|UNITED STATESSECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549


FORM 8-K


CURRENT REPORT Pursuant to Section 13
or 15(d) of theSecurities Exchange
Act of 1934



Date
of report (Date of earliest event reported): August 29, 2005


COLONIAL PROPERTIES
TRUST(Exact name of
registrant as specified in its charter)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                               |                          |                                     
|---------------------------------------------- | ------------------------ | ------------------------------------
|Alabama                                        | 1-12358                  | 59-7007599                          
|(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number)

|2101 Sixth Avenue
North, Suite 750, Birmingham, Alabama 35202(Address of
principal executive offices) (Zip Code)





(205) 250-8700(Registrants
telephone number, including area code)


Not
applicable
(Former name or former address, if changed since last report)


Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see
General Instruction A.2. below):

 
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
             240.14d-2(b))


[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
             240.13e-4(c))







Item 1.01     Entry into a
Material Definitive Agreement.


Please
refer to the disclosure provided under Item 3.03 of this Current Report on Form 8-K.



Item 3.03     Material
Modification to Rights of Security Holders


On
August 29, 2005, Colonial Properties Trust (the Company) and EquiServe Trust
Company, N.A., as successor to BankBoston, N.A., as Right Agent entered into a First
Amendment to Rights Agreement (the Amendment), to amend that certain Rights
Agreement, dated as of November 2, 1998 between the Company and the Rights Agent (the
Rights Agreement). Each preferred share purchase right issued under the Rights
Agreement, when exercisable, entitles the holder to purchase from the Company 1/10,000th
of a Colonial Series 1998 preferred share at a price of $92.00 subject to adjustment. The
description and terms of the rights are set forth in the Rights Agreement, a copy of which
was filed as Exhibit 10.14 of the Companys Annual Report on Form 10-K for the period
ended December 31, 1998 and which is incorporated herein by reference.


The
Amendment, among other things: (i) changes the ownership threshold trigger from 15% to
20%; (ii) adds a TIDE (Three-Year Independent Director Evaluation) provision that
requires the independent members of the Board of Trustees review the Rights Agreement, at
least once every three years, to determine whether it should be continued or revoked; and
(iii) adds a provision requiring the Board of Trustees to submit the Rights Agreement to
the shareholders of the Company for ratification on or prior to December 31, 2008 if the
Rights Agreement has not terminated on or prior to November 1, 2008 (the Outside
Termination Date) and providing for termination of the Agreement on December 31,
2008 if the Rights Agreement is not ratified by the shareholders on or prior to December
31, 2008.


A
copy of the Amendment is attached as Exhibit 4.2 to this Current Report on Form 8-K and is
incorporated herein by reference.




Item 9.01     Financial
Statements and Exhibits.


(c) Exhibits


Attached
as exhibits to this form are the documents listed below:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Exhibit |  | Document                                                                                                                                                                                                                               
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4.1     |  | Rights Agreement, dated as of November 2, 1998, between Colonial Properties Trust and BankBoston, N.A. (incorporated by reference to Exhibit 10.14 in the Company's Annual Report
on Form 10-K for the period ending December 31, 1998)
|4.2     |  | First Amendment to Rights Agreement, dated as of August 29, 2005,
between the Company and EquiServe Trust Company, N.A., as successor to BankBoston, N.A., as Rights Agent                                                             

|SIGNATURE


Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                         |  |                                                                                        
|------------------------ |  | ---------------------------------------------------------------------------------------
|                         |  | COLONIAL PROPERTIES TRUST                                                              
|Date:  September 1, 2005 |  | By: /s/    John E.Tomlinson                                                            
|                         |  | Name:        John E. Tomlinson                                                         
|                         |  | Title:          Executive Vice President and                   Chief Accounting Officer

|EXHIBIT INDEX
|-------------

|Exhibit |  | Document                                                                                                                                                                                                                               
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4.1     |  | Rights Agreement, dated as of November 2, 1998, between Colonial Properties Trust and BankBoston, N.A. (incorporated by reference to Exhibit 10.14 in the Company's Annual Report
on Form 10-K for the period ending December 31, 1998)
|4.2     |  | First Amendment to Rights Agreement, dated as of August 29, 2005,
between the Company and EquiServe Trust Company, N.A., as successor to BankBoston, N.A., as Rights Agent                                                             

|EXHIBIT 4.2



FIRST AMENDMENT TO
RIGHTS AGREEMENT


THIS
FIRST AMENDMENT TO RIGHTS AGREEMENT (the Amendment) is made as of August 29,
2005 between Colonial Properties Trust, an Alabama real estate investment trust (the
Company), and EquiServe Trust Company, N.A., as successor to BankBoston, N.A.
(the Rights Agent).


WHEREAS,
the Company and the Rights Agent are parties to that certain Rights Agreement dated as of
November 2, 1998 (the Original Rights Agreement);


WHEREAS,
pursuant to Section 27 of the Original Rights Agreement, the Company and the Rights Agent
may amend or supplement from time to time certain provisions of the Original Rights
Agreement which the Company may deem necessary or desirable, without approval of holders
of Rights Certificates (as defined in the Original Rights Agreement); and


WHEREAS,
the Company, through its Board of Trustees, has determined that it is necessary and
desirable to amend the Original Rights Agreement as provided in this Amendment.


NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Rights Agent hereby agree as follows:


     1.    
          DEFINITIONS. Except as otherwise set forth in this Amendment, each capitalized
          term used in this Amendment shall have the meaning for such term set forth in
          the Original Rights Agreement.


     2.    
          DEFINITION OF AGREEMENT. From and after the date hereof, all
          references in the Original Rights Agreement to the Agreement shall
          mean and refer to the Original Rights Agreement as modified by this Amendment.


     3.    
          DEFINITION OF ACQUIRING PERSON. Section 1(a) of the Original Rights
          Agreement is hereby amended by deleting all references therein to
          15% and replacing them with 20%.


     4.    
          DEFINITION OF DISTRIBUTION DATE. Section 1(j) of the Original Rights
          Agreement is hereby amended by deleting the reference therein to 15%
          and replacing it with 20%"


     5.    
          CHANGE OF RIGHTS AGENT. The Original Rights Agreement is hereby amended by
          adding the following new sentence to Section 21 immediately after the end of the
          existing second sentence of Section 21:


Resignation or removal of the
Rights Agent as transfer agent for the Company shall also constitute resignation or
removal of the Rights Agent as Rights Agent pursuant to this Agreement.



     6.    
          REVIEW BY INDEPENDENT TRUSTEES. The Original Rights Agreement is hereby amended
          by adding the following new Section 35:

Section 35. Review by Independent Trustees.



Members
of the Board of Trustees who are deemed independent under the rules of the New
York Stock Exchange shall review this Agreement at least once every three (3) years to
determine whether it should be continued or revoked. Following each such determination,
the independent members of the Board of Trustees shall take such actions as they deem
appropriate to reflect their determination. The obligations set forth under this Section
35 may be delegated to a committee comprised of independent members of the Board of
Trustees.


     7.    
          SHAREHOLDER APPROVAL. The Original Rights Agreement is hereby amended by adding
          the following new Section 36:


Section 36. Shareholder Approval.


If
the Agreement has not terminated on or prior to the Final Expiration Date, (i) the Board
of Trustees shall submit the Agreement to shareholders of the Company for ratification as
a separate ballot item at a special meeting of shareholders to be held on or prior to
December 31, 2008 and (ii) if the Agreement is not ratified on or prior to December 31,
2008 by a majority of the votes cast on such issue at such special meeting duly called and
at which a quorum is present, the Agreement shall terminate on December 31, 2008.


     8.    
          FORCE MAJEURE. The Original Rights Agreement is hereby amended by adding the
          following new Section 37:


Section 37. Force Majeure.


Notwithstanding
anything to the contrary contained herein, the Rights Agent shall not be liable for any
delays or failures in performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts, shortage of supply, breakdowns
or malfunctions, interruptions or malfunction of computer facilities, or loss of data due
to power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war, or civil unrest.


     9.    
          EFFECT ON ORIGINAL. Except as specifically modified by this Amendment, the
          Original Rights Agreement shall remain unchanged and continue in full force and
          effect.



     10.    
          COUNTERPARTS. This Amendment may be executed in one or more counterparts, each
          of which shall constitute an original and all of which together shall constitute
          but one original; provided, however, this Amendment shall not be effective
          unless and until signed by the Company and the Rights Agent.


     11.    
          GOVERNING LAW. This Amendment shall be deemed to be a contract made under the
          laws of the State of Alabama and for all purposes shall be governed by and
          construed in accordance with laws of such State.


     12.    
          SEVERABILITY. If any term, provision, covenant or restriction of this Amendment
          is held by a court of competent jurisdiction or other authority to be invalid,
          void or unenforceable, the remainder of the terms, provisions, covenants and
          restrictions of this Amendment shall remain in full force and effect and shall
          in no way be affected, impaired or invalidated.


     13.    
          BENEFITS OF THIS AGREEMENT. Nothing in the Original Rights Agreement, as amended
          by this Amendment, shall be construed to give to any Person other than the
          Company, the Rights Agent and the registered holders of the Rights Certificates
          (and, prior to the Distribution Date, the registered holders of the Common
          Shares) any legal or equitable right, remedy or claim under the Original Rights
          Agreement, as amended by this Amendment; but the Original Rights Agreement, as
          amended by this Amendment, shall be for the sole and exclusive benefit of the
          Company, the Rights Agent and the registered holders of the Rights Certificates
          (and, prior to the Distribution Date, registered holders of Common Shares).


     14.    
          EFFECTIVE DATE. This Amendment shall become effective as of the date first
          written above.



[Signatures appear
on the following page.]




IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
attested as of the date first written above.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                        |  | COMPANY:COLONIAL PROPERTIES TRUST                                                                                
|--------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------
|Attest:                                                                                 |  |                                                                                                                  
|By: /s/  Kimberly A. KeuterName: Kimberly A. KeuterTitle: Assistant Corporate Secretary |  | By: /s/ John P. Rigrish
Name: John P. RigrishTitle: Chief Administrative Officer &            Corporate Secretary

|                                                            |  | RIGHTS AGENT:EQUISERVE TRUST COMPANY, N.A.                                 
|----------------------------------------------------------- |  | ---------------------------------------------------------------------------
|Attest:                                                     |  |                                                                            
|By: /s/ James Walsh Name:James Walsh Title: Account Manager |  | By:  /s/ Katherine AndersonName: Katherine AndersonTitle: Managing Director