Cogdell Spencer ERDMAN, wholly owned subsidiary of Cogdell Spencer, Inc., signed two contracts totaling $88.8 million to construct two Healthcare facilities in Wisconsin. The deal helps solidify the company’s leading role in the Healthcare Real Estate Industry.

The first contract is for $53.9 million and is to construct the St. Mary’s Janesville Hospital, a 160,000 square foot facility. The Hospital will be a full service facility with 50 private patient rooms, an intensive care unit and an emergency room.

The second contract is for $34.9 million and is to construct the Dean Janesville Clinic, a 150,000 square foot outpatient clinic designed to be a multi specialty facility. The clinic will also have retail space incorporated into the design.

Cogdell Spencer ERDMAN will begin construction on both facilities later in 2009, and the estimated completion date is late in 2011. Both will be located in Janesville, WI.

Cogdell

Atlanta, GA-based Cousins Properties, Inc. (CUZ) is a Real Estate Investment Trust (REIT) involved in the acquisition, financing, development, management, and leasing of office, retail and industrial properties. CUZ controls properties throughout the US, including Atlanta, Charlotte, Austin, San Francisco, Los Angeles and Washington, DC.

We maintain our Sell rating due to macroeconomic factors. Job growth and consumer spending continue to plummet along with the US economy. CUZ has a heavy concentration of office assets in Atlanta, a market with increasing downtown and suburban office vacancies. The company also has a large development pipeline with lease-up risk from new retail projects.

To conserve cash, the company cuts its 4Q dividend by 32%. On a P/FFO [price-to-funds from operations] basis, the company is valued at an unwarranted premium to office and retail peers. On a positive note, the company has low 2009 debt maturities and plenty of cash and availability on its

Atlanta, GA-based Cousins Properties Inc. (CUZ) is a Real Estate Investment Trust (REIT) involved in the acquisition, financing, development, management, and leasing of office, retail and industrial properties. CUZ controls properties throughout the US, including Atlanta, Charlotte, Austin, San Francisco, Los Angeles, and Washington, DC.

CUZ has a large development pipeline with significant lease up risk from new retail projects. The current yield is now near 9%, although the company is not funding the dividend with operating cash. Shares have dropped nearly 30% over the past two days due to a general market sell-off. Despite this, on a P/FFO [price-to-funds from operations] basis, CUZ still trades at a significant premium to peer group averages.

We think the current premium is unwarranted and are changing our near-term recommendation to Sell. We are setting our price target to $16 per share or approximately 14x 2008 FFO estimates.

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