Post Properties 8-K Results of Operations and Financial Condition

Exhibit 99.2

Third Quarter 2008
Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations		3
Calculation of Funds from Operations and Adjusted Funds From Operations		6
Same Store Results		7
Consolidated Balance Sheets		10
Consolidated Debt Summary		11
Summary of Communities Under Construction		14
Summary of Land Held for Future Development and Sale		15
Summary of Communities Under Rehabilitation		16
Summary of Condominium Projects		17
Community Acquisition and Disposition Summary		18
Capitalized Costs Summary		19
Investments in Unconsolidated Real Estate Entities		20
Net Asset Value Supplemental Information		21
Non-GAAP Financial Measures and Other Defined Terms		23

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 with respect to strategies to enhance shareholder value 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 dated December 31, 2007, as amended, and in previous filings with the SEC; future conditions in the global capital markets, including changes in the availability of credit and liquidity; future local and national economic conditions, including changes in levels of employment, interest rates, the availability of mortgage and other financing and related factors; demand for apartments in the Company’s markets and the effect on occupancy and rental rates; the impact of competition on the Company’s business, including competition for tenants and development locations for its apartment communities and competing for-sale housing in the markets where the Company is completing condominium conversions or developing new condominiums; the uncertainties associated with the Company’s current and planned future real estate development, including actual costs exceeding the Company’s budgets or development periods exceeding expectations; 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 enter into new joint ventures and the availability of equity financing from traditional real estate investors to fund development activities; the Company’s ability to obtain construction loan financing to fund development activities; uncertainties associated with the Company’s condominium conversion and for-sale housing business; uncertainties associated with loss of personnel in connection with the Company’s reduction of corporate and property development and management overhead; conditions affecting ownership of residential real estate and general conditions in the multifamily residential real estate market; uncertainties associated with environmental and other regulatory matters; the impact of our ongoing litigation with the Equal Rights Center regarding compliance with the Americans with Disabilities Act and the Fair Housing Act (including any award of compensatory or punitive damages or injunctive relief requiring us to retrofit apartments or public use areas or prohibiting the sale of apartment communities or condominium units) as well as the impact of other litigation; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; and the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K dated December 31, 2007, as amended, and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

Post Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share or unit data)
(Unaudited)

	Three months ended						Nine months ended
	September 30,						September 30,
	2008			2007			2008			2007
Revenues
Rental	$	63,700		$	62,460		$	188,174		$	183,998
Other property revenues		3,882			3,779			11,263			10,829
Other		261			171			735			416
Total revenues		67,843			66,410			200,172			195,243
Expenses
Total property operating and maintenance (exclusive of items shown separately below)		32,545			32,169			98,557			95,785
Depreciation		14,979			14,522			43,628			43,248
General and administrative (1)		4,461			4,761			15,265			16,168
Investment, development and other (2)		1,834			2,007			4,648			5,512
Strategic review costs (3)		—			—			8,161			—
Impairment, severance and other costs (4)		5,002			—			34,302			—
Total expenses		58,821			53,459			204,561			160,713
Operating income (loss)		9,022			12,951			(4,389	)		34,530
Interest income		96			189			367			652
Interest expense		(11,471	)		(10,658	)		(31,739	)		(32,566	)
Amortization of deferred financing costs		(869	)		(828	)		(2,579	)		(2,469	)
Gains on sales of real estate assets, net (5)		476			5,061			2,227			71,506
Equity in income of unconsolidated real estate entities		260			402			1,081			1,216
Other income (expense) (6)		534			(262	)		426			(784	)
Minority interest in consolidated property partnerships		52			(452	)		113			(1,146	)
Minority interest of common unitholders		14			(41	)		298			(923	)
Income (loss) from continuing operations		(1,886	)		6,362			(34,195	)		70,016
Discontinued operations(7)
Income from discontinued property operations, net of minority interest		5,612			4,380			13,254			12,244
Gains on sales of real estate assets, net of minority interest		23,350			307			25,640			17,197
Income from discontinued operations		28,962			4,687			38,894			29,441
Net income		27,076			11,049			4,699			99,457
Dividends to preferred shareholders		(1,909	)		(1,909	)		(5,728	)		(5,728	)
Net income (loss) available to common shareholders	$	25,167		$	9,140		$	(1,029	)	$	93,729
Per common share data — Basic(8)
Income (loss) from continuing operations (net of preferred dividends)	$	(0.09	)	$	0.10		$	(0.91	)	$	1.48
Income from discontinued operations		0.66			0.11			0.88			0.68
Net income (loss) available to common shareholders	$	0.57		$	0.21		$	(0.02	)	$	2.16
Weighted average common shares outstanding — basic		44,047			43,524			43,976			43,452
Per common share data — Diluted(8)
Income (loss) from continuing operations (net of preferred dividends)	$	(0.09	)	$	0.10		$	(0.91	)	$	1.46
Income from discontinued operations		0.66			0.11			0.88			0.67
Net income (loss) available to common shareholders	$	0.57		$	0.21		$	(0.02	)	$	2.12
Weighted average common shares outstanding — diluted		44,047			44,101			43,976			44,166

3

Post Properties, Inc.
Notes to Consolidated
Statements of Operations
(In thousands, except per share or unit data)

(1)	For the three months ended September 30, 2008, general and administrative costs decreased primarily as a result of reduced executive bonus accruals and reduced accruals for certain award programs which were eliminated as part of the Company’s initiative to reduce expenses, offset somewhat by increased variable compensation costs between periods under the Company’s Shareholder Value Plan due to the timing of changes in the Company’s stock price. General and administrative costs for the nine months ended September 30, 2008 decreased compared to 2007 primarily as a result of reduced corporate governance costs, reduced accruals for certain award programs and reduced executive bonus accruals.
(2)	Investment, development and other expenses for the three and nine months ended September 30, 2008 and 2007 included investment group expenses, development personnel and associated costs and land carry expenses not allocable to current development projects.
(3)	Strategic review costs for the nine months ended September 30, 2008 included financial, legal and other costs associated with the Company’s formal process to pursue a possible business combination or other sale transaction. In June 2008, the Company announced that the process had concluded without a business combination or other sale transaction.
(4)	Impairment, severance and other costs for the nine months ended September 30, 2008 included non-cash impairment charges of approximately $28,947 to write down land and pre-development costs associated with development projects that are no longer expected to be started in the near term, or that are expected to be marketed for sale, to their estimated fair values and to write off pursuit costs on certain abandoned development projects. Severance charges for the three and nine months ended September 30, 2008 totaled approximately $2,238 and $2,591, respectively, related to staff workforce reductions. Lastly, the Company recorded casualty losses of approximately $2,764 related to damage sustained at its Houston, Texas properties as a result of Hurricane Ike for the three and nine months ended September 30, 2008.
(5)	For the three and nine months ended September 30, 2008 and 2007, income from continuing operations included net gains from condominium sales activities at newly developed and condominium conversion projects representing portions of existing communities. In addition, condominium gains are net of certain expensed sales and marketing costs associated with pre-sale condominium communities and condominium communities under development totaling $160 and $283 for the three months ended and $566 and $459 for the nine months ended September 30, 2008 and 2007, respectively. Net gains from condominium sales activities at other consolidated community conversion projects are included in discontinued operations under generally accepted accounting principles (see (7) below). A summary of revenues and costs and expenses of condominium activities included in continuing operations for the three and nine months ended September 30, 2008 and 2007 was as follows:

	Three months ended						Nine months ended
	September 30,						September 30,
	2008			2007			2008			2007
Condominium revenues	$	8,633		$	30,501		$	26,981		$	61,592
Condominium costs and expenses		(8,157	)		(25,440	)		(24,754	)		(49,324	)
Gains on sales of condominiums, net	$	476		$	5,061		$	2,227		$	12,268

	For the nine months ended September 30, 2007, the Company recognized a proportionate 75% gain on sale of real estate totaling approximately $55,300 related to the transfer of two operating apartment communities to newly formed unconsolidated entities, in which the Company retained a 25% non-controlling interest, for aggregate proceeds of approximately $89,352. The unconsolidated entities obtained mortgage financing secured by the apartment communities totaling approximately $85,772, of which approximately $21,431 was distributed to the Company.
	For the nine months ended September 30, 2007, gains on sales of real estate assets in continuing operations also included gains of $3,938 on the sales of land sites in Atlanta, Georgia and Dallas, Texas.
(6)	For the three and nine months ended September 30, 2008, other income (expense) primarily related to non-cash income related to the mark-to-market of an interest rate swap agreement that became ineffective under generally accepted accounting principles. For the three and nine months ended September 30, 2007, other expenses related to estimates state franchise and other income taxes.

4

(7)	Under SFAS No. 144, the operating results of real estate assets designated as held for sale are included in discontinued operations for all periods presented. Additionally, all subsequent gains or additional losses on the sale of these assets are included in discontinued operations.
	For the three and nine months ended September 30, 2008, income from discontinued operations included the operating results of seven apartment communities, containing 2,365 units, held for sale at September 30, 2008 and two apartment communities, containing 393 units, through their sale dates in 2008. For the three and nine months ended September 30, 2007, income from discontinued operations included the results of operations of the seven apartment communities held for sale at September 30, 2008, the apartment communities sold in 2008, a condominium conversion community sold in 2007, and three apartment communities sold in 2007 through their sale dates.
	The operating revenues and expenses of these communities for the three and nine months ended September 30, 2008 and 2007 were as follows:

	Three months ended						Nine months ended
	September 30,						September 30,
	2008			2007			2008			2007
Revenues
Rental	$	10,896		$	13,256		$	33,398		$	39,528
Other property revenues		415			641			1,290			1,882
Total revenues		11,311			13,897			34,688			41,410
Expenses
Total property operating and maintenance (exclusive of items shown separately below)		3,640			4,493			11,540			13,619
Depreciation		—			2,264			3,623			7,641
Interest		1,776			2,565			5,697			7,456
Minority interest in consolidated property partnerships		241			133			475			271
Total expenses		5,657			9,455			21,335			28,987
Income from discontinued property operations before minority interest		5,654			4,442			13,353			12,423
Minority interest		(42	)		(62	)		(99	)		(179	)
Income from discontinued property operations	$	5,612		$	4,380		$	13,254		$	12,244

For the three and nine months ended September 30, 2008, the Company recognized net gains in discontinued operations of $23,520 ($23,350 net of minority interest) and $25,831 ($25,640 net of minority interest), respectively, from the sale of two apartment communities, containing 143 and 250 units. These sales generated aggregate net proceeds of approximately $37,846 and $57,279 for the three and nine months ended September 30, 2008, respectively. For the nine months ended September 30, 2007, the Company recognized net gains in discontinued operations of $16,974 ($16,714 net of minority interest), from the sale of an apartment community, containing 182 units.

For the nine months ended September 30, 2007, gains on sales of real estate assets included in discontinued operations also included net gains from condominium sales activities at one condominium conversion community that sold out in the first quarter of 2007. A summary of revenues and costs and expenses of condominium activities included in discontinued operations was as follows:

	Three months ended			Nine months ended
	September 30, 2007			September 30, 2007
Condominium revenues	$	—		$	560
Condominium costs and expenses		311			(70	)
Gains on condominium sales, before minority interest		311			490
Minority interest		(4	)		(7	)
Gains on condominium sales, net of minority interest	$	307		$	483

(8) Post Properties, Inc. is structured as an UPREIT, or Umbrella Partnership Real Estate Investment Trust. Post GP Holdings, Inc., a wholly-owned subsidiary of the Company, is the sole general partner and, together with Post LP Holdings, Inc., also a wholly-owned subsidiary of the Company, owns the controlling interest in Post Apartment Homes, L.P., the Operating Partnership through which the Company conducts its operations. As of September 30, 2008, there were 44,422 units of the Operating Partnership outstanding, of which 44,129, or 99.3%, were owned by the Company.

5

Post Properties, Inc.
Calculation of Funds from Operations
and Adjusted Funds From Operations Available
to Common Shareholders and Unitholders
(In thousands, except per share or unit data)
(Unaudited)

A reconciliation of net income (loss) 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						Nine months ended
	September 30,						September 30,
	2008			2007			2008			2007
Net income (loss) available to common shareholders	$	25,167		$	9,140		$	(1,029	)	$	93,729
Minority interest of common unitholders — continuing operations		(14	)		41			(298	)		923
Minority interest in discontinued operations (1)		212			66			290			446
Depreciation on consolidated real estate assets (2)		14,569			16,306			45,851			49,319
Depreciation on real estate assets held in unconsolidated entities		347			322			1,042			822
Gains on sales of real estate assets		(23,996	)		(5,372	)		(28,058	)		(85,031	)
Incremental gains (losses) on condominium sales		(149	)		3,376			(393	)		6,540
Gains on sales of real estate assets — unconsolidated entities		—			(8	)		—			(171	)
Incremental gains on condominium sales — unconsolidated entities (3)		—			4			—			92
Funds from operations available to common shareholders and unitholders (A)	$	16,136		$	23,875		$	17,405		$	66,669
Funds from operations available to common shareholders and unitholders (A)	$	16,136		$	23,875		$	17,405		$	66,669
Annually recurring capital expenditures		(2,953	)		(2,735	)		(8,592	)		(8,815	)
Periodically recurring capital expenditures		(1,783	)		(1,756	)		(5,114	)		(5,623	)
Non-cash impairment charges		—			—			28,947			—
Non-cash income related to mark-to-market of interest rate swap agreement		(663	)		—			(663	)		—
Non-cash straight-line adjustment for ground lease expenses		288			314			877			938
Strategic review costs		—			—			8,161			—
Adjusted funds from operations available to common shareholders and unitholders (4) (B)	$	11,025		$	19,698		$	41,021		$	53,169
Per Common Share Data — Basic
Funds from operations per share or unit, as defined(A÷C)	$	0.36		$	0.54		$	0.39		$	1.51
Adjusted funds from operations per share or unit (4)(B÷C)	$	0.25		$	0.45		$	0.93		$	1.21
Dividends declared	$	0.45		$	0.45		$	1.35		$	1.35
Weighted average shares outstanding		44,047			43,524			43,976			43,452
Weighted average shares and units outstanding(C)		44,340			44,133			44,306			44,087
Per Common Share Data — Diluted
Funds from operations per share or unit, as defined(A÷D)	$	0.36		$	0.53		$	0.39		$	1.49
Adjusted funds from operations per share or unit (4)(B÷D)	$	0.25		$	0.44		$	0.92		$	1.19
Dividends declared	$	0.45		$	0.45		$	1.35		$	1.35
Weighted average shares outstanding (5)		44,182			44,101			44,251			44,166
Weighted average shares and units outstanding (5)(D)		44,475			44,709			44,581			44,801

(1)	Represents the minority interest in earnings and gains on sales of real estate assets reported as discontinued operations for the periods presented.
(2)	Depreciation on wholly-owned real estate assets is net of the minority interest portion of depreciation in consolidated entities.
(3)	For condominium conversion projects, the Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeds the greater of their fair value or net book value as of the date the property is acquired by the Company’s taxable REIT subsidiary. For condominium development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP. See the table entitled “Summary of Condominium Projects” on page 17 for further detail.
(4)	Since the Company does not add back the depreciation of non-real estate assets in its calculation of funds from operations, non-real estate related capital expenditures of $191 and $324 for the three months ended and $613 and $1,932 for the nine months ended September 30, 2008 and 2007, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.
(5)	Funds from operations per share were computed using weighted average shares and units outstanding, including the impact of dilutive securities totaling 135 and 275 shares and units for the three and nine months ended September 30, 2008, respectively. Such dilutive securities were antidilutive to the income (loss) per share computations for the three and nine months ended September 30, 2008 since the Company reported a per share loss from continuing operations under generally accepted accounting principles for such periods.

6

Post Properties, Inc.
Same Store Results
(In thousands, except per share or unit data)
(Unaudited)

Same Store Results

The Company defines fully stabilized or same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by communities sold and classified as held for sale and communities under rehabilitation. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 36 communities containing 13,693 apartment units which were fully stabilized as of January 1, 2007, is summarized as follows:

	Three months ended							Nine months ended
	September 30,							September 30,
	2008		2007		% Change			2008		2007		% Change
Rental and other revenues	$	52,037	$	51,588		0.9	%	$	154,555	$	151,377		2.1	%
Real estate taxes and insurance expenses		7,999		8,002		—			24,710		23,911		3.3	%
Other property operating and maintenance expenses		12,849		12,774		0.6	%		37,742		36,397		3.7	%
Total property operating and maintenance expenses (excluding depreciation and amortization)		20,848		20,776		0.3	%		62,452		60,308		3.6	%
Same store net operating income	$	31,189	$	30,812		1.2	%	$	92,103	$	91,069		1.1	%
Capital expenditures (1)
Annually recurring:
Carpet	$	759	$	756		0.4	%	$	1,913	$	1,945		(1.6	)%
Other		1,320		1,023		29.0	%		3,953		3,284		20.4	%
Total annually recurring		2,079		1,779		16.9	%		5,866		5,229		12.2	%
Periodically recurring (2)		1,562		856		82.5	%		4,375		1,992		119.6	%
Total capital expenditures(A)	$	3,641	$	2,635		38.2	%	$	10,241	$	7,221		41.8	%
Total capital expenditures per unit (A ÷ 13,693 units)	$	266	$	192		38.5	%	$	748	$	527		41.9	%
Average monthly rental rate per unit (3)	$	1,244	$	1,232		1.0	%	$	1,244	$	1,219		2.1	%

(1)	See Table 3 on page 28 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 on the consolidated cash flow statements prepared under GAAP.
(2)	Periodically recurring expenditures for the three and nine months ended September 30, 2008 include approximately $515 and $1,471, respectively related to the Company’s new “resident design center” program.
(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 26 for further information.

7

Same Store Operating Results by Market –
Comparison of Third Quarter of 2008 to Third Quarter of 2007
(Increase (decrease) from same period in prior year)

	Three months ended												Nine months ended
	September 30, 2008												September 30, 2008
										Average												Average
										Economic												Economic
Market	Revenues(1)			Expenses(1)			NOI(1)			Occupancy			Revenues(1)			Expenses(1)			NOI(1)			Occupancy
Atlanta		1.2	%		(0.4	)%		2.4	%		0.1	%		2.9	%		1.7	%		3.7	%		0.5	%
Dallas		2.5	%		1.8	%		3.0	%		(0.5	)%		4.4	%		8.7	%		1.1	%		0.1	%
Washington, DC		0.7	%		4.3	%		(1.1	)%		(0.4	)%		1.8	%		4.9	%		0.2	%		(0.1	)%
Tampa		(3.4	)%		(7.9	)%		(0.2	)%		0.7	%		(2.9	)%		0.2	%		(5.0	)%		(0.7	)%
Charlotte		0.6	%		(0.8	)%		1.2	%		(0.4	)%		1.9	%		3.2	%		1.2	%		(0.6	)%
Houston		4.2	%		9.7	%		0.0	%		(1.1	)%		5.6	%		9.2	%		2.7	%		(0.1	)%
Austin		5.7	%		2.7	%		8.2	%		0.8	%		4.1	%		(2.0	)%		10.1	%		(0.8	)%
Orlando		(1.5	)%		1.0	%		(3.3	)%		4.7	%		(3.1	)%		(13.9	)%		6.1	%		0.9	%
Total		0.9	%		0.3	%		1.2	%		0.0	%		2.1	%		3.6	%		1.1	%		0.0	%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

																					Average Rental
						Average Economic						Average Economic									Rate Per Unit
			% of NOI			Occupancy (1)						Occupancy (1)						Physical			Three Months
			Three months ended			Three months ended						Nine months ended						Occupancy			Ended
	Apartment		September 30,			September 30,						September 30,						at September 30,			September 30,
Market	Units		2008			2008			2007			2008			2007			2008 (2)			2008 (3)
Atlanta		4,243		28.1	%		95.7	%		95.6	%		95.0	%		94.5	%		95.1	%	$	1,152
Dallas		3,095		19.2	%		95.4	%		95.9	%		94.8	%		94.7	%		94.9	%		1,078
Washington, DC		1,700		18.7	%		94.7	%		95.1	%		94.3	%		94.4	%		94.6	%		1,769
Tampa		1,877		13.7	%		95.4	%		94.7	%		93.6	%		94.3	%		95.2	%		1,250
Charlotte		1,388		10.7	%		94.9	%		95.3	%		94.0	%		94.6	%		93.1	%		1,188
Houston		837		5.4	%		93.5	%		94.6	%		93.2	%		93.3	%		94.6	%		1,266
Austin		308		2.3	%		96.9	%		96.1	%		95.6	%		96.4	%		94.2	%		1,351
Orlando		245		1.9	%		97.9	%		93.2	%		95.4	%		94.5	%		95.9	%		1,345
Total		13,693		100.0	%		95.3	%		95.3	%		94.5	%		94.5	%		94.8	%	$	1,244

(1)	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 94.4% and 94.5% for the three months ended and 93.6% and 93.7% for the nine months ended September 30, 2008 and 2007, respectively. For the three months ended September 30, 2008 and 2007, net concessions were $301 and $232, respectively, and employee discounts were $140 and $156, respectively. For the nine months ended September 30, 2008 and 2007, net concessions were $908 and $659, respectively, and employee discounts were $426 and $465, 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 26 for further information.

8

Same Store Sequential Comparison

	Three months ended
	September 30,			June 30,
	2008			2008			% Change
Rental and other revenues	$	52,037		$	51,585			0.9	%
Real estate taxes and insurance expenses		7,999			8,384			(4.6	)%
Other property operating and maintenance expenses		12,849			13,011			(1.2	)%
Total property operating and maintenance expenses (excluding depreciation and amortization)		20,848			21,395			(2.6	)%
Same store net operating income (1)	$	31,189		$	30,190			3.3	%
Average economic occupancy		95.3	%		93.8	%		1.5	%
Average monthly rental rate per unit	$	1,244		$	1,246			(0.2	)%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 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 2008 to Second Quarter 2008
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		0.7	%		3.8	%		(1.4	)%		1.3	%
Dallas		1.1	%		(7.1	)%		8.4	%		1.4	%
Washington, DC		0.1	%		5.0	%		(2.4	)%		0.2	%
Tampa		0.6	%		(10.0	)%		9.1	%		3.5	%
Charlotte		0.5	%		(12.6	)%		8.2	%		0.6	%
Houston		2.1	%		(5.5	)%		9.5	%		0.9	%
Austin		5.5	%		1.6	%		8.9	%		2.9	%
Orlando		2.6	%		10.4	%		(2.3	)%		4.3	%
Total		0.9	%		(2.6	)%		3.3	%		1.5	%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income.

9

Post Properties, Inc.
Consolidated Balance Sheets
(In thousands, except per share or unit data)

	September 30,			December 31,
	2008			2007
	(Unaudited)
Assets
Real estate assets
Land	$	235,757		$	276,680
Building and improvements		1,677,522			1,840,563
Furniture, fixtures and equipment		195,929			204,433
Construction in progress		139,154			134,125
Land held for future development		123,902			154,617
		2,372,264			2,610,418
Less: accumulated depreciation		(514,029	)		(562,226	)
For-sale condominiums		20,167			38,844
Assets held for sale, net of accumulated depreciation of $86,383 and $4,031 at September 30, 2008 and December 31, 2007, respectively		244,659			24,576
Total real estate assets		2,123,061			2,111,612
Investments in and advances to unconsolidated real estate entities		40,874			23,036
Cash and cash equivalents		4,343			11,557
Restricted cash		11,716			5,642
Deferred charges, net		9,489			10,538
Other assets		38,649			105,756
Total assets	$	2,228,132		$	2,268,141
Liabilities and shareholders’ equity
Indebtedness, including $62,908 and $0 secured by assets held for sale as of September 30, 2008 and December 31, 2007, respectively	$	1,043,418		$	1,059,066
Accounts payable and accrued expenses		110,581			100,215
Dividend and distribution payable		19,990			19,933
Accrued interest payable		13,474			4,388
Security deposits and prepaid rents		16,903			11,708
Total liabilities		1,204,366			1,195,310
Minority interest of common unitholders in Operating Partnership		6,034			10,354
Minority interests in consolidated real estate entities		9,542			3,972
Total minority interests		15,576			14,326
Commitments and contingencies
Shareholders’ equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 900 shares issued and outstanding		9			9
7 5/8% Series B Cumulative Redeemable Shares, liquidation preference $25 per share, 2,000 shares issued and outstanding		20			20
Common stock, $.01 par value, 100,000 authorized:
44,131 and 43,825 shares issued, 44,129 and 43,825 shares outstanding at September 30, 2008 and December 31, 2007, respectively		441			438
Additional paid-in-capital		884,331			874,928
Accumulated earnings		129,405			189,985
Accumulated other comprehensive income (loss)		(2,601	)		(3,962	)
		1,011,605			1,061,418
Less common stock in treasury, at cost, 87 and 72 shares at September 30, 2008 and December 31, 2007, respectively		(3,415	)		(2,913	)
Total shareholders’ equity		1,008,190			1,058,505
Total liabilities and shareholders’ equity	$	2,228,132		$	2,268,141

10

Post Properties, Inc.
Consolidated Debt Summary
(Dollars in thousands, except per share or unit data)
(Unaudited)

Summary of Outstanding Debt at September 30, 2008

						Weighted Average Rate (1)
			Percentage			Three months ended September 30,
Type of Indebtedness	Balance		of Total			2008			2007
Unsecured fixed rate senior notes	$	535,000		51.3	%		6.4	%		6.4	%
Secured conventional fixed rate notes		290,261		27.8	%		5.3	%		6.2	%
Secured conventional variable rate notes		92,275		8.8	%		6.7	%		6.1	%
Unsecured lines of credit		125,882		12.1	%		3.2	%		5.6	%
	$	1,043,418		100.0	%		5.7	%		6.3	%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			of Total Debt (2)
Total fixed rate debt	$	825,261		79.1	%		3.6
Total variable rate debt		218,157		20.9	%		9.7
Total debt	$	1,043,418		100.0	%		4.9

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
Remainder of 2008	$	965			5.8	%
2009		76,618			5.5	%
2010		314,510	(3)		5.9	%
2011		141,431			5.4	%
2012		103,296			5.5	%
Thereafter		406,598			5.9	%
	$	1,043,418			5.7	%

Debt Statistics

	Nine months ended
	September 30,
	2008			2007
Interest coverage ratio (4)(5)		2.1x			2.4x
Fixed charge coverage ratio (4)(6)		1.8x			2.0x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		39.3	%		40.0	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		42.7	%		43.4	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended September 30, 2007 are based on the debt outstanding for that period.
(2)	Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.
(3)	Includes outstanding balances on lines of credit of $125,882 maturing in 2010.
(4)	Calculated for the nine months ended September 30, 2008 and 2007.
(5)	Interest coverage ratio is defined as net income available for debt service divided by interest expense. For purposes of this calculation, net income available for debt service represents income from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities, and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and interest expense to consolidated interest expense is included in Table 4 on page 29.
(6)	Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders and distributions to preferred unitholders. For purposes of this calculation, net income available for debt service represents earnings from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities, and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the fixed coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and fixed charges to consolidated interest expense plus preferred dividends to shareholders and preferred distributions to unitholders is included in Table 4 on page 29.
(7)	A computation of the debt ratios is included in Table 5 on page 30.

11

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Financial Debt Covenants — Senior Unsecured Public Notes

	As of
Covenant requirement (1)	September 30, 2008
Consolidated Debt to Total Assets cannot exceed 60%		37	%
Secured Debt to Total Assets cannot exceed 40%		14	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		3.4	x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		2.4	x

(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 are detailed below.

	As of
	September 30, 2008
Ratio of Consolidated Debt to Total Assets
Consolidated debt, per balance sheet(A)	$	1,043,418
Total assets, as defined(B)(Table A)	$	2,819,055
Computed ratio(A÷B)		37	%
Required ratio (cannot exceed)		60	%
Ratio of Secured Debt to Total Assets
Total secured debt(C)	$	382,536
Computed ratio(C÷B)		14	%
Required ratio (cannot exceed)		40	%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet(A)	$	1,043,418
Total secured debt(C)		(382,536	)
Total unsecured debt(D)	$	660,882
Total unencumbered assets, as defined(E)(Table A)	$	2,228,930
Computed ratio(E÷D)		3.4	x
Required minimum ratio		1.5	x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge
Consolidated Income Available for Debt Service, as defined(F)(Table B)	$	127,252
Annual Debt Service Charge, as defined(G)(Table B)	$	52,828
Computed ratio(F÷G)		2.4	x
Required minimum ratio		1.5	x

12

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Table A

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

	As of
	September 30, 2008
Total real estate assets	$	2,123,061
Add:
Investments in and advances to unconsolidated real estate entities		40,874
Accumulated depreciation		514,029
Accumulated depreciation on assets held for sale		86,383
Other tangible assets		54,708
Total assets for public debt covenant computations		2,819,055
Less:
Encumbered real estate assets		(590,125	)
Total unencumbered assets for public debt covenant computations	$	2,228,930

Table B

Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Change for Public Covenant Computations (1)

	Nine months ended
Consolidated income available for debt service	September 30, 2008
Net income	$	4,699
Add:
Minority interest of common unitholders		(8	)
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		29
Income before minority interest		4,720
Add:
Non-cash impairment charges		28,947
Depreciation		43,628
Depreciation (company share) of assets held in unconsolidated entities		1,042
Depreciation of discontinued operations		3,623
Amortization of deferred financing costs		2,579
Interest expense		31,739
Interest expense (company share) of assets held in unconsolidated entities		2,185
Interest expense of discontinued operations		5,697
Less:
Gains on sales of real estate assets, net — continuing operations		(2,227	)
Gains on sales of real estate assets — discontinued operations		(25,831	)
Other income		(663	)
Consolidated income available for debt service	$	95,439
Consolidated income available for debt service (annualized)	$	127,252
Annual debt service charge
Consolidated interest expense	$	31,739
Interest expense (company share) of assets held in unconsolidated entities		2,185
Interest expense of discontinued operations		5,697
Debt service charge	$	39,621
Debt service charge (annualized)	$	52,828

(1) The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2007 results for comparison and presentation purposes. The computations using annual financial data also reflect compliance with the debt covenants.

13

Post Properties, Inc.
Summary Of Communities Under Construction
($ in millions)

														Costs				Estimated
												Company		Incurred		Quarter	Quarter of	Quarter of				Units
		Number			Retail		Company			Estimated		Share of		as of		of Const.	First Units	Stabilized		Units		Under		Units
Community	Location	of Units			Sq. Ft.		Ownership			Cost		Est. Cost		09/30/08		Start	Available	Occupancy(1)		Leased(2)		Contract(3)		Closed(2)
														(Company
														Share)
Apartments(6):
Post Alexander™	Atlanta, GA		307			—		100	%	$	59.4	$	59.4	$	56.2	2Q 2006	1Q 2008	2Q 2009		143		N/A			N/A
Post Eastside™	Dallas, TX		435			37,900		100	%		56.7		56.7		40.9	4Q 2006	2Q 2008	4Q 2009			107		N/A		N/A
Post Frisco Bridges™	Dallas, TX		269			29,000		100	%		41.3		41.3		18.8	3Q 2007	1Q 2009	2Q 2010			—		N/A		N/A
Post Park®	Wash. DC		396			1,700		100	%		84.7		84.7		37.0	4Q 2007	1Q 2009	3Q 2010			—		N/A		N/A
Post West Austin™	Austin, TX		329			—		100	%		53.2		53.2		25.8	4Q 2007	1Q 2009	1Q 2010			—		N/A		N/A
Total Apartments			1,736			68,600				$	295.3	$	295.3	$	178.7						250
Condominiums(6):
The Ritz-Carlton Residences, Atlanta, Buckhead (4)	Atlanta, GA		129	(5)		—		62.5	%(4)	$	112.7	$	78.4	$	26.9	3Q 2007	4Q 2009		N/A		N/A		—		—
Four Seasons Residences	Austin, TX		147	(5)		8,000		100	%		133.5		133.5		35.8	1Q 2008	4Q 2009		N/A		N/A		60		—
Total Condominiums			276			8,000				$	246.2	$	211.9	$	62.7								60		—

(1)	The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy on the first day of any month or (ii) one year after completion of construction.
(2)	As of October 27, 2008.
(3)	As of October 27, 2008, represents the total number of units under contract for sale upon completion and delivery of the units. There can be no assurance that condominium units under contract will close.
(4)	The amounts reflected for this project represent the condominium portion of a mixed-use development currently being developed in an entity owned with other third-party developers. The condominium portion of the project is owned through a joint venture with an Atlanta-based condominium development partner and is branded as The Ritz-Carlton Residences, Atlanta, Buckhead. See footnote 2 on page 20 for further information concerning this venture.
(5)	Due to the combination of certain contiguous units, the aggregate unit count was reduced from 137 to 129 units for the Ritz-Carlton Residences and 168 units to 147 units for the Four Seasons Residences.
(6)	Investments were generally underwritten to achieve targeted yields of approximately 6.00%-6.75% for apartment developments and approximately 20% pre-tax margins on estimated costs for condominium developments. Targeted yields for apartment developments represents the projected unlevered property net operating income (after adjustments for 3% management fee and $300 per unit capital reserves) as a percentage of total estimated construction costs. Targeted pre-tax margins for condominium developments represent projected pre-tax profits from condominium sales activities as a percentage of total estimated construction costs. There can be no assurance that these targets will be achieved.

14

Post Properties, Inc.
Summary of Land Held for Future Development and Sale

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 development will commence construction in the future or at all or that land held for sale will close. The Company assumes no obligation to update this outlook in the future.

Land Held for Future Development:

		Carrying Value
		At September 30, 2008		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Alexander	Atlanta, GA	$	9,147		2.5
Allen Plaza	Atlanta, GA		27,482		5.6
South Lamar	Austin, TX		9,385		4.0
Morningside (1)	Charlotte, NC		—		5.1
Frisco Bridges II	Dallas, TX		5,456		5.4
Midtown Square III	Houston, TX		3,486		1.6
Richmond	Houston, TX		7,174		2.1
Baldwin Park	Orlando, FL		17,554		13.5
Wade	Raleigh, NC		22,013		31.4
Soho Square	Tampa, FL		10,658		4.1
Carlyle Square II	Washington, D.C.		11,547		2.4
Total Land Held for Future Development		$	123,902		77.7

Land Held for Sale:

		Carrying Value
		At September 30, 2008		Estimated Usable
Project	Metro Area	(in thousands)		Acreage
Millennium	Atlanta, GA	$	5,550		1.0
Spring Hill	Atlanta, GA		2,023		9.1
Wade	Raleigh, NC		15,900		49.1
Citrus Park	Tampa, FL		5,967		17.7
Total Land Held for Sale		$	29,440		76.9

(1) Site under contract to purchase. There can be no assurance that this land purchase will close. As of September 30, 2008, the Company had incurred pursuit costs and deposits totaling approximately $1.3 million related to this project.

15

Post Properties, Inc.
Summary Of Communities Under Rehabilitation
(Dollars in thousands, except per square foot)

								Average Monthly Rental				Property NOI		Property NOI
								Rate Per Sq. Ft. (1)				For the Fiscal		For the		Undepreciated		Projected		Number of Units
						Average		Actual		Projected		Year Preceding		Three Months		Book Value		Total		As of September 30, 2008
		Year		Total		Sq. Ft.		Prior to		After		The Start of		Ended		Prior to		Rehabilitation				Out
Project	Location	Completed		Units		Per Unit (1)		Rehabilitation		Rehabilitation		Rehabilitation		September 30, 2008		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Heights™	Dallas, TX		1998-1999		368		845	$	1.35	$	1.58	$	2,598	$	366	$	42,195	$	10,700		173		42
Post Peachtree Hills®	Atlanta, GA		1992-1994		300		978		1.12		1.42		2,436		287		19,539		10,600		125		49
					668											$	61,734	$	21,300		298		91

	Rehabilitation Cost Incurred in												Projected
	The Three Months Ended						Rehabilitation Capital Cost Incurred						Remaining
	September 30, 2008						As of September 30, 2008						Rehabilitation				Projected		Projected
	Revenue-		Non-Revenue-		Total		Revenue-		Non-Revenue-		Total		Capital Cost		Quarter of		Quarter of		Quarter of
	Generating		Generating		Capital		Generating		Generating		Capital		To be		Rehabilitation		Rehabilitation		Re-Stabilized
Project	Capital Cost		Capital Cost		Cost		Capital Cost		Capital Cost		Cost		Incurred		Start		Completion		Occupancy
Post Heights™	$	2,048	$	—	$	2,048	$	5,100	$	24	$	5,124	$	5,576		1Q 2008		2Q 2009	1Q 2010
Post Peachtree Hills®		2,528		—		2,528		4,877		5		4,882		5,718		1Q 2008		2Q 2009	4Q 2009
	$	4,576	$	—	$	4,576	$	9,977	$	29	$	10,006	$	11,294

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary. There can be no assurance that the projected average monthly rental rates after the rehabilitation will be achieved.
(2)	Includes approximately $ 1,600 of projected non-revenue generating capital costs.

16

Post Properties, Inc.
Summary Of Condominium Projects
(Dollars in thousands)

								# of Rental Units		Average				Transfer		Book Value		Units(4)
		Year		Sale		Total		Occupied as of		Unit		Project Transfer		Price/Est. Cost		as of						Under		Available
Project	Location	Completed		Start Date		Units		09/30/08		Sq. Ft.(1)		Price/Est. Cost(2)		Per Unit		09/30/08(3)		Total		Closed		Contract		for Sale
Condominium Conversion Projects
Harbour Place City Homes™	Tampa, FL		1999	Q2 2006			206		1		1,036	$	37,000	$	180	$	2,752		206		165		1		40
RISETM	Houston, TX		2000	Q2 2006			143		22		1,407		26,250		184		7,301		143		101		1		41
Condominium Development Projects
The Condominiums at Carlyle Square™	Washington, DC		2007		2Q 2007		145		N/A		855		46,200		319		3,773		145		137		1		7
Mercer Square™	Dallas, TX		2007		3Q 2007		85		N/A		1,094		18,600		218		6,341		85		51		3		31
							579									$	20,167		579		454		6		119

Financial Summary – Aggregate Condominium Activity

	Three months ended							Three months ended							Nine months ended							Nine months ended							Cumulative through
	September 30, 2008							September 30, 2007							September 30, 2008							September 30, 2007							September 30, 2008
					FFO							FFO							FFO							FFO							FFO
					Incremental							Incremental							Incremental							Incremental							Incremental
	Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on
Project	Closed		Revenues		Sale(6)(7)			Closed		Revenues		Sale(6)(7)			Closed		Revenues		Sale(6)(7)			Closed		Revenues		Sale(6)(7)			Closed		Revenues		Sale(6)
Condominium Conversion Projects
Harbour Place City Homes™		1	$	230	$	(688	)		16	$	3,694	$	(829	)		12	$	2,735	$	(1,916	)		51	$	12,081	$	(1,390	)		164	$	40,480	$	(2,462	)
RISETM		11		2,298		(82	)		11		3,048		(652	)		25		6,626		(759	)		31		8,457		(375	)		98		25,170		(1,478	)
588TM (5)		—		—		—			—		—		—			—		—		—			1		560		179			127		34,557		3,526
The Peachtree ResidencesTM (5)		—		—		—			1		260		4			—		—		—			12		4,592		92			121		41,547		562
Condominium Development Projects
The Condominiums at Carlyle Square™		8		3,342		324			39		18,628		3,926			30		11,260		1,890			74		35,923		6,901			131		57,583		9,657
Mercer Square™		10		2,758		440			17		5,131		420			23		6,355		925			17		5,131		188			51		14,567		1,141
		30		8,628		(6	)		84		30,761		2,869			90		26,976		140			186		66,744		5,595			692		213,904		10,946
Other		—		5		(155	)		—		—		28			—		5		(562	)		—		—		(147	)		—		13		(1,199	)
Total		30	$	8,633	$	(161	)		84	$	30,761	$	2,897			90	$	26,981	$	(422	)		186	$	66,744	$	5,448			692	$	213,917	$	9,747

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary.
(2)	Transfer price for purposes of computing incremental gains on condominium sales included in FFO at conversion projects reflects the greater of (1) the estimated fair value on the date the project was acquired by the Company’s taxable REIT subsidiary (as supported by independently-prepared, third-party appraisals) or (2) its net book value at that time.
(3)	Including the Company’s share of total estimated construction costs of ground-up condominiums being developed and not yet in active sales (see page 14) of approximately $211.9 million and book value of unsold condominiums above, committed capital to the condominium business at September 30, 2008 totaled approximately $232.1 million.
(4)	Unit status is as of October 27, 2008. There can be no assurance that condominium units under contract will close.
(5)	Final condominium closings occurred in 2007 at these communities. The Peachtree ResidencesTM is owned in an unconsolidated entity, where the Company’s equity ownership is 35%. Amounts shown, except for incremental gains on condominium sales included in FFO represents gross amounts at the unconsolidated entity level.
(6)	For conversion projects, the Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceed the “transfer price” as described in note 2 above. For development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP.
(7)	For co-investment projects, amounts are net of minority interests of $12 and $483 for the three months and $29 and $1,184 for the nine months ended September 30, 2008 and 2007, respectively. Excludes the impact of income tax expense attributable to gains on condominium sales, as applicable. There was no income tax provision for the three and nine months ended September 30, 2008 and 2007.

17

Post Properties, Inc.
Community Acquisition and Disposition Summary

						Gross Amount		Gross
Property Name/Period	Location	Units		Year Built		Per Unit		Amount
Acquisitions
Q3 2007
Post Lake® at Baldwin Park	Orlando, FL		350	2004 – 2007		$	211,429	$	74,000,000
2007 YTD Total								$	74,000,000
Average Cap Rate – Acquisitions – 2007									4.2	%(1)
Dispositions
Q1 2007
Post Oak™	Atlanta, GA		182		1993	$	131,868	$	24,000,000
Q2 2007
Post Collier Hills®	Atlanta, GA		396		1997	$	140,327		41,677,000	(3)
Post Crest®	Atlanta, GA		410		1996	$	158,125		48,623,000	(3)
Q4 2007
Post Ashford®	Atlanta, GA		222		1987	$	103,603		23,000,000
Post Lindbergh®	Atlanta, GA		396		1998	$	154,542		45,899,000	(3)
Post Vinings®	Atlanta, GA		403		1989-1991	$	111,166		44,800,000
2007 YTD Total								$	227,999,000
Average Cap Rate – Dispositions – 2007									5.0	%(2)
Q1 2008
Post Wilson™	Dallas, TX		143		1999	$	138,811	$	19,850,000
Q3 2008
Post Oglethorpe®	Atlanta, GA		250		1994	$	154,000		38,500,000
Q4 2008
Post Woods®	Atlanta, GA		494		1977-1983	$	106,781		52,750,000
2008 YTD Total								$	111,100,000
Average Cap Rate – Dispositions – 2008									6.0	%(2)

(1)	Based on projected first twelve-month net operating income upon achievement of stabilized operations (as it relates to the second phase of Post Lake® at Baldwin Park which is in lease-up) and after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $2.9 million relating to closing costs and other amounts it plans to spend to improve this community.
(2)	Based on trailing twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit).
(3)	The Company transferred these communities to an unconsolidated entity, in which the Company retained a 25% interest. These amounts reflect the 75% portion of the gross transfer price effectively acquired by the institutional investor.

18

Post Properties, Inc.
Capitalized Costs Summary
(Dollars in thousands, except per share or unit data)
(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 and condominium 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. Additionally, for new development communities, carpet, vinyl and blind replacements are expensed as incurred during the first five years (which corresponds to the estimated depreciable life of these assets) after construction completion. Thereafter, these replacements are capitalized. Further, the Company expenses as incurred the interior and exterior painting of operating communities, unless those communities are under major rehabilitation.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment and condominium 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 and condominium 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, 2008 and 2007 is detailed below.

	Three months ended				Nine months ended
	September 30,				September 30,
	2008		2007		2008		2007
Development and acquisition expenditures (1)	$	35,951	$	175,921	$	116,564	$	242,541
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		4,603		3,440		12,554		10,646
Other community additions and improvements (3)		1,783		1,756		5,114		5,623
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		2,953		2,735		8,592		8,815
Corporate additions and improvements		191		324		613		1,932
	$	45,481	$	184,176	$	143,437	$	269,557
Other Data
Capitalized interest	$	2,875	$	2,864	$	9,546	$	8,659
Capitalized development and associated costs (5)	$	1,247	$	1,264	$	4,575	$	2,749

(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 (see page 16).
(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.

19

Post Properties, Inc.
Investments in Unconsolidated Real Estate Entities
(Dollars in thousands, except per share or unit data)
(Unaudited)

Apartments and Condominium Development Communities

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 as follows:

Non-Financial Data

		Property			Ownership
Joint Venture Property	Location	Type	# of Units		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 Biltmore™	Atlanta, GA	Apartments		276		35	%
Post Massachusetts Avenue™	Washington, D.C.	Apartments		269		35	%
3630 Peachtree North Tower	Atlanta, GA	Land		—		50	%
3630 Peachtree South Tower (2)	Atlanta, GA	Mixed-Use		129		48	%

Financial Data

	As of										Three Months Ended						Nine Months Ended
	September 30, 2008										September 30, 2008						September 30, 2008
	Gross Investment		Mortgage/Construction			Entity		Company’s Equity			Entity			Company’s			Entity			Company’s
Joint Venture Property	in Real Estate (8)		Notes Payable			Equity		Investment			NOI			Equity in Earnings			NOI			Equity in Earnings
Post Collier Hills® (1)	$	54,504	$	39,565	(3)	$	13,982	$	(3,978	)(1)	$	684		$	(3	)	$	2,159		$	22
Post Crest® (1)		63,748		46,159	(3)		16,310		(6,325	)(1)		778			(6	)		2,356			(7	)
Post Lindbergh® (1)		60,181		41,000	(4)		18,938		(3,745	)(1)		699			(13	)		2,313			18
Post Biltmore™		36,278		29,272	(5)		1,798		2,499			622			33			1,842			213
Post Massachusetts Avenue™		69,170		50,500	(6)		9,900		6,701			1,570			271			4,460			857
3630 Peachtree North Tower		9,518		6,542	(7)		3,066		1,533			6			—			6			—
3630 Peachtree South Tower (2)		107,841		66,848	(7)		46,831		30,141	(2)		(49	)		(22	)		(91	)		(22	)
Total	$	401,240	$	279,886		$	110,825	$	26,826		$	4,310		$	260		$	13,045		$	1,081

(1)	In 2007, 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)	The mixed-use project (the “Master JV”) consists of 129 luxury for-sale condominiums to be marketed as The Ritz-Carlton Residences, Atlanta, Buckhead (sponsored through a joint venture between the Company and a private condominium developer; the “Condo JV”) and approximately 425,000 square feet of Class A office space (sponsored through a joint venture between an office REIT and a private office developer). The Condo JV owns an approximate 48% pro-rata interest in the Master JV accounted for on the equity method, representing the condominium portion of the project. The Company has a $15,500 preferred equity interest and a 62.5% residual equity interest in the Condo JV and, consequently, consolidates that entity on its balance sheet. The minority partner’s equity interest in the condo JV, totaling $6,817, is included in the Company’s equity investment reflected above. The Company’s share of gross real estate assets and construction notes payable, net of its partners’ interests, at September 30, 2008 was $26,936 and $12,056, respectively. See page 14 for further information regarding the for-sale condominium portion of the project.
(3)	These notes bear interest at a fixed rate of 5.63% and mature in 2017.
(4)	This note bears interest at a fixed rate of 5.71% and matures in 2017.
(5)	This note bears interest at a fixed rate of 5.83% and requires monthly interest only payments through 2013. The note is prepayable without penalty in September 2011.
(6)	This note bears interest at a fixed rate of 5.82% and requires monthly interest only payments through 2013. The note is prepayable without penalty in September 2011.
(7)	At September 30, 2008, $73,390 was outstanding under a $187,128 construction loan facility bearing interest at a variable rate of LIBOR plus 1.35% and which matures in 2011.
(8)	Represents GAAP basis net book value plus accumulated depreciation.

20

Post Properties, Inc.
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, 2008 for properties stabilized by July 1, 2008 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by July 1, 2008 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)

	Three months ended					As
Income Statement Data	September 30, 2008		Adjustments			Adjusted
Rental revenues	$	63,700	$	5,053	(1)	$	68,753
Other property revenues		3,882		98	(1)		3,980
Total rental and other revenues(A)		67,582		5,151			72,733
Property operating & maintenance expenses (excluding depreciation and amortization)(B)		32,545		(4,680	)(1)		27,865
Property net operating income (Table 1)(A-B)	$	35,037	$	9,831		$	44,868
Assumed property management fee (calculated at 3% of revenues)(A x 3%)							(2,182	)
Assumed property capital expenditure reserve ($300 per unit per year based on 17,628 units)							(1,322	)
Adjusted property net operating income						$	41,364
Annualized property net operating income(C)						$	165,456
Apartment units represented(D)		21,890		(4,262	)(1)		17,628

	As of					As
Other Asset Data	September 30, 2008		Adjustments			Adjusted
Cash & equivalents	$	4,343				$	4,343
Real estate assets under construction, lease-up, conversion or rehabilitation, at cost (2)		139,154		218,864	(2)		358,018
Land held for future development		123,902					123,902
For-sale condominiums and assets held for sale (3)		264,826		(203,702	)(3)		61,124
Investments in and advances to unconsolidated real estate entities (4)		40,874		(9,200)4	)		31,674
Restricted cash and other assets		50,365					50,365
Cash & other assets of unconsolidated real estate entities (5)		5,872		(4,182	)(5)		1,690
Total(E)	$	629,336	$	1,780		$	631,116
Other Liability Data
Indebtedness	$	1,043,418				$	1,043,418
Other liabilities (6)		170,490		(27,421	)(6)		143,069
Total liabilities of unconsolidated real estate entities (7)		208,883		(148,578	)(7)		60,305
Total(F)	$	1,422,791	$	(175,999	)	$	1,246,792

21

Other Data

	As of September 30, 2008
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares(G)					$	95,000
Common shares outstanding		44,129
Common units outstanding		293
Total(H)		44,422	$	27.97	$	1,242,483
Implied market value of Company gross real estate assets(I) = (F+G+H-E)					$	1,953,159
Implied Portfolio Capitalization Rate(C÷I)						8.5	%
Implied Market Value of Company gross real estate assets per unit(I÷D)					$	110.8

(1) The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2008 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, conversion or rehabilitation	$	(4,082	)	$	(288	)	$	(2,784	)		(2,962	)
Corporate property management expenses								(2,995	)
Company share of unconsolidated entities		2,030			131			764			(1,256	)
Held for sale operating properties		9,947			369			3,304			(44	)
Corporate apartments and other		(2,842	)		(114	)		(2,969	)
	$	5,053		$	98		$	(4,680	)		(4,262	)

(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 under rehabilitation during the third quarter of 2008.
(3)	The adjustment reflects a reduction for the depreciated book value of seven apartment communities held for sale and included in discontinued operations at September 30, 2008, 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. The “As Adjusted” amount represents the consolidated equity investment in 3630 Peachtree South Tower (i.e., The Ritz-Carlton Residences, Atlanta, Buckhead) and the Company’s equity investment in 3630 Peachtree North Tower. Minority interest related to 3630 Peachtree South Tower of $6,817 is included in the “As Adjusted” amount in Other Liabilities.
(5)	The “As of September 30, 2008” 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.
(6)	The “As of September 30, 2008” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses, security deposits and prepaid rents, credit investment balances of the Company’s investment in unconsolidated entities 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 $13,373 and for credit investment balances of the Company’s investment in three unconsolidated entities of $14,048.
(7)	The “As of September 30, 2008” amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a reduction for the venture partner’s respective share of liabilities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment entities.

22

Post Properties, Inc.
Non-GAAP Financial Measures and Other Defined Terms
(Dollars in thousands, except per share or unit data)
(Unaudited)

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 accompanying 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 (loss) 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, non-cash income (loss) related to mark-to-market of interest rate swap agreements, and strategic review 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 (loss) 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.

23

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 communities stabilized in the prior year, lease-up communities, rehabilitation communities, sold properties 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 are the lines on the Company’s consolidated statements of cash flows entitled “annually recurring capital expenditures” and “periodically recurring 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) an interest coverage ratio; (2) a fixed charge coverage ratio; (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; and (8) a ratio of consolidated income available to debt service to annual debt service charge. 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.

Average Economic Occupancy —The Company uses average economic occupancy as a statistical measure of 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.

24

Reconciliations of Supplemental Non-GAAP Financial Measures

Table 1
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Dollars in thousands)
(Unaudited)

	Three months ended									Nine months ended
	September 30,			September 30,			June 30,				September 30,			September 30,
	2008			2007			2008				2008			2007
Total same store NOI	$	31,189		$	30,812		$	30,190			$	92,103		$	91,069
Property NOI from other operating segments		3,848			3,258			2,625				8,777			7,973
Consolidated property NOI		35,037			34,070			32,815				100,880			99,042
Add (subtract):
Interest income		96			189			61				367			652
Other revenues		261			171			235				735			416
Minority interest in consolidated property partnerships		52			(452	)		427				113			(1,146	)
Depreciation		(14,979	)		(14,522	)		(14,386	)			(43,628	)		(43,248	)
Interest expense		(11,471	)		(10,658	)		(10,112	)			(31,739	)		(32,566	)
Amortization of deferred financing costs		(869	)		(828	)		(859	)			(2,579	)		(2,469	)
General and administrative		(4,461	)		(4,761	)		(4,956	)			(15,265	)		(16,168	)
Investment and development		(1,834	)		(2,007	)		(1,356	)			(4,648	)		(5,512	)
Strategic review costs		—			—			(2,091	)			(8,161	)		—
Impairment, severance and other charges		(5,002	)		—			(29,300	)			(34,302	)		—
Gains on sales of real estate assets, net		476			5,061			(368	)			2,227			71,506
Equity in income of unconsolidated real estate entities		260			402			420				1,081			1,216
Other income (expense)		534			(262	)		66				426			(784	)
Minority interest of common unitholders		14			(41	)		238				298			(923	)
Income (loss) from continuing operations		(1,886	)		6,362			(29,166	)			(34,195	)		70,016
Income from discontinued operations		28,962			4,687			4,103				38,894			29,441
Net income (loss)	$	27,076		$	11,049		$	(25,063	)		$	4,699		$	99,457

25

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

	Three Months Ended						Q3 ‘08			Q3 ‘08			Q3 ‘08
	September 30,		September 30,		June 30,		vs. Q3 ‘07			vs. Q2 ‘08			% Same
	2008		2007		2008		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	15,075	$	14,898	$	14,969		1.2	%		0.7	%
Dallas		10,435		10,182		10,320		2.5	%		1.1	%
Washington, D.C.		8,999		8,935		8,991		0.7	%		0.1	%
Tampa		7,141		7,395		7,101		(3.4	)%		0.6	%
Charlotte		4,937		4,909		4,912		0.6	%		0.5	%
Houston		3,134		3,007		3,070		4.2	%		2.1	%
Austin		1,299		1,229		1,231		5.7	%		5.5	%
Orlando		1,017		1,033		991		(1.5	)%		2.6	%
Total rental and other revenues		52,037		51,588		51,585		0.9	%		0.9	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		6,300		6,327		6,072		(0.4	)%		3.8	%
Dallas		4,485		4,404		4,830		1.8	%		(7.1	)%
Washington, D.C.		3,173		3,042		3,023		4.3	%		5.0	%
Tampa		2,869		3,116		3,187		(7.9	)%		(10.0	)%
Charlotte		1,585		1,597		1,813		(0.8	)%		(12.6	)%
Houston		1,436		1,309		1,519		9.7	%		(5.5	)%
Austin		575		560		566		2.7	%		1.6	%
Orlando		425		421		385		1.0	%		10.4	%
Total		20,848		20,776		21,395		0.3	%		(2.6	)%
Net operating income
Atlanta		8,775		8,571		8,897		2.4	%		(1.4	)%		28.1	%
Dallas		5,950		5,778		5,490		3.0	%		8.4	%		19.2	%
Washington, D.C.		5,826		5,893		5,968		(1.1	)%		(2.4	)%		18.7	%
Tampa		4,272		4,279		3,914		(0.2	)%		9.1	%		13.7	%
Charlotte		3,352		3,312		3,099		1.2	%		8.2	%		10.7	%
Houston		1,698		1,698		1,551		0.0	%		9.5	%		5.4	%
Austin		724		669		665		8.2	%		8.9	%		2.3	%
Orlando		592		612		606		(3.3	)%		(2.3	)%		1.9	%
Total same store NOI	$	31,189	$	30,812	$	30,190		1.2	%		3.3	%		100.0	%
Average rental rate per unit
Atlanta	$	1,152	$	1,134				1.6	%
Dallas		1,078		1,048				2.9	%
Washington, D.C.		1,769		1,747				1.3	%
Tampa		1,250		1,310				(4.6	)%
Charlotte		1,188		1,181				0.6	%
Houston		1,266		1,192				6.2	%
Austin		1,351		1,297				4.2	%
Orlando		1,345		1,434				(6.2	)%
Total average rental rate per unit		1,244		1,232				1.0	%

26

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

	Nine months ended
	September 30,		September 30,
	2008		2007		% Change
Rental and other revenues
Atlanta	$	44,831	$	43,577		2.9	%
Dallas		30,787		29,501		4.4	%
Washington, D.C.		26,854		26,388		1.8	%
Tampa		21,424		22,063		(2.9	)%
Charlotte		14,633		14,366		1.9	%
Houston		9,235		8,745		5.6	%
Austin		3,769		3,619		4.1	%
Orlando		3,022		3,118		(3.1	)%
Total rental and other revenues		154,555		151,377		2.1	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		18,145		17,835		1.7	%
Dallas		13,816		12,715		8.7	%
Washington, D.C.		9,236		8,801		4.9	%
Tampa		9,033		9,013		0.2	%
Charlotte		4,964		4,811		3.2	%
Houston		4,289		3,929		9.2	%
Austin		1,734		1,770		(2.0	)%
Orlando		1,235		1,434		(13.9	)%
Total		62,452		60,308		3.6	%
Net operating income
Atlanta		26,686		25,742		3.7	%
Dallas		16,971		16,786		1.1	%
Washington, D.C.		17,618		17,587		0.2	%
Tampa		12,391		13,050		(5.0	)%
Charlotte		9,669		9,555		1.2	%
Houston		4,946		4,816		2.7	%
Austin		2,035		1,849		10.1	%
Orlando		1,787		1,684		6.1	%
Total same store NOI	$	92,103	$	91,069		1.1	%
Average rental rate per unit
Atlanta	$	1,149	$	1,123		2.3	%
Dallas		1,071		1,036		3.4	%
Washington, D.C.		1,766		1,728		2.2	%
Tampa		1,277		1,308		(2.4	)%
Charlotte		1,187		1,159		2.4	%
Houston		1,248		1,173		6.4	%
Austin		1,334		1,270		5.0	%
Orlando		1,373		1,427		(3.8	)%
Total average rental rate per unit		1,244		1,219		2.1	%

27

Table 3
Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(Dollars in thousands)

	Three months ended				Nine months ended
	September 30,				September 30,
	2008		2007		2008		2007
Annually recurring capital expenditures by operating segment
Fully stabilized	$	2,079	$	1,779	$	5,866	$	5,229
Communities stabilized during 2007		30		19		151		42
Development, rehabilitation and lease-up		327		217		982		878
Condominium conversion and other		—		57		—		672
Acquired		26		4		93		4
Other segments		491		659		1,500		1,990
Total annually recurring capital expenditures per statements of cash flows	$	2,953	$	2,735	$	8,592	$	8,815
Periodically recurring capital expenditures by operating segment
Fully stabilized	$	1,562	$	856	$	4,375	$	1,992
Communities stabilized during 2007		81		363		98		2,337
Development, rehabilitation and lease-up		10		132		104		405
Condominium conversion and other		—		192		—		418
Acquired		4		—		39		—
Other segments		126		213		498		471
Total periodically recurring capital expenditures per statements of cash flows	$	1,783	$	1,756	$	5,114	$	5,623

28

Table 4
Computation of Interest and Fixed Charge Coverage Ratios
(Dollars in thousands)

	Nine months ended
	September 30,
	2008			2007
Income (loss) from continuing operations	$	(34,195	)	$	70,016
Minority interest of common unitholders		(298	)		923
Minority interest in consolidated property partnerships — gains on sales of real estate assets — continuing operations		29			1,184
Other income		(663	)		—
Gains on sales of real estate assets, net		(2,227	)		(71,506	)
Gains on sales of real estate assets — unconsolidated entities		—			(171	)
Non-cash impairment charges		28,947			—
Depreciation expense		43,628			43,248
Depreciation (company share) of assets held in unconsolidated entities		1,042			822
Interest expense		31,739			32,566
Interest expense (company share) of assets held in unconsolidated entities		2,185			1,192
Amortization of deferred financing costs		2,579			2,469
Income available for debt service(A)	$	72,766		$	80,743
Interest expense	$	31,739		$	32,566
Interest expense (company share) of assets held in unconsolidated entities		2,185			1,192
Interest expense for purposes of computation(B)		33,924			33,758
Dividends and distributions to preferred shareholders and unitholders		5,728			5,728
Fixed charges for purposes of computation(C)	$	39,652		$	39,486
Interest coverage ratio(A÷B)		2.1	x		2.4	x
Fixed charge coverage ratio(A÷C)		1.8	x		2.0	x

29

Table 5
Computation of Debt Ratios
(Dollars in thousands)

	As of September 30,
	2008			2007
Total real estate assets per balance sheet	$	2,123,061		$	2,140,680
Plus:
Company share of real estate assets held in unconsolidated entities		113,210			73,515
Company share of accumulated depreciation — assets held in unconsolidated entities		6,499			4,747
Accumulated depreciation per balance sheet		514,029			555,440
Accumulated depreciation on assets held for sale		86,383			21,744
Total undepreciated real estate assets(A)	$	2,843,182		$	2,796,126
Total debt per balance sheet	$	1,043,418		$	1,070,994
Plus:
Company share of third party debt held in unconsolidated entities		74,928			47,647
Total debt (adjusted for joint venture partners’ share of debt)(B)	$	1,118,346		$	1,118,641
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt(B÷A)		39.3	%		40.0	%
Total debt per balance sheet	$	1,043,418		$	1,070,994
Plus:
Company share of third party debt held in unconsolidated entities		74,928			47,647
Preferred shares at liquidation value		95,000			95,000
Total debt and preferred equity (adjusted for joint venture partners’ share of debt)(C)	$	1,213,346		$	1,213,641
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt)(C÷A)		42.7	%		43.4	%

30

Table 6
Amended Historical Presentation of Property Operating and Maintenance Expenses
(Dollars in thousands)

	Three Months Ended
	March 31,		June 30,		September 30,		December 31,		March 31,		June 30,		September 30,
	2007		2007		2007		2007		2008		2008		2008
Property operating and maintenance expenses (exclusive of depreciation and amortization) (1):
Fully stabilized communities	$	19,980	$	20,627	$	21,279	$	19,267	$	20,739	$	21,911	$	21,346
Communities stabilized during 2007		965		1,115		989		921		1,143		1,064		1,052
Development, rehabilitation and lease-up communities		1,874		2,118		2,068		2,021		2,564		2,883		3,108
Condominium conversion and other communities		1,719		1,288		788		660		79		72		64
Acquired communities		—		—		365		497		704		616		595
Other property segments		6,813		7,117		6,680		7,636		7,228		7,009		6,380
Total	$	31,351	$	32,265	$	32,169	$	31,002	$	32,457	$	33,555	$	32,545

(1) The amended historical presentation of property operating and maintenance expenses (exclusive of depreciation and amortization) above includes certain reclassifications in property operating expenses that the Company intends to begin reporting for the fourth quarter and full year of 2008. Prior periods will be reclassified to conform to the amended current year presentation. Reclassified operating expenses relate primarily to relief and preventive maintenance engineers, collection personnel, certain property related advertising, and property level performance based awards. These expenses have been included in corporate property management expenses, but starting in the fourth quarter, will be directly allocated to the Company’s properties. Total property operating and maintenance expenses (exclusive of depreciation and amortization) will remain unchanged.

31

Table 7
Calculation of Company Undepreciated Book Value Per Share
(Dollars in thousands)

	September 30, 2008
Total shareholders’ equity, per balance sheet	$	1,008,190
Plus:
Accumulated depreciation, per balance sheet		514,029
Accumulated depreciation held for sale assets, per balance sheet		86,383
Minority interest of common unitholders in Operating Partnership, per balance sheet		6,034
Less:
Deferred charges, net, per balance sheet		(9,489	)
Preferred shares at liquidation value		(95,000	)
Total undepreciated book value(A)	$	1,510,147
Total common shares and units(B)		44,422
Company undepreciated book value per share(A÷B)	$	34.00

32