1
EXHIBIT 99
POST PROPERTIES, INC.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share or unit data)
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
======================== =======================
1997 1996 1997 1996
========== ========== ========== ==========
OPERATING DATA
Revenue:
Rental - owned properties .............................. $ 58,138 $ 41,208 $ 186,126 $ 158,618
Property management - third party ...................... 725 640 2,421 2,828
Landscape services - third party ....................... 1,328 1,414 5,120 4,834
Interest ............................................... 59 37 89 326
Other .................................................. 1,672 1,036 6,360 4,969
-------- --------- --------- ---------
Total revenue .................................. 61,922 44,335 200,116 171,575
-------- --------- --------- ---------
Property operating and maintenance expenses - owned
properties ............................................ 20,153 14,663 67,519 58,202
Depreciation - real estate assets ......................... 9,094 6,003 27,991 22,676
Depreciation - non-real estate assets ..................... 299 217 1,057 927
Property management expenses - third party ................ 654 447 1,956 2,055
Landscape services expenses - third party ................. 1,167 1,054 4,284 3,917
Interest expense .......................................... 7,936 5,393 24,658 22,131
Amortization of deferred loan costs ....................... 233 327 980 1,352
General and administrative expenses ....................... 2,463 1,930 7,363 7,716
-------- --------- --------- ---------
41,999 30,034 135,808 118,976
-------- --------- --------- ---------
Net income before net gain(loss) on sale of assets, loss on
relocation of corporate office, minority
interest and extraordinary item ........................ 19,923 14,301 64,308 52,599
Net gain(loss) on sale of assets .......................... (242) 0 3,270 854
Loss on relocation of corporate office .................... (1,500) 0 (1,500) --
Minority interest of unitholders in Operating Partnership . (2,569) (2,542) (11,131) (9,984)
-------- --------- --------- ---------
Net income before extraordinary item ...................... 15,612 11,759 54,947 43,469
Extraordinary item, net of minority interest (1) .......... 0 0 (75) --
-------- --------- --------- ---------
Net income ................................................... 15,612 11,759 54,872 43,469
Dividends to preferred shareholders .......................... (1,720) (1,063) (4,907) (1,063)
======== ========= ========= =========
Net income available to common shareholders .................. $ 13,892 $ 10,696 $ 49,965 $ 42,406
======== ========= ========= =========
Funds from operations (2) ................................. $ 27,297 $ 19,241 $ 87,392 $ 74,212
======== ========= ========= =========
PER COMMON SHARE/UNIT DATA (3)
Net income before extraordinary item
(net of preferred dividend) - basic .................. $ 0.49 $ 0.49 $ 2.11 $ 1.95
======== ========= ========= =========
Net income available to common shareholders - basic ....... $ 0.49 $ 0.49 $ 2.11 $ 1.95
Net income available to common shareholders - diluted ..... $ 0.48 $ 0.48 $ 2.07 $ 1.94
======== ========= ========= =========
Dividends declared ........................................ $ 0.595 $ 0.540 $ 2.38 $ 2.16
======== ========= ========= =========
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DECEMBER 31
==============================
1997 1996
========== ===========
(Unaudited)
BALANCE SHEET DATA
Real estate, before accumulated depreciation ...... $1,936,011 $1,109,342
Real estate, after accumulated depreciation ....... 1,734,916 931,670
Total assets ...................................... 1,780,563 958,675
Total debt ........................................ 821,209 434,319
Shareholders' equity .............................. 756,920 398,993
KEY DEBT STATISTICS
Total secured debt ................................ 193,209 185,319
Total unsecured debt .............................. 628,000 249,000
Interest coverage ratio (4)(5) .................... 4.8 4.5
Fixed charge coverage ratio (4)(6) ................ 4.0 4.3
Total debt as a % of undepreciated real estate .... 42.4% 39.2%
NOTES TO SELECTED FINANCIAL INFORMATION
(1) - The extraordinary item for the twelve months ended December 31, 1997
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 became effective
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, 1997, there were 35,843,066 units of the Operating
Partnership outstanding, of which 30,626,592 were owned by the Company. The
weighted average shares and units outstanding for the three and twelve months
ended December 31, 1997 was 33,722,727 and 28,880,928, respectively.
(4) - Calculated for the twelve months ended December 31, 1997 and 1996.
(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 earnings before minority interest,
net gain(loss) on sale of assets, loss on relocation of corporate office,
dividends to preferred shareholders, interest, income taxes, depreciation and
amortization and extraordinary items.
(6) - Fixed charge coverage ratio is defined as net income available for debt
service divided by interest expense plus dividends to preferred shareholders.
For purposes of this calculation, net income available for debt service
represents earnings before minority interest, net gain(loss) on sale of assets,
loss on relocation of corporate office, dividends to preferred shareholders,
interest, income taxes, depreciation and amortization and extraordinary items.
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POST PROPERTIES, INC.
CALCULATION OF FFO AND CAD
(Dollars in thousands, except per share or unit data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
=============================== ===============================
1997 1996 1997 1996
============ ============ ============ ============
Net income available to common shareholders ......... $ 13,892 $ 10,696 $ 49,965 $ 42,406
Extraordinary item, net of minority interest ... 0 0 75 0
Minority Interest .............................. 2,569 2,542 11,131 9,984
Net (gain)/loss on sale of assets .............. 242 0 (3,270) (854)
Loss on relocation of corporate office ......... 1,500 0 1,500 0
------------ ------------ ------------ ------------
Adjusted net income ................................. 18,203 13,238 59,401 51,536
Depreciation - real estate assets ................... 9,094 6,003 27,991 22,676
------------ ------------ ------------ ------------
Funds from Operations ............................... 27,297 19,241 87,392 74,212
Recurring capital expenditures (1) .................. (744) (878) (3,675) (2,961)
Non-recurring capital expenditures .................. (72) (361) (605) (1,429)
Loan amortization payments .......................... (30) (68) (179) (228)
------------ ------------ ------------ ------------
Cash Available for Distribution ..................... $ 26,451 $ 17,934 $ 82,933 $ 69,594
============ ============ ============ ============
Revenue generating capital expenditures (2) ......... $ 3,393 $ 116 $ 8,168 $ 509
============ ============ ============ ============
Weighted average shares outstanding ................. 28,506,253 21,903,088 23,664,044 21,787,648
Weighted average shares and units outstanding ....... 33,722,727 27,103,557 28,880,928 26,917,723
===============================================================================================================================
PAYOUT RATIO
Payout ratio FFO .................................... 73.5% 76.1% 78.5% 78.3%
Payout ratio CAD .................................... 76.3% 81.8% 82.9% 83.4%
===============================================================================================================================
(1) - Since the Company does not add back the depreciation of non-real estate
assets in its calculation of FFO, capital expenditures of $2,035 and $3,221 for
the three and twelve months ended December 31, 1997, respectively, and $329 and
$820 for the three and twelve months ended December 31, 1996, respectively, are
excluded from the calculation of CAD.
(2) - Includes a major renovation of three communities in the amount of $2,396
and $5,532 for the three and twelve months ended December 31, 1997,
respectively, and one community in the amount of $116 and $509 for the three
and twelve months ended December 31, 1996, respectively, and water submetering
in the amount of $997 and $2,636 for the three and twelve months ended December
31, 1997, respectively.