Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PPS | |
Entity Registrant Name | POST PROPERTIES INC | |
Entity Central Index Key | 903127 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,593,958 | |
Post Apartment Homes, L.P. [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | PPS-A | |
Entity Registrant Name | POST APARTMENT HOMES LP | |
Entity Central Index Key | 1012271 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real estate assets | ||
Land | $317,077 | $317,077 |
Building and improvements | 2,326,433 | 2,323,626 |
Furniture, fixtures and equipment | 307,339 | 304,534 |
Construction in progress | 117,796 | 86,971 |
Land held for future investment | 30,545 | 33,197 |
Real estate assets, total | 3,099,190 | 3,065,405 |
Less: accumulated depreciation | -958,381 | -937,310 |
Assets held for sale, net of accumulated depreciation of $207 at December 31, 2014 | 672 | |
Total real estate assets | 2,140,809 | 2,128,767 |
Investments in and advances to unconsolidated real estate entities | 4,117 | 4,059 |
Cash and cash equivalents | 126,081 | 140,512 |
Restricted cash | 3,571 | 3,572 |
Deferred financing costs, net | 8,409 | 5,117 |
Other assets | 26,616 | 29,771 |
Total assets | 2,309,603 | 2,311,798 |
Liabilities, redeemable common units and equity | ||
Indebtedness | 891,705 | 892,459 |
Accounts payable, accrued expenses and other | 66,484 | 70,616 |
Investments in unconsolidated real estate entities | 16,621 | 16,624 |
Dividends and distributions payable | 21,886 | 21,852 |
Accrued interest payable | 7,933 | 4,229 |
Security deposits and prepaid rents | 14,356 | 12,972 |
Total liabilities | 1,018,985 | 1,018,752 |
Redeemable common units | 6,865 | 7,086 |
Commitments and contingencies | ||
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: 54,633 and 54,632 shares issued and 54,594 and 54,509 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 546 | 546 |
Additional paid-in-capital | 1,116,567 | 1,114,851 |
Accumulated earnings | 182,010 | 185,001 |
Accumulated other comprehensive income (loss) | -5,220 | -3,675 |
Stockholders Equity Subtotal Before Treasury Stock | 1,293,912 | 1,296,732 |
Less common stock in treasury, at cost, 122 and 207 shares at March 31, 2015 and December 31, 2014, respectively | -10,159 | -10,772 |
Total equity | 1,283,753 | 1,285,960 |
Total liabilities and members' equity | 2,309,603 | 2,311,798 |
Post Apartment Homes, L.P. [Member] | ||
Real estate assets | ||
Land | 317,077 | 317,077 |
Building and improvements | 2,326,433 | 2,323,626 |
Furniture, fixtures and equipment | 307,339 | 304,534 |
Construction in progress | 117,796 | 86,971 |
Land held for future investment | 30,545 | 33,197 |
Real estate assets, total | 3,099,190 | 3,065,405 |
Less: accumulated depreciation | -958,381 | -937,310 |
Assets held for sale, net of accumulated depreciation of $207 at December 31, 2014 | 672 | |
Total real estate assets | 2,140,809 | 2,128,767 |
Investments in and advances to unconsolidated real estate entities | 4,117 | 4,059 |
Cash and cash equivalents | 126,081 | 140,512 |
Restricted cash | 3,571 | 3,572 |
Deferred financing costs, net | 8,409 | 5,117 |
Other assets | 26,616 | 29,771 |
Total assets | 2,309,603 | 2,311,798 |
Liabilities, redeemable common units and equity | ||
Indebtedness | 891,705 | 892,459 |
Accounts payable, accrued expenses and other | 66,484 | 70,616 |
Investments in unconsolidated real estate entities | 16,621 | 16,624 |
Dividends and distributions payable | 21,886 | 21,852 |
Accrued interest payable | 7,933 | 4,229 |
Security deposits and prepaid rents | 14,356 | 12,972 |
Total liabilities | 1,018,985 | 1,018,752 |
Redeemable common units | 6,865 | 7,086 |
Commitments and contingencies | ||
Equity | ||
Preferred units | 43,392 | 43,392 |
General partner | 14,048 | 14,057 |
Limited partner | 1,231,533 | 1,232,186 |
Accumulated other comprehensive income (loss) | -5,220 | -3,675 |
Total equity | 1,283,753 | 1,285,960 |
Total liabilities and members' equity | $2,309,603 | $2,311,798 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation, assets held for sale | $958,381 | $937,310 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, liquidation preference | $50 | $50 |
Preferred stock, shares issued | 868,000 | 868,000 |
Preferred stock, shares outstanding | 868,000 | 868,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 54,633,000 | 54,632,000 |
Common stock, shares outstanding | 54,594,000 | 54,509,000 |
Common stock in treasury, shares | 122,000 | 207,000 |
Post Apartment Homes, L.P. [Member] | ||
Accumulated depreciation, assets held for sale | 958,381 | 937,310 |
Assets Held-for-Sale [Member] | ||
Accumulated depreciation, assets held for sale | 207 | |
Assets Held-for-Sale [Member] | Post Apartment Homes, L.P. [Member] | ||
Accumulated depreciation, assets held for sale | $207 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Rental | $87,661 | $88,028 |
Other property revenues | 5,457 | 5,265 |
Other | 313 | 219 |
Total revenues | 93,431 | 93,512 |
Expenses | ||
Property operating and maintenance (exclusive of items shown separately below) | 40,123 | 40,596 |
Depreciation | 21,257 | 21,767 |
General and administrative | 5,014 | 4,128 |
Investment and development | 235 | 811 |
Other investment costs | 134 | 273 |
Other expenses | 907 | |
Total expenses | 66,763 | 68,482 |
Operating income | 26,668 | 25,030 |
Interest income | 81 | 12 |
Interest expense | -8,093 | -11,244 |
Amortization of deferred financing costs | -449 | -645 |
Net gains on condominium sales activities | 1,773 | 810 |
Equity in income of unconsolidated real estate entities, net | 397 | 485 |
Other income (expense), net | -195 | -195 |
Net loss on extinguishment of indebtedness | -197 | |
Net income | 19,985 | 14,253 |
Noncontrolling interests - consolidated real estate entities | 16 | |
Noncontrolling interests - Operating Partnership | -42 | -33 |
Net income | 19,943 | 14,236 |
Distributions to preferred unitholders | -922 | -922 |
Net income available to common shareholders | 19,021 | 13,314 |
Per common share data - Basic | ||
Net income available to common shareholders | $0.35 | $0.25 |
Weighted average common shares outstanding - basic | 54,448 | 54,175 |
Per common share data - Diluted | ||
Net income available to common shareholders | $0.35 | $0.24 |
Weighted average common shares outstanding - diluted | 54,465 | 54,291 |
Post Apartment Homes, L.P. [Member] | ||
Revenues | ||
Rental | 87,661 | 88,028 |
Other property revenues | 5,457 | 5,265 |
Other | 313 | 219 |
Total revenues | 93,431 | 93,512 |
Expenses | ||
Property operating and maintenance (exclusive of items shown separately below) | 40,123 | 40,596 |
Depreciation | 21,257 | 21,767 |
General and administrative | 5,014 | 4,128 |
Investment and development | 235 | 811 |
Other investment costs | 134 | 273 |
Other expenses | 907 | |
Total expenses | 66,763 | 68,482 |
Operating income | 26,668 | 25,030 |
Interest income | 81 | 12 |
Interest expense | -8,093 | -11,244 |
Amortization of deferred financing costs | -449 | -645 |
Net gains on condominium sales activities | 1,773 | 810 |
Equity in income of unconsolidated real estate entities, net | 397 | 485 |
Other income (expense), net | -195 | -195 |
Net loss on extinguishment of indebtedness | -197 | |
Net income | 19,985 | 14,253 |
Noncontrolling interests - consolidated real estate entities | 16 | |
Net income | 19,985 | 14,269 |
Distributions to preferred unitholders | -922 | -922 |
Net income available to common shareholders | $19,063 | $13,347 |
Per common share data - Basic | ||
Net income available to common shareholders | $0.35 | $0.25 |
Weighted average common shares outstanding - basic | 54,569 | 54,310 |
Per common share data - Diluted | ||
Net income available to common shareholders | $0.35 | $0.24 |
Weighted average common shares outstanding - diluted | 54,586 | 54,426 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $19,985 | $14,253 |
Net change in derivative financial instruments | -1,548 | 20 |
Total comprehensive income | 18,437 | 14,273 |
Comprehensive income attributable to noncontrolling interests: | ||
Consolidated real estate entities | 16 | |
Operating Partnership | -39 | -33 |
Total Company comprehensive income | 18,398 | 14,256 |
Post Apartment Homes, L.P. [Member] | ||
Net income | 19,985 | 14,253 |
Net change in derivative financial instruments | -1,548 | 20 |
Total comprehensive income | 18,437 | 14,273 |
Comprehensive income attributable to noncontrolling interests: | ||
Consolidated real estate entities | 16 | |
Total Operating Partnership comprehensive income | $18,437 | $14,289 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity and Accumulated Earnings (Unaudited) (USD $) | Total | Post Apartment Homes, L.P. [Member] | Post Apartment Homes, L.P. [Member] | Post Apartment Homes, L.P. [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total Company Equity [Member] | Total Company Equity [Member] | Noncontrolling Interests - Consolidated Real Estate Entities [Member] | Noncontrolling Interests - Consolidated Real Estate Entities [Member] |
In Thousands | General Partner [Member] | Limited Partner [Member] | Post Apartment Homes, L.P. [Member] | Post Apartment Homes, L.P. [Member] | Post Apartment Homes, L.P. [Member] | Post Apartment Homes, L.P. [Member] | ||||||||||
Beginning Balance at Dec. 31, 2013 | $1,152,731 | $1,152,731 | $12,715 | $1,100,259 | $9 | $43,392 | $546 | $1,111,861 | $66,138 | ($3,419) | ($3,419) | ($22,188) | $1,152,947 | $1,152,947 | ($216) | ($216) |
Comprehensive income | 14,240 | 14,240 | 133 | 13,181 | 922 | 14,236 | 20 | 20 | 14,256 | 14,256 | -16 | -16 | ||||
Employee stock purchase, stock option and other plan issuances | 2,976 | 2,976 | 30 | 2,946 | 29 | -1,134 | 4,081 | 2,976 | 2,976 | |||||||
Adjustment for ownership interest of redeemable common units | -7 | -7 | -7 | -7 | -7 | -7 | ||||||||||
Stock-based compensation | 946 | 946 | 9 | 937 | 946 | 946 | 946 | |||||||||
Dividends to preferred shareholders | -922 | -922 | -922 | -922 | -922 | -922 | ||||||||||
Dividends to common shareholders ($0.40 and 0.36 per share for the year 2015 and 2014 respectively) | -19,562 | -19,562 | -196 | -19,366 | -19,562 | -19,562 | -19,562 | |||||||||
Distributions to noncontrolling interests - consolidated real estate entities | -39 | -39 | -39 | -39 | ||||||||||||
Adjustment to redemption value of redeemable common units | -531 | -531 | -531 | -531 | -531 | -531 | ||||||||||
Ending Balance at Mar. 31, 2014 | 1,149,832 | 1,149,832 | 12,691 | 1,097,419 | 9 | 43,392 | 546 | 1,112,829 | 58,225 | -3,399 | -3,399 | -18,107 | 1,150,103 | 1,150,103 | -271 | -271 |
Beginning Balance at Dec. 31, 2014 | 1,285,960 | 1,285,960 | 14,057 | 1,232,186 | 9 | 43,392 | 546 | 1,114,851 | 185,001 | -3,675 | -3,675 | -10,772 | 1,285,960 | 1,285,960 | ||
Comprehensive income | 18,398 | 18,398 | 191 | 18,830 | 922 | 19,943 | -1,545 | -1,545 | 18,398 | 18,398 | ||||||
Employee stock purchase, stock option and other plan issuances | 244 | 244 | 2 | 242 | 21 | -390 | 613 | 244 | 244 | |||||||
Adjustment for ownership interest of redeemable common units | -1 | -1 | -1 | -1 | -1 | -1 | ||||||||||
Stock-based compensation | 1,696 | 1,696 | 17 | 1,679 | 1,696 | 1,696 | 1,696 | |||||||||
Dividends to preferred shareholders | -922 | -922 | -922 | -922 | -922 | -922 | ||||||||||
Dividends to common shareholders ($0.40 and 0.36 per share for the year 2015 and 2014 respectively) | -21,838 | -21,838 | -219 | -21,619 | -21,838 | -21,838 | -21,838 | |||||||||
Adjustment to redemption value of redeemable common units | 216 | 216 | 216 | 216 | 216 | 216 | ||||||||||
Ending Balance at Mar. 31, 2015 | $1,283,753 | $1,283,753 | $14,048 | $1,231,533 | $9 | $43,392 | $546 | $1,116,567 | $182,010 | ($5,220) | ($5,220) | ($10,159) | $1,283,753 | $1,283,753 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity and Accumulated Earnings (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Dividends to common shareholders | $0.40 | $0.36 |
Post Apartment Homes, L.P. [Member] | ||
Dividends to common shareholders | $0.40 | $0.36 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net income | $19,985 | $14,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 21,257 | 21,767 |
Amortization of deferred financing costs | 449 | 645 |
Net gains on sales of real estate assets | -1,773 | -810 |
Other, net | 194 | 271 |
Equity in income of unconsolidated entities, net | -397 | -485 |
Distributions of earnings of unconsolidated entities | 261 | 622 |
Stock-based compensation | 1,699 | 948 |
Net loss on extinguishment of indebtedness | 197 | |
Changes in assets, decrease (increase) in: | ||
Other assets | 233 | 1,078 |
Changes in liabilities, increase (decrease) in: | ||
Accrued interest payable | 3,704 | 3,885 |
Accounts payable and accrued expenses | -10,862 | -9,718 |
Prepaid rents and other | 1,454 | -1,104 |
Net cash provided by operating activities | 36,401 | 31,352 |
Cash Flows From Investing Activities | ||
Development and construction of real estate assets | -21,927 | -16,907 |
Proceeds from sales of real estate assets | 4,827 | 2,442 |
Capitalized interest | -982 | -846 |
Property capital expenditures | -4,075 | -5,893 |
Corporate additions and improvements | -206 | -128 |
Other investing activities | -29 | |
Net cash used in investing activities | -22,363 | -21,361 |
Cash Flows From Financing Activities | ||
Payments on indebtedness | -754 | -1,025 |
Payments of financing costs and other | -4,002 | -102 |
Proceeds from employee stock purchase and stock options plans | 425 | 2,311 |
Acquisition of treasury stock and other | -1,295 | |
Distributions to noncontrolling interests - real estate entities | -39 | |
Distributions to noncontrolling interests - common unitholders | -48 | -45 |
Dividends paid to preferred shareholders | -922 | -922 |
Dividends paid to common shareholders | -21,804 | -17,883 |
Other financing activities | -69 | |
Net cash used in financing activities | -28,469 | -17,705 |
Net decrease in cash and cash equivalents | -14,431 | -7,714 |
Cash and cash equivalents, beginning of period | 140,512 | 82,110 |
Cash and cash equivalents, end of period | 126,081 | 74,396 |
Post Apartment Homes, L.P. [Member] | ||
Cash Flows From Operating Activities | ||
Net income | 19,985 | 14,253 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 21,257 | 21,767 |
Amortization of deferred financing costs | 449 | 645 |
Net gains on sales of real estate assets | -1,773 | -810 |
Other, net | 194 | 271 |
Equity in income of unconsolidated entities, net | -397 | -485 |
Distributions of earnings of unconsolidated entities | 261 | 622 |
Stock-based compensation | 1,699 | 948 |
Net loss on extinguishment of indebtedness | 197 | |
Changes in assets, decrease (increase) in: | ||
Other assets | 233 | 1,078 |
Changes in liabilities, increase (decrease) in: | ||
Accrued interest payable | 3,704 | 3,885 |
Accounts payable and accrued expenses | -10,862 | -9,718 |
Prepaid rents and other | 1,454 | -1,104 |
Net cash provided by operating activities | 36,401 | 31,352 |
Cash Flows From Investing Activities | ||
Development and construction of real estate assets | -21,927 | -16,907 |
Proceeds from sales of real estate assets | 4,827 | 2,442 |
Capitalized interest | -982 | -846 |
Property capital expenditures | -4,075 | -5,893 |
Corporate additions and improvements | -206 | -128 |
Other investing activities | -29 | |
Net cash used in investing activities | -22,363 | -21,361 |
Cash Flows From Financing Activities | ||
Payments on indebtedness | -754 | -1,025 |
Payments of financing costs and other | -4,002 | -102 |
Proceeds from employee stock purchase and stock options plans | 425 | 2,311 |
Acquisition of treasury stock and other | -1,295 | |
Distributions to noncontrolling interests - real estate entities | -39 | |
Distributions to noncontrolling interests - common unitholders | -48 | -45 |
Dividends paid to preferred shareholders | -922 | -922 |
Dividends paid to common shareholders | -21,804 | -17,883 |
Other financing activities | -69 | |
Net cash used in financing activities | -28,469 | -17,705 |
Net decrease in cash and cash equivalents | -14,431 | -7,714 |
Cash and cash equivalents, beginning of period | 140,512 | 82,110 |
Cash and cash equivalents, end of period | $126,081 | $74,396 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Organization and Significant Accounting Policies | 1 | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||
Organization | |||||||||
Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise. | |||||||||
The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Internal Revenue Code of 1986, as amended. | |||||||||
At March 31, 2015, the Company had interests in 23,350 apartment units in 59 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,819 apartment units in five communities currently under development. At March 31, 2015, approximately 29.1%, 21.9%, 13.5% and 10.9% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively. | |||||||||
At March 31, 2015, the Company had outstanding 54,594 shares of common stock and owned the same number of units of common limited partnership interests (“Common Units”) in the Operating Partnership, representing a 99.8% ownership interest in the Operating Partnership. Common Units held by persons other than the Company totaled 121 at March 31, 2015 and represented a 0.2% common noncontrolling interest in the Operating Partnership. Each Common Unit may be redeemed by the holder thereof for either one share of Company common stock or cash equal to the fair market value thereof at the time of redemption, at the option, but outside the control, of the Operating Partnership. The Operating Partnership presently anticipates that it will cause shares of common stock to be issued in connection with each such redemption rather than paying cash (as has been done in all redemptions to date). With each redemption of outstanding Common Units for Company common stock, the Company’s percentage ownership interest in the Operating Partnership will increase. In addition, whenever the Company issues shares of common stock, the Company will contribute any net proceeds therefrom to the Operating Partnership and the Operating Partnership will issue an equivalent number of Common Units to the Company. The Company’s weighted average common ownership interest in the Operating Partnership was 99.8% for three months ended March 31, 2015 and 2014. | |||||||||
Basis of presentation | |||||||||
The accompanying unaudited financial statements have been prepared by the Company’s management in accordance with generally accepted accounting principles for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||
The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries. The Company also consolidates other entities in which it has a controlling financial interest or entities where it is determined to be the primary beneficiary under ASC Topic 810, “Consolidation.” Under ASC Topic 810, variable interest entities (“VIEs”) are generally entities that lack sufficient equity to finance their | |||||||||
activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The application of ASC Topic 810 requires management to make significant estimates and judgments about the Company’s and its other partners’ rights, obligations and economic interests in such entities. For entities in which the Company has less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, the Company’s share of the net earnings or losses of these entities is included in consolidated net income. All inter-company accounts and transactions have been eliminated in consolidation. The Company’s noncontrolling interest of common unitholders (also referred to as “Redeemable Common Units”) in the operations of the Operating Partnership is calculated based on the weighted average unit ownership during the period. | |||||||||
Revenue recognition | |||||||||
Residential properties are leased under operating leases with terms of generally one year or less. Rental revenues from residential leases are recognized on the straight-line method over the approximate life of the leases, which is generally one year. The recognition of rental revenues from residential leases when earned has historically not been materially different from rental revenues recognized on a straight-line basis. | |||||||||
Under the terms of residential leases, the residents of the Company’s residential communities are obligated to reimburse the Company for certain utility usage, water and electricity (at selected properties), where the Company is the primary obligor to the public utility entity. These utility reimbursements from residents are reflected as other property revenues in the consolidated statements of operations. | |||||||||
Sales and the associated gains or losses of real estate assets and for-sale condominiums are recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment – Real Estate Sales.” In periods prior to the sale of the Company’s final condominium in the first quarter of 2014, the Company recognized condominium sales under the deposit method based on an evaluation of the factors specified in ASC 360-20. Under ASC Topic 360-20, the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. | |||||||||
For condominium communities, the operating results and associated gains and losses are reflected on the consolidated statement of operations in the caption titled “Net gains on condominium sales activities.” | |||||||||
Cost capitalization | |||||||||
For communities under development or construction, the Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to the development and construction activity. Interest is capitalized to projects under development or construction based upon the weighted average cumulative project costs for each month multiplied by the Company’s weighted average borrowing costs, expressed as a percentage. Weighted average borrowing costs include the costs of the Company’s fixed rate secured and unsecured borrowings and the variable rate unsecured borrowings under its line of credit facilities. The weighted average borrowing costs, expressed as a percentage, were 4.3% and 4.6% for the three months ended March 31, 2015 and 2014, respectively. Aggregate interest costs capitalized to projects under development or construction were $982 and $846 for the three months ended March 31, 2015 and 2014, respectively. Internal development and construction personnel and associated costs are capitalized to projects under development or construction based upon the effort associated with such projects. Aggregate internal development and construction personnel and associated costs capitalized to projects under development or construction were $1,135 and $489 for the three months ended March 31, 2015 and 2014, respectively. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the completion of rental and condominium units, interest and other construction costs are capitalized and 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 or sale. This results in a proration of costs between amounts that are capitalized and expensed as the residential units in apartment and condominium development communities become available for occupancy or sale. In addition, prior to the completion of rental units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing as well as property management and leasing personnel expenses) of such rental communities. | |||||||||
Real estate assets, depreciation and impairment | |||||||||
Real estate assets are stated at the lower of depreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and components – 40 years; other building and land improvements – 20 years; furniture, fixtures and equipment – 5-10 years). | |||||||||
The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment.” Factors considered by management in evaluating impairment of its existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value. | |||||||||
The Company periodically classifies real estate assets as held for sale. An asset is classified as held for sale after the approval of the Company's board of directors and after an active program to sell the asset has commenced. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the accompanying consolidated balance sheets. Upon a decision to no longer market an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. | |||||||||
Derivative financial instruments | |||||||||
The Company accounts for derivative financial instruments at fair value under the provisions of ASC Topic 815, “Derivatives and Hedging.” The Company measures derivative financial instruments subject to master netting agreements on a net basis. The Company uses derivative financial instruments, primarily interest rate swap arrangements to manage or hedge its exposure to interest rate changes. Under ASC Topic 815, derivative instruments qualifying as hedges of specific cash flows are recorded on the balance sheet at fair value with an offsetting increase or decrease to accumulated other comprehensive income, an equity account, until the hedged transactions are recognized in earnings. Quarterly, the Company evaluates the effectiveness of its cash flow hedges. Any ineffective portion of cash flow hedges is recognized immediately in earnings. | |||||||||
Fair value measurements | |||||||||
The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets recorded at fair value, if any, to its impairment valuation analysis of real estate assets, to its disclosure of the fair value of financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 are summarized in note 8 utilizing the following hierarchy: | |||||||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. | ||||||||
• | Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. | ||||||||
• | Level 3 – Unobservable inputs for the assets or liability. | ||||||||
Recently issued accounting pronouncements | |||||||||
In May 2014, Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” was issued. This new guidance establishes a single comprehensive revenue recognition model under U.S. GAAP and provides for enhanced disclosures. Under this new guidance, the amount of revenue recognized for certain transactions could differ from amounts recognized under existing accounting guidance and could also result in recognition in different reporting periods. Also, the provisions of ASU 2014-09 exclude revenue recognition regarding lease contracts. The new guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is prohibited. The Company expects to adopt ASU 2014-09 as of January 1, 2017 and is currently evaluating the impact that this new guidance may have on its results of operations. | |||||||||
In February 2015, Accounting Standards Update No. 2015-02 (“ASU 2015-02”), “Consolidation,” was issued. The new guidance primarily amends current consolidation accounting guidance with respect to the evaluation criteria for determining whether certain limited partnerships or similar legal entities and certain variable interest entities are subject to consolidated reporting. The new guidance is effective for reporting periods beginning after December 15, 2015. The Company expects to adopt ASU 2015-02 as of January 1, 2016 and is currently evaluating the impact this new standard may have on its financial position and results of operations. | |||||||||
Supplemental cash flow information | |||||||||
Supplemental cash flow information for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest paid, net of interest capitalized | $ | 4,389 | $ | 7,359 | |||||
Interest paid, including interest capitalized | 5,371 | 8,205 | |||||||
Income tax payments, net | 21 | 7 | |||||||
Non-cash investing and financing activities: | |||||||||
Dividends and distributions payable | 21,886 | 19,611 | |||||||
Construction and property capital expenditure cost accruals, increase (decrease) | 6,594 | (2,395 | ) | ||||||
Adjustments to equity related to redeemable common units and other, net increase (decrease) | 215 | (538 | ) | ||||||
Common stock 401k matching contribution | — | 658 | |||||||
Real_Estate_Activity
Real Estate Activity | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Real Estate [Abstract] | |||||
Real Estate Activity | 2 | REAL ESTATE ACTIVITY | |||
Dispositions | |||||
The Company classifies real estate assets as held for sale after the approval of its board of directors and after the Company had commenced an active program to sell the assets. The Company had no assets classified as held for sale at March 31, 2015. | |||||
In the three months ended March 31, 2014, the Company classified three apartment communities, containing 645 units, as held for sale, including two communities, containing 337 units, in New York, New York and an additional community, containing 308 units, in Houston, Texas. This disposition activity was part of the Company’s investment strategy of recycling investment capital to fund investment and development of apartment communities. The Company determined that these communities did not meet the criteria for discontinued operations reporting and, accordingly, their operating results were included in continuing operations through their sale dates in 2014. The communities were sold, and the Company recognized gains on sales, in the second and third quarters of 2014. The net income and net income attributable to the Company related to these three communities for the three months ended March 31, 2014 were as follows: | |||||
Three months ended | |||||
March 31, 2014 | |||||
Net income | $ | 138 | |||
Net income, net of noncontrolling interest | $ | 154 | |||
In the three months ended March 31, 2015, the Company sold its remaining condominium retail space at the condominium community in Austin, Texas and recognized a gain of $1,773. For the three months ended March 31, 2014, gains on condominium sales activities were $810, resulting from the sale of the final residential condominium unit at the condominium community in Atlanta, Georgia. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Real Estate Entities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||
Investments in Unconsolidated Real Estate Entities | 3 | INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES | |||||||
At March 31, 2015, the Company held investments in two individual limited liability companies (the “Apartment LLCs”) with institutional investors that own four apartment communities, including three communities located in Atlanta, Georgia and one community located in Washington, D.C. The Company has a 25% and 35% equity interest in these Apartment LLCs. | |||||||||
The Company accounts for its investments in the Apartment LLCs using the equity method of accounting. At March 31, 2015 and December 31, 2014, the Company’s investment in the 35% owned Apartment LLC totaled $4,117 and $4,059, respectively, excluding the credit investments discussed below. The Company’s investment in the 25% owned Apartment LLC at March 31, 2015 and December 31, 2014 reflects a credit investment of $16,621 and $16,624, respectively. These credit balances resulted from distribution of financing proceeds in excess of the Company’s historical cost upon the formation of the Apartment LLC and are reflected in consolidated liabilities on the Company’s consolidated balance sheet. The operating results of the Company include its allocable share of net income from the investments in the Apartment LLCs. The Company provides property and asset management services to the Apartment LLCs for which it earns fees. | |||||||||
A summary of financial information for the Apartment LLCs in the aggregate is as follows: | |||||||||
March 31, | December 31, | ||||||||
Apartment LLCs - Balance Sheet Data | 2015 | 2014 | |||||||
Real estate assets, net of accumulated depreciation of $50,575 and $49,153 at March 31, 2015 and December 31, 2014, respectively | $ | 207,975 | $ | 208,493 | |||||
Cash and other | 6,491 | 5,490 | |||||||
Total assets | $ | 214,466 | $ | 213,983 | |||||
Mortgage notes payable | $ | 177,723 | $ | 177,723 | |||||
Other liabilities | 4,082 | 3,445 | |||||||
Total liabilities | 181,805 | 181,168 | |||||||
Members’ equity | 32,661 | 32,815 | |||||||
Total liabilities and members’ equity | $ | 214,466 | $ | 213,983 | |||||
Company’s equity investment in Apartment LLCs (1) | $ | (12,504 | ) | $ | (12,565 | ) | |||
1) | At March 31, 2015 and December 31, 2014, the Company’s equity investment includes its credit investments of $16,621 and $16,624, respectively, discussed above. | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
Apartment LLCs - Income Statement Data | 2015 | 2014 | |||||||
Revenues | |||||||||
Rental | $ | 6,784 | $ | 6,485 | |||||
Other property revenues | 456 | 439 | |||||||
Total revenues | 7,240 | 6,924 | |||||||
Expenses | |||||||||
Property operating and maintenance | 3,107 | 2,751 | |||||||
Depreciation and amortization | 1,449 | 1,376 | |||||||
Interest | 2,238 | 2,238 | |||||||
Total expenses | 6,794 | 6,365 | |||||||
Net income | $ | 446 | $ | 559 | |||||
Company’s share of net income in Apartment LLCs | $ | 397 | $ | 485 | |||||
At March 31, 2015, mortgage notes payable included four mortgage notes. The first $51,000 mortgage note bears interest at 3.50%, requires monthly interest only payments and matures in 2019. The second and third mortgage notes total $85,724, bear interest at 5.63%, require interest only payments and mature in 2017. The fourth mortgage note totals $41,000, bears interest at 5.71%, requires interest only payments, and matures in January 2018 with a one-year automatic extension at a variable interest rate. |
Indebtedness
Indebtedness | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Indebtedness | 4 | INDEBTEDNESS | |||||||||||||
At March 31, 2015 and December 31, 2014, the Company’s indebtedness consisted of the following: | |||||||||||||||
Payment | Maturity | March 31, | December 31, | ||||||||||||
Description | Terms | Interest Rate | Date | 2015 | 2014 | ||||||||||
Senior Unsecured Notes | Int. | 3.375% - 4.75% | 2017 - 2022 (1) | $ | 400,000 | $ | 400,000 | ||||||||
Unsecured Bank Term Loan | Int. | LIBOR + 1.15% (2) | 2020 | 300,000 | 300,000 | ||||||||||
Secured Mortgage Notes | Prin. and Int. | 5.99% | 2019 | 191,705 | 192,459 | ||||||||||
Total | $ | 891,705 | $ | 892,459 | |||||||||||
1) | The outstanding unsecured notes mature in 2017 and 2022. | ||||||||||||||
2) | Represents stated rate at March 31, 2015. As discussed below, the Company has entered into interest rate swap arrangements that effectively fix the interest rate under this facility through January 2018. At March 31, 2015, the effective blended interest rate under the Amended Term Loan was 2.69%, as a result of the refinancing of the Term Loan discussed below. | ||||||||||||||
Debt maturities | |||||||||||||||
The aggregate maturities of the Company’s indebtedness are as follows: | |||||||||||||||
Remainder of 2015 | $ | 2,168 | |||||||||||||
2016 | 3,071 | ||||||||||||||
2017 | 153,296 | ||||||||||||||
2018 | 3,502 | ||||||||||||||
2019 | 179,668 | ||||||||||||||
Thereafter | 550,000 | ||||||||||||||
$ | 891,705 | ||||||||||||||
Debt issuances and retirements | |||||||||||||||
There were no issuances or retirements of indebtedness for the three months ended March 31, 2015. | |||||||||||||||
Unsecured lines of credit | |||||||||||||||
At December 31, 2014, the Company had a $300,000 syndicated unsecured revolving line of credit (the “Syndicated Line”). The Syndicated Line had a stated interest rate of LIBOR plus 1.225%, matured in 2016 and required the payment of annual facility fees of 0.225% of the aggregate loan commitments. In January 2015, the Company amended the $300,000 unsecured line of credit (the “Amended Syndicated Line”). The Amended Syndicated Line has a current stated interest rate of LIBOR plus 1.05% and is provided by a syndicate of nine financial institutions. The Amended Syndicated Line currently requires the payment of annual facility fees of 0.20% of the aggregate loan commitments. The Amended Syndicated Line matures in 2019 and may be extended for an additional year at the Company’s option, subject to the satisfaction of certain conditions. The Amended Syndicated Line provides for the interest rate and facility fee rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The component of the interest rate and the facility fee rate that are based on the Company’s credit ratings range from 0.875% to 1.55% and from 0.125% to 0.30%, respectively. The Amended Syndicated Line also includes a competitive bid option for borrowings up to 50% of the loan commitments, which may result in interest rates for such borrowings below the stated interest rates for the Amended Syndicated Line, depending on market conditions. The credit agreement for the Amended Syndicated Line contains customary restrictions, representations, covenants and events of default, including minimum fixed charge coverage, minimum unsecured interest coverage, and maximum leverage ratios. The Amended Syndicated Line also restricts the amount of capital the Company can invest in specific categories of assets, such as improved land, properties under construction, non-multifamily properties, debt or equity securities, notes receivable and unconsolidated affiliates. At March 31, 2015, letters of credit to third parties totaling $122 had been issued for the account of the Company under this facility. | |||||||||||||||
In 2014, the Company had a $30,000 unsecured line of credit that carried an interest rate of LIBOR plus 1.225% and matured in 2016. In January 2015, the Company amended the $30,000 unsecured line of credit (the “Amended Cash Management Line”). The Amended Cash Management Line matures in 2019, includes a one-year extension option, and carries pricing and terms, including financial covenants, substantially consistent with the Amended Syndicated Line discussed above. | |||||||||||||||
In connection with the refinancing of the Amended Syndicated Line, the Amended Cash Management Line and the Term Loan (discussed below) in January 2015, the Company incurred fees and expenses of $4,002. In connection with the refinancing of the Syndicated Line and Term Loan, discussed below, facilities in January 2015, the Company also recognized an extinguishment loss of $197 related to the write-off of a portion of unamortized deferred loan costs. | |||||||||||||||
Unsecured term loan | |||||||||||||||
At December 31, 2014, the Company had outstanding a $300,000 unsecured bank term loan facility provided by a syndicate of eight financial institutions (the “Term Loan”). The Term Loan carried a stated interest rate of LIBOR plus 1.70% and matured in 2018. In January 2015, the Company amended the $300,000 unsecured bank term loan (the “Amended Term Loan”). The Amended Term Loan has a current stated interest rate of LIBOR plus 1.15% and is provided by a syndicate of eight financial institutions. The Amended Term Loan matures in January 2020. The Amended Term Loan provides for the stated interest rate to be adjusted up or down based on changes in the credit ratings on the Company’s senior unsecured debt. The component of the interest rate based on the Company’s credit ratings ranges from 0.90% to 1.85%. The Amended Term Loan carries other terms, including financial covenants, substantially consistent with the Amended Syndicated Line discussed above. As discussed in note 8, the Company entered into interest rate swap arrangements to serve as cash flow hedges of amounts outstanding under the Term Loan. The interest rate swap arrangements effectively fix the LIBOR component of the interest rate paid under the Term Loan at a blended rate of approximately 1.54%. As a result, the effective blended interest rate on the Amended Term Loan is 2.69% (subject to adjustment based on subsequent changes in the Company’s credit ratings) through January 2018, the termination date of the interest rate swaps. | |||||||||||||||
Debt compliance and other | |||||||||||||||
The Company’s Amended Syndicated Line, Amended Cash Management Line, Amended Term Loan and senior unsecured notes contain customary restrictions, representations, covenants and events of default and require the Company to meet certain financial covenants. Debt service and fixed charge coverage covenants require the Company to maintain coverages of a minimum of 1.5 to 1.0, as defined in applicable debt arrangements. Additionally, the Company’s ratio of unencumbered adjusted property-level net operating income to unsecured interest expense may not be less than 2.0 to 1.0, as defined in the applicable debt arrangements. Leverage covenants generally require the Company to maintain calculated covenants above/below minimum/maximum thresholds. The primary leverage ratios under these arrangements include total debt to total asset value (maximum of 60%), total secured debt to total asset value (maximum of 40%) and unencumbered assets to unsecured debt (minimum of 1.5 to 1.0), as defined in the applicable debt arrangements. The Company believes it met these financial covenants at March 31, 2015. |
Equity_and_Noncontrolling_Inte
Equity and Noncontrolling Interests | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Equity and Noncontrolling Interests | 5 | EQUITY AND NONCONTROLLING INTERESTS | |||||||
Common stock | |||||||||
The Company has an at-the-market (“ATM”) common equity sales program for the sale of up to 4,000 shares of common stock. At March 31, 2015, the Company had not used this program and had 4,000 shares remaining for issuance. | |||||||||
In December 2014, the Company’s board of directors adopted a stock and unsecured note repurchase program under which the Company and the Operating Partnership may repurchase up to $200,000 of common and preferred stock and unsecured notes through December 2017. There were no shares of common stock repurchased in the three months ended March 31, 2015 or in 2014 under this program or a previous stock repurchase program. | |||||||||
Noncontrolling interests | |||||||||
In accordance with ASC Topic 810, the Company and the Operating Partnership determined that the noncontrolling interests related to the common units of the Operating Partnership, held by persons other than the Company, met the criterion to be classified and accounted for as “temporary” equity (reflected outside of total equity as “Redeemable Common Units”). At March 31, 2015, and December 31, 2014, the aggregate redemption value of the noncontrolling interests in the Operating Partnership was $6,865 and $7,086, respectively, representing their fair value at the respective dates. In prior periods, the Company had noncontrolling interests in consolidated real estate entities that met the criterion to be classified and accounted for as a component of permanent equity. | |||||||||
A roll-forward of activity relating to the Company’s Redeemable Common Units for the three months ended March 31, 2015 and 2014 was as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Redeemable common units, beginning of period | $ | 7,086 | $ | 6,121 | |||||
Comprehensive income | 39 | 33 | |||||||
Adjustment for ownership interest of redeemable common units | 1 | 7 | |||||||
Stock-based compensation | 3 | 2 | |||||||
Distributions to common unitholders | (48 | ) | (49 | ) | |||||
Adjustment to redemption value of redeemable common units | (216 | ) | 531 | ||||||
Redeemable common units, end of period | $ | 6,865 | $ | 6,645 | |||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share | 6 | COMPANY EARNINGS PER SHARE | |||||||
For the three months ended March 31, 2015 and 2014, a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share was as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income available to common shareholders (numerator): | |||||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
Noncontrolling interests - consolidated real estate entities | — | 16 | |||||||
Noncontrolling interests - Operating Partnership | (42 | ) | (33 | ) | |||||
Preferred stock dividends | (922 | ) | (922 | ) | |||||
Unvested restricted stock (allocation of earnings) | (40 | ) | (27 | ) | |||||
Net income available to common shareholders | $ | 18,981 | $ | 13,287 | |||||
Common shares (denominator): | |||||||||
Weighted average shares outstanding - basic | 54,448 | 54,175 | |||||||
Dilutive shares from stock options | 17 | 116 | |||||||
Weighted average shares outstanding - diluted | 54,465 | 54,291 | |||||||
Per-share amount: | |||||||||
Basic | $ | 0.35 | $ | 0.25 | |||||
Diluted | $ | 0.35 | $ | 0.24 | |||||
Stock options to purchase 28 and 216 shares of common stock for the three months ended March 31, 2015 and 2014, respectively, were excluded from the computation of diluted income from continuing operations per common share as these stock options were antidilutive. | |||||||||
Post Apartment Homes, L.P. [Member] | |||||||||
Earnings Per Share | 7 | OPERATING PARTNERSHIP EARNINGS PER UNIT | |||||||
For the three months ended March 31, 2015 and 2014, a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per unit was as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income available to common unitholders (numerator): | |||||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
Noncontrolling interests - consolidated real estate entities | — | 16 | |||||||
Preferred unit distributions | (922 | ) | (922 | ) | |||||
Unvested restricted stock (allocation of earnings) | (40 | ) | (27 | ) | |||||
Net income available to common unitholders | $ | 19,023 | $ | 13,320 | |||||
Common units (denominator): | |||||||||
Weighted average units outstanding - basic | 54,569 | 54,310 | |||||||
Dilutive units from stock options | 17 | 116 | |||||||
Weighted average units outstanding - diluted | 54,586 | 54,426 | |||||||
Per-unit amount: | |||||||||
Basic | $ | 0.35 | $ | 0.25 | |||||
Diluted | $ | 0.35 | $ | 0.24 | |||||
Stock options to purchase 28 and 216 shares of common stock for the three months ended March 31, 2015 and 2014, respectively, were excluded from the computation of diluted income from continuing operations per common unit as these stock options were antidilutive. |
Fair_Value_Measures_and_Other_
Fair Value Measures and Other Fiancial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value Measures and Other Fiancial Instruments | 8 | FAIR VALUE MEASURES AND OTHER FINANCIAL INSTRUMENTS | |||||||
From time to time, the Company records certain assets and liabilities at fair value. Real estate assets may be stated at fair value if they become impaired in a given period and may be stated at fair value if they are held for sale and the fair value of such assets is below historical cost. Additionally, the Company records derivative financial instruments at fair value. The Company also uses fair value metrics to evaluate the carrying values of its real estate assets and for the disclosure of certain financial instruments. Fair value measurements were determined by management using available market information and appropriate valuation methodologies available to management at March 31, 2015. Considerable judgment is necessary to interpret market data and estimate fair value. Accordingly, there can be no assurance that the estimates discussed herein, using Level 2 and 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate assets or other financial instruments. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. | |||||||||
Real estate assets | |||||||||
The Company periodically reviews its real estate assets, including operating assets, construction in progress and land held for future investment, for impairment purposes using Level 3 inputs, primarily comparable sales and market data, independent valuations and discounted cash flow models. For the three months ended March 31, 2015 and 2014, the Company did not recognize any impairment charges related to its real estate assets. | |||||||||
Derivatives and other financial instruments | |||||||||
The Company manages its exposure to interest rate changes through the use of derivative financial instruments, primarily interest rate swap arrangements. At March 31, 2015, the Company had outstanding three interest rate swap arrangements with substantially similar terms and conditions. These arrangements have an aggregate notional amount of $230,000 and require the Company to pay a blended fixed rate of approximately 1.55% (with the counterparties paying the Company the floating one-month LIBOR rate). Additionally, the Company had outstanding a fourth interest rate swap arrangement with a notional amount of $70,000 and it requires the Company to pay a fixed rate of approximately 1.50% (with the counterparty paying the Company the floating one-month LIBOR rate) (together, the “Interest Rate Swaps”). The Interest Rate Swaps serve as cash flow hedges of amounts outstanding under the Company’s variable rate Amended Term Loan (see note 4) and provide for an effective blended fixed rate for the corresponding amount of Amended Term Loan borrowings of approximately 2.69% (subject to an adjustment based on subsequent changes in the Company’s credit ratings) at March 31, 2015. The Interest Rate Swaps terminate in January 2018. | |||||||||
The Interest Rate Swaps are measured and accounted for at fair value on a recurring basis. The Interest Rate Swaps outstanding at March 31, 2015 and December 31, 2014 were valued as net liabilities of $5,233 and $3,685, respectively, primarily using level 2 inputs, as substantially all of the fair value was determined using widely accepted discounted cash flow valuation techniques along with observable market-based inputs for similar types of arrangements. The Company reflects both the respective counterparty’s nonperformance risks and its own nonperformance risks in its fair value measurements using unobservable inputs. However, the impact of such risks was not considered material to the overall fair value measurements of the derivatives. These liabilities are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. Under ASC Topic 815, a corresponding amount is included in accumulated other comprehensive income (loss), an equity account, until the hedged transactions are recognized in earnings. The following table summarizes the effect of these Interest Rate Swaps (designated as cash flow hedges) on the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2015 and 2014: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
Interest Rate Swap / Cash Flow Hedging Instruments | 2015 | 2014 | |||||||
Gain (loss) recognized in other comprehensive income | $ | (2,571 | ) | $ | (1,010 | ) | |||
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ | (1,023 | ) | $ | (1,029 | ) | |||
The amounts reported in accumulated other comprehensive income as of March 31, 2015 will be reclassified to interest expense as interest payments are made under the hedged indebtedness. Over the next year, the Company estimates that $3,615 will be reclassified from accumulated comprehensive income to interest expense. | |||||||||
As part of the Company’s on-going procedures, the Company monitors the credit worthiness of its financial institution counterparties and its exposure to any single entity, which it believes minimizes credit risk concentration. The Company believes the likelihood of realized losses from counterparty non-performance is remote. The Interest Rate Swaps are cross defaulted with the Company’s Amended Term Loan and Amended Syndicated Line (see note 4) and contain certain provisions consistent with these types of arrangements. If the Company was required to terminate the Interest Rate Swaps and settle the obligations thereunder as of March 31, 2015, the termination payment by the Company would have been approximately $5,254. | |||||||||
Other financial instruments | |||||||||
Cash equivalents, rents and accounts receivables, accounts payable, accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values because of the short-term nature of these instruments. At March 31, 2015, the fair value of fixed rate debt was approximately $621,773 (carrying value of $591,705) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $300,000 (carrying value of $300,000). At December 31, 2014, the fair value of fixed rate debt was approximately $620,641 (carrying value of $592,459) and the fair value of variable rate debt, including the Company’s lines of credit, was approximately $304,983 (carrying value of $300,000). Long-term indebtedness was valued using Level 2 inputs, primarily market prices of comparable debt instruments. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | 9 | SEGMENT INFORMATION | |||||||
Segment description | |||||||||
In accordance with ASC Topic 280, “Segment Reporting,” the Company presents segment information based on the way that management organizes the segments within the enterprise for making operating decisions and assessing performance. The segment information is prepared on the same basis as the internally reported information used by the Company’s chief operating decision makers to manage the business. | |||||||||
The Company’s chief operating decision makers focus on the Company’s primary sources of income from apartment community rental operations. Apartment community rental operations are generally broken down into segments based on the various stages in the apartment community ownership lifecycle. These segments are described below. All commercial properties and other ancillary service and support operations are combined in the line item “other property segments” in the accompanying segment information. The segment information presented below reflects the segment categories based on the lifecycle status of each community as of January 1, 2014. | |||||||||
• | Fully stabilized communities – those apartment communities which have been stabilized (the earlier of the point at which a property reaches 95% occupancy or one year after completion of construction) for both 2015 and 2014. | ||||||||
• | Newly stabilized communities – those apartment communities which reached stabilized occupancy in 2014. | ||||||||
• | Lease-up communities – those apartment communities that are under development and lease-up but were not stabilized by the beginning of 2015, including communities that stabilized in 2015. | ||||||||
• | Acquired communities – those communities acquired in 2015 or 2014. | ||||||||
• | Held for sale and sold communities – those apartment and mixed-use communities classified as held for sale in 2015 and those communities sold in 2014 (see note 2). | ||||||||
Segment performance measure | |||||||||
Management uses contribution to consolidated property net operating income (“NOI”) as the performance measure for its operating segments. The Company uses NOI, including NOI of stabilized communities, as an operating measure. NOI is defined as rental and other property revenue from real estate operations less total property and maintenance expenses from real estate operations (excluding 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 operating segment 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 the Company’s consolidated statement of operations entitled “net income (loss)” is the most directly comparable GAAP measure to NOI. | |||||||||
Segment information | |||||||||
The following table reflects each segment’s contribution to consolidated revenues and NOI together with a reconciliation of segment contribution to property NOI to consolidated net income for the three months ended March 31, 2015 and 2014. Additionally, substantially all of the Company’s assets relate to the Company’s property rental operations. Asset cost, depreciation and amortization by segment are not presented because such information at the segment level is not reported internally. | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | |||||||||
Fully stabilized communities | $ | 82,698 | $ | 80,789 | |||||
Newly stabilized communities | 4,159 | 1,859 | |||||||
Lease-up communities | 1,022 | 19 | |||||||
Held for sale and sold communities | — | 5,871 | |||||||
Other property segments | 5,239 | 4,755 | |||||||
Other | 313 | 219 | |||||||
Consolidated revenues | $ | 93,431 | $ | 93,512 | |||||
Contribution to Property Net Operating Income | |||||||||
Fully stabilized communities | $ | 50,331 | $ | 49,745 | |||||
Newly stabilized communities | 2,606 | 779 | |||||||
Lease-up communities | 526 | (100 | ) | ||||||
Held for sale and sold communities | — | 2,773 | |||||||
Other property segments, including corporate management expenses | (468 | ) | (500 | ) | |||||
Consolidated property net operating income | 52,995 | 52,697 | |||||||
Interest income | 81 | 12 | |||||||
Other revenues | 313 | 219 | |||||||
Depreciation | (21,257 | ) | (21,767 | ) | |||||
Interest expense | (8,093 | ) | (11,244 | ) | |||||
Amortization of deferred financing costs | (449 | ) | (645 | ) | |||||
General and administrative | (5,014 | ) | (4,128 | ) | |||||
Investment and development | (235 | ) | (811 | ) | |||||
Other investment costs | (134 | ) | (273 | ) | |||||
Severance, impairment and other | — | (907 | ) | ||||||
Gains on condominium sales activities, net | 1,773 | 810 | |||||||
Equity in income of unconsolidated real estate entities, net | 397 | 485 | |||||||
Other income (expense), net | (195 | ) | (195 | ) | |||||
Net loss on extinguishment of indebtedness | (197 | ) | — | ||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||
Stock-Based Compensation Plans | 10 | STOCK-BASED COMPENSATION PLANS | |||||||||||||||||||
As the primary operating subsidiary of the Company, the Operating Partnership participates in and bears the compensation expenses associated with the Company’s stock-based compensation plans. The information discussed below relating to the Company’s stock-based compensation plans is also applicable for the Operating Partnership. | |||||||||||||||||||||
Incentive stock plans | |||||||||||||||||||||
Incentive stock awards are granted under the Company’s 2003 Incentive Stock Plan, as amended and restated in October 2008 (the “2003 Stock Plan”). Under the 2003 Stock Plan, an aggregate of 3,469 shares of common stock were reserved for issuance. Of this amount, stock grants count against the total shares available under the 2003 Stock Plan as 2.7 shares for every one share issued, while options (and stock appreciation rights (“SAR”) settled in shares) count against the total shares available as one share for every one share issued on the exercise of an option (or SAR). The exercise price of each option granted under the 2003 Stock Plan may not be less than the market price of the Company’s common stock on the date of the option grant and all options may have a maximum life of ten years. Participants receiving restricted stock grants are generally eligible to vote such shares and receive dividends on such shares. Substantially all stock option and restricted stock grants are subject to annual vesting provisions (generally three to five years) as determined by the compensation committee overseeing the 2003 Stock Plan. | |||||||||||||||||||||
Compensation costs for stock options have been estimated on the grant date using the Black-Scholes option-pricing method. The weighted average assumptions used in the Black-Scholes option-pricing model are as follows: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Dividend yield | 2.7 | % | 2.8 | % | |||||||||||||||||
Expected volatility | 42.8 | % | 43 | % | |||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.8 | % | |||||||||||||||||
Expected option term (years) | 6.0 years | 6.0 years | |||||||||||||||||||
The Company’s assumptions were derived from the methodologies discussed herein. The expected dividend yield reflects the Company’s current historical yield, which was expected to approximate the future yield at the date of grant. Expected volatility was based on the historical volatility of the Company’s common stock. The risk-free interest rate for the expected life of the options was based on the implied yields on the U.S. Treasury yield curve at the date of grant. The weighted average expected option term was based on the Company’s historical data for prior period stock option exercise and forfeiture activity. | |||||||||||||||||||||
Restricted stock | |||||||||||||||||||||
Compensation cost for restricted stock is amortized ratably into compensation expense over the applicable vesting periods. Total compensation expense related to restricted stock was $1,467 and $770 for the three months ended March 31, 2015 and 2014, respectively. At March 31, 2015, there was $5,628 of unrecognized compensation cost related to restricted stock. This cost is expected to be recognized over a weighted average period of 2.2 years. | |||||||||||||||||||||
A summary of the activity related to the Company’s restricted stock for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Weighted-Avg. | Weighted-Avg. | ||||||||||||||||||||
Grant-Date | Grant-Date | ||||||||||||||||||||
Shares | Fair Value | Shares | Fair Value | ||||||||||||||||||
Unvested shares, beginning of period | 76 | $ | 49 | 75 | $ | 48 | |||||||||||||||
Granted (1) | 68 | 60 | 55 | 47 | |||||||||||||||||
Vested | (3 | ) | 52 | — | — | ||||||||||||||||
Unvested shares, end of period | 141 | 54 | 130 | 47 | |||||||||||||||||
1) | The total value of the restricted share grants for the three months ended March 31, 2015 and 2014 was $4,123 and $2,566, respectively. | ||||||||||||||||||||
Stock options | |||||||||||||||||||||
Compensation cost for stock options is amortized ratably into compensation expense over the applicable vesting periods. The Company recorded compensation expense related to stock options of $178 and $139 for the three months ended March 31, 2015 and 2014, respectively, recognized under the fair value method. At March 31, 2015, there was $837 of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted average period of 2.3 years. | |||||||||||||||||||||
A summary of stock option activity under all plans for the three months ended March 31, 2015 and 2014 is presented below: | |||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Options outstanding, beginning of period | 148 | $ | 46 | 539 | $ | 36 | |||||||||||||||
Granted | 28 | 60 | 35 | 47 | |||||||||||||||||
Exercised | (38 | ) | 48 | (73 | ) | 29 | |||||||||||||||
Options outstanding, end of period (1) | 138 | 49 | 501 | 38 | |||||||||||||||||
Options exercisable, end of period (1) | 77 | 45 | 439 | 37 | |||||||||||||||||
Options vested and expected to vest, end of period (1) | 135 | 49 | 498 | 38 | |||||||||||||||||
Weighted average fair value of options granted during the period | $ | 19.49 | $ | 15.21 | |||||||||||||||||
1) | At March 31, 2015, the aggregate intrinsic value of stock options outstanding, exercisable and vested/expected to vest was $1,215, $922 and $1,200, respectively. At that same date, the weighted average remaining contractual lives of stock options outstanding, exercisable and vested/expected to vest was 7.3 years, 5.8 years and 7.3 years, respectively. | ||||||||||||||||||||
Upon the exercise of stock options, the Company issues shares of common stock from treasury shares or, to the extent treasury shares are not available, from authorized common shares. The total intrinsic value of stock options exercised for the three months ended March 31, 2015 and 2014 was $548 and $1,292, respectively. | |||||||||||||||||||||
At March 31, 2015, the Company segregated its outstanding options into two ranges, based on exercise prices, as follows: | |||||||||||||||||||||
Option Ranges | Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted Avg. | Weighted Avg. | Weighted Avg. | |||||||||||||||||||
Shares | Exercise Price | Life (Years) | Shares | Exercise Price | |||||||||||||||||
$37.04 - $46.93 | 80 | $ | 44 | 6.6 | 56 | $ | 43 | ||||||||||||||
$48.00 - $60.40 | 58 | 55 | 8.3 | 21 | 50 | ||||||||||||||||
Total | 138 | 49 | 7.3 | 77 | 45 | ||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||
The Company maintains an Employee Stock Purchase Plan (the “ESPP”) approved by Company shareholders in 2014. The maximum number of shares issuable under the ESPP is 250. The purchase price of shares of common stock under the ESPP is equal to 85% of the lesser of the closing price per share of common stock on the first or last day of the trading period, as defined. The Company records the aggregate cost of the ESPP (generally the 15% discount on the share purchases) as a period expense. Total compensation expense relating to the ESPP was $54 and $39 for the three months ended March 31, 2015 and 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||
Income Taxes | 11 | INCOME TAXES |
The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Company must distribute annually at least 90% of its adjusted taxable income, as defined in the Code, to its shareholders and satisfy certain other organizational and operating requirements. It is management’s current intention to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to federal income tax at the corporate level on the taxable income it distributes to its shareholders. Should the Company fail to qualify as a REIT in any tax year, it may be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. The Company may be subject to certain state and local taxes on its income and property, and to federal income taxes and excise taxes on its undistributed taxable income. | ||
The Operating Partnership files tax returns as a limited partnership under the Code. As a partnership, the income and losses of the Operating Partnership are allocated to its partners, including the Company, for inclusion in their respective income tax returns. Accordingly, no provision or benefit for income taxes has been included in the accompanying Operating Partnership financial statements. The Operating Partnership intends to make sufficient cash distributions to the Company to enable it to meet its annual REIT distribution requirements. | ||
In the preparation of income tax returns in federal and state jurisdictions, the Company, the Operating Partnership and its taxable REIT subsidiaries assert certain tax positions based on their understanding and interpretation of the income tax law. The taxing authorities may challenge such positions and the resolution of such matters could result in the payment and recognition of additional income tax expense. Management believes it has used reasonable judgments and conclusions in the preparation of its income tax returns. The Company and its subsidiaries, including the Company’s taxable REIT subsidiaries (“TRSs”), income tax returns are subject to examination by federal and state tax jurisdictions for years 2011 through 2013. Net income tax loss carryforwards and other tax attributes generated in years prior to 2011 are also subject to challenge in any examination of the 2011 to 2013 tax years. | ||
The Company utilizes TRSs principally to perform such non-REIT activities as asset and property management and other services. These TRSs are subject to federal and state income taxes. No income tax expense (benefit) was recognized for the three months ended March 31, 2015 and 2014. The income tax attributes associated with the TRSs are not material to the Company’s consolidated financial position or results of operations. |
Other_Expenses
Other Expenses | 3 Months Ended | |
Mar. 31, 2015 | ||
Other Income and Expenses [Abstract] | ||
Other Expenses | 12 | OTHER EXPENSES |
Other expenses for the three months ended March 31, 2014 included expenses of approximately $157 related to the upgrade of the Company’s operating and financial software systems and casualty losses of $750 primarily related to extreme winter weather conditions in many of the Company’s markets, and due to fire damage at one of the Company’s Atlanta, Georgia communities. |
Legal_Proceedings_Commitments_
Legal Proceedings, Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Legal Proceedings, Commitments and Contingencies | 13 | LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES |
In September 2010, the United States Department of Justice (the “DOJ”) filed a lawsuit against the Company in the United States District Court for the Northern District of Georgia. The suit alleges various violations of the Fair Housing Act (“FHA”) and the Americans with Disabilities Act (“ADA”) at properties designed, constructed or operated by the Company in the District of Columbia, Virginia, Florida, Georgia, New York, North Carolina and Texas. The plaintiff seeks statutory damages and a civil penalty in unspecified amounts, as well as injunctive relief that includes retrofitting apartments and public use areas to comply with the FHA and the ADA and prohibiting construction or sale of noncompliant units or complexes. The Company filed a motion to transfer the case to the United States District Court for the District of Columbia, where a previous civil case involving alleged violations of the FHA and ADA by the Company was filed and ultimately dismissed. On October 29, 2010, the United States District Court for the Northern District of Georgia issued an opinion finding that the complaint shows that the DOJ’s claims are essentially the same as the previous civil case, and, therefore, granted the Company’s motion and transferred the DOJ’s case to the United States District Court for the District of Columbia. Discovery has closed, and the Court has denied motions filed by the parties relating to additional discovery and expert witnesses. Each party filed Motions for Summary Judgment, which were briefed in April 2014. In March 2015, the Court denied both Motions for Summary Judgment and requested supplemental briefing by June 2015. Until such time as the court issues rulings on the application of the law to the facts of this case, it is not possible to predict or determine the outcome of the legal proceeding, nor is it possible to estimate the amount of loss, if any, that would be associated with an adverse decision. | ||
The Company is involved in various other legal proceedings incidental to their business from time to time, some of which are expected to be covered by liability or other insurance. Management of the Company believes that any resolution of pending proceedings or liability to the Company which may arise as a result of these various other legal proceedings will not have a material effect on the Company’s results of operations, cash flows or financial position. |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Accounting Policies [Abstract] | ||||
Organization | Organization | |||
Post Properties, Inc. (the “Company”) and its subsidiaries develop, own and manage upscale multi-family apartment communities in selected markets in the United States. The Company 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”), a Georgia limited partnership. The Operating Partnership, through its operating divisions and subsidiaries conducts substantially all of the on-going operations of the Company, a publicly traded corporation which operates as a self-administered and self-managed real estate investment trust (“REIT”). As used herein, the term “Company” includes Post Properties, Inc. and its subsidiaries, including Post Apartment Homes, L.P., unless the context indicates otherwise. | ||||
The Company has elected to qualify and operate as a self-administrated and self-managed REIT for federal income tax purposes. A REIT is a legal entity which holds real estate interests and is generally not subject to federal income tax on the income it distributes to its shareholders. The Operating Partnership is governed under the provisions of a limited partnership agreement, as amended. Under the provisions of the limited partnership agreement, as amended, Operating Partnership net profits, net losses and cash flow (after allocations to preferred ownership interests) are allocated to the partners in proportion to their common ownership interests. Cash distributions from the Operating Partnership shall be, at a minimum, sufficient to enable the Company to satisfy its annual dividend requirements to maintain its REIT status under the Internal Revenue Code of 1986, as amended. | ||||
At March 31, 2015, the Company had interests in 23,350 apartment units in 59 communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,819 apartment units in five communities currently under development. At March 31, 2015, approximately 29.1%, 21.9%, 13.5% and 10.9% (on a unit basis) of the Company’s operating communities were located in the Atlanta, Georgia, Dallas, Texas, the greater Washington, D.C. and Tampa, Florida metropolitan areas, respectively. | ||||
At March 31, 2015, the Company had outstanding 54,594 shares of common stock and owned the same number of units of common limited partnership interests (“Common Units”) in the Operating Partnership, representing a 99.8% ownership interest in the Operating Partnership. Common Units held by persons other than the Company totaled 121 at March 31, 2015 and represented a 0.2% common noncontrolling interest in the Operating Partnership. Each Common Unit may be redeemed by the holder thereof for either one share of Company common stock or cash equal to the fair market value thereof at the time of redemption, at the option, but outside the control, of the Operating Partnership. The Operating Partnership presently anticipates that it will cause shares of common stock to be issued in connection with each such redemption rather than paying cash (as has been done in all redemptions to date). With each redemption of outstanding Common Units for Company common stock, the Company’s percentage ownership interest in the Operating Partnership will increase. In addition, whenever the Company issues shares of common stock, the Company will contribute any net proceeds therefrom to the Operating Partnership and the Operating Partnership will issue an equivalent number of Common Units to the Company. The Company’s weighted average common ownership interest in the Operating Partnership was 99.8% for three months ended March 31, 2015 and 2014. | ||||
Basis of presentation | Basis of presentation | |||
The accompanying unaudited financial statements have been prepared by the Company’s management in accordance with generally accepted accounting principles for interim financial information and applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normally recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2014. | ||||
The accompanying consolidated financial statements include the consolidated accounts of the Company, the Operating Partnership and their wholly owned subsidiaries. The Company also consolidates other entities in which it has a controlling financial interest or entities where it is determined to be the primary beneficiary under ASC Topic 810, “Consolidation.” Under ASC Topic 810, variable interest entities (“VIEs”) are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. The primary beneficiary is required to consolidate a VIE for financial reporting purposes. The application of ASC Topic 810 requires management to make significant estimates and judgments about the Company’s and its other partners’ rights, obligations and economic interests in such entities. For entities in which the Company has less than a controlling financial interest or entities where it is not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, the Company’s share of the net earnings or losses of these entities is included in consolidated net income. All inter-company accounts and transactions have been eliminated in consolidation. The Company’s noncontrolling interest of common unitholders (also referred to as “Redeemable Common Units”) in the operations of the Operating Partnership is calculated based on the weighted average unit ownership during the period. | ||||
Revenue recognition | Revenue recognition | |||
Residential properties are leased under operating leases with terms of generally one year or less. Rental revenues from residential leases are recognized on the straight-line method over the approximate life of the leases, which is generally one year. The recognition of rental revenues from residential leases when earned has historically not been materially different from rental revenues recognized on a straight-line basis. | ||||
Under the terms of residential leases, the residents of the Company’s residential communities are obligated to reimburse the Company for certain utility usage, water and electricity (at selected properties), where the Company is the primary obligor to the public utility entity. These utility reimbursements from residents are reflected as other property revenues in the consolidated statements of operations. | ||||
Sales and the associated gains or losses of real estate assets and for-sale condominiums are recognized in accordance with the provisions of ASC Topic 360-20, “Property, Plant and Equipment – Real Estate Sales.” In periods prior to the sale of the Company’s final condominium in the first quarter of 2014, the Company recognized condominium sales under the deposit method based on an evaluation of the factors specified in ASC 360-20. Under ASC Topic 360-20, the Company used the relative sales value method to allocate costs and recognize profits from condominium sales. Under the relative sales value method, estimates of aggregate project revenues and aggregate project costs were used to determine the allocation of project cost of sales and the resulting profit in each accounting period. | ||||
For condominium communities, the operating results and associated gains and losses are reflected on the consolidated statement of operations in the caption titled “Net gains on condominium sales activities.” | ||||
Cost capitalization | Cost capitalization | |||
For communities under development or construction, the Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to the development and construction activity. Interest is capitalized to projects under development or construction based upon the weighted average cumulative project costs for each month multiplied by the Company’s weighted average borrowing costs, expressed as a percentage. Weighted average borrowing costs include the costs of the Company’s fixed rate secured and unsecured borrowings and the variable rate unsecured borrowings under its line of credit facilities. The weighted average borrowing costs, expressed as a percentage, were 4.3% and 4.6% for the three months ended March 31, 2015 and 2014, respectively. Aggregate interest costs capitalized to projects under development or construction were $982 and $846 for the three months ended March 31, 2015 and 2014, respectively. Internal development and construction personnel and associated costs are capitalized to projects under development or construction based upon the effort associated with such projects. Aggregate internal development and construction personnel and associated costs capitalized to projects under development or construction were $1,135 and $489 for the three months ended March 31, 2015 and 2014, respectively. The Company treats each unit in an apartment community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the completion of rental and condominium units, interest and other construction costs are capitalized and 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 or sale. This results in a proration of costs between amounts that are capitalized and expensed as the residential units in apartment and condominium development communities become available for occupancy or sale. In addition, prior to the completion of rental units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing as well as property management and leasing personnel expenses) of such rental communities. | ||||
Real estate assets, depreciation and impairment | Real estate assets, depreciation and impairment | |||
Real estate assets are stated at the lower of depreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and components – 40 years; other building and land improvements – 20 years; furniture, fixtures and equipment – 5-10 years). | ||||
The Company continually evaluates the recoverability of the carrying value of its real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment.” Factors considered by management in evaluating impairment of its existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value. | ||||
The Company periodically classifies real estate assets as held for sale. An asset is classified as held for sale after the approval of the Company's board of directors and after an active program to sell the asset has commenced. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the accompanying consolidated balance sheets. Upon a decision to no longer market an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. | ||||
Derivative financial instruments | Derivative financial instruments | |||
The Company accounts for derivative financial instruments at fair value under the provisions of ASC Topic 815, “Derivatives and Hedging.” The Company measures derivative financial instruments subject to master netting agreements on a net basis. The Company uses derivative financial instruments, primarily interest rate swap arrangements to manage or hedge its exposure to interest rate changes. Under ASC Topic 815, derivative instruments qualifying as hedges of specific cash flows are recorded on the balance sheet at fair value with an offsetting increase or decrease to accumulated other comprehensive income, an equity account, until the hedged transactions are recognized in earnings. Quarterly, the Company evaluates the effectiveness of its cash flow hedges. Any ineffective portion of cash flow hedges is recognized immediately in earnings. | ||||
Fair value measurements | Fair value measurements | |||
The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets recorded at fair value, if any, to its impairment valuation analysis of real estate assets, to its disclosure of the fair value of financial instruments, principally indebtedness and to its derivative financial instruments. Fair value disclosures required under ASC Topic 820 are summarized in note 8 utilizing the following hierarchy: | ||||
• | Level 1 – Quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. | |||
• | Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. | |||
• | Level 3 – Unobservable inputs for the assets or liability. | |||
Recently issued accounting pronouncements | Recently issued accounting pronouncements | |||
In May 2014, Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” was issued. This new guidance establishes a single comprehensive revenue recognition model under U.S. GAAP and provides for enhanced disclosures. Under this new guidance, the amount of revenue recognized for certain transactions could differ from amounts recognized under existing accounting guidance and could also result in recognition in different reporting periods. Also, the provisions of ASU 2014-09 exclude revenue recognition regarding lease contracts. The new guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is prohibited. The Company expects to adopt ASU 2014-09 as of January 1, 2017 and is currently evaluating the impact that this new guidance may have on its results of operations. | ||||
In February 2015, Accounting Standards Update No. 2015-02 (“ASU 2015-02”), “Consolidation,” was issued. The new guidance primarily amends current consolidation accounting guidance with respect to the evaluation criteria for determining whether certain limited partnerships or similar legal entities and certain variable interest entities are subject to consolidated reporting. The new guidance is effective for reporting periods beginning after December 15, 2015. The Company expects to adopt ASU 2015-02 as of January 1, 2016 and is currently evaluating the impact this new standard may have on its financial position and results of operations. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Supplemental cash flow information | Supplemental cash flow information | ||||||||
Supplemental cash flow information for the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest paid, net of interest capitalized | $ | 4,389 | $ | 7,359 | |||||
Interest paid, including interest capitalized | 5,371 | 8,205 | |||||||
Income tax payments, net | 21 | 7 | |||||||
Non-cash investing and financing activities: | |||||||||
Dividends and distributions payable | 21,886 | 19,611 | |||||||
Construction and property capital expenditure cost accruals, increase (decrease) | 6,594 | (2,395 | ) | ||||||
Adjustments to equity related to redeemable common units and other, net increase (decrease) | 215 | (538 | ) | ||||||
Common stock 401k matching contribution | — | 658 |
Real_Estate_Activity_Tables
Real Estate Activity (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Real Estate [Abstract] | |||||
Net Income Attributable to Noncontrolling Interest | The net income and net income attributable to the Company related to these three communities for the three months ended March 31, 2014 were as follows: | ||||
Three months ended | |||||
March 31, 2014 | |||||
Net income | $ | 138 | |||
Net income, net of noncontrolling interest | $ | 154 | |||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Real Estate Entities (Tables) (Unconsolidated Properties [Member]) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Unconsolidated Properties [Member] | |||||||||
Summary of Financial Information for Apartment LLCs | A summary of financial information for the Apartment LLCs in the aggregate is as follows: | ||||||||
March 31, | December 31, | ||||||||
Apartment LLCs - Balance Sheet Data | 2015 | 2014 | |||||||
Real estate assets, net of accumulated depreciation of $50,575 and $49,153 at March 31, 2015 and December 31, 2014, respectively | $ | 207,975 | $ | 208,493 | |||||
Cash and other | 6,491 | 5,490 | |||||||
Total assets | $ | 214,466 | $ | 213,983 | |||||
Mortgage notes payable | $ | 177,723 | $ | 177,723 | |||||
Other liabilities | 4,082 | 3,445 | |||||||
Total liabilities | 181,805 | 181,168 | |||||||
Members’ equity | 32,661 | 32,815 | |||||||
Total liabilities and members’ equity | $ | 214,466 | $ | 213,983 | |||||
Company’s equity investment in Apartment LLCs (1) | $ | (12,504 | ) | $ | (12,565 | ) | |||
1) | At March 31, 2015 and December 31, 2014, the Company’s equity investment includes its credit investments of $16,621 and $16,624, respectively, discussed above. | ||||||||
Schedule of Operation for Apartment LLCs | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
Apartment LLCs - Income Statement Data | 2015 | 2014 | |||||||
Revenues | |||||||||
Rental | $ | 6,784 | $ | 6,485 | |||||
Other property revenues | 456 | 439 | |||||||
Total revenues | 7,240 | 6,924 | |||||||
Expenses | |||||||||
Property operating and maintenance | 3,107 | 2,751 | |||||||
Depreciation and amortization | 1,449 | 1,376 | |||||||
Interest | 2,238 | 2,238 | |||||||
Total expenses | 6,794 | 6,365 | |||||||
Net income | $ | 446 | $ | 559 | |||||
Company’s share of net income in Apartment LLCs | $ | 397 | $ | 485 | |||||
Indebtedness_Tables
Indebtedness (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
Schedule of Indebtedness | At March 31, 2015 and December 31, 2014, the Company’s indebtedness consisted of the following: | ||||||||||||||
Payment | Maturity | March 31, | December 31, | ||||||||||||
Description | Terms | Interest Rate | Date | 2015 | 2014 | ||||||||||
Senior Unsecured Notes | Int. | 3.375% - 4.75% | 2017 - 2022 (1) | $ | 400,000 | $ | 400,000 | ||||||||
Unsecured Bank Term Loan | Int. | LIBOR + 1.15% (2) | 2020 | 300,000 | 300,000 | ||||||||||
Secured Mortgage Notes | Prin. and Int. | 5.99% | 2019 | 191,705 | 192,459 | ||||||||||
Total | $ | 891,705 | $ | 892,459 | |||||||||||
1) | The outstanding unsecured notes mature in 2017 and 2022. | ||||||||||||||
2) | Represents stated rate at March 31, 2015. As discussed below, the Company has entered into interest rate swap arrangements that effectively fix the interest rate under this facility through January 2018. At March 31, 2015, the effective blended interest rate under the Amended Term Loan was 2.69%, as a result of the refinancing of the Term Loan discussed below. | ||||||||||||||
Schedule of Aggregate Maturities of Indebtedness | The aggregate maturities of the Company’s indebtedness are as follows: | ||||||||||||||
Remainder of 2015 | $ | 2,168 | |||||||||||||
2016 | 3,071 | ||||||||||||||
2017 | 153,296 | ||||||||||||||
2018 | 3,502 | ||||||||||||||
2019 | 179,668 | ||||||||||||||
Thereafter | 550,000 | ||||||||||||||
$ | 891,705 | ||||||||||||||
Equity_and_Noncontrolling_Inte1
Equity and Noncontrolling Interests (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Schedule of Redeemable Common Units | A roll-forward of activity relating to the Company’s Redeemable Common Units for the three months ended March 31, 2015 and 2014 was as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Redeemable common units, beginning of period | $ | 7,086 | $ | 6,121 | |||||
Comprehensive income | 39 | 33 | |||||||
Adjustment for ownership interest of redeemable common units | 1 | 7 | |||||||
Stock-based compensation | 3 | 2 | |||||||
Distributions to common unitholders | (48 | ) | (49 | ) | |||||
Adjustment to redemption value of redeemable common units | (216 | ) | 531 | ||||||
Redeemable common units, end of period | $ | 6,865 | $ | 6,645 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Computation of Basic and Diluted Net Income Per Share | For the three months ended March 31, 2015 and 2014, a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per share was as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income available to common shareholders (numerator): | |||||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
Noncontrolling interests - consolidated real estate entities | — | 16 | |||||||
Noncontrolling interests - Operating Partnership | (42 | ) | (33 | ) | |||||
Preferred stock dividends | (922 | ) | (922 | ) | |||||
Unvested restricted stock (allocation of earnings) | (40 | ) | (27 | ) | |||||
Net income available to common shareholders | $ | 18,981 | $ | 13,287 | |||||
Common shares (denominator): | |||||||||
Weighted average shares outstanding - basic | 54,448 | 54,175 | |||||||
Dilutive shares from stock options | 17 | 116 | |||||||
Weighted average shares outstanding - diluted | 54,465 | 54,291 | |||||||
Per-share amount: | |||||||||
Basic | $ | 0.35 | $ | 0.25 | |||||
Diluted | $ | 0.35 | $ | 0.24 | |||||
Post Apartment Homes, L.P. [Member] | |||||||||
Schedule of Computation of Basic and Diluted Net Income Per Share | For the three months ended March 31, 2015 and 2014, a reconciliation of the numerator and denominator used in the computation of basic and diluted net income per unit was as follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net income available to common unitholders (numerator): | |||||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
Noncontrolling interests - consolidated real estate entities | — | 16 | |||||||
Preferred unit distributions | (922 | ) | (922 | ) | |||||
Unvested restricted stock (allocation of earnings) | (40 | ) | (27 | ) | |||||
Net income available to common unitholders | $ | 19,023 | $ | 13,320 | |||||
Common units (denominator): | |||||||||
Weighted average units outstanding - basic | 54,569 | 54,310 | |||||||
Dilutive units from stock options | 17 | 116 | |||||||
Weighted average units outstanding - diluted | 54,586 | 54,426 | |||||||
Per-unit amount: | |||||||||
Basic | $ | 0.35 | $ | 0.25 | |||||
Diluted | $ | 0.35 | $ | 0.24 | |||||
Fair_Value_Measures_and_Other_1
Fair Value Measures and Other Fiancial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Schedule of Effect of Interest Rate Swaps Designated as Cash Flow Hedges | The following table summarizes the effect of these Interest Rate Swaps (designated as cash flow hedges) on the Company’s consolidated statements of operations and comprehensive income for the three months ended March 31, 2015 and 2014: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
Interest Rate Swap / Cash Flow Hedging Instruments | 2015 | 2014 | |||||||
Gain (loss) recognized in other comprehensive income | $ | (2,571 | ) | $ | (1,010 | ) | |||
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | $ | (1,023 | ) | $ | (1,029 | ) | |||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Segment's Contribution to Consolidated Revenues and Net Operating Income | Asset cost, depreciation and amortization by segment are not presented because such information at the segment level is not reported internally. | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | |||||||||
Fully stabilized communities | $ | 82,698 | $ | 80,789 | |||||
Newly stabilized communities | 4,159 | 1,859 | |||||||
Lease-up communities | 1,022 | 19 | |||||||
Held for sale and sold communities | — | 5,871 | |||||||
Other property segments | 5,239 | 4,755 | |||||||
Other | 313 | 219 | |||||||
Consolidated revenues | $ | 93,431 | $ | 93,512 | |||||
Contribution to Property Net Operating Income | |||||||||
Fully stabilized communities | $ | 50,331 | $ | 49,745 | |||||
Newly stabilized communities | 2,606 | 779 | |||||||
Lease-up communities | 526 | (100 | ) | ||||||
Held for sale and sold communities | — | 2,773 | |||||||
Other property segments, including corporate management expenses | (468 | ) | (500 | ) | |||||
Consolidated property net operating income | 52,995 | 52,697 | |||||||
Interest income | 81 | 12 | |||||||
Other revenues | 313 | 219 | |||||||
Depreciation | (21,257 | ) | (21,767 | ) | |||||
Interest expense | (8,093 | ) | (11,244 | ) | |||||
Amortization of deferred financing costs | (449 | ) | (645 | ) | |||||
General and administrative | (5,014 | ) | (4,128 | ) | |||||
Investment and development | (235 | ) | (811 | ) | |||||
Other investment costs | (134 | ) | (273 | ) | |||||
Severance, impairment and other | — | (907 | ) | ||||||
Gains on condominium sales activities, net | 1,773 | 810 | |||||||
Equity in income of unconsolidated real estate entities, net | 397 | 485 | |||||||
Other income (expense), net | (195 | ) | (195 | ) | |||||
Net loss on extinguishment of indebtedness | (197 | ) | — | ||||||
Net income | $ | 19,985 | $ | 14,253 | |||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Postemployment Benefits [Abstract] | |||||||||||||||||||||
Schedule of Assumptions Used in Black-Scholes Option-Pricing Model | The weighted average assumptions used in the Black-Scholes option-pricing model are as follows: | ||||||||||||||||||||
Three months ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Dividend yield | 2.7 | % | 2.8 | % | |||||||||||||||||
Expected volatility | 42.8 | % | 43 | % | |||||||||||||||||
Risk-free interest rate | 1.4 | % | 1.8 | % | |||||||||||||||||
Expected option term (years) | 6.0 years | 6.0 years | |||||||||||||||||||
Summary of Activity Related to Company's Restricted Stock | A summary of the activity related to the Company’s restricted stock for the three months ended March 31, 2015 and 2014 is as follows: | ||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Weighted-Avg. | Weighted-Avg. | ||||||||||||||||||||
Grant-Date | Grant-Date | ||||||||||||||||||||
Shares | Fair Value | Shares | Fair Value | ||||||||||||||||||
Unvested shares, beginning of period | 76 | $ | 49 | 75 | $ | 48 | |||||||||||||||
Granted (1) | 68 | 60 | 55 | 47 | |||||||||||||||||
Vested | (3 | ) | 52 | — | — | ||||||||||||||||
Unvested shares, end of period | 141 | 54 | 130 | 47 | |||||||||||||||||
1) | The total value of the restricted share grants for the three months ended March 31, 2015 and 2014 was $4,123 and $2,566, respectively. | ||||||||||||||||||||
Summary of Stock Option Activity Under All Plans | A summary of stock option activity under all plans for the three months ended March 31, 2015 and 2014 is presented below: | ||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||
Shares | Price | Shares | Price | ||||||||||||||||||
Options outstanding, beginning of period | 148 | $ | 46 | 539 | $ | 36 | |||||||||||||||
Granted | 28 | 60 | 35 | 47 | |||||||||||||||||
Exercised | (38 | ) | 48 | (73 | ) | 29 | |||||||||||||||
Options outstanding, end of period (1) | 138 | 49 | 501 | 38 | |||||||||||||||||
Options exercisable, end of period (1) | 77 | 45 | 439 | 37 | |||||||||||||||||
Options vested and expected to vest, end of period (1) | 135 | 49 | 498 | 38 | |||||||||||||||||
Weighted average fair value of options granted during the period | $ | 19.49 | $ | 15.21 | |||||||||||||||||
1) | At March 31, 2015, the aggregate intrinsic value of stock options outstanding, exercisable and vested/expected to vest was $1,215, $922 and $1,200, respectively. At that same date, the weighted average remaining contractual lives of stock options outstanding, exercisable and vested/expected to vest was 7.3 years, 5.8 years and 7.3 years, respectively. | ||||||||||||||||||||
Schedule of Outstanding Options into Two Ranges, Based on Exercise Prices | At March 31, 2015, the Company segregated its outstanding options into two ranges, based on exercise prices, as follows: | ||||||||||||||||||||
Option Ranges | Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted Avg. | Weighted Avg. | Weighted Avg. | |||||||||||||||||||
Shares | Exercise Price | Life (Years) | Shares | Exercise Price | |||||||||||||||||
$37.04 - $46.93 | 80 | $ | 44 | 6.6 | 56 | $ | 43 | ||||||||||||||
$48.00 - $60.40 | 58 | 55 | 8.3 | 21 | 50 | ||||||||||||||||
Total | 138 | 49 | 7.3 | 77 | 45 | ||||||||||||||||
Organization_and_Significant_A3
Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Apartment | ||||
Property | ||||
Real Estate Properties [Line Items] | ||||
Number of units in real estate property | 23,350 | 23,350 | ||
Number of real estate properties | 59 | 59 | ||
Common stock, shares outstanding | 54,594,000 | 54,594,000 | 54,509,000 | |
Common units, shares outstanding | 54,594,000 | 54,594,000 | ||
Ownership interest percentage in Operating Partnership | 99.80% | 99.80% | 99.80% | |
Common units held by persons other than the Company | 121,000 | 121,000 | ||
Noncontrolling interest, ownership percentage by noncontrolling owners | 0.20% | 0.20% | ||
Number of shares for redemption of each common unit | 1 | 1 | ||
Operating leases term (in years) | 1 year | |||
Revenue recognized lease (in years) | 1 year | |||
Aggregate interest costs capitalized to projects under development or construction | $982 | $846 | ||
Development or construction costs | $1,135 | $489 | ||
Unconsolidated Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of units in real estate property | 1,471 | 1,471 | ||
Number of real estate properties | 4 | 4 | ||
Unconsolidated Properties [Member] | Atlanta, Georgia [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | 3 | 3 | ||
Unconsolidated Properties [Member] | Washington, D.C. [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of real estate properties | 1 | 1 | ||
Under Development [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of units in real estate property | 1,819 | 1,819 | ||
Number of real estate properties | 5 | 5 | ||
Cost Capitalization [Member] | ||||
Real Estate Properties [Line Items] | ||||
Weighted average borrowing costs, percentage | 4.30% | 4.60% | 4.30% | |
Operating Communities [Member] | Geographic Concentration Risk [Member] | Atlanta, Georgia [Member] | ||||
Real Estate Properties [Line Items] | ||||
Concentration of location for communities, percentage | 29.10% | |||
Operating Communities [Member] | Geographic Concentration Risk [Member] | Dallas, Texas [Member] | ||||
Real Estate Properties [Line Items] | ||||
Concentration of location for communities, percentage | 21.90% | |||
Operating Communities [Member] | Geographic Concentration Risk [Member] | Washington, D.C. [Member] | ||||
Real Estate Properties [Line Items] | ||||
Concentration of location for communities, percentage | 13.50% | |||
Operating Communities [Member] | Geographic Concentration Risk [Member] | Tampa, Florida [Member] | ||||
Real Estate Properties [Line Items] | ||||
Concentration of location for communities, percentage | 10.90% | |||
Buildings and Components [Member] | ||||
Real Estate Properties [Line Items] | ||||
Estimated useful life (in years) | 40 years | |||
Other Building and Land Improvements [Member] | ||||
Real Estate Properties [Line Items] | ||||
Estimated useful life (in years) | 20 years | |||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||
Real Estate Properties [Line Items] | ||||
Estimated useful life (in years) | 5 years | |||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||
Real Estate Properties [Line Items] | ||||
Estimated useful life (in years) | 10 years |
Organization_and_Significant_A4
Organization and Significant Accounting Policies - Supplemental Cash Flow Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ||
Interest paid, net of interest capitalized | $4,389 | $7,359 |
Interest paid, including interest capitalized | 5,371 | 8,205 |
Income tax payments, net | 21 | 7 |
Non-cash investing and financing activities: | ||
Dividends and distributions payable | 21,886 | 19,611 |
Construction and property capital expenditure cost accruals, increase (decrease) | 6,594 | -2,395 |
Adjustments to equity related to redeemable common units and other, net increase (decrease) | 215 | -538 |
Common stock 401k matching contribution | $658 |
Real_Estate_Activity_Dispositi
Real Estate Activity (Dispositions) - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Apartment | ||
Property | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 59 | |
Number of units in real estate property | 23,350 | |
Net gains on sales of condominiums | $1,773 | $810 |
For-Sale Condominium Homes [Member] | Austin Condominium Project [Member] | ||
Real Estate Properties [Line Items] | ||
Net gains on sales of condominiums | 1,773 | |
For-Sale Condominium Homes [Member] | Atlanta Condominium Project [Member] | ||
Real Estate Properties [Line Items] | ||
Net gains on sales of condominiums | $810 | |
Apartment Communities Sold [Member] | New York [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 2 | |
Number of units in real estate property | 337 | |
Apartment Communities Sold [Member] | Houston, Texas [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Number of units in real estate property | 308 | |
Assets Held-for-Sale [Member] | ||
Real Estate Properties [Line Items] | ||
Number of units in real estate property | 645 | |
Assets Held-for-Sale [Member] | Apartment Communities Sold [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 3 |
Real_Estate_Activity_Net_Incom
Real Estate Activity - Net Income Attributable to Noncontrolling Interest (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Loss From Operations Net Of Non Controlling Interest [Line Items] | ||
Net income | $19,985 | $14,253 |
Net income, net of noncontrolling interest | 19,943 | 14,236 |
Apartment Communities Sold [Member] | Assets Held-for-Sale [Member] | ||
Income Loss From Operations Net Of Non Controlling Interest [Line Items] | ||
Net income | 138 | |
Net income, net of noncontrolling interest | $154 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Real Estate Entities - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Real Estate Properties [Line Items] | ||
Number of real estate properties | 59 | |
Investment in owned subsidiaries | $4,117 | $4,059 |
Investments in unconsolidated real estate entities | 16,621 | 16,624 |
Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 4 | |
Investments in unconsolidated real estate entities | 16,621 | 16,624 |
Mortgage note payable | 177,723 | 177,723 |
3.50% Mortgage Note Payable [Member] | ||
Real Estate Properties [Line Items] | ||
Mortgage note payable | 51,000 | |
Mortgage notes payable bearing interest rate | 3.50% | |
Mortgage note payable maturity date | 2019 | |
5.63% Mortgage Notes Payable [Member] | ||
Real Estate Properties [Line Items] | ||
Mortgage note payable | 85,724 | |
Mortgage notes payable bearing interest rate | 5.63% | |
Mortgage note payable maturity date | 2017 | |
5.71% Mortgage Notes Payable [Member] | ||
Real Estate Properties [Line Items] | ||
Mortgage note payable | $41,000 | |
Mortgage notes payable bearing interest rate | 5.71% | |
Automatic extension period (in years) | 1 year | |
Mortgage note payable maturity date | Jan-18 | |
Washington, D.C. [Member] | Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Atlanta, Georgia [Member] | Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 3 | |
Minimum [Member] | Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Equity method investment, ownership percentage | 25.00% | |
Maximum [Member] | Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Equity method investment, ownership percentage | 35.00% |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Real Estate Entities - Summary of Financial Information for Apartment LLCs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Real Estate Properties [Line Items] | ||||
Real estate assets, net of accumulated depreciation of $50,575 and $49,153 at March 31, 2015 and December 31, 2014, respectively | $2,140,809 | $2,128,767 | ||
Total assets | 2,309,603 | 2,311,798 | ||
Total liabilities | 1,018,985 | 1,018,752 | ||
Members' equity | 1,283,753 | 1,285,960 | 1,149,832 | 1,152,731 |
Total liabilities and members' equity | 2,309,603 | 2,311,798 | ||
Unconsolidated Properties [Member] | ||||
Real Estate Properties [Line Items] | ||||
Real estate assets, net of accumulated depreciation of $50,575 and $49,153 at March 31, 2015 and December 31, 2014, respectively | 207,975 | 208,493 | ||
Cash and other | 6,491 | 5,490 | ||
Total assets | 214,466 | 213,983 | ||
Mortgage notes payable | 177,723 | 177,723 | ||
Other liabilities | 4,082 | 3,445 | ||
Total liabilities | 181,805 | 181,168 | ||
Members' equity | 32,661 | 32,815 | ||
Total liabilities and members' equity | 214,466 | 213,983 | ||
Company's equity investment in Apartment LLCs | ($12,504) | ($12,565) |
Investments_in_Unconsolidated_4
Investments in Unconsolidated Real Estate Entities - Summary of Financial Information for Apartment LLCs (Parenthetical) (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ||
Real estate assets, accumulated depreciation | $958,381 | $937,310 |
Investments in unconsolidated real estate entities | 16,621 | 16,624 |
Unconsolidated Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate assets, accumulated depreciation | 50,575 | 49,153 |
Investments in unconsolidated real estate entities | $16,621 | $16,624 |
Investments_in_Unconsolidated_5
Investments in Unconsolidated Real Estate Entities - Schedule of Operation for Apartment LLCs (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Rental | $87,661 | $88,028 |
Other property revenues | 5,457 | 5,265 |
Total revenues | 93,431 | 93,512 |
Expenses | ||
Property operating and maintenance | 40,123 | 40,596 |
Interest | 8,093 | 11,244 |
Total expenses | 66,763 | 68,482 |
Net income | 19,943 | 14,236 |
Company's share of net income in Apartment LLCs | 397 | 485 |
Unconsolidated Properties [Member] | ||
Revenues | ||
Rental | 6,784 | 6,485 |
Other property revenues | 456 | 439 |
Total revenues | 7,240 | 6,924 |
Expenses | ||
Property operating and maintenance | 3,107 | 2,751 |
Depreciation and amortization | 1,449 | 1,376 |
Interest | 2,238 | 2,238 |
Total expenses | 6,794 | 6,365 |
Net income | 446 | 559 |
Company's share of net income in Apartment LLCs | $397 | $485 |
Indebtedness_Schedule_of_Indeb
Indebtedness - Schedule of Indebtedness (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Total | $891,705 | $892,459 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Payment Terms | Int. | ||
Interest Rate, minimum | 3.38% | ||
Interest Rate, maximum | 4.75% | ||
Unsecured debt | 400,000 | 400,000 | |
Unsecured Bank Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Payment Terms | Int. | ||
Interest Rate, spread over LIBOR | 1.15% | 1.15% | 1.70% |
Debt instrument, Maturity | 2020 | ||
Unsecured debt | 300,000 | 300,000 | |
Secured Mortgage Notes [Member] | |||
Debt Instrument [Line Items] | |||
Payment Terms | Prin. and Int. | ||
Interest Rate | 5.99% | ||
Debt instrument, Maturity | 2019 | ||
Secured debt | $191,705 | $192,459 | |
Minimum [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, Maturity | 2017 | ||
Maximum [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, Maturity | 2022 |
Indebtedness_Schedule_of_Indeb1
Indebtedness - Schedule of Indebtedness (Parenthetical) (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Unsecured Bank Term Loan [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, Maturity | 2020 |
Effective blended interest rate | 2.69% |
Minimum [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, Maturity | 2017 |
Maximum [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, Maturity | 2022 |
Indebtedness_Schedule_of_Aggre
Indebtedness - Schedule of Aggregate Maturities of Indebtedness (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Remainder of 2015 | $2,168 | |
2016 | 3,071 | |
2017 | 153,296 | |
2018 | 3,502 | |
2019 | 179,668 | |
Thereafter | 550,000 | |
Total | $891,705 | $892,459 |
Indebtedness_Unsecured_lines_o
Indebtedness (Unsecured lines of credit) - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 |
OptionPlans | |||
Debt Instrument [Line Items] | |||
Letters of credit issued | $122 | ||
Incurred fees and expenses | 4,002 | ||
Net gain (loss) on extinguishment of indebtedness | -197 | ||
Cash Management Line [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | 30,000 | 30,000 | |
Interest Rate, spread over LIBOR | 1.23% | ||
Number of extension options | 1 | ||
Time period extension option | 1 year | ||
Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, current borrowing capacity | $300,000 | $300,000 | |
Interest Rate, spread over LIBOR | 1.05% | 1.23% | |
Line of credit facility annual facility fees percentage | 0.20% | 0.23% | |
Interest rate based on credit ratings ranges, minimum | 0.88% | ||
Interest rate based on credit ratings ranges, maximum | 1.55% | ||
Facility fee rate based on credit ratings range, minimum | 0.13% | ||
Facility fee rate based on credit ratings range, maximum | 0.30% | ||
Line of credit facility, competitive bid option for short-term funds, percentage | 50.00% |
Indebtedness_Unsecured_term_lo
Indebtedness (Unsecured term loan) - Additional Information (Detail) (Unsecured Bank Term Loan [Member], USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Term loan facility, borrowing capacity | $300,000 | $300,000 | |
Interest Rate, spread over LIBOR | 1.15% | 1.15% | 1.70% |
Interest rate based on credit ratings ranges, minimum | 0.90% | ||
Interest rate based on credit ratings ranges, maximum | 1.85% | ||
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate paid under the Term Loan | 1.54% |
Indebtedness_Debt_compliance_a
Indebtedness (Debt compliance and other) - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Coverage's ratio | 1.5 |
Company's ratio | 2 |
Unencumbered assets to unsecured debt | 1.5 |
Leverage ratio | 60.00% |
Total secured debt to total asset value | 40.00% |
Line of credit facility, covenant terms | The Company's Amended Syndicated Line, Amended Cash Management Line, Amended Term Loan and senior unsecured notes contain customary restrictions, representations, covenants and events of default and require the Company to meet certain financial covenants. Debt service and fixed charge coverage covenants require the Company to maintain coverages of a minimum of 1.5 to 1.0, as defined in applicable debt arrangements |
Equity_and_Noncontrolling_Inte2
Equity and Noncontrolling Interests (Common stock) - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Equity And Noncontrolling Interests [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Repurchased shares of common stock, shares | 0 | 0 | |
Stock repurchase program, authorized amount | $200,000 | ||
At-The-Market Common Equity Sales Program [Member] | |||
Equity And Noncontrolling Interests [Line Items] | |||
Common stock, shares authorized | 4,000,000 |
Equity_and_Noncontrolling_Inte3
Equity and Noncontrolling Interests (Noncontrolling interests) - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ||
Redeemable common units | $6,865 | $7,086 |
Noncontrolling interests in the Operating Partnership, net book value | $6,865 | $7,086 |
Equity_and_Noncontrolling_Inte4
Equity and Noncontrolling Interests - Schedule of Redeemable Common Units (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity And Noncontrolling Interests [Line Items] | ||
Redeemable common units, beginning of period | $7,086 | |
Comprehensive income | 18,398 | 14,240 |
Stock-based compensation | 1,696 | 946 |
Distributions to common unitholders | -21,838 | -19,562 |
Adjustment to redemption value of redeemable common units | 216 | -531 |
Redeemable common units, end of period | 6,865 | |
Redeemable Common Units [Member] | ||
Equity And Noncontrolling Interests [Line Items] | ||
Redeemable common units, beginning of period | 7,086 | 6,121 |
Comprehensive income | 39 | 33 |
Adjustment for ownership interest of redeemable common units | 1 | 7 |
Stock-based compensation | 3 | 2 |
Distributions to common unitholders | -48 | -49 |
Adjustment to redemption value of redeemable common units | -216 | 531 |
Redeemable common units, end of period | $6,865 | $6,645 |
Company_Earnings_Per_Share_Sch
Company Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $19,985 | $14,253 |
Noncontrolling interests - consolidated real estate entities | 16 | |
Noncontrolling interests - Operating Partnership | -42 | -33 |
Distributions to preferred unitholders | -922 | -922 |
Unvested restricted stock (allocation of earnings) | -40 | -27 |
Net income available to common shareholders | $18,981 | $13,287 |
Weighted average shares outstanding - basic | 54,448 | 54,175 |
Dilutive shares from stock options | 17 | 116 |
Weighted average shares outstanding - diluted | 54,465 | 54,291 |
Basic | $0.35 | $0.25 |
Diluted | $0.35 | $0.24 |
Company_Earnings_Per_Share_Add
Company Earnings Per Share - Additional Information (Detail) (Gross Antidilutive [Member]) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gross Antidilutive [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive stock options to purchase common stock | 28 | 216 |
Operating_Partnership_Earnings
Operating Partnership Earnings Per Share - Schedule of Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income | $19,985 | $14,253 |
Noncontrolling interests - consolidated real estate entities | 16 | |
Preferred unit distributions | -922 | -922 |
Unvested restricted stock (allocation of earnings) | -40 | -27 |
Net income available to common shareholders | 18,981 | 13,287 |
Weighted average units outstanding - basic | 54,448 | 54,175 |
Dilutive units from stock options | 17 | 116 |
Weighted average units outstanding - diluted | 54,465 | 54,291 |
Basic | $0.35 | $0.25 |
Diluted | $0.35 | $0.24 |
Post Apartment Homes, L.P. [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income | 19,985 | 14,253 |
Noncontrolling interests - consolidated real estate entities | 16 | |
Preferred unit distributions | -922 | -922 |
Unvested restricted stock (allocation of earnings) | -40 | -27 |
Net income available to common shareholders | $19,023 | $13,320 |
Weighted average units outstanding - basic | 54,569 | 54,310 |
Dilutive units from stock options | 17 | 116 |
Weighted average units outstanding - diluted | 54,586 | 54,426 |
Basic | $0.35 | $0.25 |
Diluted | $0.35 | $0.24 |
Operating_Partnership_Earnings1
Operating Partnership Earnings Per Unit - Additional Information (Detail) (Gross Antidilutive [Member]) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive stock options to purchase common stock | 28 | 216 |
Post Apartment Homes, L.P. [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive stock options to purchase common stock | 28 | 216 |
Fair_Value_Measures_and_Other_2
Fair Value Measures and Other Financial Instruments (Real estate assets) - Additional Information (Detail) (Fair Value, Inputs, Level 3 [Member], Market Approach Valuation Technique [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impairment charges | $0 | $0 |
Fair_Value_Measures_and_Other_3
Fair Value Measures and Other Financial Instruments (Derivatives and other financial instruments) - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Reduction in blended interest rate | 2.69% | |
Derivative maturity period | 2018-01 | |
Accumulated comprehensive income to interest expense, future periods | $3,615,000 | |
Termination payment | 5,254,000 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net liabilities | 5,233,000 | 3,685,000 |
Three Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amounts | 230,000,000 | |
Derivative, fixed interest rate | 1.55% | |
Three Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Counterparty paying | Counterparties paying the Company the floating one-month LIBOR rate | |
Fourth Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amounts | $70,000,000 | |
Derivative, fixed interest rate | 1.50% | |
Fourth Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Counterparty paying | Counterparty paying the Company the floating one-month LIBOR rate | |
Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of interest rate swap agreements | 3 |
Fair_Value_Measures_and_Other_4
Fair Value Measures and Other Financial Instruments - Schedule of Effect of Interest Rate Swaps Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging [Member], Interest Rate Swap [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in other comprehensive income | ($2,571) | ($1,010) |
Loss reclassified from accumulated other comprehensive income (loss) into interest expense | ($1,023) | ($1,029) |
Fair_Value_Measures_and_Financ
Fair Value Measures and Financial Instruments (Other financial instruments) - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fixed Rate Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | $621,773 | $620,641 |
Carrying value of debt | 591,705 | 592,459 |
Variable Rate Debt [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of debt | 300,000 | 304,983 |
Carrying value of debt | $300,000 | $300,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting [Abstract] | ||
Stabilized occupancy benchmark percentage | 95.00% | 95.00% |
Number of years to achieve stabilized occupancy subsequent to completion of construction | 1 year | 1 year |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment's Contribution to Consolidated Revenues and Net Operating Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Other | $313 | $219 |
Revenues | 93,431 | 93,512 |
Consolidated property net operating income | 52,995 | 52,697 |
Interest income | 81 | 12 |
Other revenues | 313 | 219 |
Depreciation | -21,257 | -21,767 |
Interest expense | -8,093 | -11,244 |
Amortization of deferred financing costs | -449 | -645 |
General and administrative | -5,014 | -4,128 |
Investment and development | -235 | -811 |
Other investment costs | -134 | -273 |
Severance, impairment and other | -907 | |
Gains on condominium sales activities, net | 1,773 | 810 |
Equity in income of unconsolidated real estate entities, net | 397 | 485 |
Other income (expense), net | -195 | -195 |
Net loss on extinguishment of indebtedness | -197 | |
Net income | 19,985 | 14,253 |
Fully Stabilized Communities [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 82,698 | 80,789 |
Consolidated property net operating income | 50,331 | 49,745 |
Communities Stabilized During 2013 [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 4,159 | 1,859 |
Consolidated property net operating income | 2,606 | 779 |
Lease Up Communities [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,022 | 19 |
Consolidated property net operating income | 526 | -100 |
Held For Sale And Sold Communities [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,871 | |
Consolidated property net operating income | 2,773 | |
Other Property Segments, Including Corporate Management Expenses [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,239 | 4,755 |
Consolidated property net operating income | ($468) | ($500) |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Incentive stock plans) - Additional Information (Detail) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock reserved for issuance | 3,469 |
Stock grants counted against the total shares for every share issued | 2.7 |
Stock-based compensation arrangement maximum assumption expected period, years | 10 years |
Description and terms of 2003 incentive stock plan | Incentive stock awards are granted under the Companybs 2003 Incentive Stock Plan, as amended and restated in October 2008 (the b2003 Stock Planb). Under the 2003 Stock Plan, an aggregate of 3,469 shares of common stock were reserved for issuance. Of this amount, stock grants count against the total shares available under the 2003 Stock Plan as 2.7 shares for every one share issued, while options (and stock appreciation rights (bSARb) settled in shares) count against the total shares available as one share for every one share issued on the exercise of an option (or SAR). The exercise price of each option granted under the 2003 Stock Plan may not be less than the market price of the Companybs common stock on the date of the option grant and all options may have a maximum life of ten years. Participants receiving restricted stock grants are generally eligible to vote such shares and receive dividends on such shares. Substantially all stock option and restricted stock grants are subject to annual vesting provisions (generally three to five years) as determined by the compensation committee overseeing the 2003 Stock Plan. |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award vesting period, (in years) | 3 years |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based compensation arrangement by share-based payment award vesting period, (in years) | 5 years |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Schedule of Assumptions Used in Black-Scholes Option-Pricing Model (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Dividend yield | 2.70% | 2.80% |
Expected volatility | 42.80% | 43.00% |
Risk-free interest rate | 1.40% | 1.80% |
Expected option term (years) | 6 years | 6 years |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Restricted stock) - Additional Information (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense relating to restricted stock | $1,467 | $770 |
Unrecognized compensation cost related to unvested stock options | $5,628 | |
Unrecognized compensation costs, weighted average period of recognition, years | 2 years 2 months 12 days |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans - Summary of Activity Related to Company's Restricted Stock (Detail) (Restricted Stock [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested shares, beginning of period | 76 | 75 |
Granted, Shares | 68 | 55 |
Vested, Shares | -3 | |
Unvested shares, end of period | 141 | 130 |
Weighted-Avg. Grant-Date Fair Value, Unvested shares, beginning of period | $49 | $48 |
Weighted-Avg. Grant-Date Fair Value, Granted | $60 | $47 |
Weighted-Avg. Grant-Date Fair Value, Vested | $52 | |
Weighted-Avg. Grant-Date Fair Value, Unvested Shares, end of period | $54 | $47 |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans - Summary of Activity Related to Company's Restricted Stock (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Total value of the restricted share grants | $4,123 | $2,566 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans (Stock options) - Additional Information (Detail) (Stock Options [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total compensation expense relating to the stock option | $178 | $139 |
Unrecognized compensation cost related to unvested stock options | 837 | |
Unrecognized compensation costs, weighted average period of recognition, years | 2 years 3 months 18 days | |
Intrinsic value of stock options exercised | $548 | $1,292 |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans - Summary of Stock Option Activity Under All Plans (Detail) (Stock Options [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding, beginning of period, Shares | 148 | 539 |
Granted, Shares | 28 | 35 |
Exercised, Shares | -38 | -73 |
Options outstanding, end of period, Shares | 138 | 501 |
Options exercisable, end of period, Shares | 77 | 439 |
Options vested and expected to vest, end of period, Shares | 135 | 498 |
Weighted average fair value of options granted during the period | $19.49 | $15.21 |
Options outstanding, beginning of period, Exercise Price | $46 | $36 |
Granted, Exercise Price | $60 | $47 |
Exercised, Exercise Price | $48 | $29 |
Options outstanding, end of period, Exercise Price | $49 | $38 |
Options exercisable, end of period, Exercise Price | $45 | $37 |
Options vested and expected to vest, end of period, Exercise Price | $49 | $38 |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans - Summary of Stock Option Activity Under All Plans (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Aggregate intrinsic value of stock options outstanding | $1,215 |
Aggregate intrinsic value of stock options exercisable | 922 |
Aggregate intrinsic values of stock options expected to vest | $1,200 |
Weighted average remaining contractual lives of stock options outstanding, years | 7 years 3 months 18 days |
Weighted average remaining contractual lives of stock options exercisable, years | 5 years 9 months 18 days |
Weighted average remaining contractual lives of stock options expected to vest, years | 7 years 3 months 18 days |
StockBased_Compensation_Plans_9
Stock-Based Compensation Plans - Schedule of Outstanding Options into Two Ranges, Based on Exercise Prices (Detail) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices remaining contractual life, outstanding | 7 years 3 months 18 days |
Range of exercise prices shares, outstanding | 138 |
Range of exercise prices weighted average exercise price, outstanding | $49 |
Range of exercise prices shares, exercisable | 77 |
Options Exercisable, Weighted Avg. Exercise Price | $45 |
Outstanding Options with Range Based Exercise Prices Set One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $37.04 |
Exercise price range, upper range limit | $46.93 |
Range of exercise prices remaining contractual life, outstanding | 6 years 7 months 6 days |
Range of exercise prices shares, outstanding | 80 |
Range of exercise prices weighted average exercise price, outstanding | $44 |
Range of exercise prices shares, exercisable | 56 |
Options Exercisable, Weighted Avg. Exercise Price | $43 |
Outstanding Options with Range Based Exercise Prices Set Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower range limit | $48 |
Exercise price range, upper range limit | $60.40 |
Range of exercise prices remaining contractual life, outstanding | 8 years 3 months 18 days |
Range of exercise prices shares, outstanding | 58 |
Range of exercise prices weighted average exercise price, outstanding | $55 |
Range of exercise prices shares, exercisable | 21 |
Options Exercisable, Weighted Avg. Exercise Price | $50 |
Recovered_Sheet1
Stock-Based Compensation Plans (Employee stock purchase plan) - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Maximum number of shares issuable under the ESPP | 250 | |
Percentage of share purchase price | 85.00% | |
Discount on the share purchases | 15.00% | |
Employee stock purchase plan description, compensation expense | $54 | $39 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $0 | $0 |
Other_Expenses_Additional_Info
Other Expenses - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Component Of Operating Cost And Expense [Line Items] | |
Other expense | $907 |
Software Systems [Member] | |
Component Of Operating Cost And Expense [Line Items] | |
Other expense | 157 |
Natural Disasters and Other Casualty Events [Member] | |
Component Of Operating Cost And Expense [Line Items] | |
Other expense | $750 |