For all of 2002, Cousins reported FFO of $114.4 million or $2.29 per share versus $104.4 million or $2.08 per share in 2001.

Despite tenant lease defaults in some major markets, the Atlanta-based developer's office portfolio ended the year with an average 94% leasing level, with retail properties hitting a 96% leasing mark. "This was in spite of the negative absorption that occurred in some of our major markets such as Atlanta, Dallas and San Francisco," company president/CEO Tom Bell tells shareholders in a statement.

"Looking ahead, 2003 will certainly be a very challenging year," Bell adds. "Office demand is weak and office vacancy rates continue to rise in most of our major markets."

On tenant credit issues, Cousins is booking "significant" termination fees from tenants who cancelled leases early but filling the vacant space could be time-consuming. Income from continuing operations before the gain on sale of investment properties for the fourth quarter was $9.5 million or 19 cents per share compared to $10.4 million or 21 cents per share for the same period last year.

For all of 2002, income from continuing operations before investment property sale gains was $43.7 million or 88 cents per share, versus $47.1 million or 94 cents per share in fiscal 2001. Cousins recognized gains on sale totaling $7.4 million or 15 cents per share for 2002 and $23.5 million or 47 cents per share for 2001.

Among Cousins' achievements in 2002 were the openings of a joint-ventured $147.8 million, 379,000-sf office complex at 55 Second Street in San Francisco and the 358,000-sf Emory Crawford Long Medical Office Tower in Atlanta. The company also broke ground the 206,000-sf Avenue West Cobb development in Atlanta and the 70,000-sf Shops of Lake Tuscaloosa in Tuscaloosa, AL.

Major Atlanta leases signed during the year included Coca-Cola Enterprises, 236,000-sf; AGL Resources, 227,000 sf; and Hunton & Williams, 114,000 sf. Elsewhere, Cousins signed Bombardier to a 98,000-sf lease in Dallas. In Austin, TX, Graves Dougherty signed a 48,000-sf lease; Dewey Ballantine, 35,000 sf.

Cousins' land division sold 455 lots, including lots sold by joint ventures, and other tracts which contributed $3 million to FFO. The company also sold the 67,000-sf Salem Road Station neighborhood retail center for $7.4 million, booking a gain of $1.2 million. Cousins completed $150 million of long-term, non-recourses financing on Bank of America Plaza.