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EXHIBIT 99.2
[POST PROPERTIES LOGO]
FIRST QUARTER 2003
Supplemental Financial Data
Post Properties, Inc., is a leading developer and operator of upscale apartment
communities in the United States. Post has pioneered building and branding
resort-style garden apartments for more than 30 years. Post now also focuses on
the creation of high-quality, high-density, live-work-walk neighborhoods in
infill locations in major urban markets.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved
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FIRST QUARTER 2003
Supplemental Financial Data
Table of Contents
Page
Consolidated Statements of Operations ................................................ 3
Calculation of Funds from Operations and Funds Available for Distribution ............ 5
Same Store Operating Results ......................................................... 6
Consolidated Balance Sheets .......................................................... 8
Consolidated Debt Summary ............................................................ 9
Summary of Construction and Initial Lease-Up Communities ............................. 12
Asset Sales Summary .................................................................. 13
Capitalized Costs Summary ............................................................ 14
Investments in Unconsolidated Real Estate Entities ................................... 15
Reconciliation of Supplemental Non-GAAP Financial Measures ........................... 17
The projections and estimates given in this document and other written or oral
statements made by or on behalf of the Company, may constitute "forward-looking
statements" within the meaning of the federal securities laws. All
forward-looking statements are subject to certain risks and uncertainties that
could cause actual events to differ materially from those projected. Management
believes that these forward-looking statements are reasonable; however, you
should not place undue reliance on such statements. These statements are based
on current expectations and speak only as of the date of such statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events, new information
or otherwise. The following are some of the factors that could cause the
Company's actual results to differ materially from the expected results
described in the Company's forward-looking statements: the Company's ability to
successfully defend against Mr. William's proxy contest; future local and
national economic conditions, including changes in job growth, interest rates,
the availability of financing and other factors; demand for apartments in the
Company's markets and the effect on occupancy and rental rates; the impact of
competition on the Company's business, including competition for tenants and
development locations; the Company's ability to obtain financing or self-fund
the development of additional apartment communities; the uncertainties
associated with the Company's current real estate development, including actual
costs exceeding the Company's budgets or development periods exceeding
expectations; uncertainties associated with the timing and amount of asset sales
and the resulting gains/losses associated with such asset sales; conditions
affecting ownership of residential real estate and general conditions in the
multi-family residential real estate market; the effects of changes in
accounting policies and other regulatory matters detailed in the Company's
filings with the Securities and Exchange Commission and uncertainties of
litigation; and the Company's ability to continue to qualify as a real estate
investment trust under the Internal Revenue Code. Other important risk factors
regarding the Company are included under the caption "Risk Factors" in the
Company's Annual Report on Form 10-K for the year ended December 31, 2002 and
may be discussed in subsequent filings with the SEC. The risk factors discussed
in such Form 10-K under the caption "Risk Factors" are specifically incorporated
by reference into this document.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 2
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POST PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share or unit data)
(Unaudited)
THREE MONTHS ENDED
MARCH 31
---------------------------------
2003 2002
------------ ------------
REVENUES
Rental $ 78,862 $ 78,788
Other 2,911 2,993
Interest 234 405
------------ ------------
Total revenues 82,007 82,186
------------ ------------
EXPENSES
Property operating and maintenance (exclusive of items shown separately below) 33,626 32,850
Depreciation 22,728 19,902
Interest 16,561 13,144
Amortization of deferred financing costs 788 555
General and administrative 3,624 3,765
Minority interest in consolidated property partnerships (334) (483)
Other (1) 567 --
Severance charges (2) 19,712 --
Asset impairment charge (3) 14,118 --
------------ ------------
Total expenses 111,390 69,733
------------ ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN LOSSES OF UNCONSOLIDATED
ENTITIES, GAINS ON PROPERTY SALES AND MINORITY INTEREST (29,383) 12,453
Equity in losses of unconsolidated real estate entities (393) (343)
Gains on property sales (3) -- 13,275
Minority interest of preferred unitholders (1,400) (1,400)
Minority interest of common unitholders 3,877 (2,543)
------------ ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS (27,299) 21,442
------------ ------------
DISCONTINUED OPERATIONS (3)
Income from discontinued operations, net of minority interest 620 2,309
Gains (losses) on properties held for sale and sold, net of minority interest 6,091 (6,731)
------------ ------------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 6,711 (4,422)
------------ ------------
NET INCOME (LOSS) (20,588) 17,020
DIVIDENDS TO PREFERRED SHAREHOLDERS (2,862) (2,862)
------------ ------------
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ (23,450) $ 14,158
============ ============
PER COMMON SHARE DATA - BASIC (4)
Income (loss) from continuing operations (net of preferred dividends) $ (0.81) $ 0.50
Income (loss) from discontinued operations 0.18 (0.12)
------------ ------------
Net income (loss) available to common shareholders $ (0.63) $ 0.38
============ ============
Dividends declared $ 0.45 $ 0.78
============ ============
Weighted average common shares outstanding - basic 37,261,643 36,937,682
============ ============
Weighted average common shares and units outstanding - basic 42,049,315 41,994,047
============ ============
PER COMMON SHARE DATA - DILUTED (4)
Income (loss) from continuing operations (net of preferred dividends) $ (0.81) $ 0.50
Income (loss) from discontinued operations 0.18 (0.12)
------------ ------------
Net income (loss) available to common shareholders $ (0.63) $ 0.38
============ ============
Dividends declared $ 0.45 $ 0.78
============ ============
Weighted average common shares outstanding - diluted 37,261,648 37,049,164
============ ============
Weighted average common shares and units outstanding - diluted 42,049,320 42,105,529
============ ============
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 3
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POST PROPERTIES, INC.
NOTES TO CONSOLIDATED
STATEMENTS OF OPERATIONS
(1) Other expenses includes legal expenses relating to board of directors
governance and transition matters, the settlement cost relating to the
bankruptcy of a former technology investment and the estimated loss on
the disposal of the Company's partial ownership interest in a corporate
aircraft.
(2) Represents the previously announced non-cash charge relating to the
change in roles from executive to non-executive status of the Company's
former chairman and vice-chairman of the board of directors. The amount
consists of a $13,994 charge representing the discounted present value
of the estimated payments to be made to these individuals under their
existing employment arrangements and a $5,718 charge representing the
discontinued present value of estimated net costs that may be incurred
by the Company as a result of the settlement of split-dollar life
insurance obligations to the individuals under their employment
contracts. The estimated charge for the settlement of the split-dollar
life insurance obligations may change based upon a final legal
determination regarding these insurance contracts and a final
settlement among the parties.
(3) On January 1, 2002, the Company adopted SFAS No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets." In accordance with
the provisions of SFAS No. 144, the operating results of real estate
assets designated as held for sale subsequent to January 1, 2002 are
included in discontinued operations in the consolidated statement of
operations. Also under the provisions of SFAS No. 144, the reserves, if
any, to write down the carrying value of real estate assets designated
and classified as held for sale after January 1, 2002 are included in
discontinued operations. All subsequent gains or additional losses on
the sale of these assets are also included in discontinued operations.
Additionally under SFAS No. 144, any impairment losses on assets held
for continuing use are included in continuing operations. The gains or
losses on the sale of real estate assets held for sale at December 31,
2001 are included in continuing operations. As a result, income from
continuing operations is not comparable between the periods presented.
For the three months ended March 31, 2003, income from discontinued
operations included the results of operations, through the earlier of
community sale date (if the community was sold between January 1, 2003
and March 31, 2003) or March 31, 2003, of two apartment communities
containing 1,009 units that were classified as held for sale at
December 31, 2002. For the three months ended March 31, 2002, income
from discontinued operations included the results of operations of
eight apartment communities containing 3,134 units and one commercial
property.
The revenues and expenses of these communities for the three months
ended March 31, 2003 and 2002 were as follows:
THREE MONTHS ENDED
MARCH 31,
---------------------
2003 2002
------ ------
REVENUES
Rental $2,173 $7,662
Other 71 264
------ ------
Total revenues 2,244 7,926
------ ------
EXPENSES
Property operating and maintenance 805 3,054
(exclusive of items shown separately below)
Depreciation -- 864
Interest 739 1,383
------ ------
Total expenses 1,544 5,301
------ ------
Income from discontinued operations
(before minority interest) $ 700 $2,625
====== ======
For the three months ended March 31, 2003, the Company recognized net
gains from discontinued operations of $7,981 ($7,072 net of minority
interest), on the sale of one community, containing 239 apartment
units, reduced by losses of $1,107 ($981 net of minority interest)
resulting from losses on the sale of certain land parcels and
additional reserves to write-down to fair value certain other land
parcels previously classified as held for sale at December 31, 2002.
For the three months ended March 31, 2003, the Company recorded an
impairment loss of $14,118, under the provisions of SFAS No. 144, to
write down the cost of an apartment community, located in Phoenix,
Arizona, to its estimated fair value, based upon a revised
determination that it was more probable that this community would be
marketed for sale in the near term instead of held for long-term
investment. This community has not been classified as held for sale at
March 31, 2003 as the Company's internal investment committee has not
approved the sale of the community and no program has been initiated to
actively sell the community.
(4) Post Properties, Inc. is structured as an UPREIT, or Umbrella
Partnership Real Estate Investment Trust. Post GP Holdings, Inc., a
wholly owned subsidiary of the Company, is the sole general partner
and, together with Post LP Holdings, Inc. owns the controlling interest
in Post Apartment Homes, L.P., the Operating Partnership, through which
the Company conducts its operations. As of March 31, 2003, there were
42,056,835 units of the Operating Partnership outstanding, of which
37,325,182, or 88.7% were owned by the Company. The diluted weighted
average shares and units outstanding for the three months ended March
31, 2003 and 2002 were 42,049,320 and 42,105,529, respectively.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 4
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POST PROPERTIES, INC.
CALCULATION OF FUNDS FROM OPERATIONS
AND FUNDS AVAILABLE FOR DISTRIBUTION
(Dollars in thousands, except per share or unit data)
(Unaudited)
The Company uses the National Association for Real Estate Investment Trusts
("NAREIT") definition of funds from operations ("FFO"). FFO is defined by NAREIT
to mean net income (loss) available to common shareholders determined in
accordance with GAAP, excluding gains (or losses) from debt restructuring and
sales of property, plus depreciation of real estate assets, and after adjustment
for unconsolidated partnerships and joint ventures all determined on a
consistent basis in accordance with GAAP. FFO is a supplemental non-GAAP
financial measure. FFO presented herein is not necessarily comparable to FFO
presented by other real estate companies because not all real estate companies
use the same definition. The Company's FFO is comparable to the FFO of real
estate companies that use the current NAREIT definition. FFO and funds available
for distribution ("FAD") should not be considered as an alternative to net
income (determined in accordance with GAAP) as an indicator of the Company's
financial performance or to cash flow from operating activities (determined in
accordance with GAAP) as a measure of the Company's liquidity, nor is it
necessarily indicative of sufficient cash flow to fund all of the Company's
needs or ability to service indebtedness or make distributions. FAD is defined
as FFO less capital expenditures funded by operations. FAD is a supplemental
non-GAAP financial measure. The Company believes that net income (loss)
available to common shareholders is the most directly comparable GAAP measure to
FFO and FAD. A reconciliation of net income (loss) available to common
shareholders to FFO and FAD is provided below.
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2003 2002
------------ ------------
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS $ (23,450) $ 14,158
Minority interest of common unitholders - continuing operations (3,877) 2,543
Gains on property sales - continuing operations -- (13,275)
Asset impairment charges 14,118 --
Losses (gains) on properties held for sale and sold, net
of minority interest - discontinued operations (1) (6,091) 6,731
Minority interest in discontinued operations (2) 79 315
Depreciation on wholly-owned real estate assets, net (3) 21,618 19,586
Depreciation on real estate assets held in unconsolidated entities 466 138
------------ ------------
FUNDS FROM OPERATIONS, AS DEFINED (A) 2,863 30,196
Severance charges 19,712 --
------------ ------------
FUNDS FROM OPERATIONS, EXCLUDING SEVERANCE CHARGES (B) $ 22,575 $ 30,196
============ ============
FUNDS FROM OPERATIONS, AS DEFINED $ 2,863 $ 30,196
Recurring capital expenditures (1,462) (1,879)
Non-recurring capital expenditures (958) (547)
------------ ------------
FUNDS AVAILABLE FOR DISTRIBUTION (4) (C) 443 27,770
Severance charges 19,712 --
------------ ------------
FUNDS AVAILABLE FOR DISTRIBUTION, EXCLUDING SEVERANCE CHARGES (4) (D) $ 20,155 $ 27,770
============ ============
PER COMMON SHARE DATA - BASIC
Funds from operations per share or unit, as defined (A/F) $ 0.07 $ 0.72
Funds available for distribution per share or unit, as defined (4) (C/F) $ 0.01 $ 0.66
Funds from operations per share or unit, excluding severance charges (B/F) $ 0.54 $ 0.72
Funds available for distribution per share or unit, excluding severance charges (4) (D/F) $ 0.48 $ 0.66
Dividends declared (E) $ 0.45 $ 0.78
Weighted average shares outstanding 37,261,643 36,937,682
Weighted average shares and units outstanding (F) 42,049,315 41,994,047
PER COMMON SHARE DATA - DILUTED
Funds from operations per share or unit (A/G=W) $ 0.07 $ 0.72
Funds available for distribution per share or unit (4) (C/G=X) $ 0.01 $ 0.66
Funds from operations per share or unit, excluding severance charges (B/G=Y) $ 0.54 $ 0.72
Funds available for distribution per share or unit, excluding severance charges (4) (D/G=Z) $ 0.48 $ 0.66
Dividends declared (E) $ 0.45 $ 0.78
Weighted average shares outstanding 37,261,648 37,049,164
Weighted average shares and units outstanding (G) 42,049,320 42,105,529
- -----------------------------------------------------------------------------------------------------------------------------
DIVIDEND PAYOUT RATIO
Payout ratio - funds from operations, as defined (E/W) 642.9% 108.3%
Payout ratio - funds available for distribution, as defined (E/X) 4500.0% 118.2%
Payout ratio - funds from operations, excluding severance charges (E/Y) 83.3% 108.3%
Payout ratio - funds available for distribution, excluding severance charges (E/Z) 93.8% 118.2%
(1) For the three months ended March 31, 2003, the Company recognized net
gains of $7,981 ($7,072 net of minority interest), on the sale of one
community, containing 239 apartment units, reduced by losses of $1,107
($981 net of minority interest) resulting from losses on the sale of
certain land parcels and additional reserves to write-down to fair
value certain other land parcels previously classified as held for sale
at December 31, 2002. For the three months ended March 31, 2002, the
Company recorded write downs to fair market value of $7,652 ($6,731 net
of minority interest) relating to one community, containing 196 units,
and one commercial property designated as held for sale during the
period.
(2) Represents the minority interest in earnings of discontinued operations
for the periods presented.
(3) Depreciation on wholly-owned real estate assets is net of the minority
interest portion of depreciation in consolidated partnerships.
(4) Since the Company does not add back the depreciation of non-real estate
assets in its calculation of funds from operations, non-real estate
related capital expenditures of $208 and $279 for the three months
ended March 31, 2003 and 2002, respectively, are excluded from the
calculation of funds available for distribution.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 5
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POST PROPERTIES, INC.
SAME STORE OPERATING RESULTS
(Dollars in thousands, except per share or unit data)
(Unaudited)
SAME STORE OPERATING RESULTS
The Company defines fully stabilized or same store communities as those which
have reached stabilization prior to the beginning of the previous calendar year,
adjusted by communities sold and classified as held for sale. Same store net
operating income is a supplemental non-GAAP financial measure. See Table 1 on
page 17 for a reconciliation of same store net operating income to GAAP income
from continuing operations before equity in losses of unconsolidated entities,
gains on sales of property and minority interest. The operating performance of
the 67 communities containing 24,347 apartment units which were fully stabilized
as of January 1, 2002, is summarized as follows:
THREE MONTHS ENDED
MARCH 31,
--------------------------------------
2003 2002 % CHANGE
------- ------- ---------
Rental and other revenues $64,945 $68,105 (4.6)%
Property operating and maintenance expenses
(excluding depreciation and amortization) 23,154 23,214 (0.3)%
------- -------
Same store net operating income $41,791 $44,891 (6.9)%
======= =======
Capital expenditures (1)
Recurring:
Carpet $ 563 $ 499
Other 745 951
------- -------
Total recurring 1,308 1,450
Non-recurring 599 478
------- -------
Total capital expenditures (A) $ 1,907 $ 1,928 (1.1)%
======= =======
Total capital expenditures per unit (A/24,347 UNITS) $ 78 $ 79 (1.3)%
======= =======
Average monthly rental rate per unit (2) $ 956 $ 1,009 (5.3)%
======= =======
(1) See Table 3 on page 18 for a reconciliation of these segment components
of property capital expenditures to total recurring capital
expenditures and total non-recurring capital expenditures as presented
on the consolidated cash flow statements prepared under GAAP.
(2) Average monthly rental rate is defined as the average of the gross
actual rates for occupied units and the anticipated rental rates for
unoccupied units divided by total units.
SAME STORE OPERATING RESULTS BY MARKET - COMPARISON OF FIRST QUARTER OF 2003 TO
FIRST QUARTER 2002 (Increase (decrease) from same period in prior year)
AVERAGE
ECONOMIC
MARKET REVENUES (1) EXPENSES (1) NOI (1) OCCUPANCY
- ------ ------------ ------------- ---------- -----------
Atlanta (5.3)% 2.5 % (8.8)% 0.2 %
Dallas (4.3)% (6.5)% (2.7)% (0.3)%
Tampa (8.1)% (2.4)% (11.4)% (5.7)%
Other (2) (0.5)% 1.9)% (1.7)% 1.9)%
----------- ------------ --------- ----------
Total (4.6)% (0.3)% (6.9)% 0.0 %
=========== ============ ========= ==========
(1) See Table 2 on page 17 for a reconciliation of these components of same
store net operating income and Table 1 on page 16 for a reconciliation
of same store net operating income to GAAP income from continuing
operations before equity in losses of unconsolidated entities, gain on
sales of property and minority interest..
(2) Includes communities located in Orlando, FL; Washington, DC; Houston,
TX; Charlotte, NC; Nashville, TN and Phoenix, AZ.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 6
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SAME STORE OCCUPANCY BY MARKET
AVERAGE ECONOMIC
OCCUPANCY (1)
----------------------
THREE MONTHS ENDED
MARCH 31, PHYSICAL
APARTMENT % OF ---------------------- OCCUPANCY (2)
MARKET UNITS UNITS 2003 2002 MARCH 31, 2003
- ------- ------ ------- ------ ------ --------------
Atlanta 14,614 60.0% 90.3% 90.1% 91.8%
Dallas 5,183 21.3% 88.8% 89.1% 91.7%
Tampa 1,439 5.9% 90.2% 95.9% 93.0%
Other 3,111 12.8% 91.3% 89.4% 91.9%
------ ------- ------ ------ ------
Total 24,347 100.0% 90.1% 90.1% 91.9%
====== ======= ====== ====== ======
(1) Average economic occupancy is defined as gross potential rent less
vacancy losses, model expenses and bad debt expenses divided by gross
potential rent for the period, expressed as a percentage. The
calculation of average economic occupancy does not include a deduction
for concessions and employee discounts. Average economic occupancy,
including these amounts would have been 88.8% and 88.4% for the three
months ended March 31, 2003 and 2002, respectively. For the three
months ended March 31, 2003 and 2002, concessions were $734 and $1,092,
respectively, and employee discounts were $136 and $206, respectively.
(2) Physical occupancy is defined as the number of units occupied divided
by total apartment units, expressed as a percentage.
SAME STORE SEQUENTIAL COMPARISON
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2003 DECEMBER 31, 2002 % CHANGE
------------------ ------------------- ---------
Rental and other revenues $ 64,945 $ 65,631 (1.0)%
Property operating and maintenance expenses
(excluding depreciation and amortization) 23,154 22,293 3.9%
--------- ---------
Same store net operating income (1) $ 41,791 $ 43,338 (3.6)%
========= =========
Average economic occupancy 90.1% 90.9% (0.8)%
========= =========
Average monthly rental rate per unit $ 956 $ 966 (1.0)%
========= =========
SEQUENTIAL SAME STORE OPERATING RESULTS BY MARKET -
COMPARISON OF FIRST QUARTER OF 2003 TO FOURTH QUARTER 2002
(Increase (decrease) between periods)
AVERAGE
ECONOMIC
MARKET REVENUES (1) EXPENSES (1) NOI (1) OCCUPANCY
- --------------- -------------- --------------- ------------ -------------
Atlanta (1.5)% (1.6)% (1.5)% (1.1)%
Dallas (0.4)% 13.7 % (8.2)% (0.2)%
Tampa (1.4)% 5.7 % (5.4)% (1.1)%
Other (2) 0.2 % 10.5 % (4.7)% (0.5)%
----------- ------------- --------- ----------
Total (1.0)% 3.9 % (3.6)% (0.8)%
=========== ============ ========== ===========
(1) See Table 2 on page 17 for a reconciliation of these components of same
store net operating income and Table 1 on page 17 for a reconciliation
of same store net operating income to GAAP income from continuing
operations before equity in loses of unconsolidated entities, gains on
sale of property and minority interest.
(2) Includes communities located in Orlando, FL; Washington, DC; Houston,
TX; Charlotte, NC; Nashville, TN and Phoenix, AZ.
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 7
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POST PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share or unit data)
MARCH 31, DECEMBER 31,
2003 2002
----------- -----------
ASSETS
Real estate assets
Land $ 269,669 $ 273,058
Building and improvements 1,995,326 1,976,809
Furniture, fixtures and equipment 239,382 246,634
Construction in progress 86,388 92,945
Investments in and advances to unconsolidated real estate entities 163,933 182,285
Land held for future development 21,754 24,879
----------- -----------
2,776,452 2,796,610
Less: accumulated depreciation (448,341) (426,136)
Assets held for sale 46,201 73,061
----------- -----------
Total real estate assets 2,374,312 2,443,535
Cash and cash equivalents 3,811 6,390
Restricted cash 1,443 1,369
Deferred charges, net 15,195 15,584
Other assets 43,863 41,273
----------- -----------
Total assets $ 2,438,624 $ 2,508,151
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable 1,384,266 $ 1,414,555
Accrued interest payable 16,450 8,994
Dividend and distribution payable 19,392 33,252
Accounts payable and accrued expenses 62,065 49,124
Security deposits and prepaid rents 7,955 8,250
----------- -----------
Total liabilities 1,490,128 1,514,175
----------- -----------
Minority interest of preferred unitholders in Operating Partnership 70,000 70,000
----------- -----------
Minority interest of common unitholders in Operating Partnership 83,275 90,277
----------- -----------
Commitments and contingencies -- --
Shareholders' equity
Preferred stock, $.01 par value, 20,000,000 authorized:
8 1/2 % Series A Cumulative Redeemable Shares, liquidation preference $50 per share,
900,000 shares issued and outstanding at March 31, 2003 and December 31, 2002,
respectively 9 9
7 5/8 % Series B Cumulative Redeemable Shares, liquidation preference $25 per share,
2,000,000 shares issued and outstanding 20 20
7 5/8 % Series C Cumulative Redeemable Shares, liquidation preference $25 per share,
2,000,000 shares issued and outstanding 20 20
Common stock, $.01 par value, 100,000,000 authorized:
39,676,204 and 39,676,204 shares issued, 37,325,182 and 37,202,290 shares
outstanding at March 31, 2003 and December 31, 2002, respectively 396 396
Additional paid-in capital 897,643 940,122
Accumulated earnings -- --
Accumulated other comprehensive income (15,250) (14,822)
Deferred compensation (852) (639)
----------- -----------
881,986 925,106
Less common stock in treasury, at cost, 2,351,022 shares and 2,473,914
shares at March 31, 2003 and December 31, 2002, respectively (86,765) (91,407)
----------- -----------
Total shareholders' equity 795,221 833,699
----------- -----------
Total liabilities and shareholders' equity 2,438,624 $ 2,508,151
=========== ===========
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Copyright(C) 2003 Post Apartment Homes, LP All Rights Reserved 8
POST PROPERTIES, INC.
CONSOLIDATED DEBT SUMMARY
(Dollars in thousands, except per share or unit data)
(Unaudited)
SUMMARY OF OUTSTANDING DEBT AT MARCH 31, 2003
WEIGHTED AVERAGE RATE (1)
MARCH 31,
PERCENTAGE -------------------------
TYPE OF INDEBTEDNESS BALANCE OF TOTAL 2003 2002
---------- ---------- ------ ------
Unsecured fixed rate senior notes $ 708,000 51.14% 7.40% 7.48%
Secured tax exempt variable rate notes(2) 214,380 15.49% 1.70% 1.91%
Secured conventional fixed rate notes 295,147 21.32% 6.77% 7.12%
Lines of credit 166,739 12.05% 2.10% 2.61%
---------- ------ ------ ------
$1,384,266 100.00% 5.75% 5.72%
========== ====== ====== ======
PERCENTAGE
BALANCE OF TOTAL DEBT
---------- -------------
Total fixed rate debt $1,003,147 72.47%
Total variable rate debt 381,119 27.53%
---------- ------
Total debt $1,384,266 100.00%
========== ======
DEBT MATURITIES
WEIGHTED AVERAGE RATE
AGGREGATE DEBT MATURITIES BY YEAR (3) AMOUNT ON DEBT MATURITIES(1)
---------- ---------------------
Remainder of 2003 $ 103,149 7.24%
2004 27,094 7.04%
2005 204,402 7.83%
2006 79,732 6.98%
2007 112,178 7.16%
2008 and thereafter 690,972 5.36%
----------
$1,217,527
==========
DEBT STATISTICS
THREE MONTHS ENDED
MARCH 31,
--------------------
2003 2002
---- ----
Interest coverage ratio(4)(5) 2.7x 3.5x
Fixed charge coverage ratio(4)(6) 2.1x 2.6x
Total debt as a % of undepreciated real estate(7) 48.8% 47.7%
Total debt as a % of undepreciated real estate
(adjusted for joint venture partner's share of debt)(7) 47.1% 46.6%
(1) Weighted average rate includes credit enhancements and other fees,
where applicable. The weighted average rates for the three months ended
March 31, 2002 are based on the debt outstanding for that period.
(2) The Company has purchased interest rate cap arrangements that limit the
Company's exposure to increases in the base rate to 5.00 percent.
(3) Excludes outstanding balances on lines of credit of $166,739 maturing
in 2004.
(4) Calculated for the three months ended March 31, 2003 and 2002.
(5) Interest coverage ratio is defined as net income available for debt
service divided by interest expense. For purposes of this calculation,
net income available for debt service represents income from continuing
operations, before preferred or common minority interest, gains on
property sales, severance and asset impairment charges, interest
expense, depreciation and amortization. Net income available for debt
service was also adjusted for the Company's share of depreciation and
interest expense from unconsolidated entities and interest expense used
in the calculation was adjusted to include the Company's share of
interest expense from unconsolidated entities. The calculation of the
interest coverage ratio is a non-GAAP financial measure. A
reconciliation of net income available for debt service to income from
continuing operations and interest expense to consolidated interest
expense is included Table 5 on page 19.
(6) Fixed charge coverage ratio is defined as net income available for debt
service divided by interest expense plus dividends to preferred
shareholders and distributions to preferred unitholders. For purposes
of this calculation, net income available for debt service represents
earnings from continuing operations, before preferred or common
minority interest, gains on property sales, severance and asset
impairment charges, interest expense, depreciation and amortization.
Net income available for debt service was also adjusted for the
Company's share of depreciation and interest expense from
unconsolidated entities and interest expense used in the calculation
was adjusted to include the Company's share of interest expense from
unconsolidated entities. The calculation of the fixed coverage ratio is
a non-GAAP financial measure. A reconciliation of net income available
for debt service to income from continuing operations and fixed charges
to consolidated interest expense plus preferred dividends to
shareholders and preferred distributions to unitholders is included
Table 5 on page 19.
(7) At March 31, 2003, the Company has provided construction financing to
three unconsolidated development joint ventures with the New York State
Common Retirement Fund. 100% of this financing is included in the
Company's debt and its real estate assets. At March 31, 2003 and 2002,
the venture partner's share of the construction loans was $90,214 and
$61,563, respectively. A computation of the debt ratios is included
Table 5 on page 19.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 9
POST PROPERTIES, INC.
CONSOLIDATED DEBT SUMMARY (CONT.)
(Dollars in thousands, except per share or unit data)
(Unaudited)
FINANCIAL DEBT COVENANTS - SENIOR UNSECURED PUBLIC NOTES
ACTUAL RATIO AS
OF
COVENANT REQUIREMENT(1) MARCH 31, 2003
----------------------- --------------
Consolidated Debt to Total Assets cannot exceed 60% 48%
Secured Debt to Total Assets cannot exceed 40% 18%
Consolidated Income Available for Debt Service Charge must be at
least 1.50/1 2.71/1
Total Unencumbered Assets to Unsecured Debt must be at least 1.50/1 2.44/1
(1) A summary of the public debt covenant calculations and reconciliations
of the financial components used in the public debt covenant
calculations to the most comparable GAAP financial measures are
detailed below.
RATIO OF CONSOLIDATED DEBT TO TOTAL ASSETS
AS OF
MARCH 31, 2003
--------------
Consolidated debt, per balance sheet (A) $ 1,384,266
===========
Total assets, as defined (B) (Table A) $ 2,888,003
===========
Computed ratio (A/B) 48%
===========
Required ratio (cannot exceed) 60%
===========
RATIO OF SECURED DEBT TO TOTAL ASSETS
Secured conventional fixed rate notes $ 295,147
Secured tax exempt variable rate notes 214,380
-----------
Total secured debt (C) $ 509,527
===========
Computed ratio (C/B) 18%
===========
Required ratio (cannot exceed) 40%
===========
RATIO OF TOTAL UNENCUMBERED ASSETS TO UNSECURED DEBT
Consolidated debt, per balance sheet (A) $ 1,384,266
Total secured debt (C) (509,527)
-----------
Total unsecured debt (D) $ 874,739
===========
Total unencumbered assets, as defined (E) (Table A) $ 2,138,509
===========
Computed ratio (E/D) 2.44x
===========
Required minimum ratio 1.50x
===========
RATIO OF CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE TO ANNUAL DEBT
SERVICE CHARGE
Consolidated Income Available for Debt Service, as defined (F)
(Table B) $ 179,320
===========
Annual Debt Service Charge, as defined (G) (Table B) $ 66,244
===========
Computed ratio (F/G) 2.71x
===========
Required minimum ratio 1.50x
===========
Copyright (C) Post Apartment Homes, LP All Rights Reserved 10
POST PROPERTIES, INC.
CONSOLIDATED DEBT SUMMARY (CONT.)
(Dollars in thousands, except per share or unit data)
(Unaudited)
TABLE A
CALCULATION OF TOTAL ASSETS AND TOTAL UNENCUMBERED ASSETS FOR PUBLIC
DEBT COVENANT COMPUTATIONS
AS OF
MARCH 31, 2003
--------------
Total real estate assets $ 2,374,312
Add:
Accumulated depreciation 448,341
Accumulated depreciation - assets held for sale 16,336
Other tangible assets (cash, restricted cash,
other assets, exclusive of receivables) 49,014
-----------
Total assets for public debt covenant computations 2,888,003
Less:
Encumbered real estate assets (749,494)
-----------
Total unencumbered assets for public debt
covenant computations $ 2,138,509
===========
TABLE B
CALCULATION OF CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE AND
ANNUAL DEBT SERVICE CHARGE FOR PUBLIC DEBT COVENANT COMPUTATIONS (a)
THREE MONTHS
ENDED
CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE MARCH 31, 2003
--------------
Net loss $ (20,588)
Deduct:
Minority interests (1,615)
---------
Loss before minority interest (22,203)
Add:
Depreciation 22,728
Amortization of deferred financing costs 788
Severance charges 19,712
Asset impairment charge 14,118
Interest expense 16,561
Less:
Gains on property sales (before minority interest) (6,874)
---------
Consolidated income available for debt service $ 44,830
=========
Consolidated income available for debt service (annualized) $ 179,320
=========
ANNUAL DEBT SERVICE CHARGE
Consolidated interest expense $ 16,561
=========
Annual Debt Service Charge (interest expense annualized) $ 66,244
=========
(a) The actual calculation of these ratios requires the use of annual
trailing financial data. These computations reflect annualized first
quarter 2003 results for comparison and presentation purposes. The
computations using annual trailing financial data also reflect
compliance with the debt covenants.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 11
POST PROPERTIES, INC.
SUMMARY OF CONSTRUCTION AND
INITIAL LEASE-UP COMMUNITIES
ESTIMATED AMOUNT
CONSTRUCTION SPENT QUARTER OF QUARTER OF
NUMBER OF COST AS OF CONSTRUCTION FIRST UNITS
METROPOLITAN AREA UNITS ($ IN MILLIONS) 3/31/2003 START AVAILABLE
----------------- --------- --------------- --------- ------------ -----------
WHOLLY OWNED CONSTRUCTION/LEASE-UP
COMMUNITIES
NEW YORK CITY, NY
Post Toscana(TM) 199 $ 93 $ 85 1Q '02 1Q '03
--- ----- -----
SUBTOTAL WHOLLY-OWNED
CONSTRUCTION/LEASE-UP COMMUNITIES 199 $ 93 $ 85
--- ----- -----
CO-INVESTMENT CONSTRUCTION/LEASE-UP
COMMUNITIES
PASADENA, CA
Post Paseo Colorado (3) 391 $ 76 $ 75 2Q '00 1Q '02
WASHINGTON D.C
Post Massachusetts Avenue(TM)(3) 269 $ 73 $ 70 2Q '01 4Q '02
--- ----- -----
SUBTOTAL CO-INVESTMENT
CONSTRUCTION/LEASE-UP COMMUNITIES 660 $ 149 $ 145
--- ----- -----
CONSTRUCTION TOTALS 859 $ 242 $ 230
=== ===== =====
LESS PARTNERS' PORTION $ (97) $ (94)
----- -----
POST PROPERTIES' FUNDING COMMITMENT $ 145 $ 136
===== =====
WEIGHTED AVERAGE PROJECTED PROPERTY
NET OPERATING INCOME AS A % OF
TOTAL ESTIMATED CONSTRUCTION
COST(4) 7.5%
=====
ESTIMATED
QUARTER OF % %
STABILIZED LEASED OCCUPIED
METROPOLITAN AREA OCCUPANCY(1) 5/3/2003 5/3/2003
----------------- ------------ -------- --------
WHOLLY OWNED CONSTRUCTION/LEASE-UP
COMMUNITIES
NEW YORK CITY, NY
Post Toscana(TM) 2Q '04 26.1% 15.6%
SUBTOTAL WHOLLY-OWNED
CONSTRUCTION/LEASE-UP COMMUNITIES
CO-INVESTMENT CONSTRUCTION/LEASE-UP
COMMUNITIES
PASADENA, CA
Post Paseo Colorado (3) 2Q '03 88.0% 84.7%
WASHINGTON D.C
Post Massachusetts Avenue(TM)(3) 4Q '03 46.8% 36.1%
SUBTOTAL CO-INVESTMENT
CONSTRUCTION/LEASE-UP COMMUNITIES
CONSTRUCTION TOTALS
LESS PARTNERS' PORTION
POST PROPERTIES' FUNDING COMMITMENT
WEIGHTED AVERAGE PROJECTED PROPERTY
NET OPERATING INCOME AS A % OF
TOTAL ESTIMATED CONSTRUCTION
COST(4)
(1) The Company defines stabilized occupancy as the earlier to occur of (i)
the attainment of 95% physical occupancy on the first day of any month
or (ii) one year after completion of construction.
(2) These communities are being developed as a joint venture (Post equity
ownership is 35%).
(3) The calculation represents the aggregate projected unlevered property
net operating income to be earned by each community in its first year
of stabilized operations divided by aggregate estimated construction
costs of the communities. The Company uses property net operating
income as a management tool to measure the operating performance of its
communities.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 12
POST PROPERTIES, INC.
ASSET SALES SUMMARY
GROSS PROCEEDS GROSS
PROPERTY NAME/PERIOD LOCATION YEAR BUILT PER UNIT PROCEEDS
- -------------------- ----------------- -------------- -------------- --------
Q1 2002
Post Bay(R) Tampa, FL 1988 $ 58,013
Post Court(R)(FL) Clearwater, FL 1991 70,175
Post & Paddock (Industrial) Grand Prairie, TX 1986 (1) $ 41,900,000
Q2 2002
Post Village(R)(FL) Tampa, FL 1989-1991 $ 59,175
Post Commons(TM) Dallas, TX 1985 58,228
Post Residences(TM)(2) Dallas, TX 1986 91,327
Post Parkwood(R)(TX) Dallas, TX 1962-1970 73,958
Towne Crossing (Retail) Mesquite, TX 1985 (1) $100,725,000
Q3 2002
Post Ascension(R) Arlington, TX 1985-1995 $ 59,880 $ 10,000,000
Q4 2002
Post Fountains(TM) Orlando, FL 1988 $ 59,843 $ 30,400,000
------------
2002 YTD Total $183,025,000
============
Q1 2003
Post West Avenue(3) Austin, TX 2000 $ 126,360 $ 30,200,000(4)
============
Weighted Average Cap Rate - Apartment Assets 8.04%(5)
============
(1) Commercial property acquired in the Columbus Realty Trust merger.
(2) Includes approximately 14,000 square feet of retail space.
(3) Includes approximately 7,400 square feet of retail space.
(4) Excludes approximately $8.6 million in proceeds from the sale of land
in Tampa, FL and Austin, TX.
(5) Based on prior calendar year's net operating income after adjustments
for management fee (3.0%) and capital reserves ($300/unit).
Copyright (C) Post Apartment Homes, LP All Rights Reserved 13
POST PROPERTIES, INC.
CAPITALIZED COSTS SUMMARY
(Dollars in thousands, except per share or unit data)
(Unaudited)
The Company has a policy of capitalizing those expenditures relating to the
acquisition of new assets and the development and construction of new apartment
communities. In addition, the Company capitalizes expenditures that enhance the
value of existing assets and expenditures that substantially extend the life of
existing assets. All other expenditures necessary to maintain a community in
ordinary operating condition are expensed as incurred. Additionally, for new
development communities, carpet, vinyl and blind replacements are expensed as
incurred during the first five years (which corresponds to the estimated
depreciable life of these assets) after construction completion. Thereafter,
these replacements are capitalized. Further, the Company expenses as incurred
all interior and exterior painting of communities.
The Company capitalizes interest, real estate taxes, and certain internal
personnel and associated costs related to apartment communities under
development and construction. The internal personnel and associated costs are
capitalized to the projects under development based upon the effort identifiable
with such projects. The Company treats each unit in an apartment community
separately for cost accumulation, capitalization and expense recognition
purposes. Prior to the commencement of leasing activities, interest and other
construction costs are capitalized and are reflected on the balance sheet as
construction in progress. The Company ceases the capitalization of such costs as
the residential units in a community become substantially complete and available
for occupancy. This results in a proration of these costs between amounts that
are capitalized and expensed as the residential units in a development community
become available for occupancy. In addition, prior to the completion of units,
the Company expenses as incurred substantially all operating expenses (including
pre-opening marketing as well as property management and leasing personnel
expenses) of such communities.
A summary of community development improvements and other capitalized
expenditures for the three months ended March 31, 2003 and 2002 is detailed
below.
THREE MONTHS ENDED
MARCH 31,
------------------------
2003 2002
------- -------
NEW COMMUNITY DEVELOPMENT AND ACQUISITION ACTIVITY $14,112 $48,148
NON-RECURRING CAPITAL EXPENDITURES
Revenue generating additions and improvements (1) 89 327
Other community additions and improvements (2) 958 547
RECURRING CAPITAL EXPENDITURES
Carpet replacements and other community additions
and improvements (3) 1,462 1,879
Corporate additions and improvements 208 279
------- -------
$16,829 $51,180
======= =======
OTHER DATA
Capitalized interest $ 1,869 $ 4,433
======= =======
Capitalized personnel and associated costs (4) $ 600 $ 1,383
======= =======
(1) Represents expenditures for major renovations of communities, water
sub-metering equipment and other unit upgrade costs that enhance the
rental value of such units.
(2) Represents property improvement expenditures that generally occur less
frequently than on an annual basis.
(3) Represents property improvement expenditures of a type that are
expected to be incurred on an annual basis.
(4) Reflects personnel and associated costs capitalized to construction and
development activities.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 14
POST PROPERTIES, INC.
INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES
(Dollars in thousands, except per share or unit data)
(Unaudited)
The Company holds investments in four individual limited liability companies
(the "Property LLCs") with an institutional investor. Each Property LLC owns a
newly developed or under development apartment community. The Company holds a
35% equity interest in the Property LLCs. The initial estimated development
costs of the apartment communities of $217,000 is being funded through member
equity contributions proportionate to the members' ownership interests and
through construction financing provided by the Company. The Company accounts for
its investments in these Property LLCs using the equity method of accounting.
The excess of the Company's investment over its equity in the underlying net
assets of the Property LLCs was approximately $10,321 at March 31, 2003. This
excess investment is being amortized as a reduction to earnings on a
straight-line basis over the lives of the related assets. The Company provides
real estate services (development, construction and property management) to the
Property LLCs.
The operating results of the Company include its proportionate share of net
income (loss) from the investments in the Property LLCs. A summary of financial
information for the Property LLCs in the aggregate is as follows:
MARCH 31, DECEMBER 31,
2003 2002
--------- ------------
Real estate assets, net $199,078 $198,854
Cash and other 3,640 2,330
-------- --------
Total assets $202,718 $201,184
======== ========
Mortgage notes payable $ 16,977 $ --
Construction notes payable to Company (1) 138,791 160,294
Other liabilities 4,067 3,975
-------- --------
Total liabilities 159,835 164,269
Members' equity 42,883 36,915
-------- --------
Total liabilities and members' equity $202,718 $201,184
======== ========
Company's equity investment $ 25,142 $ 21,991
======== ========
Company's share of construction notes
payable $ 54,519 $ 56,103
======== ========
THREE MONTHS ENDED
MARCH 31,
-------------------------
2003 2002
------- -------
REVENUE
Rental $ 3,246 $ 331
Other 139 72
------- -------
Total revenues 3,385 403
------- -------
EXPENSES
Property operating and maintenance 2,019 727
Depreciation 1,333 396
Interest 1,157 259
------- -------
Total expenses 4,509 1,382
------- -------
Net loss $(1,124) $ (979)
======= =======
Company's share of net loss $ (393) $ (343)
======= =======
(1) All of the Company's construction financing to these unconsolidated
real estate entities is included in the Company's outstanding debt and
real estate assets. At March 31, 2003 and December 31, 2002, the
venture partner's share of the construction loans was $90,214 and
$104,191, respectively.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 15
At March 31, 2003, all of the apartment communities had commenced rental
operations. The Company's share of the net losses from these investments is
included in the accompanying consolidated financial statements.
The Company has committed construction financing to three of the Property LLCs
totaling $144,402 ($138,791 funded at March 31, 2003). These loans earn interest
at LIBOR plus 1.75% and are secured by the apartment communities. The loans
mature on dates ranging from September 2003 to November 2004 and are expected to
be repaid from the proceeds of permanent project financings. In February 2003,
one of the Property LLCs repaid its outstanding construction note payable to the
Company of $24,071 through the proceeds from a third-party non-recourse
permanent mortgage note totaling $17,000 and from member equity contributions.
The mortgage note bears interest at 4.28%, requires monthly principal and
interest payments based on a 30-year amortization schedule and matures in March
2008.
As part of the development and construction services agreements entered into
between the Company and the Property LLCs, the Company guaranteed the maximum
total amount for certain construction cost categories subject to aggregate
limits (approximately $19,000). At March 31, 2003, the Company had substantially
completed three of the communities and had funded approximately $845 under the
guarantee provisions of the agreements. The amounts funded were accounted for as
part of the Company's investment in the Property LLCs. The Company's remaining
maximum exposure for the fourth Property LLC totals approximately $5,200. The
Company does not currently expect to be required to fund any guarantees relating
to this Property LLC. Additionally, under these agreements, the Company is
subject to project completion requirements, as defined. At March 31, 2003, the
Company had met and believes that it will meet the remaining completion date
requirements and not be subject to any additional costs.
Copyright (C) Post Apartment Homes, LP All Rights Reserved 16
POST PROPERTIES, INC.
RECONCILIATION OF SUPPLEMENTAL
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share or unit data)
(Unaudited)
TABLE 1
RECONCILIATION OF SAME STORE NET OPERATING INCOME (NOI) TO INCOME FROM
CONTINUING OPERATIONS BEFORE EQUITY IN LOSSES OF UNCONSOLIDATED ENTITIES, GAINS
ON PROPERTY SALES AND MINORITY INTEREST
(Dollars in thousands)
THREE MONTHS ENDED
----------------------------------------------
MARCH 31, MARCH 31, DECEMBER 31,
2003 2002 2002
--------- --------- ------------
Total same store NOI $ 41,791 $ 44,891 $ 43,338
Property NOI from other operating segments 6,356 4,040 6,849
-------- -------- --------
Consolidated property NOI 48,147 48,931 50,187
Add:
Interest income 234 405 286
Minority interest in consolidated property partnerships 334 483 576
Less:
Depreciation (22,728) (19,902) (23,451)
Interest (16,561) (13,144) (16,343)
Amortization of deferred loan costs (788) (555) (616)
General and administrative (3,624) (3,765) (3,451)
Other expenses (567) -- (694)
Severance charges (19,712) -- --
Asset impairment charge (14,118) -- --
-------- -------- --------
Income from continuing operations before equity in losses of
unconsolidated entities, gains on property sales and minority interest $(29,383) $ 12,453 $ 6,494
======== ======== ========
TABLE 2
SAME STORE NET OPERATING INCOME (NOI) SUMMARY BY MARKET
(Dollars in thousands)
THREE MONTHS ENDED
--------------------------------------------------------------------------
MARCH 31, MARCH 31, DECEMBER 31, 1Q03 VS 1Q02 1Q03 VS 4Q02
2003 2002 2002 % CHANGE % CHANGE
--------- --------- ------------ ------------ ------------
Rental and other revenues
Atlanta $38,040 $40,161 $38,632 (5.3)% (1.5)%
Dallas 13,824 14,443 13,875 (4.3)% (0.4)%
Tampa 4,308 4,687 4,368 (8.1)% (1.4)%
Other 8,773 8,814 8,756 (0.5)% 0.2%
------- ------- -------
Total rental and other revenues $64,945 $68,105 $65,631 (4.6)% (1.0)%
------- ------- -------
Property operating and maintenance
expenses
(exclusive of depreciation and
amortization)
Atlanta $12,716 $12,404 $12,919 2.5% (1.6)%
Dallas 5,627 6,015 4,950 (6.5)% 13.7%
Tampa 1,681 1,722 1,591 (2.4)% 5.7%
Other 3,130 3,073 2,833 1.9% 10.5%
------- ------- -------
Total $23,154 $23,214 $22,293 (0.3)% 3.9%
------- ------- -------
Net operating income
Atlanta $25,324 $27,757 $25,713 (8.8)% (1.5)%
Dallas 8,197 8,428 8,925 (2.7)% (8.2)%
Tampa 2,627 2,965 2,777 (11.4)% (5.4)%
Other 5,643 5,741 5,923 (1.7)% (4.7)%
------- ------- -------
Total same store NOI $41,791 $44,891 $43,338 (6.9)% (3.6)%
------- ------- -------
Copyright (C) Post Apartment Homes, LP All Rights Reserved 17
TABLE 3
RECONCILIATION OF SEGMENT CASH FLOW DATA TO STATEMENTS OF CASH FLOWS
(Dollars in thousands)
THREE MONTHS ENDED
MARCH 31,
--------------------
2003 2002
------ ------
Recurring capital expenditures by operating segment
Same store $1,308 $1,450
Partially stabilized 46 2
Construction and lease-up 10 5
Other segments 98 422
------ ------
Total recurring capital expenditures per statements of cash flows $1,462 $1,879
====== ======
Non-recurring capital expenditures by operating segment
Same store $ 599 $ 478
Partially stabilized 39 3
Construction and lease-up 4 1
Other segments 316 65
------ ------
Total non-recurring capital expenditures per statements of cash flows $ 958 $ 547
====== ======
TABLE 4
COMPUTATION OF INTEREST AND FIXED CHARGE COVERAGE RATIOS
(Dollars in thousands)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2003 2002
-------- --------
Income (loss) from continuing operations $(27,299) $ 21,442
Minority interest of common unitholders (3,877) 2,543
Minority interest of preferred unitholders 1,400 1,400
Gain on property sales -- (13,275)
Asset impairment charges 14,118 --
Depreciation expense 22,728 19,902
Depreciation (company share) of assets held in unconsolidated entities 466 138
Interest expense 16,561 13,144
Interest expense (company share) of assets held in unconsolidated entities 405 91
Amortization of deferred financing costs 788 555
Severance charges 19,712 --
-------- --------
Income available for debt service (A) $ 45,002 $ 45,940
======== ========
Interest expense $ 16,561 $ 13,144
Interest expense (company share) of assets held in unconsolidated entities 405 91
-------- --------
Interest expense for purposes of computation (B) 16,966 13,235
Dividends and distributions to preferred shareholders and unitholders 4,262 4,262
-------- --------
Fixed charges for purposes of computation (C) $ 21,228 $ 17,497
======== ========
Interest coverage ratio (A/B) 2.7 3.5
======== ========
Fixed charge coverage ratio (A/C) 2.1 2.6
======== ========
================================================================================
Copyright(C)2003 Post Apartment Homes, LP All Rights Reserved 18
TABLE 5
COMPUTATION OF DEBT RATIOS
(Dollars in thousands)
AS OF AS OF
MARCH 31, 2003 MARCH 31, 2002
-------------- --------------
Total real estate assets per balance sheet $ 2,374,312 $ 2,476,804
Plus:
Accumulated depreciation per balance sheet 448,341 389,136
Accumulated depreciation on assets held for sale (1) 16,336 24,942
----------- -----------
Total undepreciated real estate assets (A) 2,838,989 2,890,882
Less:
Advances to unconsolidated joint ventures equal to
joint venture partner's share of joint venture construction debt (90,214) (61,563)
Total undepreciated real estate assets ----------- -----------
(adjusted for joint venture partner's share of debt) (B) $ 2,748,775 $ 2,829,319
=========== ===========
Total debt per balance sheet (C) $ 1,384,266 $ 1,379,276
Less:
Joint venture partner's share of joint venture construction debt (90,214) (61,563)
----------- -----------
Total debt adjusted for joint venture partner's share (D) $ 1,294,052 $ 1,317,713
=========== ===========
Total debt as a % of undepreciated real estate assets (C/A) 48.8% 47.7%
=========== ===========
Total debt as a % of undepreciated real estate assets
(adjusted for joint venture partner's share of debt) (D/B) 47.1% 46.6%
=========== ===========
================================================================================
Copyright(C)2003 Post Apartment Homes, LP All Rights Reserved 19