PPS Post Properties, Inc. (delisted)

Post Properties, Inc. (PPS),a real estate investment trust (REIT), recently increased its quarterly dividend per share from 22 cents to 25 cents. The new dividend is payable on July 13, 2012 to shareholders of record as of June 29, 2012.

At the end of first quarter 2012, Post Properties had cash and cash equivalents of $4.3 million. Post Propertieshas a strong balance sheet, which provides the financial flexibility to pursue accretive acquisitions and dividend payouts. This augurs well for its long-term growth. With the current financial strength, the company was able to increase the quarterly dividend by more than 13.0%.

During the first quarter of 2012, FFO (funds from operations) stood at $34.2 million or 64 cents per share, compared with $18.3 million or 37 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

At the end of first quarter 2012, the company had no outstanding borrowings and had letters of credit totaling $0.6 million under its combined $330 million unsecured lines of credit. The company also had available future borrowing capacity of $200 million under its unsecured bank term loan.

Headquartered in Atlanta, Georgia, Post Properties is a developer and operator of upscale multifamily communities. The company’s mission is to deliver superior satisfaction and value to its residents with a vision of being the first choice in quality multifamily living. The company focuses on developing and managing Post branded resort-style garden and high density urban apartments.

Post Properties currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Equity Residential (EQR) holds a Zacks #3 Rank, implying a short-term Hold rating.

 
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