Good day and welcome to the Cousins Properties Incorporated First Quarter Conference Call. Today’s call is being recorded. At this time for opening remarks and introduction, I would like to turn the call over to Tripp Sullivan of Corporate Communications.

Good morning. Certain matters that the company will be discussing today are forward-looking statements within the meaning of federal securities laws. For example, the company may provide estimates about expected operating income from properties, as well as certain categories of expenses and other future financial results along with expectations regarding intended use of proceeds, leasing activity, development, acquisition, financing and disposition opportunities. Such forward-looking statements are subject to uncertainties and risk, and actual results may differ materially from these statements. Please refer to the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2012 for additional information regarding certain risk and uncertainties. Also, certain items that company may refer to today are considered non-GAAP financial measures within the meaning of Regulation G, as promulgated by the SEC. For these items, the comparable GAAP measures and related reconciliations may be found through the quarterly disclosures and supplemental SEC information links on the Investor Relations page of its website at www.cousinsproperties.com. And now, I’ll turn the call over to Larry Gellerstedt.

Good morning, everyone. Thank you for joining us. We’re really excited about our first quarter results. With the acquisition of Post Oak Central in Huston and solid performance throughout the operating portfolio, we continued to make progress across all fronts. And with three major transactions completed subsequent to quarter end, we continue to move forward aggressively with our strategic plan. Our strategy is centered on three things; simple platform, trophy assets and opportunistic investments. Our portfolio is increasingly comprised of Class-A office assets that are well-placed within high-growth Sun Belt markets, where our expertise and long-term relationships are competitive advantages. Further playing to our strengths, we are using this stable platform to seek additional returns through opportunistic investments. The first of these items, simplifications, drives cost saving and enables us to remain focused where we are strongest. Latter to leasing and investment should drive future NAV growth both organically and externally. I’ll briefly provide an update on where we stand with each of these objectives. In terms of simplification, the office portfolio now accounts for over 83% of our net operating income, up from 70% in the first quarter of 2012. We are in the process of marketing two additional retail centers, the Avenue Murfreesboro and Tiffany Springs Marketcenter, which will further streamline our operating portfolio. Land holdings now account for only 3% of our asset base, down from over 15% a little over year ago. On the leasing front, the operating portfolio is in good shape at 91% leased on the same property basis. Year-to-date, overall activity has picked up while deal economics continue to gradually improve. In our Texas markets, we are seeing some rent growth; in Atlanta, we are seeing tightening on tenant concessions. We are particularly encouraged that some of our smaller mid-sized tenants are now…

Thanks, Larry. Good morning, everyone. Overall, we had a very productive first quarter, lots of positive transactions and capital markets activity. From an earnings perspective, FFO was $0.11 per share. And although all of this activity had an impact in FFO for the quarter, goes up and down, there is one item that may not be obvious in the face of our financials that I’d like to point out this morning. A significant portion of our long-term compensation here at Cousins is driven by the relative performance of our shares versus our peer shares. In that regard, we had a terrific quarter and a long-term compensation accrual reflects that. This entire accrual runs through our G&A line item and it resulted in a large spike during the first quarter in the G&A expense number on our income statement. Without this non-cash accrual adjustments, G&A would have been about $1.5 million lower and FFO would have been about a $1.5 million higher during the first quarter. FFO would have been $0.12 instead of a $0.11. If there was ever a good variance to have in G&A, this is it, both our shareholders and our employees win. And despite this pop during the quarter, we are still maintaining our prior full year 2013 G&A guidance of between $20 million and $22 million although we will likely to be at the top end of that range for the year. With that let me move on to providing an update on the embedded NOI associated with the bid for assets. If you recall back in the summer of 2012, we identified three large assets in our portfolio that had significant upside potential due to existing vacancy; 191 Peachtree, Promenade and The American Cancer Society Center. Upon the purchase of 2100 Ross during the third…

Thank you. (Operator Instructions) And our first question comes from the line of John Guinee with Stifel Nicolaus. Please proceed with your question. John W. Guinee – Stifel Nicolaus & Company, Inc.: Well, congratulations. You guys are becoming very boring and mundane. This is great, wow. So I think what’s going on right now in the South East is everybody has kind of figured out that the blue state red state thing is for real and that the real job growth in this country is going to be in the Sun Belt. Red states right toward states et cetera; that’s great news. The bad news is that everybody and their brothers are looking for deals and there is no more Acorns. Acorns on the ground, the 2100 Ross is long gone. You guys make a great purchase et cetera. So the question I would ask is two questions, one, what do you think of the multitude of markets down in Florida and two, where are there still some untapped opportunities?

Good morning, John. I think you must have been talking to my wife because I’ve got my 35th anniversary next week if boring and mundane would probably be her lead title on me. So I hate you starting out with the personal question. But like in all seriousness, I think your observations in terms of the markets and the job growth as highlighted must feature right on point, and the type of opportunities on acquisitions that we look for in terms of the value-add with the vacancy or the repositioning are getting harder to find particularly in the Texas markets, and I’m sure that’s no surprise. We still think we have our eye on some stuff, nothing that’s in process, but we think there’s still some opportunity in Atlanta for something to look at. And we still have our eye on some things up in North Carolina. in terms of expanding to new markets, we constantly are looking at markets throughout the Southeast, including Florida. But we really – if we go to a new market, we want to be thoughtful about that and make sure it’s a market that we are looking at not just for a transaction, but for a longer-term because so much of our platform performance depends upon having boots on the ground and having relationships in those markets. So I’m not discouraged with the acquisition pipeline right now, but I think you are right on point in terms of a lot more interest than a year ago and pricing in certain markets didn’t pushed up beyond levels we’re comfortable with. John W. Guinee – Stifel Nicolaus & Company, Inc.: Talk to you in a few months. thanks.

Thanks, John.

Our next question comes from the line of Brendan Maiorana with Wells Fargo. Please proceed with your question. Brendan C. Maiorana – Wells Fargo Securities, LLC: Yeah, thanks guys, good morning. So Larry, I guess, if I did the math on 816 Congress right, it looks like on a stabilized basis, if you get an additional $1.5 million, it’s probably high 6s cap rate yield on cost. And then you probably got some rent growth on top of that because I think rents are below market, so that’s sort of the kind of world that you guys are looking at now in terms of return expectations that we should look forward for the new deals you’re looking at as well?

Hey, Brendan, it’s Gregg. The billing in cap rate on 816 Congress is actually high 5s, so not high 6s, high 5s if you just… Brendan C. Maiorana – Wells Fargo Securities, LLC: Yes, sorry, I was kind of giving you credit for the 1.5 million of – taking the difference from the 13 million of NOI growth on your big four assets, and then 14.5 million on your big five, I guess. So giving you 1.5 million credit stabilized, no rent growth. It was sort of how I was coming up with high 6s. So I was wondering if that’s sort of, let's say, high 5s going in, high 6s maybe stabilize before growth, is that sort of the deal parameters that you guys still think hold in the markets that you're looking at?

Brendan, I can’t disagree with your numbers, but let me take a step back and tell you kind of how we look at it. We underwrite – when we got a building on 816, we underwrite the in place rents as kind of a core investment for us, right. And so we look at that relative to the other core investments available on that market. And now we underwrite the vacancy much like we’d underwrite the development opportunity with a lot of those risks because you don’t have any construction risk. The building exists you just kind of lease it up. And so we get comparable returns on that vacant space as we would get with the development oftentimes. And then it’s the mix – the weighted average of those two where we arrive at an acceptable return on the investment. So that’s how we are very approaching these assets and 816 penciled out just like all the previous ones have. And when you push all those two together because of the vacancy, it’s really important to look beyond the cap rates. We look at an unlevered IRR what we believe to be reasonable hold period. And 816 is generating very reasonable returns in that regard. Brendan C. Maiorana – Wells Fargo Securities, LLC: Yeah. Are you guys pushing the IRRs down at all just because it’s gotten more competitive out there?

We haven’t actually, yet. Brendan C. Maiorana – Wells Fargo Securities, LLC: Okay. And then Gregg would you – I think you or Larry mentioned that you’d like to get one or two more deals done this year. It seemed like the execution of 816 along with taking out the preferred and raising equity worked really well for you. Do you still have the Series B out there? Would that be something that would be under consideration for part of the capital stack that may come out in the future?

Absolutely, no commitment here, I mean we’ve got a place for (inaudible). And so we’re monitoring that. But our Series B preferred is beyond its five-year lockout. It has an above market coupon. And so I think it’s absolutely a potential use of proceeds whether we use common equity issuance or other sources of the capital to take it out. Brendan C. Maiorana – Wells Fargo Securities, LLC: Okay. And then just last one; so I appreciate sort of all the detailed guidance that you gave and then the detailed disclosure in the supplemental. I think if I went back to your guidance at the beginning of the year or when you reported Q4 results. It seems like 191, not only where you better in the quarter, but you’re projecting when that will be better for the reminder of the year. But then also prompt two, I guess was, it was better this quarter, but I gather that the Norfolk Southern move out was maybe a little bit unexpected, because I think the forward guidance on that is lower than what you have provided previously?

Yeah. That’s right. There was an adjustment to our previous guidance. We weren’t sure on Norfolk Southern to be honest and we’re confident, Norfolk Southern usage is kind of temporary basis, they renovate their headquarters next door. And there’s the potential, they come back to us and continue to take some more space down as they renovate other floors. But you’re right. We had a terrific first quarter. But the balance of the guidance was adjusted primarily driven by the Norfolk Southern lease. Brendan C. Maiorana – Wells Fargo Securities, LLC: And the better outlook on 191 is there anything specific on that or is it just that the expense controls have been maybe better than expected?

Exactly. I mean, it’s like said, it was a lot of little things that actually add up to a pretty good number and a big part of that is expense control. Brendan C. Maiorana – Wells Fargo Securities, LLC: Okay, great. Thank you.

And our next question comes from the line of Michael Knott from Green Street Advisors. Please proceed with your question. Michael Knott – Green Street Advisors: Hey, good morning guys; just wanted to ask Larry about your comment on Third and Colorado. I’d assume your comment, your preleasing target had moved around a little bit over some of the last calls that I presume you’ll announced construction and there will also be some level of pre-leasing along with that?

Yes. I think that’s – you can count on, there will be a level of pre-leasing and the thing that I think is very compelling in Austin is when you look at the job growth that the market has been having, not just what’s looking forward, but what it has throughout the debt. And then I know you guys spent sometime in Austin, but if you look at the rent structure of the top buildings in the market, which are at or above replacement cost. it’s a pretty compelling value proposition for customers as well as the underwriting spreads that we think we’ll be able to generate between our development yield and bought reasonable exit caps this type of market will generate. So we feel good about it, and as I said, we could feel like we’ll be announcing something very shortly getting started on that. Michael Knott – Green Street Advisors: Okay. And any ability to comment on whether that pre-releasing that we’ll see is towards the upper end of kind of a I think the maximum range you said before was 50 and maybe on the lower end, 20 to 30, but I could be off on that. Any comment on where that might shake out when we see it? Close to the one or the other?

I’d really rather – just let us get the announcement out. We’ve got some negotiations going on and as I said, we’ll give full color on exactly where everything is when we announce it. Michael Knott – Green Street Advisors: Fair enough. And then how do you feel about the vacancy at 816? Obviously, will be a bit different than Third and Colorado, the space you have to lease there. Can you just comment on how you think about – how those two buildings maybe contrast with each other in terms of what tenants you’ll be attracting or who might lease the space there?

Sure, it’s an interesting history at 816 because actually our team in Texas redeveloped this building in the 90s and really turned the building around and vanished it for a number of years. So we know the asset really, really well with our team on the ground there in Austin. And what this really does is we went after this, we looked at it from a standalone standpoint of why did 816 have the vacancy in it and we think a large reason for the vacancy in it was that it had a unstable ownership structure the last two or three years. And that ownership structure just led to some tenants leaving the building and so we think one, just being local and knowing the building, knowing the market will greatly increase the tenant interest in that building. And secondarily, we think that because of that ownership structure, maybe they were a little aggressive in asking rents and so we’ve underwritten obviously what we think is market. But we also looked at it from a standpoint of if we go with Third and Colorado, does that change our view and it really was a positive on both fronts because what it does is it gives us two price points in Austin market. So we’ll be the local player in the market with the new building going up and we also will have a very attractive asset in the market that will be in a different price point. So we’re seeing this being extraordinarily complementary. Michael Knott – Green Street Advisors: Thanks for that. And then there’s obviously one of your peers is marketing an opportunity in the suburbs, any interest in expanding beyond the CBD in a more sizable way than you are right now?

Are you taking about in Austin? Michael Knott – Green Street Advisors: Yes, in Austin. Yes.

No, not at this time. Michael Knott – Green Street Advisors: Okay. And then if I can ask one more just about Atlanta. I think you had said before, you’re still working on bringing that concentration down to maybe 40% over time. It sounds like maybe there is a couple of other opportunities in the near-term in Atlanta. Can you just talk about how are you feeling about Atlanta overall, maybe what inning the market is in generally there in Atlanta? Thanks.

The concentration issue, we really said that Atlanta would always be, at least for the foreseeable future, it would be 50% plus of what we do. We just – we’re trying to take that concentration down from what we had. And we have largely – we have done a lot of that and continue to do a lot of that particularly with the sales we’ve had on our retail centers. But the Atlanta market is, obviously, because of housing and some other things. It’s still a lot lower than it traditional has in the down part of the cycle. But the market is really coming back in a pretty strong way. There is still a good deal of room before rents and vacancy given the point that any kind of new construction is a threat. But you are seeing a lot of tightening. The Buckhead, the four office buildings in Buckhead, they got so much attention,1 million to 2 million square feet was added in that market are all over 85% leased at this point and space is actually getting a little tight in those buildings for somebody that wants 50,000 or 60,000 square feet of continuous space. The central parameter market, you’ve had a lot of tightening going on in there and we’re seeing a lot of tenant interest in Midtown as well. And it’s both expansions and it’s relocations from outside. So State Farm has added over a million square feet the last year. Here you’ve got a lot of other expansions going on and you’ve got – we feel positive about Atlanta. And because it’s further behind the recovery cycle, we’re still when our sharpshooter had all – just looking at a couple of specific assets, they may or may not trade but we wouldn’t hesitate at the right price to add a little bit more concentration to Atlanta. Michael Knott – Green Street Advisors: Hey thanks and nice work on the balance sheet and acquisitions so far this year.

Thanks Michael.

(Operator Instructions) Our next question comes from the line of Dave Rodgers with Robert W Baird. Please proceed with your question. Dave Rodgers – Robert W. Baird: I’m sorry; I missed some of the call. But Gregg, do you mind giving a little more color on retail versus office leasing maybe new and renewal activity in breaking those out, and I guess maybe even more specifically diving down into some of the margins on a sequential or year-over-year basis, as its leasing getting better not only in volume, but in terms of price. And if you can give us any color on that, that will be great?

Well, I’ll start with the new versus renewal, and the office versus retail and that we can go from there. So office total for the quarter was 397,000 square feet. The retail total for the quarter was 130,000. The net of those two is the 527,000 we reported. So within the 397,000 of office, 171,000 was new, 226,000 was renewal, and within the 130,000 of retail, 54,000 was new, 76,000 was renewal. So those are the numbers. And then in terms of the margin discussion as I kind of talked about in my prepared remarks, our strategy is to buy assets with vacancy and to buy value-add opportunities. And as you know when you look at these office towers, a lot of the expenses are fixed. So when we’re buying assets, oftentimes we’re buying them eventually at very low operating margins. For the first year or two until they’re stabilized, margins sometimes sub-50%, even down to the 30% area. I think we bought 2100 Ross. At first, it had a 37% operating margin, day one. So that’s why it’s critical that we’re going to talk about margins, we’ve got to peel out all of those and just talk about kind of the stabilized same property pool. And in that regard, the margins are at 62% on an apples-to-apples basis. And that’s up slightly from sequential and it’s up over last year as well. And it’s actually something that we’re going to start to put, as we spend a larger same property pool and a larger stabilized portion of our portfolio, and that becomes more important. We’re going to go ahead and start to provide that margin information in our supplements. So you’ll see that, it’s not in the next supplement. so you’ll see that, it’s not in the next supplement, certainly the one following that and when we do provide that we’ll provide historical context as well. Dave Rodgers – Robert W. Baird: Okay. That’s great, thank you. I think with regard to the proposed sales, I think you said Murfreesboro and Tiffany, any expectation for timing and demand around those. is it too early or you have any good clarity around those transaction?

We took those out to market in April, and there is a tremendous amount of interest as you would expect. These are fantastic assets, well leased and great locations and just as we were answering the question earlier on the buy-side and the sell-side, you’ve got a lot of demand. And so we think we’ll see pricing come in over the next few weeks and we’re very encouraged by just the level of interest and sort of some preliminary indications of when that might come out. Dave Rodgers – Robert W. Baird: And then maybe last one, again, going back to Gregg is, do you have any outstanding 1031 or [reversed] 1031 transactions that you’re looking at or credits that you have to use up or with these two sales, do you expect to have any that you have to deploy back into new properties?

None that I have to use up and neither [resales] will generate the need to do any, it’s nice and clean. Dave Rodgers – Robert W. Baird: All right. great, thank you.

Our next question comes from the line of Michael Knott with Green Street Advisors. Please proceed with your question.

Are you guys able to just comment on overall current mark-to-market across the overall office portfolio? – Green Street Advisors: Are you guys able to just comment on overall current mark-to-market across the overall office portfolio?

, : Michael – Green Street Advisors: Not that accounting, right that, and at the time, you have acquisition or is it?

Exactly. Michael – Green Street Advisors: Any sense of where your runs are versus today’s market?

Well I think, let me see if this answers the question. In Atlanta, as we’ve talked before, rents now will go up that much and never go down that much on face warps. And so I’d like to say that the mark-to-market, if you spread it out over all of our Atlanta portfolio, wouldn’t be very big in one direction or another. We’ve got a couple of buildings that rents may be a little bit over market, the newer buildings; the current rate, but we also have buildings that’s under. In the Texas markets, you’re seeing very solid rent growth going on in those buildings. And so we’ve been able to push rate a little bit on 2100 Ross from our initial underwriting. we’ve actually done about 30,000 plus square feet of leasing at Post Oak Central just in the few months we’ve owned that and those spreads have been licensed well, it’s too early to tell on Texas. So rents are in the right submarkets in Texas. We’re rolling up some. In Atlanta, they’re stable, but still relatively flat. But the tenant improvements in free rent are tightening in Atlanta.

Hey, Michael, I’m going to try to – maybe it helps and maybe it doesn’t, but I think it will give you a good relative sizing. Our most recent acquisition for the subsequent one at 816, but the one that’s on our Post Oak Central, which we bought stabilized at 92% which we believe and the market believes has many rents over the market. Of that $85 million I just quoted, $28 million of that is attributable to the Post Oak Central mark-to-market. So I know it’s hard to put that in your mind, it just tells you on a relative basis that those rents were, are and were materially below market.

Right, okay. And that’s helpful from both of you. Thanks. Any update on Birmingham, couple of office properties there, are you still looking to shed those? – Green Street Advisors: Right, okay. And that’s helpful from both of you. Thanks. Any update on Birmingham, couple of office properties there, are you still looking to shed those?

Birmingham is not a strategic market for us. We are going to be generating a fair amount of proceeds from the sales some of our retail portfolio. So we’ll just match where we see opportunity and use for those proceeds as well as what our balance sheet needs might be. But they’re on the radar but not anything that we’ve got it motion right now.

Okay, thanks. And then Larry, I think that you had mentioned tenants; you’ve seen some tenants starting to expand, which was sort of something new in this cycle. Does that pertain pertained, just the taxes, the result in overall comment. – Green Street Advisors: Okay, thanks. And then Larry, I think that you had mentioned tenants; you’ve seen some tenants starting to expand, which was sort of something new in this cycle. Does that pertain pertained, just the taxes, the result in overall comment.

Now that actually, they’ve then expanded in Texas. That really was more of an Atlanta comment is that as I look at our book of leasing this quarter, it’s really encouraging that you’re beginning to see that our small and midsize tenants start to expand some, and that it’s not a huge number today, but it’s a growing number and that’s encouraging for a lot of reasons.

And are you guys seeing any real densification among tenant in your markets or is that not a trend that really hit your markets for a rent lower, or et cetera, et cetera? – Green Street Advisors: And are you guys seeing any real densification among tenant in your markets or is that not a trend that really hit your markets for a rent lower, or et cetera, et cetera?

No. I think if you take – in any of our markets, if you take a tenant today that is looking at their space that they found a lease on 10 years ago. In their businesses, a sign in the hand change, the number of employees and they decide to move, they generally can take less space. and it just depends upon the type of tenant that it is a looking for dense use of their space is just like our other peers are seeing.

Okay. Thank you. – Green Street Advisors: Okay. Thank you.

All right. So, Mr. Gellerstedt, there are no further questions at this time. I would now turn the call back to you. Please continue with your presentation or closing remarks.

Well, once again, it’s been a fun quarter and a lot of exciting things going on here at Cousins. We very much appreciate all joining us this morning and we look forward to seeing you or talking to you soon as always, Gregg. And the rest of us are available anytime for any questions or thoughts you may have. Thank you very much.

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.