1
EXHIBIT 99.1
POST APARTMENT HOMES, L.P.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share or unit data)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
=========================== ===========================
1996 1995 1996 1995
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OPERATING DATA
Revenue:
Rental - owned properties ................................... $ 41,099 $ 35,192 $ 157,735 $ 133,817
Property management - third party ........................... 640 811 2,828 2,764
Landscape services - third party ............................ 1,414 1,448 4,834 4,647
Interest .................................................... 37 273 326 593
Other ....................................................... 1,036 688 4,985 2,884
------------ ------------ ------------ ------------
Total revenue ....................................... 44,226 38,412 170,708 144,705
------------ ------------ ------------ ------------
Property operating and maintenance expenses - owned
properties ................................................. 14,567 12,491 57,335 49,912
Depreciation - real estate assets .............................. 6,003 5,024 22,676 20,127
Depreciation - non-real estate assets .......................... 217 313 927 692
Property management expenses - third party ..................... 447 554 2,055 2,166
Landscape services expenses - third party ...................... 1,041 1,337 3,917 3,950
Interest expense ............................................... 5,393 5,359 22,131 22,698
Amortization of deferred loan costs, interest rate protection
agreement and deferred swap income, net ..................... 327 453 1,352 1,967
General and administrative expenses ............................ 1,930 1,700 7,716 6,071
Minority interest in consolidated property partnership ......... - - - 451
------------ ------------ ------------ ------------
29,925 27,231 118,109 108,034
------------ ------------ ------------ ------------
Income before gain on sale of assets and extraordinary
item ........................................................ 14,301 11,181 52,599 36,671
Net gain on sale of assets, net of related income taxes ........ - - 854 1,746
------------ ------------ ------------ ------------
Income before extraordinary item ............................... 14,301 11,181 53,453 38,417
Extraordinary item.............................................. - (94) - (1,120)
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Net income ........................................................ 14,301 11,087 53,453 37,297
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Distribution to preferred unitholder............................... 1,063 - 1,063 -
------------ ------------ ------------ ------------
Net income available to common unitholders......................... $ 13,238 $ 11,087 $ 52,390 $ 37,297
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Funds from operations (2) ...................................... $ 19,241 $ 16,205 $ 74,212 $ 56,798
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PER UNIT DATA (3)
Income before extraordinary item per common unit
(net of preferred distribution)............................ $ 0.49 $ 0.43 $ 1.95 $ 1.63
============ ============ ============ ============
Net income per common unit...................................... $ 0.49 $ 0.43 $ 1.95 $ 1.58
============ ============ ============ ============
Distributions per common unit................................... $ 0.54 $ 0.49 $ 2.16 $ 1.96
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2
DECEMBER 31,
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1996 1995
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BALANCE SHEET DATA
Real estate, before accumulated depreciation ........................... $ 1,109,342 $ 937,924
Real estate, after accumulated depreciation ............................ 931,670 781,100
Total assets ........................................................... 958,675 812,984
Total debt ............................................................. 434,319 349,719
Partners' equity ....................................................... 482,434 425,489
KEY DEBT STATISTICS
Total secured debt ..................................................... 185,319 203,719
Total unsecured debt ................................................... 249,000 146,000
Interest coverage ratio (4)(5) ......................................... 4.5 3.6
Fixed charge coverage ratio (4)(6) ..................................... 4.3 3.6
Total debt as a % of undepreciated real estate ......................... 39.2% 37.3%
NOTES TO SELECTED FINANCIAL INFORMATION
(1) - The extraordinary item for the three and twelve months ended December 31,
1995 resulted from the costs associated with the early extinguishment of
indebtedness.
(2) - The Company uses the National Association of Real Estate Investment Trust
("NAREIT") definition of Funds from Operations ("FFO"), which was adopted for
periods beginning after January 1, 1996. FFO for any period means the
consolidated net income of the Company and its subsidiaries for such period
excluding gains or losses from debt restructuring and sales of property, plus
depreciation of real estate assets, and after adjustment for unconsolidated
partnerships and joint ventures, all determined in accordance with generally
accepted accounting principles ("GAAP"). FFO presented herein is not necessarily
comparable to FFO presented by other real estate companies due to the fact that
not all real estate companies use the same definition. However, the Company's
FFO is comparable to the FFO of real estate companies that use the current
NAREIT definition. FFO should not be considered as an alternative to net income
(determined in accordance with GAAP) as an indicator of the Company's financial
performance or to cash flow from operating activities (determined in accordance
with GAAP) as a measure of the Company's liquidity, nor is it necessarily
indicative of sufficient cash flow to fund all of the Company's needs or ability
to service indebtedness or make distributions.
(3) - As of December 31, 1996, there were 27,145,386 units of the Operating
Partnership outstanding. The weighted average units outstanding for the three
and twelve month periods ended December 31, 1996 was 26,917,723.
(4) - Calculated for the twelve month periods ended December 31, 1996 and 1995.
(5) - Interest coverage ratio is defined as consolidated income available for
debt service divided by interest expense. For purposes of this calculation,
consolidated net income available for debt service represents earnings before
interest, income taxes, depreciation and amortization and extraordinary items.
(6) - Fixed charge coverage ratio is defined as consolidated income available
for debt service divided by the sum of interest expense and dividends to
the preferred unitholder. For purposes of this calculation, net income available
for debt service represents earnings before interest, income taxes, depreciation
and amortization and extraordinary items.
3
POST APARTMENT HOMES, L.P.
CALCULATION OF FFO AND CAD
(Dollars in thousands, except per unit data)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
============================ ============================
1996 1995 1996 1995
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NET INCOME AVAILABLE TO COMMON UNITHOLDERS ....................... $ 13,238 $ 11,087 $ 52,390 $ 37,297
Extraordinary item .......................................... - 94 - 1,120
Net gain on sale of assets, net of related income taxes ..... - - (854) (1,746)
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Adjusted net income .............................................. 13,238 11,181 51,536 36,671
Depreciation - real estate assets ................................ 6,003 5,024 22,676 20,127
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FUNDS FROM OPERATIONS ............................................ 19,241 16,205 74,212 56,798
Recurring capital expenditures (1) ............................... (877) (406) (2,961) (1,700)
Non-recurring capital expenditures ............................... (476) (183) (1,938) (1,287)
Loan amortization payments ....................................... (68) (51) (228) (199)
------------ ------------ ------------ ------------
CASH AVAILABLE FOR DISTRIBUTION .................................. $ 17,820 $ 15,565 $ 69,085 $ 53,612
============ ============ ============ ============
Cash flow provided by (used in):
Operating activities ........................................ $ 11,278 $ 9,067 $ 78,966 $ 57,362
Investing activities ........................................ $ (62,938) $ (10,707) $ (166,762) $ (114,531)
Financing activities ........................................ $ 15,747 $ 6,896 $ 79,021 $ 60,885
Weighted average units outstanding ............................... 27,103,557 25,836,406 26,917,723 23,541,639
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PAYOUT RATIO
Payout ratio FFO ................................................. 76.1% 77.8% 78.3% 81.3%
Payout ratio CAD ................................................. 81.8% 81.7% 84.0% 86.0%
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(1) - Since the Company does not add back the depreciation of non-real estate
assets in its calculation of FFO, capital expenditures of $329 and $508 are
excluded from the calculation of CAD for the three months ended December 31,
1996 and 1995, respectively, and capital expenditures of $820 and $1,267 are
excluded from the calculation of CAD for the twelve months ended December 31,
1996 and 1995, respectively.