, contribution of assets into joint ventures, and the issuance of equity securities. During 2010, the Company had the following financing activities:
    Amended its Credit Facility (which included a Term Facility and a line of credit) to, among other things, reduce overall capacity from $600 million to $350 million, increase the spread over the London Interbank Offering Rate (“LIBOR”) and changed certain financial debt covenants.
 
    Repaid the Company’s $100 million Term Facility and terminated the associated interest rate swap for a payment of approximately $9.2 million. Repayment of the Term Facility correspondingly increased the Company’s maximum borrowing capacity under its line of credit from $250 million to $350 million.
 
    Amended The Avenue Murfreesboro construction loan by reducing its capacity from $131.0 million to $113.2 million, extending the maturity date from July 2010 to July 2013 and increasing the spread over LIBOR from 1.15% to 3.00%.
 
    Obtained a new mortgage loan secured by Meridian Mark Plaza that increased the principal from $22.3 million to $27.0 million, reduced the interest rate from 8.27% to 6.00% and extended the maturity date from 2010 to 2020.
 
    Amended the Terminus 100 mortgage loan, paying down the principal from $180 million to $140 million, extending the maturity from 2012 to 2023 and reducing the interest rate from 6.13% to 5.25%.
 
    Obtained a new mortgage loan secured by The Avenue East Cobb that increased the principal from $34.5 million to $36.6 million, reduced its interest rate from 8.39% to 4.52% and extended the maturity date from 2010 to 2017.
 
    In conjunction with the formation of Cousins Watkins LLC, obtained four loans with a total borrowing capacity of $33.5 million and $28.9 million outstanding at December 31, 2010.

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Environmental Matters
          The Company’s business operations are subject to various federal, state and local environmental laws and regulations governing land, water and wetlands resources. Among these are certain laws and regulations under which an owner or operator of real estate could become liable for the costs of removal or remediation of certain hazardous or toxic substances present on or in such property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances, or the failure to properly remediate such substances, may subject the owner to substantial liability and may adversely affect the owner’s ability to develop the property or to borrow using such real estate as collateral. The Company typically manages this potential liability through performance of Phase I Environmental Site Assessments and, as necessary, Phase II environmental sampling, on properties it acquires or develops, although no assurance can be given that environmental liabilities do not exist, that the reports revealed all environmental liabilities or that no prior owner created any material environmental condition not known to the Company. In certain situations, the Company has also sought to avail itself of legal and regulatory protections offered by federal and state authorities to prospective purchasers of property. Where applicable studies have resulted in the determination that remediation was required by applicable law, the necessary remediation is typically incorporated into the development activity of the relevant property. Compliance with other applicable environmental laws and regulations is similarly incorporated into the redevelopment plans for the property. The Company is not aware of any environmental liability that the Company’s management believes would have a material adverse effect on the Company’s business, assets or results of operations.
          Certain environmental laws impose liability on a previous owner of property to the extent that hazardous or toxic substances were present during the prior ownership period. A transfer of the property does not necessarily relieve an owner of such liability. Thus, although the Company is not aware of any such situation, the Company may be liable in respect to properties previously sold.
          The Company believes that it and its properties are in compliance in all material respects with all applicable federal, state and local laws, ordinances and regulations governing the environment.
Competition
          The Company offers a range of real estate products, most of which are located in developed markets that include other real estate products of the same type. The Company competes with other real estate owners with similar properties located in its markets, and distinguishes itself to tenants/buyers primarily on the basis of location, rental rates/sales prices, services provided, reputation and the design and condition of the facilities. The Company also competes with other real estate companies, financial institutions, pension funds, partnerships, individual investors and others when attempting to acquire and develop properties.
Executive Offices; Employees
          The Registrant’s executive offices are located at 191 Peachtree Street, Suite 500, Atlanta, Georgia 30303-1740. At December 31, 2010, the Company employed 320 people.
Available Information
          The Company makes available free of charge on the “Investor Relations” page of its website, www.cousinsproperties.com, its filed and furnished reports on Forms 10-K, 10-Q and 8-K, and all amendments thereto, as soon as reasonably practicable after the reports are filed with or furnished to the Securities and Exchange Commission (the “SEC”).
          The Company’s Corporate Governance Guidelines, Director Independence Standards, Code of Business Conduct and Ethics, and the Charters of the Audit Committee, the Investment Committee and the Compensation, Succession, Nominating and Governance Committee of the Board of Directors are also available on the “Investor Relations” page of the Company’s website. The information contained on the Company’s website is not incorporated herein by reference.
          Copies of these documents (without exhibits, when applicable) are also available free of charge upon request to the Company at 191 Peachtree Street, Suite 500, Atlanta, Georgia 30303-1740, Attention: Cameron Golden, Investor Relations. Mr. Golden may also be reached by telephone at (404) 407-1984 or by facsimile at (404) 407-1002.
          In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC at www.sec.gov.

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Item 1A.   Risk Factors
          Set forth below are the risks we believe investors should consider carefully in evaluating an investment in the securities of Cousins Properties Incorporated.
General Risks of Owning and Operating Real Estate
Our ownership of commercial real estate involves a number of risks, including general economic and market risks, impairment risks, leasing risk, co-tenancy risk, uninsured losses and condemnation costs, environmental issues, joint venture structure risk, liquidity risk and regional concentration of properties, the effects of which could adversely affect our business.
          General economic and market risks. In periods of a general economic decline or a recessionary climate, our assets may not generate sufficient cash to pay our expenses, service debt or maintain our properties, and, as a result, our results of operations and cash flows may be adversely affected. Several factors may adversely affect the economic performance and value of our properties. These factors include, among other things:
    changes in the national, regional and local economic climate;
 
    local conditions such as an oversupply of properties or a reduction in demand for properties;
 
    the attractiveness of our properties to tenants or buyers;
 
    competition from other available properties;
 
    changes in market rental rates and related concessions granted to tenants such as free rent, tenant allowances and tenant improvement allowances; and
 
    the need to periodically repair, renovate and re-lease space.
          While the trends in the real estate industry and the broader U. S. economy appear to be showing signs of stabilization, conditions within some of our markets, such as unemployment, consumer demand and housing starts, continue to be unfavorable and may, as a result, adversely affect our business, financial condition, results of operations and the ability of our tenants and other parties to satisfy their contractual obligations to us. As a result, defaults by our tenants and other contracting parties may increase, which would adversely affect our results of operations. Also, tightened underwriting standards in the residential real estate markets impede potential purchasers from obtaining the necessary financing to purchase our properties. Furthermore, our ability to sell or lease our properties at favorable rates, or at all, may be adversely affected by economic conditions.
          Our ability to collect rent from tenants affects our ability to pay for adequate maintenance, insurance and other operating costs (including real estate taxes), which could increase over time. Also, the expenses of owning and operating a property are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from the property. If a property is mortgaged and we are unable to meet the mortgage payments, the lender could foreclose on the mortgage and take title to the property. In addition, interest rate levels, the availability of financing, changes in laws and governmental regulations (including those governing usage, zoning and taxes) may adversely affect our financial condition.
          Impairment risks. We regularly review our real estate assets for impairment, and, based on this review, we may record impairment losses that have an adverse effect on our results of operations. Adverse or uncertain market and economic conditions and market volatility increase the likelihood that we will be required to record additional impairment losses. The magnitude and frequency with which these charges occur could materially and adversely affect our business, financial condition and results of operations.
          Leasing risk. Our operating revenues are dependent upon entering into leases with and collecting rents from tenants. A prolonged economic decline may adversely impact tenants and potential tenants in the various markets in which our projects are located and, accordingly, could affect their ability to pay rents and possibly to occupy their space. In periods of economic decline, tenants are more likely to close unprofitable locations and/or to declare bankruptcy; and, pursuant to the various bankruptcy laws, leases may be rejected and thereby terminated. When leases expire or are terminated, replacement tenants may or may not be available upon

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acceptable terms and conditions. In addition, our cash flows and results of operations could be adversely impacted if existing leases expire or are terminated and, at such time, market rental rates are lower than the previous contractual rental rates. Also, during these types of economic conditions, our tenants may approach us for additional concessions in order to remain open and operating. The granting of these concessions may adversely affect our results of operations and cash flows to the extent that they result in reduced rental rates or additional capital improvements or allowances paid to or on behalf of the tenants.
          Co-tenancy risk. Our cash flow and results of operations could be adversely impacted by co-tenancy provisions in certain of our leases with retail tenants. A co-tenancy provision may condition the tenant’s obligation to open, the amount of rent payable or the tenant’s obligation to continue occupancy based on the presence of another tenant in the project or on minimum occupancy levels in the project. In certain situations, a tenant could have the right to terminate a lease early if a co-tenancy condition remains unsatisfied. Our results of operations and our ability to pay dividends would be adversely affected if a significant number of our tenants had their rent reduced or terminated their leases as a result of co-tenancy provisions.
          Uninsured losses and condemnation costs. Accidents, earthquakes, terrorism incidents and other losses at our properties could materially adversely affect our operating results. Casualties may occur that significantly damage an operating property, and insurance proceeds may be materially less than the total loss incurred by us. Although we maintain casualty insurance under policies we believe to be adequate and appropriate, some types of losses, such as lease and other contract claims, generally are not insured. Certain types of insurance may not be available or may be available on terms that could result in large uninsured losses. We own property in California, Tennessee and other locations where property is potentially subject to damage from earthquakes, as well as other natural catastrophes. We also own property that could be subject to loss due to terrorism incidents. The earthquake insurance and terrorism insurance markets, in particular, tend to be volatile and the availability and pricing of insurance to cover losses from earthquakes and terrorism incidents may be unfavorable from time to time. In addition, earthquakes and terrorism incidents could result in a significant loss that is uninsured due to the high level of deductibles or damage in excess of levels of coverage. Property ownership also involves potential liability to third parties for such matters as personal injuries occurring on the property. Such losses may not be fully insured. In addition to uninsured losses, various government authorities may condemn all or parts of operating properties. Such condemnations could adversely affect the viability of such projects.
          Environmental issues. Environmental issues that arise at our properties could have an adverse effect on our financial condition and results of operations. Federal, state and local laws and regulations relating to the protection of the environment may require a current or previous owner or operator of real estate to investigate and clean up hazardous or toxic substances or petroleum product releases at a property. If determined to be liable, the owner or operator may have to pay a governmental entity or third parties for property damage and for investigation and clean-up costs incurred by such parties in connection with the contamination, or perform such investigation and clean-up itself. Although certain legal protections may be available to prospective purchasers of property, these laws typically impose clean-up responsibility and liability without regard to whether the owner or operator knew of or caused the presence of the regulated substances. Even if more than one person may have been responsible for the release of regulated substances at the property, each person covered by the environmental laws may be held responsible for all of the clean-up costs incurred. In addition, third parties may sue the owner or operator of a site for damages and costs resulting from regulated substances emanating from that site. We are not currently aware of any environmental liabilities at locations that we believe could have a material adverse effect on our business, assets, financial condition or results of operations. Unidentified environmental liabilities could arise, however, and could have an adverse effect on our financial condition and results of operations.
          Joint venture structure risks. Similar to other real estate companies, we have interests in a number of joint ventures (including partnerships and limited liability companies) and may in the future invest in real estate through such structures. Our venture partners have rights to take some actions over which we have no control, or the right to withhold approval of actions that we propose, either of which could adversely affect our interests in the related joint ventures and in some cases our overall financial condition or results of operations. These structures involve participation by other parties whose interests and rights may not be the same as ours. For example, a venture partner might have economic and/or other business interests or goals which are unlike

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or incompatible with our business interests or goals and those venture partners may be in a position to take action contrary to our interests, including maintaining our REIT status. In addition, such venture partners may become bankrupt and such proceedings could have an adverse impact on the operation of the partnership or joint venture. Furthermore, the success of a project may be dependent upon the expertise, business judgment, diligence and effectiveness of our venture partners in matters that are outside our control. Thus, the involvement of venture partners could adversely impact the development, operation, ownership or disposition of the underlying properties.
          Liquidity risk. Real estate investments are relatively illiquid and can be difficult to sell and convert to cash quickly, especially if market conditions are not favorable. As a result, our ability to sell one or more of our properties in response to any changes in economic or other conditions may be limited. In the event we determine a need to sell a property, we may not be able to do so in the desired time period, the sales price of the property may not meet our expectations or requirements, and we may be required to record an impairment loss on the property as a result.
          Regional concentration of properties. Currently, a large percentage of our properties are located in metropolitan Atlanta, Georgia. In the future, there may continue to be significant concentrations in metropolitan Atlanta, Georgia and/or other markets. If conditions deteriorate in any market in which we have significant holdings, our interests could be adversely affected by, among other things, loss in value of properties, decreased cash flows and inability to make or maintain distributions to stockholders.
Compliance or failure to comply with the Americans with Disabilities Act or other safety regulations and requirements could result in substantial costs.
          The Americans with Disabilities Act generally requires that certain public buildings be made accessible to disabled persons. Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants. If, under the Americans with Disabilities Act, we are required to make substantial alterations and capital expenditures in one or more of our properties, including the removal of access barriers, it could adversely affect our financial condition and results of operations, as well as the amount of cash available for distribution to our stockholders.
          Our properties are also subject to various federal, state and local regulatory requirements, such as state and local fire and life safety requirements. If we fail to comply with these requirements, we could incur fines or private damage awards. We do not know whether existing requirements will change or whether compliance with future requirements will require significant unanticipated expenditures that will affect our cash flow and results of operations.
Financing Risks
At certain times, interest rates and other market conditions for obtaining capital are unfavorable, and, as a result, we may be unable to raise capital needed to invest in acquisition or development opportunities, maintain our properties or otherwise satisfy our commitments on a timely basis, or we may be forced to borrow money at higher interest rates or under adverse terms, which could adversely affect returns on our investments, our cash flows and results of operations.
          We finance our investments and development projects through one or more of the following: our bank Credit Facility, permanent mortgages, proceeds from the sale of assets, construction loans, and joint venture equity. In addition, we have raised capital through the issuance of common stock and preferred stock to supplement our capital needs. Each of these sources may be constrained from time to time because of market conditions, and interest rates may be unfavorable at any given point in time. These sources of capital, and the risks associated with each, include the following:
    Credit facilities. Terms and conditions available in the marketplace for credit facilities vary over time. We can provide no assurance that the amount we need from our Credit Facility will be available at any given time, or at all, or that the rates and fees charged by the lenders will be acceptable to us. We incur interest under our Credit Facility at a variable rate. Variable rate debt creates higher debt service requirements if market interest rates increase, which would adversely affect our cash flow and results of operations. Our Credit Facility contains customary restrictions, requirements and other limitations

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      on our ability to incur indebtedness, including restrictions on total debt outstanding, restrictions on secured recourse debt outstanding, and requirements to maintain minimum debt service and fixed charge coverage ratios. Our continued ability to borrow under our Credit Facility is subject to compliance with our financial and other covenants.
 
    Mortgage financing. The availability of financing in the mortgage markets varies from time to time depending on various conditions, including the willingness of mortgage lenders to lend at any given point in time. Interest rates and loan-to-value ratios may also be volatile, and we may from time to time elect not to proceed with mortgage financing due to unfavorable terms offered by lenders. This could adversely affect our ability to finance investment or development activities. In addition, if a property is mortgaged to secure payment of indebtedness and we are unable to make the mortgage payments, the lender may foreclose, resulting in loss of income and asset value.
 
    Property sales. Real estate markets tend to experience market cycles. Because of such cycles, the potential terms and conditions of sales, including prices, may be unfavorable for extended periods of time. In addition, our status as a REIT limits our ability to sell properties and this may affect our ability to liquidate an investment. As a result, our ability to raise capital through property sales in order to fund our investment and development projects or other cash needs could be limited. In addition, mortgage financing on a property may prohibit prepayment and/or impose a prepayment penalty upon the sale of a mortgaged property, which may decrease the proceeds from a sale or refinancing or make the sale or refinancing impractical.
 
    Construction loans. Construction loans generally relate to specific assets under construction and fund costs above an initial equity amount deemed acceptable to the lender. Terms and conditions of construction facilities vary, but they generally carry a term of two to five years, charge interest at variable rates and require the lender to be satisfied with the nature and amount of construction costs prior to funding. While construction lending is generally competitive and offered by many financial institutions, there may be times when these facilities are not available or are only available upon unfavorable terms which could have an adverse effect on our ability to fund development projects or on our ability to achieve the returns we expect.
 
    Joint ventures. Joint ventures, including partnerships or limited liability companies, tend to be complex arrangements, and there are only a limited number of parties willing to undertake such investment structures. There is no guarantee that we will be able to undertake these ventures at the times we need capital.
 
    Common stock. We have sold common stock from time to time to raise capital, most recently in September 2009. The issuance of common stock can reduce the percentage of stock ownership of individual current stockholders, and we can provide no assurance that there will not be further dilution to our stockholders from future issuances of stock. The market price of our common stock could decline as a result of issuances or sales of our common stock in the market after such offerings or the perception that such issuances or sales could occur. Additionally, future issuances or sales of our common stock may be at prices below the offering prices of past common stock offered, which could adversely affect the price of our common stock.
 
    Preferred stock. The availability of preferred stock at favorable terms and conditions is dependent upon a number of factors including the general condition of the economy, the overall interest rate environment, the condition of the capital markets and the demand for this product by potential holders of the securities. We can provide no assurance that conditions will be favorable for future issuances of preferred stock when we need the capital, which could have an adverse effect on our ability to fund investments and development projects.
We may not be able to refinance maturing obligations on favorable terms which could have an adverse effect on our liquidity and financial position.
          We may not be able to refinance debt secured by our properties at the same levels or on the same terms, which could adversely affect our business, financial condition and results of operations. Further, at the

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time the loan matures, the property may be worth less than the loan amount and, as a result, the Company may determine not to refinance the loan and permit foreclosure, generating a loss to the Company.
Covenants contained in our Credit Facility and mortgages could restrict or hinder our operational flexibility, which could adversely affect our results of operations.
          Our Credit Facility imposes financial and operating covenants on us. These covenants may be modified from time to time, but covenants of this type typically include restrictions and limitations on our ability to incur debt, as well as limitations on the amount of our unsecured debt, limitations on distributions to stockholders, and limitations on the amount of joint venture activity in which we may engage. These covenants may limit our flexibility in making business decisions. In addition, our Credit Facility contains financial covenants that require that our earnings, as defined, exceed our fixed charges by a specified amount. If our earnings decline or if our fixed charges increase, we are at greater risk of violating these covenants. A prolonged economic downturn could cause our earnings to decline thereby increasing our risk of violating these covenants. If we fail to meet these covenants, our ability to borrow may be impaired, which could potentially make it more difficult to fund our capital and operating needs. In addition, our failure to comply with such covenants could cause a default, and we may then be required to repay our outstanding debt with capital from other sources. Under those circumstances, other sources of capital may not be available to us or may be available only on unattractive terms, and may require the issuance of equity.
          Additionally, some of our properties are subject to mortgages. These mortgages contain customary negative covenants, including limitations on our ability, without the lender’s prior consent, to further mortgage that property, to modify existing leases or to sell that property. Compliance with these covenants and requirements could harm our operational flexibility and financial condition.
Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our securities.
          Total debt as a percentage of either total asset value or total market capitalization is often used by analysts to gauge the financial health of equity REITs such as us. If our degree of leverage is viewed unfavorably by lenders or potential joint venture partners, it could affect our ability to obtain additional financing. In general, our degree of leverage could also make us more vulnerable to a downturn in business or the economy. In addition, changes in our debt to market capitalization ratio, which is in part a function of our stock price, or to other measures of asset value used by financial analysts, may have an adverse effect on the market price of our equity securities.
Real Estate Development Risks
We face risks associated with the development of real estate, such as delay, cost overruns and the possibility that we are unable to lease a portion of the space that we build, which could adversely affect our results.
          While current market conditions are generally unfavorable for development, and our development activities are lower than in past years, we have historically undertaken more commercial development activity relative to our size than most other public real estate companies. Development activities contain certain inherent risks. Although we seek to minimize risks from commercial development through various management controls and procedures, development risks cannot be eliminated. Some of the key factors affecting development of commercial property are as follows:
    The availability of sufficient development opportunities. Absence of sufficient development opportunities, such as in the past few years, could result in our experiencing slower growth in earnings and cash flows. Development opportunities are dependent upon a wide variety of factors. From time to time, availability of these opportunities can be volatile as a result of, among other things, economic conditions and product supply/demand characteristics in a particular market. In a period of prolonged economic downturn, the number of development opportunities typically declines among all of our product types.

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    Abandoned predevelopment costs. The development process inherently requires that a large number of opportunities be pursued with only a few actually being developed and constructed. We may incur significant costs for predevelopment activity for projects that are later abandoned which would directly affect our results of operations. We have procedures and controls in place that are intended to minimize this risk, but it is likely that there will be predevelopment costs charged to expense on an ongoing basis.
 
    Project costs. Construction and leasing of a project involves a variety of costs that cannot always be identified at the beginning of a project. Costs may arise that have not been anticipated or actual costs may exceed estimated costs. These additional costs can be significant and could adversely impact our return on a project and the expected results of operations upon completion of the project. Also, construction costs vary over time based upon many factors, including the demand for building materials. We attempt to mitigate the risk of unanticipated increases in construction costs on our development projects through guaranteed maximum price contracts and pre-ordering of certain materials, but we may be adversely affected by increased construction costs on our current and future projects.
 
    Leasing/Sales risk. The success of a commercial real estate development project is dependent upon, among other factors, entering into leases with acceptable terms within a predefined lease-up period or selling units or lots at acceptable prices within an estimated period. Although our policy is to achieve pre-leasing/pre-sales goals (which vary by market, product type and circumstances) before committing to a project, it is likely only some percentage of the space in a project will be leased or under contract to be sold at the time we commit to the project. If the space is not leased or sold on schedule and upon the expected terms and conditions, our returns, future earnings and results of operations from the project could be adversely impacted. In periods of economic decline, unleased space at new development projects is generally more difficult to lease on favorable terms than during periods of economic expansion. Whether or not tenants are willing to enter into leases on the terms and conditions we project and on the timetable we expect, and whether sales will occur at the prices we anticipate and in the time period we plan, will depend upon a number of factors, many of which are outside our control. These factors may include:
    general business conditions in the economy or in the tenants’ or prospective tenants’ industries;
 
    supply and demand conditions for space in the marketplace; and
 
    level of competition in the marketplace.
    Reputation risks. We have historically developed and managed our real estate portfolio and believe that we have built a positive reputation for quality and service with our lenders, joint venture partners and tenants, as well as with our third-party management clients. If we were viewed as developing underperforming properties, suffered sustained losses on our investments, defaulted on a significant level of loans or experienced significant foreclosure or deed in lieu of foreclosure of our properties, our reputation could be damaged. Damage to our reputation could make it more difficult to successfully develop or acquire properties in the future and to continue to grow and expand our relationships with our lenders, joint venture partners, tenants and third-party management clients, which could adversely affect our business, financial condition and results of operations.
 
    Governmental approvals. All necessary zoning, land-use, building, occupancy and other required governmental permits and authorization may not be obtained or may not be obtained on a timely basis resulting in possible delays, decreased profitability and increased management time and attention.
We may make more property acquisitions in the future, which exposes us to additional risks associated with such property acquisitions.
          In the current market environment, development opportunities may be limited, and as a result, we may invest more heavily in property acquisitions, including the acquisition and redevelopment of distressed properties. The risks associated with property acquisitions is generally the same as those described above for

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real estate development. However, certain additional risks may be present for property acquisitions and redevelopment projects, including:
    we may have difficulty finding properties that meet our standards and negotiating with new or existing tenants;
 
    the extent of competition in the market for attractive acquisitions may hinder our future level of property acquisitions or redevelopment projects;
 
    the actual costs and timing of repositioning or redeveloping acquired properties may be greater than our estimates, which would affect our yield and cash investment in the property;
 
    the occupancy levels, lease-up timing and rental rates may not meet our expectations, making the project unprofitable;
 
    the acquired or redeveloped property may be in a market that is unfamiliar to us and could present additional unforeseen business challenges:
 
    acquired properties may fail to perform as expected;
 
    we may be unable to obtain financing for acquisitions on favorable terms or at all; and
 
    we may be unable to quickly and efficiently integrate new acquisitions into our existing operations, and significant levels of management’s time and attention could be involved in these projects, diverting their time from our day-to-day operations.
          Any of these risks could have an adverse effect on our results of operations and financial condition. In addition, we may acquire properties subject to liabilities, including environmental, and without any recourse, or with only limited recourse, against the prior owners or other third parties with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle or contest it, which could adversely affect our business, results of operations and cash flow.
Risks Associated with our Land Developments and Investments
Any failure to timely sell, or a decline in pricing of, our residential lots and undeveloped residential land could adversely affect our results of operations.
          We develop residential subdivisions, primarily in metropolitan Atlanta, Georgia. We also participate in joint ventures that develop or plan to develop subdivisions in metropolitan Atlanta, as well as Texas and Florida. Residential lot sales are highly cyclical and can be affected by the availability of mortgage financing, interest rates and local issues, including the availability of jobs, transportation and the quality of public schools. Once a development is undertaken, no assurances can be given that we will be able to sell the various developed lots in a timely manner. Failure to sell such lots in a timely manner could result in significantly increased carrying costs, erosion or elimination of profit with respect to any development and impairment losses.
          In addition, actual construction and development costs with respect to subdivisions can exceed estimates for various reasons, including unknown site conditions. The timing of subdivision lot sales are, by their nature, difficult to predict with any precision. Additionally, market conditions may change between the time we decide to develop a property and the time that all or some of the lots may be ready for sale.
          Similarly, we often hold undeveloped residential land for long periods of time prior to development or sale. Any changes in market conditions between the time we acquire land and the time we develop and/or sell land could cause the Company’s estimates of proceeds and related profits from such sales to be lower or result in an impairment charge. Periods of economic downturn can cause estimated sales prices to decline, increasing the likelihood that we will be required to record impairment losses. Estimates of sales and profits may differ substantially from actual sales and profits and as a result, our results of operations may differ substantially from these estimates.

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Any failure to timely sell or lease non-income producing land could adversely affect our results of operations.
          We maintain significant holdings of non-income producing land in the form of land tracts and outparcels. Our strategies with respect to these parcels of land include (1) developing the land at a future date as a retail, office, mixed-use or multi-use income producing property or developing it for single-family or for-sale multi-family residential uses; (2) ground leasing the land to third parties; and (3) selling the parcels to third parties. Before we develop, lease or sell these land parcels, we incur carrying costs, including interest and property tax expense. If we are unable to sell this land or convert it into income producing property in a timely manner, our results of operations and liquidity could be adversely affected.
Risks Associated with our Third Party Management Business
Our third party management business may experience volatility based on a number of factors, including termination of contracts, which could adversely affect our results of operations.
          We engage in third party development, leasing, property management, asset management and property services to unrelated property owners. Contracts for such services are generally short-term in nature and permit termination without extensive notice. Fees from such activities can be volatile due to unexpected terminations of such contracts. Extensive unexpected terminations could materially adversely affect our results of operations. Further, the timing of the generation of new contracts for services is difficult to predict.
General Business Risks
We may not adequately or accurately assess new opportunities, which could adversely impact our results of operations.
          Our estimates and expectations with respect to new lines of business and opportunities may differ substantially from actual results, and any losses from these endeavors could materially adversely affect our results of operations. We conduct business in an entrepreneurial manner. We seek opportunities in various sectors of real estate and in various geographical areas and from time to time undertake new opportunities, including new lines of business. Not all opportunities or lines of business prove to be profitable. We expect from time to time that some of our business lines may have to be terminated because they do not meet our profit expectations. Termination of these business lines may result in the write off of certain related assets and/or the termination of personnel, which would adversely impact results of operations.
We are dependent upon key personnel, the loss of any of whom could adversely impair our ability to execute our business.
          One of our objectives is to develop and maintain a strong management group at all levels. At any given time we could lose the services of key executives and other employees. None of our key executives or other employees is subject to employment contracts. Further, we do not carry key person insurance on any of our executive officers or other key employees. The loss of services of any of our key employees could have an adverse effect upon our results of operations, financial condition and our ability to execute our business strategy.
Our restated and amended articles of incorporation contain limitations on ownership of our stock, which may prevent a change in control that might otherwise be in the best interests of our stockholders.
          Our restated and amended articles of incorporation impose limitations on the ownership of our stock. In general, except for certain individuals who owned stock at the time of adoption of these limitations, and except for persons that are granted waivers by our Board of Directors, no individual or entity may own more than 3.9% of the value of our outstanding stock. The ownership limitation may have the effect of delaying, inhibiting or preventing a transaction or a change in control that might involve a premium price for our stock or otherwise be in the best interest of our stockholders.

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We experience fluctuations and variability in our operating results on a quarterly basis and in the market price of our common stock and, as a result, our historical performance may not be a meaningful indicator of future results.
          Our operating results have fluctuated greatly in the past, due to volatility in land tract and outparcel sales, property sales, and residential lot sales, in addition to one-time, nonrecurring transactions that may be significant. We anticipate future fluctuations in our quarterly results, which does not allow for predictability in the market by analysts and investors. Therefore, our historical performance may not be a meaningful indicator of our future results.
          The market prices of shares of our common stock have been and may continue to be subject to fluctuation due to many events and factors such as those described in this report including:
    actual or anticipated variations in our operating results, funds from operations or liquidity;
 
    changes in our earnings or analyst estimates and any failure to meet such estimates;
 
    the general reputation of real estate as an attractive investment in comparison to other equity securities;
 
    the general stock and bond market conditions, including changes in interest rates or fixed income securities;
 
    changes in tax laws;
 
    changes to our dividend policy;
 
    changes in market valuations of our properties;
 
    adverse market reaction to the amount of our outstanding debt at any time, the amount of our maturing debt and our ability to refinance such debt on favorable terms;
 
    any failure to comply with existing debt covenants;
 
    any foreclosure or deed in lieu of foreclosure of our properties;
 
    additions or departures of key executives and other employees;
 
    actions by institutional stockholders;
 
    the realization of any of the other risk factors described in this report; and
 
    general market and economic conditions.
          Many of the factors listed above are beyond our control. Those factors may cause market prices of shares of our common stock to decline, regardless of our financial performance, condition and prospects. The market price of shares of our common stock may fall significantly in the future, and it may be difficult for our stockholders to resell our common stock at prices they find attractive, or at all.
If our future operating performance does not meet third-party projections, our stock price could decline.
          Several independent securities analysts publish quarterly and annual projections of our financial performance. These projections are developed independently by third-party securities analysts based on their own analyses and we undertake no obligation to monitor, and take no responsibility for, such projections. Such estimates are inherently subject to uncertainty and should not be relied upon as being indicative of the performance that we anticipate for any applicable period. Our actual revenues and net income may differ materially from what is projected by securities analysts. If our actual results do not meet analysts’ guidance, our stock price could decline significantly.

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Federal Income Tax Risks
Any failure to continue to qualify as a REIT for federal income tax purposes could have a material adverse impact on us and our stockholders.
          We intend to operate in a manner to qualify as a REIT for federal income tax purposes. Qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code (the “Code”), for which there are only limited judicial or administrative interpretations. Certain facts and circumstances not entirely within our control may affect our ability to qualify as a REIT. In addition, we can provide no assurance that legislation, new regulations, administrative interpretations or court decisions will not adversely affect our qualification as a REIT or the federal income tax consequences of our REIT status.
          If we were to fail to qualify as a REIT, we would not be allowed a deduction for distributions to stockholders in computing our taxable income. In this case, we would be subject to federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates. Unless entitled to relief under certain Code provisions, we also would be disqualified from operating as a REIT for the four taxable years following the year during which qualification was lost. As a result, the cash available for distribution to our stockholders would be reduced for each of the years involved. Although we currently intend to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause us to revoke the REIT election.
          In order to qualify as a REIT, under current law, we generally are required each taxable year to distribute to our stockholders at least 90% of our net taxable income (excluding any net capital gain). To the extent that we do not distribute all of our net capital gain or distribute at least 90%, but less than 100%, of our other taxable income, we are subject to tax on the undistributed amounts at regular corporate rates. In addition, we are subject to a 4% nondeductible excise tax to the extent that distributions paid by us during the calendar year are less than the sum of the following:
    85% of our ordinary income;
 
    95% of our net capital gain income for that year; and
 
    100% of our undistributed taxable income (including any net capital gains) from prior years.
          We intend to make distributions to our stockholders to comply with the 90% distribution requirement, to avoid corporate-level tax on undistributed taxable income and to avoid the nondeductible excise tax. Distributions could be made in cash, stock or in a combination of cash and stock. Differences in timing between taxable income and cash available for distribution could require us to borrow funds to meet the 90% distribution requirement, to avoid corporate-level tax on undistributed taxable income and to avoid the nondeductible excise tax. Satisfying the distribution requirements may also make it more difficult to fund new investment or development projects.
Certain property transfers may be characterized as prohibited transactions, resulting in a tax on any gain attributable to the transaction.
          From time to time, we may transfer or otherwise dispose of some of our properties. Under the Code, any gains resulting from transfers or dispositions, from other than our taxable REIT subsidiary, are deemed to be prohibited transactions would be subject to a 100% tax on any gain associated with the transaction. Prohibited transactions generally include sales of assets that constitute inventory or other property held for sale to customers in the ordinary course of business. Since we acquire properties primarily for investment purposes, we do not believe that our occasional transfers or disposals of property are deemed to be prohibited transactions. However, whether or not the property qualifies as held for investment purposes depends on all the facts and circumstances surrounding the particular transaction. The Internal Revenue Service may contend that certain transfers or disposals of properties by us are prohibited transactions. While we believe that the Internal Revenue Service would not prevail in any such dispute, if the Internal Revenue Service were to argue successfully that a transfer or disposition of property constituted a prohibited transaction, we would be required to pay a tax equal to 100% of any gain allocable to us from the prohibited transaction. In addition, income from a prohibited transaction might adversely affect our ability to satisfy the income tests for qualification as a REIT for federal income tax purposes.

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Disclosure Controls and Internal Control over Financial Reporting Risks
Our business could be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal control over financial reporting.
          The design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations. While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives at all times. Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity.
Item 1B. Unresolved Staff Comments.
          Not applicable.

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Item 2. Properties
     The following tables set forth certain information related to significant operating properties in which the Company has an ownership interest. Information presented in Note 4 to the Consolidated Financial Statements provides additional information related to the Company’s joint ventures. Except as noted, all information presented is as of December 31, 2010. Where noted by italicized numbers, additional information is contained in the footnotes on page 26. Dollars are stated in thousands.
Table of Major Operating Office, Retail and Industrial Properties
                                             
                        Average       Major        
    Year Development       Company’s           2010       Tenants'     Cost and Cost  
    Completed or       Ownership   Square Feet   Percentage   Economic   Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest   and Acres   Leased   Occupancy (1)   (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Office
191 Peachtree Tower (3)
Atlanta, GA
  2006   N/A   100%   1,219,000   79%   75%   Deloitte & Touche (2024/2034)     311,893     $ 226,042  
 
              2 acres (3)           Hall, Booth, Smith & Slover     56,259     $ 181,340  
 
                          (2021/2031)                
 
                          Ogletree, Deakins, Nash, Smoak     52,510          
 
                          & Stewart (2019/2029)                
 
                          Carlock, Copeland & Stair (2022/2032)     52,028          
 
                          Cooper Carry (2022/2032)     50,208          
 
                                           
The American Cancer Society Center (4)
                               
Atlanta, GA
  1999   N/A   100%   996,000   95%   85%   American Cancer Society (2022/2032)     275,198     $ 97,688  
 
              4 acres (5)           US South (2021) (5)     219,277     $ 43,977  
 
                          Co Space Services (2020/2025)     120,298          
 
                          Georgia Lottery Corp. (2023)     96,265          
 
                          Turner Broadcasting (2011/2021)     90,455          
 
                                           
Terminus 100
Atlanta, GA
  2007   N/A   100%   656,000   95%   92%   CB Richard Ellis (2019/2024)     83,156     $ 169,333  
 
              4 acres           Morgan Stanley (2018/2028)     71,188     $ 140,966  
 
                          Premiere Global Services (2018/2028)     65,084          
 
                          Wells Fargo Bank NA (2017/2027)     47,368          
 
                          Cumulus Media (2017)     47,000          
 
                          Bain & Company (2019/2029)     46,412          
 
                                           
The Points at Waterview
Suburban Dallas, TX
  2000   N/A   100%   203,000   88%   91%   Bombardier Aerospace Corp.     97,740     $ 30,693  
 
              15 acres           (2013/2023)           $ 16,227  
 
                          Liberty Mutual (2013/2023)     37,382          
 
                                           
Lakeshore Park Plaza
Birmingham, AL
  1998   Daniel Realty   100% (6)   197,000   94%   96%   Synovus Mortgage (2017/2022)     31,874     $ 20,792  
 
      Company       12 acres           Daxko, LLC (2011)     21,120     $ 12,236  
 
                          Southern Care (2013/2018)     13,768          
 
                                           
600 University Park Place
Birmingham, AL
  2000   Daniel Realty   100% (6)   123,000   86%   98%   Daxko, LLC (2022)     31,119     $ 18,979  
 
      Company       10 acres           O2 Ideas (2014/2024)     25,465     $ 12,175  
 
                                           
Meridian Mark Plaza
Atlanta, GA
  1999   N/A   100%   160,000   97%   91%   Northside Hospital (7)     54,585     $ 27,728  
 
              3 acres           (2018/2023) (8)           $ 15,076  
 
                          Children’s Healthcare of     40,958          
 
                          Atlanta (2023) (8)                
 
                          Georgia Reproductive (2017/2027)     13,622          

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                        Average       Major        
    Year Development       Company’s           2010       Tenants’     Cost and Cost  
    Completed or       Ownership   Square Feet   Percentage   Economic   Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest   and Acres   Leased   Occupancy (1)   (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Office (cont’d)
                                           
 
                                           
100 North Point Center East
Suburban Atlanta, GA
  1995   N/A   100%   128,000   94%   93%   Schweitzer-Mauduit     30,406     $ 13,007  
 
              7 acres           International (2017/2022)           $ 7,688  
 
                          Med Assets HSCA (2015/2020)     31,236          
 
                          Golden Peanut Co. (2017)     18,104          
 
                                           
200 North Point Center East
Suburban Atlanta, GA
  1996   N/A   100%   130,000   100%   100%   Med Assets HSCA (2015/2020)     89,424     $ 12,125  
 
              9 acres           Morgan Stanley (2011)     15,709     $ 7,801  
 
                                           
333 North Point Center East
Suburban Atlanta, GA
  1998   N/A   100%   130,000   98%   93%   Merrill Lynch (2014/2024)     35,949     $ 14,249  
 
              9 acres           Nokia (2013/2023)     33,457     $ 6,895  
 
                          Wells Fargo Bank NA (2013/2016) (9)     26,153          
 
                                           
555 North Point Center East
Suburban Atlanta, GA
  2000   N/A   100%   152,000   98%   96%   Kids II, Inc. (2011)     64,093     $ 18,191  
 
              10 acres           Regus Business Centre (2011/2016)     22,422     $ 9,832  
 
                                           
Galleria 75
Suburban Atlanta, GA
  2004   N/A   100%   111,000   67%   63%   Parkmobile USA, Inc (2015)     9,281     $ 12,043  
 
              7 acres           Orcatec LLC (2016)     9,035     $ 9,941  
 
                                           
Cosmopolitan Center
Atlanta, GA
  2006   N/A   100%   84,000   93%   93%   City of Sandy Springs (2011)     32,800     $ 11,427  
 
              8 acres                       $ 9,656  
 
                                           
Inhibitex
Suburban Atlanta, GA
  2005   N/A   100%   51,000   100%   100%   Inhibitex (2015/2025)     50,933     $ 6,402  
 
              5 acres                       $ 4,506  
 
                                           
221 Peachtree Center Avenue
Parking Garage
Atlanta, GA
  2007   N/A   100%   N/A   N/A   N/A   N/A     N/A     $ 17,665  
 
              1 acre                       $ 16,378  
 
                                           
One Georgia Center
Atlanta, GA
  2000   Prudential (7)   88.5% (10)   376,000   96%   96%   Georgia Department of     293,035     $ 59,966  
 
              3 acres           Transportation (2019)           $ 44,042  
 
                                           

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                        Average       Major        
    Year Development       Company’s           2010       Tenants’     Cost and Cost  
    Completed or       Ownership   Square Feet   Percentage   Economic   Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest   and Acres   Leased   Occupancy (1)   (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Office (cont’d)
                                           
 
                                           
Palisades West Building 1
Austin, TX
  2008   Dimensional Fund   50%   216,000   100%   100%   Dimensional Fund Advisors     215,848     $ 101,583  
 
      Advisors & Forestar       13 acres           (2023/2043)           $ 92,881  
 
      Real Estate Group                                    
 
                                           
Palisades West Building 2
Austin, TX
  2008   Dimensional Fund   50%   157,000   93%   35%   St. Jude Medical (2018/2023)     87,061     $ 33,421  
 
      Advisors & Forestar       6 acres           Forestar Real Estate Group (2018/2025)     32,236     $ 31,815  
 
      Real Estate Group                                    
 
                                           
Gateway Village
Charlotte, NC
  2001   Bank of America (7)   50% (11)   1,065,000   100%   100%   Bank of America (7) (2016/2036)     1,064,990     $ 210,582  
 
              8 acres                       $ 149,823  
 
                                           
Emory University Hospital
Midtown Medical Office Tower
Atlanta, GA
  2002   Emory University   50%   358,000 (12)   100%   99%   Emory University (2017/2047) (12)     159,653     $ 53,915  
 
                          Resurgens (2014/2019)     26,581     $ 31,663  
 
                          Laureate Medical Group (2013)     17,870          
 
                                           
Ten Peachtree Place
Atlanta, GA
  1991   Coca-Cola (7)   50% (13)   260,000   94%   94%   AGL Services Co. (2013/2028)     226,779     $ 40,508  
 
              5 acres                       $ 17,079  
 
                                           
Terminus 200
Atlanta, GA
  2010   Morgan Stanley Real   20% (14)   566,000   67%   13%   Kids II, Inc. (2023/2033)     102,818     $ 60,082  
 
      Estate Fund       1 acre           Greenberg Traurig (2026/2041)     86,228     $ 58,878  
 
                          Firethorn Holdings (2014/2024)     49,879          
 
                          Sony Ericsson Mobile (2019/2029)     39,289          
 
                                           
Presbyterian Medical Plaza
Charlotte, NC
  1997   Prudential (7)   11.50%   69,000   78%   78%   Novant Health (2012/2017) (15)     49,916     $ 8,012  
 
              1 acre (15)                       $ 4,055  
 
                                           

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Lease Expirations — Office
As of December 31, 2010, the Company’s office portfolio included 22 commercial office buildings. The weighted average remaining lease term of these office buildings was approximately seven years as of December 31, 2010. Most of the major tenant leases in these buildings provide for pass through of operating expenses and contractual rents which escalate over time. Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable. If the lease does not provide for pass through of such operating expense reimbursements, an estimate of operating expenses is deducted from the rental rate shown. The contractual rental rate shown is the estimated rate in the year of expiration. The leases expire as follows:
                                                                                         
                                                                            2020 &        
    2011     2012     2013     2014     2015     2016     2017     2018     2019     Thereafter     Total  
 
Total (including Company’s % share of Joint Venture Properties):                        
Square Feet Expiring
    453,048       177,108       537,534       256,485       405,130       703,723       459,908       271,199       514,932       1,518,406       5,297,473  
% of Leased Space
    9 %     3 %     10 %     5 %     7 %     13 %     9 %     5 %     10 %     29 %     100.00 %
Annual Contractual Rent (000’s)
  $ 5,373     $ 2,577     $ 8,834     $ 4,448     $ 7,099     $ 12,754     $ 10,638     $ 6,902     $ 9,279     $ 31,551     $ 99,455  
Annual Contractual Rent/Sq. Ft.
  $ 11.86     $ 14.55     $ 16.44     $ 17.34     $ 17.52     $ 18.12     $ 23.13     $ 25.45     $ 18.02     $ 20.78     $ 18.77  
 
 
                                                                                       
Wholly Owned:
                                                                                       
Square Feet Expiring
    440,657       134,417       380,864       218,625       381,301       149,211       372,892       208,212       235,344       1,358,798       3,880,321  (16)
% of Leased Space
    11 %     3 %     10 %     6 %     10 %     4 %     10 %     5 %     6 %     35 %     100 %
Annual Contractual Rent (000’s)
  $ 5,186     $ 1,788     $ 5,930     $ 3,579     $ 6,768     $ 2,433     $ 8,454     $ 5,455     $ 5,962     $ 26,671     $ 72,226  
Annual Contractual Rent/Sq. Ft.
  $ 11.77     $ 13.30     $ 15.57     $ 16.37     $ 17.75     $ 16.30     $ 22.67     $ 26.20     $ 25.33     $ 19.63     $ 18.61  
 
                                                                                       
Joint Venture:
                                                                                       
Square Feet Expiring
    26,743       106,398       295,713       101,506       34,534       1,127,710       176,043       124,146       365,109       465,197       2,823,099  (17)
% of Leased Space
    1 %     4 %     10 %     4 %     1 %     40 %     6 %     4 %     13 %     17 %     100 %
Annual Contractual Rent (000’s)
  $ 416     $ 2,071     $ 5,635     $ 2,486     $ 538     $ 21,143     $ 4,422     $ 2,874     $ 4,865     $ 13,764     $ 58,214  
Annual Contractual Rent/Sq. Ft.
  $ 15.55     $ 19.46     $ 19.06     $ 24.49     $ 15.57     $ 18.75     $ 25.12     $ 23.15     $ 13.33     $ 29.59     $ 20.62  

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Table of Contents

     
                                                         
                                Average         Major        
    Year Development       Company’s                 2010         Tenants’     Cost and Cost  
    Completed or       Ownership     Square Feet   Percentage     Economic     Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest     and Acres   Leased     Occupancy (1)     (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Retail Centers (18)
                                                       
 
                                                       
The Avenue Carriage Crossing
Suburban Memphis, TN
  2005   Jim Wilson &   100% (6)     802,000 (19)   88%     90%     Dillard’s (20)     N/A     $ 92,840  
 
      Associates (7)           97 acres (19)                   Macy’s (2021/2051) (21)     130,000     $ 67,856  
 
                                      Bed, Bath & Beyond (2020/2040)     28,307          
 
                                      Barnes & Noble (2016/2026)     25,322          
 
                                                       
The Avenue Webb Gin
Suburban Atlanta, GA
  2006   N/A   100%     322,000   88%     84%     Barnes & Noble (2019/2029)     26,553     $ 75,617  
 
                  48 acres                   Ethan Allen (2021/2031)     18,511     $ 59,540  
 
                                      GAP (2014/2018) (22)     17,461          
 
                                      DSW Shoes (2018/2023)     16,000          
 
                                                       
Tiffany Springs MarketCenter
Kansas City, MO
  2008   Prudential (7)   88.5% (10)     587,000 (23)   82%     79%     JC Penney (20)     N/A     $ 58,570  
 
                  68 acres (23)                   The Home Depot (20)     N/A     $ 54,429  
 
                                      Target (20)     N/A          
 
                                      Best Buy (2019/2039)     45,676          
 
                                      Sports Authority (2019/2039)     41,770          
 
                                      PetSmart (2018/2033)     25,464          
 
                                                       
The Avenue Forsyth
Suburban Atlanta, GA
  2008   Prudential (7)   88.5% (10)     472,000 (24)   81%     70%     AMC Theaters (2023/2039)     50,967     $ 121,278  
 
                  59 acres (24)                   Barnes & Noble (2018/2028)     28,007     $ 107,894  
 
                                      DSW Shoes (2019/2024)     15,053          
 
                                                       
Highland City Town Center (25)
Lakeland, FL
  2010   Watkins Retail Group (7)   50.5% (25)     96,000   87%     87%     Publix (2028/2068)     45,600     $ 17,504  
 
                  24 acres                               $ 17,504  
 
                                                       
Mt. Juliet Village (25)
Nashville, TN
  2010   Watkins Retail Group (7)   50.5% (25)     91,000   77%     77%     Publix (2028/2068)     54,340     $ 12,354  
 
                  15 acres                               $ 12,354  
 
                                                       
Creek Plantation Village (25)
  2010   Watkins Retail Group (7)   50.5% (25)     78,000   91%     91%     Publix (2028/2068)     54,340     $ 9,556  
Chattanooga, TN
                  11 acres                               $ 9,556  
 
                                                       
The Shops of Lee Village (25)
  2010   Watkins Retail Group (7)   50.5% (25)     74,000   83%     83%     Publix (2028/2068)     45,600     $ 9,739  
Nashville, TN
                  12 acres                               $ 9,739  

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                                Average         Major        
    Year Development       Company’s                 2010         Tenants’     Cost and Cost  
    Completed or       Ownership     Square Feet   Percentage     Economic     Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest     and Acres   Leased     Occupancy (1)     (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Retail Centers (cont’d)(18)
                                                       
 
                                                       
The Avenue Murfreesboro
Suburban Nashville, TN
  2007   Faison     50%     751,000     86%     82%   Belk (2027) (21)     132,000     $ 134,462  
 
      Enterprises, Inc. (7)           93 acres                   Dick’s Sporting Goods (2018/2033)     44,770     $ 120,151  
 
                                      Best Buy (2018/2038)     30,000          
 
                                      Haverty’s Furniture (2018/2023)     30,000          
 
                                      Linens and More for Less (2020/2030)     28,170          
 
                                      Barnes & Noble (2018/2028)     26,937          
 
                                                       
The Avenue Viera
Viera, FL
  2005   Prudential (7)     11.50%   460,000 (26)     93%     90%   Rave Motion Pictures (20)     N/A     $ 87,641  
 
                  55 acres (26)                   Belk (2024/2044) (21)     65,927     $ 73,310  
 
                                      Bed, Bath & Beyond (2015/2035)     24,329          
 
                                      Michaels (2016/2036)     20,800          
 
                                                       
The Avenue East Cobb
Suburban Atlanta, GA
  1999   Prudential (7)     11.50%   230,000     98%     93%   Borders (2015/2030) (36)     24,882     $ 99,570  
 
                  30 acres                   Bed, Bath & Beyond (2015/2025)     21,007     $ 82,009  
 
                                      GAP (2015) (22)     19,434          
 
                                      Pottery Barn (2012) (7)     10,000          
 
                                      Talbots (2015)     9,415          
 
                                                       
The Avenue West Cobb
Suburban Atlanta, GA
  2003   Prudential (7)     11.50%   255,000     95%     87%   Barnes & Noble (2014/2024)     24,025     $ 91,000  
 
                  22 acres                   GAP (2012/2022) (22)     17,520     $ 73,482  
 
                                      Charming Charlies (2015/2025)     11,160          
 
                                      IO Metro (2020/2025)     11,160          
 
                                                       
The Avenue Peachtree City
Suburban Atlanta, GA
  2001   Prudential (7)     11.50%   183,000     89%     94%   Books-A-Million (2013)     13,750     $ 58,235  
 
                  18 acres (27)                   GAP (2012/2022)     10,800     $ 45,862  
 
                                      Talbots (2012/2022)     8,610          
 
                                      Banana Republic (2012/2022)     8,015          
 
                                                       
Viera MarketCenter
Viera, FL
  2005   Prudential (7)     11.50%   178,000     96%     95%   Kohl’s Department Stores     88,248     $ 30,807  
 
                  20 acres                   (2026/2056) (21)           $ 26,496  
 
                                      Sports Authority (2017/2032)     37,516          
 
                                      Office Depot (2016/2036)     20,000          

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Table of Contents

     
                                                         
                                Average         Major        
    Year Development       Company’s                 2010         Tenants’     Cost and Cost  
    Completed or       Ownership     Square Feet   Percentage     Economic     Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest     and Acres   Leased     Occupancy (1)     (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Retail Centers (cont’d)(18)
                                                       
 
                                                       
North Point MarketCenter
Suburban Atlanta, GA
  1994   Prudential (7)     10.32%   518,000 (28)     99%     94%   Target (20)     N/A     $ 59,430  
 
                  60 acres (28)                   Babies “R” Us (2017/2032)     50,275     $ 38,420  
 
                                      Dick’s Sporting Goods (2017/2037)     48,884          
 
                                      Marshalls (2015/2025)     40,000          
 
                                      Bed, Bath & Beyond (2026/2041)     40,000          
 
                                      Regal Cinemas (2014/2034)     34,733          
 
                                      Stein Mart (2020/2040)     33,420          
 
                                                       
Greenbrier MarketCenter
Chesapeake, VA
  1996   Prudential (7)     10.32%   493,000 (29)     100%     100%   Target (20)     N/A     $ 50,006  
 
                  44 acres (29)                   Harris Teeter (2016/2036)     51,806     $ 31,530  
 
                                      Best Buy (2015/2030)     45,106          
 
                                      Bed, Bath & Beyond (2012/2027)     40,484          
 
                                      Babies “R” Us (2016/2021)     40,000          
 
                                      Stein Mart (2011/2026)     36,000          
 
                                      Barnes & Noble (2012/2022)     29,974          
 
                                      PetSmart (2016/2031)     26,040          
 
                                                       
Los Altos MarketCenter
Long Beach, CA
  1996   Prudential (7)     10.32%   182,000 (30)     100%     69%   Sears (20)     N/A     $ 36,905  
 
                  17 acres (30)                   LA Fitness (2026/2041)     38,541     $ 25,199  
 
                                      Borders (2017/2037) (36)     30,000          
 
                                      Bristol Farms (2012/2032) (7)     28,200          
 
                                      TJ Maxx (2020/2035)     25,620          

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Table of Contents

     
Lease Expirations — Retail
As of December 31, 2010, the Company’s retail portfolio included 17 retail properties. The weighted average remaining lease term of these retail properties was approximately eight years as of December 31, 2010. Most of the major tenant leases in these retail properties provide for pass through of operating expenses and contractual rents which escalate over time. Certain leases contain termination options, with or without penalty, if co-tenancy clauses or sales volume levels are not achieved. The expiration date per the lease is used for these leases in the table below, although early termination is possible. Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable and any percentage rents due. The contractual rental rate shown is the estimated rate in the year of expiration. The leases expire as follows:
                                                                                         
                                                                            2020 &        
    2011     2012     2013     2014     2015     2016     2017     2018     2019     Thereafter     Total  
 
Total (including Company’s % share of Joint Venture Properties):                                                        
Square Feet Expiring
    89,204       56,908       68,521       94,888       107,460       266,721       131,276       319,192       293,968       504,713       1,932,851  
% of Leased Space
    5 %     2 %     3 %     5 %     6 %     14 %     7 %     17 %     15 %     26 %     100 %
Annual Contractual Rent (000’s)
  $ 1,429     $ 1,086     $ 1,670     $ 1,900     $ 2,491     $ 6,089     $ 3,311     $ 7,240     $ 6,196     $ 5,788     $ 37,200  
Annual Contractual Rent/Sq. Ft.
  $ 16.02     $ 19.09     $ 24.37     $ 20.02     $ 23.18     $ 22.83     $ 25.22     $ 22.68     $ 21.08     $ 11.47     $ 19.25  
 
 
                                                                                       
Wholly Owned:
                                                                                       
Square Feet Expiring
    43,526       28,776       14,546       41,036       40,029       181,980       71,602       48,183       60,816       202,051       732,545 (31)
% of Leased Space
    6 %     4 %     2 %     5 %     5 %     25 %     10 %     7 %     8 %     28 %     100 %
Annual Contractual Rent (000’s)
  $ 786     $ 503     $ 373     $ 742     $ 1,138     $ 4,640     $ 2,068     $ 1,213     $ 824     $ 1,307     $ 13,594  
Annual Contractual Rent/Sq. Ft.
  $ 18.05     $ 17.48     $ 25.67     $ 18.09     $ 28.42     $ 25.50     $ 28.88     $ 25.17     $ 13.55     $ 6.47     $ 18.56  
 
                                                                                       
Joint Venture:
                                                                                       
Square Feet Expiring
    233,472       232,278       197,034       228,014       375,664       372,872       302,033       473,851       318,264       811,907       3,545,389 (32)
% of Leased Space
    7 %     6 %     5 %     6 %     11 %     11 %     9 %     13 %     9 %     23 %     100 %
Annual Contractual Rent (000’s)
  $ 3,506     $ 4,753     $ 4,927     $ 4,822     $ 7,444     $ 6,489     $ 6,096     $ 10,265     $ 7,609     $ 10,548     $ 66,459  
Annual Contractual Rent/Sq. Ft.
  $ 15.02     $ 20.46     $ 25.01     $ 21.15     $ 19.81     $ 17.40     $ 20.18     $ 21.66     $ 23.91     $ 12.99     $ 18.75  

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                        Average       Major        
    Year Development       Company’s           2010       Tenants’     Cost and Cost  
    Completed or       Ownership   Square Feet   Percentage   Economic   Major Tenants   Rentable     Less Accumulated  
Description and Location   Acquired   Venture Partner(s)   Interest   and Acres   Leased   Occupancy (1)   (Lease Expiration/Options Expiration)   Square Feet     Depreciation (2)  
 
Industrial
Lakeside Ranch Business Park Building 20
Dallas, TX
  2007   Seefried Industrial   100%(6)   749,000   91%   66%   HD Supply Facilities     457,681     $ 30,288
 
      Properties       38 acres           Maintenance (2017/2023)           $ 26,150
 
                          Owens & Minor Distribution (2015)     223,190          
 
                                           
King Mill Distribution Park Building 3
Suburban Atlanta, GA
  2007   Weeks Properties
Group
  75%(10)   796,000   100%   87%   Briggs & Stratton Corporation     796,450     $ 26,183
 
            41 acres           (2015/2020) (7) (33)           $ 22,324  
 
                                           
Jefferson Mill Business Park
Building A (34)
Suburban Atlanta, GA
  2008   Weeks Properties Group   75%(10)   459,000   100%   42%   Systemax Distribution (2030/2050)     459,134     $ 22,425
 
            38 acres                       $ 21,121  
Lease Expirations — Industrial
As of December 31, 2010, the Company’s industrial portfolio included three buildings. The weighted average remaining lease term of these properties was approximately nine years as of December 31, 2010. The leases provide for pass through of operating expenses and contractual rents which escalate over time. Annual Contractual Rent excludes the operating expense reimbursement portion of the rent payable. The contractual rental rate shown is the estimated rate in the year of expiration. The leases expire as follows:
                                                                                         
                                                                            2020 &        
    2011     2012     2013     2014     2015     2016     2017     2018     2019     Thereafter     Total  
 
Company’s % share of Joint Venture Properties:                                                        
Square Feet Expiring
    89,288                         731,240             457,681                   344,351       1,622,560  
% of Leased Space
    6 %     0 %     0 %     0 %     45 %     0 %     28 %     0 %     0 %     21 %     100 %
Annual Contractual Rent (000’s)
  $ 223     $     $     $     $ 2,186     $     $ 1,602     $     $     $ 1,616     $ 5,627  
Annual Contractual Rent/Sq. Ft.
  $ 2.50     $     $     $     $ 2.99     $     $ 3.50     $     $     $ 4.69     $ 3.47  
 
 
                                                                                       
Joint Venture:
                                                                                       
Square Feet Expiring
    119,050                         900,590             457,681                   459,134       1,936,455 (35)
% of Leased Space
    6 %     0 %     0 %     0 %     46 %     0 %     24 %     0 %     0 %     24 %     100 %
Annual Contractual Rent (000’s)
  $ 298     $     $     $     $ 2,676     $     $ 1,602     $     $     $ 2,154     $ 6,730  
Annual Contractual Rent/Sq. Ft.
  $ 2.50     $     $     $     $ 2.97     $     $ 3.50     $     $     $ 4.69     $ 3.48  

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FOOTNOTES
 
(1)   Average economic occupancy is calculated as the percentage of the property for which revenue was recognized during the year. If the property was purchased during the year, average economic occupancy is calculated from the date of purchase forward. If the project was under construction or has an expansion that was under construction during the year, average economic occupancy for the property or the expansion portion reflects the fact that the property had no occupancy for a portion of the year.
 
(2)   Cost as shown in the accompanying table includes deferred leasing costs, other related tangible assets and net intangible real estate assets.
 
(3)   Square footage and cost information includes 9,300 square feet for 201 Peachtree, which is connected to 191 Peachtree, and acreage information includes 0.8 acres under a ground lease which expires in 2087.
 
(4)   The real estate and other assets of this property are restricted under a loan agreement such that the assets are not available to settle other debts of the Company.
 
(5)   At The American Cancer Society Center, approximately 0.18 acres of land are under a ground lease expiring in 2068, and 33,509 square feet of the US South lease expires in 2011.
 
(6)   These projects are owned through a joint venture with a third party who may get a share of the results of operations or sale of the property, even though the projects are shown as 100% owned.
 
(7)   Actual tenant or venture partner is an affiliate of the entity shown.
 
(8)   At Meridian Mark Plaza, 43,051 square feet of the Northside Hospital lease expires in 2013, with an option to extend to 2023, and 7,521 square feet of the Children’s Healthcare lease expires in 2019.
 
(9)   At 333 North Point Center East, 3,715 square feet of this lease expires in 2011.
 
(10)   The allocation of the results of operations and the legal ownership percentage could be different depending on the attainment of certain thresholds.
 
(11)   The Company receives a preferred return of 11.46% on its investment in the entity that owns Gateway Village, and the Company’s return on its capital is anticipated to be limited to 17%.
 
(12)   Emory University Hospital Midtown Medical Office Tower was developed on top of a building within the Emory University Hospital Midtown campus. The venture received a fee simple interest in the air rights above this building in order to develop the medical office tower. In addition, 5,148 square feet of the Emory University lease expires in 2011.
 
(13)   After August 2011, the Company’s return from the entity that owns Ten Peachtree Place is 15% on the first $15.3 million of cash flows and 50% to each partner thereafter.
 
(14)   The Company’s ownership interest in Terminus 200 building changed during 2010 from 50% to 20%. In addition, the allocation of the results of operations and the legal ownership could be different depending on the attainment of certain thresholds.
 
(15)   Presbyterian Medical Plaza is located on 1 acre, which is subject to a ground lease expiring in 2057, and 9,143 square feet of the Novant lease expires in 2019.
 
(16)   Rentable square feet leased as of December 31, 2010 out of approximately 4,340,000 total rentable square feet.
 
(17)   Rentable square feet leased as of December 31, 2010 out of approximately 3,067,000 total rentable square feet.
 
(18)   Most of these retail centers also include outparcels which are ground leased to freestanding users.
 
(19)   Ownership of the square footage and acreage of The Avenue Carriage Crossing is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    291,000       19  
Owned by Carriage Avenue, LLC
    511,000       78  
 
           
Total
    802,000       97  
 
           
 
(20)   This anchor tenant owns its own store and land.
 
(21)   This tenant built and owns its own store and pays the Company under a ground lease.
 
(22)   At the Avenue Webb Gin, The Gap can relinquish 7,099 square feet of this lease if the Company receives notice between certain prescribed dates in 2013 and 2014. At the Avenue East Cobb, The Gap can relinquish 7,915 square feet if the Company receives notice between certain prescribed 2011 dates. At the Avenue West Cobb, The Gap can relinquish 7,021 square feet if the Company receives notice between certain prescribed dates in 2011 and 2012.
 
(23)   Ownership of the square footage and acreage of Tiffany Springs MarketCenter is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    349,000       31  
Owned by CP Venture Six LLC
    238,000       25  
Owned by the Company
          12  
 
           
Total
    587,000       68  
 
           
 
(24)   Ownership of the square footage and acreage of The Avenue Forsyth is detailed below:
                 
    Square Feet     Acres  
Owned by CP Venture Six LLC
    472,000       53  
Owned by the Company
          6  
 
           
Total
    472,000       59  
 
           

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FOOTNOTES (cont’d)
(25)   These retail properties were acquired in a joint venture that was formed on December 31, 2010; therefore, no revenues, depreciation or amortization were recognized in 2010. See Note 4 for additional information. The allocation of the results of operations and the legal ownership percentage could be different depending on the attainment of certain thresholds.
 
(26)   Ownership of the square footage and acreage of The Avenue Viera is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    128,000       10  
Owned by CP Venture Five LLC
    332,000       45  
 
           
Total
    460,000       55  
 
           
 
(27)   Approximately 1.5 acres of the total acreage at The Avenue Peachtree City is under a ground lease expiring in 2024.
 
(28)   Ownership of the square footage and acreage of North Point MarketCenter is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    117,000       11  
Owned by CP Venture LLC
    401,000       49  
 
           
Total
    518,000       60  
 
           
 
(29)   Ownership of the square footage and acreage of Greenbrier MarketCenter is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    117,000       8  
Owned by CP Venture LLC
    376,000       36  
 
           
Total
    493,000       44  
 
           
 
(30)   Ownership of the square footage and acreage of Los Altos MarketCenter is detailed below:
                 
    Square Feet     Acres  
Owned by anchor tenant
    25,000        
Owned by CP Venture LLC
    157,000       17  
 
           
Total
    182,000       17  
 
           
 
(31)   Gross leasable area leased as of December 31, 2010 out of approximately 833,000 total gross leasable area.
 
(32)   Gross leasable area leased as of December 31, 2010 out of approximately 3,912,000 total gross leasable area.
 
(33)   Of the total square footage leased, 119,050 square feet is leased on a month-to-month basis.
 
(34)   This building sold in February 2011.
 
(35)   Rentable square feet leased as of December 31, 2010 out of approximately 2,004,000 total rentable square feet.
 
(36)   Subsequent to December 31, 2010, Borders announced they may close certain stores.

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Residential Lots
     As of December 31, 2010, CREC, Temco Associates (“Temco”) and CL Realty, L.L.C. (“CL Realty”) owned the following projects which are being developed, or planned to be developed, into residential communities (see Note 4 of Notes to Consolidated Financial Statements). Information in the table represents total amounts for the development as a whole, not the Company’s share. Cost basis reflects the Company’s basis for consolidated properties and the venture’s basis for joint venture properties. In some cases, the Company’s share of a venture’s basis may be different than the Company’s investment due to capitalization of costs and impairments at the Company’s investment level.
                                                         
        Estimated   Estimated     Developed     Lots Sold     Total     Remaining     Cost  
    Year   Project Life   Total Lots to     Lots in     in Current     Lots     Lots to be     Basis  
Description   Commenced   (In Years)   be Developed (1)     Inventory     Year     Sold     Sold     ($000)  
CREC (Consolidated)
                                                       
 
                                                       
The Lakes at Cedar Grove
  2001   20     906       48       25       727       179     $ 4,651  
     Fulton County
     Suburban Atlanta, GA
                                                       
 
                                                       
Callaway Gardens (50% owned) (2) (3)
  2006   10     559       101       10       30       529       15,600  
     Harris County
     Pine Mountain, GA
                                                       
 
                                                       
Blalock Lakes (3)
  2006   14     154       86       1       19       135       39,647  
     Coweta County
     Suburban Atlanta, GA
                                                       
 
                                                       
Longleaf at Callaway (3)
  2002   10     138       13             125       13       384  
     Harris County
     Pine Mountain, GA
                                                       
 
                                                       
River’s Call
  1999   13     107       12       1       95       12       468  
     East Cobb County
     Suburban Atlanta, GA
                                                       
 
                                                       
Tillman Hall
  2008   5     29       23       2       6       23       2,653  
     Gwinnett County
     Suburban Atlanta, GA
                                                       
 
                                                       
 
                                           
Total Consolidated
            1,893       283       39       1,002       891       63,403  
 
                                           
 
Temco (50% owned) Bentwater
  1998   13     1,676       5             1,671       5       16  
     Paulding County
     Suburban Atlanta, GA
                                                       
 
                                                       
The Georgian (75% owned)
  2003   24     1,385       259             288       1,097       23,673  
     Paulding County
     Suburban Atlanta, GA
                                                       
 
                                                       
Seven Hills
  2003   17     1,081       331       2       636       445       16,699  
     Paulding County
     Suburban Atlanta, GA
                                                       
 
                                                       
Harris Place
  2004   10     27       9             18       9       652  
     Paulding County
     Suburban Atlanta, GA
                                                       
 
                                                       
 
                                           
Total Temco
            4,169       604       2       2,613       1,556       41,040  
 
                                           
 
CL Realty (50% owned) Long Meadow Farms (37.5% owned)
  2003   16     2,083       65       86       693       1,390       12,800  
     Fort Bend County
     Houston, TX
                                                       
 
                                                       
Summer Creek Ranch
  2003   21     1,274       187             796       478       5,067  
     Tarrant County
     Fort Worth, TX
                                                       
 
                                                       
Bar C Ranch
  2004   20     1,199       82       40       232       967       7,113  
     Tarrant County
     Fort Worth, TX
                                                       
 
                                                       
Summer Lakes
  2003   16     1,123       157       20       345       778       7,121  
     Fort Bend County
     Rosenberg, TX
                                                       
 
                                                       
Southern Trails (80% owned)
  2005   11     1,027       59       80       452       575       18,558  
     Brazoria County
     Pearland, TX
                                                       
 
                                                       
Village Park
  2003   12     567             17       356       211       6,407  
     Collin County
     McKinney, TX
                                                       
 
                                                       
Manatee River Plantation
  2003   10     457       109             348       109       2,604  
     Manatee County
     Tampa, FL
                                                       
 
                                                       
Stonewall Estates (50% owned)
  2005   9     382       15       41       261       121       4,918  
     Bexar County
     San Antonio, TX
                                                       
 
                                                       
Stillwater Canyon
  2003   11     335       6             225       110       2,325  
     Dallas County
     DeSoto, TX
                                                       
 
                                                       
Creekside Oaks
  2003   11     301       130       46       171       130       2,855  
     Manatee County
     Bradenton, FL
                                                       

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Residential Lots (continued)
                                                         
        Estimated   Estimated     Developed     Lots Sold     Total     Remaining     Cost  
    Year   Project Life   Total Lots to     Lots in     in Current     Lots     Lots to be     Basis  
Description   Commenced   (In Years)   be Developed (1)     Inventory     Year     Sold     Sold     ($000)  
CL Realty (50% owned)
                                                       
 
                                                       
Waterford Park
  2005   12     210                         210     $ 8,524  
     Fort Bend County
     Rosenberg, TX
                                                       
 
                                                       
Village Park North
  2005   10     189       8             71       118       2,387  
     Collin County
     McKinney, TX
                                                       
 
                                                       
Bridle Path Estates
  2004   10     87                         87       3,016  
     Hillsborough County
     Tampa, FL
                                                       
 
                                                       
West Park
  2005   13     84                   21       63       5,332  
     Cobb County
     Suburban Atlanta, GA
                                                       
 
                                                       
 
                                           
Total CL Realty
            9,318       818       330       3,971       5,347       89,027  
 
                                           
Total
            15,380       1,705       371       7,586       7,794     $ 193,470  
 
                                           
 
                                                       
Company’s Share of Total
            7,335       881       155       3,916       3,419     $ 110,592  
 
                                           
 
                                                       
Company’s Weighted Average Ownership
            48 %     52 %     42 %     52 %     44 %     57 %
 
                                           
 
(1)   This estimate represents the total projected development capacity for a development on owned land. The numbers shown include lots currently developed or to be developed over time, based on management’s current estimates, and lots sold to date from inception of development.
 
(2)   Callaway Gardens is owned in a joint venture which is consolidated with the Company. The partner is entitled to a share of the profits after the Company’s capital is recovered.
 
(3)   All lots at Longleaf at Callaway and certain lots at Callaway Gardens and Blalock Lakes are sold to a homebuilding venture, of which the Company is a joint venture partner. As a result of this relationship, the Company defers some or all profits until houses are built and sold, rather than at the time lots are sold, as is the case with the Company’s other residential developments.
Land Held
     As of December 31, 2010, the Company owned or controlled the following land holdings either directly or indirectly through venture arrangements. The Company evaluates its land holdings on a regular basis and may develop, ground lease or sell portions of the land holdings if opportunities arise. Information in the table represents total amounts for the developable land area as a whole, not the Company’s share. Cost basis reflects the Company’s basis for consolidated properties and the venture’s basis for joint venture properties. In some cases, the Company’s share of a venture’s basis may be different than the Company’s investment due to capitalization of costs and impairments at the Company’s investment level. See Note 4 of Notes to Consolidated Financial Statements for further information related to investments in unconsolidated joint ventures.
                             
        Company’s   Developable         Cost  
        Ownership   Land Area     Year   Basis  
Description and Location   Zoned Use   Interest   (Acres)     Acquired   ($000)  
COMMERCIAL INVESTMENTS
                           
 
                           
Round Rock Land
Austin, TX
  Retail and Commercial   100%     60     2005   $ 17,115 (1)
 
                           
Terminus
Atlanta, GA
  Mixed Use   100%     4     2005     12,651 (1)
 
                           
615 Peachtree Street
Atlanta, GA
  Mixed Use   100%     2     1996     12,492 (1)
 
                           
Wildwood Office Park
Suburban Atlanta, GA
  Office and Commercial   50%     36     1971-1989     21,186  
 
                           
Land Adjacent to The Avenue Forsyth
Suburban Atlanta, GA
  Retail   94%(2)     15     2007     10,442 (1)
 
                           
King Mill Distribution Park
Suburban Atlanta, GA
  Industrial   100%     86     2005     10,089 (1)
 
                           
Lakeside Ranch Business Park
Dallas, TX
  Industrial and Commercial   100%(3)     51     2006     9,821 (1)
 
                           
Jefferson Mill Business Park
Suburban Atlanta, GA
  Industrial and Commercial   100%     117     2006     9,196 (1)
 
                           
549 / 555 / 557 Peachtree Street
Atlanta, GA
  Mixed Use   100%     1     2004/2009     8,794 (1)
 
                           
North Point
Suburban Atlanta, GA
  Mixed Use   100%     42     1970-1985     6,519 (1)
 
                           
Research Park V
Austin, TX
  Commercial   100%     6     1998     4,963 (1)
 
                           

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Land Held (continued)
                                         
            Company’s     Developable             Cost  
            Ownership     Land Area     Year     Basis  
Description and Location   Zoned Use     Interest     (Acres)     Acquired     ($000)  
Lancaster
                                       
Dallas, TX
  Industrial     100 %(3)     47       2007     $ 4,844 (1)
Land Adjacent to The Avenue Murfreesboro
                                       
Suburban Nashville, TN
  Retail     50 %     6       2006       4,099  
Land Adjacent to The Avenue Carriage Crossing
                                       
Suburban Memphis, TN
  Retail     100 %(3)     2       2004       1,969 (1)
Wildwood Office Park
                                       
Suburban Atlanta, GA
  Mixed Use     100 %     23       1971-1989       1,014 (1)
Land Adjacent to The Avenue Webb Gin
                                       
Suburban Atlanta, GA
  Retail     100 %     2       2005       946 (1)
Land Adjacent to Highland City Town Center
                                       
Lakeland, FL
  Mixed Use     51 %(3)     56       2010       5,458  
Land Adjacent to The Shops of Lee Village
                                       
Suburban Nashville, TN
  Retail     51 %(3)     6       2010       1,944  
 
                                   
 
                                       
TOTAL COMMERCIAL INVESTMENTS
                    562               143,542  
 
                                   
 
                                       
RESIDENTIAL INVESTMENTS
                                       
Blalock Lakes
                                       
Suburban Atlanta, GA
  Residential     100 %     1,205       2008       9,650 (1)
Paulding County
                                       
Suburban Atlanta, GA
  Residential and Mixed Use     50 %     5,731       2005       14,846  
Padre Island
                                       
Corpus Christi, TX
  Residential and Mixed Use     50 %     15       2005       7,545  
Handy Road Associates, LLC
                                       
Suburban Atlanta, GA
  Large Lot Residential     50% (3)     1,187       2004       3,374 (1)
Summer Creek Ranch
                                       
Forth Worth, TX
  Residential and Mixed Use     50 %     71       2002       (4)
Long Meadow Farms
                                       
Houston, TX
  Residential and Mixed Use     19 %     105       2002       (4)
Seven Hills
                                       
Suburban Atlanta, GA
  Residential and Mixed Use     50 %     112       2002-2005       (4)
Waterford Park
                                       
Rosenberg, TX
  Commercial     50 %     90       2005       (4)
Village Park
                                       
McKinney, TX
  Residential     50 %     2       2003-2005       (4)
 
                                   
TOTAL RESIDENTIAL INVESTMENTS
                    8,518               35,415  
 
                                   
 
                                       
TOTAL LAND HELD
                    9,080             $ 178,957  
 
                                   
 
(1)   The cost basis of these consolidated properties aggregates to $123,879,000, as reflected on the Consolidated Balance Sheet.
 
(2)   Ownership percentage reflects blended ownership.   A portion of the developable land area is owned 100% by the Company and a portion is owned 88.5% by a consolidated joint venture.
 
(3)   This project is owned through a joint venture with a third party who has contributed equity, but the equity ownership and the allocation of the results of operations and/or gain on sale most likely will be disproportionate.
 
(4)   These residential communities have adjacent land that may be sold to third parties in large tracts for residential, multi-family or commercial development. The cost basis of these tracts and the lot inventory are included on the Residential Lots schedule above.

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For-Sale Multi-Family Residential Units
          The following provides information regarding the Company’s investments in For-Sale Multi-Family Residential projects at December 31, 2010.
                                         
    Total                          
    Units     Units Sold     Total     Remaining     Cost  
    Developed /     in Current     Units     Units to be     Basis  
    Purchased     Year     Sold     Sold     ($000)  
10 Terminus Place (1)
                                       
Atlanta, GA
    137       75       130       7     $ 2,561  
60 North Market (2)
                                       
Asheville, NC
    28       5       28             433  
 
                             
TOTAL CONSOLIDATED
                                       
FOR-SALE MULTI-FAMILY UNITS
    165       80       158       7     $ 2,994  
 
                             
 
(1)   The total units sold does not include two units that closed but do not qualify as sales under applicable accounting standards.
 
(2)   The project includes 9,224 square feet of for-sale commercial retail space. The commercial retail units are not included in the unit totals above but are included in the cost basis. None of the commercial retail units have been sold as of December 31, 2010.
Other Investments
          Air Rights Near the CNN Center. The Company owns a leasehold interest in the air rights over the approximately 365,000 square foot CNN Center parking facility in Atlanta, Georgia, adjoining the headquarters of Turner Broadcasting System, Inc. and Cable News Network. The air rights are developable for additional parking or for certain other uses. The Company’s net carrying value of this interest is $0.
Item 3. Legal Proceedings
          The Company is subject to various legal proceedings, claims and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance and all of which collectively are not expected to have a material adverse effect on the liquidity, results of operations, business or financial condition of the Company.
Item 4. Reserved
Item X. Executive Officers of the Registrant
          The Executive Officers of the Registrant as of the date hereof are as follows:
             
Name   Age   Office Held
Lawrence L. Gellerstedt, III
    54     President and Chief Executive Officer
R. Dary Stone
    57     Vice Chairman of the Company
Gregg D. Adzema
    46     Executive Vice President and Chief Financial Officer
Michael I. Cohn
    51     Executive Vice President — Retail Investments, Leasing and Asset Management
Craig B. Jones
    59     Executive Vice President and Chief Investment Officer
John S. McColl
    48     Executive Vice President — Development, Office Leasing and Asset Management
J. Thad Ellis
    50     Senior Vice President — Client Services
John D. Harris, Jr.
    51     Senior Vice President, Chief Accounting Officer and Assistant Secretary
Robert M. Jackson
    43     Senior Vice President, General Counsel and Corporate Secretary

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Family Relationships
          There are no family relationships among the Executive Officers or Directors.
Term of Office
          The term of office for all officers expires at the annual stockholders’ meeting. The Board retains the power to remove any officer at any time.
Business Experience
          Mr. Gellerstedt became President and Chief Executive Officer of the Company in July 2009. In addition, he was appointed as a Director of the Company in July 2009. In February 2009, Mr. Gellerstedt assumed the role of President and Chief Operating Officer. Mr. Gellerstedt joined the Company in July 2005 as Senior Vice President and President of the Office/Multi-Family Division. The Company changed its organizational structure in May 2008, and he became Executive Vice President and Chief Development Officer.
          Mr. Stone joined the Company in June 1999. Mr. Stone was President and Chief Operating Officer of the Company from February 2001 to January 2002 and was a Director of the Company from 2001 to 2003. Effective January 2002, he relinquished the positions of President and Chief Operating Officer and assumed the position of President — Texas. In February 2003, he became Vice Chairman of the Company. On February 15, 2011, Mr. Stone was nominated by the Board of Directors to be a Director of the Company effective March 2, 2011, and is therefore relinquishing his role as Vice Chairman of the Company.
          Mr. Adzema joined the Company in November 2010 as Executive Vice President and Chief Financial Officer. From October 2009 until November 2010, he served as the Chief Investment Officer of Hayden Harper Inc., an investment advisory and hedge fund group. From August 2005 to September 2008, he was Executive Vice President — Investments with Grubb Properties, Inc., a real estate development, construction and management company. From September 1996 to February 2005, Mr. Adzema served in various positions, most recently as Executive Vice President and Chief Financial Officer, at Summit Properties, Inc., which was acquired by Camden Property Trust in February 2005.
          Mr. Cohn joined the Company in August 2010 as Executive Vice President — Retail Investments, Leasing and Asset management. From October 2002 to July 2010, he was Senior Managing Director for Faison Southeast.
          Mr. Jones joined the Company in November 1992 and became Senior Vice President in November 1995 and President of the Office Division in September 1998. He became Executive Vice President and Chief Administrative Officer in August 2004 and served in that capacity until December 2006, when he assumed the role of Executive Vice President and Chief Investment Officer.
          Mr. McColl joined the Company in April 1996 as Vice President. He joined the Cousins/Richmond Division in February 1997 and was promoted in May 1997 to Senior Vice President of the Company. The Cousins/Richmond Division merged with the Office Division in 2000. He was promoted to Executive Vice President — Development, Office Leasing and Asset Management in February 2010.
          Mr. Ellis joined the Company in August 2006 as Senior Vice President — Client Services. Prior to 2006, for at least five years, Mr. Ellis was Managing Director of CarrAmerica Corporation’s Atlanta office.
          Mr. Harris joined the Company in February 2005 as Senior Vice President and Chief Accounting Officer and was subsequently appointed Assistant Secretary. From 1994 to 2003, Mr. Harris was employed by JDN Realty Corporation, most recently serving as Senior Vice President, Chief Financial Officer, Secretary, and Treasurer. Beginning in 2004 until February 2005, Mr. Harris was the Vice President and Corporate Controller for Wells Real Estate Funds, Inc.
          Mr. Jackson joined the Company in December 2004 as Senior Vice President, General Counsel and Corporate Secretary. From February 1996 to December 2004, he was an associate and then a partner with Troutman Sanders LLP, an Atlanta-based, international law firm.

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PART II
Item 5. Market for Registrant’s Common Stock and Related Stockholder Matters
Market Information
          The high and low sales prices for the Company’s common stock and dividends declared per common share (the 2010 and the June, September and December 2009 dividends were paid in a combination of stock and cash) were as follows:
                                                                 
    2010 Quarters     2009 Quarters  
    First     Second     Third     Fourth     First     Second     Third     Fourth  
High
  $ 8.68     $ 8.67     $ 7.36     $ 8.44     $ 14.10     $ 10.79     $ 10.95     $ 8.58  
Low
  $ 6.70     $ 6.66     $ 6.00     $ 6.86     $ 5.85     $ 6.11     $ 7.30     $ 6.83  
Dividends Declared
  $ 0.09     $ 0.09     $ 0.09     $ 0.09     $ 0.25     $ 0.25     $ 0.15     $ 0.09  
Payment Date
    3/15/10       6/18/10       9/17/10       12/17/10       2/23/09       6/5/09       9/16/09       12/11/09  
Holders
          The Company’s common stock trades on the New York Stock Exchange (ticker symbol CUZ). On February 24, 2011, there were 1,003 common stockholders of record.
Purchases of Equity Securities
          For information on the Company’s equity compensation plans, see Note 6 of the accompanying consolidated financial statements, which is incorporated herein by reference.
          The Company purchased the following common shares outside of its publicly-announced repurchase plan:
                 
    Total Number        
    of Shares     Average Price  
    Purchased (1)     Paid per Share (1)  
October 1 — 31
        $  
November 1 — 30
           
December 1 — 31
    7,691       8.16  
 
           
 
    7,691     $ 8.16  
 
           
 
(1)   The purchases of equity securities that occur outside the plan relate to shares remitted by employees as payment for option exercises or income taxes due. Activity for the fourth quarter 2010 related to the remittances of shares for income taxes due for restricted stock vesting.
          On May 6, 2006, the Board of Directors of the Company authorized a common stock repurchase plan of up to 5,000,000 shares, which is in effect through May 9, 2011. The Company repurchased 878,500 shares under this plan, leaving 4,121,500 available to be purchased under this plan. In total, the Company has repurchased 3,570,082 shares of common stock at an average price of $24.32. There were no repurchases of common stock during the fourth quarter of 2010.
     On November 10, 2008, the common stock repurchase plan was expanded to include authorization to repurchase up to $20 million of Preferred Shares. This program was expanded on November 18, 2008 to include all 4,000,000 shares of both of the Company’s Preferred A and Preferred B (totaling 8,000,000 shares). The Company has repurchased 1,215,090 preferred shares under this plan at an average price of $12.99, and no purchases occurred during the fourth quarter of 2010.
Performance Graph
          The following graph compares the five-year cumulative total return of the Company’s Common Stock with the S&P 500 Index, NYSE Composite Index and FTSE NAREIT Equity Index. The graph assumes a $100 investment in each of the indices on January 1, 2006 and the reinvestment of all dividends.

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(PERFORMANCE GRAPH)
                                                 
    Period Ending  
Company/Market/Peer Group   12/31/2005     12/31/2006     12/31/2007     12/31/2008     12/31/2009     12/31/2010  
Cousins Common Stock
  $ 100.00     $ 142.96     $ 94.17     $ 63.13     $ 40.17     $ 45.49  
S&P500 Index
  $ 100.00     $ 115.79     $ 122.16     $ 76.96     $ 97.33     $ 111.99  
NYSE Composite Index
  $ 100.00     $ 120.47     $ 131.15     $ 79.67     $ 102.20     $ 115.88  
FTSE NAREIT Equity Index
  $ 100.00     $ 135.06     $ 113.87     $ 70.91     $ 90.76     $ 116.12  

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Item 6. Selected Financial Data
     The following selected financial data sets forth consolidated financial and operating information on a historical basis. This data has been derived from the Company’s consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto. In all four quarters of 2010 and in the last three quarters of 2009, the common stock dividends were paid in a combination of cash and stock. The following table reflects the total dividend, both cash and stock, paid.
                                         
    For the Years Ended December 31,  
    2010     2009     2008     2007     2006  
            ($ in thousands, except per share amounts)          
Rental property revenues
  $ 143,472     $ 139,504     $ 136,892     $ 103,443     $ 79,331  
Fee income
    33,420       33,806       47,662       36,314       35,465  
Residential lot, multi-family and outparcel sales
    50,385       38,262       15,437       9,969       40,418  
Interest and other
    1,229       2,972       4,149       6,567       1,619  
 
                             
Total revenues
    228,506       214,544       204,140       156,293       156,833  
 
                             
 
                                       
Rental property operating expenses
    58,973       63,382       54,501       44,665       33,362  
Depreciation and amortization
    59,111       53,350       50,271       37,387       29,122  
Residential lot, multi-family and outparcel cost of sales
    37,716       30,652       11,106       7,685       32,154  
Interest expense
    37,180       39,888       28,257       8,565       11,119  
Impairment loss
    2,554       40,512       2,100              
General, administrative and other expenses
    57,668       65,854       64,502       60,632       61,401  
 
                             
Total expenses
    253,202       293,638       210,737       158,934       167,158  
 
                             
 
                                       
Loss on extinguishment of debt and interest rate swaps, net
    (9,827 )     (2,766 )           (446 )     (18,207 )
Benefit (provision) for income taxes from operations
    1,079       (4,341 )     8,770       4,423       (4,193 )
Income (loss) from unconsolidated joint ventures, including impairment losses
    9,493       (68,697 )     9,721       6,096       173,083  
Gain on sale of investment properties, net of applicable income tax provision
    1,938       168,637       10,799       5,535       3,012  
 
                             
 
                                       
Income (loss) from continuing operations
    (22,013 )     13,739       22,693       12,967       143,370  
 
                                       
Discontinued operations
    9,980       15,808       2,232       21,611       93,451  
 
                             
Net income (loss)
    (12,033 )     29,547       24,925       34,578       236,821  
Net income attributable to noncontrolling interests
    (2,540 )     (2,252 )     (2,378 )     (1,656 )     (4,130 )
 
                                       
Preferred dividends
    (12,907 )     (12,907 )     (14,957 )     (15,250 )     (15,250 )
 
                             
 
                                       
Net income (loss) available to common stockholders
  $ (27,480 )   $ 14,388     $ 7,590     $ 17,672     $ 217,441  
 
                             
 
                                       
Net income (loss) from continuing operations attributable to controlling interest per common share — basic
  $ (0.37 )   $ (0.02 )   $ 0.10     $ (0.08 )   $ 2.44  
 
                             
 
                                       
Net income (loss) per common share — basic
  $ (0.27 )   $ 0.22     $ 0.15     $ 0.34     $ 4.27  
 
                             
Net income (loss) from continuing operations attributable to controlling interest per common share — diluted
  $ (0.37 )   $ (0.02 )   $ 0.10     $ (0.07 )   $ 2.35  
 
                             
Net income (loss) per common share — diluted
  $ (0.27 )   $ 0.22     $ 0.15     $ 0.33     $ 4.13  
 
                             
Dividends declared per common share
  $ 0.36     $ 0.74     $ 1.36     $ 1.48     $ 4.88  
 
                             
 
                                       
Total assets (at year-end)
  $ 1,371,282     $ 1,491,552     $ 1,693,795     $ 1,509,611     $ 1,196,753  
Notes payable (at year-end)
  $ 509,509     $ 590,208     $ 942,239     $ 676,189     $ 315,149  
Stockholders’ investment (at year-end)
  $ 760,079     $ 787,411     $ 466,723     $ 554,821     $ 625,915  
Common shares outstanding (at year-end)
    103,392       99,782       51,352       51,280       51,748  

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
     The following discussion and analysis should be read in conjunction with the Selected Financial Data and the Consolidated Financial Statements and Notes.
Overview of 2010 Performance and Company and Industry Trends.
     As the Company entered 2010, the economic environment continued to be uncertain, but showed signs of stabilizing. With this in mind, management established priorities for the Company in 2010 to address the uncertainties and the opportunities presented by the economy. These priorities included (1) continuing to strengthen the balance sheet, (2) focusing on core operations that drive revenues and profitability, (3) monetizing non-core assets prudently, (4) beginning to invest capital opportunistically but with discipline, and (5) operating the Company more simply and efficiently. The Company made progress in each of these focus areas in 2010, and as a result, management believes that the Company is better positioned for the challenges of 2011 and beyond.
     With respect to the balance sheet, management was able to reduce overall leverage primarily through the sale of non-core assets. The Company began the year with consolidated debt of $590 million which represented 40% of total market capitalization. At year end, consolidated debt decreased to $510 million and the debt to total market capitalization ratio decreased to 33%. The active, but opportunistic, sale of assets was the primary reason for the improvement in leverage.
     For the year, the Company sold $172.8 million in assets. The largest single asset sale was San Jose MarketCenter, which generated $85.0 million in gross proceeds. In addition, the Company generated $39.5 million from the sale of land tracts and ground leased outparcels, $34.8 million from the sale of for-sale multi-family units and $10.3 million from the sale of residential lots. The Company also sold 8995 Westside Parkway for $3.2 million.
     The Company also reduced its exposure to near-term maturities during 2010 by refinancing two consolidated mortgage loans, extending an unconsolidated construction loan and refinancing another unconsolidated mortgage loan. One of the consolidated mortgage loans was a $180 million mortgage loan on Terminus 100, which was scheduled to mature in 2012. The Company refinanced this loan by reducing the principal amount to $140 million, reducing the interest rate from a fixed annual rate of 6.13% to 5.25% and extending the maturity date to 2023. The other consolidated loan was a $22.3 million mortgage note on Meridian Mark Plaza which was scheduled to mature in September 2010. The Company refinanced this loan by increasing the principal amount to $27 million, reducing the interest rate from a fixed annual rate of 8.27% to 6.00% and extending the maturity date to 2020. In addition, the $104 million construction loan in the CF Murfreesboro Associates venture that was scheduled to mature in July 2010 was extended to 2013, and the Company replaced a $34.5 million, 8.39% mortgage loan at its CP Venture Five LLC joint venture that matured in 2010 with a $36.6 million, 4.52% mortgage loan that matures in 2017.
     The Company also renegotiated its Credit Facility in 2010. In exchange for a reduction in the overall capacity of the facility from $600 million to $350 million and an increase in the spread it pays over LIBOR, the Company modified certain financial and operating covenants to, among other things, provide more flexibility in its ability to sell assets.
     In 2010, the Company also changed its investment in Terminus 200. The Company reduced its interest in Terminus 200 from 50% to 20%, paid its $17.25 million loan guarantee, committed to invest an additional $5.6 million into the project and extended the loan from 2011 to 2013. Subsequent to this change, Terminus 200’s percent leased increased from 9% at the beginning of 2010 to 67% at year end.
     With respect to the Company’s objective of focusing on core operations, the Company made progress leasing its vacant space. In a still-challenging leasing environment, the Company increased its percent leased at its office properties from 87% at the beginning of the year to 91% at year end. Retail properties percentage leased increased from 82% to 86% (when San Jose MarketCenter is excluded from beginning of year statistics) and industrial properties increased from 51% to 96%. An added benefit from increased retail leasing was a reduction in the Company’s exposure to co-tenancy clauses in various retail leases. Leases subject to co-tenancy issues decreased from 181,000 square feet at the beginning of the year to 16,000 square feet at year-

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end, representing less than 1% of total retail square footage. This leasing activity also caused rental property revenues less rental property operating expenses to increase $9.0 million across the Company’s portfolio of consolidated and joint venture properties in 2010. The Company expects additional increases in 2011 as revenues commence on certain space leased in 2010.
     The Company’s fee income in 2010 remained consistent with that of 2009 in spite of the loss of slightly over 2 million square feet of management and/or leasing contracts from its third party business. The loss in the related fees was offset by management and leasing fees from our Terminus 200 joint venture and development fees from two new engagements.
     In addition to the additional investments the Company made in Terminus 100 and Terminus 200 discussed above, at the end of 2010, the Company was able to deploy capital in an attractive investment opportunity. The Company invested $14.9 million of equity in a joint venture that owns four Publix-anchored shopping centers in the Southeast. The Company’s investment capital was used to help its joint venture partner restructure indebtedness on the properties. In exchange, the Company will receive a preference on operating cash flows and cash flows from the sale or refinancing of the properties.
     The Company was able to accomplish its goals while reducing its overall personnel costs and with more efficient management of expenses. During 2010, the Company reduced its non-property personnel by approximately 12% which, combined with expense management activities from 2009, caused non-property salary expense to decrease by 15% in 2010. The Company expects overall general and administrative expenses for 2011 to be lower than those of 2010 based on these and additional expense management initiatives. Management continues to evaluate all of its general and administrative expenses as the Company’s business and economic conditions change.
     Looking into 2011, management expects the Company to continue to liquidate its non-strategic land, residential lot and industrial holdings to further improve its financial position. Management also believes that the Company can continue to lease its vacant office and retail space. Management will continue to search for opportunities to invest in real estate projects, and these investments may take the form of underperforming office or retail projects in need of capital to complete and in need of leasing and asset management expertise to lease and operate efficiently. There is no guarantee that any of these opportunities will materialize or that the Company will be able to take advantage of such opportunities.
Critical Accounting Policies.
     The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as outlined in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”), and the Notes to Consolidated Financial Statements include a summary of the significant accounting policies for the Company. A critical accounting policy is one which is both important to the portrayal of a company’s financial condition and results of operations and requires significant judgment or complex estimation processes. The Company is in the business of developing, owning and managing office, retail and industrial real estate properties, selling multi-family residential units, and developing single-family residential communities which are parceled into lots and sold to various home builders. The Company’s critical accounting policies relate to its long-lived assets, including cost capitalization, depreciation and amortization, and impairment of long-lived assets (including investments in unconsolidated joint ventures); revenue recognition, including residential lot sales, land tract sales, multi-family residential unit sales and valuation of receivables; income tax valuation allowances; and accounting for investments in non-wholly owned entities.
Long-Lived Assets
     Cost Capitalization. The Company is involved in all stages of real estate development. The Company expenses predevelopment costs on a project until the project becomes probable (defined as more likely than not) that it will be developed. After management determines the project is probable, all subsequently incurred predevelopment costs, as well as interest, real estate taxes and certain internal personnel and associated costs directly related to the project under development, are capitalized in accordance with accounting rules. If the Company abandons development of a project that had earlier been deemed probable, the Company charges all previously capitalized costs to expense. If this occurs, the Company’s predevelopment expenses could rise significantly in that period because all capitalized predevelopment costs associated with that project would be

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charged to expense in the period that this change occurs. The Company had approximately $7.0 million of capitalized predevelopment assets and earnest money as of December 31, 2010.
     Once a project is deemed substantially complete and held for occupancy, subsequent carrying costs, such as real estate taxes, interest, internal personnel and associated costs, are expensed as incurred. Determination of when construction of a project is substantially complete and held available for occupancy requires judgment. The Company considers projects and/or project phases substantially complete and held for occupancy at the earlier of the date on which the phase reached occupancy of 95% or one year from the issuance of a certificate of occupancy. The Company’s judgment of the date the project is substantially complete has a direct impact on the Company’s operating expenses and net income for the period.
     Depreciation and Amortization. The Company depreciates or amortizes real estate assets over their estimated useful lives using the straight-line method of depreciation. Management uses judgment when estimating the life of the real estate assets and when allocating certain indirect project costs to projects under development. Historical data, comparable properties and replacement costs are some of the factors considered in determining useful lives and cost allocations. If management incorrectly estimates the useful lives of the Company’s real estate assets or if cost allocations are not appropriate, then depreciation and amortization may not be reflected properly in the Company’s results of operations.
     The Company generally amortizes tenant costs over the lease term. In certain situations, the tenant may not fulfill its commitments under its lease, and the estimated amortization period of those tenant assets could change. In recent years, some of the Company’s retail tenants have experienced bankruptcy or have modified the terms of their lease, which resulted in accelerated amortization of tenant costs or a change in the amortization period, thereby directly affecting the current year’s net income.
     Impairment of Long-Lived Assets — Real Estate Assets. On a quarterly basis, management reviews its real estate assets for impairment indicators that include, but are not limited to, a decline in a property’s leasing percentage, a current period operating loss or negative cash flows combined with a history of losses at the property, a decline in lease rates or market sales prices, an adverse change in tenants’ industries or other changes in the market. If management determines that indicators of impairment are present, management performs a further analysis to determine whether an impairment loss is required. With the recent decline in the housing market and the overall economic downturn, management determined that indicators of impairment were present on several of the Company’s real estate assets. Therefore, the Company evaluated these assets for recoverability. These analyses require significant judgment on the part of management. First, a determination of the intent and ability to hold these assets affects the type of analyses performed. If an asset is considered to be “held for use,” as described in accounting guidance, the recoverability of the asset is assessed based on the future undiscounted cash flows to be generated by the asset. If the sum of the undiscounted cash flows is less than the carrying value of the asset, the asset is determined to be impaired, and the impairment loss is measured as the amount by which the carrying amount exceeds the project’s fair value. If an asset is considered to be “held for sale,” as described in accounting guidance, the asset is carried at the lower of its carrying amount or its fair value less costs to sell. The Company performs real estate valuation assessments based on current and future market conditions utilizing assumptions which could differ materially from actual results. These assumptions are highly subjective and susceptible to frequent change. Several examples of these assumptions are enumerated in the next paragraph.
     In analyzing the cash flows and fair value of assets with indicators of impairment, management estimates future market rental rates, cash outlays to generate leases, market capitalization rates for residual values and makes various other estimates. For residential developments, management estimates sales prices, costs to complete development, carry costs and other project level cash flows. Management reviews similar products in the market in which its assets are held and adjusts its hold period, sales volume, pricing and other factors as it deems necessary. The cyclical nature of the real estate industry, the high levels of existing inventories in the locations of the Company’s assets, consumer confidence, retailer health, employment levels and additional factors, all enter into management’s judgment during this analysis. In addition, the expected use of the Company’s assets could change over time as management obtains more information or adjusts its strategy. In addition, the discount rates utilized to estimate the fair value of assets can vary greatly based on the risk associated with the asset, which normally is affected by the type of project, the stage of its life cycle and the location of the asset. The fair value of an asset can materially change if the discount rate changes.
     The Company recorded impairment charges on several of its real estate projects and certain other assets in the last three years. See Notes 4 and 5 of Notes to Consolidated Financial Statements for further information.

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Management does not believe any of its other assets are impaired as of December 31, 2010, but will continue to monitor the state of the economy, the validity of the estimates utilized in the Company’s impairment analyses and the anticipated use and hold period of its assets.
     Impairment of Long-Lived Assets — Investments in Joint Ventures. Additionally, management performs an impairment analysis of the recoverability of its investments in joint ventures in accordance with accounting rules. At each reporting period, management reviews its investments in joint ventures for indicators of impairment. If indicators of impairment are present for any of the Company’s investments in joint ventures, management calculates the fair value of the investment. If the fair value of the investment is less than the carrying value of the investment, management must determine whether the impairment is temporary or other than temporary, as defined. If management assesses the impairment to be temporary, the Company does not record an impairment charge. If management concludes that the impairment is other than temporary, the Company records an impairment charge. The Company recorded impairment charges for several of its investments in joint ventures in 2009. See Note 5 of Notes to Consolidated Financial Statements for more information.
     Management uses considerable judgment in determining whether there are indicators of impairment present and in the assumptions used in calculating the fair value of the investment. Management also uses judgment in making the determination as to whether the impairment is temporary or other than temporary. The Company utilizes guidance provided by the SEC in making the determination of whether the impairment is temporary. The guidance indicates that companies consider the length of time that the impairment has existed, the financial condition of the joint venture and the ability and intent of the holder to retain the investment long enough for a recovery in market value. Considerable judgment is required by management to make these determinations. If management incorrectly concludes that an impairment is temporary, the Company’s financial statements may not include an impairment charge that would have had an adverse impact on its results of operations. Likewise, if management changes its previous conclusion and determines an impairment to be other than temporary, the Company could be required to record a significant impairment charge.
Revenue Recognition
     Residential Lot, For-Sale Multi-family and Land Tract Sales. When selling a lot, multi-family unit or land tract, a gross profit percentage is calculated. These percentages are calculated based on estimated sales prices and the estimated costs of the development. Markets for certain products can change over time as the project is selling, and therefore historical sales prices may not be indicative of the project’s prices over its lifetime. Also sales may not occur at a consistent or predictable rate. Therefore, sales price estimates made by management require a high degree of estimation. In addition, the state of the housing market in some of the areas in which the Company operates remain generally depressed, and the severity and duration of this cannot be predicted. Past estimates and assumptions may not have captured the magnitude of this decline.
     Also included in the estimate of gross profit percentage is the overall cost of the project. Management must estimate the costs to complete the development of the residential or for-sale multi-family projects or the cost of the land tract improvements. If the Company’s estimated lot, unit or land tract sales prices, timing of sales or costs of development, or any of the other underlying assumptions were to be revised or be rendered inaccurate, it could affect the overall profit recognized on these sales.
     Valuation of Receivables. Receivables, including straight-line rent receivables, are reported net of an allowance for doubtful accounts and may be uncollectible in the future. The Company reviews its receivables regularly for potential collection problems in computing the allowance to record against its receivables. This review process requires management to make certain judgments regarding collectibility, notwithstanding the fact that ultimate collections are inherently difficult to predict. A change in the judgments made could result in an adjustment to the allowance for doubtful accounts with a corresponding effect on net income. Current economic conditions have affected certain of the Company’s tenants, which in some cases have led to store closings, lease adjustments, bankruptcies and other changes in the lease terms. This pattern could continue and future information, which previously has been difficult to predict, can change past judgments regarding collectibility and, additionally, certain receivables currently deemed collectible could become uncollectible.
Income Taxes — Valuation Allowance
     Judgment is required in estimating valuation allowances for deferred tax assets. In accordance with accounting rules, a valuation allowance is established against a deferred tax asset if, based on the available evidence, it is not more likely than not that such assets will be realized. The realization of a deferred tax asset

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ultimately depends on the existence of sufficient taxable income in either the carryback or carryforward periods under tax law. The Company periodically assesses the need for valuation allowances for deferred tax assets based on the more-likely-than-not realization threshold criterion. In the assessment, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, its experience with operating loss and tax credit carryforwards and tax planning alternatives.
Accounting for Non-Wholly Owned Entities
     The Company holds ownership interests in a number of joint ventures with varying structures. Management evaluates all of its joint ventures and other variable interests to determine if the entity is a variable interest entity (“VIE”), as defined in accounting rules. If the venture is a VIE, and if management determines that the Company is the primary beneficiary, the Company consolidates the assets, liabilities and results of operations of the VIE. The Company reassesses its conclusions as to whether the entity is a VIE and whether consolidation is appropriate as required under the rules.
     For entities that are not determined to be VIEs, management evaluates whether or not the Company has control or significant influence over the joint venture to determine the appropriate consolidation and presentation. Generally, entities under the Company’s control are consolidated, and entities over which the Company can exert significant influence, but does not control, are accounted for under the equity method of accounting.
     If the Company’s judgment as to the existence of a VIE, the primary beneficiary of the VIE, and the extent of influence and control over a non-VIE is incorrect, the presentation on the balance sheet and the way the results of operations were reflected could be incorrect. In addition, the conclusion of whether or not an entity should be consolidated can change as reconsideration events occur. As time passes from the formation of an entity, the expected results of the entity can vary, which also could change the allocation to the partners. Different conclusions may be reached in the future depending on market conditions, and certain joint ventures not previously consolidated could become consolidated entities and vice versa.
     The Company recognizes on its Consolidated Balance Sheets the partner’s share of non-wholly owned entities which the Company consolidates. The noncontrolling partner’s share of current operations is reflected in Net Income Attributable to Noncontrolling Interest on the Consolidated Statements of Operations. The Company has several joint venture agreements that contain provisions requiring the Company to purchase the noncontrolling interest at fair value upon demand or at a future date. These noncontrolling interests with redemption features, or redeemable noncontrolling interests, are reflected at fair value in a separate line item on the Company’s Consolidated Balance Sheets. The Company records the difference between cost and fair value of redeemable noncontrolling interests as an adjustment to Equity as changes in fair value occur.
     Contributions to unconsolidated joint ventures are recorded as Investments in Unconsolidated Joint Ventures. This account is subsequently adjusted for the Company’s share of income or loss from unconsolidated joint ventures, as well as contributions and distributions to and from the entities. Any difference between the carrying amount of these investments on the Company’s balance sheet and the underlying equity in net assets on the joint venture’s balance sheet is adjusted as the related underlying assets are depreciated, amortized or sold.
Discussion of New Accounting Pronouncement.
     The Company adopted new guidelines effective January 1, 2010, which modified how a company determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design and a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance. An ongoing reassessment of whether a company is the primary beneficiary of a VIE, and additional disclosures about a company’s involvement in VIEs, including any significant changes in risk exposure due to that involvement, is required. These new guidelines did not have a material impact on the Company’s financial condition, results of operations or cash flows.

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Results of Operations For The Three Years Ended December 31, 2010.
     General. The Company’s financial results have historically been significantly affected by sale transactions and the fees generated by, and start-up operations of, real estate developments. These types of transactions and developments do not necessarily recur. Accordingly, the Company’s historical financial statements may not be indicative of future operating results.
     Rental Property Revenues. Summary. Overall, rental property revenues increased approximately $4.0 million (3%) between 2010 and 2009 and increased approximately $2.6 million (2%) between 2009 and 2008.
Comparison of Year Ended December 31, 2010 to 2009.
     Office — Rental property revenues from the office portfolio increased $780,000 (1%) between the 2010 and 2009 periods as a result of the following:
    Increase of $4.6 million in 2010 related to 191 Peachtree Tower, where average economic occupancy increased from 61% in 2009 to 75% in 2010;
 
    Decrease of $2.4 million in 2010 from the American Cancer Society Center (the “ACS Center”), where average economic occupancy decreased from 92% in 2009 to 85% in 2010. This decrease was mainly the result of the expiration of the 139,000 square foot AT&T lease in the third quarter of 2009; and
 
    Decrease of $752,000 in 2010 from Terminus 100 due to a decrease in revenues from retail tenants, a decrease in parking revenues and an adjustment to tenant recovery revenues caused by a decrease in recoverable expenses.
     Retail — Rental property revenues from the retail portfolio increased $1.3 million (4%) between the 2010 and 2009 periods as a result of the following:
    Increase of $2.6 million in 2010 from The Avenue Forsyth, where average economic occupancy increased from 58% in 2009 to 70% in 2010; and
 
    Decrease of $944,000 in 2010 related to The Avenue Webb Gin, mainly due to the sale of four leased outparcels during 2010.
     Industrial — Rental property revenues from the industrial portfolio increased $1.8 million (58%) between 2010 and 2009 as a result of the following:
    Increase of $771,000 from Jefferson Mill Business Park Building A. This building is 100% leased to a single user and this lease commenced during 2010, which increased average economic occupancy from 0% in 2009 to 42% in 2010;
 
    Increase of $661,000 from King Mill Distribution Park Building 3, where average economic occupancy increased from 58% in 2009 to 87% in 2010; and
 
    Increase of $378,000 from Lakeside Ranch Business Park Building 20, where average economic occupancy increased from 48% in 2009 to 68% in 2010.
Comparison of Year Ended December 31, 2009 to 2008.
     Office — Rental property revenues from the office portfolio decreased $1.5 million (1%) between the 2009 and 2008 periods as a result of the following:
    Decrease of $2.1 million at 191 Peachtree Tower, as average economic occupancy decreased from 80% in 2008 to 61% in 2009, mainly due to the December 2008 expiration of the Wachovia lease;
 
    Decrease of $1.7 million from the ACS Center, due to a decrease in average economic occupancy from 99% in 2008 to 92% in 2009;
 
    Increase of $2.0 million at One Georgia Center, as average economic occupancy increased from 68% in 2008 to 99% in 2009, due to the commencement of the Georgia Department of Transportation lease in 2008.
     Retail — Rental property revenues from the retail portfolio increased $3.9 million (15%) in 2009 compared to 2008 as a result of the following:

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    Increase of $2.5 million at The Avenue Forsyth, which opened in April 2008, related to increased average economic occupancy from 32% in 2008 to 58% in 2009;
 
    Increase of $3.3 million at Tiffany Springs MarketCenter, which opened in July 2008, related to increased average economic occupancy from 29% in 2008 to 73% in 2009; and
 
    Decrease of $1.8 million at The Avenue Carriage Crossing, where average economic occupancy decreased from 91% in 2008 to 84% in 2009.
     Rental Property Operating Expenses. Rental property operating expenses decreased approximately $4.4 million (7%) in 2010 compared to 2009 as a result of the following:
    Decrease of $1.0 million in 2010 from Terminus 100 due to a decrease in bad debt expense, a decrease in parking costs and adjustments relating to 2008 operating expenses made during 2009;
 
    Decrease of $1.3 million in 2010 from 191 Peachtree Tower due primarily to a decrease in bad debt expense during 2010 compared to 2009;
 
    Decrease of $961,000 in 2010 from The Avenue Carriage Crossing due to a decrease in real estate tax expense based on an anticipated reduction in assessments, a reduction in insurance costs and a decrease in bad debt expense; and
 
    Decrease of $657,000 in 2010 from The Avenue Webb Gin due mainly to a decrease in bad debt expense.
     Rental property operating expenses increased approximately $8.9 million (16%) in 2009 compared to 2008 as a result of the following:
    Increase of $1.3 million at The Avenue Forsyth related to increased occupancy and increases in bad debt expense;
 
    Increase of $1.2 million at Tiffany Springs MarketCenter related to a full year of operations and increased economic occupancy;
 
    Increase of $354,000 at One Georgia Center, due to increased average economic occupancy;
 
    Increase of $2.6 million at 191 Peachtree Tower, primarily due to increases in real estate taxes, non-recoverable tenant amenity expenses, marketing costs and bad debt expense; and
 
    Increase of $2.8 million at Terminus 100, due partially to increased economic occupancy in 2009, an increase in bad debt expense and adjustments to true up estimates of various operating expenses to actual in both 2008 and 2009.
     Fee Income. Fee income is comprised of management fees, development fees, tenant construction management fees and leasing fees for services that the Company provides for joint ventures in which it has an ownership interest and for third party property owners. These amounts vary by years due to the number of contracts with ventures and third party owners and the development and leasing needs at the underlying properties. Amounts are expected to continue to vary in future years based on volume and composition of activities at the underlying properties and changes in the number of properties managed.
     Fee income decreased $386,000 (1%) between 2009 and 2010. Management fees, including amounts reimbursed, decreased approximately $1.7 million, due to changes in the mix of management contracts of third party properties between the years. Leasing fees increased approximately $1.2 million, mainly due to approximately $1.6 million of leasing fees recognized from the MSREF/Cousins Terminus 200 LLC (“MSREF/T200”) venture formed in 2010.
     Fee income decreased $13.9 million (29%) between the 2008 and 2009 periods. The majority of the decrease is due to a development fee of $13.5 million recognized in 2008, which was earned on a contract the Company assumed in an acquisition of an entity several years ago. Pursuant to the contract, the Company would share in certain proceeds if a project the acquired entity developed was sold. This project was sold in 2008, and the fee was earned by the Company. Management fees and leasing fees did not change significantly between 2009 and 2008.

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     Multi-Family Residential Sales and Cost of Sales. Multi-family residential sales increased $3.6 million (12%) between 2010 and 2009. Cost of sales increased approximately $1.4 million (5%) between 2010 and 2009. The changes were due to the following:
    Closed 75 units at 10 Terminus Place in 2010 compared to 42 units in 2009 resulting in a $16.7 million increase in sales and a $12.5 million increase in cost of sales;
 
    Closed the five remaining residential units at 60 North Market in 2010 compared to 24 residential units in 2009 resulting in a decrease in sales of $6.2 million and in cost of sales of $5.7 million. The Company acquired this project in 2009 in satisfaction of a note receivable from the developer, and sold the majority of the units acquired during 2009. See section below on Impairment Loss for additional discussion of 60 North Market; and
 
    Decrease of $6.9 million in sales and $5.3 million in cost of sales from The Brownstones at Habersham, discussed below.
     Multi-family residential sales increased $22.4 million between 2009 and 2008. Cost of sales increased approximately $18.3 million between 2009 and 2008. The changes were due to the following:
    Closed 14 units and five completed building pads in 2009 at The Brownstones at Habersham project resulting in a $6.9 million increase in sales and a $5.3 million increase in cost of sales. The Company purchased this project in 2009 and sold all units in that same year;
 
    Closed 42 units at 10 Terminus Place in 2009 compared to 13 units in 2008 resulting in a $7.5 million increase in sales and a $5.4 million increase in cost of sales; and
 
    Closed 24 units at 60 North Market that increased sales by $8.0 million and cost of sales by $7.6 million.
     Residential Lot and Outparcel Sales and Cost of Sales. Residential lot and outparcel sales increased $8.5 million (115%) between 2010 and 2009 and $428,000 (6%) between 2009 and 2008. Residential lot and outparcel cost of sales increased $5.7 million (113%) between 2010 and 2009 and $1.2 million (33%) between 2009 and 2008.
     Residential Lot Sales and Cost of Sales — The Company’s residential lot business consists of projects that are consolidated, where income is recorded in the residential lot and outparcel sales and cost of sales line items, and projects that are owned through joint ventures in which the Company is a 50% partner — Temco and CL Realty — where income is recorded in income from unconsolidated joint ventures. Residential lot sales increased $768,000 for consolidated projects between 2010 and 2009 and decreased $398,000 between 2009 and 2008. Residential lot cost of sales increased $676,000 between 2010 and 2009 and decreased $51,000 between 2009 and 2008. The numbers of lots sold were as follows:
                         
    2010     2009     2008  
Consolidated projects
    39       14       14  
Temco
    2             8  
CL Realty
    330       128       177  
 
                 
Total
    371       142       199  
 
                 
     The increase in consolidated lot sales is the result of a bulk sale of 25 lots in the fourth quarter of 2010 at the Company’s Lakes at Cedar Grove project in Atlanta, Georgia. The increase in lot sales at CL Realty is the result of higher 2010 sales at several of its Texas projects.
     Demand for residential lots has been low in recent years as a result of general market conditions and limited demand in the Company’s and its ventures’ principal markets of Texas, Florida and metropolitan Atlanta. Demand in its Texas markets is generally improving while the Company’s Florida and Atlanta markets have not shown similar signs of recovery. Management is closely monitoring market developments but is unable to predict when its markets will improve.
     On a quarterly basis, the Company analyzes its consolidated land and lot holdings for impairment. The Company recorded an impairment loss on its Handy Road residential land holding in 2010 of approximately $2.0 million and recorded no impairment losses on any of its other consolidated land or lot holdings in 2009 or 2008. In 2010, 2009 and 2008, the Company recorded impairment losses at CL Realty and Temco and on its

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investments in CL Realty and Temco. See Income from Unconsolidated Joint Ventures section below and see Note 5 to the Consolidated Financial Statements for more details. Given the continuing uncertainty in the residential market, there can be no guarantee that the Company will not record impairment charges on its land and lot holdings in the future.
     Outparcel Sales and Cost of Sales — Outparcel sales increased $7.8 million between 2010 and 2009 and $825,000 between 2009 and 2008. Outparcel cost of sales increased $5.0 million between 2010 and 2009 and $1.3 million between 2009 and 2008. There were eight outparcel sales in 2010 and three in both 2009 and 2008.
     General and Administrative (G&A) Expenses. G&A expense increased approximately $2.2 million (6%) between 2010 and 2009 as a result of the following:
    Increase in salaries and benefits before capitalization of approximately $2.9 million due to an increase in bonus expense in 2010, as the Company paid no bonuses to employees in 2009. This increase is partially offset by a decrease in the number of employees between the years, due to reductions in force;
 
    Decrease in the capitalization of salaries and benefits of $825,000 in 2010. The Company capitalizes salaries and benefits of personnel who work on qualified development projects or those who work on leases that have been executed or certain leases that are probable of being executed. These costs are allocated to the related project and reduce G&A expense. The number of development projects and leases vary between years, and the amount of qualified projects decreased between 2010 and 2009;
 
    Decrease of approximately $704,000 in costs associated with operating the Company’s airplane, which was sold in the fourth quarter of 2009; and
 
    Decrease of approximately $353,000 due to decreased advertising and marketing expenditures relating to the Company’s residential and for-sale multi-family projects;
 
G&A expense decreased $7.0 million (17%) between 2009 and 2008 as a result of the following:
 
    Decrease in salaries and benefits for employees of approximately $11.6 million. This decrease is based in part on a decrease in the number of employees at the Company between the periods and a decrease in bonus and profit sharing expense;
 
    Decrease of approximately $2.6 million in commission expense. The Company recognized a development fee of $13.5 million in the third quarter 2008 (see Fee Income section above). In conjunction with this fee, a $3.4 million employee leasing commission was recognized in the third quarter of 2008 as a cost of earning this development fee;
 
    Decrease of approximately $1.3 million in contributions, as the Company expensed $1.0 million of donations that it made to its charitable foundation in 2008; and
 
    Decrease of $8.4 million between 2009 and 2008 in capitalized salaries and related benefits for personnel involved in the development and leasing of certain projects, due to a decrease in the number of projects under construction in 2009.
     Separation Expenses. Separation expenses decreased approximately $2.2 million between 2010 and 2009, and increased approximately $2.1 million between 2008 and 2009. The Company had reductions in force in each of the years presented. Approximately $2.0 million of the decrease between 2010 and 2009, as well as the increase between 2009 and 2008, was due to expense recognized in 2009 for the lump sum cash payment and for the modification of stock compensation awards related to the retirement of the Company’s former chief executive officer.
     Depreciation and Amortization. Depreciation and amortization increased approximately $5.8 million (11%) between 2010 and 2009 primarily as a result of the following:
    Increase of $4.8 million related to higher tenant improvement amortization from increased occupancy at 191 Peachtree Tower;
 
    Increase of $1.5 million at The Avenue Forsyth due to an increase in occupancy;

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    Increase of $969,000 at The Avenue Webb Gin due partially to accelerated amortization in 2010 of assets for tenants who terminated their leases prior to the originally scheduled end date and to an increase in average economic occupancy from 81% in 2009 to 84% in 2010;
 
    Decrease of $715,000 at Terminus 100 due partially to accelerated amortization in 2009 for tenants who either terminated their leases or reduced their space and to a decrease in economic occupancy from 95% in 2009 to 92% in 2010;
    Decrease of $655,000 due to the sale of the Company’s airplane in 2009; and
 
    Decrease of $809,000 in depreciation of furniture, fixtures and equipment for the corporate offices due to a reduction in staff and office space, as well as fully amortized equipment.
     Depreciation and amortization increased approximately $3.1 million (6%) between 2009 and 2008 primarily as a result of the following:
    Increase of $2.0 million related to higher depreciation of tenant assets associated with increases in occupancy at Terminus 100, as well as the aforementioned tenant lease terminations and adjustments;
 
    Increase of $792,000 at One Georgia Center due to increased occupancy;
 
    Increase of $1.7 million due to increased occupancy between 2008 and 2009 from The Avenue Forsyth and Tiffany Springs MarketCenter, which opened during 2008;
 
    Decrease of $535,000 due to decreases in occupancy between 2008 and 2009 at 191 Peachtree and The Avenue Carriage Crossing; and
 
    Decrease of $348,000 due to the sale of the Company’s airplane in 2009.
     Interest Expense. Interest expense decreased approximately $2.7 million (7%) between 2010 and 2009 due to the following:
    Lower average borrowings, related primarily to the full year’s effect of the 2009 common equity offering, and a lower average interest rate, mainly due to interest rate swap terminations, on the Credit Facility in 2010 compared to 2009;
 
    Repayment of the Term Facility in July 2010 and the termination of the associated interest rate swap;
 
    Repayment of the 8.39% Meridian Mark Plaza note payable in July 2010. The Company entered into a new note payable secured by Meridian Mark Plaza at an interest rate of 6%; and
 
    Decrease in capitalized interest of $3.7 million in 2010. Interest is capitalized to certain qualifying projects during their construction, which reduces interest expense. When development declines, the amount of interest which qualifies for capitalization falls. The Company had a decrease in projects under development in 2010, and capitalized less interest, which partially offset the decrease in interest expense.
     Interest expense increased approximately $11.6 million (41%) in 2009 compared to 2008, due to the following:
    Increase in average borrowings on the Company’s Credit Facility during 2009 compared to 2008; and
 
    Decrease in capitalized interest of $11.2 million as a result of a decrease in the number and size of projects under development between the two years.
     Impairment Loss. During 2010, 2009 and 2008, the Company recorded the following impairment losses (in thousands):

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    2010     2009     2008  
Handy Road
  $ 1,968     $     $  
60 N. Market/related note receivable
    586       1,600        
10 Terminus Place
          34,900       2,100  
Company airplane
          4,012        
 
                 
 
  $ 2,554     $ 40,512     $ 2,100  
 
                 
     Handy Road, a consolidated joint venture that holds undeveloped land in Atlanta, Georgia, has a mortgage loan that is due in March 2011. The Company has been holding this land for future development or sale. In connection with the maturing mortgage loan, the Company evaluated several alternatives with respect to this project and determined that it was unlikely to either seek an extension of the loan or to repay the loan in order to hold the land for future investment or development opportunities. Therefore, a conveyance of the property to the bank represents the most likely scenario for this project. Given this change in intent, the Company recognized an impairment loss of approximately $2.0 million to record the land at its fair value, less costs to sell.
     60 North Market, a for-sale multi-family residential project in Asheville, North Carolina, was acquired by the Company in July 2009 in satisfaction of a note receivable. Upon acquisition, the Company recorded a $1.6 million impairment loss which equaled the difference between the fair value of the project and the sum of the book value of the note receivable plus a construction loan on the project that the Company paid. In 2010, the Company recorded an additional impairment on the project of $586,000 as it determined the fair value of the project had declined further since its acquisition. At December 31, 2010, there was approximately 9,200 square feet of commercial space available for sale with a carrying amount of $433,000.
     10 Terminus Place is a for-sale multi-family residential project in Atlanta, Georgia. The Company substantially completed the development in late 2008, and at that point it was determined to be held for sale in accordance with applicable accounting rules. The Company recorded a $2.1 million impairment loss at substantial completion to record the project at the Company’s estimate of fair value. In 2009, market conditions for for-sale multi-family residential projects deteriorated further, and the Company recorded an additional impairment loss of $34.9 million. At December 31, 2010, seven units with a carrying amount of approximately $2.6 million remain unclosed at this project and are included in Multi-Family Units Held for Sale on the accompanying Consolidated Balance Sheets.
     In 2009, the Company sold its airplane at an amount lower than its cost basis, which resulted in an impairment loss of $4.0 million.
     Most of the Company’s real estate assets are considered to be held for use pursuant to the accounting rules. If management’s intent changes on any of these assets, the Company may be required to record significant impairment charges in future periods. Changes that could cause these impairment losses include: (1) a decision by the Company to sell the asset rather than hold for long-term investment or development purposes, or (2) changes in management’s estimates of future cash flows from the assets that cause the future undiscounted cash flows to be less than the asset’s carrying amount. Given the uncertainties with the economic environment and the amount of the Company’s land and residential lot holdings, management cannot predict whether or not the Company will incur impairment losses in the future, and if impairment losses are recorded, management cannot predict the magnitude of such losses.
     Other Expense. Other expense decreased approximately $8.0 million (61%) between 2010 and 2009 and increased approximately $7.1 million (117%) between 2009 and 2008. Other Expense includes predevelopment costs that the Company incurs prior to the stage where a project is considered probable of being developed. Once a project is determined to be probable, the Company capitalizes all predevelopment costs associated with the project. If the Company subsequently abandons a project that had been considered probable, the Company writes the previously capitalized costs off and records them in Other Expense. In 2010, 2009, and 2008, the Company abandoned one, three and two predevelopment projects, respectively, and recorded predevelopment expense associated with these abandoned projects of $829,000, $7.7 million and $3.6 million in such years, respectively. Other Expense also includes funding costs such as real estate taxes, insurance and homeowners’ association expenses for completed development projects. These holding costs decreased by $1.5 million between 2010 and 2009 and increased by $2.9 million between 2009 and 2008 due to corresponding changes in the number of projects the Company was funding.

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     Loss on Extinguishment of Debt and Interest Rate Swaps. In 2010, the Company incurred a fee of $9.2 million to terminate an interest rate swap on the Term Facility. In addition, in 2010, the Company restructured its Credit Facility and wrote off $592,000 in unamortized loan closing costs related to the previous credit facility. In 2009, the Company paid fees of $2.8 million for the termination of one $75 million interest rate swap and the reduction of the notional amount of another interest rate swap from $75 million to $40 million. (See Notes 2 and 3 of Notes to Consolidated Financial Statements for additional information regarding the interest rate swaps.)
     Benefit (Provision) for Income Taxes from Operations. Income taxes from operations was a benefit of $1.1 million in 2010, a provision of $4.3 million in 2009 and a benefit of $8.8 million in 2008. In 2009, the Company recorded a valuation allowance against the net deferred tax asset of its taxable REIT subsidiary, Cousins Real Estate Corporation (“CREC”). The Company was unable to predict with enough certainty whether the deferred tax asset and the current year benefits would ultimately be realized. Although CREC has operating losses, the Company is continuing to recognize no current income tax benefit due to the ongoing uncertainty of realization of these benefits. This uncertainty is the result of the continued decline in the housing market which directly impacts CREC’s residential lot and land business. In the fourth quarter of 2009, Congress changed certain tax laws which allowed the Company to carry back 2009 operating losses to profitable years. As a result, the Company recognized a benefit of $3.1 million in the fourth quarter of 2009, and adjusted its recovery estimate in the first quarter of 2010 and recognized an additional $1.1 million benefit in the first quarter of 2010.
     Income (Loss) from Unconsolidated Joint Ventures:
     Equity in net income (loss) from unconsolidated joint ventures. Increase of $27.1 million between 2010 and 2009 and decrease of $27.4 million between 2009 and 2008. The primary reason for these changes was related to impairment losses taken at four joint ventures in 2010 and 2009. These impairment losses were recorded on specific assets held by the joint ventures, discussed below, in accordance with accounting standards for long-lived assets. The section below entitled “Impairment Loss on Investment in Unconsolidated Joint Ventures,” represents impairment losses on the Company’s investment in certain joint ventures that were recorded in accordance with accounting standards for impairment of equity method investments. A summary of the Company’s share of the impairment losses recorded at these ventures is as follows (in thousands):
                         
    2010     2009     2008  
CL Realty
  $ 2,229     $ 2,619     $ 325  
Pine Mountain Builders
    1,517              
Temco
          631        
Terminus 200 LLC
          20,931        
 
                 
 
  $ 3,746     $ 24,181     $ 325  
 
                 
     The impairment loss at CL Realty in 2010 relates primarily to a decision to sell rather than develop a parcel of land in Padre Island, Texas, which required CL Realty to reduce the carrying cost of the parcel to fair value, less costs to sell. The impairment loss in 2010 at Pine Mountain Builders relates primarily to a decision to sell six model homes held by this entity at amounts below their carrying cost.
     The impairment loss at CL Realty in 2009 relates to an adjustment to record an investment CL Realty had in an unconsolidated joint venture to zero. The impairment loss at Temco in 2009 relates to a change in cash flow assumptions at one if its projects resulting in an adjustment to record the project at fair value. The impairment loss at Terminus 200 LLC (“T200”) in 2009 represents the Company’s share of an adjustment to reduce the carrying amount of the building owned by T200 to fair value as a result of a change in estimates of future cash flows from operations and ultimate disposition of the building.
     The impairment loss at CL Realty in 2008 relates to a change in cash flow assumptions at one of its projects resulting in an adjustment to record the project at fair value.
     Before the impairment charges, equity in net income (loss) from unconsolidated joint ventures increased $5.0 million between 2010 and 2009 and decreased $1.9 million between 2009 and 2008. The increase in 2010 is primarily related to an increase in lot and tract sales activities at CL Realty. The decrease in 2009 is a result of lower lot and tract sales at CL Realty and Temco and lower income from the TRG Columbus Development

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Venture, Ltd. joint venture, offset by an increase in income from Palisades West LLC, which became operational in 2008.
     Impairment Loss on Investment in Unconsolidated Joint Ventures. During 2010, 2009 and 2008, the Company recorded the following impairment losses on its investments in unconsolidated joint ventures the accompanying Consolidated Statement of Operations (in thousands):
                         
    2010     2009     2008  
                   
CL Realty
  $     $ 20,300     $  
Temco
          6,700        
T200
          17,993        
Glenmore
          6,065        
                   
 
  $     $ 51,058     $  
                   
     The Company analyzed its investments in CL Realty and Temco for impairment in accordance with accounting standards for equity method investments and determined that the fair value of CL Realty and Temco was less than each investment’s carrying amount. As a result of the state of the market for residential lots, adjustments to the sell-out period for certain projects and the duration of the market decline, the Company determined that the impairments at CL Realty and Temco were other-than-temporary and recorded the impairment losses in 2009.
     As discussed above, T200 recognized an impairment loss in 2009, the Company’s share of which was $20.9 million. At the time, the Company guaranteed the T200 construction loan up to a maximum of $17.25 million and had certain commitments to fund tenant improvement costs at T200. The Company determined that it was probable that it would be required to fund this guarantee and these tenant costs and accrued these amounts as impairment losses on its investment in T200 in 2009.
     In 2009, prior to and upon consolidation of Glenmore Gardens Villas (“Glenmore”), a townhome development in Charlotte, North Carolina, the Company recorded impairment losses of $6.1 million on its investment in Glenmore, which effectively recorded the assets and debt of Glenmore at fair value.
     Gain on Sale of Investment Properties. Gain on sale of investment properties was $1.9 million, $168.6 million, and $10.8 million in 2010, 2009 and 2008, respectively. The 2010 gain included the following:
    Sale of undeveloped land at the Jefferson Mill and King Mill projects ($1.2 million);
 
    Sale of Glenmore ($369,000);
 
    Recurring amortization of deferred gain from CP Venture, LLC ($236,000); and
 
    Sale of undeveloped land at the Company’s North Point Project ($133,000).
     The 2009 gain included the following:
    Sale of undeveloped land at the Company’s North Point Project ($745,000);
 
    The recognition of $167.2 million in deferred gain related to the 2006 venture formation with Prudential. When the Company and Prudential formed the venture, the Company contributed properties and Prudential contributed cash. The Company accounted for the transaction as a sale in accordance with accounting rules, but deferred the related gain because the consideration received was a partnership interest as opposed to cash. In 2009, the venture made a pro rata distribution of cash to the Company and Prudential that required the Company to recognize all of the gain that was deferred in 2006; and
 
    Gain on sale of certain land tracts and other miscellaneous corporate assets ($723,000).
     The 2008 gain included the following:
    Sale of undeveloped land from the Company’s North Point land holdings ($3.7 million);

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    Sale of undeveloped land adjacent to The Avenue Forsyth project ($3.9 million);
 
    Sale of certain of the Company’s non-real estate assets ($960,000);
 
    Sale of undeveloped land from the Jefferson Mill project land holdings ($748,000);
 
    Condemnation of land at Cosmopolitan Center ($618,000);
 
    Sale of Company aircraft ($415,000);
 
    The recurring amortization of deferred gain from CP Venture, LLC ($220,000); and
 
    Land tract sale at the Cedar Grove residential development ($161,000).
     Discontinued Operations. Accounting rules require that certain properties that were sold or plan to be sold be treated as discontinued operations and that the results of their operations and any gains on sales from these properties be shown as a separate component of income in the Consolidated Statements of Operations for all periods presented. Therefore, prior year results change as a result of the reclassification of the operations of these properties into a separate section of the Consolidated Statements of Operations entitled Discontinued Operations. The differences between the years are due to the number and type of properties included, and not all property sales meet the qualifications for treatment as a discontinued operation. In 2010, the Company’s sale of San Jose MarketCenter, a 213,000-square-foot retail center in San Jose, California, for a gain of approximately $6.6 million, qualified as a Discontinued Operation. Also included in 2009 Discontinued Operations is a gain on extinguishment of debt related to San Jose MarketCenter that the Company recognized in 2009. The Company paid the center’s mortgage note payable at a discount from the carrying amount, and the difference in the payment and the carrying amount of the note was recognized as a gain. In 2010, the Company’s sale of 8995 Westside Parkway, a 51,000-square-foot office building in suburban Atlanta, Georgia, for a gain of approximately $700,000, also qualified as a Discontinued Operation. No properties qualifying as Discontinued Operations were sold in 2009. The 3100 Windy Hill Road office building was sold in 2008 for a gain of approximately $2.4 million, and was treated as a Discontinued Operation.
     Funds From Operations. The table below shows Funds From Operations Available to Common Stockholders (“FFO”) and the related reconciliation to net income (loss) available to common stockholders for the Company. 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 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.
     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. 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 operating performance in part based on FFO. Additionally, the Company uses FFO, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and key employees. The reconciliation of net income (loss) available to common stockholders to FFO is as follows for the years ended December 31, 2010, 2009 and 2008 (in thousands, except per share information):

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    Years Ended December 31,  
    2010     2009     2008  
Net Income (Loss) Available to Common Stockholders
  $ (27,480 )   $ 14,388     $ 7,590  
Depreciation and amortization:
                       
Consolidated properties
    59,111       53,350       50,271  
Discontinued properties
    845       2,483       3,140  
Share of unconsolidated joint ventures
    9,683       8,800       6,495  
Depreciation of furniture, fixtures and equipment:
                       
Consolidated properties
    (1,884 )     (3,366 )     (3,710 )
Discontinued properties
    (5 )     (16 )     (33 )
Share of unconsolidated joint ventures
    (22 )     (46 )     (79 )
Gain on sale of investment properties, net of applicable
                       
income tax provision:
                       
Consolidated
    (1,938 )     (168,637 )     (10,799 )
Discontinued properties
    (7,226 )     (147 )     (2,472 )
Share of unconsolidated joint ventures
          (12 )      
Gain on sale of undepreciated investment properties
    1,697       1,243       10,611  
 
                 
 
Funds From Operations Available to Common Stockholders
  $ 32,781     $ (91,960 )   $ 61,014  
 
                 
 
                       
Per Common Share — Basic:
                       
Net Income (Loss) Available
  $ (.27 )   $ .22     $ .15  
 
                 
Funds From Operations
  $ .32     $ (1.40 )   $ 1.19  
 
                 
Weighted Average Shares-Basic
    101,440       65,495       51,331  
 
                 
 
                       
Per Common Share — Diluted:
                       
Net Income (Loss) Available
  $ (.27 )   $ .22     $ .15  
 
                 
Funds From Operations
  $ .32     $ (1.40 )   $ 1.18  
 
                 
Weighted Average Shares-Diluted
    101,440       65,495       51,728  
 
                 
Liquidity and Capital Resources:
The Company’s primary liquidity sources are:
    Cash from operations;
 
    Borrowings under its Credit Facility;
 
    Mortgage notes payable;
 
    Proceeds from equity offerings;
 
    Joint venture formations; and
 
    Sales of assets.
The Company’s primary liquidity uses are:
    Corporate expenses;
 
    Expenditures on predevelopment and development projects;
 
    Payments of tenant improvements and other leasing costs;
 
    Principal and interest payments on debt obligations;
 
    Dividends to common and preferred stockholders; and
 
    Property acquisitions.

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Financial Condition.
     The Company has taken steps to improve its financial position by reducing leverage, extending maturities and modifying credit agreements to increase overall financial flexibility. The Company expects to fund its current commitments over the next 12 months with borrowings under its Credit Facility, borrowings under new or renewed mortgage loans and with the sale of assets. The Company may also seek additional capital to fund its activities that may include joint venture equity from third parties and the issuance of common or preferred equity. Relative to prior years, the Company’s new investment commitments have decreased. The Company did not commence any new development or predevelopment projects in 2010, and currently anticipates that there will be limited development activity for 2011. The Company may acquire properties in 2011 if opportunities arise. The Company also has commitments under current leases to fund tenant assets, and anticipates additional tenant costs in 2011 based on lease-up expectations. The Company has relatively low debt maturities in 2011.
Contractual Obligations and Commitments.
     At December 31, 2010, the Company was subject to the following contractual obligations and commitments ($ in thousands):
                                         
            Less than                     After  
    Total     1 Year     1-3 Years     3-5 Years     5 years  
Contractual Obligations:
                                       
Company long-term debt:
                                       
Unsecured Credit Facility (1)
  $ 105,400     $     $ 105,400     $     $  
Mortgage notes payable
    404,109       45,762       50,739       10,045       297,563  
Interest commitments (2)
    165,471       26,033       39,489       35,641       64,308  
Ground leases
    14,970       99       206       216       14,449  
Other operating leases
    1,710       580       790       269       71  
     
Total contractual obligations
  $ 691,660     $ 72,474     $ 196,624     $ 46,171     $ 376,391  
     
 
                                       
Commitments:
                                       
Letters of credit
  $ 4,129     $ 4,129     $     $     $  
Performance bonds
    2,025       1,984       41              
Unfunded tenant improvements and other
    12,389       11,389       1,000              
     
Total commitments
  $ 18,543     $ 17,502     $ 1,041     $     $  
     
 
(1)   Reflects that the one-year extension on the Credit Facility will be exercised.
 
(2)   Interest on variable rate obligations is based on rates effective as of December 31, 2010.
     In addition, the Company has several standing or renewable service contracts mainly related to the operation of our buildings. These contracts are in the ordinary course of business and are generally one year or less. These contracts are not included in the above table and are usually reimbursed in whole or in part by our tenants.
     Credit and Term Facilities
     In February 2010, the Company entered into a First Amendment (the “Amendment”) of its Credit and Term Facilities with Bank of America and the other participating banks. The Amendment reduced the amount available under the Credit Facility from $500 million to $250 million. The amount available under the Term Facility remained the same; however, if the Company subsequently sold certain assets aggregating $50 million, it was required to utilize the proceeds to reduce the balance outstanding on the Term Facility. The Amendment provided that if the Term Facility was repaid, in whole or in part, prior to the maturity of the Credit Facility, the availability under the Credit Facility would increase correspondingly, allowing a total availability under the combined Facilities of $350 million. The maturity date of the Credit Facility is August 29, 2011. The Credit Facility can be extended for one year with the payment of a fee, unless there is an event of default. The Company is reflecting the maturity date as extended in the table above.
     The Amendment provided that amounts outstanding under the Credit and Term Facilities accrue interest at LIBOR plus a spread, based on the Leverage Ratio, which is Adjusted Debt, as defined in the Amendment, over

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Total Assets, as defined in the Amendment, and it changed the spread for the Credit and Term Facilities. At December 31, 2010, the spread over LIBOR under the Credit Facility was 2.0%.
             
    Credit and Term Facilities   Credit Facility   Term Facility Applicable
    Applicable Spread — As   Applicable Spread —   Spread — Before
Leverage Ratio   Amended   Before Amendment   Amendment
     
£ 35%
  1.75%   0.75%   0.70%
>35% but £ 45%
  2.00%   0.85%   0.80%
>45% but £ 50%
  2.25%   0.95%   0.90%
>50% but £ 55’%
  2.25%   1.10%   1.05%
>55%
  N/A   1.25%   1.20%
     The Amendment also changed certain operating and financial covenants including, but not limited to, the minimum Consolidated Fixed Charge Coverage Ratio, as defined, which decreased from 1.50 to 1.30. The Company incurred an administrative fee of approximately $1.7 million to effect the Amendment and additionally expensed unamortized deferred loan costs related to the previous facility of $592,000.
     In July 2010, the Company paid the outstanding balance of the Term Facility in full. Accordingly, the maximum amount available under the Credit Facility increased to $350 million. In conjunction with the payoff of the Term Facility, the Company terminated the related interest rate swap, and the Company paid the counterparty to the swap agreement $9.2 million, which was recognized as an expense in 2010.
     The amount that the Company may draw under the Credit Facility is a defined function of the Company’s unencumbered assets and is reduced by any letters of credit outstanding. Based on these limitations, as of December 31, 2010, the Company was able to draw an additional $238.4 million under the Credit Facility.
     The Credit Facility includes customary events of default, including, but not limited to, the failure to pay any interest or principal when due, the failure to perform under covenants of the credit agreement, incorrect or misleading representations or warranties, insolvency or bankruptcy, change of control, the occurrence of certain ERISA events and certain judgment defaults. The amounts outstanding under the Credit Facility may be accelerated upon an event of default. The Credit Facility contains restrictive covenants pertaining to the operations of the Company, including limitations on the amount of debt that may be incurred, the sale of assets, transactions with affiliates, dividends and distributions. The Credit Facility also includes certain financial covenants (as defined in the agreement) that require, among other things, the maintenance of an unencumbered interest coverage ratio of at least 1.75, a fixed charge coverage ratio of at least 1.30, a leverage ratio of no more than 55%, unsecured debt ratio restrictions, and a minimum stockholders’ equity of $556 million plus 70% of net equity proceeds after the effective date. The Company is currently in compliance with its financial covenants.
     Interest Rate Swap Agreements
     In 2007, the Company entered into an interest rate swap agreement with a notional amount of $100 million in order to manage its interest rate risk under the Term Facility. The Company designated this swap as a cash flow hedge, and this swap effectively fixed the underlying LIBOR rate of the Term Facility at 5.01% through August 2012. As discussed above, the Company terminated this swap agreement in 2010.
     In 2008, the Company entered into two interest rate swap agreements with notional amounts of $75 million each in order to manage interest rate risk associated with floating-rate, LIBOR-based borrowings. The Company designated these swaps as cash flow hedges, and these swaps effectively fixed a portion of the underlying LIBOR rate on $150 million of Company borrowings at an average rate of 2.84%. In October 2009, the Company terminated one of its $75 million swaps and paid the counterparty to the agreement $1.8 million, which was recognized as an expense in 2009. In addition, the Company reduced the notional amount of the second interest rate swap from $75 million to $40 million, and paid the counterparty $959,000, and recognized this amount as an expense in 2009. This reduced swap expired in October 2010. In 2010, 2009 and 2008, there

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was no ineffectiveness under any of the Company’s interest rate swaps. The fair value calculation for the swaps is deemed to be a Level 2 calculation under the guidelines as set forth in ASC 820, as the Company estimated future LIBOR rates on similar instruments to calculate fair value.
     The fair values of the interest rate swap agreements were recorded in Accounts Payable and Accumulated Other Comprehensive Loss on the Consolidated Balance Sheets, detailed as follows (in thousands):
                         
            Floating Rate,        
            LIBOR-based        
    Term Facility     Borrowings     Total  
Balance, December 31, 2008
  $ 11,869     $ 4,732     $ 16,601  
Termination of swaps
          (2,766 )     (2,766 )
Change in fair value
    (3,207 )     (1,111 )     (4,318 )
 
                 
Balance, December 31, 2009
    8,662       855       9,517  
Termination of swap
    (9,235 )           (9,235 )
Change in fair value
    573       (855 )     (282 )
 
                 
Balance, December 31, 2010
  $     $     $  
 
                 
     Other Debt Information
     The real estate and other assets of the ACS Center are restricted under the ACS Center loan agreement in that they are not available to settle debts of the Company. However, provided that the ACS Center loan has not incurred any uncured event of default, as defined in the loan agreement, the cash flows from the ACS Center, after payments of debt service, operating expenses and reserves, are available for distribution to the Company.
     In July 2010, the Company repaid the previous Meridian Mark Plaza mortgage note in full and entered into a new $27.0 million mortgage note payable secured by Meridian Mark Plaza. The new note has a fixed interest rate of 6%, requires principal and interest payments based on a 30-year amortization, and has a maturity date of August 1, 2020. In December 2010, the Company amended its Terminus 100 mortgage note. The Company paid $40.0 million of principal, reducing the note to $140.0 million outstanding. The interest rate on the note was adjusted to a fixed rate of 5.25%, principal and interest payments are based on a 30-year amortization, and the note matures January 1, 2023.
     In 2010, the Company changed its interest in the Terminus 200 building by bringing in a new partner who contributed capital, reducing the Company’s ownership from 50% to 20% and modifying and extending the loan. The Company also modified the CF Murfreesboro Associates loan, scheduled to mature in July 2010, to, among other things, extend the maturity date to July 2013. Furthermore, in 2010, the Company formed Cousins Watkins LLC. This venture has loan agreements with a borrowing capacity of up to $33.5 million, with $28.9 million outstanding at December 31, 2010. The loans bear interest at LIBOR plus a spread ranging from 2.65% to 2.85%, and mature January 1, 2016.
     Future Capital Requirements
     The Company expects sales of assets, amounts available under the Credit Facility and its cash on hand to be the primary funding sources for current contractual obligations and commitments. The Company may also obtain long-term mortgage debt on some of its unencumbered assets, to the extent available and with acceptable terms, to help fund its commitments.
     Over the long term, management intends to actively manage its portfolio of income producing properties and strategically sell assets or form joint ventures to capture value for stockholders and to recycle capital for future investment activities. The Company expects to continue to utilize indebtedness to fund future commitments and expects to place long-term mortgages on selected assets as well as utilize construction facilities for any development assets. Management will continue to evaluate all public equity sources and select the most appropriate options as capital is required.
     The Company may generate capital through the issuance of securities that include common or preferred stock, warrants, debt securities or depositary shares. In March 2010, the Company filed a shelf registration statement to allow for the issuance of up to $500 million of such securities, of which $482 million remains to be drawn as of December 31, 2010.

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     The Company’s business model is dependent upon raising or recycling capital to meet obligations. If one or more sources of capital are not available when required, the Company may be forced to reduce the number of projects it acquires or develops and/or raise capital on potentially unfavorable terms, or may be unable to raise capital, which could have an adverse effect on the Company’s financial position or results of operations.
     Additional Financial Condition Information
     The Company’s mortgage debt is primarily non-recourse fixed-rate mortgage notes secured by various real estate assets. Many of the Company’s non-recourse mortgages contain covenants which, if not satisfied, could result in acceleration of the maturity of the debt. The Company expects that it will either refinance the non-recourse mortgages at maturity or repay the mortgages with proceeds from other financings. As of December 31, 2010, the weighted average interest rate on the Company’s consolidated debt was 5.18%, and the Company’s consolidated debt to total market capitalization ratio was 33.1%.
Cash Flows.
     The reasons for significant increases and decreases in cash flows between the years are as follows:
     Cash Flows from Operating Activities. Cash flows from operating activities increased approximately $36.5 million between 2010 and 2009 due to the following:
    Increase of $3.6 million in net proceeds from multi-family residential unit sales due to an increase in the number of units sold;
 
    Increase of $8.5 million in net proceeds from residential lot and outparcel sales, mainly due to an increase in the number of outparcels sold in 2010;
 
    Increase of $2.3 million related to the receipt of $3.4 million in income tax refunds in 2010 compared to $1.1 million received in 2009;
 
    Decrease in cash paid for interest of $8.3 million due to a decrease in average borrowings and average interest rates between 2010 and 2009;
 
    Decrease of $4.0 million in residential lot, outparcel and for-sale multi-family acquisition and development expenditures due to a decrease in development activities;
 
    Decrease of approximately $4.8 million in separation costs, salaries, and related taxes and benefits, excluding stock-based compensation, due to the decrease in number of employees from 2009 to 2010;
 
    Decrease of approximately $1.9 million in amounts contributed to the Company’s retirement savings plan. Offsetting this decrease was an increase in bonuses paid during 2010. The Company paid no bonuses during 2009, and paid approximately $2.8 million of bonuses during 2010;
 
    Operating distributions from joint ventures increased approximately $4.2 million primarily as a result of the Company’s share of the proceeds from the sale of land at CL Realty;
 
    Increase in operating cash flow from the Company’s rental properties, primarily due to increased occupancy. See the Results of Operations section for additional information; and
 
    Decrease of $6.4 million related to the payment of a $9.2 million fee for an interest rate swap termination in 2010 compared to $2.8 million paid in 2009, which offset the increase in cash flows from operating activities.
Cash provided by operating activities increased $2.6 million between 2009 and 2008 due to the following:
    Decrease in expenditures on residential and for-sale multi-family development projects of $44.9 million, primarily due to the substantial completion of the Company’s 10 Terminus multi-family project and to a decrease in development activity on the Company’s residential lot developments;
 
    Increase in proceeds from the sale of multi-family units of $16.7 million due to increased number of unit sales;
 
    Decrease of $7.0 million related to income tax refunds received;

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    Decrease in fee income of $13.9 million, due to a nonrecurring development fee of $13.5 million received in 2008;
 
    Increase in interest paid of $8.2 million due to higher average debt borrowings during 2009; and
 
    Decrease in operating distributions from unconsolidated joint ventures of $16.5 million primarily due to the 2008 operating distributions from TRG from the closing of substantially all of its remaining for-sale multi-family residential units, compared to no significant distributions received in 2009.
Cash Flows from Investing Activities. Net cash from investing activities increased approximately $72.2 million between 2010 and 2009 due to the following:
    Increase in proceeds from property sales of approximately $90.0 million in 2010 primarily from the sales of San Jose MarketCenter and 8995 Westside Parkway, and an increase in land sales between 2010 and 2009;
 
    Decrease in property acquisition and development expenditures of $20.1 million, as the Company currently does not have any significant projects under development;
 
    Increase in investment in joint ventures of approximately $21.0 million between 2010 and 2009. In 2010, the Company contributed approximately $14.9 million to form the Cousins Watkins LLC joint venture. Also in 2010, the Company contributed approximately $4.0 million to the CP Venture IV entities to pay its share of the maturing mortgage note payable and contributed approximately $3.2 million to the MSREF/T200 venture;
 
    Increase in distributions from joint ventures of approximately $11.2 million primarily as a result of the Company’s share of the proceeds from the sale of land at CL Realty;
 
    Decrease of $17.25 million in 2010 from the payment of a debt guarantee due to the restructuring of the Company’s Terminus 200 LLC joint venture; and
 
    Increase in restricted cash of $12.5 million, mainly related to required reserves for tenant improvements that will be due for a lease signed at the ACS Center. Amounts are required to be set aside for this under the ACS Center loan.
Net cash used in investing activities decreased $88.4 million between 2009 and 2008 due to the following:
    Decrease of $105.3 million in property acquisition and development expenditures resulting from a decline in development activity between the years;
 
    Decrease in investments in unconsolidated joint ventures of $19.4 million between the periods, mainly due to lower contributions to the Palisades West LLC joint venture, which constructed two office buildings that were substantially completed in the fourth quarter of 2008. Partially offsetting this decrease in cash used was a decrease in distributions received from unconsolidated joint ventures of $12.8 million. In 2008, TRG had significant capital distributions from the closing of substantially all of its remaining for-sale multi-family residential units, compared to no significant distributions received in 2009;
 
    Decrease in cash used to purchase other assets of $9.9 million as the Company acquired an airplane and had higher predevelopment expenditures in 2008; and
 
    Decrease in proceeds from investment property sales. The Company had more activity in its land tract sales in 2008 as compared to 2009.
Cash Flows from Financing Activities. Net cash used in financing activities increased approximately $37.1 million between 2010 and 2009 due to the following:
    Decrease in common stock issued, net of expenses, of $318.5 million due to the issuance of 46 million shares in 2009;
 
    Increase in net borrowings under the Credit and Term Facilities of $236.4 million between 2010 and 2009. In 2009, the Company repaid $248 million under these facilities with proceeds from the September 2009 stock issuance. Also in 2009, the Company had net borrowings of $87.0 million to

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      fund development and to repay the San Jose MarketCenter mortgage note. In 2010, the Company repaid the $100 million Term Facility mainly using the proceeds from the sale of San Jose MarketCenter, offset by additional borrowings to pay the $9.2 million fee on the interest rate swap termination and the $17.25 million payment of the Terminus 200 LLC debt guarantee;
 
    Decrease in the repayment of notes payable of $2.7 million in 2010. In 2010, the Company repaid the mortgage note at Meridian Mark Plaza for $22.0 million, the $8.7 million Glenmore note in conjunction with the sale of that property, and paid $40.0 million in conjunction with the refinancing of the Terminus 100 note. In 2009, the Company repaid the San Jose MarketCenter note for $70.3 million and the Brownstones at Habersham note for $3.2 million;
 
    Increase in proceeds from other notes payable of $27.0 million due to the issuance of a new mortgage note at Meridian Mark Plaza;
 
    Increase in payments of loan issuance costs of $2.0 million in the 2010 period due to the payment of an administrative fee of approximately $1.7 million related to the amendment of the Company’s Credit Facility and loan issuance costs related to the new Meridian Mark Plaza note;
 
    Decrease in cash common dividends paid of $10.5 million due partially to a reduction in the quarterly dividend per share to $0.09 for 2010 compared to $0.25 per share for the first and second quarters of 2009 and $0.15 per share for the third quarter of 2009. Additionally, the Company paid its dividends in cash in the first quarter of 2009, while each quarter since then through 2010 has been paid in a combination of cash and stock; and
 
    Decrease in distributions to noncontrolling interests of $4.5 million from 2009 to 2010 primarily due to a distribution of $4.6 million in the 2009 period to the partner in the Company’s CP Venture Six joint venture.
          Cash used in financing activities was $71.3 million or $229.6 million higher than 2008, due to the following:
    Increase in repayments of the Company’s Credit Facility, net of borrowings, by $529.4 million due to a decrease in funds needed for development projects and to the repayment of a large portion of the amount outstanding on the Credit Facility using proceeds from the September 2009 common stock issuance;
 
    Increase in repayments of other notes payable by $65.1 million, primarily due to the 2009 repayment of the San Jose MarketCenter note for $70.3 million and The Brownstones at Habersham note for $3.2 million. In 2008, the Company repaid the previous Lakeshore mortgage note payable of $8.7 million;
 
    Decrease in proceeds from other notes payable of $18.4 million from the refinancing of the Lakeshore mortgage note payable with no loan proceeds received in 2009;
 
    Decrease in common dividends paid by approximately $47.1 million. The dividend per share decreased from $1.36 per share in 2008 to $0.74 per share in 2009. In addition, the Company paid a portion of the second, third and fourth quarter 2009 common dividends with stock;
 
    Common stock issued, net of expenses, increased $317.3 million between the periods due to the issuance of 46 million shares in the third quarter 2009, which generated approximately $318 million in proceeds; and
 
    Increase of $15.8 million due to purchases of preferred stock in 2008, with no preferred stock repurchases in 2009.
     Dividends. The Company paid cash common and preferred dividends of $25.1 million, $35.6 million, and $85.1 million in 2010, 2009 and 2008, respectively, which it funded with cash provided by operating activities and proceeds from investment property sales. All of the 2010 common stock dividends and the June, September and December 2009 common stock dividends were paid in a combination of cash and common stock. The value of the common dividends paid in stock totaled $24.3 million and $19.7 million in 2010 and 2009, respectively. The Company currently intends to pay future dividends in cash. The Company expects to fund its quarterly distributions to common and preferred stockholders with cash provided by operating

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activities, proceeds from investment property sales, distributions from unconsolidated joint ventures, and indebtedness, if necessary.
     The Company reviews, on a quarterly basis, the amount of the common dividend in light of current and projected future cash flows from the sources noted above and also considers the requirements needed to maintain its REIT status. In addition, the Company has certain covenants under its Credit Facility which could limit the amount of dividends paid. In general, dividends of any amount can be paid as long as leverage, as defined in the facility, is less than 55% and the Company is not in default under its facility. Certain conditions also apply in which the Company can still pay dividends if leverage is above that amount. The Company routinely monitors the status of its dividend payments in light of the Credit Facility covenants.
     Effects of Inflation.
     The Company attempts to minimize the effects of inflation on income from operating properties by providing periodic fixed-rent increases or increases based on the Consumer Price Index and/or pass-through of certain operating expenses of properties to tenants or, in certain circumstances, rents tied to tenants’ sales.
     Off Balance Sheet Arrangements.
     The Company has a number of off balance sheet joint ventures with varying structures, as described in Note 4 of Notes of Consolidated Financial Statements. At December 31, 2010, the Company’s unconsolidated joint ventures had aggregate outstanding indebtedness to third parties of approximately $394.0 million. These loans are generally mortgage or construction loans most of which are non-recourse to the Company, although in certain instances, the Company provides “non-recourse carve-out guarantees” on these non-recourse loans. Certain of these loans have variable interest rates, which creates exposure to the ventures in the form of market risk to interest rate changes.
     At December 31, 2010, approximately $35.4 million of the loans at unconsolidated joint ventures were recourse to the Company. CF Murfreesboro Associates (“CF Murfreesboro”) constructed and owns a retail center, and the Company is a 50% partner. CF Murfreesboro has a $113.2 million construction loan that matures on July 20, 2013, of which approximately $103.4 million was drawn at December 31, 2010. The Company has a $26.2 million repayment guarantee on the loan, and the Company recognized the fair value of the guarantee at inception of $262,000, which amount has not changed. The second joint venture with debt guarantees is the Cousins Watkins LLC joint venture, which owns four retail shopping centers. The Company guaranteed 25% of two loans, which have a total balance available of $16.3 million, 25% of which is approximately $4.1 million. The Company assessed the fair value of the guarantees as $40,750. The guarantees will be released if certain metrics at the centers are achieved. At December 31, 2010, the Company guaranteed $2.9 million of the two Cousins Watkins’ venture loans, as the total available had not been drawn. In addition, the Company guaranteed 100% of another Cousins Watkins loan, which had an outstanding balance of $6.3 million at December 31, 2010. The Company’s partner in the venture funded the estimated fair value of the guarantee of $65,000 to the Company. The Company anticipates it will be released from this guarantee in early 2011, upon the Company’s partner obtaining an environmental study and either remediating conditions or funding a prescribed escrow amount with the lender.
     The unconsolidated joint ventures also had performance bonds of $1.2 million at December 31, 2010, which the Company guarantees through an indemnity agreement with the bond issuer. These performance bonds relate to construction projects at the retail center owned by CF Murfreesboro and the Company’s residential real estate ventures.
     Most of the joint ventures in which the Company has an interest are involved in the ownership, acquisition and/or development of real estate. The venture will fund capital requirements or operational needs, if possible, with cash from operations or financing proceeds. If additional capital is deemed necessary, the venture may request a contribution from the partners, and the Company will evaluate such request. Based on the nature of the activities conducted in these ventures, management cannot estimate with any degree of accuracy amounts that the Company may be required to fund in the short or long-term. However, management does not believe that additional funding of these ventures will have a material adverse effect on its financial condition or results of operations.

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Item 7A. Quantitative and Qualitative Disclosure about Market Risk
     The Company’s primary exposure to market risk results from its debt, which bears interest at both fixed and variable rates. The Company mitigates this risk by limiting its debt exposure in total and its maturities in any one year and focusing on fixed-rate, non-recourse debt compared to variable-rate debt in its portfolio. The fixed rate debt obligations limit the risk of fluctuating interest rates, and generally are mortgage loans secured by certain of the Company’s real estate assets. The Company does not have a significant level of consolidated fixed-rate mortgage debt maturing in 2011, and therefore does not have high exposure for the refinancing of its mortgage debt in the near term. At December 31, 2010, the Company had $400.7 million of fixed rate debt outstanding at a weighted average interest rate of 5.94%.
     The Company has a variable rate facility and one loan with a variable rate, Handy Road. Periodically, the Company uses derivative instruments, such as interest rate swaps, to mitigate its exposure to interest rate changes. There are no derivative instruments outstanding as of December 31, 2010. The Company has total variable rate debt of $108.8 million as of December 31, 2010, $105.4 million of which is represented by the Company’s Credit Facility, which bears interest at LIBOR plus a spread. Based on the Company’s average variable rate debt balances in 2010, excluding the portion that was fixed under interest rate swap agreements, interest expense would have increased by approximately $477,000 in 2010 if these interest rates had been 1% higher.
     The following table summarizes the Company’s market risk associated with notes payable as of December 31, 2010. It includes the principal maturing, an estimate of the weighted average interest rates on those expected principal maturity dates and the fair values of the Company’s fixed and variable rate notes payable. Fair value was calculated by discounting future principal payments at estimated rates at which similar loans could have been obtained at December 31, 2010. The information presented below should be read in conjunction with Note 3 of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K. (The Company did not have a significant level of notes receivable at December 31, 2010, and the table does not include information related to notes receivable.)
                                                                 
($ in thousands)   2011     2012     2013     2014     2015     Thereafter     Total     Fair Value  
       
Notes Payable:
                                                               
Fixed Rate
  $ 42,388     $ 45,962     $ 4,777     $ 4,877     $ 5,168     $ 297,563     $ 400,735     $ 413,022  
Average Interest Rate
    6.99 %     5.61 %     5.70 %     5.76 %     5.76 %     5.85 %     5.94 %      
Variable Rate (1)
  $ 3,374     $ 105,400     $     $     $     $     $ 108,774     $ 108,774  
Average Interest Rate (2)
    6.00 %     2.26 %                             2.38 %      
 
(1)   Interest rates on variable rate notes payable are equal to the variable rates in effect on December 31, 2010.
 
(2)   Assumes the one-year option to extend the Credit Facility will be exercised.
Item 8. Financial Statements and Supplementary Data
     The Consolidated Financial Statements, Notes to Consolidated Financial Statements and Report of Independent Registered Public Accounting Firm are incorporated herein on pages F-1 through F-34.
     Certain components of quarterly net income (loss) available to common stockholders disclosed below differ from those as reported on the Company’s respective quarterly reports on Form 10-Q. As discussed in Notes 2 and 9 of Notes to Consolidated Financial Statements, gains and losses from the disposition of certain real estate assets and the related historical operating results were reclassified as Discontinued Operations for all applicable periods presented. Additionally, certain quarters during both 2010 and 2009 reflect the recording of impairment provisions. See Note 5 for further discussion. Furthermore, the first quarter of 2009 reflects the recognition of a deferred gain, which is further discussed in Note 8. In addition, in 2009 quarterly reports, the Company was presenting dividends paid in stock on a retroactive basis and changing prior period information as if the stock dividend component had been outstanding in shares as of the earliest period presented. The Company paid dividends partially with stock in the last three quarters of 2009.

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Beginning in December 2009, the Company reflected dividends paid in stock prospectively as a stock issuance, and all periods where the dividend was presented retroactively were adjusted to show prospective issuance.
     The following Selected Quarterly Financial Information (Unaudited) for the years ended December 31, 2010 and 2009 should be read in conjunction with the Consolidated Financial Statements and notes thereto included herein ($ in thousands, except per share amounts):
                                 
    Quarters  
    First     Second     Third     Fourth  
            (Unaudited)          
2010:
                               
Revenues
  $ 67,200     $ 52,612     $ 52,457     $ 56,237  
Income (loss) from unconsolidated joint ventures
    2,920       2,394       2,179       2,000  
Gain on sale of investment properties
    756       1,061       58       63  
Income (loss) from continuing operations
    944       (6,266 )     (11,057 )     (5,634 )
Discontinued operations
    1,236       1,482       6,597       665  
Net income (loss)
    2,180       (4,784 )     (4,460 )     (4,969 )
Net income (loss) attributable to controlling interest
    1,654       (5,368 )     (5,156 )     (5,703 )
Net income (loss) available to common stockholders
    (1,573 )     (8,595 )     (8,382 )     (8,930 )
Basic income (loss) from continuing operations attributable to controlling interest per common share
    (0.03 )     (0.10 )     (0.15 )     (0.09 )
Basic net income (loss) per common share
    (0.02 )     (0.09 )     (0.08 )     (0.09 )
Diluted income (loss) from continuing operations attributable to controlling interest per common share
    (0.03 )     (0.10 )     (0.15 )     (0.09 )
Diluted net income (loss) per common share
    (0.02 )     (0.09 )     (0.08 )     (0.09 )
                                 
    Quarters  
    First     Second     Third     Fourth  
            (Unaudited)          
2009:
                               
Revenues
  $ 46,289     $ 48,393     $ 56,768     $ 63,094  
Income (loss) from unconsolidated joint ventures,
                               
including impairments
    1,820       (29,361 )     (42,854 )     1,698  
Gain on sale of investment properties
    167,434       801       406       (4 )
Income (loss) from continuing operations
    164,216       (90,894 )     (54,377 )     (5,206 )
Discontinued operations
    (6 )     13,506       1,048       1,260  
Net income (loss)
    164,210       (77,388 )     (53,329 )     (3,946 )
Net income (loss) attributable to controlling interest
    163,798       (78,086 )     (53,860 )     (4,557 )
Net income (loss) available to common stockholders
    160,571       (81,313 )     (57,088 )     (7,782 )
Basic income (loss) from continuing operations attributable to controlling interest per common share
    3.13       (1.84 )     (0.98 )     (0.09 )
Basic net income (loss) per common share
    3.13       (1.58 )     (0.96 )     (0.08 )
Diluted income (loss) from continuing operations attributable to controlling interest per common share
    3.13       (1.84 )     (0.98 )     (0.09 )
Diluted net income (loss) per common share
    3.13       (1.58 )     (0.96 )     (0.08 )
 
Note:   The above per share quarterly information may not sum to full year per share information due to rounding, and, in 2009, per share information for the quarter may not add up to the annual earnings per share due to the issuance of additional common stock during that year. Other financial statements and financial statement schedules required under Regulation S-X are filed pursuant to Item 15 of Part IV of this report.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
     Not applicable.
Item 9A. Controls and Procedures
     We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which, by their nature, can provide only reasonable assurance regarding management’s control objectives. We also have investments in certain unconsolidated entities. As we do not always control or manage these entities, our disclosure controls and procedures with respect to such entities are necessarily more limited than those we maintain with respect to our consolidated subsidiaries.
     As of the end of the period covered by this annual report, we carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer along with the Chief Financial Officer, of the effectiveness, design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon the foregoing, the Chief Executive Officer along with the Chief Financial Officer concluded that our disclosure controls and procedures were effective. In addition, based on such evaluation we have identified no changes in our internal control over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Report of Management on Internal Control Over Financial Reporting
     Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.
     Management, under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2010. The framework on which the assessment was based is described in “Internal Control — Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, we concluded that we maintained effective internal control over financial reporting as of December 31, 2010. Deloitte & Touche, our independent registered public accounting firm, issued an opinion on the effectiveness of our internal control over financial reporting as of December 31, 2010, which follows this report of management.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Cousins Properties Incorporated:
     We have audited the internal control over financial reporting of Cousins Properties Incorporated and subsidiaries (the “Company”) as of December 31, 2010, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Report of Management on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
     We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
     A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
     Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
     In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
     We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and the financial statement schedule as of and for the year ended December 31, 2010 of the Company and our report dated February 28, 2011 expressed an unqualified opinion on those consolidated financial statements and financial statement schedule.
         
   
/s/ DELOITTE & TOUCHE LLP    
   
Atlanta, Georgia   
February 28, 2011 
Item 9B. Other Information
     None.

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PART III
Item 10. Directors, Executive Officers and Corporate Governance
     The information required by Items 401 and 405 of Regulation S-K is presented in Item X in Part I above and is included under the captions “Election of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement relating to the 2011 Annual Meeting of the Registrant’s Stockholders, and is incorporated herein by reference. The Company has a Code of Business Conduct and Ethics (the “Code”) applicable to its Board of Directors and all of its employees. The Code is publicly available on the “Investor Relations” page of its website site at www.cousinsproperties.com. Section 1 of the Code applies to the Company’s senior executive and financial officers and is a “code of ethics” as defined by applicable SEC rules and regulations. If the Company makes any amendments to the Code other than technical, administrative or other non-substantive amendments, or grants any waivers, including implicit waivers, from a provision of the Code to the Company’s senior executive or financial officers, the Company will disclose on its website the nature of the amendment or waiver, its effective date and to whom it applies. There were no amendments or waivers during 2010.
Item 11. Executive Compensation
     The information under the captions “Executive Compensation” (other than the Committee Report on Compensation) and “Director Compensation” in the Proxy Statement relating to the 2011 Annual Meeting of the Registrant’s Stockholders is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
     The information under the captions “Beneficial Ownership of Common Stock” and “Equity Compensation Plan Information” in the Proxy Statement relating to the 2011 Annual Meeting of the Registrant’s Stockholders is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions, and Director Independence
     The information under the caption “Certain Transactions” and “Director Independence” in the Proxy Statement relating to the 2011 Annual Meeting of the Registrant’s Stockholders is incorporated herein by reference.
Item 14. Principal Accountant Fees and Services
     The information under the caption “Summary of Fees to Independent Registered Public Accounting Firm” in the Proxy Statement relating to the 2011 Annual Meeting of the Registrant’s Stockholders has fee information for fiscal years 2010 and 2009 and is incorporated herein by reference.

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PART IV
Item 15. Exhibits and Financial Statement Schedules
(a)  1.   Financial Statements
  A.   The following Consolidated Financial Statements of the Registrant, together with the applicable Report of Independent Registered Public Accounting Firm, are filed as a part of this report:
     
    Page Number
  F-2
  F-3
  F-4
  F-5
  F-6
  F-7
  2.   Financial Statement Schedule
 
      The following financial statement schedule for the Registrant is filed as a part of this report:
     
    Page Numbers
A.       Schedule III — Real Estate and Accumulated Depreciation — December 31, 2010
  S-1 through S-5
      NOTE: Other schedules are omitted because of the absence of conditions under which they are required or because the required information is given in the financial statements or notes thereto.
(b)    Exhibits
  3.1   Restated and Amended Articles of Incorporation of the Registrant, as amended August 9, 1999, filed as Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2002, and incorporated herein by reference.
 
  3.1.1   Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended July 22, 2003, filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on July 23, 2003, and incorporated herein by reference.
 
  3.1.2   Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, as amended December 15, 2004, filed as Exhibit 3(a)(i) to the Registrant’s Form 10-K for the year ended December 31, 2004, and incorporated herein by reference.
 
  3.1.3   Articles of Amendment to Restated and Amended Articles of Incorporation of the Registrant, dated May 4, 2010, filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 10, 2010 and incorporated herein by reference.
 
  3.2   Bylaws of the Registrant, as amended and restated June 6, 2009, filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on June 8, 2009, and incorporated herein by reference.
 
  4(a)    Dividend Reinvestment Plan as restated as of March 27, 1995, filed in the Registrant’s Form S-3 dated March 27, 1995, and incorporated herein by reference.
 
  10(a)(i)*   Cousins Properties Incorporated 1989 Stock Option Plan, renamed the 1995 Stock Incentive Plan and approved by the Stockholders on May 6, 1996, filed as Exhibit 4.1 to the Registrant’s Form S-8 dated December 1, 2004, and incorporated herein by reference.
 
  10(a)(ii)*   Cousins Properties Incorporated 1999 Incentive Stock Plan, as amended and restated, approved by the Stockholders on May 6, 2008, filed as Annex B to the Registrant’s Proxy Statement dated April 13, 2008, and incorporated herein by reference.

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  10(a)(iii)*   Cousins Properties Incorporated 2005 Restricted Stock Unit Plan, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated December 9, 2005, and incorporated herein by reference.
 
  10(a)(iv)*   Amendment No. 1 to Cousins Properties Incorporated 2005 Restricted Stock Unit Plan, filed as Exhibit 10(a)(iii) to the Registrant’s Form 10-Q for the quarter ended March 31, 2006, and incorporated herein by reference.
 
  10(a)(v)*   Form of Restricted Stock Unit Certificate (with Performance Criteria), filed as Exhibit 10(a)(iv) to the Registrant’s Form 10-Q for the quarter ended March 31, 2006, and incorporated herein by reference.
 
  10(a)(vi)*   Cousins Properties Incorporated 1999 Incentive Stock Plan — Form of Key Employee Non-Incentive Stock Option and Stock Appreciation Right Certificate, amended effective December 6, 2007, filed as Exhibit 10(a)(vi) to the Registrant’s Form 10-K for the year ended December 31, 2007 and incorporated herein by reference.
 
  10(a)(vii)*   Cousins Properties Incorporated 1999 Incentive Stock Plan — Form of Key Employee Incentive Stock Option and Stock Appreciation Right Certificate, amended effective December 6, 2007, filed as Exhibit 10(a)(vii) to the Registrant’s Form 10-K for the year ended December 31, 2007 and incorporated herein by reference.
 
  10(a)(viii)*   Cousins Properties Incorporated 2005 Restricted Stock Unit Plan — Form of Restricted Stock Unit Certificate, filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated December 11, 2006, and incorporated herein by reference.
 
  10(a)(ix)*   Amendment No. 2 to the Cousins Properties Incorporated 2005 Restricted Stock Unit Plan, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 18, 2006, and incorporated herein by reference.
 
  10(a)(x)*   Cousins Properties Incorporated 2005 Restricted Stock Unit Plan — Form of Restricted Stock Unit Certificate for Directors, filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on August 18, 2006, and incorporated herein by reference.
 
  10(a)(xi)*   Form of Change in Control Severance Agreement, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 31, 2007, and incorporated herein by reference.
 
  10(a)(xii)*   Amendment No. 1 to the Cousins Properties Incorporated 1999 Incentive Stock Plan, filed as Exhibit 10(a)(ii) to the Registrant’s Form 10-Q for the quarter ended March 31, 2008, and incorporated herein by reference.
 
  10(a)(xiii)*   Amendment No. 4 to the Cousins Properties Incorporated 2005 Restricted Stock Unit Plan dated September 8, 2008, filed as Exhibit 10(a)(xiii) to the Registrant’s Form 10-K for the year ended December 31, 2008 and incorporated herein by reference.
 
  10(a)(xiv)*   Amendment No. 5 to the Cousins Properties Incorporated 2005 Restricted Stock Unit Plan dated February 16, 2009, filed as Exhibit 10(a)(xiv) to the Registrant’s Form 10-K for the year ended December 31, 2008 and incorporated herein by reference.
 
  10(a)(xv)*   Form of Amendment Number One to Change in Control Severance Agreement filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K dated May 12, 2009, and incorporated herein by reference.
 
  10(a)(xvi)*   Amendment Number 6 to the Cousins Properties Incorporated 2005 Restricted Stock Unit Plan filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated May 12, 2009, and incorporated herein by reference.

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  10(a)(xvii)*   Form of Cousins Properties Incorporated Cash Long Term Incentive Award Certificate filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K dated May 12, 2009, and incorporated herein by reference.
 
  10(a)(xviii)*   Cousins Properties Incorporated 2009 Incentive Stock Plan, as approved by the Stockholders on May 12, 2009, filed as Annex B to the Registrant’s Proxy Statement dated April 3, 2009, and incorporated herein by reference.
 
  10(a)(xix)*   Cousins Properties Incorporated Director Non-Incentive Stock Option and Stock Appreciation Right Certificate under the Cousins Properties Incorporated 2009 Incentive Stock Plan, filed as Exhibit 10.2 to the Registrant’s Form 10-Q for the quarter ended June 30, 2009, and incorporated herein by reference.
 
  10(a)(xx)*   Cousins Properties Incorporated 2005 Restricted Stock Unit Plan — Form of Restricted Stock Unit Certificate for 2010-2012 Performance Period filed as Exhibit 10(a)(xx) to the Registrant’s Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.
 
  10(a)(xxi)*   Cousins Properties Incorporated 2009 Incentive Stock Plan — Form of Key Employee Non-Incentive Stock Option Certificate filed as Exhibit 10(a)(xxi) to the Registrant’s Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.
 
  10(a)(xxii)*   Cousins Properties Incorporated 2009 Incentive Stock Plan — Form of Stock Grant Certificate filed as Exhibit 10(a)(xxii) to the Registrant’s Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.
 
  10(a)(xxiii)*   Form of New Change in Control Severance Agreement, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on January 7, 2011 and incorporated herein by reference.
 
  10(a)(xxiv)*   Form of Amendment Number Two to Change in Control Severance Agreement, filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on January 7, 2011 and incorporated herein by reference.
 
  10(a)(xxv)*†   Cousins Properties Incorporated 2009 Incentive Stock Plan — Form of Stock Grant Certificate.
 
  10(a)(xxvi)*†   Cousins Properties Incorporated 2009 Incentive Stock Plan — Form of Key Employee Non-Incentive Stock Option Certificate.
 
  10(a)(xxvii)*†   Cousins Properties Incorporated 2009 Incentive Stock Plan — Form of Key Employee Incentive Stock Option Certificate.
 
  10(a)(xxviii)* †   Cousins Properties Incorporated 2005 Restricted Stock Unit Plan — Form of Restricted Stock Unit Certificate for 2011-2013 Performance Period.
 
  10(b)*   Consulting Agreement with Joel Murphy, dated as of December 5, 2008, including the Amendment Number One to the Form of Restricted Stock Unit Certificate (with Performance Criteria), filed as Exhibit 10(b) to the Registrant’s Form 10-K for the year ended December 31, 2008, and incorporated herein by reference.
 
  10(c)*   Retirement Agreement and General Release by and among Thomas D. Bell, Jr. and Cousins Properties Incorporated dated June 7, 2009, filed as Exhibit 10.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2009, and incorporated herein by reference.
 
  10(d)*   Retirement and Consulting Agreement and General Release with James A. Fleming dated August 9, 2010, filed as Exhibit 10.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2010 and incorporated herein by reference.
 
  10(e)   Amended and Restated Credit Agreement, dated as of August 29, 2007, among Cousins Properties Incorporated as the Principal Borrower (and the Borrower Parties, as defined, and the Guarantors, as defined); Bank of America, N.A., as Administrative Agent, Swing Line

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      Lender and L/C Issuer; Banc of America Securities LLC as Sole Lead Arranger and Sole Book Manager; Eurohypo AG, as Syndication Agent; PNC Bank, N. A., Wachovia Bank, N. A., and Wells Fargo Bank, as Documentation Agents; Norddeutsche Landesbank Girozentrale, as Managing Agent; Aareal Bank AG, Charter One Bank, N.A., and Regions Bank, as Co-Agents; and the Other Lenders Party Hereto, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 30, 2007, and incorporated herein by reference.
 
  10(f)   Loan Agreement dated as of August 31, 2007, between Cousins Properties Incorporated, a Georgia corporation, as Borrower and JP Morgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as Lender, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on September 7, 2007, and incorporated herein by reference.
 
  10(g)   Loan Agreement dated as of October 16, 2007, between 3280 Peachtree I LLC, a Georgia limited liability corporation, as Borrower and The Northwestern Mutual Life Insurance Company, as Lender, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed October 17, 2007, and incorporated herein by reference.
 
  10(h)   Contribution and Formation Agreement between Cousins Properties Incorporated, CP Venture Three LLC and The Prudential Insurance Company of America, including Exhibit U thereto, filed as Exhibit 10.1 to the Registrant’s Form 8-K filed on May 4, 2006, and incorporated herein by reference.
 
  10(i)   Form of Indemnification Agreement, filed as Exhibit 10.1 to the Registrant’s Form 8-K dated June 18, 2007, and incorporated herein by reference.
 
  10(j)   Underwriting Agreement dated September 15, 2009 by and among Cousins Properties Incorporated, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. Incorporated and J.P. Morgan Securities Inc., as representatives of the several underwriters, filed as Exhibit 1.1 to the Registrant’s Current Report on Form 8-K filed on September 17, 2009, and incorporated herein by reference.
 
  10(k)   First Amendment dated as of February 19, 2010 to the Amended and Restated Credit Agreement dated August 29, 2007, among Cousins Properties Incorporated as the Principal Borrower (and the Co-Borrowers, as defined, and the Guarantors, as defined); Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer; Banc of America Securities LLC, as Sole Lead Arranger and Sole Book Manager; Eurohypo AG, New York Branch, as Syndication Agent; PNC Bank, N. A., Wachovia Bank, N. A., and Wells Fargo Bank, N. A., as Documentation Agents; Norddeutsche Landesbank Girozentrale, as Managing Agent; and Aareal Bank AG, Charter One BANK, N.A. and Regions Bank, as Co-Agents, filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on February 25, 2010, and incorporated herein by reference.
 
  11   Computation of Per Share Earnings. Data required by SFAS No. 128, “Earnings Per Share,” is provided in Note 2 of Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K and incorporated herein by reference.
 
  12†   Statement Regarding Computation of Earnings to Combined Fixed Charges and Preferred Dividends.
 
  21†   Subsidiaries of the Registrant.
 
  23†   Consent of Independent Registered Public Accounting Firm.
 
  31.1†   Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
 
  31.2†   Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

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  32.1†   Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
  32.2†   Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
*   Indicates a management contract or compensatory plan or arrangement.
 
  Filed herewith.

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SIGNATURES
     Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  Cousins Properties Incorporated
(Registrant)
 
 
Dated: February 28, 2011  BY:   /s/ Gregg D. Adzema    
    Gregg D. Adzema   
    Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)   
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.
         
Signature   Capacity   Date
 
       
/s/ Lawrence L. Gellerstedt, III
 
Lawrence L. Gellerstedt, III
  Chief Executive Officer, President and Director 
(Principal Executive Officer)
  February 28, 2011
 
       
/s/ Gregg D.Adzema
 
Gregg D. Adzema
  Executive Vice President and Chief Financial Officer 
(Principal Financial Officer)
  February 28, 2011
 
       
/s/ John D. Harris, Jr.
 
John D. Harris, Jr.
  Senior Vice President, Chief Accounting
Officer and Assistant Secretary 
(Principal Accounting Officer)
  February 28, 2011
 
       
/s/ Erskine B. Bowles
 
Erskine B. Bowles
  Director    February 28, 2011
 
       
/s/ Tom G. Charlesworth
 
Tom G. Charlesworth
  Director    February 28, 2011
 
       
/s/ James D. Edwards
 
James D. Edwards
  Director    February 28, 2011
 
       
/s/ Lillian C. Giornelli
 
Lillian C. Giornelli
  Director    February 28, 2011
 
       
/s/ S. Taylor Glover
 
S. Taylor Glover
  Chairman of the Board of Directors    February 28, 2011
 
       
/s/ James H. Hance, Jr.
 
James H. Hance, Jr.
  Director    February 28, 2011
 
       
/s/ William B. Harrison, Jr.
 
William B. Harrison, Jr.
  Director    February 28, 2011
 
       
/s/ William Porter Payne
 
William Porter Payne
  Director    February 28, 2011

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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
         
Cousins Properties Incorporated   Page  
    F-2  
 
       
    F-3  
 
       
    F-4  
 
       
    F-5  
 
       
    F-6  
 
       
    F-7  

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
  Cousins Properties Incorporated:
     We have audited the accompanying consolidated balance sheets of Cousins Properties Incorporated and subsidiaries (the “Company”) as of December 31, 2010 and 2009, and the related consolidated statements of operations, equity, and cash flows for each of the three years in the period ended December 31, 2010. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits.
     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
     In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Cousins Properties Incorporated and subsidiaries as of December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2010, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.
     We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2010, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2011 expressed an unqualified opinion on the Company’s internal control over financial reporting.
/s/ DELOITTE & TOUCHE LLP
Atlanta, Georgia
February 28, 2011

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COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)
                 
    December 31,  
    2010     2009  
ASSETS
               
PROPERTIES:
               
Operating properties, net of accumulated depreciation of $274,925 and $233,091 in 2010 and 2009, respectively
  $ 898,119     $ 1,006,760  
Land held for investment or future development
    123,879       137,233  
Residential lots
    63,403       62,825  
Multi-family units held for sale
    2,994       28,504  
 
           
Total properties
    1,088,395       1,235,322  
 
               
CASH AND CASH EQUIVALENTS
    7,599       9,464  
RESTRICTED CASH
    15,521       3,585  
NOTES AND OTHER RECEIVABLES, net of allowance for doubtful accounts of $6,287 and $5,734 in 2010 and 2009, respectively
    48,395       49,678  
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
    167,108       146,150  
OTHER ASSETS
    44,264       47,353  
 
           
 
               
TOTAL ASSETS
  $ 1,371,282     $ 1,491,552  
 
           
 
               
LIABILITIES AND EQUITY
               
NOTES PAYABLE
  $ 509,509     $ 590,208  
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
    32,388       56,577  
DEFERRED GAIN
    4,216       4,452  
DEPOSITS AND DEFERRED INCOME
    18,029       7,465  
 
           
TOTAL LIABILITIES
    564,142       658,702  
 
               
COMMITMENTS AND CONTINGENT LIABILITIES
               
 
               
REDEEMABLE NONCONTROLLING INTERESTS
    14,289       12,591  
 
               
STOCKHOLDERS’ INVESTMENT:
               
Preferred stock, 20,000,000 shares authorized, $1 par value:
               
7.75% Series A cumulative redeemable preferred stock, $25 liquidation preference; 2,993,090 shares issued and outstanding in 2010 and 2009
    74,827       74,827  
7.50% Series B cumulative redeemable preferred stock, $25 liquidation preference; 3,791,000 shares issued and outstanding in 2010 and 2009
    94,775       94,775  
Common stock, $1 par value, 250,000,000 shares authorized, 106,961,959 and 103,352,382 shares issued in 2010 and 2009, respectively
    106,962       103,352  
Additional paid-in capital
    684,551       662,216  
Treasury stock at cost, 3,570,082 shares in 2010 and 2009
    (86,840 )     (86,840 )
Accumulated other comprehensive loss on derivative instruments
          (9,517 )
Distributions in excess of cumulative net income
    (114,196 )     (51,402 )
 
           
TOTAL STOCKHOLDERS’ INVESTMENT
    760,079       787,411  
Nonredeemable noncontrolling interests
    32,772       32,848  
 
           
TOTAL EQUITY
    792,851       820,259  
 
           
 
               
TOTAL LIABILITIES AND EQUITY
  $ 1,371,282     $ 1,491,552  
 
           
See notes to consolidated financial statements.

F-3


Table of Contents

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)
                         
    Years Ended December 31,  
    2010     2009     2008  
REVENUES:
                       
Rental property revenues
  $ 143,472     $ 139,504     $ 136,892  
Fee income
    33,420       33,806       47,662  
Multi-family residential unit sales
    34,442       30,841       8,444  
Residential lot and outparcel sales
    15,943       7,421       6,993  
Other
    1,229       2,972       4,149  
 
                 
 
    228,506       214,544       204,140  
 
                 
COSTS AND EXPENSES:
                       
Rental property operating expenses
    58,973       63,382       54,501  
Multi-family residential unit cost of sales
    27,017       25,629       7,330  
Residential lot and outparcel cost of sales
    10,699       5,023       3,776  
General and administrative expenses
    36,149       33,948       40,988  
Separation expenses
    1,045       3,257       1,186  
Reimbursed general and administrative expenses
    15,304       15,506       16,279  
Depreciation and amortization
    59,111       53,350       50,271  
Interest expense
    37,180       39,888       28,257  
Impairment loss
    2,554       40,512       2,100  
Other
    5,170       13,143       6,049  
 
                 
 
    253,202       293,638       210,737  
 
                 
LOSS ON EXTINGUISHMENT OF DEBT AND INTEREST RATE SWAPS
    (9,827 )     (2,766 )      
 
                 
 
                       
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES, UNCONSOLIDATED JOINT VENTURES AND SALE OF INVESTMENT PROPERTIES
    (34,523 )     (81,860 )     (6,597 )
 
                       
BENEFIT (PROVISION) FOR INCOME TAXES FROM OPERATIONS
    1,079       (4,341 )     8,770  
 
                       
INCOME (LOSS) FROM UNCONSOLIDATED JOINT VENTURES:
                       
Equity in net income (loss) from unconsolidated joint ventures
    9,493       (17,639 )     9,721  
Impairment loss on investment in unconsolidated joint ventures
          (51,058 )      
 
                 
 
    9,493       (68,697 )     9,721  
 
                 
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE GAIN ON SALE OF INVESTMENT PROPERTIES
    (23,951 )     (154,898 )     11,894  
 
                       
GAIN ON SALE OF INVESTMENT PROPERTIES
    1,938       168,637       10,799  
 
                 
INCOME (LOSS) FROM CONTINUING OPERATIONS
    (22,013 )     13,739       22,693  
 
                       
INCOME FROM DISCONTINUED OPERATIONS:
                       
Income (loss) from discontinued operations
    2,754       3,163       (240 )
Gain on extinguishment of debt
          12,498        
Gain on sale of real estate from discontinued operations
    7,226       147       2,472  
 
                 
 
    9,980       15,808       2,232  
 
                 
NET INCOME (LOSS)
    (12,033 )     29,547       24,925  
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
    (2,540 )     (2,252 )     (2,378 )
 
                 
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
    (14,573 )     27,295       22,547  
 
                       
DIVIDENDS TO PREFERRED STOCKHOLDERS
    (12,907 )     (12,907 )     (14,957 )
 
                 
 
                       
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS
  $ (27,480 )   $ 14,388     $ 7,590  
 
                 
 
                       
PER COMMON SHARE INFORMATION — BASIC AND DILUTED:
                       
Income (loss) from continuing operations attributable to controlling interest
  $ (0.37 )   $ (0.02 )   $ 0.10  
Income from discontinued operations
    0.10       0.24       0.04  
 
                 
Net income (loss) available to common stockholders — basic and diluted
  $ (0.27 )   $ 0.22     $ 0.15  
 
                 
WEIGHTED AVERAGE SHARES — BASIC
    101,440       65,495       51,331  
 
                 
WEIGHTED AVERAGE SHARES — DILUTED
    101,440       65,495       51,728  
 
                 
See notes to consolidated financial statements.

F-4


Table of Contents

COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
Years Ended December 31, 2010, 2009 and 2008
(In thousands)
<
                                                                         
                                    Accumulated     Cumulative                      
                                    Other     Undistributed                      
                                    Comprehensive     Net Income                      
                    Additional             Income (Loss)     (Distributions in             Nonredeemable        
    Preferred     Common     Paid-In     Treasury     on Derivative     Excess of     Stockholders’     Noncontrolling        
    Stock     Stock     Capital     Stock     Instruments     Net Income)     Investment     Interests     Total Equity  
     
Balance December 31, 2007
  $ 200,000     $ 54,851     $ 348,508     $ (86,840 )   $ (4,302 )   $ 42,604     $ 554,821     $ 38,419     $ 593,240  
 
                                                                       
Net income
                                  22,547       22,547       2,731       25,278  
Other comprehensive loss
                            (12,299 )           (12,299 )           (12,299 )
     
Total comprehensive income (loss)
                            (12,299 )     22,547       10,248       2,731       12,979  
Repurchase of preferred stock
    (30,398 )           14,557                         (15,841 )           (15,841 )
 
                                                                       
Common stock issued pursuant to:
                                                                       
Exercise of options and grants under director stock plan
          105       1,771                         1,876             1,876  
Restricted stock grants, net of amounts withheld for income taxes
          (16 )     (257 )                       (273 )           (273 )
Amortization of stock options and restricted stock, net of forfeitures
          (18 )     4,296                         4,278             4,278  
Income tax deficiency from stock based compensation
                (46 )                       (46 )           (46 )
Distributions to noncontrolling interests
                                              (3,767 )     (3,767 )
Change in fair value of redeemable noncontrolling interests
                                  (3,282 )     (3,282 )     156       (3,126 )
Cash preferred dividends paid
                                  (15,250 )     (15,250 )           (15,250 )
Cash common dividends paid
                                  (69,808 )     (69,808 )           (69,808 )
     
 
                                                                       
Balance December 31, 2008
    169,602       54,922       368,829       (86,840 )     (16,601 )     (23,189 )     466,723       37,539       504,262