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 first
column listed below. In this supplement, the company presents Net Operating
Income for the quarter ended June 30, 2003 for properties stabilized by the
beginning of the quarter ended June 30, 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 June 30, 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)
THREE MONTHS
ENDED AS
INCOME STATEMENT DATA JUNE 30, 2003 ADJUSTMENTS ADJUSTED
- --------------------- ------------- ----------- --------
Rental revenues $79,312 $(5,448) (1) $73,864
Other property revenues 3,155 (274) (1) 2,881
------- ------- -------
Total rental and other revenues (A) 82,467 (5,722) 76,745
Property operating & maintenance expenses
(excluding depreciation and amortization) (B) 34,611 (6,185) (1) 28,426
------- ------- -------
Property net operating income (2) (Table 1) (A-B) $47,856 $ 463 $48,319
======= ======= =======
Apartment units represented 28,917 (1,691) (3) 27,226
AS OF AS
OTHER ASSET DATA JUNE 30, 2003 ADJUSTMENTS ADJUSTED
- ---------------- ------------- ----------- ---------
Cash & equivalents $ 4,302 $ -- $ 4,302
Construction in progress 33,784 193,607 (4) 227,391
Land held for development or sale 24,299 10,705 (5) 35,004
Investments in and advances to unconsolidated real
estate entities (including construction loans
receivable) 100,356 (17,201)(6) 83,155
Other assets (7) 41,833 -- 41,833
Total assets of unconsolidated real estate entities(8) 132,248 (97,016)(8) 35,232
EXHIBIT 99.1
LIABILITY DATA
- --------------
Tax-exempt debt 214,380 -- 214,380
Other notes payable 1,045,546 -- 1,045,546
Other liabilities (9) 109,857 -- 109,857
Total liabilities of unconsolidated
real estate entities (10) 102,396 (66,557)(10) 35,839
OTHER DATA
- ----------
Liquidation value of preferred units $ 70,000 $ -- $ 70,000
Liquidation value of preferred shares $145,000 $ -- $145,000
Common units outstanding 4,430 -- 4,430
Common shares outstanding 37,657 -- 37,657
TABLE 1
RECONCILIATION OF PROPERTY NET OPERATING INCOME (NOI) TO INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE EQUITY IN INCOME (LOSSES) OF UNCONSOLIDATED
ENTITIES, GAINS ON PROPERTY SALES AND MINORITY INTEREST
(In thousands)
THREE MONTHS ENDED
JUNE 30, 2003
------------------
Consolidated property NOI $ 47,856
Add:
Interest income 251
Minority interest in consolidated property partnerships 348
Less:
Depreciation (22,476)
Interest (17,396)
Amortization of deferred loan costs (968)
General and administrative (3,342)
Severance charges (1,795)
Proxy and related cost (5,231)
--------
Income (loss) from continuing operations before equity in income (losses) of
unconsolidated entities, gains on property sales and minority interest $ (2,753)
========
EXHIBIT 99.1
(1) The adjustments reflect a reduction of rental revenues ($3,816) and
other property revenues ($109) and property operating and maintenance
expenses (excluding depreciation and amortization) ($1,880) from
properties that had not reached a stabilized occupancy of 95% by March
31, 2003 (Post Harbour Place(TM), Post Luminaria(TM) and Post
Toscana(TM)). The adjustments also include additions for the
company's 35% share of rental revenues ($290) and other property
revenues ($20) and property operating and maintenance expenses
(excluding depreciation and amortization) ($127) from Post
Biltmore(TM), a property accounted for on the equity method of
accounting. In addition, the adjustments reflect a reduction of
rental revenues ($1,922) and other revenues ($185) and property
operating and maintenance expenses (excluding depreciation and
amortization) ($1,608) 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
($2,824).
(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 March 31, 2003. A reconciliation of
NOI to income (loss) from continuing operations before equity in
income (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 March
31, 2003 (Post Harbour Place(TM), Post Luminaria(TM), Post
Toscana(TM), Post Peachtree(TM), Post Massachusetts Avenue(TM) -
1,512 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 amount required for the "As Adjusted"
amount to equal the aggregate cost investment in projects that had not
reached a stabilized occupancy of 95% as of March 31, 2003 (Post
Harbour Place(TM), Post Luminaria(TM), Post Toscana(TM)).
EXHIBIT 99.1
(5) The adjustment reflects land parcels included on the balance sheet as
a component of assets held for sale.
(6) The "As of June 30, 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
unconsolidated entities.
(7) These amounts consist of restricted cash and other assets, per the
company's balance sheet.
(8) The "As of June 30, 2003" amount represents total assets of
unconsolidated entities. The adjustment includes the additions to add
back the accumulated depreciation of such assets ($4,019) and a
reduction for the venture partner's 65% share of assets before
accumulated depreciation of Post Peachtree(TM) and Post Massachusetts
Avenue(TM) ($65,432). The adjustment also includes a reduction for all
of the undepreciated real estate assets of the company's Post
Biltmore(TM) project ($35,603) as that project reached stabilized
occupancy prior to March 31, 2003. 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 June 30, 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.