EXHIBIT 99.1
SUPPLEMENTAL FINANCIAL AND OTHER DATA
This supplement provides adjustments to certain GAAP financial measures and Net
Operating Income, which is a supplemental non-GAAP financial measure, that the
company makes internally to calculate Net Asset Value ("NAV"). In addition, the
company believes that investors and analysts use similar measures in estimating
the company's NAV. These measures, as adjusted, are supplemental non-GAAP
financial measures. With the exception of Net Operating Income, the most
comparable GAAP measure for each of the non-GAAP measures presented below in the
"As Adjusted" column is the corresponding number presented in the "As of March
31, 2003" column. In this supplement, the company presents Net Operating Income
for the quarter ended March 31, 2003 for properties stabilized by the beginning
of the quarter ended March 31, 2003 so that a capitalization rate may be applied
and a value for the assets determined. Properties not stabilized by the
beginning of the quarter ended March 31, 2003 are presented at full
undepreciated cost. Other tangible assets are also presented, as well as total
liabilities and the liquidation value of preferred shares and units. The company
believes it is important to provide these measures to allow investors to easily
come to their own calculations of NAV. The company also believes that internal
and external NAV estimates are a useful benchmark of the value of the company's
assets over time and provide a useful measure for analyzing the company's
trading price on the New York Stock Exchange.
FINANCIAL DATA
(In thousands)
AS OF AS
INCOME STATEMENT DATA MARCH 31, 2003 ADJUSTMENTS ADJUSTED
- ------------------------------------------------------ -------------- ----------- ----------
Rental revenues $ 78,862 $ (2,880)(1) $ 75,982
Other property revenues 2,911 (190)(1) 2,721
---------- --------- ----------
Total rental and other revenues (A) 81,773 (3,070) 78,703
Property operating & maintenance expenses
(excluding depreciation and amortization) (B) 33,626 (5,478)(1) 28,148
---------- --------- ----------
Property net operating income (2) (Table 1) (A-B) $ 48,147 $ 2,408 $ 50,555
---------- --------- ----------
Apartment units represented 30,078 (2,082)(3) 27,996
OTHER ASSET DATA
- ------------------------------------------------------
Cash & equivalents $ 3,811 $ -- $ 3,811
Construction in progress 86,388 138,207(4) 224,595
Land held for development or sale 21,754 15,224(5) 36,978
Investments in and advances to unconsolidated real
estate entities (including construction loans
receivable) 163,933 (25,142)(6) 138,791
Other assets (7) 45,305 -- 45,305
Total assets of unconsolidated real estate entities (8) 202,718 (142,581)(8) 60,137
LIABILITY DATA
- ------------------------------------------------------
Tax-exempt debt 214,380 -- 214,380
Other notes payable 1,169,886 -- 1,169,886
Other liabilities (9) 105,862 -- 105,862
Total liabilities of unconsolidated
real estate entities (10) 159,835 (103,893)(10) 55,942
OTHER DATA
- ------------------------------------------------------
Liquidation value of preferred units $ 70,000 $ -- $ 70,000
Liquidation value of preferred shares $ 145,000 $ -- $ 145,000
Common units outstanding 4,732 -- 4,732
Common shares outstanding 37,325 -- 37,325
TABLE 1
RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI) TO INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE EQUITY IN LOSSES OF UNCONSOLIDATED ENTITIES, GAINS
ON PROPERTY SALES AND MINORITY INTEREST
(In thousands)
AS OF
MARCH 31, 2003
--------------
Consolidated property NOI $ 48,147
Add:
Interest income 234
Revenues from third party services
Less:
Depreciation (22,728)
Interest (16,561)
Amortization of deferred loan costs (788)
General and administrative (3,624)
Minority interest in consolidated property partnerships 334
Other expenses (567)
Severance charges (19,712)
Asset impairment charge (14,118)
--------
Income (loss) from continuing operations before equity in losses of
unconsolidated entities, gains on property sales and minority interest $(29,383)
--------
(1) The adjustments reflect a reduction of rental revenues ($3,331) and
other property revenues ($83) and property operating and maintenance
expenses (excluding depreciation and amortization) ($1,720) from
properties that had not reached a stabilized occupancy of 95% by
December 31, 2002 (Post Harbour Place(TM), Post Luminaria(TM) and Post
Toscana(TM)). The adjustments also include additions for the rental
revenues ($1,681) and other property revenues ($51) and operating and
maintenance expenses (excluding depreciation and amortization) ($578)
relating to Post Park(R), an asset classified as held for sale at March
31, 2003 and the company's 35% share of rental revenues ($280) and
other property revenues ($22) and property operating and maintenance
expenses (excluding depreciation and amortization) ($132) from Post
Biltmore(TM), a property accounted for on the equity method of
accounting. In addition, the adjustments reflect a reduction of rental
revenues ($1,510) and other revenues ($180) and property operating and
maintenance expenses (excluding depreciation and amortization) ($1,584)
relating to the company's corporate apartment business. Lastly, the
adjustment to property operating and maintenance expenses (excluding
depreciation and amortization) also includes a reduction for corporate
property management expenses ($2,884).
(2) Net Operating Income ("NOI") is a supplemental non-GAAP financial
measure. The company uses NOI as an operating measure. NOI is defined
as rental and other revenues from real estate operations less total
property and maintenance expenses from real estate operations
(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. This measure
is particularly useful, in the opinion of the company, in evaluating
the performance of geographic operations, Same Store groupings and
individual properties. Additionally, the company believes that NOI, as
defined, is a widely accepted measure of comparative operating
performance in the real estate investment community. The company
believes that the line on the Registrants' consolidated statement of
operations entitled "income (loss) from continuing operations before
equity in losses of unconsolidated entities, gains on property sales
and minority interest" is the most directly comparable GAAP measure to
NOI. The adjustment reflects the aggregate cost investment in projects
that had not reached a stabilized occupancy of 95% as of December 31,
2002. A reconciliation of NOI to income (loss) from continuing
operations before equity in losses of consolidated entities, gains on
property sales and minority interest is included with this supplement
(see Table 1).
(3) The adjustment reflects a reduction of total apartment units for
properties that had not reached a stabilized occupancy of 95% by
December 31, 2002 (Post Harbour Place(TM), Post Luminaria(TM), Post
Toscana(TM), Post Peachtree(TM), Post Paseo, Post Massachusetts
Avenue(TM) - 1,903 unit total reduction) and a reduction of 65% of the
276 units at Post Biltmore(TM) (179 unit reduction) to adjust the Post
Biltmore(TM) units to the company's 35% share of the units.
(4) The adjustment reflects the aggregate cost investment in projects that
had not reached a stabilized occupancy of 95% as of December 31, 2002.
(5) The adjustment reflects land parcels included on the balance sheet as a
component of assets held for sale.
(6) The "As of March 31, 2003" amount represents the company's investment
in and advances to unconsolidated entities. The adjustment reflects the
company's equity investments in unconsolidated entities. The "As
Adjusted" amount represents the construction loans receivable from the
venture partners.
(7) These amounts consist of restricted cash and other assets, per the
company's balance sheet.
(8) The "As of March 31, 2003" amount represents total assets of
unconsolidated entities. The adjustment includes the additions to add
back the accumulated depreciation of such assets ($3,801) and a
reduction for the venture partner's 65% share of assets before
accumulated depreciation of Post Paseo, Post Peachtree(TM) and Post
Massachusetts Avenue(TM) ($111,684). The adjustment also includes a
reduction for all of the undepreciated real estate assets of the
company's Post Biltmore(TM) project ($34,698) as that project reached
stabilized occupancy prior to December 31, 2002. The "As Adjusted"
amount represents the company's 35% share of undepreciated assets of
unconsolidated entities plus the company's 35% share of the cash and
other assets of its Post Biltmore(TM) property.
(9) These amounts consist of the sum of accrued interest payable, dividends
and distributions payable, accounts payable and accrued expenses and
security deposits and prepaid rents as reflected on the company's
balance sheet.
(10) The "As of March 31, 2003" amount represents total liabilities of
unconsolidated entities. The adjustment represents a reduction for the
venture partner's 65% share of liabilities of unconsolidated entities.
The "As Adjusted" amount represents the company's 35% share of
liabilities of unconsolidated entities.