1
POST PROPERTIES, INC.
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share or unit data)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
OPERATING DATA
Revenue:
Rental - owned properties $71,310 $43,857 $202,162 $127,988
Property management -
third party 792 604 2,309 1,696
Landscape services - third
party 1,765 1,327 4,945 3,792
Interest 83 15 387 30
Other 3,019 1,692 9,606 4,655
Total revenue 76,969 47,495 219,409 138,161
Property operating and
maintenance expenses - owned
properties 25,814 16,247 73,946 47,401
Depreciation - real estate
assets 11,498 6,333 33,307 18,897
Depreciation - non real estate
assets 467 262 939 758
Property management expenses -
third party 659 488 1,857 1,298
Landscape services expenses -
third party 1,571 1,068 4,372 3,086
Interest expense 7,795 5,652 23,488 16,722
Amortization of deferred loan
costs 318 195 876 747
General and administrative
expenses 1,869 1,467 5,701 4,867
Minority interest in
consolidated property
partnership 153 -- 351 --
50,144 31,712 144,837 93,776
Net income before loss on
unused treasury locks, net
gain on sale of assets,
minority interest and
extraordinary item 26,825 15,783 74,572 44,385
Net gain on sale of assets -- -- -- 3,512
Loss on unused treasury
locks (1) -- -- (1,944) --
Minority interest of
unitholders in Operating
Partnership (3,022) (2,811) (8,434) (8,562)
Net income before
extraordinary item 23,803 12,972 64,194 39,335
Extraordinary item, net of
minority interest (2) -- -- -- (75)
Net income 23,803 12,972 64,194 39,260
Dividends to preferred
shareholders (2,969) (1,062) (8,504) (3,187)
Net income available to
common shareholders $20,834 $11,910 $55,690 $36,073
Funds from operations (3) $35,354 $21,054 $99,375 $60,095
PER COMMON SHARE/UNIT DATA (4)
Net income before extraordinary
item (net of preferred
dividend) - basic $ 0.58 $ 0.54 $ 1.62 $ 1.64
Net income available to
common shareholders - basic $ 0.58 $ 0.54 $ 1.62 $ 1.64
Net income before extraordinary
item (net of preferred
dividend) - diluted $ 0.57 $ 0.53 $ 1.60 $ 1.63
Net income available to
common shareholders -
diluted $ 0.57 $ 0.53 $ 1.60 $ 1.62
Dividends declared $ 0.650 $ 0.595 $ 1.950 $ 1.785
2
EXHIBIT 99
September 30
1998 1997
BALANCE SHEET DATA
Real estate, before accumulated depreciation $2,167,761 $1,228,647
Real estate, after accumulated depreciation 1,932,729 1,037,015
Total assets 1,984,151 1,063,141
Total debt 787,328 510,637
Shareholders' equity 982,604 402,002
KEY DEBT STATISTICS
Total secured debt 279,328 168,637
Total unsecured debt 508,000 342,000
Interest coverage ratio (5)(6) 5.7 4.9
Fixed charge coverage ratio (5)(7) 4.2 4.1
Total debt as a % of undepreciated real estate 36.3% 41.6%
NOTES TO SELECTED FINANCIAL INFORMATION
(1) - The loss on unused treasury locks resulted from the termination of
treasury locks for debt securities that were not issued.
(2) - The extraordinary item for the nine months ended September 30, 1997
resulted from the costs associated with the early extinguishment
of indebtedness.
(3) - 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.
(4) - As of September 30, 1998, there were 41,257,619 units of the Operating
Partnership outstanding, of which 36, 041,895 were owned by the Company.
The weighted average shares and units outstanding for the three and
nine months ended September 30, 1998 was 41,222,891 and 39,567,512,
respectively.
(5) - Calculated for the nine months ended September 30, 1998 and 1997
(6) - 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, dividends to preferred shareholders, loss on treasury locks,
interest expense, income taxes, depreciation, amortization and
extraordinary items.
(7) - 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, dividends to
preferred shareholders, loss on treasury locks, interest expense, income
taxes, depreciation, amortization and extraordinary items.
3
POST PROPERTIES, INC.
CALCULATION OF FFO AND CAD
(Dollars in thousands, except per share or unit data)
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
Net income available to
common shareholders $20,834 $11,910 $55,690 $36,073
Extraordinary item,
net of minority interest --- --- --- 75
Minority Interest 3,022 2,811 8,434 8,562
Net (gain)/loss on sale
of assets --- --- --- (3,512)
Loss on unused treasury locks --- --- 1,944 ---
Adjusted net income 23,856 14,721 66,068 41,198
Depreciation - real estate
assets 11,498 6,333 33,307 18,897
Funds from Operations 35,354 21,054 99,375 60,095
Recurring capital
expenditures (1) (1,911) (1,028) (4,952) (2,932)
Non-recurring capital
expenditures (210) (41) (1,098) (534)
Loan amortization payments (19) (47) (55) (149)
Cash Available for
Distribution $33,214 $19,938 $93,270 $56,480
Revenue generating capital
expenditures (2) $4,052 $1,279 $11,842 $4,775
(1) - Since the company does not add back the depreciation of non-real estate
assets in its calculation of FFO, capital expenditures of $3,645 and $414
for the three months ended September 30, 1998 and 1997, respectively, and
$7,772 and $1,185 for the nine months ended September 30, 1998 and 1997,
respectively, are excluded for the calculation of CAD.
(2) - Includes a major renovation of communities in the amount of $4,038 and
$556 for the three months ended September 30, 1998 and 1997, respectively,
and $11,283 and $3,173 for the nine months ended September 30, 1998 and
1997, respectively, and water submetering in the amount of $14 and $723
for the three months ended September 30, 1998 and 1997, respectively, and
$559 and $1,638 for the nine months ended September 30, 1998 and 1997,
respectively.