Colonial Properties Trust Exits Office Portfolio

  Colonial Properties Trust Exits Office Portfolio

Business Wire

BIRMINGHAM, Ala. -- January 3, 2013

Colonial Properties Trust (NYSE: CLP), today announced that it has sold its
remaining 10 percent ownership interest in the Bluerock office portfolio (the
“Bluerock Portfolio”). The Bluerock Portfolio consists of nine office assets
located in Huntsville, Alabama, comprising 1.7 million square feet of leasable
space.

Pursuant to the Bluerock Portfolio transaction, effective December 31, 2012,
the company received $2.0 million in cash and the company no longer has
responsibility for $10.7 million of associated mortgage debt and $7.9 million
of other liabilities, primarily related to a ground lease, which represents
the company’s pro-rata share. The company expects to transition management and
leasing responsibilities to a third party, Colliers International, over the
next 30 days.

Colonial Properties Trust is a real estate investment trust (REIT) that
creates value for its shareholders through a multifamily focused portfolio and
the management and development of select commercial assets in the Sunbelt
region of the United States. As of September 30, 2012, the company owned or
managed 35,067 apartment units and 4.6 million square feet of commercial
space. Headquartered in Birmingham, Alabama, Colonial Properties is listed on
the New York Stock Exchange under the symbol CLP and is included in the S&P
SmallCap 600 Index. For more information, please visit the company's website
at www.colonialprop.com.

Safe Harbor Statement

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of
1995: Estimates of future earnings are, by definition, and certain other
statements in this press release, including statements regarding future
dispositions and developments, development costs, credit ratings, operating
performance outlook and other business fundamentals, may constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995 and involve known and unknown risks,
uncertainties and other factors that may cause the company’s actual results,
performance, achievements or transactions to be materially different from the
results, performance, achievements or transactions expressed or implied by the
forward looking statements. Factors that impact such forward looking
statements include, among others, changes in national, regional and local
economic conditions, which may be negatively impacted by concerns about
inflation, deflation, government deficits (including the European sovereign
debt crisis), high unemployment rates, decreased consumer confidence and
liquidity concerns, particularly in markets in which we have a high
concentration of properties; exposure, as a multifamily focused REIT, to risks
inherent in investments in a single industry; ability to obtain financing on
favorable rates, if at all; performance of affiliates or companies in which we
have made investments; changes in operating costs; higher than expected
construction costs; uncertainties associated with the timing and amount of
real estate disposition and the resulting gains/losses associated with such
dispositions; legislative or regulatory decisions; the company’s ability to
continue to maintain our status as a REIT for federal income tax purposes;
price volatility, dislocations and liquidity disruptions in the financial
markets and the resulting impact on availability of financing; the effect of
any rating agency action on the cost and availability of new debt financings;
level and volatility of interest rates or capital market conditions; effect of
any terrorist activity or other heightened geopolitical crisis; or other
factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the company
assumes no responsibility to update the information in this press release.

The company refers you to the documents filed by the company from time to time
with the Securities and Exchange Commission, specifically the section titled
“Risk Factors” in the company’s Annual Report on Form 10-K for the year ended
December31, 2011, as may be updated or supplemented in the company’s Form
10-Q filings, which discuss these and other factors that could adversely
affect the company’s results.

Contact:

Colonial Properties Trust
Jerry A. Brewer, 1-800-645-3917
Executive Vice President, Finance