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EXHIBIT 99.2
FIRST QUARTER 2005
Supplemental Financial Data
TABLE OF CONTENTS
Page
Consolidated Statements of Operations ............................................... 3
Calculation of Funds from Operations and Adjusted Funds From Operations ............. 5
Same Store Results .................................................................. 6
Consolidated Balance Sheets ......................................................... 8
Consolidated Debt Summary ........................................................... 9
Summary of Communities Under Construction ........................................... 12
Summary of Condominium Conversion Projects .......................................... 13
Community Acquisition and Disposition Summary ....................................... 14
Capitalized Costs Summary ........................................................... 15
Investments in Unconsolidated Real Estate Entities .................................. 16
Net Asset Value Supplemental Information ............................................ 17
Non-GAAP Financial Measures and Other Defined Terms ................................. 19
The projections and estimates given in this document and other written or oral
statements made by or on behalf of the Company may constitute "forward-looking
statements" within the meaning of the federal securities laws. All
forward-looking statements are subject to certain risks and uncertainties that
could cause actual events to differ materially from those projected. Management
believes that these forward-looking statements are reasonable; however, you
should not place undue reliance on such statements. These statements are based
on current expectations and speak only as of the date of such statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of future events, new information
or otherwise. The following are some of the factors that could cause the
Company's actual results to differ materially from the expected results
described in the Company's forward-looking statements: 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 or acquisition 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;
uncertainties associated with the Company's expansion into the condominium
conversion and for-sale housing business; 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
dated December 31, 2004 and may be discussed in subsequent filings with the SEC.
These risk factors are specifically incorporated by reference into this
document.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 2
POST PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share or unit data)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
--------------------------
2005 2004
--------- ----------
REVENUES
Rental .............................................................. $ 67,727 $ 64,952
Other property revenues ............................................. 3,782 3,658
Other ............................................................... 71 76
--------- ----------
Total revenues ..................................................... 71,580 68,686
--------- ----------
EXPENSES
Property operating and maintenance (exclusive of items shown
separately below) .................................................. 32,793 30,472
Depreciation ........................................................ 19,532 19,621
General and administrative (1) ...................................... 5,295 4,642
Development costs and other (2) ..................................... 1,097 535
--------- ----------
Total expenses ..................................................... 58,717 55,270
--------- ----------
OPERATING INCOME ...................................................... 12,863 13,416
Interest income ..................................................... 165 180
Interest expense .................................................... (15,679) (15,421)
Amortization of deferred financing costs ............................ (1,688) (1,116)
Equity in income of unconsolidated real estate entities ............. 147 216
Gain on sale of technology investment (3) ........................... 5,267 -
Minority interest in consolidated property partnerships ............. 113 183
Minority interest of preferred unitholders .......................... - (1,400)
Minority interest of common unitholders ............................. 42 599
--------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS ........................... 1,230 (3,343)
--------- ----------
DISCONTINUED OPERATIONS (4)
Income from discontinued operations, net of minority interest ....... 3,109 5,245
Gains on sales of real estate assets, net of minority interest ...... 337 1,509
--------- ----------
INCOME FROM DISCONTINUED OPERATIONS ................................ 3,446 6,754
--------- ----------
NET INCOME ............................................................ 4,676 3,411
Dividends to preferred shareholders ................................. (1,909) (2,597)
Redemption costs on preferred stock ................................. - (1,716)
--------- ----------
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS .................... $ 2,767 $ (902)
========= ==========
PER COMMON SHARE DATA - BASIC (5)
Loss from continuing operations (net of preferred dividends
and redemption costs) .............................................. $ (0.02) $ (0.19)
Income from discontinued operations ................................. 0.09 0.17
--------- ----------
Net income (loss) available to common shareholders .................. $ 0.07 $ (0.02)
========= ==========
Weighted average common shares outstanding - basic .................. 40,167 39,382
========= ==========
PER COMMON SHARE DATA - DILUTED (5)
Loss from continuing operations (net of preferred dividends
and redemption costs) .............................................. $ (0.02) $ (0.19)
Income from discontinued operations ................................. 0.09 0.17
--------- ----------
Net income (loss) available to common shareholders .................. $ 0.07 $ (0.02)
========= ==========
Weighted average common shares outstanding - diluted ................ 40,167 39,382
========= ==========
Dividends declared .................................................. $ 0.45 $ 0.45
========= ==========
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 3
POST PROPERTIES, INC.
NOTES TO CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per share or unit data)
(1) General and administrative expenses for the three months ended March 31,
2005 and 2004 include legal and other professional fees totaling $339 and
$187, respectively, related to shareholder litigation and, in 2004,
certain shareholder proxy proposals and other matters.
(2) Development costs and other expenses for the three months ended March 31,
2005 and 2004 include development personnel and associated costs not
allocable to development projects.
(3) In the three months ended March 31, 2005, the Company sold its investment
in Rent.com, a privately-held internet leasing company, and recognized a
gain of $5,267.
(4) Under SFAS No. 144, the operating results of real estate assets designated
as held for sale are included in discontinued operations for all periods
presented. Additionally, all subsequent gains or additional losses on the
sale of these assets are included in discontinued operations.
For the three months ended March 31, 2005, income from discontinued
operations included the results of operations of eight communities,
originally containing 3,308 units, classified as held for sale at March
31, 2005. Two of the communities, originally containing 261 units, held
for sale at March 31, 2005 are being converted into condominiums. For the
three months ended March 31, 2004, income from discontinued operations
included the results of operations of the communities classified as held
for sale at March 31, 2005 and eight communities sold in 2004 through
their sale dates.
The revenues and expenses of these communities for the three months ended
March 31, 2005 and 2004 were as follows:
THREE MONTHS ENDED
MARCH 31,
---------------------------
2005 2004
--------- ---------
REVENUES
Rental ..................................... $ 6,984 $ 14,305
Other property revenues .................... 632 1,216
--------- ---------
Total revenues ........................... 7,615 15,521
--------- ---------
EXPENSES
Property operating and maintenance
(exclusive of items shown separately
below) ................................... 3,260 6,607
Depreciation ............................... - 1,565
Interest ................................... 1,044 1,783
Minority interest in consolidated property
partnerships ............................. 14 (89)
--------- ---------
Total expenses ........................... 4,318 9,866
--------- ---------
INCOME FROM DISCONTINUED OPERATIONS
BEFORE MINORITY INTEREST .................. 3,298 5,655
Minority interest ......................... (189) (410)
--------- ---------
INCOME FROM DISCONTINUED OPERATIONS ........ $ 3,109 $ 5,245
========= =========
For the three months ended March 31, 2005, gains on sales of real estate
assets represents the net profits of $358 ($337 net of minority interest)
from condominium sales at the Company's condominium conversion
communities. A summary of revenues and costs and expenses of condominium
activities for the three months ended March 31, 2005 was as follows:
Condominium revenues, net ................... $ 3,296
Condominium costs and expenses .............. (2,938)
---------
Gains on condominium sales .................. $ 358
=========
For the three months ended March 31, 2004, the Company recognized gains
from discontinued operations of $1,627 ($1,509 net of minority interest)
from the sale of one community containing 398 units and certain land
parcels. These sales generated net proceeds of approximately $23,979, of
which approximately $21,700 was held by a third party intermediary at
March 31, 2004 under a qualified tax deferred exchange program.
(5) 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, 2005, there were 42,494 units of the
Operating Partnership outstanding, of which 40,069, or 94.3%, were owned
by the Company. For the three months ended March 31, 2005 and 2004, the
potential dilution from the Company's outstanding stock options of 219 and
55, respectively, were antidilutive to the continuing operations per share
calculation. As such, the amounts were excluded from weighted average
shares and units and the income (loss) per share calculations for the
three months ended March 31, 2005 and 2004.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 4
POST PROPERTIES, INC.
CALCULATION OF FUNDS FROM OPERATIONS
AND ADJUSTED FUNDS FROM OPERATIONS AVAILABLE
TO COMMON SHAREHOLDERS AND UNITHOLDERS
(In thousands, except per share or unit data)
(Unaudited)
A reconciliation of net income (loss) available to common shareholders to funds
from operations available to common shareholders and unitholders and adjusted
funds from operations available to common shareholders and unitholders is
provided below.
THREE MONTHS ENDED
MARCH 31,
-----------------------
2005 2004
--------- ---------
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS ................... $ 2,767 $ (902)
Minority interest of common unitholders - continuing operations .... (42) (599)
Minority interest in discontinued operations (1) ................... 210 528
Depreciation on wholly-owned real estate assets, net (2) ........... 18,749 20,039
Depreciation on real estate assets held in unconsolidated entities . 297 327
Gains on sales of real estate assets - discontinued operations ..... (358) (1,627)
Incremental gains on condominium sales ............................. 358 -
--------- ---------
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS AND
UNITHOLDERS, AS DEFINED (A) ........................................ 21,981 17,766
Gain on sale of technology investment .............................. (5,267) -
Redemption costs on preferred stock ................................ - 1,716
--------- ---------
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS AND
UNITHOLDERS, EXCLUDING CERTAIN ITEMS AND CHARGES (B) ............... $ 16,714 $ 19,482
========= =========
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS AND
UNITHOLDERS, AS DEFINED ............................................ $ 21,981 $ 17,766
Recurring capital expenditures ..................................... (1,958) (2,422)
Non-recurring capital expenditures ................................. (902) (1,244)
Straight-line adjustment for ground lease expenses ................. 317 -
--------- ---------
ADJUSTED FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS AND
UNITHOLDERS (3) (C) ................................................ 19,438 14,100
Gain on sale of technology investment .............................. (5,267) -
Redemption costs on preferred stock ................................ - 1,716
--------- ---------
ADJUSTED FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS AND
UNITHOLDERS, EXCLUDING CERTAIN ITEMS AND CHARGES (3) (D) ........... $ 14,171 $ 15,816
========= =========
PER COMMON SHARE DATA - BASIC
Funds from operations per share or unit, as defined (A/F) ............ $ 0.52 $ 0.42
Adjusted funds from operations per share or unit (3) (C/F) ........... $ 0.46 $ 0.33
Funds from operations per share or unit, excluding certain
items and charges (B/F) ........................................... $ 0.39 $ 0.46
Adjusted funds from operations per share or unit, excluding certain
items and charges (3) (D/F) ........................................ $ 0.33 $ 0.37
Dividends declared (E) ............................................... $ 0.45 $ 0.45
Weighted average shares outstanding .................................. 40,167 39,382
Weighted average shares and units outstanding (F) .................... 42,614 42,461
PER COMMON SHARE DATA - DILUTED
Funds from operations per share or unit, as defined (A/G) ............ $ 0.51 $ 0.42
Adjusted funds from operations per share or unit (3) (C/G) ........... $ 0.45 $ 0.33
Funds from operations per share or unit, excluding certain
items and charges (B/G) ............................................ $ 0.39 $ 0.46
Adjusted funds from operations per share or unit, excluding certain
items and charges (3) (D/G) ........................................ $ 0.33 $ 0.37
Dividends declared (E) ............................................... $ 0.45 $ 0.45
Weighted average shares outstanding (4) .............................. 40,386 39,437
Weighted average shares and units outstanding (4) (G) ................ 42,833 42,516
(1) Represents the minority interest in earnings and gains on sales of real
estate assets reported as discontinued operations for the periods
presented.
(2) Depreciation on wholly-owned real estate assets is net of the minority
interest portion of depreciation in consolidated entities.
(3) 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 $701 and $134 for the three months ended
March 31, 2005 and 2004, respectively, are excluded from the calculation
of adjusted funds from operations available to common shareholders.
(4) Diluted weighted average shares and units for the three months ended March
31, 2005 and 2004 include 219 and 55 shares and units, respectively, that
were antidilutive to all income (loss) per share computations under
generally accepted accounting principles.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 5
POST PROPERTIES, INC.
SAME STORE RESULTS
(In thousands, except per share or unit data)
(Unaudited)
SAME STORE 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 21 for a reconciliation of same store net operating income to GAAP net
income. The operating performance and capital expenditures of the 52 communities
containing 20,028 apartment units which were fully stabilized as of January 1,
2004, is summarized as follows:
THREE MONTHS ENDED
MARCH 31,
------------------------------------
2005 2004 % CHANGE
-------- --------- --------
Rental and other revenues .................................... $ 62,413 $ 61,863 0.9%
Property operating and maintenance expenses (excluding
depreciation and amortization) ............................. 24,844 (3) 23,960 3.7% (3)
-------- --------- -----
Same store net operating income ............................. $ 37,569 (3) $ 37,903 (0.9)% (3)
======== ========= =====
Capital expenditures (1)
Recurring
Carpet .................................................... $ 555 $ 596 (6.9)%
Other ..................................................... 1,020 1,173 (13.0)%
-------- ---------
Total recurring .......................................... 1,575 1,769 (11.0)%
Non-recurring .............................................. 618 1,144 (46.0)%
-------- ---------
Total capital expenditures (A) ............................ $ 2,193 $ 2,913 (24.7)%
======== =========
Total capital expenditures per unit (A/20,028 UNITS) ....... $ 109 $ 145 (24.8)%
======== =========
Average monthly rental rate per unit (2) ..................... $ 1,043 $ 1,035 0.8%
======== =========
(1) See Table 3 on page 23 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.
(3) Excluding the impact of straight-lining long-term ground lease expense of
approximately $317 for the three months ended March 31, 2005, the
aggregate expense change would have increased 2.4% and NOI would have been
comparable between periods.
SAME STORE OPERATING RESULTS BY MARKET - COMPARISON OF 2005 TO 2004
(Increase(decrease) from same period in prior year)
THREE MONTHS ENDED
MARCH 31, 2005
----------------------------------------------------
AVERAGE
ECONOMIC
MARKET REVENUES (1) EXPENSES (1) NOI (1) OCCUPANCY
- -------------- -------- -------- ----- ---------
Atlanta (0.1)% 2.9% (3) (1.9)% (3) (0.1)%
Dallas 0.1% 5.8% (4.2)% 1.3%
Tampa 4.8% (1.2)% 9.1% 2.9%
Washington, DC 4.5% 11.5% (3) 1.0% (3) 0.6%
Charlotte 0.4% 2.1% (0.5)% (1.6)%
Other (2) (0.3)% 3.4% (2.8)% 0.3%
---- ---- ---- ----
Total 0.9% 3.7% (3) (0.9)% (3) 0.5%
==== ==== ==== ====
(1) See Table 2 on page 22 for a reconciliation of these components of same
store net operating income and Table 1 on page 21 for a reconciliation of
same store net operating income to GAAP net income.
(2) Includes communities located in Orlando, FL; Houston, TX; Denver, CO and
New York, NY.
(3) Excluding the impact of straight-lining long-term ground lease expense of
approximately $145 in Atlanta and $172 in Washington, D.C. for the three
months ended March 31, 2005, the expense and NOI changes would have
increased/(decreased) 1.5% and (1.0)% for Atlanta, GA and 2.0% and 5.8%
for Washington, D.C., respectively. Excluding the impact of
straight-lining long-term ground lease expense of approximately $317 for
the three months ended March 31, 2005, the total aggregate expense change
would have increased 2.4% and NOI would have been comparable between
periods.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 6
SAME STORE OCCUPANCY BY MARKET
AVERAGE ECONOMIC
OCCUPANCY (1)
% OF NOI ------------------ PHYSICAL
------------------ THREE MONTHS ENDED OCCUPANCY (2)
THREE MONTHS ENDED MARCH 31, AT MARCH 31,
APARTMENT MARCH 31, ------------------ -------------
MARKET UNITS 2005 2005 2004 2005
- -------------- --------- ------------------ ---- ---- -------------
Atlanta 9,672 46.0% 92.6% 92.7% 94.3%
Dallas 3,939 16.2% 93.0% 91.7% 94.0%
Tampa 2,089 11.4% 97.4% 94.5% 98.2%
Washington, DC 1,204 9.6% 97.9% 97.3% 98.0%
Charlotte 1,065 5.6% 92.4% 94.0% 94.3%
Other 2,059 11.2% 91.4% 91.1% 94.5%
------ ----- ---- ---- ----
Total 20,028 100.0% 93.5% 93.0% 94.9%
====== ===== ==== ==== ====
(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 net concessions and
employee discounts. Average economic occupancy, including these amounts
would have been 92.9% and 92.7% for the three months ended March 31, 2005
and 2004, respectively. For the three months ended March 31, 2005 and
2004, net concessions were $270 and $57, respectively, and employee
discounts were $110 and $115, 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, 2005 DECEMBER 31, 2004 % CHANGE
------------------ ------------------ --------
Rental and other revenues ..................... $ 62,413 $ 62,125 0.5%
Property operating and maintenance expenses
(excluding depreciation and amortization) ... 24,844 (2) 23,494 5.7% (2)
---------- ----------
Same store net operating income (1) ........... $ 37,569 (2) $ 38,631 (2.7)% (2)
========== ==========
Average economic occupancy .................... 93.5% 93.2% 0.3%
========== ==========
Average monthly rental rate per unit .......... $ 1,043 $ 1,040 0.3%
========== ==========
(1) See Table 2 on page 22 for a reconciliation of these components of same
store net operating income and Table 1 on page 21 for a reconciliation of
same store net operating income to GAAP net income (loss).
(2) Excluding the impact of straight-lining long-term ground lease expense of
approximately $317 for the three months ended March 31, 2005, the
aggregate expense and NOI changes would have increased/(decreased) 4.4%
and (1.9)%, respectively.
SEQUENTIAL SAME STORE OPERATING RESULTS BY MARKET - COMPARISON OF FIRST QUARTER
OF 2005 TO FOURTH QUARTER 2004
(Increase (decrease) between periods)
AVERAGE
ECONOMIC
MARKET REVENUES (1) EXPENSES (1) NOI (1) OCCUPANCY
- -------------- -------- -------- ---- ---------
Atlanta (0.7)% 10.8% (3) (6.7)% (3) (0.4)%
Dallas 0.1% 2.1% (1.6)% (0.1)%
Tampa 2.2% (9.3)% 11.5% 0.8%
Washington, DC 1.6% 23.1% (3) (7.5)% (3) 0.2%
Charlotte 0.5% 1.5% - (0.5)%
Other (2) 3.2% 3.3% 3.1% 3.1%
---- ---- ---- ----
Total 0.5% 5.7% (3) (2.7)% (3) 0.3%
==== ==== ==== ====
(1) See Table 2 on page 21 for a reconciliation of these components of same
store net operating income and Table 1 on page 21 for a reconciliation of
same store net operating income to GAAP net income (loss).
(2) Includes communities located in Orlando, FL; Houston, TX; Denver, CO and
New York, NY.
(3) Excluding the impact of straight-lining long-term ground lease expense of
approximately $145 in Atlanta and $172 in Washington, D.C. for the three
months ended March 31, 2005, the expense and NOI changes would have
increased/(decreased) 9.3% and (5.9)% for Atlanta, GA and 12.7% and (3.1)%
for Washington, D.C., respectively. Excluding the impact of
straight-lining long-term ground lease expense of approximately $317 for
the three months ended March 31, 2005, the total aggregate expense and NOI
changes would have increased/(decreased) 4.4% and (1.9)%, respectively.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 7
POST PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share or unit data)
MARCH 31, DECEMBER 31,
2005 2004
----------- -----------
ASSETS
Real estate assets
Land .................................................................................. $ 263,766 $ 266,520
Building and improvements ............................................................. 1,792,120 1,887,514
Furniture, fixtures and equipment ..................................................... 204,538 214,954
Construction in progress .............................................................. 26,647 19,527
Land held for future development ...................................................... 24,268 18,910
----------- -----------
2,311,339 2,407,425
Less: accumulated depreciation ........................................................ (470,721) (498,367)
Assets held for sale, net of accumulated depreciation of $69,537 and
$26,332 at March 31, 2005 and December 31, 2004, respectively (1) .................... 133,160 68,661
----------- -----------
Total real estate assets ............................................................. 1,973,778 1,977,719
Investments in and advances to unconsolidated real estate entities ..................... 37,814 21,320
Cash and cash equivalents .............................................................. 2,935 123
Restricted cash ........................................................................ 5,246 1,844
Deferred charges, net .................................................................. 14,290 15,574
Other assets ........................................................................... 38,365 37,262
----------- -----------
Total assets ......................................................................... $ 2,072,428 $ 2,053,842
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable, including $81,560 and $34,060 of debt secured by assets
held for sale at March 31, 2005 and December 31, 2004, respectively ................... $ 1,161,240 $ 1,129,478
Accrued interest payable ............................................................... 12,147 7,677
Dividend and distribution payable ...................................................... 19,122 19,203
Accounts payable and accrued expenses .................................................. 56,803 58,837
Security deposits and prepaid rents .................................................... 10,691 7,236
----------- -----------
Total liabilities ..................................................................... 1,260,003 1,222,431
----------- -----------
Minority interest of common unitholders in Operating Partnership ....................... 41,147 43,341
----------- -----------
Shareholders' equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 900
shares issued and outstanding ........................................................ 9 9
7 5/8% Series B Cumulative Redeemable Shares, liquidation preference $25 per share,
2,000 shares issued and outstanding .................................................. 20 20
Common stock, $.01 par value, 100,000 authorized:
40,372 and 40,164 shares issued, 40,069 and 40,164 shares outstanding at March 31, 2005
and December 31, 2004, respectively .................................................. 403 401
Additional paid-in capital ............................................................. 780,956 775,221
Accumulated earnings ................................................................... 9,812 25,075
Accumulated other comprehensive income (loss) .......................................... (6,002) (8,668)
Deferred compensation .................................................................. (4,401) (3,988)
----------- -----------
780,797 788,070
Less common stock in treasury, at cost, 303 and 0 shares
at March 31, 2005 and December 31, 2004, respectively ................................. (9,519) -
----------- -----------
Total shareholders' equity ............................................................. 771,278 788,070
----------- -----------
Total liabilities and shareholders' equity ............................................. $ 2,072,428 $ 2,053,842
=========== ===========
(1) Two communities, originally containing 261 units, included in assets held
for sale at March 31, 2005 are being converted to condominiums through the
Company's taxable REIT subsidiaries.
Copyright (C) 2004 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, 2005
WEIGHTED AVERAGE RATE (1)
PERCENTAGE THREE MONTHS ENDED MARCH 31,
----------------------------
TYPE OF INDEBTEDNESS BALANCE OF TOTAL 2005 2004
- -------------------- ------------ ---------- ------- --------
Unsecured fixed rate senior notes ................... $ 472,043 40.65% 6.96% 7.43%
Secured tax exempt variable rate notes (2) .......... 110,055 9.48% 2.51% 1.59%
Secured conventional fixed rate notes ............... 370,502 31.90% 6.26% 6.50%
Lines of credit .................................... 208,640 17.97% 3.06% 1.96%
------------ ------ ---- ----
$ 1,161,240 100.00% 5.61% 5.90%
============ ====== ==== ====
PERCENTAGE
BALANCE OF TOTAL DEBT
------------ -------------
Total fixed rate debt ............................... $ 842,545 72.56%
Total variable rate debt ............................ 318,695 27.44%
------------ ------
Total debt ........................................ $ 1,161,240 100.00%
============ ======
DEBT MATURITIES
WEIGHTED AVERAGE RATE
AGGREGATE DEBT MATURITIES BY YEAR AMOUNT ON DEBT MATURITIES (1)
- --------------------------------- ------------ ----------------------
Remainder of 2005 ................................... $ 91,989 7.67%
2006 ................................................ 82,469 6.87%
2007 ................................................ 368,633 (3) 4.50%
2008 ................................................ 7,556 4.74%
2009................................................. 79,001 5.39%
2010 and thereafter ................................. 531,592 5.88%
------------
$ 1,161,240
============
DEBT STATISTICS
THREE MONTHS ENDED
MARCH 31,
-----------------------
2005 2004
------- ----
Interest coverage ratio (4)(5)................................... 2.1x (8) 2.2x
Fixed charge coverage ratio (4)(6)............................... 1.9x (8) 1.7x
Total debt as a % of undepreciated real estate assets (adjusted
for joint venture partner's share of debt) (7)................. 45.9% 46.9%
Total debt and preferred equity as % of undepreciated real
estate assets (adjusted for joint venture partner's share of
debt) (7) ..................................................... 49.6% 53.2%
(1) Weighted average rate includes credit enhancements and other fees, where
applicable. The weighted average rates for the three months ended March
31, 2004 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) Includes outstanding balances on line of credit of $208,640 maturing in
2007.
(4) Calculated for the three months ended March 31, 2005 and 2004.
(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 sales
of real estate and investment sales, 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 in Table 4 on page 24.
(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 sales of real estate and investment sales, 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 in
Table 4 on page 24.
(7) A computation of the debt ratios is included in Table 5 on page 25.
(8) The interest coverage and fixed charge coverage ratios, including
discontinued operations, for the three months ended March 31, 2005 would
be 2.2x and 2.0x, respectively.
Copyright (C) 2004 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
AS OF
COVENANT REQUIREMENT (1) MARCH 31, 2005
------------------------ --------------
Consolidated Debt to Total Assets cannot exceed 60% ................. 45%
Secured Debt to Total Assets cannot exceed 40% ...................... 18%
Total Unencumbered Assets to Unsecured Debt must be
at least 1.50/1 ................................................... 2.69x
Consolidated Income Available for Debt Service Charge
must be at least 1.50/1 ........................................... 2.24x
(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, 2005
--------------
Consolidated debt, per balance sheet (A) .............................. $ 1,161,240
===========
Total assets, as defined (B) (Table A) ................................ $ 2,598,396
===========
Computed ratio (A/B) .................................................. 45%
===========
Required ratio (cannot exceed) ........................................ 60%
===========
RATIO OF SECURED DEBT TO TOTAL ASSETS
Secured conventional fixed rate notes .................................. $ 370,502
Secured tax exempt variable rate notes ................................. 110,055
-----------
Total secured debt (C) ............................................. $ 480,557
===========
Computed ratio (C/B) .................................................. 18%
===========
Required ratio (cannot exceed) ........................................ 40%
===========
RATIO OF TOTAL UNENCUMBERED ASSETS TO UNSECURED DEBT
Consolidated debt, per balance sheet (A) ............................... $ 1,161,240
Total secured debt (C) ................................................. (480,557)
-----------
Total unsecured debt (D) ........................................... $ 680,683
===========
Total unencumbered assets, as defined (E) (Table A) ................... $ 1,827,938
===========
Computed ratio (E/D) .................................................. 2.69x
===========
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) $ 152,472
===========
Annual Debt Service Charge, as defined (G) (Table B) ................... $ 68,096
===========
Computed ratio (F/G) (2) .............................................. 2.24x
===========
Required minimum ratio ................................................ 1.50x
===========
Copyright (C) 2004 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, 2005
--------------
Total real estate assets ................................................................... $ 1,973,778
Add:
Investments in unconsolidated real estate entities ...................................... 37,814
Accumulated depreciation ................................................................ 470,721
Accumulated depreciation - assets held for sale ......................................... 69,537
Other tangible assets (cash, restricted cash, other assets, exclusive of receivables) ... 46,546
--------------
Total assets for public debt covenant computations ......................................... 2,598,396
Less:
Encumbered real estate assets ........................................................... 770,458
--------------
Total unencumbered assets for public debt covenant computations ............................ $ 1,827,938
==============
TABLE B
CALCULATION OF CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE AND ANNUAL DEBT
SERVICE CHARGE FOR PUBLIC DEBT COVENANT COMPUTATIONS (1)
THREE MONTHS ENDED
CONSOLIDATED INCOME AVAILABLE FOR DEBT SERVICE MARCH 31, 2005
- ---------------------------------------------- --------------
Net income ............................................................................... $ 4,676
Add:
Minority interests ................................................................... 168
--------------
Income before minority interest .......................................................... 4,844
Add:
Depreciation .......................................................................... 19,532
Depreciation (company share) of assets held in unconsolidated entities ................ 297
Depreciation on discontinued operations ............................................... -
Amortization of deferred financing costs .............................................. 1,688
Interest expense ...................................................................... 15,679
Interest expense (company share) of assets held in unconsolidated entities ............ 301
Interest expense of discontinued operations............................................ 1,044
Less:
Gain on sale of technology investment ................................................. (5,267)
--------------
Consolidated income available for debt service ........................................... $ 38,118
==============
Consolidated income available for debt service (annualized) .............................. $ 152,472
==============
ANNUAL DEBT SERVICE CHARGE
Consolidated interest expense ............................................................ $ 15,679
Interest expense (company share) of assets held in unconsolidated entities ............... 301
Interest expense of discontinued operations............................................... 1,044
--------------
$ 17,024
==============
Annual debt service charge (interest expense annualized) ................................. $ 68,096
==============
(1) The actual calculation of these ratios requires the use of annual trailing
financial data. These computations reflect annualized 2005 results for
comparison and presentation purposes. The computations using annual
trailing financial data also reflect compliance with the debt covenants.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 11
POST PROPERTIES, INC.
SUMMARY OF COMMUNITIES UNDER CONSTRUCTION
ESTIMATED AMOUNT ESTIMATED
CONSTRUCTION SPENT QUARTER OF QUARTER OF QUARTER OF
NUMBER COST AS OF CONSTRUCTION FIRST UNITS STABILIZED
METROPOLITAN AREA OF UNITS ($ IN MILLIONS) 03/31/2005 START AVAILABLE OCCUPANCY(1)
- ------------------------------------------- -------- --------------- ---------- ------------ ----------- ------------
CONSTRUCTION/LEASE-UP
COMMUNITIES
WASHINGTON D.C.
Post Carlyle(TM) - Apartment and
Condominiums (2) 350 $95 $27 4Q `04 2Q `06 2Q `07
--- --- ---
CONSTRUCTION/LEASE-UP COMMUNITIES 350 $95 $27
=== === ===
WEIGHTED AVERAGE PROJECTED PROPERTY NET
OPERATING INCOME AS A % OF TOTAL ESTIMATED
CONSTRUCTION COST - APARTMENTS (3) 7.0%
===
(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) The condominium component of the project, consisting of 145 units, is
being developed in a majority owned joint venture with a Washington D.C.
based developer.
(3) The calculation represents the aggregate projected unlevered property net
operating income to be earned by the apartment component of the community
in its first year of stabilized operations (after deducting a 3%
management fee and a $300 per unit capital reserve) divided by aggregate
estimated construction costs of the apartment community. The Company uses
property net operating income as a management tool to measure the
operating performance of its apartment communities.
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 12
POST PROPERTIES, INC.
SUMMARY OF CONDOMINIUM CONVERSION PROJECTS
(Dollars in thousands)
UNITS (3)
-------------------------------
AVAILABLE THREE MONTHS ENDED
FOR SALE MARCH 31, 2005
------------------ --------------------------
ESTIMATED AVERAGE PROJECT GROSS FFO
YEAR SALE TOTAL UNIT SQ. TRANSFER UNITS UNDER UNITS SALES INCREMENTAL
PROJECT LOCATION COMPLETED START DATE UNITS FT. (1) PRICE (2) TOTAL CLOSED CONTRACT AVAILABLE CLOSED PRICE GAIN ON SALE
- -------------- ----------- --------- ---------- ----- -------- --------- ----- ------ -------- --------- ------ ----- ------------
588(TM) Dallas, TX 2000 Q1 2005 127 1,470 $ 20,274 127 33 41 53 18 $3,506 $ 358
Hyde Park
Walk(TM) Tampa, FL 1997 Q2 2005 134 890 16,755 134 1 123 10 - - -
The Peachtree
Residences(TM)
(4) Atlanta, GA 2001 Q2 2005 121 1,340 30,190 121 - 10 111 - - -
--- -------- --- -- --- --- -- ------ -------
382 $ 67,219 382 34 174 174 18 $3,506 $ 358
=== ======== === == === === == ====== =======
(1) Average square footage information is based on approximate amounts and
individual unit sizes may vary.
(2) Transfer price for purposes of computing incremental gains on condominium
sales included in FFO reflects the greater of (1) the estimated fair value
at date which the project was acquired by the Company's taxable REIT
subsidiary (as supported by independently-prepared, third-party
appraisals) or (2) its net book value at that time.
(3) Unit status is as of April 25, 2005. There can be no assurance that
condominium units under contract will close.
(4) The Peachtree Residences(TM) is owned in an unconsolidated entity, where
the Company's equity ownership is 35%. Amounts shown, except for
incremental gains on condominium sales included in FFO represents gross
amounts at the unconsolidated entity level.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 13
POST PROPERTIES, INC.
COMMUNITY ACQUISITION AND DISPOSITION SUMMARY
GROSS AMOUNT GROSS
PROPERTY NAME/PERIOD LOCATION YEAR BUILT PER UNIT AMOUNT
- --------------------------- ---------------- ---------- --------------- ---------------
ACQUISITIONS
Q1 2004
None
Q2 2004
Post Tysons Corner(TM) Washington, D.C. 1990 $ 171,972 $ 85,814,000
Q3 2004
None
Q4 2004
None
------------
2004 YTD Total $ 85,814,000
============
Weighted Average Cap Rate -
Acquisitions - 2004 5.5%(1)
============
Q1 2005
None
DISPOSITIONS
Q1 2004
Post Townlake(R) Dallas, TX 1986-1987 $ 56,212 $ 22,372,000(2)
Q2 2004
Post Windhaven (TM) Dallas, TX 1991 $ 52,743
Post Mill(R) (4) Atlanta, GA 1985-1986
Post Canyon(R) (4) Atlanta, GA 1986
Post Chase(R) (4) Atlanta, GA 1987
Post Court(R) (4) Atlanta, GA 1988
Post Lane(R) (4) Atlanta, GA 1988
Post Lake(R) (4) Orlando, FL 1988 $ 65,409(4) $221,750,000
Q3 2004
None
Q4 2004
None
------------
2004 YTD Total $244,122,000
============
Weighted Average Cap Rate -
Dispositions - 2004 6.6%(3)
============
Q1 2005
None
(1) Based on projected first twelve-month net operating income after
adjustment for management fee (3.0%) and capital reserves ($300/unit).
Also assumes that the Company will initially spend up to $2 million to
improve the community for total capitalized costs of approximately $88
million.
(2) Excludes approximately $2.1 million in gross proceeds from the sale of
land in Dallas, TX and Tampa, FL.
(3) Based on trailing twelve-month net operating income after adjustments for
management fee (3.0%) and capital reserves ($300/unit), except for Post
Paseo Colorado, a recently completed development, which is based on
projected stabilized net operating income.
(4) The gross average amount per unit for these properties is $65,409.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 14
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 and 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, 2005 and 2004 is detailed
below.
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2005 2004
------------ ------------
NEW COMMUNITY DEVELOPMENT AND ACQUISITION ACTIVITY .................... $ 14,987 $ 293
NON-RECURRING CAPITAL EXPENDITURES
Revenue generating additions and improvements (1) .................... - 26
Other community additions and improvements (2) ....................... 902 1,244
RECURRING CAPITAL EXPENDITURES
Carpet replacements and other community additions and
improvements (3) .................................................... 1,958 2,422
Corporate additions and improvements ................................. 701 134
------------ ------------
$ 18,548 $ 4,119
============ ============
OTHER DATA
Capitalized interest ................................................. $ 367 $ 239
============ ============
Capitalized personnel and associated costs (4) ....................... $ 250 $ 249
============ ============
(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) 2005 Post Apartment Homes, LP All Rights Reserved 15
POST PROPERTIES, INC.
INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES
(Dollars in thousands, except per share or unit data)
(Unaudited)
At March 31, 2005, the Company holds investments in three individual limited
liability companies (the "Property LLCs") with an institutional investor. Each
Property LLC owns a single apartment community. In March 2005, one of the
Property LLCs elected to convert its apartment community, containing 121 units,
into for-sale condominiums. The Company holds a 35% equity interest in the
Property LLCs.
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 $6,540 at March
31, 2005. The excess investment related to Property LLCs holding apartment
communities is being amortized as a reduction to earnings on a straight-line
basis over the lives of the related assets. The excess investment related to the
Property LLC holding the condominium conversion asset will be recognized as
additional cost of sales as the underlying condominiums are sold. The Company
provides real estate services (development, construction and property
management) to the Property LLCs for which it earns fees.
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 was as follows:
MARCH 31, DECEMBER 31,
Balance Sheet Data 2005 2004
- --------------------------------------------------------------------- ------------ ------------
Real estate assets, net of accumulated depreciation of
$6,428 and $9,712, respectively ................................... $ 97,831 $ 124,072
Assets held for sale, net (1) ....................................... 25,845 -
Cash and other ...................................................... 2,599 2,797
------------ ------------
Total assets ........................................................ $ 126,275 $ 126,869
============ ============
Mortgage notes payable .............................................. $ 67,000 $ 83,468
Mortgage notes payable to Company ................................... 16,995 -
Other liabilities ................................................... 1,529 1,296
------------ ------------
Total liabilities ................................................... 85,524 84,764
Members' equity .................................................... 40,751 42,105
------------ ------------
Total liabilities and members' equity ............................... $ 126,275 $ 126,869
============ ============
Company's equity investment ......................................... $ 20,819 $ 21,320
============ ============
Company's share of notes payable .................................... $ 29,398 $ 29,214
============ ============
(1) Includes one community, containing 121 units, being converted into
condominiums through taxable REIT subsidiary.
THREE MONTHS ENDED
MARCH 31,
-----------------------------
Income Statement Data 2005 2004
- ----------------------------------------------------------------------- ------------ ------------
Revenue
Rental ............................................................. $ 2,640 $ 2,564
Other property revenues ............................................ 185 176
------------ ------------
Total revenues ..................................................... 2,825 2,740
------------ ------------
Expenses
Property operating and maintenance ................................. 910 903
Depreciation and amortization ...................................... 653 629
Interest ........................................................... 688 594
------------ ------------
Total expenses ..................................................... 2,251 2,126
------------ ------------
Income from continuing operations ..................................... 574 614
------------ ------------
Discontinued Operations
Loss from discontinued operations .................................. (117) (98)
Loss on early extinguishment of debt ............................... (273) -
------------ ------------
Loss from discontinued operations ..................................... (390) (98)
------------ ------------
Net income ............................................................ $ 184 $ 516
============ ============
Company's share of net income ......................................... $ 147 $ 216
============ ============
At March 31, 2005, mortgage notes payable include a $50,000 mortgage note that
bears interest at 4.13%, requires monthly interest payments and annual principal
payments of $1 through 2009. Thereafter, the note requires monthly principal and
interest payments based on a 25-year amortization schedule and matures in April
2034. The note is callable by the lender in May 2009 and on each successive
fifth year anniversary of the note thereafter. The note is prepayable without
penalty in May 2008. The additional mortgage note payable bears interest at a
rate of 4.04% and matures in 2008.
In March 2005, one of the Property LLCs elected to convert its apartment
community into for-sale condominiums. Subsequent to the decision to sell the
community through the condominium conversion process, the Property LLC prepaid
its third party mortgage note payable of $16,392 through secured borrowings from
the Company. The Property LLC incurred debt prepayment costs and expenses
associated with the write-off of unamortized deferred financing costs totaling
$273 in March 2005. The mortgage note payable to the Company has a fixed rate
component ($16,392) bearing interest at 4.28% and a variable rate component
bearing interest at LIBOR at 1.90%. This note is repayable from the proceeds of
condominium sales and matures in February 2008.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 16
POST PROPERTIES, INC.
NET ASSET VALUE SUPPLEMENTAL INFORMATION
(Dollars in thousands, except per share or unit data)
(Unaudited)
This supplemental financial and other data 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 the information below, the
Company presents Net Operating Income for the quarter ended March 31, 2005 for
properties stabilized by the beginning of the quarter ended March 31, 2005 so
that a capitalization rate may be applied and an approximate value for the
assets determined. Properties not stabilized by the beginning of the quarter
ended March 31, 2005 are presented at full undepreciated cost. Other tangible
assets are also presented, as well as total liabilities and the liquidation
value of preferred shares. The Company believes it is important to provide these
measures to allow investors to easily develop 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 MARCH 31, 2005 ADJUSTMENTS ADJUSTED
- ----------------------------------------------------- ------------------ ----------------- ------------
Rental revenues ..................................... $ 67,727 $ 5,001 (1) $ 72,728
Other property revenues ............................. 3,782 582 (1) 4,364
------------- ------------ ------------
Total rental and other revenues (A) ............ 71,509 5,583 77,092
Property operating & maintenance expenses
(excluding depreciation and amortization) (B) .... 32,793 (2,676) (1) 30,117
------------- ------------ ------------
Property net operating income (Table 1) (A-B) ....... $ 38,716 $ 8,259 $ 46,975
============= ============ ============
Apartment units represented ......................... 24,700 (736) (2) 23,964
AS OF AS
OTHER ASSET DATA MARCH 31, 2005 ADJUSTMENTS ADJUSTED
- ----------------------------------------------------- ------------------ ----------------- ------------
Cash & equivalents .................................. $ 2,935 $ - $ 2,935
Construction in progress ............................ 26,647 - 26,647
Land held for development or sale ................... 24,268 1,540 (3) 25,808
Assets held for sale ................................ 133,160 (95,281) (4) 37,879
Investments in and advances to unconsolidated real
estate entities (including mortgage loans
receivable) ...................................... 37,814 (20,819) (5) 16,995
Other assets (6)..................................... 43,611 - 43,611
Cash and other assets of unconsolidated real estate
entities ......................................... 2,599 (1,689) (7) 910
------------- ------------ ------------
$ 271,034 $ (116,249) $ 154,785
============= ============ ============
OTHER LIABILITY DATA
Tax-exempt debt ..................................... $ 110,055 $ - $ 110,055
Other notes payable ................................. 1,051,185 - 1,051,185
Other liabilities (8)................................ 98,763 (317) (8) 98,446
Total liabilities of unconsolidated
real estate entities (9) ......................... 85,524 (55,591) (9) 29,933
------------- ------------ ------------
$ 1,345,527 $ (55,908) $ 1,289,619
============= ============ ============
OTHER DATA
Liquidation value of preferred shares ............... 95,000 - 95,000
Common shares outstanding ........................... 40,069 - 40,069
Common units outstanding ............................ 2,425 - 2,425
(1) The adjustments include additions for the rental revenues ($6,080) and
other property revenues ($605) and property operating and maintenance
expenses (excluding depreciation and amortization) ($2,818) for held for
sale properties included in discontinued operations (exclusive of
condominium conversion properties) and for the Company's 35% share of
rental revenues ($924) and other property revenues ($65) and property
operating and maintenance expenses (excluding depreciation and
amortization) ($318) from Post Biltmore and Post Massachusetts Avenue
(properties accounted for on the equity method of accounting). In
addition, the adjustments reflect a reduction of rental revenues ($2,003)
and other revenues ($88) and property operating and maintenance expenses
(excluding depreciation and amortization) ($1,971) relating to the
Company's corporate apartment business. Lastly, the adjustment to
operating and maintenance expenses (excluding depreciation and
amortization) also includes a reduction for corporate property management
expenses ($3,524) and the impact of straight-lining long-term ground lease
expense ($317).
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 17
(2) The adjustment reflects a reduction for 382 units being converted into
condominiums and for 65% of the 545 units held in Post Biltmore and Post
Massachusetts Avenue (two unconsolidated entities) (a 354 unit reduction)
to adjust the units held in unconsolidated entities to the Company's 35%
share of the units.
(3) The adjustment reflects land parcels included on the balance sheet as a
component of assets held for sale.
(4) The "As Adjusted" amount represents the book value of the Company's
wholly-owned condo conversion assets (Post Block 588 and Post Walk at Hyde
Park) and its 35% share of the book value of the unconsolidated
condominium conversion asset (Post Peachtree).
(5) The "As of March 31, 2005" 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 a mortgage loan receivable from an unconsolidated
entity.
(6) These amounts consist of restricted cash and other assets, per the
Company's balance sheet.
(7) The "As of March 31, 2005" amount represents cash and other assets of
unconsolidated entities. The adjustment includes a reduction for the
venture partners' 65% share of cash and other assets ($1,689) of the
Company's projects held in unconsolidated entities. The "As Adjusted"
amount represents the Company's 35% share of the cash and other assets of
all of the unconsolidated entities.
(8) The "As of March 31, 2005" amount consists of the sum of accrued interest
payable, dividends and distributions payable, accounts payable and accrued
expenses and security deposits and prepaid rents as reflected on the
Company's balance sheet. The adjustment represents a reduction for the
non-cash liability associated with straight-line, long-term ground lease
expense.
(9) The "As of March 31, 2005" 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.
COMPUTATION OF IMPLIED PORTFOLIO CAPITALIZATION RATE
(In thousands)
THREE MONTHS ENDED
CALCULATION OF ADJUSTED PROPERTY NET OPERATING INCOME MARCH 31, 2005
- ----------------------------------------------------------------------- ------------------
Total rental and other revenues ....................................... $ 77,092 (a)
Property operating & maintenance expenses
(excluding depreciation and amortization) .......................... (30,117) (a)
-------------
Property net operating income ......................................... 46,975
Adjustments to property net operating income
Assumed property management fee (calculated at 3% of revenues) ...... (2,313)
Assumed property capital expenditure reserve ($300 per unit per year
based on 23,964 units) ............................................. (1,797)
-------------
Property net operating income, adjusted for assumed management fee and
assumed capital expenditures ....................................... $ 42,865
Property net operating income, adjusted for assumed management fee and
=============
assumed capital expenditures (annualized) (A) ...................... $ 171,460
=============
AS OF
CALCULATION OF IMPLIED MARKET VALUE OF COMPANY GROSS ASSETS MARCH 31, 2005
- ----------------------------------------------------------------------- ------------------
Implied market value of common shares and units ....................... $ 1,319,014 (b)
Other assets, as adjusted ............................................. (154,785) (a)
Other liabilities, as adjusted ........................................ 1,289,619 (a)
Preferred stock, at liquidation value ................................. 95,000 (a)
-------------
Implied market value of Company gross assets (B) ...................... $ 2,548,848
=============
IMPLIED PORTFOLIO CAPITALIZATION RATE, BASED ON COMPANY'S STOCK PRICE
AS OF MARCH 31, 2005 (A/B) ........................................... 6.7%
=============
(a) Represents amounts in the "as adjusted" column from the Financial Data table
reflected above.
(b) Calculated as follows:
Common shares and units outstanding at March 31, 2005 .................. 42,494
Per share market value of common stock at March 31, 2005 ............... $ 31.04
------------
Implied market value of common shares and units at March 31, 2005 ...... $ 1,319,014
============
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 18
POST PROPERTIES, INC.
NON-GAAP FINANCIAL MEASURES AND OTHER DEFINED TERMS
(Dollars in thousands, except per share or unit data)
(Unaudited)
DEFINITIONS OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES AND OTHER DEFINED TERMS
The Company uses certain non-GAAP financial measures and other defined terms in
this accompanying Supplemental Financial Data. These non-GAAP financial measures
include FFO, AFFO, net operating income, same store capital expenditures, FFO
and AFFO excluding certain accounting charges, certain debt statistics and
ratios and economic gains (losses) on property sales. The definitions of these
non-GAAP financial measures are summarized below. The Company believes that
these measures are helpful to investors in measuring financial performance
and/or liquidity and comparing such performance and/or liquidity to other REITs.
FUNDS FROM OPERATIONS - The Company uses FFO as an operating measure. The
Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to
mean net income (loss) available to common shareholders determined in
accordance with GAAP, excluding gains (losses) from extraordinary items
and sales of depreciable property, plus depreciation and amortization of
real estate assets, and after adjustment for unconsolidated partnerships
and joint ventures all determined on a consistent basis in accordance with
GAAP. FFO presented in the Company's press release and Supplemental
Financial Data is not necessarily comparable to FFO presented by other
real estate companies because not all real estate companies use the same
definition. The Company's FFO is comparable to the FFO of real estate
companies that use the current NAREIT definition.
Accounting for real estate assets using historical cost accounting under
GAAP assumes that the value of real estate assets diminishes predictably
over time. NAREIT stated in its April 2002 White Paper on Funds from
Operations that "since real estate asset values have historically risen or
fallen with market conditions, many industry investors have considered
presentations of operating results for real estate companies that use
historical cost accounting to be insufficient by themselves." As a result,
the concept of FFO was created by NAREIT for the REIT industry to provide
an alternate measure. Since the Company agrees with the concept of FFO and
appreciates the reasons surrounding its creation, the Company believes
that FFO is an important supplemental measure of operating performance. In
addition, since most equity REITs provide FFO information to the
investment community, the Company believes that FFO is a useful
supplemental measure for comparing the Company's results to those of other
equity REITs. The Company believes that the line on its consolidated
statement of operations entitled "net income available to common
shareholders" is the most directly comparable GAAP measure to FFO.
ADJUSTED FUNDS FROM OPERATIONS - The Company also uses adjusted funds from
operations ("AFFO") as an operating measure. AFFO is defined as FFO less
operating capital expenditures and after adjusting for the impact of
straight-line, long-term ground lease expense. The Company believes that
AFFO is an important supplemental measure of operating performance for an
equity REIT because it provides investors with an indication of the REIT's
ability to fund operating capital expenditures through earnings. In
addition, since most equity REITs provide AFFO information to the
investment community, the Company believes that AFFO is a useful
supplemental measure for comparing the Company to other equity REITs. The
Company believes that the line on its consolidated statement of operations
entitled "net income (loss) available to common shareholders" is the most
directly comparable GAAP measure to AFFO.
PROPERTY NET OPERATING INCOME - The Company uses property NOI, including
same store NOI and same store NOI by market, as an operating measure. NOI
is defined as rental and other revenues from real estate operations less
total property and maintenance expenses from real estate operations
(exclusive of depreciation and amortization). The Company believes that
NOI is an important supplemental measure of operating performance for a
REIT's operating real estate because it provides a measure of the core
operations, rather than factoring in depreciation and amortization,
financing costs and general and administrative expenses generally incurred
at the corporate level. This measure is particularly useful, in the
opinion of the Company, in evaluating the performance of geographic
operations, same store groupings and individual properties. Additionally,
the Company believes that NOI, as defined, is a widely accepted measure of
comparative operating performance in the real estate investment community.
The Company believes that the line on its consolidated statement of
operations entitled "net income" is the most directly comparable GAAP
measure to NOI.
SAME STORE CAPITAL EXPENDITURES - The Company uses same store recurring
and non-recurring capital expenditures as cash flow measures. Same store
recurring and non-recurring capital expenditures are supplemental non-GAAP
financial measures. The Company believes that same store recurring and
non-recurring capital expenditures are important indicators of the costs
incurred by the Company in maintaining its same store communities on an
ongoing basis. The corresponding GAAP measures include information with
respect to the Company's other operating segments consisting of
communities stabilized in the prior year, lease-up communities, sold
properties and commercial properties in addition to same store
information. Therefore, the Company believes that the Company's
presentation of same store recurring and non-recurring capital
expenditures is necessary to demonstrate same store replacement costs over
time. The Company believes that the most directly comparable GAAP measure
to same store recurring and non-recurring capital expenditures are the
lines on the Company's consolidated statements of cash flows entitled
"recurring capital expenditures" and "non-recurring capital expenditures."
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 19
FFO AND AFFO EXCLUDING CERTAIN CHARGES - The Company uses FFO and AFFO
excluding certain items and charges, such as preferred stock redemption
costs and gain on the sale of technology investment as operating measures.
The Company reports FFO and AFFO excluding certain items and charges as
alternative financial measures of core operating performance. The Company
believes FFO and AFFO before certain items and charges are informative
measures for comparing operating performance between periods and for
comparing operating performance to other companies that have not incurred
such items and charges. The Company further believes that items and charges
of the nature incurred in 2005 and 2004 are not necessarily repetitive in
nature and that it is therefore meaningful to compare operating performance
using alternative, non-GAAP measures. The Company adjusts FFO and AFFO for
preferred stock redemption costs, because this item results from financing
transactions that are not related to core business performance. The Company
further adjusts FFO and AFFO for gains on sales of technology investments
because this item is not expected to be repetitive over the long-term and
it is therefore meaningful to compute operating performance using adjusted,
non-GAAP measures. In addition to the foregoing, the Company believes the
investment and analyst communities desire to understand the meaningful
components of the Company's performance and that these non-GAAP measures
assist in providing such supplemental measures. The Company believes that
the most directly comparable GAAP financial measures to each of FFO and
AFFO, excluding certain items and charges, is the line on the Company's
consolidated statements of operations entitled "net income (loss) available
to common shareholders."
DEBT STATISTICS AND DEBT RATIOS - The Company uses a number of debt
statistics and ratios as supplemental measures of liquidity. The numerator
and/or the denominator of certain of these statistics and/or ratios
include non-GAAP financial measures that have been reconciled to the most
directly comparable GAAP financial measure. These debt statistics and
ratios include: (1) an interest coverage ratio; (2) a fixed charge
coverage ratio; (3) total debt as a percentage of undepreciated real
estate (adjusted for joint venture partner's share of debt); (4) total
debt plus preferred equity as a percentage of undepreciated real estate
(adjusted for joint venture partner's share of debt); (5) a ratio of
consolidated debt to total assets; (6) a ratio of secured debt to total
assets; (7) a ratio of total unencumbered assets to unsecured debt; and
(8) a ratio of consolidated income available to debt service to annual
debt service charge. A number of these debt statistics and ratios are
derived from covenants found in the Company's debt agreements, including,
among others, the Company's senior unsecured notes. In addition, the
Company presents these measures because the degree of leverage could
affect the Company's ability to obtain additional financing for working
capital, capital expenditures, acquisitions, development or other general
corporate purposes. The Company uses these measures internally as an
indicator of liquidity and the Company believes that these measures are
also utilized by the investment and analyst communities to better
understand the Company's liquidity.
ECONOMIC GAINS ON PROPERTY SALES - The Company uses economic gains losses
on property sales as a supplemental measure of operating performance.
Economic gains on property sales are defined as gains on property sales in
accordance with GAAP, before accumulated depreciation and any prior period
write-downs for asset impairment charges on such assets. The Company
believes economic gains on property sales is an important supplemental
measure to gains on property sales in accordance with GAAP because it
assists investors and analysts in understanding the relationship between
the cash proceeds from the sale of an asset and the cash invested in that
asset. The Company believes the line on its consolidated statement of
operations entitled "gains on sales of real estate assets - discontinued
operations" is the most directly comparable GAAP measure to economic gains
on property sales.
AVERAGE ECONOMIC OCCUPANCY - The Company uses average economic occupancy
as a statistical measure of operating performance. The Company defines
average economic occupancy as gross potential rent less vacancy losses,
model expenses and bad debt expenses divided by gross potential rent for
the period, expressed as a percentage.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 20
RECONCILIATIONS OF SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
TABLE 1
RECONCILIATION OF SAME STORE NET OPERATING INCOME (NOI) TO GAAP NET INCOME
(LOSS)
(Dollars in thousands)
THREE MONTHS ENDED
------------------------------------
MARCH 31, MARCH 31, DECEMBER 31,
2005 2004 2004
--------- --------- -----------
Total same store NOI .............................................. $ 37,569 $ 37,903 $ 38,631
Property NOI from other operating segments ........................ 1,147 235 990
-------- --------- -----------
Consolidated property NOI ......................................... 38,716 38,138 39,621
Add (subtract):
Other revenues ................................................. 71 76 64
Interest income ................................................ 165 180 177
Minority interest in consolidated property partnerships ........ 113 183 133
Depreciation ................................................... (19,532) (19,621) (19,790)
Interest expense ............................................... (15,679) (15,421) (16,006)
Amortization of deferred financing costs ....................... (1,688) (1,116) (1,030)
General and administrative ..................................... (5,295) (4,642) (5,139)
Development costs and other expenses ........................... (1,097) (535) (136)
Termination of debt remarketing agreement (interest expense) ... - - (10,615)
Loss on early extinguishment of indebtedness ................... - - (4,011)
Equity in income of unconsolidated entities .................... 147 216 241
Gain on sale of technology investment .......................... 5,267 - -
Minority interest of preferred unitholders ..................... - (1,400) -
Minority interest of common unitholders ........................ 42 599 1,139
-------- --------- -----------
Income (loss) from continuing operations ....................... 1,230 (3,343) (15,352)
Income (loss) from discontinued operations ..................... 3,446 6,754 845
-------- --------- -----------
Net income (loss) ................................................. $ 4,676 $ 3,411 $ (14,507)
======== ========= ===========
Copyright (C) 2004 Post Apartment Homes, LP All Rights Reserved 20
TABLE 2
SAME STORE NET OPERATING INCOME (NOI) SUMMARY BY MARKET
(Dollars in thousands)
THREE MONTHS ENDED,
----------------------------------- 1Q '05 VS 1Q '05 VS 1Q '05
MARCH 31, MARCH 31, DECEMBER 31, 1Q `04 4Q `04 % SAME STORE
2005 2004 2004 % CHANGE % CHANGE NOI
---------- ---------- ------------ --------- --------- ------------
Rental and other revenues
Atlanta ............................... $ 27,969 $ 27,992 $ 28,168 (0.1)% (0.7)%
Dallas ................................ 11,299 11,284 11,291 0.1% 0.1%
Tampa ................................. 7,120 6,796 6,965 4.8% 2.2%
Washington, DC ........................ 5,618 5,375 5,530 4.5% 1.6%
Charlotte ............................. 3,168 3,156 3,154 0.4% 0.4%
Other (1) ............................. 7,239 7,260 7,017 (0.3)% 3.2%
--------- --------- -----------
Total rental and other revenues..... 62,413 61,863 62,125 0.9% 0.5%
--------- --------- -----------
Property operating and maintenance
expenses (exclusive of depreciation
and amortization)
Atlanta (2) ........................... 10,693 10,390 9,653 2.9% 10.8%
Dallas ................................ 5,198 4,914 5,092 5.8% 2.1%
Tampa ................................. 2,820 2,855 3,109 (1.2)% (9.3)%
Washington, DC (2) .................... 2,026 1,817 1,646 11.5% 23.1%
Charlotte ............................. 1,063 1,041 1,048 2.1% 1.4%
Other (1) ............................. 3,044 2,943 2,946 3.4% 3.3%
--------- --------- -----------
Total .............................. 24,844 23,960 23,494 3.7% 5.7%
--------- --------- -----------
Net operating income
Atlanta (2) ........................... 17,276 17,602 18,515 (1.9)% (6.7)% 46.0%
Dallas ................................ 6,101 6,370 6,199 (4.2)% (1.6)% 16.2%
Tampa ................................. 4,300 3,941 3,856 9.1% 11.5% 11.4%
Washington, DC (2) .................... 3,592 3,558 3,884 1.0% (7.5)% 9.6%
Charlotte ............................. 2,105 2,115 2,106 (0.5)% - 5.6%
Other (1) ............................. 4,195 4,317 4,071 (2.8)% 3.1% 11.2%
--------- --------- ----------- -----
Total same store NOI ............... $ 37,569 $ 37,903 $ 38,631 (0.9)% (2.7)% 100.0%
========= ========= =========== =====
(1) Includes communities located in Orlando, FL, Houston, TX, Denver, CO and
New York, NY.
(2) Excluding the impact of straight-lining long-term ground lease expense of
$145 in Atlanta and $172 in Washington, D.C., property operating and
maintenance expenses (exclusive of depreciation and amortization) would
have increased (decreased) 1.5%, 2.0% and 2.4% in Atlanta, Washington,
D.C. and in total, respectively, in the first quarter of 2005, compared to
the first quarter of 2004, and 9.3%, 12.7% and 4.4% in Atlanta,
Washington, D.C. and in total, respectively, in the first quarter of 2005,
compared to the fourth quarter of 2004. Excluding the impact of
straight-lining long-term ground lease expense, NOI would have increased
(decreased) (1.0)%, 5.8% and 0.0% in Atlanta, Washington, D.C. and in
total, respectively, in the first quarter of 2005, compared to the first
quarter of 2004, and (5.9)%, (3.1)% and (1.9)% in Atlanta, Washington,
D.C. and in total, respectively, in the first quarter of 2005, compared to
the fourth quarter of 2004.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 22
TABLE 3
RECONCILIATION OF SEGMENT CASH FLOW DATA TO STATEMENTS OF CASH FLOWS
(Dollars in thousands)
THREE MONTHS ENDED
MARCH 31,
------------------
2005 2004
------- -------
Recurring capital expenditures by operating segment
Same store .............................................................. $ 1,575 $ 1,769
Partially stabilized .................................................... 4 7
Construction and lease-up ............................................... - -
Other segments .......................................................... 379 646
------- -------
Total recurring capital expenditures per statements of cash flows ....... $ 1,958 $ 2,422
======= =======
Non-recurring capital expenditures by operating segment
Same store .............................................................. $ 618 $ 1,144
Partially stabilized .................................................... - -
Construction and lease-up ............................................... - -
Other segments .......................................................... 284 100
------- -------
Total non-recurring capital expenditures per statements of cash flows ... $ 902 $ 1,244
======= =======
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 23
TABLE 4
COMPUTATION OF INTEREST AND FIXED CHARGE COVERAGE RATIOS
(Dollars in thousands)
THREE MONTHS ENDED
MARCH 31,
--------------------
2005 2004
-------- --------
Income (loss) from continuing operations ..................................... $ 1,230 $ (3,343)
Minority interest of common unitholders ...................................... (42) (599)
Minority interest of preferred unitholders ................................... - 1,400
Gain on sale of technology investment ........................................ (5,267) -
Depreciation expense ......................................................... 19,532 19,621
Depreciation (company share) of assets held in unconsolidated entities ....... 297 327
Interest expense ............................................................. 15,679 15,421
Interest expense (company share) of assets held in
unconsolidated entities .................................................... 301 271
Amortization of deferred financing costs ..................................... 1,688 1,116
-------- --------
Income available for debt service (A) ........................................ $ 33,418 $ 34,214
======== ========
Interest expense ............................................................. $ 15,679 $ 15,421
Interest expense (company share) of assets held in unconsolidated entities ... 301 271
-------- --------
Interest expense for purposes of computation (B) ............................. 15,980 15,692
Dividends and distributions to preferred shareholders and unitholders ........ 1,909 3,997
-------- --------
Fixed charges for purposes of computation (C) ................................ $ 17,889 $ 19,689
======== ========
Interest coverage ratio (A/B) (1) ............................................ 2.1x 2.2x
======== ========
Fixed charge coverage ratio (A/C) (1) ........................................ 1.9x 1.7x
======== ========
(1) The interest coverage and fixed charge coverage ratios, including
discontinued operations, for the three months ended March 31, 2005 would
be 2.2x and 2.0x, respectively.
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 24
TABLE 5
COMPUTATION OF DEBT RATIOS
(In thousands)
AS OF MARCH 31,
--------------------------
2005 2004
----------- -----------
Total real estate assets per balance sheet ...................................... $ 1,973,778 $ 2,050,422
Plus:
Company share of real estate assets held in unconsolidated entities ............. 43,287 44,329
Company share of accumulated depreciation - assets held in unconsolidated
entities........................................................................ 2,250 2,411
Accumulated depreciation per balance sheet ...................................... 470,721 453,077
Accumulated depreciation on assets held for sale ................................ 69,537 69,822
----------- -----------
Total undepreciated real estate assets (A) ...................................... $ 2,559,573 $ 2,620,061
=========== ===========
Total debt per balance sheet .................................................... $ 1,161,240 $ 1,198,629
Plus:
Company share of third party debt held in unconsolidated entities ............... 23,450 29,292
Less:
Joint venture partners' share of mortgage debt of the company ................... (11,047) -
----------- -----------
Total debt (adjusted for joint venture partners' share of debt) (B) ............. $ 1,173,643 $ 1,227,921
=========== ===========
Total debt as a % of undepreciated real estate assets (adjusted for joint
venture partners' share of debt) (B/A) ......................................... 45.9% 46.9%
=========== ===========
Total debt per balance sheet .................................................... $ 1,161,240 $ 1,198,629
Plus:
Company share of third party debt held in unconsolidated entities ............... 23,450 29,292
Preferred shares at liquidation value ........................................... 95,000 95,000
Preferred units at liquidation value ............................................ - 70,000
Less:
Joint venture partners' share of mortgage debt of the company ................... (11,047) -
----------- -----------
Total debt and preferred equity (adjusted for joint venture partner's
share of debt) (C) ............................................................. $ 1,268,643 $ 1,392,921
=========== ===========
Total debt and preferred equity as a % of undepreciated assets (adjusted for
joint venture partners' share of debt) (C/A) ................................... 49.6% 53.2%
=========== ===========
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 25
TABLE 6
CALCULATION OF COMPANY UNDEPRECIATED BOOK VALUE PER SHARE
(In thousands)
MARCH 31,
2005
-----------
Total shareholders' equity, per balance sheet ......................... $ 771,278
Plus:
Accumulated depreciation, per balance sheet ........................... 470,721
Accumulated depreciation - held for sale assets, per balance sheet .... 69,537
Minority interest of common unitholders in Operating Partnership,
per balance sheet ................................................... 41,147
Less:
Deferred charges, net, per balance sheet .............................. (14,290)
Preferred shares at liquidation value ................................. (95,000)
-----------
Total undepreciated book value (A)..................................... $ 1,243,393
===========
Total common shares and units (B) ..................................... 42,494
===========
Company undepreciated book value per share (A/B) ...................... $ 29.26
===========
Copyright (C) 2005 Post Apartment Homes, LP All Rights Reserved 26