Exhibit 99.2
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Third Quarter 2012
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 | 7 | |||
Debt Summary | 10 | |||
Summary of Apartment Communities Under Development, | 13 | |||
Summary of Condominium Projects | 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 Property 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, 2011 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 effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for apartment mortgage loans; the Company’s ability to maintain its current dividend level; uncertainties associated with the Company’s condominium for-sale housing business, including the timing and volume of condominium sales; 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 buyers of the Company’s for-sale condominium homes and development locations; the Company’s ability to compete for limited investment opportunities; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Company’s acquired apartment communities; 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 partnership 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; 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, 2011 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.
Supplemental Financial Data | 2 | Page |
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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, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues | ||||||||||||||||
Rental | $ | 81,069 | $ | 73,607 | $ | 233,805 | $ | 213,199 | ||||||||
Other property revenues | 5,096 | 4,762 | 14,368 | 13,682 | ||||||||||||
Other | 209 | 243 | 637 | 686 | ||||||||||||
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Total revenues | 86,374 | 78,612 | 248,810 | 227,567 | ||||||||||||
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Expenses | ||||||||||||||||
Property operating and maintenance (exclusive of items shown separately below) | 37,341 | 34,618 | 107,209 | 100,441 | ||||||||||||
Depreciation | 20,334 | 18,823 | 59,172 | 56,383 | ||||||||||||
General and administrative | 3,763 | 3,970 | 11,931 | 12,332 | ||||||||||||
Investment and development (1) | 203 | 239 | 1,005 | 1,013 | ||||||||||||
Other investment costs (1) | 547 | 329 | 1,159 | 1,278 | ||||||||||||
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Total expenses | 62,188 | 57,979 | 180,476 | 171,447 | ||||||||||||
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Operating income | 24,186 | 20,633 | 68,334 | 56,120 | ||||||||||||
Interest income | 20 | 374 | 359 | 982 | ||||||||||||
Interest expense | (11,816 | ) | (14,207 | ) | (34,564 | ) | (43,119 | ) | ||||||||
Amortization of deferred financing costs | (667 | ) | (717 | ) | (2,026 | ) | (2,085 | ) | ||||||||
Net gains on condominium sales activities (2) | 10,261 | 2,581 | 25,695 | 8,757 | ||||||||||||
Equity in income of unconsolidated real estate entities, net (3) | 475 | 235 | 7,416 | 790 | ||||||||||||
Other income (expense), net | (137 | ) | (71 | ) | 444 | 230 | ||||||||||
Net loss on extinguishment of indebtedness (4) | — | — | (301 | ) | — | |||||||||||
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Net income | 22,322 | 8,828 | 65,357 | 21,675 | ||||||||||||
Noncontrolling interests - consolidated real estate entities | (55 | ) | (9 | ) | (96 | ) | (56 | ) | ||||||||
Noncontrolling interests - Operating Partnership | (60 | ) | (25 | ) | (175 | ) | (54 | ) | ||||||||
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Net income available to the Company | 22,207 | 8,794 | 65,086 | 21,565 | ||||||||||||
Dividends to preferred shareholders | (922 | ) | (922 | ) | (2,766 | ) | (3,533 | ) | ||||||||
Preferred stock redemption costs | — | — | — | (1,757 | ) | |||||||||||
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Net income available to common shareholders | $ | 21,285 | $ | 7,872 | $ | 62,320 | $ | 16,275 | ||||||||
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Per common share data - Basic(5) | ||||||||||||||||
Net income available to common shareholders | $ | 0.39 | $ | 0.15 | $ | 1.16 | $ | 0.33 | ||||||||
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Weighted average common shares outstanding - basic | 54,115 | 50,651 | 53,661 | 49,862 | ||||||||||||
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Per common share data - Diluted(5) | ||||||||||||||||
Net income available to common shareholders | $ | 0.39 | $ | 0.15 | $ | 1.15 | $ | 0.32 | ||||||||
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Weighted average common shares outstanding - diluted | 54,392 | 51,053 | 54,001 | 50,259 | ||||||||||||
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See Notes to Consolidated Financial Statements on page 6
Supplemental Financial Data | 3 | Page |
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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 | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income available to common shareholders | $ | 21,285 | $ | 7,872 | $ | 62,320 | $ | 16,275 | ||||||||
Noncontrolling interests - Operating Partnership | 60 | 25 | 175 | 54 | ||||||||||||
Depreciation on consolidated real estate assets, net (6) | 20,012 | 18,475 | 58,171 | 55,340 | ||||||||||||
Depreciation on real estate assets held in unconsolidated entities | 287 | 363 | 910 | 1,084 | ||||||||||||
Gains on sales of depreciable real estate assets - unconsolidated entities | — | — | (6,055 | ) | — | |||||||||||
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Funds from operations available to common shareholders and unitholders (A) | $ | 41,644 | $ | 26,735 | $ | 115,521 | $ | 72,753 | ||||||||
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Funds from operations available to common shareholders and unitholders - core operations (B) | $ | 31,383 | $ | 24,154 | $ | 89,826 | $ | 63,996 | ||||||||
Funds from operations available to common shareholders and unitholders - condominiums | 10,261 | 2,581 | 25,695 | 8,757 | ||||||||||||
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Funds from operations available to common shareholders and unitholders (A) | $ | 41,644 | $ | 26,735 | $ | 115,521 | $ | 72,753 | ||||||||
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Adjusted Funds From Operations | ||||||||||||||||
Funds from operations available to common shareholders and unitholders (A) | $ | 41,644 | $ | 26,735 | $ | 115,521 | $ | 72,753 | ||||||||
Annually recurring capital expenditures | (4,672 | ) | (5,458 | ) | (12,152 | ) | (11,978 | ) | ||||||||
Periodically recurring capital expenditures | (2,214 | ) | (1,875 | ) | (5,736 | ) | (5,443 | ) | ||||||||
Non-cash straight-line adjustment for ground lease expenses | 121 | 128 | 367 | 384 | ||||||||||||
Net loss on early extinguishment of indebtedness | — | — | 301 | — | ||||||||||||
Preferred stock redemption costs | — | — | — | 1,757 | ||||||||||||
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Adjusted funds from operations available to common shareholders and unitholders (7) (C) | $ | 34,879 | $ | 19,530 | $ | 98,301 | $ | 57,473 | ||||||||
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Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D) | $ | 24,618 | $ | 16,949 | $ | 72,606 | $ | 48,716 | ||||||||
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7) | 10,261 | 2,581 | 25,695 | 8,757 | ||||||||||||
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Adjusted funds from operations available to common shareholders and unitholders (7) (C) | $ | 34,879 | $ | 19,530 | $ | 98,301 | $ | 57,473 | ||||||||
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Per Common Share Data - Diluted | ||||||||||||||||
Funds from operations per share or unit, as defined (A÷E) | $ | 0.76 | $ | 0.52 | $ | 2.13 | $ | 1.44 | ||||||||
Funds from operations per share or unit - core operations (B÷E) | $ | 0.57 | $ | 0.47 | $ | 1.66 | $ | 1.27 | ||||||||
Adjusted funds from operations per share or unit, as defined (7)(C÷E) | $ | 0.64 | $ | 0.38 | $ | 1.81 | $ | 1.14 | ||||||||
Adjusted funds from operations per share or unit - core operations (7)(D÷E) | $ | 0.45 | $ | 0.33 | $ | 1.34 | $ | 0.96 | ||||||||
Dividends declared | $ | 0.25 | $ | 0.22 | $ | 0.72 | $ | 0.62 | ||||||||
Weighted average shares outstanding (8) | 54,522 | 51,217 | 54,126 | 50,421 | ||||||||||||
Weighted average shares and units outstanding (8)(E) | 54,665 | 51,379 | 54,275 | 50,588 |
See Notes to Funds from Operations and Adjusted Funds from Operations on page 6
Supplemental Financial Data | 4 | Page |
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CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
September 30, 2012 | December 31, 2011 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Real estate assets | ||||||||
Land | $ | 312,774 | $ | 299,720 | ||||
Building and improvements | 2,230,285 | 2,085,929 | ||||||
Furniture, fixtures and equipment | 266,084 | 251,663 | ||||||
Construction in progress | 115,594 | 94,981 | ||||||
Land held for future development | 45,957 | 55,396 | ||||||
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2,970,694 | 2,787,689 | |||||||
Less: accumulated depreciation | (825,015 | ) | (767,017 | ) | ||||
For-sale condominiums | 32,066 | 54,845 | ||||||
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Total real estate assets | 2,177,745 | 2,075,517 | ||||||
Investments in and advances to unconsolidated real estate entities | 5,040 | 7,344 | ||||||
Cash and cash equivalents | 64,222 | 13,084 | ||||||
Restricted cash | 5,817 | 5,126 | ||||||
Deferred financing costs, net | 9,376 | 6,381 | ||||||
Other assets | 31,463 | 31,612 | ||||||
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Total assets | $ | 2,293,663 | $ | 2,139,064 | ||||
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Liabilities and equity | ||||||||
Indebtedness | $ | 1,036,492 | $ | 970,443 | ||||
Accounts payable, accrued expenses and other | 89,121 | 72,102 | ||||||
Investments in unconsolidated real estate entities | 16,192 | 15,945 | ||||||
Dividends and distributions payable | 13,639 | 11,692 | ||||||
Accrued interest payable | 9,186 | 5,185 | ||||||
Security deposits and prepaid rents | 9,400 | 9,334 | ||||||
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Total liabilities | 1,174,030 | 1,084,701 | ||||||
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Redeemable common units | 6,874 | 6,840 | ||||||
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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: | ||||||||
54,413 and 53,002 shares issued and 54,413 and 52,988 shares outstanding at September 30, 2012 and December 31, 2011, respectively | 545 | 530 | ||||||
Additional paid-in-capital | 1,104,781 | 1,053,612 | ||||||
Accumulated earnings | 23,219 | — | ||||||
Accumulated other comprehensive income (loss) | (12,614 | ) | (2,633 | ) | ||||
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1,115,940 | 1,051,518 | |||||||
Less common stock in treasury, at cost, 93 and 113 shares at September 30, 2012 and December 31, 2011, respectively | (3,106 | ) | (4,000 | ) | ||||
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Total Company shareholders’ equity | 1,112,834 | 1,047,518 | ||||||
Noncontrolling interests - consolidated property partnerships | (75 | ) | 5 | |||||
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Total equity | 1,112,759 | 1,047,523 | ||||||
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Total liabilities and equity | $ | 2,293,663 | $ | 2,139,064 | ||||
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See Notes to Consolidated Financial Statements on page 6
Supplemental Financial Data | 5 | Page |
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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 $139 and the write-off of development pursuit costs of $135 for the three and nine months ended September 30, 2012. |
2) | A summary of revenues and costs and expenses of condominium activities for the three and nine months ended September 30, 2012 and 2011 is as follows: |
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2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Condominium revenues | $ | 23,517 | $ | 13,678 | $ | 64,043 | $ | 46,443 | ||||||||||||
Condominium costs and expenses | (13,256 | ) | (11,097 | ) | (38,960 | ) | (37,686 | ) | ||||||||||||
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Gains on sales of condominiums, before income taxes | 10,261 | 2,581 | 25,083 | 8,757 | ||||||||||||||||
Income tax benefit | — | — | 612 | — | ||||||||||||||||
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Net gains on sales of condominiums | $ | 10,261 | $ | 2,581 | $ | 25,695 | $ | 8,757 | ||||||||||||
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3) | Equity in earnings of unconsolidated entities for the nine months ended September 30, 2012 includes the Company’s $6,055 share of the gain on the sale of Post Biltmore™, previously owned by a 35% owned unconsolidated entity. |
4) | The net loss on early extinguishment of indebtedness of $301 for the nine months ended September 30, 2012 represents the write-off of a portion of the Company’s unamortized deferred loan costs associated with the refinancing of the Company’s lines of credit. |
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, 2012, there were 54,556 Operating Partnership units outstanding, of which 54,413, or 99.7%, 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 $76 and $440 for the three months and $521 and $926 for the nine months ended September 30, 2012 and 2011, 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 277 and 402 for the three months and 340 and 397 for the nine months ended September 30, 2012 and 2011, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 129 and 164 for the three months and 126 and 162 for the nine months ended September 30, 2012 and 2011, 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.” |
Supplemental Financial Data | 6 | Page |
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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. 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 50 communities containing 18,114 apartment units which were fully stabilized as of January 1, 2011, are summarized in the table below.
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September 30, | September 30, | |||||||||||||||||||||||||||||
2012 | 2011 | % Change | 2012 | 2011 | % Change | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Rental and other revenue | $ | 74,747 | $ | 69,919 | 6.9% | $ | 218,719 | $ | 203,288 | 7.6% | ||||||||||||||||||||
Utility reimbursements | 2,420 | 2,411 | 0.4% | 6,897 | 6,764 | 2.0% | ||||||||||||||||||||||||
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Total rental and other revenues | $ | 77,167 | $ | 72,330 | 6.7% | $ | 225,616 | $ | 210,052 | 7.4% | ||||||||||||||||||||
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Property operating and maintenance expenses: | ||||||||||||||||||||||||||||||
Personnel expenses | 6,869 | 6,724 | 2.2% | 20,298 | 19,990 | 1.5% | ||||||||||||||||||||||||
Utility expense | 4,610 | 4,821 | (4.4)% | 12,517 | 13,073 | (4.3)% | ||||||||||||||||||||||||
Real estate taxes and fees | 10,964 | 9,531 | 15.0% | 31,955 | 28,037 | 14.0% | ||||||||||||||||||||||||
Insurance expenses | 1,044 | 929 | 12.4% | 3,189 | 2,910 | 9.6% | ||||||||||||||||||||||||
Building and grounds repairs and maintenance (1) | 4,336 | 4,685 | (7.4)% | 12,809 | 13,237 | (3.2)% | ||||||||||||||||||||||||
Ground lease expense (2) | 230 | 234 | (1.7)% | 690 | 834 | (17.3)% | ||||||||||||||||||||||||
Other expenses | 1,929 | 2,135 | (9.6)% | 5,705 | 6,223 | (8.3)% | ||||||||||||||||||||||||
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Total property operating and maintenance expenses (excluding depreciation and amortization) | 29,982 | 29,059 | 3.2% | 87,163 | 84,304 | 3.4% | ||||||||||||||||||||||||
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Same store net operating income | $ | 47,185 | $ | 43,271 | 9.0% | $ | 138,453 | $ | 125,748 | 10.1% | ||||||||||||||||||||
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Same store net operating income margin | 61.1 | % | 59.8 | % | 1.3% | 61.4 | % | 59.9 | % | 1.5% | ||||||||||||||||||||
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Capital expenditures (3) | ||||||||||||||||||||||||||||||
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Carpet | $ | 1,005 | $ | 925 | 8.6% | $ | 2,587 | $ | 2,349 | 10.1% | ||||||||||||||||||||
Other | 3,202 | 4,383 | (26.9)% | 8,597 | 9,289 | (7.4)% | ||||||||||||||||||||||||
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Total annually recurring | 4,207 | 5,308 | (20.7)% | 11,184 | 11,638 | (3.9)% | ||||||||||||||||||||||||
Periodically recurring (3) | 1,840 | 1,350 | 36.3% | 4,267 | 4,259 | 0.2% | ||||||||||||||||||||||||
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Total capital expenditures (A) | $ | 6,047 | $ | 6,658 | (9.2)% | $ | 15,451 | $ | 15,897 | (2.8)% | ||||||||||||||||||||
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Total capital expenditures per unit | ||||||||||||||||||||||||||||||
(A ÷ 18,114 units) | $ | 334 | $ | 368 | (9.2)% | $ | 853 | $ | 878 | (2.8)% | ||||||||||||||||||||
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Average monthly rental rate per unit (4) | $ | 1,370 | $ | 1,288 | 6.4% | $ | 1,344 | $ | 1,263 | 6.4% | ||||||||||||||||||||
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Gross turnover (5) | 70.3 | % | 67.6 | % | 2.7% | 60.4 | % | 59.3 | % | 1.1% | ||||||||||||||||||||
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Net turnover (6) | 63.8 | % | 62.0 | % | 1.8% | 54.2 | % | 53.5 | % | 0.7% | ||||||||||||||||||||
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Percentage rent increase - new leases (7) | 5.2 | % | 6.6 | % | (1.4)% | 6.0 | % | 6.4 | % | (0.4)% | ||||||||||||||||||||
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Percentage rent increase - renewed leases (7) | 6.4 | % | 6.3 | % | 0.1% | 6.6 | % | 5.6 | % | 1.0% | ||||||||||||||||||||
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1) | Building and grounds repairs and maintenance includes $53 and $188 for the three months and $490 and $516 for the nine months ended September 30, 2012 and 2011, respectively, related to exterior painting of communities. |
2) | Ground lease expense reflects the cessation of ground lease expenses at the Company’s Post Renaissance® community, effective July 1, 2011. |
3) | 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. Periodically recurring capital expenditures includes $159 and $184 for the three months and $426 and $457 for the nine months ended September 30, 2012 and 2011, respectively, related to the Company’s “resident design center” program. |
4) | 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. |
5) | Gross turnover represents the percentage of leases expiring during the period that are not renewed by the existing resident(s). |
6) | 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. |
7) | 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. |
Supplemental Financial Data | 7 | Page |
![]() | ![]() |
SAME STORE RESULTS (CON’T)
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results by Market - Comparison of Third Quarter and Year to Date 2012 to Third Quarter and Year to Date 2011
(Increase (decrease) between periods)
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | |||||||||||||||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||||||||||||||
Economic | Economic | |||||||||||||||||||||||||||||||||||||||
Market | Revenues (1) | Expenses (1) | NOI (1) | Occupancy | Revenues (1) | Expenses (1) | NOI (1) | Occupancy | ||||||||||||||||||||||||||||||||
Atlanta | 6.8% | 7.6% | 6.2% | (0.1)% | 7.3% | 3.3% | 10.1% | 0.1% | ||||||||||||||||||||||||||||||||
Washington, D.C. | 3.5% | (5.2)% | 8.0% | 0.0% | 5.3% | 0.4% | 7.7% | 1.2% | ||||||||||||||||||||||||||||||||
Dallas | 7.7% | 4.6% | 10.2% | 0.4% | 8.1% | 4.1% | 11.3% | 0.9% | ||||||||||||||||||||||||||||||||
Tampa | 7.6% | 3.9% | 9.9% | 0.2% | 7.4% | 5.4% | 8.6% | (0.2)% | ||||||||||||||||||||||||||||||||
Charlotte | 9.1% | (3.1)% | 16.5% | 0.6% | 9.2% | (0.6)% | 15.2% | 0.7% | ||||||||||||||||||||||||||||||||
New York | 3.6% | 3.3% | 3.9% | 0.2% | 4.4% | 5.9% | 3.3% | 1.6% | ||||||||||||||||||||||||||||||||
Houston | 9.9% | 1.4% | 16.7% | 0.2% | 10.2% | 1.9% | 16.7% | 1.0% | ||||||||||||||||||||||||||||||||
Orlando | 7.5% | 1.4% | 11.6% | 0.1% | 7.6% | 1.1% | 11.9% | 0.6% | ||||||||||||||||||||||||||||||||
Austin | 8.6% | 7.5% | 9.5% | (0.2)% | 11.9% | 11.5% | 12.3% | 0.8% | ||||||||||||||||||||||||||||||||
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Total | 6.7% | 3.2% | 9.0% | 0.2% | 7.4% | 3.4% | 10.1% | 0.7% | ||||||||||||||||||||||||||||||||
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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, 2012 | Physical Occupancy at September 30, 2012 (2) | Average Rental Rate Per Unit Three Months Ended September 30, 2012 (3) | |||||||||||||||||||||||||||||||||||||
Average Economic | Average Economic | |||||||||||||||||||||||||||||||||||||||
Occupancy (1) | Occupancy (1) | |||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||
Market | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Atlanta | 5,407 | 26.4% | 97.2% | 97.3% | 96.6% | 96.5% | 96.3% | $ | 1,214 | |||||||||||||||||||||||||||||||
Washington, D.C. | 2,301 | 19.3% | 95.5% | 95.5% | 95.3% | 94.1% | 95.0% | 1,883 | ||||||||||||||||||||||||||||||||
Dallas | 4,498 | 19.6% | 96.4% | 96.0% | 95.5% | 94.6% | 96.0% | 1,160 | ||||||||||||||||||||||||||||||||
Tampa | 2,111 | 11.8% | 96.9% | 96.7% | 96.7% | 96.9% | 95.7% | 1,348 | ||||||||||||||||||||||||||||||||
Charlotte | 1,388 | 7.1% | 97.4% | 96.8% | 96.5% | 95.8% | 95.5% | 1,167 | ||||||||||||||||||||||||||||||||
New York | 337 | 4.4% | 95.8% | 95.6% | 95.9% | 94.3% | 97.3% | 3,824 | ||||||||||||||||||||||||||||||||
Houston | 837 | 4.3% | 96.5% | 96.3% | 96.7% | 95.7% | 96.7% | 1,338 | ||||||||||||||||||||||||||||||||
Orlando | 598 | 3.7% | 97.5% | 97.4% | 97.5% | 96.9% | 97.2% | 1,487 | ||||||||||||||||||||||||||||||||
Austin | 637 | 3.4% | 96.1% | 96.3% | 96.3% | 95.5% | 95.6% | 1,466 | ||||||||||||||||||||||||||||||||
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Total | 18,114 | 100.0% | 96.6% | 96.4% | 96.2% | 95.5% | 96.0% | $ | 1,370 | |||||||||||||||||||||||||||||||
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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 95.9% and 95.5% for the three months and 95.5% and 94.3% for the nine months ended September 30, 2012 and 2011, respectively. For the three months ended September 30, 2012 and 2011, net concessions were $274 and $456, respectively, and employee discounts were $218 and $205, respectively. For the nine months ended September 30, 2012 and 2011, net concessions were $908 and $1,886, respectively, and employee discounts were $642 and $604, 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. |
Supplemental Financial Data | 8 | Page |
![]() | ![]() |
SAME STORE RESULTS (CON’T)
(In thousands, except per unit data) - (Unaudited)
Sequential Same Store Operating Results – Comparison of Third Quarter of 2012 to Second Quarter of 2012
Three months ended | ||||||||||||
September 30, 2012 | June 30, 2012 | % Change | ||||||||||
Rental and other revenue | $ | 74,747 | $ | 72,868 | 2.6% | |||||||
Utility reimbursements | 2,420 | 2,261 | 7.0% | |||||||||
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Total rental and other revenues | $ | 77,167 | $ | 75,129 | 2.7% | |||||||
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| |||||||||
Personnel expenses | 6,869 | 6,611 | 3.9% | |||||||||
Utility expense | 4,610 | 4,039 | 14.1% | |||||||||
Real estate taxes and fees | 10,964 | 10,603 | 3.4% | |||||||||
Insurance expenses | 1,044 | 1,026 | 1.8% | |||||||||
Building and grounds repairs and maintenance (1) | 4,336 | 4,473 | (3.1)% | |||||||||
Ground lease expense | 230 | 227 | 1.3% | |||||||||
Other expenses | 1,929 | 1,948 | (1.0)% | |||||||||
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| |||||||||
Total property operating and maintenance expenses (excluding depreciation and amortization) | 29,982 | 28,927 | 3.6% | |||||||||
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| |||||||||
Same store net operating income (2) | $ | 47,185 | $ | 46,202 | 2.1% | |||||||
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Average economic occupancy | 96.6 | % | 96.1 | % | 0.5% | |||||||
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| |||||||||
Average monthly rental rate per unit | $ | 1,370 | $ | 1,341 | 2.2% | |||||||
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1) | Building and grounds repairs and maintenance includes $53 and $292 for the three months ended September 30, 2012 and June 30, 2012, respectively, related to exterior 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 2012 to Second Quarter of 2012
(Increase (decrease) between periods)
Market | Revenues (1) | Expenses (1) | NOI (1) | Average Economic Occupancy | ||||||||||||||||
Atlanta | 3.3% | �� | 6.0% | 1.5% | 1.1% | |||||||||||||||
Washington, D.C. | 1.3% | 5.3% | (0.4)% | (0.2)% | ||||||||||||||||
Dallas | 3.4% | 5.1% | 2.2% | 0.7% | ||||||||||||||||
Tampa | 2.6% | 0.6% | 3.8% | 0.6% | ||||||||||||||||
Charlotte | 3.5% | (3.8)% | 7.6% | 0.9% | ||||||||||||||||
New York | 1.1% | 0.3% | 1.7% | (0.3)% | ||||||||||||||||
Houston | 2.6% | (2.2)% | 6.2% | (0.9)% | ||||||||||||||||
Orlando | 2.4% | 4.1% | 1.5% | 0.2% | ||||||||||||||||
Austin | 2.7% | 4.7% | 1.2% | (0.6)% | ||||||||||||||||
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Total | 2.7% | 3.6% | 2.1% | 0.5% | ||||||||||||||||
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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. |
Supplemental Financial Data | 9 | Page |
![]() | ![]() |
DEBT SUMMARY
(In thousands) - (Unaudited)
Summary of Outstanding Debt at September 30, 2012 - Consolidated
Type of Indebtedness | Balance | Percentage of Total Debt | Weighted Average Rate (1) September 30, | |||||||||||||||||
2012 | 2011 | |||||||||||||||||||
Unsecured fixed rate senior notes | $ | 280,091 | 27.0% | 5.5% | 5.5% | |||||||||||||||
Unsecured bank term loan | 300,000 | 29.0% | 3.4% | — | ||||||||||||||||
Secured fixed rate notes | 456,401 | 44.0% | 5.6% | 5.7% | ||||||||||||||||
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$ | 1,036,492 | 100.0% | 4.9% | 5.6% | ||||||||||||||||
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Balance | Percentage of Total Debt | Weighted Average Maturity of Total Debt (2) | ||||||||||||||||||
Total fixed rate debt | $ | 1,036,492 | 100.0% | 4.5 | ||||||||||||||||
Total variable rate debt - unhedged | — | 0.0% | 0.0 | |||||||||||||||||
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Total debt | $ | 1,036,492 | 100.0% | 4.5 | ||||||||||||||||
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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 2012 | $ | 1,153 | 5.8 | % | $ | — | $ | — | — | ||||||||||||||||
2013 | 186,606 | 6.1 | % | — | — | — | |||||||||||||||||||
2014 | 3,961 | 5.9 | % | — | — | — | |||||||||||||||||||
2015 | 124,205 | (9) | 4.9 | % | — | — | — | ||||||||||||||||||
2016 | 4,419 | (3) | 5.9 | % | — | — | — | ||||||||||||||||||
Thereafter | 716,148 | 4.6 | % | 177,723 | 49,531 | 5.0 | % | ||||||||||||||||||
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$ | 1,036,492 | 4.9 | % | $ | 177,723 | $ | 49,531 | 5.0 | % | ||||||||||||||||
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Debt Statistics
Nine months ended September 30, | ||||||||||
2012 | 2011 | |||||||||
Interest coverage ratio (4)(5) | 3.7x | 2.7x | ||||||||
Interest coverage ratio (including capitalized interest) (4)(5) | 3.3x | 2.6x | ||||||||
Fixed charge coverage ratio (4)(6) | 3.5x | 2.5x | ||||||||
Fixed charge coverage ratio (including capitalized interest) (4)(6) | 3.1x | 2.4x | ||||||||
Total debt to annualized income available for debt service ratio (7) | 6.0x | 6.7x | ||||||||
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8) | 35.3 | % | 38.2 | % | ||||||
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8) | 36.8 | % | 39.7 | % |
1) | Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at September 30, 2012 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, 2012, after considering the impact of interest rate swap arrangements that hedge this debt. Effective October 1, 2012, the effective fixed interest rate for the term loan was reduced to approximately 3.2% due to recent upgrades to the Company’s credit ratings. |
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. |
4) | Calculated for the nine months ended September 30, 2012 and 2011. |
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 this debt ratio is included in Table 6 on page 27. |
9) | Includes a mortgage note payable of $120,000 that matures in February 2015 at which time it will automatically be extended for a one-year term at a variable interest rate. |
Supplemental Financial Data | 10 | Page |
![]() | ![]() |
DEBT SUMMARY (CON’T)
(In thousands) - (Unaudited)
Financial Debt Covenants - Senior Unsecured Public Notes
Covenant requirement(1) | As of September 30, 2012 | ||||
Consolidated Debt to Total Assets cannot exceed 60% | 33% | ||||
Secured Debt to Total Assets cannot exceed 40% | 15% | ||||
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 | 3.7x |
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. |
Ratio of Consolidated Debt to Total Assets | ||||
As of September 30, 2012 | ||||
Consolidated debt, per balance sheet (A) | $ | 1,036,492 | ||
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Total assets, as defined(B) (Table A) | $ | 3,101,350 | ||
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Computed ratio(A÷B) | 33% | |||
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Required ratio (cannot exceed) | 60% | |||
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Ratio of Secured Debt to Total Assets | ||||
Total secured debt (C) | $ | 456,401 | ||
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Computed ratio(C÷B) | 15% | |||
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Required ratio (cannot exceed) | 40% | |||
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Ratio of Total Unencumbered Assets to Unsecured Debt | ||||
Consolidated debt, per balance sheet (A) | $ | 1,036,492 | ||
Total secured debt (C) | (456,401) | |||
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Total unsecured debt(D) | $ | 580,091 | ||
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Total unencumbered assets, as defined(E) (Table A) | $ | 2,487,072 | ||
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Computed ratio(E÷D) | 4.3x | |||
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Required minimum ratio | 1.5x | |||
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Ratio of Consolidated Income Available for Debt Service to Annual Debt | ||||
Consolidated Income Available for Debt Service, as defined(F) (Table B) | $ | 181,335 | ||
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Annual Debt Service Charge, as defined(G) (Table B) | $ | 48,712 | ||
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Computed ratio(F÷G) | 3.7x | |||
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Required minimum ratio | 1.5x | |||
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Supplemental Financial Data | 11 | Page |
![]() | ![]() |
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, 2012 | ||||
Total real estate assets | $ | 2,177,745 | ||
Add: | ||||
Investments in and advances to unconsolidated real estate entities | 5,040 | |||
Accumulated depreciation | 825,015 | |||
Other tangible assets | 93,550 | |||
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Total assets for public debt covenant computations | 3,101,350 | |||
Less: | ||||
Encumbered real estate assets | (609,238 | ) | ||
Investments in and advances to unconsolidated real estate entities | (5,040 | ) | ||
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Total unencumbered assets for public debt covenant computations | $ | 2,487,072 | ||
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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, 2012 | |||
Net income | $ | 65,357 | ||
Add: | ||||
Depreciation | 59,172 | |||
Depreciation and amort. (company share) of assets held in unconsolidated entities | 972 | |||
Amortization of deferred financing costs | 2,026 | |||
Interest expense | 34,564 | |||
Interest expense (company share) of assets held in unconsolidated entities | 1,970 | |||
Income tax expense, net | 469 | |||
Other non-cash (income) expense, net | 2,920 | |||
Net loss on early extinguishment of indebtedness | 301 | |||
Less: | ||||
Gain on sale of real estate assets - unconsolidated entity, net | (6,055 | ) | ||
Gains on sales of real estate assets, net | (25,695 | ) | ||
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Consolidated income available for debt service | $ | 136,001 | ||
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Consolidated income available for debt service (annualized) | $ | 181,335 | ||
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Annual debt service charge | ||||
Consolidated interest expense | $ | 34,564 | ||
Interest expense (company share) of assets held in unconsolidated entities | 1,970 | |||
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Debt service charge | $ | 36,534 | ||
|
| |||
Debt service charge (annualized) | $ | 48,712 | ||
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1) | The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2012 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants. |
Supplemental Financial Data | 12 | Page |
![]() | ![]() |
SUMMARY OF APARTMENT COMMUNITIES UNDER DEVELOPMENT,
LAND HELD FOR FUTURE INVESTMENTANDACQUISITION/DISPOSITIONACTIVITY
(In millions, except units, square footage and acreage) – (Unaudited)
Communities Under Development
Community | Location | Number of Units | Retail Sq. Ft. (1) | Estimated Total Cost (2) | Costs Incurred as of 09/30/2012 | Quarter of First Units Available | Estimated Quarter of Stabilized Occupancy (3) | Percent Leased (4) | ||||||||||||||||
Post Carlyle Square™ - Phase II | Wash. DC | 344 | — | $ | 89.0 | $ | 80.3 | 2Q 2012 | 4Q 2013 | 42.7% | ||||||||||||||
Post South Lamar™ | Austin, TX | 298 | 9,263 | 41.7 | 34.0 | 3Q 2012 | 4Q 2013 | 11.7% | ||||||||||||||||
Post Midtown Square® - Phase III | Houston, TX | 124 | 10,358 | 21.8 | 18.1 | 4Q 2012 | 4Q 2013 | 3.2% | ||||||||||||||||
Post Lake® at Baldwin Park - Phase III | Orlando, FL | 410 | — | 58.6 | 22.7 | 1Q 2013 | 3Q 2014 | N/A | ||||||||||||||||
Post Parkside™ at Wade - Phase I | Raleigh, NC | 397 | 14,908 | 55.0 | 21.4 | 1Q 2013 | 3Q 2014 | N/A | ||||||||||||||||
Post Richmond Avenue™ | Houston, TX | 242 | — | 34.3 | 10.0 | 3Q 2013 | 4Q 2014 | N/A | ||||||||||||||||
Post Soho Square™ | Tampa, FL | 231 | 10,556 | 39.8 | 6.1 | 1Q 2014 | 2Q 2015 | N/A | ||||||||||||||||
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Total | 2,046 | 45,085 | $ | 340.2 | $ | 192.6 | ||||||||||||||||||
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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. |
3) | 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. |
4) | Represents unit status as of October 26, 2012. |
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, 2012 (in thousands) | Estimated Usable Acreage | |||||||
Alexander | Atlanta, GA | $ | 6,652 | 2.5 | ||||||
Centennial Park | Atlanta, GA | 18,858 | 5.6 | |||||||
Millennium | Atlanta, GA | 2,775 | 1.0 | |||||||
Spring Hill | Atlanta, GA | 2,023 | 9.1 | |||||||
Frisco Bridges II | Dallas, TX | 5,480 | 5.4 | |||||||
Wade | Raleigh, NC | 10,169 | 26.6 | |||||||
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Total Land Held for Future Investment | $ | 45,957 | 50.2 | |||||||
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Acquisition/Disposition Activity
Property Name | Location | Quarter Acquired / Disposed | Units | Retail Sq. Ft. | Year Completed | Gross Price (in thousands) | Cap Rate | Company’s Ownership % | ||||||||
Acquisitions | ||||||||||||||||
Post Katy Trail™ | Dallas, TX | Q4 2011 | 227 | 9,080 | 2010 | $48,500 | 5.0%(1) | 100% | ||||||||
Post South End™ | Charlotte, NC | Q3 2012 | 360 | 7,612 | 2009 | $74,000 | 5.0%(1) | 100% | ||||||||
Dispositions | ||||||||||||||||
Post Biltmore™ | Atlanta, GA | Q1 2012 | 276 | — | 2002 | $51,075 | 4.8%(2) | 35% |
1) | Based on projected first twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit). Also assumes the Company will initially spend approximately $0.5 million relating to closing costs and other amounts it plans to spend to improve the community. |
2) | Based on trailing twelve-month net operating income after adjustments for management fee (3%) and capital reserves ($300/unit). |
Supplemental Financial Data | 13 | Page |
![]() | ![]() |
SUMMARY OF CONDOMINIUM PROJECTS
(In thousands, except unit and square foot data) - (Unaudited)
The Ritz-Carlton | Four Seasons | |||||||||||||||
Residences, | Private Residences, | |||||||||||||||
Atlanta Buckhead | Austin | |||||||||||||||
Project Data | ||||||||||||||||
Location | Atlanta, GA | Austin, TX | ||||||||||||||
Residential square footage | 245,539 | 292,741 | ||||||||||||||
Average unit square footage (1) | 1,903 | 1,978 | ||||||||||||||
Quarter of first units available | 3Q10 | 2Q10 | ||||||||||||||
Units as of 10/26/12 (2) | ||||||||||||||||
Closed | 71 | 117 | ||||||||||||||
Under contract | 14 | 8 | ||||||||||||||
Available for sale | 44 | 23 | ||||||||||||||
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Total | 129 | 148 | ||||||||||||||
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Per Sq. Ft. | Per Sq. Ft. | |||||||||||||||
Quarterly Data | ||||||||||||||||
Balance Sheet/Cost Data as of 9/30/12 | ||||||||||||||||
Condominium book value | $ | 11,741 | $ | 20,325 | ||||||||||||
Condominium estimated cost to complete | $ | 2,070 | $ | 1,096 | ||||||||||||
Estimated book value at completion | $ | 13,811 | $ | 121 | $ | 21,421 | $ | 298 | ||||||||
Projected total cost (before impairment losses) | $ | 112,700 | $ | 459 | $ | 138,500 | $ | 473 | ||||||||
Units Closed as of 9/30/12 | ||||||||||||||||
Quarter | 15 | 9 | ||||||||||||||
Year to date | 38 | 31 | ||||||||||||||
Project to date | 67 | 117 | ||||||||||||||
Square Footage of Units Closed as of 9/30/12 (1) | ||||||||||||||||
Quarter | 25,173 | 22,183 | ||||||||||||||
Year to date | 72,852 | 57,486 | ||||||||||||||
Project to date | 131,334 | 220,759 | ||||||||||||||
Gross Revenue as of 9/30/12 | ||||||||||||||||
Quarter | $ | 9,184 | $ | 365 | $ | 14,333 | $ | 646 | ||||||||
Year to date | $ | 27,777 | $ | 381 | $ | 36,266 | $ | 631 | ||||||||
Project to date | $ | 51,487 | $ | 392 | $ | 136,747 | $ | 619 | ||||||||
Cash flow from sales as of 9/30/12 (3) | ||||||||||||||||
Quarter | $ | 7,044 | $ | 280 | $ | 11,816 | $ | 533 | ||||||||
Year to date | $ | 19,293 | $ | 265 | $ | 29,620 | $ | 515 | ||||||||
Project to date | $ | 32,461 | $ | 247 | $ | 109,505 | $ | 496 |
1) | Average square footage information is based on approximate amounts, and individual unit sizes may vary. |
2) | Units “under contract” includes all units currently under contract. However, the Company has experienced contract terminations in these and other condominium projects when units become available for delivery and may experience additional terminations in connection with existing projects. Accordingly, there can be no assurance that condominium units under contract will close. |
3) | Amounts represent approximate cash flows from condominium activities beginning in the period of initial closings for each community. |
Supplemental Financial Data | 14 | Page |
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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 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, 2012 and 2011 is provided below.
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
New community development and acquisition activity (1) | $ | 103,331 | $ | 21,701 | $ | 177,697 | $ | 56,240 | ||||||||
Periodically recurring capital expenditures | ||||||||||||||||
Community rehabilitation and other revenue generating improvements (2) | 1,212 | 530 | 2,522 | 1,254 | ||||||||||||
Other community additions and improvements (3) | 2,214 | 1,875 | 5,736 | 5,443 | ||||||||||||
Annually recurring capital expenditures | ||||||||||||||||
Carpet replacements and other community additions and improvements (4) | 4,672 | 5,458 | 12,152 | 11,978 | ||||||||||||
Corporate additions and improvements | 76 | 440 | 521 | 926 | ||||||||||||
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$ | 111,505 | $ | 30,004 | $ | 198,628 | $ | 75,841 | |||||||||
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Other Data | ||||||||||||||||
Capitalized interest | $ | 1,414 | $ | 886 | $ | 4,414 | $ | 1,892 | ||||||||
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Capitalized development and associated costs (5) | $ | 973 | $ | 879 | $ | 2,692 | $ | 1,975 | ||||||||
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1) | Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between years. In the three and nine months ended September 30, 2012, the Company acquired one mixed-use community for a purchase price of approximately $74,000. There was no acquisition activity for the three or nine months ended September 30, 2011. |
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. |
Supplemental Financial Data | 15 | Page |
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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 | ||||||||||
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 Massachusetts Avenue™ | Washington, D.C. | Apartments | 269 | 35 | % |
Financial Data | ||||||||||||||||||||||||||||||||||||||||
As of | Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2012 | September 30, 2012 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Gross | Company’s | Company’s | Mgmt. | Company’s | Mgmt. | |||||||||||||||||||||||||||||||||||
Joint Venture | Investment in Real Estate (6) | Mortgage Notes Payable | Entity Equity | Equity Investment | Entity NOI | Equity in Income (Loss) | Fees & Other | Entity NOI | Equity in Income (Loss) | Fees & Other | ||||||||||||||||||||||||||||||
Post Collier Hills® (1) | $ | 55,065 | $ | 39,565 | (2) | $ | 9,224 | $ | (4,646 | ) (1) | $ | 678 | $ | (5 | ) | $ | 2,066 | $ | (4 | ) | ||||||||||||||||||||
Post Crest® (1) | 64,453 | 46,158 | (2) | 10,621 | (7,019 | ) (1) | 772 | (8 | ) | 2,282 | (29 | ) | ||||||||||||||||||||||||||||
Post Lindbergh® (1) | 60,773 | 41,000 | (3) | 13,765 | (4,527 | ) (1) | 742 | (1 | ) | 2,201 | (11 | ) | ||||||||||||||||||||||||||||
Post Biltmore™ (7) | — | — | 677 | 269 | — | — | — | 6,034 | ||||||||||||||||||||||||||||||||
Post Massachusetts Avenue™ | 70,749 | 51,000 | (4) | 5,434 | 4,771 | 1,859 | 489 | 5,551 | 1,426 | |||||||||||||||||||||||||||||||
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Total | $ | 251,040 | $ | 177,723 | $ | 39,721 | $ | (11,152 | ) | $ | 4,051 | $ | 475 | $ | 208 (5) | $ | 12,100 | $ | 7,416 | $ | 623 (5) | |||||||||||||||||||
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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. |
7) | The unconsolidated entity that owned this apartment community sold it to a third party for gross proceeds of approximately $51,075 in February 2012. The mortgage note of $29,272 was repaid in full upon the sale of the apartment community, and the cash proceeds were distributed to its members. The Company recognized its share of the gain on the sale of this community of $6,055 in its equity in earnings of unconsolidated entities on the consolidated statement of operations for the nine months ended September 30, 2012. Entity NOI through the date of sale was excluded from the above table since amounts are reported as discontinued operations at the unconsolidated entity level. |
Supplemental Financial Data | 16 | Page |
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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, 2012 | Adjustments | As Adjusted (3) | |||||||||
Rental revenues | $ | 81,069 | $ | (2,407 | ) (2) | $ | 78,662 | |||||
Other property revenues | 5,096 | (39 | ) (2) | 5,057 | ||||||||
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Total rental and other revenues(A) | 86,165 | (2,446 | ) | 83,719 | ||||||||
Property operating & maintenance expenses (excluding depreciation and amortization)(B) | 37,341 | (5,151 | ) (2) | 32,190 | ||||||||
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Property net operating income (Table 1)(A-B) | $ | 48,824 | $ | 2,705 | $ | 51,529 | ||||||
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Assumed property management fee (calculated at 3% of revenues)(A x 3%) | (2,512 | ) | ||||||||||
Assumed property capital expenditure reserve ($300 per unit per year based on 18,691 units) | (1,402 | ) | ||||||||||
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Adjusted property net operating income | $ | 47,615 | ||||||||||
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Annualized property net operating income(C) | $ | 190,460 | ||||||||||
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Apartment units represented(D) | 22,218 | (3,527 | ) (2) | 18,691 | ||||||||
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Other Asset Data | As of September 30, 2012 | Adjustments | As Adjusted | |||||||||
Cash & equivalents | $ | 64,222 | $ | — | $ | 64,222 | ||||||
Real estate assets acquired, at cost (10) | — | 74,000 | (10) | 74,000 | ||||||||
Real estate assets under construction, at cost (4) | 115,594 | 76,957 | 192,551 | |||||||||
Land held for future investment | 45,957 | — | 45,957 | |||||||||
For-sale condominiums | 32,066 | — | 32,066 | |||||||||
Investments in and advances to unconsolidated real estate entities (5) | 5,040 | (5,040 | ) (5) | — | ||||||||
Restricted cash and other assets (10) | 37,280 | (666 | ) (10) | 36,614 | ||||||||
Cash & other assets of unconsolidated apartment entities (6) | 4,965 | (3,524 | ) (6) | 1,441 | ||||||||
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Total(E) | $ | 305,124 | $ | 141,727 | $ | 446,851 | ||||||
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Other Liability Data | ||||||||||||
Indebtedness (7) | $ | 1,036,492 | $ | (10,941 | ) (7) | $ | 1,025,551 | |||||
Investments in unconsolidated real estate entities (5) | 16,192 | (16,192 | ) (5) | — | ||||||||
Other liabilities (including noncontrolling interests) (8) | 121,346 | (7,653 | ) (8) | 113,693 | ||||||||
Total liabilities of unconsolidated apartment entities (9) | 179,651 | (129,575 | ) (9) | 50,076 | ||||||||
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Total(F) | $ | 1,353,681 | $ | (164,361 | ) | $ | 1,189,320 | |||||
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Other Data | As of September 30, 2012 | |||||||||||
# Shares/Units | Stock Price | Implied Value | ||||||||||
Liquidation value of preferred shares(G) | $ | 43,392 | ||||||||||
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Common shares outstanding | 54,413 | |||||||||||
Common units outstanding | 143 | |||||||||||
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Total(H) | 54,556 | $ | 47.96 | $ | 2,616,506 | |||||||
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Implied market value of Company gross real estate assets(I) = (F+G+H-E) | $ | 3,402,367 | ||||||||||
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Implied Portfolio Capitalization Rate(C÷I) | 5.6 | % | ||||||||||
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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 quarter ended September 30, 2012, for properties stabilized as of July 1, 2012, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of July 1, 2012, 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 | Page |
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2) | The following table summarizes the adjustments made to the components of property net operating income for the three months ended September 30, 2012, to adjust property net operating income to the Company’s share for fully stabilized communities: |
Rental Revenue | Other Revenue | Expenses | Units | |||||||||||||
Communities acquired | $ | (1,159 | ) | $ | (60 | ) | $ | (428 | ) | (360 | ) | |||||
Communities in lease-up | (479 | ) | (43 | ) | (642 | ) | (2,046 | ) | ||||||||
Company share of unconsolidated entities | 1,805 | 134 | 660 | (1,077 | ) | |||||||||||
Minority share of consolidated real estate entity | (549 | ) | (5 | ) | (230 | ) | (44 | ) | ||||||||
Corporate property management expenses | — | — | (2,792 | ) | — | |||||||||||
Corporate apartments and other | (2,025 | ) | (65 | ) | (1,719 | ) | — | |||||||||
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$ | (2,407 | ) | $ | (39 | ) | $ | (5,151 | ) | (3,527 | ) | ||||||
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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, 2012: |
Rental and Other Revenues | Property Operating & Maintenace Expenses (ex. Deprec. and Amort.) | Property Net Operating Income (NOI) | Percentage of Total NOI | Apartment Units / Commercial Sq. Ft. | ||||||||||||||||
Atlanta | $ | 21,996 | $ | 8,863 | $ | 13,133 | 25.5 | % | 5,707 | |||||||||||
Washington DC | 14,207 | 4,403 | 9,804 | 19.0 | % | 2,395 | ||||||||||||||
Dallas | 17,362 | 7,561 | 9,801 | 19.0 | % | 4,725 | ||||||||||||||
Tampa | 8,851 | 3,275 | 5,576 | 10.8 | % | 2,111 | ||||||||||||||
Charlotte | 4,985 | 1,672 | 3,313 | 6.4 | % | 1,388 | ||||||||||||||
New York | 3,155 | 1,382 | 1,773 | 3.4 | % | 293 | ||||||||||||||
Houston | 3,446 | 1,407 | 2,039 | 4.0 | % | 837 | ||||||||||||||
Orlando | 2,777 | 1,042 | 1,735 | 3.4 | % | 598 | ||||||||||||||
Austin | 2,845 | 1,249 | 1,596 | 3.1 | % | 637 | ||||||||||||||
Commercial | 4,095 | 1,336 | 2,759 | 5.4 | % | — | ||||||||||||||
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Total | $ | 83,719 | $ | 32,190 | $ | 51,529 | 100.0 | % | 18,691 | |||||||||||
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Approximate commercial Sq. Ft. | 700,000 | |||||||||||||||||||
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4) | The “As Adjusted” amount represents the CIP balance per the Company’s balance sheet consisting of the following: |
Post Carlyle Square™ - Phase II | $ | 80,290 | ||||
Post South Lamar™ | 33,973 | |||||
Post Midtown Square® - Phase III | 18,121 | |||||
Post Parkside™ at Wade - Phase I | 21,385 | |||||
Post Lake® at Baldwin Park - Phase III | 22,683 | |||||
Post Richmond Avenue™ | 9,987 | |||||
Post Soho Square™ | 6,112 | |||||
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$ | 192,551 | |||||
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5) | The adjustment reflects a reduction for the investments in unconsolidated entities, as the Company’s respective share of net operating income of such investments is included in the adjusted net operating income reflected above. |
6) | The “As of September 30, 2012” 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 adjustment reflects a reduction for the minority interest portion of the consolidated mortgage debt of a consolidated joint venture community. Likewise, only the Company’s majority share of that community is included in the adjusted net operating income reflected above. |
8) | The “As of September 30, 2012” 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 $7,704, offset by the addition of noncontrolling interests of consolidated real estate entities of $51. |
9) | The “As of September 30, 2012” 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. |
10) | This adjustment represents the undepreciated real estate assets of Post South End™ acquired during the third quarter of 2012 and which was excluded from net operating income reflected above. Certain assets acquired totaling $666 were reflected in other assets under GAAP. |
Supplemental Financial Data | 18 | Page |
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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 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, 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 (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 (loss)” is the most directly comparable GAAP measure to NOI.
Supplemental Financial Data | 19 | Page |
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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 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 | Page |
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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, 2012 | September 30, 2011 | June 30, 2012 | September 30, 2012 | September 30, 2011 | ||||||||||||||||
Total same store NOI | $ | 47,185 | $ | 43,271 | $ | 46,202 | $ | 138,453 | $ | 125,748 | ||||||||||
Property NOI from other operating segments | 1,639 | 480 | 521 | 2,511 | 692 | |||||||||||||||
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| |||||||||||
Consolidated property NOI | 48,824 | 43,751 | 46,723 | 140,964 | 126,440 | |||||||||||||||
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| |||||||||||
Add (subtract): | ||||||||||||||||||||
Interest income | 20 | 374 | 288 | 359 | 982 | |||||||||||||||
Other revenues | 209 | 243 | 206 | 637 | 686 | |||||||||||||||
Depreciation | (20,334 | ) | (18,823 | ) | (19,497 | ) | (59,172 | ) | (56,383 | ) | ||||||||||
Interest expense | (11,816 | ) | (14,207 | ) | (11,103 | ) | (34,564 | ) | (43,119 | ) | ||||||||||
Amortization of deferred financing costs | (667 | ) | (717 | ) | (698 | ) | (2,026 | ) | (2,085 | ) | ||||||||||
General and administrative | (3,763 | ) | (3,970 | ) | (3,883 | ) | (11,931 | ) | (12,332 | ) | ||||||||||
Investment and development | (203 | ) | (239 | ) | (322 | ) | (1,005 | ) | (1,013 | ) | ||||||||||
Other investment costs | (547 | ) | (329 | ) | (306 | ) | (1,159 | ) | (1,278 | ) | ||||||||||
Gains on condominium sales activities, net | 10,261 | 2,581 | 8,530 | 25,695 | 8,757 | |||||||||||||||
Equity in income of unconsolidated real estate entities, net | 475 | 235 | 495 | 7,416 | 790 | |||||||||||||||
Other income (expense), net | (137 | ) | (71 | ) | 737 | 444 | 230 | |||||||||||||
Net loss on extinguishment of indebtedness | — | — | — | (301 | ) | — | ||||||||||||||
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| |||||||||||
Net income | $ | 22,322 | $ | 8,828 | $ | 21,170 | $ | 65,357 | $ | 21,675 | ||||||||||
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Supplemental Financial Data | 21 | Page |
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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 ‘12 vs. Q3 ‘11 % Change | Q3 ‘12 vs. Q2 ‘12 % Change | Q3 ‘12 % Same Store NOI | |||||||||||||||||||||||||||
September 30, 2012 | September 30, 2011 | June 30, 2012 | ||||||||||||||||||||||||||||
Rental and other revenues | ||||||||||||||||||||||||||||||
Atlanta | $ | 20,982 | $ | 19,655 | $ | 20,320 | 6.8% | 3.3% | ||||||||||||||||||||||
Washington, D.C. | 13,283 | 12,837 | 13,108 | 3.5% | 1.3% | |||||||||||||||||||||||||
Dallas | 16,261 | 15,101 | 15,720 | 7.7% | 3.4% | |||||||||||||||||||||||||
Tampa | 8,851 | 8,226 | 8,628 | 7.6% | 2.6% | |||||||||||||||||||||||||
Charlotte | 5,013 | 4,594 | 4,845 | 9.1% | 3.5% | |||||||||||||||||||||||||
New York | 3,709 | 3,580 | 3,668 | 3.6% | 1.1% | |||||||||||||||||||||||||
Houston | 3,446 | 3,135 | 3,359 | 9.9% | 2.6% | |||||||||||||||||||||||||
Orlando | 2,777 | 2,583 | 2,711 | 7.5% | 2.4% | |||||||||||||||||||||||||
Austin | 2,845 | 2,619 | 2,770 | 8.6% | 2.7% | |||||||||||||||||||||||||
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Total rental and other revenues | 77,167 | 72,330 | 75,129 | 6.7% | 2.7% | |||||||||||||||||||||||||
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Property operating and maintenance expenses (exclusive of depreciation and amortization) | ||||||||||||||||||||||||||||||
Atlanta | 8,569 | 7,963 | 8,087 | 7.6% | 6.0% | |||||||||||||||||||||||||
Washington, D.C. | 4,157 | 4,384 | 3,946 | (5.2)% | 5.3% | |||||||||||||||||||||||||
Dallas | 6,996 | 6,691 | 6,655 | 4.6% | 5.1% | |||||||||||||||||||||||||
Tampa | 3,275 | 3,153 | 3,257 | 3.9% | 0.6% | |||||||||||||||||||||||||
Charlotte | 1,675 | 1,729 | 1,742 | (3.1)% | (3.8)% | |||||||||||||||||||||||||
New York | 1,612 | 1,561 | 1,607 | 3.3% | 0.3% | |||||||||||||||||||||||||
Houston | 1,407 | 1,388 | 1,439 | 1.4% | (2.2)% | |||||||||||||||||||||||||
Orlando | 1,042 | 1,028 | 1,001 | 1.4% | 4.1% | |||||||||||||||||||||||||
Austin | 1,249 | 1,162 | 1,193 | 7.5% | 4.7% | |||||||||||||||||||||||||
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| |||||||||||||||||||||||||
Total | 29,982 | 29,059 | 28,927 | 3.2% | 3.6% | |||||||||||||||||||||||||
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| |||||||||||||||||||||||||
Net operating income | ||||||||||||||||||||||||||||||
Atlanta | 12,413 | 11,692 | 12,233 | 6.2% | 1.5% | 26.4% | ||||||||||||||||||||||||
Washington, D.C. | 9,126 | 8,453 | 9,162 | 8.0% | (0.4)% | 19.3% | ||||||||||||||||||||||||
Dallas | 9,265 | 8,410 | 9,065 | 10.2% | 2.2% | 19.6% | ||||||||||||||||||||||||
Tampa | 5,576 | 5,073 | 5,371 | 9.9% | 3.8% | 11.8% | ||||||||||||||||||||||||
Charlotte | 3,338 | 2,865 | 3,103 | 16.5% | 7.6% | 7.1% | ||||||||||||||||||||||||
New York | 2,097 | 2,019 | 2,061 | 3.9% | 1.7% | 4.4% | ||||||||||||||||||||||||
Houston | 2,039 | 1,747 | 1,920 | 16.7% | 6.2% | 4.3% | ||||||||||||||||||||||||
Orlando | 1,735 | 1,555 | 1,710 | 11.6% | 1.5% | 3.7% | ||||||||||||||||||||||||
Austin | 1,596 | 1,457 | 1,577 | 9.5% | 1.2% | 3.4% | ||||||||||||||||||||||||
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| |||||||||||||||||||||||
Total same store NOI | $ | 47,185 | $ | 43,271 | $ | 46,202 | 9.0% | 2.1% | 100.0% | |||||||||||||||||||||
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Average rental rate per unit | ||||||||||||||||||||||||||||||
Atlanta | $ | 1,214 | $ | 1,139 | $ | 1,187 | 6.6% | 2.3% | ||||||||||||||||||||||
Washington, D.C. | 1,883 | 1,826 | 1,859 | 3.1% | 1.3% | |||||||||||||||||||||||||
Dallas | 1,160 | 1,080 | 1,137 | 7.4% | 2.1% | |||||||||||||||||||||||||
Tampa | 1,348 | 1,260 | 1,321 | 7.0% | 2.0% | |||||||||||||||||||||||||
Charlotte | 1,167 | 1,071 | 1,129 | 9.0% | 3.4% | |||||||||||||||||||||||||
New York | 3,824 | 3,715 | 3,777 | 2.9% | 1.2% | |||||||||||||||||||||||||
Houston | 1,338 | 1,218 | 1,292 | 9.9% | 3.6% | |||||||||||||||||||||||||
Orlando | 1,487 | 1,383 | 1,447 | 7.5% | 2.7% | |||||||||||||||||||||||||
Austin | 1,466 | 1,350 | 1,421 | 8.6% | 3.2% | |||||||||||||||||||||||||
Total average rental rate per unit | 1,370 | 1,288 | 1,341 | 6.4% | 2.2% |
Supplemental Financial Data | 22 | Page |
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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, 2012 | September 30, 2011 | % Change | |||||||||||||
Rental and other revenues | |||||||||||||||
Atlanta | $ | 61,273 | $ | 57,095 | 7.3% | ||||||||||
Washington, D.C. | 39,245 | 37,263 | 5.3% | ||||||||||||
Dallas | 47,103 | 43,569 | 8.1% | ||||||||||||
Tampa | 25,988 | 24,199 | 7.4% | ||||||||||||
Charlotte | 14,521 | 13,301 | 9.2% | ||||||||||||
New York | 10,979 | 10,513 | 4.4% | ||||||||||||
Houston | 10,050 | 9,116 | 10.2% | ||||||||||||
Orlando | 8,150 | 7,575 | 7.6% | ||||||||||||
Austin | 8,307 | 7,421 | 11.9% | ||||||||||||
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| ||||||||||||
Total rental and other revenues | 225,616 | 210,052 | 7.4% | ||||||||||||
|
|
|
| ||||||||||||
Property operating and maintenance expenses (exclusive of depreciation and amortization) | |||||||||||||||
Atlanta | 24,472 | 23,681 | 3.3% | ||||||||||||
Washington, D.C. | 12,126 | 12,080 | 0.4% | ||||||||||||
Dallas | 20,178 | 19,384 | 4.1% | ||||||||||||
Tampa | 9,703 | 9,203 | 5.4% | ||||||||||||
Charlotte | 5,037 | 5,068 | (0.6)% | ||||||||||||
New York | 4,905 | 4,632 | 5.9% | ||||||||||||
Houston | 4,052 | 3,976 | 1.9% | ||||||||||||
Orlando | 3,046 | 3,012 | 1.1% | ||||||||||||
Austin | 3,644 | 3,268 | 11.5% | ||||||||||||
|
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|
| ||||||||||||
Total | 87,163 | 84,304 | 3.4% | ||||||||||||
|
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| ||||||||||||
Net operating income | |||||||||||||||
Atlanta | 36,801 | 33,414 | 10.1% | ||||||||||||
Washington, D.C. | 27,119 | 25,183 | 7.7% | ||||||||||||
Dallas | 26,925 | 24,185 | 11.3% | ||||||||||||
Tampa | 16,285 | 14,996 | 8.6% | ||||||||||||
Charlotte | 9,484 | 8,233 | 15.2% | ||||||||||||
New York | 6,074 | 5,881 | 3.3% | ||||||||||||
Houston | 5,998 | 5,140 | 16.7% | ||||||||||||
Orlando | 5,104 | 4,563 | 11.9% | ||||||||||||
Austin | 4,663 | 4,153 | 12.3% | ||||||||||||
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| ||||||||||||
Total same store NOI | $ | 138,453 | $ | 125,748 | 10.1% | ||||||||||
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| ||||||||||||
Average rental rate per unit | |||||||||||||||
Atlanta | $ | 1,190 | $ | 1,113 | 6.9% | ||||||||||
Washington, D.C. | 1,861 | 1,806 | 3.0% | ||||||||||||
Dallas | 1,138 | 1,061 | 7.3% | ||||||||||||
Tampa | 1,322 | 1,231 | 7.4% | ||||||||||||
Charlotte | 1,134 | 1,043 | 8.7% | ||||||||||||
New York | 3,782 | 3,691 | 2.5% | ||||||||||||
Houston | 1,298 | 1,194 | 8.7% | ||||||||||||
Orlando | 1,453 | 1,358 | 7.0% | ||||||||||||
Austin | 1,429 | 1,316 | 8.6% | ||||||||||||
Total average rental rate per unit | 1,344 | 1,263 | 6.4% |
Supplemental Financial Data | 23 | Page |
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Table 3 - Operating Community Table
Year Completed/ | Avg. | Q3 2012 | Q3 2012 | |||||||||||||||||||||||||||
Market / | Year of | Unit | Avg. Monthly Rent | Average | ||||||||||||||||||||||||||
Submarket / | Substantial | No. of | Size | Per | Per | Economic | ||||||||||||||||||||||||
Community | Renovations | Units | (Sq. Ft.) | Unit | Sq. Ft. | Occ. | ||||||||||||||||||||||||
Atlanta | ||||||||||||||||||||||||||||||
Buckhead / Brookhaven | ||||||||||||||||||||||||||||||
Post Alexander™ | 2008 | 307 | 1,016 | $ | 1,644 | $ | 1.62 | 97.5% | ||||||||||||||||||||||
Post Brookhaven® | 1990-1992 | 735 | 933 | 1,034 | 1.11 | 97.3% | ||||||||||||||||||||||||
Post Chastain® | 1990/2008 | 558 | 866 | 1,150 | 1.33 | 98.5% | ||||||||||||||||||||||||
Post Collier Hills® (1)(2) | 1997 | 396 | 948 | 1,058 | 1.12 | 96.7% | ||||||||||||||||||||||||
Post Gardens® | 1998 | 397 | 1,039 | 1,231 | 1.18 | 98.2% | ||||||||||||||||||||||||
Post Glen® (2) | 1997 | 314 | 1,076 | 1,226 | 1.14 | 96.4% | ||||||||||||||||||||||||
Post Lindbergh® (1)(2) | 1998 | 396 | 910 | 1,101 | 1.21 | 99.1% | ||||||||||||||||||||||||
Post Peachtree Hills® | 1992-1994/2009 | 300 | 978 | 1,302 | 1.33 | 97.4% | ||||||||||||||||||||||||
Post StratfordTM | 2000 | 250 | 999 | 1,258 | 1.26 | 97.7% | ||||||||||||||||||||||||
Dunwoody | ||||||||||||||||||||||||||||||
Post Crossing® (2) | 1995 | 354 | 1,036 | 1,109 | 1.07 | 98.5% | ||||||||||||||||||||||||
Emory Area | ||||||||||||||||||||||||||||||
Post BriarcliffTM (2) | 1999 | 688 | 1,006 | 1,200 | 1.19 | 97.0% | ||||||||||||||||||||||||
Midtown | ||||||||||||||||||||||||||||||
Post ParksideTM (2) | 2000 | 188 | 885 | 1,413 | 1.60 | 96.5% | ||||||||||||||||||||||||
Post Renaissance® | 1992-1994 | 342 | 908 | 1,058 | 1.17 | 96.7% | ||||||||||||||||||||||||
Northwest Atlanta | ||||||||||||||||||||||||||||||
Post Crest® (1)(2) | 1996 | 410 | 1,033 | 1,035 | 1.00 | 95.6% | ||||||||||||||||||||||||
Post Riverside® | 1998 | 522 | 1,062 | 1,473 | 1.39 | 96.2% | ||||||||||||||||||||||||
Post SpringTM (2) | 2000 | 452 | 977 | 1,029 | 1.05 | 96.0% | ||||||||||||||||||||||||
Dallas | ||||||||||||||||||||||||||||||
North Dallas | ||||||||||||||||||||||||||||||
Post Addison CircleTM (2) | 1998-2000 | 1,334 | 846 | 1,044 | 1.23 | 96.4% | ||||||||||||||||||||||||
Post EastsideTM | 2008 | 435 | 910 | 1,138 | 1.25 | 94.9% | ||||||||||||||||||||||||
Post Legacy (2) | 2000 | 384 | 810 | 1,023 | 1.26 | 96.1% | ||||||||||||||||||||||||
Post Sierra at Frisco Bridges™ | 2009 | 268 | 896 | 1,105 | 1.23 | 96.0% | ||||||||||||||||||||||||
Uptown Dallas | ||||||||||||||||||||||||||||||
Post AbbeyTM | 1996 | 34 | 1,223 | 1,878 | 1.54 | 100.0% | ||||||||||||||||||||||||
Post Cole’s CornerTM | 1998 | 186 | 799 | 1,155 | 1.45 | 97.1% | ||||||||||||||||||||||||
Post GalleryTM | 1999 | 34 | 2,307 | 2,763 | 1.20 | 100.0% | ||||||||||||||||||||||||
Post HeightsTM | 1998-1999/2009 | 368 | 845 | 1,320 | 1.56 | 95.2% | ||||||||||||||||||||||||
Post Katy Trail™ | 2010 | 227 | 898 | 1,610 | 1.79 | 95.7% | ||||||||||||||||||||||||
Post MeridianTM | 1991 | 133 | 780 | 1,298 | 1.66 | 96.2% | ||||||||||||||||||||||||
Post SquareTM | 1996 | 216 | 863 | 1,270 | 1.47 | 97.6% | ||||||||||||||||||||||||
Post Uptown VillageTM | 1995-2000 | 496 | 735 | 1,090 | 1.48 | 97.3% | ||||||||||||||||||||||||
Post VineyardTM | 1996 | 116 | 733 | 1,145 | 1.56 | 96.6% | ||||||||||||||||||||||||
Post VintageTM | 1993 | 160 | 750 | 1,173 | 1.56 | 97.4% | ||||||||||||||||||||||||
Post WorthingtonTM (2) | 1993/2008 | 334 | 820 | 1,423 | 1.74 | 95.8% |
Supplemental Financial Data | 24 | Page |
![]() | ![]() |
Table 3 (con’t) - Operating Community Table
Year Completed/ | Avg. | Q3 2012 | Q3 2012 | |||||||||||||||||||||||||||
Market / | Year of | Unit | Avg. Monthly Rent | Average | ||||||||||||||||||||||||||
Submarket / | Substantial | No. of | Size | Per | Per | Economic | ||||||||||||||||||||||||
Community | Renovations | Units | (Sq. Ft.) | Unit | Sq. Ft. | Occ. | ||||||||||||||||||||||||
Austin | ||||||||||||||||||||||||||||||
Post Barton Creek™ | 1998 | 160 | 1,162 | $ | 1,647 | $ | 1.42 | 96.3% | ||||||||||||||||||||||
Post Park Mesa™ | 1992 | 148 | 1,091 | 1,390 | 1.27 | 96.7% | ||||||||||||||||||||||||
Post West Austin™ | 2009 | 329 | 889 | 1,413 | 1.59 | 95.6% | ||||||||||||||||||||||||
Houston | ||||||||||||||||||||||||||||||
Post Midtown Square® | 1999-2000 | 529 | 759 | 1,253 | 1.65 | 97.4% | ||||||||||||||||||||||||
Post Rice LoftsTM | 1998 | 308 | 906 | 1,486 | 1.64 | 95.4% | ||||||||||||||||||||||||
Tampa | ||||||||||||||||||||||||||||||
Post Bay at Rocky Point™ | 1997 | 150 | 1,012 | 1,389 | 1.37 | 95.9% | ||||||||||||||||||||||||
Post Harbour PlaceTM | 1999-2002 | 578 | 920 | 1,467 | 1.59 | 98.9% | ||||||||||||||||||||||||
Post Hyde Park® (2) | 1996-2008 | 467 | 1,011 | 1,421 | 1.41 | 97.6% | ||||||||||||||||||||||||
Post Rocky Point® (2) | 1996-1998 | 916 | 1,031 | 1,229 | 1.19 | 95.1% | ||||||||||||||||||||||||
Orlando | ||||||||||||||||||||||||||||||
Post Lake® at Baldwin Park | 2004-2007 | 350 | 1,013 | 1,523 | 1.50 | 97.7% | ||||||||||||||||||||||||
Post ParksideTM | 1999 | 248 | 852 | 1,435 | 1.68 | 97.3% | ||||||||||||||||||||||||
Charlotte | ||||||||||||||||||||||||||||||
Post Ballantyne (2) | 2004 | 323 | 1,252 | 1,115 | 0.89 | 96.9% | ||||||||||||||||||||||||
Post Gateway PlaceTM (2) | 2000 | 436 | 806 | 1,089 | 1.35 | 96.9% | ||||||||||||||||||||||||
Post Park at Phillips Place® | 1998 | 402 | 1,099 | 1,319 | 1.20 | 97.7% | ||||||||||||||||||||||||
Post South End™ (4) | 2009 | 360 | 847 | 1,387 | 1.64 | 95.0% | ||||||||||||||||||||||||
Post Uptown PlaceTM | 2000 | 227 | 800 | 1,124 | 1.41 | 98.0% | ||||||||||||||||||||||||
Washington D.C. | ||||||||||||||||||||||||||||||
Maryland | ||||||||||||||||||||||||||||||
Post Fallsgrove | 2003 | 361 | 983 | 1,731 | 1.76 | 95.1% | ||||||||||||||||||||||||
Post Park® | 2010 | 396 | 975 | 1,599 | 1.64 | 96.3% | ||||||||||||||||||||||||
Virginia | ||||||||||||||||||||||||||||||
Post Carlyle Square™ - Phase I | 2006 | 205 | 861 | 2,435 | 2.83 | 95.5% | ||||||||||||||||||||||||
Post Corners at Trinity Centre (2) | 1996 | 336 | 994 | 1,598 | 1.61 | 96.9% | ||||||||||||||||||||||||
Post Pentagon RowTM | 2001 | 504 | 853 | 2,313 | 2.71 | 95.8% | ||||||||||||||||||||||||
Post Tysons CornerTM | 1990 | 499 | 810 | 1,751 | 2.16 | 94.0% | ||||||||||||||||||||||||
Washington D.C. | ||||||||||||||||||||||||||||||
Post Massachusetts AvenueTM (1)(2) | 2002 | 269 | 884 | 3,106 | 3.51 | 95.8% | ||||||||||||||||||||||||
New York City | ||||||||||||||||||||||||||||||
Post LuminariaTM (2)(3) | 2002 | 138 | 721 | 3,799 | 5.27 | 97.8% | ||||||||||||||||||||||||
Post ToscanaTM (2) | 2003 | 199 | 817 | 3,842 | 4.70 | 94.5% |
1) | Communities held in unconsolidated entities. |
2) | Communities encumbered by secured mortgage indebtedness. |
3) | The Company owns a 68% interest in this community. |
4) | Average monthly rent and economic occupancy data reflects the first two full months after acquisition. |
Supplemental Financial Data | 25 | Page |
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Table 4 - Year-to-Date Margin Analysis
(In thousands)
Nine months ended September 30, 2012 | |||||||||||||||||||||||||
Rental and Other Property Revenues | Property Operating & Maintenance Expenses | Net Operating Income (“NOI”) | NOI Margin | Expense Margin | |||||||||||||||||||||
Same store communities | $ | 225,616 | $ | 87,163 | $ | 138,453 | 61.4% | 38.6% | |||||||||||||||||
Development and lease-up communities (2)(6) | 599 | 880 | (281 | ) | N/A | N/A | |||||||||||||||||||
Acquired communities | 4,440 | 1,971 | 2,469 | 55.6% | 44.4% | ||||||||||||||||||||
Other property segments: | |||||||||||||||||||||||||
Corporate apartments | 5,664 | 4,663 | 1,001 | 17.7% | 82.3% | ||||||||||||||||||||
Commercial | 11,854 | 4,030 | 7,824 | 66.0% | 34.0% | ||||||||||||||||||||
Corporate property management expenses (1) | — | 8,502 | (8,502 | ) | |||||||||||||||||||||
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$ | 248,173 | $ | 107,209 | ||||||||||||||||||||||
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Consolidated property NOI (2) | $ | 140,964 | |||||||||||||||||||||||
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Third-party management fees | $ | 623 | |||||||||||||||||||||||
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1) | The following table summarizes the Company’s net property management expense as a percentage of adjusted property revenues: |
Numerator: | ||||||
Corporate property management expenses | $ | 8,502 | ||||
Less: Third-party management fees | (623 | ) | ||||
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Net property management expenses | $ | 7,879 | ||||
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Denominator: | ||||||
Total rental and other property revenues | $ | 248,173 | ||||
Less: Corporate apartment revenues | (5,664 | ) | ||||
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Adjusted property revenues | $ | 242,509 | ||||
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Net property management expenses as a percentage of adjusted property revenues | 3.2 | % | ||||
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2) | Consolidated property net operating income (“NOI”) is a non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of consolidated property NOI to GAAP net income (loss). |
Supplemental Financial Data | 26 | Page |
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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, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Annually recurring capital expenditures by operating segment | ||||||||||||||||||||
Same store communities | $ | 4,207 | $ | 5,308 | $ | 11,184 | $ | 11,638 | ||||||||||||
Development and lease-up | 4 | — | 4 | — | ||||||||||||||||
Acquired communities | 187 | — | 221 | — | ||||||||||||||||
Other segments | 274 | 150 | 743 | 340 | ||||||||||||||||
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Total annually recurring capital expenditures | $ | 4,672 | $ | 5,458 | $ | 12,152 | $ | 11,978 | ||||||||||||
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Periodically recurring capital expenditures by operating segment | ||||||||||||||||||||
Same store communities | $ | 1,840 | $ | 1,350 | $ | 4,267 | $ | 4,259 | ||||||||||||
Development and lease-up | 5 | — | 5 | — | ||||||||||||||||
Acquired communities | 16 | — | 16 | — | ||||||||||||||||
Other segments | 353 | 525 | 1,448 | 1,184 | ||||||||||||||||
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Total periodically recurring capital expenditures | $ | 2,214 | $ | 1,875 | $ | 5,736 | $ | 5,443 | ||||||||||||
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Total revenue generating capital expenditures | $ | 1,212 | $ | 530 | $ | 2,522 | $ | 1,254 | ||||||||||||
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Total property capital expenditures per statements of cash flows | $ | 8,098 | $ | 7,863 | $ | 20,410 | $ | 18,675 | ||||||||||||
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Table 6 - Computation of Debt Ratios
(In thousands)
As of September 30, | ||||||||||
2012 | 2011 | |||||||||
Total real estate assets per balance sheet | $ | 2,177,745 | $ | 2,025,333 | ||||||
Plus: | ||||||||||
Company share of real estate assets held in unconsolidated entities | 59,177 | 70,419 | ||||||||
Company share of accumulated depreciation - assets held in unconsolidated entities | 10,658 | 12,091 | ||||||||
Accumulated depreciation per balance sheet | 825,015 | 748,306 | ||||||||
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Total undepreciated real estate assets(A) | $ | 3,072,595 | $ | 2,856,149 | ||||||
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Total debt per balance sheet | $ | 1,036,492 | $ | 1,030,852 | ||||||
Plus: | ||||||||||
Company share of third party debt held in unconsolidated entities | 49,531 | 59,601 | ||||||||
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Total debt (adjusted for joint venture partners’ share of debt)(B) | $ | 1,086,023 | $ | 1,090,453 | ||||||
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Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt)(B÷A) | 35.3 | % | 38.2 | % | ||||||
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Total debt per balance sheet | $ | 1,036,492 | $ | 1,030,852 | ||||||
Plus: | ||||||||||
Company share of third party debt held in unconsolidated entities | 49,531 | 59,601 | ||||||||
Preferred shares at liquidation value | 43,392 | 43,392 | ||||||||
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Total debt and preferred equity (adjusted for joint venture partners’ share of debt)(C) | $ | 1,129,415 | $ | 1,133,845 | ||||||
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Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt)(C÷A) | 36.8 | % | 39.7 | % | ||||||
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Supplemental Financial Data | 27 | Page |
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Table 7 - Computation of Coverage Ratios
(In thousands)
Nine months ended | ||||||||||
September 30, | ||||||||||
2012 | 2011 | |||||||||
Net income (loss) | $ | 65,357 | $ | 21,675 | ||||||
Other non-cash (income) expense, net | 2,920 | 3,141 | ||||||||
Income tax expense, net | 469 | 568 | ||||||||
Gains on sales of real estate assets, net | (25,695 | ) | (8,757 | ) | ||||||
Gain on sale of real estate assets - unconsolidated entity, net | (6,055 | ) | — | |||||||
Net loss on early extinguishment of indebtedness | 301 | — | ||||||||
Depreciation expense | 59,172 | 56,383 | ||||||||
Depreciation and amort. (company share) of assets held in unconsolidated entities | 972 | 1,084 | ||||||||
Interest expense | 34,564 | 43,119 | ||||||||
Interest expense (company share) of assets held in unconsolidated entities | 1,970 | 2,592 | ||||||||
Amortization of deferred financing costs | 2,026 | 2,085 | ||||||||
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Income available for debt service(A) | $ | 136,001 | $ | 121,890 | ||||||
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Annualized income available for debt service(B) | $ | 181,335 | $ | 162,520 | ||||||
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Interest expense | $ | 34,564 | $ | 43,119 | ||||||
Interest expense (company share) of assets held in unconsolidated entities | 1,970 | 2,592 | ||||||||
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Adjusted interest expense(C) | 36,534 | 45,711 | ||||||||
Capitalized interest | 4,414 | 1,892 | ||||||||
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Adjusted interest expense (including capitalized interest)(D) | $ | 40,948 | $ | 47,603 | ||||||
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Adjusted interest expense | $ | 36,534 | $ | 45,711 | ||||||
Dividends to preferred shareholders | 2,766 | 3,533 | ||||||||
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Fixed charges (E) | 39,300 | 49,244 | ||||||||
Capitalized interest | 4,414 | 1,892 | ||||||||
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Fixed charges (including capitalized interest) (F) | $ | 43,714 | $ | 51,136 | ||||||
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Total debt (adjusted for joint venture partners’ share of debt) (see Table 6) (G) | $ | 1,086,023 | $ | 1,090,453 | ||||||
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Interest coverage ratio(A÷C) | 3.7x | 2.7x | ||||||||
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Interest coverage ratio (including capitalized interest)(A÷D) | 3.3x | 2.6x | ||||||||
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Fixed charge coverage ratio(A÷E) | 3.5x | 2.5x | ||||||||
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Fixed charge coverage ratio (including capitalized interest)(A÷F) | 3.1x | 2.4x | ||||||||
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Total debt to annualized income available for debt service ratio(G÷B) | 6.0x | 6.7x | ||||||||
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Table 8 - Calculation of Company Undepreciated Book Value Per Share
(In thousands, except per share data)
September 30, 2012 | |||||
Total Company shareholders’ equity per balance sheet | $ | 1,112,834 | |||
Plus: | |||||
Accumulated depreciation, per balance sheet | 825,015 | ||||
Noncontrolling interest of common unitholders in Operating Partnership, per balance sheet | 6,874 | ||||
Less: | |||||
Deferred financing costs, net, per balance sheet | (9,376 | ) | |||
Preferred shares at liquidation value | (43,392 | ) | |||
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Total undepreciated book value(A) | $ | 1,891,955 | |||
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Total common shares and units(B) | 54,556 | ||||
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Company undepreciated book value per share(A÷B) | $ | 34.68 | |||
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Supplemental Financial Data | 28 | Page |