Cousins Properties Incorporated 2006 Annual Report - SNL Financial

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The properties sold during 2004 which did not qualify for treatment as discontinued operations are as follows: Property Name COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Ownership Percentage Rentable Square Feet 333 John Carlyle ............................................ 100% 153,000 1900 Duke Street ............................................ 100% 97,000 101 Independence Center ...................................... 100% 526,000 The Pinnacle ............................................... 50% 423,000 Two Live Oak Center. ........................................ 50% 279,000 Austin Research Park — Buildings III & IV ........................ 50% 358,000 2500 Windy Ridge Parkway .................................... 50% 316,000 4100 Wildwood Parkway ...................................... 50% 100,000 4200 Wildwood Parkway ...................................... 50% 256,000 4300 Wildwood Parkway ...................................... 50% 150,000 2300 Windy Ridge Parkway .................................... 50% 635,000 3200 Windy Hill Road . . ...................................... 50% 698,000 Wildwood — 15 acres of stand-alone retail sites ..................... 50% N/A CC-JM II Associates . . . ...................................... 50% 224,000 Wachovia Tower ............................................ 11.5% 324,000 Purchases of Property On September 13, 2006, the Company purchased the remaining interests in 191 Peachtree Tower (“191 Peachtree”), a 1.2 million square foot office building in downtown Atlanta, Georgia, for $153.2 million. The Company allocated the purchase price based on the fair value of assets and liabilities acquired. Assets are categorized for 191 Peachtree as land, building, tenant improvements and identifiable intangible assets in accordance with SFAS No. 141. The following table summarizes the fair value of the assets and liabilities acquired ($ in thousands): Land ............................................................... $ 5,080 Building. ............................................................ 128,976 Tenant Improvements and FF&E. .......................................... Intangible Assets 7,480 Above market leases .................................................. 10,644 In-place leases ...................................................... 2,494 Total intangible assets ............................................... Liabilities: 13,138 Below market leases .................................................. (747) Above market ground lease ............................................. (727) Total net assets acquired ............................................. $153,200 As of the purchase date, the $13.1 million of acquired intangible assets and $1.5 million of acquired intangible liabilities related to 191 Peachtree had an aggregate weighted average amortization period of 11 years. F-34
The following supplemental pro forma financial information is presented for the years ended December 31, 2006 and 2005. The pro forma financial information is based upon the Company’s historical Consolidated Statements of Income, adjusted as if the acquisition of the remaining interests in 191 Peachtree occurred at the beginning of each of the periods presented. The supplemental pro forma financial information is not necessarily indicative of future results or of actual results that would have been achieved had the acquisition of the remaining interests in 191 Peachtree been consummated at the beginning of each period. Years Ended December 31, 2006 2005 ($ In thousands, except per share) Pro Forma Revenues ................................................. $186,831 $192,805 Income from continuing operations .............................. 152,185 71,662 Income from discontinued operations ............................. 86,457 3,334 Net income available to common shareholders ...................... 223,392 59,746 Per share information: Basic. .................................................. $ 4.41 $ 1.20 Diluted ................................................. $ 4.25 $ 1.15 In September 2006, the Company acquired a 102,000-square-foot office project in Sandy Springs, Georgia, Cosmopolitan Center, which is on 9.5 acres of land and has long-term redevelopment opportunities, for approximately $12.5 million. 10. OTHER ASSETS COUSINS PROPERTIES INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) At December 31, 2006 and 2005, Other Assets included the following ($ in thousands): 2006 2005 Investment in Verde ............................................ FF&E and leasehold improvements, net of accumulated depreciation of $ 9,376 $ — $16,429 and $14,404 as of December 31, 2006 and 2005, respectively . . . . . 8,665 9,674 Predevelopment costs and earnest money ............................. 22,924 4,732 Prepaids and other assets. ........................................ Intangible Assets: 6,531 7,343 Goodwill. .................................................. Above market leases, net of accumulated amortization of $1,447 as of 5,602 8,324 December 31, 2006 ......................................... In-place leases, net of accumulated amortization of $472 as of December 31, 9,407 — 2006 .................................................... 2,589 — $65,094 $30,073 As noted in Note 6, the Company began accounting for its Investment in Verde on the cost basis in the third quarter of 2006, at which time the basis was transferred from Investments in Unconsolidated Joint Ventures to Other Assets on the Consolidated Balance Sheet. Intangible assets relate primarily to the acquisitions of the interests in 191 Peachtree and Cosmopolitan Center in 2006 (see Note 9). In addition to the intangible assets shown above, the Company also acquired intangible liabilities related to the purchases, including below market leases and an above market ground lease. These intangible liabilities are recorded within Accounts Payable and Accrued Liabilities on the Consolidated Balance F-35
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Outstanding Performance Cousins Pro
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FORWARD-LOOKING STATEMENTS Certain
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Had significant leasing activity, n
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Certain environmental laws impose l
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Environmental issues. Environmental
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Financing Risks If interest rates o
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eceive less cash than the amount of
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income, Cousins is subject to tax o
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16 Description and Location Year De
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18 Lease Expirations — Office As
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20 Description and Location Year De
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Lease Expirations — Industrial As
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Additional Information Related to O
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(3) Total Project GLA includes anch
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Description Year Commenced Estimate
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Description and Location(1) Zoned U
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Mr. DuPree rejoined the Company in
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Performance Graph The following gra
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General and Administrative Expenses
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For the foreseeable future, the Com
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collectibility of unit purchase pri
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Decrease of approximately $1.2 mill
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The vesting period for stock option
Page 47 and 48: esidential lot development and land
Page 49 and 50: Stock-Based Compensation. The Compa
Page 51 and 52: capitalization at December 31, 2006
Page 53 and 54: Cash Flows from Investing Activitie
Page 55 and 56: eceivable. The table presents sched
Page 57 and 58: Item 9. Changes in and Disagreement
Page 59 and 60: We have also audited, in accordance
Page 61 and 62: 10(a)(v)* Form of Restricted Stock
Page 63 and 64: SIGNATURES Pursuant to the requirem
Page 65 and 66: Cousins Properties Incorporated IND
Page 67 and 68: COUSINS PROPERTIES INCORPORATED AND
Page 73 and 74: fair values at the date of acquisit
Page 75 and 76: Income Taxes COUSINS PROPERTIES INC
Page 77 and 78: outstanding. The income amounts use
Page 89 and 90: Company and 28% to GDL, after each
Page 97: COUSINS PROPERTIES INCORPORATED AND
Page 107 and 108: 14. PROFIT SHARING/401(K) PLAN The
Page 109 and 110: S-2 Description Encumbrances COUSIN
Page 111 and 112: S-4 Description Encumbrances COUSIN
Page 113 and 114: COUSINS PROPERTIES INCORPORATED STA
Page 115 and 116: Subsidiary State of Incorporation C
Page 117 and 118: I, Thomas D. Bell, Jr., certify tha
Page 119 and 120: Exhibit 32.1 CERTIFICATION PURSUANT
Page 121 and 122: Shareholder Information INDEPENDENT
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Cousins Properties Incorporated 2006 Annual Report - SNL Financial

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