Exhibit 99.1
Post Properties, Inc.
Net Asset Value Supplemental Information
(Dollars in thousands, except per share or unit data)
(Unaudited)
Net Asset Value Supplemental Information
(Dollars in thousands, except per share or unit data)
(Unaudited)
This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income (“NOI”), which is a supplemental non-GAAP financial measure that the Company uses internally to calculate Net Asset Value (“NAV”). These measures, as adjusted, are also non-GAAP financial measures. With the exception of NOI, the most comparable GAAP measure for each of the non-GAAP measures presented below in the “As Adjusted” column is the corresponding number presented in the first column listed below.
The Company presents below NOI for the quarter ended September 30, 2007 for properties stabilized by July 1, 2007 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by July 1, 2007 are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.
Financial Data
(In thousands)
(In thousands)
| Three months ended | As | |||||||||||
| Income Statement Data | September 30, 2007 | Adjustments | Adjusted | |||||||||
| Rental revenues | $ | 73,595 | $ | (4,008 | )(1) | $ | 69,587 | |||||
| Other property revenues | 4,245 | (118 | )(1) | 4,127 | ||||||||
Total rental and other revenues(A) | 77,840 | (4,126 | ) | 73,714 | ||||||||
Property operating & maintenance expenses (excluding depreciation and amortization)(B) | 35,714 | (7,392 | )(1) | 28,322 | ||||||||
Property net operating income (Table 1)(A-B) | $ | 42,126 | $ | 3,266 | $ | 45,392 | ||||||
Assumed property management fee (calculated at 3% of revenues)(A x 3%) | (2,211 | ) | ||||||||||
| Assumed property capital expenditure reserve ($300 per unit per year based on 18,530 units) | (1,390 | ) | ||||||||||
| Adjusted property net operating income | $ | 41,791 | ||||||||||
Annualized property net operating income(C) | $ | 167,164 | ||||||||||
| Apartment units represented | 22,478 | (3,948 | )(1) | 18,530 | ||||||||
| As of | As | ||||||||||||
| Other Asset Data | September 30, 2007 | Adjustments | Adjusted | ||||||||||
| Cash & equivalents | $ | 2,643 | $ | 2,643 | |||||||||
| Real estate assets under construction, lease-up or rehabilitation, at cost (2) | 81,377 | 268,908 | (2) | 350,285 | |||||||||
| Land held for future development | 186,698 | 186,698 | |||||||||||
| For-sale condominiums and assets held for sale (3) | 90,320 | (38,717 | )(3) | 51,603 | |||||||||
| Investments in and advances to unconsolidated real estate entities (4) | 22,707 | (10,999 | )(4) | 11,708 | |||||||||
| Restricted cash and other assets | 42,805 | 42,805 | |||||||||||
| Cash & other assets of unconsolidated real estate entities (5) | 5,629 | (4,087 | )(5) | 1,542 | |||||||||
Total(D) | $ | 432,179 | $ | 215,105 | $ | 647,284 | |||||||
| Other Liability Data | |||||||||||||
| Tax-exempt debt | $ | 9,895 | $ | 9,895 | |||||||||
| Other notes payable | 1,061,099 | 1,061,099 | |||||||||||
| Other liabilities (6) | 138,014 | (22,192 | )(6) | 115,822 | |||||||||
| Total liabilities of unconsolidated real estate entities (7) | 166,578 | (116,744 | )(7) | 49,834 | |||||||||
Total(E) | $ | 1,375,586 | $ | (138,936 | ) | $ | 1,236,650 | ||||||
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Other Data
| As of September 30, 2007 | ||||||||||||
| # Shares/Units | Stock Price | Implied Value | ||||||||||
Liquidation value of preferred shares(F) | $ | 95,000 | ||||||||||
| Common shares outstanding | 43,681 | |||||||||||
| Common units outstanding | 609 | |||||||||||
Total(G) | 44,290 | $ | 38.70 | $ | 1,714,023 | |||||||
Implied market value of Company gross real estate assets(H) = (E+F+G-D) | $ | 2,398,389 | ||||||||||
Implied Portfolio Capitalization Rate(C÷H) | 7.0 | % | ||||||||||
| (1) | The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2007 to adjust property net operating income to the Company’s share for fully stabilized communities: |
| Rental Revenue | Other Revenue | Expenses | Units | |||||||||||||
| Under construction lease-up, or rehabilitation | $ | (4,171 | ) | $ | (245 | ) | $ | (2,253 | ) | (2,639 | ) | |||||
| Corporate property management expenses | — | — | (3,587 | ) | — | |||||||||||
| Company share of unconsolidated entities | 1,666 | 114 | 681 | (959 | ) | |||||||||||
| Acquired communities (in current quarter) | (801 | ) | (29 | ) | (357 | ) | (350 | ) | ||||||||
| Held for sale operating properties | 2,121 | 175 | 948 | — | ||||||||||||
| Corporate apartments and other | (2,823 | ) | (133 | ) | (2,824 | ) | — | |||||||||
| $ | (4,008 | ) | $ | (118 | ) | $ | (7,392 | ) | (3,948 | ) | ||||||
| (2) | The “As Adjusted” amount represents CIP balance per the Company’s balance sheet plus the costs of properties under construction and lease-up that have been transferred to operating real estate assets as apartment units are completed, plus the gross book value for communities acquired or under rehabilitation during the third quarter of 2007. | |
| (3) | The adjustment reflects a reduction for the depreciated book value of three apartment communities held for sale and included in discontinued operations at September 30, 2007, as the net property operating income of these communities has been included in adjusted property net operating income reflected above (see note 1). | |
| (4) | The adjustment reflects a reduction for the investments in unconsolidated entities for entities with operating real estate assets as the Company’s net operating income of such investments is included in the adjusted net operating income reflected above, plus an adjustment to increase the Company’s investment in The Residences at 3630 Peachtree™ to the Company’s proportionate share of the real estate assets of such entity. The “As Adjusted” amount represents the Company’s share of the total assets of The Residences at 3630 Peachtree™. | |
| (5) | The “As of September 30, 2007” amount represents cash and other assets of unconsolidated apartment and condominium conversion entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets of the Company’s unconsolidated apartment and condominium conversion entities. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment and condominium conversion entities. | |
| (6) | The “As of September 30, 2007” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses, security deposits and prepaid rents and minority interests in consolidated real estate entities as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense of $12,240 and for credit investment balances of the Company’s investment in two unconsolidated entities of $9,952. | |
| (7) | The “As of September 30, 2007” amount represents total liabilities of unconsolidated apartment and condominium conversion entities. The adjustment represents a reduction for the venture partner’s respective share of liabilities of unconsolidated apartment entities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment and condominium conversion entities. |
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