Post Apartment Homes 8-K Post Properties Announces Third Quarter 2014 Earnings

Exhibit 99.2

Third Quarter 2014

Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations		3
Funds from Operations and Adjusted Funds From Operations		4
Consolidated Balance Sheets		5
Same Store Results		8
Debt Summary		11
Summary of Apartment Communities Under Development and Land Held for Future Investment and Acquisitions/Disposition Activity		14
Capitalized Costs Summary		15
Investments in Unconsolidated Real Estate Entities		16
Net Asset Value Supplemental Information		17
Non-GAAP Financial Measures and Other Defined Terms and Tables		19

The projections and estimates given in this document and other written or oral statements made by or on behalf of the Company may constitute “forward-looking statements” within the meaning of the federal securities laws. All forward-looking statements are subject to certain risks and uncertainties that could cause actual events to differ materially from those projected. Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise. The following are some of the factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: the success of the Company’s business strategies discussed in its Annual Report on Form 10-K for the year ended December 31, 2013 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the Company’s real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Company’s ability to generate sufficient cash flows to make required payments associated with its debt financing; the effects of the Company’s leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Company’s securities; the effects of a default by the Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Company’s or its subsidiaries’ mortgage indebtedness on operational flexibility and default risks; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including warranty and related obligations; the impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Company’s business, including competition for residents in the Company’s apartment communities and for development locations; the Company’s ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; uncertainties associated with the timing and amount of asset sales, the market for asset sales and the resulting gains/losses associated with such asset sales; the Company’s ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Company’s properties by persons with disabilities; the impact of the Company’s ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Company’s ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnerships in which it has partial interests; the Company’s ability to renew leases or relet units as leases expire; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; increased costs arising from health care reform; or any breach of the Company’s privacy or information security systems. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this document.

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CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data) - (Unaudited)

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Revenues
Rental	$	90,751	$	87,895	$	268,193	$	253,174
Other property revenues		5,476		5,274		16,130		15,190
Other		234		225		676		668
Total revenues		96,461		93,394		284,999		269,032
Expenses
Property operating and maintenance (exclusive of items shown separately below)		41,675		40,266		124,066		115,723
Depreciation		21,018		21,580		63,614		63,694
General and administrative		4,784		4,079		12,878		12,494
Investment and development (1)		555		367		2,160		1,448
Other investment costs (1)		224		418		707		1,239
Severance, impairment and other (2)		344		1,981		1,753		1,981
Total expenses		68,600		68,691		205,178		196,579
Operating income		27,861		24,703		79,821		72,453
Interest income		78		8		94		67
Interest expense		(9,858)		(11,186)		(31,535)		(33,280)
Amortization of deferred financing costs		(588)		(646)		(1,853)		(1,915)
Net gains on condominium sales activities (3)		1,052		5,293		1,862		27,468
Equity in income of unconsolidated real estate entities, net		422		656		1,408		1,611
Other income (expense), net		(195)		(196)		(586)		(644)
Net loss on extinguishment of indebtedness (4)		(14,070)		-		(18,357)		-
Income from continuing operations, before gains on sales of real estate assets		4,702		18,632		30,854		65,760
Gains on sales of real estate assets		151,733		-		187,825		-
Income from continuing operations		156,435		18,632		218,679		65,760
Discontinued operations (4)
Income from discontinued property operations		-		421		-		1,297
Income from discontinued operations		-		421		-		1,297
Net income		156,435		19,053		218,679		67,057
Noncontrolling interests - consolidated real estate entities		(22,416)		(32)		(22,554)		(87)
Noncontrolling interests - Operating Partnership		(313)		(48)		(464)		(167)
Net income available to the Company		133,706		18,973		195,661		66,803
Dividends to preferred shareholders		(922)		(922)		(2,766)		(2,766)
Net income available to common shareholders	$	132,784	$	18,051	$	192,895	$	64,037
Per common share data - Basic(5)
Income from continuing operations (net of preferred dividends)	$	2.44	$	0.32	$	3.55	$	1.15
Income from discontinued operations		-		0.01		-		0.02
Net income available to common shareholders	$	2.44	$	0.33	$	3.55	$	1.17
Weighted average common shares outstanding - basic		54,301		54,371		54,233		54,424
Per common share data - Diluted(5)
Income from continuing operations (net of preferred dividends)	$	2.44	$	0.32	$	3.54	$	1.15
Income from discontinued operations		-		0.01		-		0.02
Net income available to common shareholders	$	2.44	$	0.33	$	3.54	$	1.17
Weighted average common shares outstanding - diluted		54,373		54,539		54,336		54,611

See Notes to Consolidated Financial Statements on page 6

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FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(In thousands, except per share data) - (Unaudited)

A reconciliation of net income available to common shareholders to funds from operations available to common shareholders and unitholders, and adjusted funds from operations available to common shareholders and unitholders is provided below.

	Three months ended September 30,				Nine months ended September 30,
Funds From Operations	2014		2013		2014		2013
Net income available to common shareholders	$	132,784	$	18,051	$	192,895	$	64,037
Noncontrolling interests - Operating Partnership		313		48		464		167
Depreciation on consolidated real estate assets, net (6)		20,724		21,468		62,795		63,226
Depreciation on real estate assets held in unconsolidated entities		296		291		882		871
Gains on sales of depreciable real estate assets		(151,733)		-		(187,825)		-
Noncontrolling interest share of gains on sales of depreciable real estate assets		24,074		-		24,074		-
Gain on sale of retail condominium		(281)		-		(281)		-
Funds from operations available to common shareholders and unitholders (A)	$	26,177	$	39,858	$	93,004	$	128,301
Funds from operations available to common shareholders and unitholders - core operations (B)	$	25,406	$	34,565	$	91,423	$	100,833
Funds from operations available to common shareholders and unitholders - condominiums		771		5,293		1,581		27,468
Funds from operations available to common shareholders and unitholders (A)	$	26,177	$	39,858	$	93,004	$	128,301
Adjusted Funds From Operations
Funds from operations available to common shareholders and unitholders (A)	$	26,177	$	39,858	$	93,004	$	128,301
Annually recurring capital expenditures		(3,911)		(4,128)		(10,126)		(11,493)
Periodically recurring capital expenditures		(1,443)		(2,890)		(6,052)		(11,217)
Non-cash straight-line adjustment for ground lease expenses		115		118		349		358
Net loss on early extinguishment of indebtedness		14,070		-		18,357		-
Noncontrolling interest share of net loss on early extinguishment of indebtedness		(1,737)		-		(1,737)		-
Non-cash impairment charge		-		400		-		400
Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	33,271	$	33,358	$	93,795	$	106,349
Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D)	$	32,500	$	28,065	$	92,214	$	78,881
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7)		771		5,293		1,581		27,468
Adjusted funds from operations available to common shareholders and unitholders (7) (C)	$	33,271	$	33,358	$	93,795	$	106,349
Per Common Share Data - Diluted
Funds from operations per share or unit, as defined (A÷E)	$	0.48	$	0.73	$	1.70	$	2.34
Funds from operations per share or unit - core operations (B÷E)	$	0.47	$	0.63	$	1.67	$	1.84
Adjusted funds from operations per share or unit, as defined (7)(C÷E)	$	0.61	$	0.61	$	1.72	$	1.94
Adjusted funds from operations per share or unit - core operations (7)(D÷E)	$	0.59	$	0.51	$	1.69	$	1.44
Dividends declared	$	0.40	$	0.33	$	1.16	$	0.91
Weighted average shares outstanding (8)		54,502		54,661		54,460		54,731
Weighted average shares and units outstanding (8)(E)		54,632		54,804		54,593		54,874

See Notes to Funds from Operations and Adjusted Funds from Operations on page 6

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CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

	September 30,          2014		December 31,          2013
	(Unaudited)
Assets
Real estate assets
Land	$	314,683	$	327,270
Building and improvements		2,308,487		2,408,906
Furniture, fixtures and equipment		299,287		291,027
Construction in progress		70,878		74,064
Land held for future investment		41,689		61,768
		3,035,024		3,163,035
Less: accumulated depreciation		(916,555)		(913,018)
For-sale condominiums		-		1,122
Total real estate assets		2,118,469		2,251,139
Investments in and advances to unconsolidated real estate entities		4,095		4,056
Cash and cash equivalents		160,520		82,110
Restricted cash		3,558		4,712
Deferred financing costs, net		5,648		8,495
Other assets		31,304		31,165
Total assets	$	2,323,594	$	2,381,677
Liabilities and equity
Indebtedness	$	893,170	$	1,098,734
Accounts payable, accrued expenses and other		77,219		73,431
Investments in unconsolidated real estate entities		16,654		16,687
Dividends and distributions payable		21,833		17,928
Accrued interest payable		8,060		5,157
Security deposits and prepaid rents		10,024		10,888
Total liabilities		1,026,960		1,222,825
Redeemable common units		6,190		6,121
Commitments and contingencies
Equity
Company shareholders’ equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 868 shares issued and outstanding		9		9
Common stock, $.01 par value, 100,000 authorized:
54,632 and 54,629 shares issued and 54,461 and 54,191 shares outstanding at September 30, 2014 and December 31, 2013, respectively		546		546
Additional paid-in-capital		1,114,464		1,111,861
Accumulated earnings		191,176		66,138
Accumulated other comprehensive income (loss)		(2,740)		(3,419)
		1,303,455		1,175,135
Less common stock in treasury, at cost, 254 and 519 shares at September 30, 2014 and December 31, 2013, respectively		(13,011)		(22,188)
Total Company shareholders’ equity		1,290,444		1,152,947
Noncontrolling interests - consolidated property partnerships		-		(216)
Total equity		1,290,444		1,152,731
Total liabilities and equity	$	2,323,594	$	2,381,677

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NOTESTO CONSOLIDATED FINANCIAL STATEMENTS

AND RECONCILIATIONOF FUNDS FROM OPERATIONSAND ADJUSTED FUNDS FROM OPERATIONS

(In thousands)

1) Investment and development expenses include investment group expenses, development personnel and associated costs not allocable to development projects. Other investment costs primarily include land carry costs, principally property taxes and assessments, as well as acquisition expenses of $145 and $320 for the three and nine months ended September 30, 2013.

2) Severance, impairment and other expenses included $344 and $281 for the three months and $1,003 and $281 for the nine months ended September 30, 2014 and 2013, respectively, related to the strategic initiative to upgrade the Company’s operating and financial software systems. In the nine months ended September 30, 2014, severance, impairment and other expenses also included estimated casualty losses of $750 related to extreme winter conditions in many of the Company’s markets and fire damage at one of the Company’s communities. In the three months ended September 30, 2013, severance, impairment and other expenses also included severance charges of $989 related to the departure of an executive officer, a non-cash impairment charge of $400 to write-down to fair value a parcel of land held for future investment and estimated casualty losses of $311 related to fire damage sustained at one of the Company’s communities.

3) A summary of revenues and costs and expenses of condominium activities for the three and nine months ended September 30, 2014 and 2013 was as follows:

	Three months  ended               September 30,				Nine months  ended               September 30,
	2014		2013		2014		2013
Condominium revenues	$	-	$	12,550	$	2,442	$	68,148
Condominium costs and expenses		771		(7,257)		(861)		(40,680)
Net gains on sales of residential condominiums		771		5,293		1,581		27,468
Net gain on sale of retail condominium		281		-		281		-
Net gains on sales of condominiums	$	1,052	$	5,293	$	1,862	$	27,468	��

For the three months ended September 30, 2014, the Company recognized a reduction to condominium warranty and related obligations of $771 associated with the favorable settlement of certain contingencies during the period. Additionally, for the three months ended September 30, 2014, the Company sold a retail condominium representing a portion of the available retail space at a condominium community in Austin, Texas and recognized a net gain of $281.

4) In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale or sold were included in discontinued operations for all periods presented. Additionally, all gains or losses on the sale of these assets were included in discontinued operations. For the three and nine months ended September 30, 2013, income from discontinued operations included the operating results of one apartment community sold in October 2013, containing 342 units, as follows:

	Three months ended September 30, 2013		Nine months ended September 30, 2013
Revenues
Rental	$	1,113	$	3,272
Other property revenues		111		327
Total revenues		1,224		3,599
Expenses
Property operating and maintenance		540		1,509
Depreciation		175		527
Interest		88		266
Total expenses		803		2,302
Income from discontinued property operations	$	421	$	1,297

Effective for the Company on January 1, 2014 the accounting and disclosure requirements for reporting discontinued operations were amended under GAAP. The amended guidance requires the Company to report asset disposals as discontinued operations only if such disposals represent a strategic shift that would have a major effect on the Company’s operations and financial results. In the first quarter of 2014, the Company classified three communities, containing 645 units, as held for sale under the amended accounting guidance and determined that these communities did

Supplemental Financial Data 6 | P a g e  

not meet the criteria for discontinued operations reporting. In May 2014, one of these apartment communities located in Houston, Texas, containing 308 units, was sold for gross proceeds of $71,750 and the Company recognized a gain on the sale of $36,092 for the nine months ended September 30, 2014. In September 2014, the additional two apartment communities located in New York, New York, containing 337 units, were sold for gross proceeds of $270,000 and the Company recognized gains on the sales of $151,733, or $127,659 net of noncontrolling interests, for the three and nine months ended September 30, 2014. The results of operations of these communities were included in continuing operations through their sale dates.

The revenues, expenses and net income, including gains on sales of real estate assets and losses on early extinguishment of indebtedness, associated with these three communities for the three and nine months ended September 30, 2014 and 2013 were as follows:

	Three months  ended               September 30,				Nine months  ended               September 30,
	2014		2013		2014		2013
Revenues
Rental	$	3,463	$	5,669	$	14,003	$	16,804
Other property revenues		15		117		165		319
Total revenues		3,478		5,786		14,168		17,123
Property operating and maintenance expenses		(1,667)		(2,700)		(7,011)		(7,495)
Net operating income		1,811		3,086		7,157		9,628
Other expenses
Depreciation		-		(1,218)		(1,239)		(3,650)
Interest		(1,070)		(1,232)		(3,474)		(3,669)
Amortization of deferred financing costs		(39)		(59)		(158)		(178)
Net loss on extinguishment of indebtedness		(14,070)		-		(14,070)		-
Total other expenses		(15,179)		(2,509)		(18,941)		(7,497)
Gains on sales of real estate assets		151,733		-		187,825		-
Net income	$	138,365	$	577	$	176,041	$	2,131
Net income, net of noncontrolling interest	$	115,918	$	545	$	153,456	$	2,044

In conjunction with the apartment community sales discussed above, the Company prepaid $120,000 of secured mortgage indebtedness in May 2014 and $82,627 of secured mortgage indebtedness in September 2014 using the sale proceeds and available cash. In conjunction with these prepayments, the Company recognized extinguishment losses of $14,070, or $12,333 net of noncontrolling interests, and $18,357, or $16,620 net of noncontrolling interests, related to prepayment premiums and the write off of unamortized deferred loan costs for the three and nine months ended September 30, 2014, respectively.

5) Post Properties, Inc., through its wholly-owned subsidiaries, is the sole general partner, a limited partner and owns a majority interest in Post Apartment Homes, L.P., the Operating Partnership, through which the Company conducts its operations. As of September 30, 2014, there were 54,582 Operating Partnership units outstanding, of which 54,461, or 99.8%, were owned by the Company.

6) Depreciation on consolidated real estate assets is net of the minority interest portion of depreciation on consolidated entities.

7) Since the Company does not add back the depreciation of non-real estate assets in its calculation of FFO, non-real estate related capital expenditures of $1,913 and $569 for the three months and $3,600 and $1,225 for the nine months ended September 30, 2014 and 2013, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.

8) Diluted weighted average shares and units include the impact of dilutive securities totaling 72 and 168 for the three months and 103 and 187 for the nine months ended September 30, 2014 and 2013, respectively. Additionally, basic and diluted weighted average shares and units include the impact of non-vested shares and units totaling 129 and 122 for the three months and 123 and 120 for the nine months ended September 30, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the “two-class method.”

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SAME STORE RESULTS

(In thousands, except per unit data) - (Unaudited)

Same Store Operating Results

The Company defines same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by four communities that were sold in 2014 and 2013. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income and Table 4 on page 26 for a year-to-date margin analysis. The operating performance and capital expenditures of the 48 communities containing 17,714 apartment units which were fully stabilized as of January 1, 2013, are summarized in the table below.

	Three months ended September 30,							Nine months ended September 30,
	2014			2013		% Change		2014		2013		% Change
Revenues:
Rental and other revenue	$	75,230		$	73,337		2.6%	$	222,231	$	216,618		2.6%
Utility reimbursements		2,483			2,479		0.2%		7,301		7,047		3.6%
Total rental and other revenues		77,713			75,816		2.5%		229,532		223,665		2.6%
Property operating and maintenance expenses:
Personnel expenses		6,359	��		5,943		7.0%		18,873		18,161		3.9%
Utility expense		4,371			4,188		4.4%		11,897		11,614		2.4%
Real estate taxes and fees		12,112			11,146		8.7%		35,994		33,155		8.6%
Insurance expenses		1,225			1,190		2.9%		3,678		3,568		3.1%
Building and grounds repairs and maintenance (1)		4,020			4,540		(11.5)%		13,058		12,486		4.6%
Ground lease expense		230			230		-		690		690		-
Other expenses		1,924			1,977		(2.7)%		5,466		5,865		(6.8)%
Total property operating and maintenance expenses (excluding depreciation and amortization)		30,241			29,214		3.5%		89,656		85,539		4.8%
Same store net operating income	$	47,472		$	46,602		1.9%	$	139,876	$	138,126		1.3%
Same store net operating income margin		61.1%			61.5%		(0.4)%		60.9%		61.8%		(0.8)%
Capital expenditures (2)
Annually recurring	$	3,595		$	3,519		2.2%	$	9,420	$	10,254		(8.1)%
Periodically recurring		830			2,092		(60.3)%		3,120		7,596		(58.9)%
Total capital expenditures (A)	$	4,425		$	5,611		(21.1)%	$	12,540	$	17,850		(29.7)%
Total capital expenditures per unit(A ÷ 17,714 units)	$	250		$	317		(21.1)%	$	708	$	1,008		(29.8)%
Average monthly rental rate per unit (3)	$	1,407		$	1,375		2.3%	$	1,393	$	1,362		2.3%
Gross turnover (4)		62.9%			69.3%		(6.4)%		58.7%		62.9%		(4.2)%
Net turnover (5)		56.4%			61.2%		(4.8)%		51.7%		55.2%		(3.5)%
Percentage rent increase - new leases (6)		3.4%			3.5%		(0.1)%		3.2%		3.1%		0.1%
Percentage rent increase - renewed leases (6)		4.8%			4.7%		0.1%		4.8%		5.1%		(0.3)%

1) Building and ground repairs and maintenance includes $7 and $81 for the three months and $1,199 and $281 for the nine months ended September 30, 2014 and 2013, respectively, related to painting of communities.

2) See Table 5 on page 27 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital expenditures and total periodically recurring capital expenditures as presented in the consolidated cash flow statements prepared under GAAP.

3) Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 2 on page 22 and Table 3 on page 24 for further information.

4) Gross turnover represents the percentage of leases expiring during the period that are not renewed by the existing resident(s).

5) Net turnover is gross turnover decreased by the percentage of expiring leases where the resident(s) transfer to a new apartment unit in the same community or in another Post^® community.

6) Percentage change is calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit. Accordingly, these percentage changes may differ from the change in the average monthly rental rate per unit due to the timing of move-ins and/or the term of the respective leases.

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SAME STORE RESULTS (CON’T)

(In thousands, except per unit data) - (Unaudited)

Same Store Operating Results by Market - Comparison of Third Quarter 2014 to Third Quarter 2013

(Increase (decrease) between periods)

	Three months ended											Nine months ended
Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic   Occupancy		Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic   Occupancy
Atlanta		4.8%			2.8%			6.2%			(0.2)%		5.1%			3.9%			6.0%			0.5%
Dallas		2.4%			3.8%			1.3%			0.7%		3.0%			5.6%			1.1%			0.7%
Houston		4.3%			15.0%			(1.9)%			(1.6)%		5.1%			12.7%			0.5%			(0.2)%
Austin		1.5%			1.3%			1.6%			(0.9)%		2.7%			6.9%			(0.4)%			(0.8)%
Washington, D.C.		(0.5)%			3.0%			(2.3)%			0.4%		(1.1)%			5.8%			(4.5)%			(0.1)%
Tampa		2.6%			1.5%			3.3%			0.9%		2.6%			5.6%			0.8%			0.2%
Orlando		(1.2)%			10.1%			(6.9)%			(0.1)%		(1.6)%			2.4%			(3.7)%			0.3%
Charlotte		2.9%			3.6%			2.5%			0.7%		2.3%			(0.9)%			3.9%			0.0%
Total		2.5%			3.5%			1.9%			0.2%		2.6%			4.8%			1.3%			0.3%

1) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

	Apartment   Units		% of NOI    Three months ended   September 30, 2014										Physical Occupancy      at September 30,     2014 (2)		Avg. Rental Rate Per Unit   Three Months   Ended September 30, 2014 (3)
					Average Economic				Average Economic
					Occupancy (1)				Occupancy (1)
					Three months ended				Nine months ended
					September 30,				September 30,
Market					2014		2013		2014		2013
Atlanta		5,065		27.6%		97.4%		97.6%		97.0%		96.5%		96.3%	$	1,347
Dallas		4,725		21.7%		96.8%		96.1%		96.1%		95.4%		96.0%		1,247
Houston		529		2.9%		96.2%		97.8%		96.9%		97.1%		94.0%		1,432
Austin	��	637		3.6%		96.0%		96.9%		95.4%		96.2%		94.0%		1,576
Washington, D.C.		2,301		18.0%		94.3%		93.9%		93.5%		93.6%		93.5%		1,876
Tampa		2,111		12.6%		97.7%		96.8%		97.2%		97.0%		95.7%		1,427
Orlando		598		3.7%		96.8%		96.9%		96.8%		96.5%		96.7%		1,494
Charlotte		1,748		9.8%		97.6%		96.9%		96.5%		96.5%		95.4%		1,267
Total		17,714		100.0%		96.6%		96.4%		96.1%		95.8%		95.6%	$	1,407

1) Average economic occupancy is defined as gross potential rent less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. The calculation of average economic occupancy does not include a deduction for net concessions and employee discounts. Average economic occupancy, including these amounts, would have been 96.2% and 95.9% for the three months and 95.6% and 95.2% for the nine months ended September 30, 2014 and 2013, respectively. For the three months ended September 30, 2014 and 2013, net concessions were $196 and $221, respectively, and employee discounts were $156 and $145, respectively. For the nine months ended September 30, 2014 and 2013, net concessions were $604 and $738, respectively, and employee discounts were $463 and $446, respectively.

2) Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage.

3) Average monthly rental rate is defined as the average of the gross actual rates for occupied units and the anticipated rental rates for unoccupied units divided by total units. See Table 2 on page 22 and Table 3 on page 24 for further information.

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SAME STORE RESULTS (CON’T)

(In thousands, except per unit data) - (Unaudited)

Sequential Same Store Operating Results - Comparison of Third Quarter of 2014 to Second Quarter of 2014

	Three months ended
	September 30,     2014		June 30,         2014		% Change
Revenues:
Rental and other revenue	$	75,230	$	74,220		1.4%
Utility reimbursements		2,483		2,325		6.8%
Total rental and other revenues		77,713		76,545		1.5%
Property operating and maintenance expenses:
Personnel expenses		6,359		6,238		1.9%
Utility expense		4,371		3,424		27.7%
Real estate taxes and fees		12,112		12,019		0.8%
Insurance expenses		1,225		1,225		0.0%
Building and grounds repairs and maintenance (1)		4,020		5,502		(26.9)%
Ground lease expense		230		230		0.0%
Other expenses		1,924		1,821		5.7%
Total property operating and maintenance expenses (excluding depreciation and amortization)		30,241		30,459		(0.7)%
Same store net operating income (2)	$	47,472	$	46,086		3.0%
Average economic occupancy		96.6%		96.2%		0.4%
Average monthly rental rate per unit	$	1,407	$	1,393		1.0%

1) Building and grounds repairs and maintenance includes $7 and $1,192 for the three months ended September 30, 2014 and June 30, 2014, respectively, related to painting of communities.

2) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

Sequential Same Store Operating Results by Market - Comparison of Third Quarter of 2014 to Second Quarter of 2014

(Increase (decrease) between periods)

Market	Revenues		(1)	Expenses		(1)	NOI		(1)	Average Economic      Occupancy
Atlanta		2.1%			(1.9)%			5.0%			0.3%
Dallas		1.8%			1.3%			2.2%			0.9%
Houston		2.0%			(2.7)%			5.5%			(0.8)%
Austin		0.5%			2.9%			(1.3)%			0.6%
Washington, D.C.		0.9%			(0.3)%			1.6%			0.4%
Tampa		1.0%			(7.6)%			6.8%			0.7%
Orlando		(0.1)%			(0.7)%			0.2%			(0.5)%
Charlotte		1.6%			6.7%			(0.6)%			0.7%
Total		1.5%			(0.7)%			3.0%			0.4%

1) See Table 2 on page 22 for a reconciliation of these components of same store net operating income and Table 1 on page 21 for a reconciliation of same store net operating income to GAAP net income.

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DEBT SUMMARY

(In thousands) - (Unaudited)

Summary of Outstanding Debt at September 30, 2014 - Consolidated

			Percentage	Weighted Average Rate (1)
Type of Indebtedness	Balance		of Total Debt
Unsecured fixed rate senior notes	$	400,000	44.8%	3.9%
Unsecured bank term loan		300,000	33.6%	3.2%
Secured fixed rate notes		193,170	21.6%	6.0%
	$	893,170	100.0%	4.1%
	Balance		Percentage of Total Debt	Weighted Average Maturity (2)
Total fixed rate debt	$	893,170	100.0%	4.8
Total variable rate debt - unhedged		-	0.0%	0.0
Total debt	$	893,170	100.0%	4.8

Debt Maturities - Consolidated and Unconsolidated

	Consolidated				Unconsolidated Entities
Aggregate debt maturities by year	Amount			Weighted Avg.  Rate on Debt Maturities (1)	Amount		Company     Share		Weighted Avg.  Rate on Debt Maturities (1)
Remainder of 2014	$	711		6.0%	$	-	$	-	-
2015		2,922		6.0%		-		-	-
2016		3,071	(3)	6.0%		-		-	-
2017		153,296		4.8%		85,723		21,431	5.6%
2018		303,502		3.3%		41,000		10,250	5.7%
Thereafter		429,668		4.5%		51,000		17,850	3.5%
	$	893,170		4.1%	$	177,723	$	49,531	5.0%

Debt Statistics

	Nine months ended              September 30,
	2014	2013
Interest coverage ratio (4)(5)	4.5x	4.1x
Interest coverage ratio (including capitalized interest) (4)(5)	4.2x	3.8x
Fixed charge coverage ratio (4)(6)	4.2x	3.8x
Fixed charge coverage ratio (including capitalized interest) (4)(6)	3.9x	3.5x
Total debt to annualized income available for debt service ratio (7)	4.7x	5.9x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)	30.3%	35.5%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)	31.7%	36.8%

1) Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at September 30, 2014 are based on the debt outstanding at that date. Weighted average interest rate of the unsecured bank term loan represents the effective fixed interest rate based on outstanding borrowings as of September 30, 2014, after considering the impact of interest rate swap arrangements that hedge this debt.

2) Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.

3) Includes $0 outstanding on unsecured revolving lines of credit maturing in 2016. At September 30, 2014, the Company’s lines of credit bear interest at LIBOR plus 1.225%.

4) Calculated for the nine months ended September 30, 2014 and 2013.

5) Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and interest expense to consolidated interest expense is included in Table 7 on page 28.

6) Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders. The calculation of the fixed charge coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and fixed charges to consolidated interest expense plus dividends to preferred shareholders is included in Table 7 on page 28.

7) A computation of this ratio is included in Table 7 on page 28.

8) A computation of these debt ratios is included in Table 6 on page 27.

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Senior Unsecured Public Notes Debt Ratings

Moody’s - Baa2 (stable)

Standard & Poor’s - BBB (stable)

Financial Debt Covenants - Senior Unsecured Public Notes

Covenant requirement (1)	As of     September 30, 2014
Consolidated Debt to Total Assets cannot exceed 60%		28%
Secured Debt to Total Assets cannot exceed 40%		6%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		4.3x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		4.5x
Ratio of Consolidated Debt to Total Assets
	As of     September 30, 2014
Consolidated debt, per balance sheet (A)	$	893,170
Total assets, as defined(B) (Table A)	$	3,228,419
Computed ratio(A÷B)		28%
Required ratio (cannot exceed)		60%
Ratio of Secured Debt to Total Assets
Total secured debt (C)	$	193,170
Computed ratio(C÷B)		6%
Required ratio (cannot exceed)		40%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	893,170
Total secured debt (C)		(193,170)
Total unsecured debt(D)	$	700,000
Total unencumbered assets, as defined(E) (Table A)	$	3,016,449
Computed ratio(E÷D)		4.3x
Required minimum ratio		1.5x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge (Annualized)
Consolidated Income Available for Debt Service, as defined(F) (Table B)	$	201,008
Annual Debt Service Charge, as defined(G) (Table B)	$	44,483
Computed ratio(F÷G)		4.5x
Required minimum ratio		1.5x

1) A summary of the public debt covenant calculations and reconciliations of the financial components used in the public debt covenant calculations to the most comparable GAAP financial measures is detailed below.

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DEBT SUMMARY (CON’T)

(In thousands) - (Unaudited)

Table A

Calculation of Total Assets and Total Unencumbered Assets for Public Debt Covenant Computations

	As of            September 30,            2014
Total real estate assets	$	2,118,469
Add:
Investments in and advances to unconsolidated real estate entities		4,095
Accumulated depreciation		916,555
Other tangible assets		189,300
Total assets for public debt covenant computations		3,228,419
Less:
Encumbered real estate assets		(207,875)
Investments in and advances to unconsolidated real estate entities		(4,095)
Total unencumbered assets for public debt covenant computations	$	3,016,449

Table B

Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge - Annualized (1)

Consolidated income available for debt service	Nine months ended     September 30, 2014
Net income	$	218,679
Add:
Depreciation		63,614
Depreciation and amortization (company share) - unconsolidated entities		904
Amortization of deferred financing costs		1,853
Interest expense		31,535
Interest expense (company share) - unconsolidated entities		1,827
Income tax expense, net		586
Other non-cash (income) expense, net		3,088
Net loss on extinguishment of indebtedness		18,357
Less:
Gains on sales of apartment communities		(187,825)
Gains on condominium sales activities, net		(1,862)
Consolidated income available for debt service	$	150,756
Consolidated income available for debt service (annualized)	$	201,008
Annual debt service charge
Consolidated interest expense	$	31,535
Interest expense (company share) - unconsolidated entities		1,827
Debt service charge	$	33,362
Debt service charge (annualized)	$	44,483

1) The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2014 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants.

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SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENTAND

LAND HELD FOR FUTURE INVESTMENT

(In millions, except units, square footage and acreage) - (Unaudited)

Communities Under Development

Community	Location	Number    of Units		Estimated Average Unit Size Sq. Ft. (1)		Estimated Retail Sq. Ft. (1)		Estimated Total Cost (2)		Estimated Total Cost Per Sq. Ft. (3)		Costs Incurred as of    9/30/2014		Quarter of First Units Available	Estimated Quarter of Stabilized Occup. (4)	Percent Leased (5)
Substantially complete, in lease-up
Post 510™	Houston, TX		242		857		-	$	34.8	$	168	$	34.4	1Q 2014	1Q 2015	75.2%
Under construction
Post Soho Square™	Tampa, FL		231		880		10,556		39.8		196		37.0	2Q 2014	1Q 2015	83.1%
Post Alexander™, II	Atlanta, GA		340		830		-		75.5		268		30.6	2Q 2015	4Q 2016	N/A
Post Galleria™	Houston, TX		388		867		-		80.7		240		17.1	3Q 2016	4Q 2017	N/A
Post Parkside™ at Wade, II	Raleigh, NC		391		872		-		53.0		155		8.5	1Q 2016	2Q 2017	N/A
Total			1,592				10,556	$	283.8			$	127.6

1) Square footage amounts are approximate. Actual square footage may vary.

2) To the extent that developments contain a retail component, total estimated cost includes estimated first generation tenant improvements and leasing commissions. For stabilized apartment communities, remaining unfunded construction costs include first generation retail tenant improvements and leasing commissions.

3) The estimated total cost per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage amounts used are approximate. Actual amounts may vary.

4) The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy or (ii) one year after completion of construction.

5) Represents unit status as of October 27, 2014.

Land Held for Future Investment

The following are land positions (including pre-development costs incurred to date) that the Company currently holds. There can be no assurance that projects held for future investment will be developed in the future or at all.

Project	Metro Area	Carrying Value         At September 30, 2014         (in thousands)		Estimated Usable       Acreage
Centennial Park	Atlanta, GA	$	18,858		5.6
South Lamar II	Austin, TX		8,492		3.0
Frisco Bridges II	Dallas, TX		5,480		5.4
Wade	Raleigh, NC		3,297		26.6
Midtown	Atlanta, GA		2,775		1.0
Other land parcels	Atlanta, GA		2,787		10.2
Total Land Held for Future Investment		$	41,689		51.8

Acquisition/Disposition Activity

		Quarter		Est. Avg.		Year		Est. Total	Cap Rate
		Acquired /		Unit Size	Retail	Completed/	Gross Price	Price Per
Property Name	Location	Disposed	Units	Sq. Ft. (1)	Sq. Ft.	Renovated	(thousands) (2)	Sq. Ft. (3)
Acquisitions
Post Lakeside™	Orlando, FL	Q2 2013	300	1,070	-	2013	$          48,500	$       151	5.2%(4)
Dispositions
Post Renaissance®	Atlanta, GA	Q4 2013	342	914	-	1992-94	$          47,500	$       152	5.4%(5)
Post Rice Lofts™	Houston, TX	Q2 2014	308	904	44,734	1913 / 1998	71,750	$       222	5.3%(5)
Post Luminaria™ (6)	New York, NY	Q3 2014	138	721	9,386	2002	111,500	$    1,024	3.1%(5)
Post Toscana™	New York, NY	Q3 2014	199	817	11,700	2003	158,500	$       909	2.7%(5)
							$        389,250

1) Square footage amounts are approximate. Actual square footage may vary.

2) Excludes transaction costs and planned up front capital expenditures, if any.

3) The estimated total price per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage amounts used are approximate. Actual amounts may vary.

4) Based on projected first twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit). Also includes the impact of transaction costs and planned up front capital expenditures, if any.

5) Based on trailing twelve-month net operating income after adjustments for management fee (3%) and capital reserves ($300/unit).

6) The Company owned 68% of Post Luminaria™.

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CAPITALIZED COSTS SUMMARY

(In thousands) - (Unaudited)

The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development, construction and rehabilitation of apartment communities. In addition, the Company capitalizes expenditures that enhance the value of existing assets and expenditures that substantially extend the life of existing assets. All other expenditures necessary to maintain a community in ordinary operating condition are expensed as incurred.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment communities under development, construction, and major rehabilitation. The internal personnel and associated costs are capitalized to the projects under development based upon the effort identifiable with such projects. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the commencement of leasing and sales activities, interest and other construction costs are capitalized and are reflected on the balance sheet as construction in progress. The Company ceases the capitalization of such costs as the residential units in a community become substantially complete and available for occupancy. This results in a proration of these costs between amounts that are capitalized and expensed as the residential units in a development community become available for occupancy. In addition, prior to the completion of units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing and property management and leasing personnel expenses) of such communities.

A summary of community acquisition and development improvements and other capitalized expenditures for the three and nine months ended September 30, 2014 and 2013 is provided below.

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
New community development and acquisition activity (1)	$	15,321	$	21,760	$	48,968	$	147,159
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		2,223		1,800		5,561		4,213
Other community additions and improvements (3)		1,443		2,890		6,052		11,217
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		3,911		4,128		10,126		11,493
Corporate additions and improvements		1,913		569		3,600		1,225
	$	24,811	$	31,147	$	74,307	$	175,307
Other Data
Capitalized interest	$	745	$	1,026	$	2,345	$	3,122
Capitalized development and associated costs (5)	$	784	$	737	$	1,785	$	2,163

1) Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years.

2) Represents expenditures for community rehabilitations and other unit upgrade costs that enhance the rental value of such units.

3) Represents community improvement expenditures (e.g. property upgrades) that generally occur less frequently than on an annual basis.

4) Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis.

5) Reflects internal personnel and associated costs capitalized to construction and development activities.

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INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

(In thousands) - (Unaudited)

The Company holds investments in limited liability companies (the “Property LLCs”) with institutional investors and accounts for its investments in these Property LLCs using the equity method of accounting. A summary of non-financial and financial information for the Property LLCs is provided below.

Non-Financial Data
Joint Venture Property	Location	Property     Type	# of Units	Ownership     Interest
Post Collier Hills® (1)	Atlanta, GA	Apartments	396	25%
Post Crest® (1)	Atlanta, GA	Apartments	410	25%
Post Lindbergh® (1)	Atlanta, GA	Apartments	396	25%
Post Massachusetts Avenue™	Washington, D.C.	Apartments	269	35%

Financial Data
	As of September 30, 2014										Three months ended September 30, 2014							Nine months ended September 30, 2014
Joint Venture Property	Gross Investment in   Real Estate (6)		Mortgage   Notes Payable			Entity     Equity		Company’s     Equity Investment			Entity     NOI		Company’s Equity in Income (Loss)		Mgmt. Fees & Other			Entity NOI		Company’s Equity in   Income (Loss)		Mgmt.   Fees &   Other
Post Collier Hills® (1)	$	56,073	$	39,565	(2)	$	8,226	$	(4,725)	(1)	$	660	$	(9)				$	2,118	$	13
Post Crest® (1)		65,135		46,158	(2)		8,584		(7,261)	(1)		773		(6)					2,486		29
Post Lindbergh® (1)		61,828		41,000	(3)		12,264		(4,668)	(1)		683		(16)					2,197		(7)
Post Massachusetts Avenue™		72,721		51,000	(4)		4,025		4,095			1,899		453					5,681		1,373
Total	$	255,757	$	177,723		$	33,099	$	(12,559)		$	4,015	$	422	$	219	(5)	$	12,482	$	1,408	$	648	(5)

1) The Company’s investment in the 25% owned Property LLC resulted from the transfer of three previously owned apartment communities to the Property LLC co-owned with an institutional investor. The assets, liabilities and members’ equity of the Property LLC were recorded at fair value based on agreed-upon amounts contributed to the venture. The credit investments in the Company’s 25% owned Property LLC resulted from financing proceeds distributed in excess of the Company’s historical cost-basis investment. These credit investments are reflected in consolidated liabilities on the Company’s consolidated balance sheet.

2) These notes bear interest at a fixed rate of 5.63% and mature in June 2017.

3) This note bears interest at a fixed rate of 5.71% and matures in January 2018, at which time it will be automatically extended for a one-year term at a variable interest rate.

4) This note bears interest at a fixed rate of 3.5% and matures in February 2019. The note is prepayable without penalty beginning in February 2017.

5) Amounts include net property and asset management fees to the Company included in “Other Revenues” in the Company’s consolidated statements of operations.

6) Represents GAAP basis net book value plus accumulated depreciation.

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NET ASSET VALUE SUPPLEMENTAL INFORMATION (1)

(In thousands, except unit data, commercial square feet and stock price) - (Unaudited)

Financial Data

Income Statement Data	Three months ended     September 30, 2014		Adjustments			As     Adjusted  (3)
Rental revenues	$	90,751	$	(4,179)	(2)	$	86,572
Other property revenues		5,476		(24)	(2)		5,452
Total rental and other revenues(A)		96,227		(4,203)			92,024
Property operating & maintenance expenses
(excluding depreciation and amortization)(B)		41,675		(6,256)	(2)		35,419
Property net operating income (Table 1)(A-B)	$	54,552	$	2,053		$	56,605
Assumed property management fee
(calculated at 3% of revenues)(A x 3%)							(2,761)
Assumed property capital expenditure reserve
($300 per unit per year based on 19,981 units)							(1,499)
Adjusted property net operating income						$	52,345
Annualized property net operating income(C)						$	209,380
Apartment units represented(D)		22,650		(2,669)	(2)		19,981
Other Asset Data	As of September 30, 2014		Adjustments			As Adjusted
Cash & equivalents	$	160,520	$	-		$	160,520
Real estate assets under construction, at cost (4)		70,878		56,644	(4)		127,522
Land held for future investment		41,689		-			41,689
Investments in and advances to unconsolidated real estate entities (5)		4,095		(4,095)	(5)		-
Restricted cash and other assets		34,862		-			34,862
Cash & other assets of unconsolidated apartment entities (6)		6,296		(4,578)	(6)		1,718
Total(E)	$	318,340	$	47,971		$	366,311
Other Liability Data
Indebtedness	$	893,170	$	-		$	893,170
Investments in unconsolidated real estate entities (5)		16,654		(16,654)	(5)		-
Other liabilities (including noncontrolling interests) (7)		117,136		(8,662)	(7)		108,474
Total liabilities of unconsolidated apartment entities (8)		181,206		(130,744)	(8)		50,462
Total(F)	$	1,208,166	$	(156,060)		$	1,052,106
Other Data
	As of September 30, 2014
	# Shares/Units		Stock Price			Implied Value
Liquidation value of preferred shares(G)						$	43,392
Common shares outstanding		54,461
Common units outstanding		121
Total(H)		54,582	$	51.34		$	2,802,240
Implied market value of Company gross real estate assets(I) = (F+G+H-E)						$	3,531,427
Implied Portfolio Capitalization Rate(C÷I)							5.9%

1) 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 NOI for the third quarter ended September 30, 2014, for properties stabilized as of July 1, 2014, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of July 1, 2014, are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.

Supplemental Financial Data 17 | P a g e  

2) The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2014, to adjust property net operating income to the Company’s share for fully stabilized communities:

	Rental Revenue			Other Revenue			Expenses			Units
Communities in lease-up	$	(841	)	$	(94	)	$	(822	)		(1,592	)
Company share of unconsolidated entities		1,934			134			791			(1,077	)
Communities sold during the period		(3,463	)		(15	)		(1,667	)		-
Corporate property management expenses		-			-			(2,994	)		-
Corporate apartments and other		(1,809	)		(49	)		(1,564	)		-
	$	(4,179	)	$	(24	)	$	(6,256	)		(2,669	)

3) The following table summarizes the Company’s share of the “As Adjusted” components of property net operating income, apartment units and commercial square feet by market for the three months ended September 30, 2014:

	Rental and Other Revenues		Property Operating Maintenance Expenses (ex. Depr. and Amort.)		Property Net     Operating Income (NOI)		Percentage of     Total NOI			Apartment Units /     Commercial Sq. Ft.
Atlanta	$	22,877	$	9,011	$	13,866		24.4	%		5,365
Dallas		18,297		7,985		10,312		18.2	%		4,725
Houston		2,983		1,223		1,760		3.1	%		653
Austin		4,429		2,012		2,417		4.3	%		935
Washington, D.C.		16,476		5,705		10,771		19.0	%		2,739
Tampa		9,448		3,465		5,983		10.6	%		2,111
Orlando		5,809		2,142		3,667		6.5	%		1,308
Charlotte		6,889		2,216		4,673		8.3	%		1,748
Raleigh		1,142		418		724		1.3	%		397
Commercial		3,674		1,242		2,432		4.3	%		-
Total	$	92,024	$	35,419	$	56,605		100.0	%		19,981
Approximate commercial Sq. Ft.											679,000

4) The “As Adjusted” amount represents the CIP balance, adjusted for costs of completed apartment units, as follows:

Post 510™	$                34,373
Post Soho Square™		37,004
Post Alexander™ - Phase II		30,565
Post Parkside™ at Wade - Phase II		8,487
Post Galleria™		17,093
	$	127,522

5) The adjustments reflect reductions for assets held for sale and the investments in unconsolidated entities, as the net operating income of the held for sale assets and the Company’s respective share of net operating income of such investments in unconsolidated entities is included in the adjusted net operating income reflected above.

6) The “As of September 30, 2014” amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment entities.

7) The “As of September 30, 2014” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses and security deposits and prepaid rents 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 $8,662.

8) The “As of September 30, 2014” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partners’ respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.

Supplemental Financial Data 18 | P a g e  

NON-GAAP FINANCIAL MEASURES AND OTHER DEFINED TERMS

Definitions of Supplemental Non-GAAP Financial Measures and Other Defined Terms

The Company uses certain non-GAAP financial measures and other defined terms in this Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

Funds from Operations - The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (losses) from extraordinary items and sales of depreciable operating property, plus depreciation and amortization of real estate assets, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO presented in the Company’s press release and Supplemental Financial Data is not necessarily comparable to FFO presented by other real estate companies because not all real estate companies use the same definition. The Company’s FFO is comparable to the FFO of real estate companies that use the current NAREIT definition.

Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance. In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.

Adjusted Funds From Operations - The Company also uses adjusted funds from operations (“AFFO”) as an operating measure. AFFO is defined as FFO less operating capital expenditures after adjusting for the impact of non-cash straight-line long-term ground lease expense, non-cash impairment charges, debt extinguishment gains (losses) and preferred stock redemption costs. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund operating capital expenditures through earnings. In addition, since most equity REITs provide AFFO information to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to AFFO.

Property Net Operating Income - The Company uses property NOI, including same store NOI and same store NOI by market, as an operating measure. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store groupings and individual properties. Additionally, the Company believes that NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to NOI.

Supplemental Financial Data 19 | P a g e  

Same Store Capital Expenditures - The Company uses same store annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The Company believes that same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its same store communities on an ongoing basis. The corresponding GAAP measures include information with respect to the Company’s other operating segments consisting of newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties in addition to same store information. Therefore, the Company believes that the Company’s presentation of same store annually recurring and periodically recurring capital expenditures is necessary to demonstrate same store replacement costs over time. The Company believes that the most directly comparable GAAP measure to same store annually recurring and periodically recurring capital expenditures is the line on the Company’s consolidated statements of cash flows entitled “property capital expenditures,” which also includes revenue generating capital expenditures.

Debt Statistics and Debt Ratios - The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s senior unsecured notes. In addition, the Company presents these measures because the degree of leverage could affect the Company’s ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The Company uses these measures internally as an indicator of liquidity, and the Company believes that these measures are also utilized by the investment and analyst communities to better understand the Company’s liquidity.

The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Company’s calculation thereof may not be comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.

Property Operating Statistics - The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property operating performance. The Company defines average economic occupancy as gross potential rent less vacancy losses, model expenses and bad debt expenses divided by gross potential rent for the period, expressed as a percentage. Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post^® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.

Supplemental Financial Data 20 | P a g e  

RECONCILIATIONS OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES

Table 1 - Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income

(In thousands) - (Unaudited)

	Three months ended						Nine months ended
	September 30,     2014		September 30,     2013		June 30,     2014		September 30,     2014		September 30,     2013
Total same store NOI	$	47,472	$	46,602	$	46,086	$	139,876	$	138,126
Property NOI from held for sale and sold - residential		1,651		2,687		2,267		6,390		8,381
Property NOI from held for sale and sold - commercial		160		399		307		767		1,247
Property NOI from other operating segments		5,269		3,215		4,348		13,224		4,887
Consolidated property NOI		54,552		52,903		53,008		160,257		152,641
Add (subtract):
Interest income		78		8		4		94		67
Other revenues		234		225		223		676		668
Depreciation		(21,018)		(21,580)		(20,829)		(63,614)		(63,694)
Interest expense		(9,858)		(11,186)		(10,433)		(31,535)		(33,280)
Amortization of deferred financing costs		(588)		(646)		(620)		(1,853)		(1,915)
General and administrative		(4,784)		(4,079)		(3,966)		(12,878)		(12,494)
Investment and development		(555)		(367)		(794)		(2,160)		(1,448)
Other investment costs		(224)		(418)		(210)		(707)		(1,239)
Severance, impairment and other		(344)		(1,981)		(502)		(1,753)		(1,981)
Gains on condominium sales activities, net		1,052		5,293		-		1,862		27,468
Equity in income of unconsolidated real estate entities, net		422		656		501		1,408		1,611
Other income (expense), net		(195)		(196)		(196)		(586)		(644)
Net loss on extinguishment of indebtedness		(14,070)		-		(4,287)		(18,357)		-
Income from continuing operations, before gains on sales of real estate assets		4,702		18,632		11,899		30,854		65,760
Gains on sales of real estate assets		151,733		-		36,092		187,825		-
Income from discontinued operations		-		421		-		-		1,297
Net income	$	156,435	$	19,053	$	47,991	$	218,679	$	67,057

Supplemental Financial Data 21 | P a g e  

Table 2 - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market

(In thousands, except average rental rates)

	Three months ended						Q3 ‘14 vs. Q3 ‘13   % Change		Q3 ‘14 vs. Q2 ‘14   % Change		Q3 ‘14 % Same   Store NOI
	September 30,       2014		September 30,       2013		June 30,       2014
Rental and other revenues
Atlanta	$	21,762	$	20,764	$	21,305		4.8%		2.1%
Dallas		18,297		17,867		17,970		2.4%		1.8%
Houston		2,339		2,242		2,293		4.3%		2.0%
Austin		3,052		3,008		3,036		1.5%		0.5%
Washington, D.C.		13,156		13,226		13,037		(0.5)%		0.9%
Tampa		9,448		9,207		9,350		2.6%		1.0%
Orlando		2,770		2,804		2,774		(1.2)%		(0.1)%
Charlotte		6,889		6,698		6,780		2.9%		1.6%
Total rental and other revenues		77,713		75,816		76,545		2.5%		1.5%
Property operating and maintenance   expenses (exclusive of depreciation   and amortization)
Atlanta		8,597		8,363		8,767		2.8%		(1.9)%
Dallas		7,985		7,691		7,881		3.8%		1.3%
Houston		950		826		976		15.0%		(2.7)%
Austin		1,366		1,348		1,328		1.3%		2.9%
Washington, D.C.		4,627		4,493		4,640		3.0%		(0.3)%
Tampa		3,465		3,415		3,748		1.5%		(7.6)%
Orlando		1,035		940		1,042		10.1%		(0.7)%
Charlotte		2,216		2,138		2,077		3.6%		6.7%
Total		30,241		29,214		30,459		3.5%		(0.7)%
Net operating income
Atlanta		13,165		12,401		12,538		6.2%		5.0%		27.6%
Dallas		10,312		10,176		10,089		1.3%		2.2%		21.7%
Houston		1,389		1,416		1,317		(1.9)%		5.5%		2.9%
Austin		1,686		1,660		1,708		1.6%		(1.3)%		3.6%
Washington, D.C.		8,529		8,733		8,397		(2.3)%		1.6%		18.0%
Tampa		5,983		5,792		5,602		3.3%		6.8%		12.6%
Orlando		1,735		1,864		1,732		(6.9)%		0.2%		3.7%
Charlotte		4,673		4,560		4,703		2.5%		(0.6)%		9.8%
Total same store NOI	$	47,472	$	46,602	$	46,086		1.9%		3.0%		100.0%
Average rental rate per unit
Atlanta	$	1,347	$	1,281	$	1,323		5.2%		1.8%
Dallas		1,247		1,225		1,240		1.8%		0.6%
Houston		1,432		1,351		1,396		6.0%		2.6%
Austin		1,576		1,535		1,566		2.7%		0.6%
Washington, D.C.		1,876		1,896		1,871		(1.1)%		0.2%
Tampa		1,427		1,400		1,418		1.9%		0.6%
Orlando		1,494		1,513		1,492		(1.3)%		0.1%
Charlotte		1,267		1,237		1,255		2.4%		1.0%
Total average rental rate per unit		1,407		1,375		1,393		2.3%		1.0%

Supplemental Financial Data 22 | P a g e  

Table 2 (con’t) - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market

(In thousands, except average rental rates)

	Nine months ended
	September 30,                  2014		September 30,                  2013		% Change
Rental and other revenues
Atlanta	$	63,913	$	60,784		5.1%
Dallas		54,073		52,500		3.0%
Houston		6,888		6,552		5.1%
Austin		9,075		8,836		2.7%
Washington, D.C.		39,016		39,465		(1.1)%
Tampa		28,049		27,341		2.6%
Orlando		8,253		8,383		(1.6)%
Charlotte		20,265		19,804		2.3%
Total rental and other revenues		229,532		223,665		2.6%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		25,454		24,494		3.9%
Dallas		23,531		22,289		5.6%
Houston		2,796		2,480		12.7%
Austin		4,039		3,778		6.9%
Washington, D.C.		13,755		13,000		5.8%
Tampa		10,630		10,062		5.6%
Orlando		3,041		2,971		2.4%
Charlotte		6,410		6,465		(0.9)%
Total		89,656		85,539		4.8%
Net operating income
Atlanta		38,459		36,290		6.0%
Dallas		30,542		30,211		1.1%
Houston		4,092		4,072		0.5%
Austin		5,036		5,058		(0.4)%
Washington, D.C.		25,261		26,465		(4.5)%
Tampa		17,419		17,279		0.8%
Orlando		5,212		5,412		(3.7)%
Charlotte		13,855		13,339		3.9%
Total same store NOI	$	139,876	$	138,126		1.3%
Average rental rate per unit
Atlanta	$	1,324	$	1,263		4.8%
Dallas		1,240		1,212		2.3%
Houston		1,401		1,328		5.5%
Austin		1,564		1,511		3.5%
Washington, D.C.		1,872		1,894		(1.2)%
Tampa		1,416		1,386		2.2%
Orlando		1,490		1,514		(1.6)%
Charlotte		1,256		1,224		2.6%
Total average rental rate per unit		1,393		1,362		2.3%

Supplemental Financial Data 23 | P a g e  

Table 3 - Operating Community Table

Market / Submarket / Community	Yr. Completed / Yr. of Substantial           Renovations	No. of           Units		Avg. Unit Size     (Sq. Ft.)		Q3 2014 Avg. Monthly Rent				Q3 2014 Average Economic     Occ.
						Per     Unit		Per     Sq. Ft.
Atlanta
Buckhead / Brookhaven
Post Alexander™	2008		307		1,015	$	1,770	$	1.74		97.7%
Post Brookhaven®	1990-1992		735		933		1,200		1.29		98.2%
Post Chastain®	1990/2008		558		866		1,316		1.52		97.3%
Post Collier Hills® (1)(2)	1997		396		948		1,168		1.23		94.6%
Post Gardens®	1998		397		1,039		1,327		1.28		96.4%
Post Glen® (2)	1997		314		1,076		1,351		1.26		98.2%
Post Lindbergh® (1)(2)	1998		396		909		1,215		1.34		97.8%
Post Peachtree Hills®	1992-1994/2009		300		978		1,442		1.47		98.4%
Post StratfordTM	2000		250		1,000		1,413		1.41		96.1%
Dunwoody
Post Crossing® (2)	1995		354		1,036		1,223		1.18		97.7%
Emory Area
Post BriarcliffTM (2)	1999		688		1,006		1,298		1.29		97.2%
Midtown
Post ParksideTM	2000		188		886		1,600		1.81		98.9%
Northwest Atlanta
Post Crest® (1)(2)	1996		410		1,033		1,127		1.09		99.6%
Post Riverside®	1998		522		1,059		1,569		1.48		96.2%
Post SpringTM	2000		452		977		1,065		1.09		97.8%
Dallas
North Dallas
Post Addison CircleTM	1998-2000		1,334		846		1,103		1.30		97.0%
Post EastsideTM	2008		435		912		1,232		1.35		95.6%
Post Legacy	2000		384		810		1,105		1.36		97.0%
Post Sierra at Frisco Bridges™	2009		268		896		1,149		1.28		95.9%
Uptown Dallas
Post AbbeyTM	1996		34		1,223		2,079		1.70		96.7%
Post Cole’s CornerTM	1998		186		800		1,205		1.51		96.7%
Post GalleryTM	1999		34		2,307		3,002		1.30		96.7%
Post HeightsTM	1998-1999/2009		368		845		1,368		1.62		96.1%
Post Katy Trail™	2010		227		898		1,634		1.82		97.5%
Post MeridianTM	1991		133		780		1,362		1.75		97.1%
Post SquareTM	1996		216		856		1,368		1.60		96.6%
Post Uptown VillageTM	1995-2000		496		736		1,155		1.57		97.8%
Post VineyardTM	1996		116		733		1,196		1.63		95.3%
Post VintageTM	1993		160		750		1,258		1.68		96.9%
Post WorthingtonTM	1993/2008		334		820		1,480		1.81		97.5%
Houston
Post 510™ (3)	2014		242		857		1,688		1.97		53.4%
Post Midtown Square® - Phases I & II	1999-2000		529		759		1,432		1.89		96.2%
Post Midtown Square® - Phase III	2012		124		889		1,799		2.02		94.3%

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Table 3 (con’t) - Operating Community Table

Market / Submarket / Community	Yr. Completed / Yr. of Substantial           Renovations	No. of           Units		Avg. Unit Size     (Sq. Ft.)		Q3 2014 Avg. Monthly Rent				Q3 2014 Average Economic     Occ.
						Per     Unit		Per     Sq. Ft.
Austin
Post Barton Creek™	1998		160		1,162	$	1,808	$	1.56		96.1%
Post Park Mesa™	1992		148		1,091		1,521		1.39		95.5%
Post South Lamar™	2012		298		853		1,604		1.88		92.4%
Post West Austin™	2009		329		889		1,488		1.67		96.2%
Washington D.C.
Maryland
Post Fallsgrove	2003		361		983		1,725		1.76		95.7%
Post Park®	2010		396		975		1,662		1.70		93.4%
Virginia
Post Carlyle Square™ - Phase I	2006		205		861		2,363		2.74		92.2%
Post Carlyle Square™ - Phase II	2012		344		906		2,449		2.70		89.2%
Post Corners at Trinity Centre (2)	1996		336		994		1,619		1.63		94.3%
Post Pentagon RowTM	2001		504		853		2,285		2.68		93.6%
Post Tysons CornerTM	1990		499		807		1,714		2.12		95.9%
Washington D.C.
Post Massachusetts AvenueTM (1)(2)	2002		269		883		3,308		3.75		93.5%
Tampa
Post Bay at Rocky Point™	1997		150		1,012		1,427		1.41		96.5%
Post Harbour PlaceTM	1999-2002		578		920		1,554		1.69		98.4%
Post Hyde Park® (2)	1996-2008		467		1,011		1,505		1.49		97.8%
Post Rocky Point®	1996-1998		916		1,031		1,307		1.27		97.2%
Post Soho Square™ (3)	2014		231		880		1,637		1.86		19.4%
Orlando
Post Lake® at Baldwin Park	2004-2007		350		1,013		1,491		1.47		96.5%
Post Lake® at Baldwin Park - Phase III	2013		410		960		1,495		1.56		95.1%
Post Lakeside™	2013		300		1,070		1,328		1.24		98.7%
Post ParksideTM	1999		248		867		1,498		1.73		97.2%
Charlotte
Post Ballantyne	2004		323		1,252		1,209		0.97		95.9%
Post Gateway PlaceTM	2000		436		804		1,134		1.41		97.9%
Post Park at Phillips Place®	1998		402		1,101		1,422		1.29		97.8%
Post South End™	2009		360		847		1,343		1.59		98.2%
Post Uptown PlaceTM	2000		227		800		1,208		1.51		97.7%
Raleigh
Post Parkside™ at Wade - Phase I	2013		397		875		1,030		1.18		94.4%

1) Communities held in unconsolidated entities.

2) Communities encumbered by secured mortgage indebtedness.

3) During the period, these communities, or portions thereof, were in lease-up.

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Table 4 - Year-to-Date Margin Analysis

(In thousands)

	Nine months ended September 30, 2014
	Rental and Other Property Revenues		Property Operating &     Maintenance     Expenses		Net     Operating     Income (“NOI”)		NOI     Margin		Expense     Margin
Same store communities	$	229,532	$	89,656	$	139,876		60.9%		39.1%
Newly stabilized communities		13,024		5,007		8,017		61.6%		38.4%
Lease-up communities		8,355		4,657		3,698		N/A		N/A
Acquired communities		3,715		1,402		2,313		62.3%		37.7%
Held for sale and sold communities		14,168		7,011		7,157		50.5%		49.5%
Other property segments:
Corporate apartments		4,658		3,775		883		19.0%		81.0%
Commercial		10,871		3,739		7,132		65.6%		34.4%
Corporate property management expenses (1)		-		8,819		(8,819)
	$	284,323	$	124,066
Consolidated property NOI (2)					$	160,257
Third-party management fees					$	648

1) The following table summarizes the Company’s net property management expense as a percentage of adjusted property revenues:

Numerator:
Corporate property management expenses	$	8,819
Less: Third-party management fees		(648)
Net property management expenses	$	8,171
Denominator:
Total rental and other property revenues	$	284,323
Less: Corporate apartment revenues		(4,658)
Adjusted property revenues	$	279,665
Net property management expenses as     a percentage of adjusted property revenues		2.9%

2) Consolidated property NOI is a non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of consolidated property NOI to GAAP net income.

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Table 5 - Reconciliation of Segment Cash Flow Data to Statements of Cash Flows

(In thousands)

	Three months ended September 30,				Nine months ended September 30,
	2014		2013		2014		2013
Annually recurring capital expenditures by operating segment
Same store communities	$	3,595	$	3,519	$	9,420	$	10,254
Newly stabilized communities		34		14		70		31
Lease-up communities		40		6		53		14
Acquired communities		47		54		65		55
Held for sale and sold communities		134		294		275		642
Commercial and other segments		61		241		243		497
Total annually recurring capital expenditures	$	3,911	$	4,128	$	10,126	$	11,493
Periodically recurring capital expenditures by operating segment
Same store communities	$	830	$	2,092	$	3,120	$	7,596
Newly stabilized communities		14		5		20		11
Lease-up communities		-		5		10		9
Acquired communities		22		3		36		4
Held for sale and sold communities		175		201		614		2,345
Commercial and other segments		402		584		2,252		1,252
Total periodically recurring capital expenditures	$	1,443	$	2,890	$	6,052	$	11,217
Total revenue generating capital expenditures	$	2,223	$	1,800	$	5,561	$	4,213
Decrease (increase) in capital expenditure accruals	$	185	$	273	$	295	$	(842)
Total property capital expenditures per statements of cash flows	$	7,762	$	9,091	$	22,034	$	26,081

Table 6 - Computation of Debt Ratios

(In thousands)

	As of September 30,
	2014		2013
Total real estate assets per balance sheet	$	2,118,469	$	2,264,299
Plus:
Company share of real estate assets held in unconsolidated entities		57,421		57,939
Company share of accumulated depreciation - assets held in unconsolidated entities		13,790		12,269
Accumulated depreciation per balance sheet		916,555		891,754
Accumulated depreciation on assets held for sale		-		14,177
Total undepreciated real estate assets(A)	$	3,106,235	$	3,240,438
Total debt per balance sheet	$	893,170	$	1,099,698
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531
Total debt (adjusted for joint venture partners’ share of debt)(B)	$	942,701	$	1,149,229
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt)(B÷A)		30.3%		35.5%
Total debt per balance sheet	$	893,170	$	1,099,698
Plus:
Company share of third party debt held in unconsolidated entities		49,531		49,531
Preferred shares at liquidation value		43,392		43,392
Total debt and preferred equity (adjusted for joint venture partners’ share of debt)(C)	$	986,093	$	1,192,621
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt)(C÷A)		31.7%		36.8%

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Table 7 - Computation of Coverage Ratios

(In thousands)

	Nine months ended September 30,
	2014		2013
Net income	$	218,679	$	67,057
Other non-cash (income) expense, net		3,088		2,887
Income tax expense, net		586		676
Gains on condominium sales activities, net		(1,862)		(27,468)
Gains on sales of apartment communities		(187,825)		-
Net loss on extinguishment of indebtedness		18,357		-
Non-cash impairment charge		-		400
Depreciation expense		63,614		63,694
Depreciation expense - discontinued operations		-		527
Depreciation and amortization (company share) - unconsolidated entities		904		894
Interest expense		31,535		33,280
Interest expense - discontinued operations		-		266
Interest expense (company share) - unconsolidated entities		1,827		1,827
Amortization of deferred financing costs		1,853		1,915
Income available for debt service(A)	$	150,756	$	145,955
Annualized income available for debt service(B)	$	201,008	$	194,607
Interest expense	$	31,535	$	33,280
Interest expense - discontinued operations		-		266
Interest expense (company share) - unconsolidated entities		1,827		1,827
Adjusted interest expense(C)		33,362		35,373
Capitalized interest		2,345		3,122
Adjusted interest expense (including capitalized interest)(D)	$	35,707	$	38,495
Adjusted interest expense	$	33,362	$	35,373
Dividends to preferred shareholders		2,766		2,766
Fixed charges (E)		36,128		38,139
Capitalized interest		2,345		3,122
Fixed charges (including capitalized interest) (F)	$	38,473	$	41,261
Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G)	$	942,701	$	1,149,229
Interest coverage ratio(A÷C)		4.5x		4.1x
Interest coverage ratio (including capitalized interest)(A÷D)		4.2x		3.8x
Fixed charge coverage ratio(A÷E)		4.2x		3.8x
Fixed charge coverage ratio (including capitalized interest)(A÷F)		3.9x		3.5x
Total debt to annualized income available for debt service ratio(G÷B)		4.7x		5.9x

Table 8 - Calculation of Company Undepreciated Book Value Per Share

(In thousands, except per share data)

	September 30, 2014
Total Company shareholders’ equity per balance sheet	$	1,290,444
Plus:
Accumulated depreciation, per balance sheet		916,555
Noncontrolling interest of common unitholders - Operating Partnership		6,190
Less:
Deferred financing costs, net, per balance sheet		(5,648)
Preferred shares at liquidation value		(43,392)
Total undepreciated book value(A)	$	2,164,149
Total common shares and units(B)		54,582
Company undepreciated book value per share(A÷B)	$	39.65

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