UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): February 5, 2015
Post Properties, Inc.
Post Apartment Homes, L.P.
(Exact name of registrant as specified in its charter)
Georgia
Georgia
(State or other jurisdiction of incorporation)
1-12080
0-28226
(Commission File Number)
58-1550675
58-2053632
(IRS Employer Identification Number)
4401 Northside Parkway, Suite 800, Atlanta, Georgia 30327
(Address of
principal executive offices)
Registrants telephone number, including area code (404) 846-5000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On February 5, 2015, Post Properties, Inc. and Post Apartment Homes, L.P. (collectively referred to as the Registrants),
issued an Earnings Release and Supplemental Financial Data announcing their financial results for the quarterly period ended December 31, 2014. The Earnings Release and Supplemental Financial Data contain information about the Registrants
financial condition and results of operations for the quarterly period ended December 31, 2014. A copy of the Earnings Release is attached hereto as Exhibit 99.1 and is incorporated by reference herein in its entirety. A copy of the
Supplemental Financial Data is attached hereto as Exhibit 99.2 and is incorporated by reference herein in its entirety.
Item 9.01. Financial Statements and Exhibits.
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99.1 |
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Earnings Release |
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99.2 |
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Supplemental Financial Data |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 5, 2015
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POST PROPERTIES, INC. |
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By: |
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/s/ David P. Stockert |
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David P. Stockert |
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President and Chief Executive Officer |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
Dated: February 5, 2015
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POST APARTMENT HOMES, L.P. |
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By: |
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POST GP HOLDINGS, INC., |
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as General Partner |
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By: /s/ David P. Stockert |
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David P. Stockert |
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President and Chief Executive Officer |
EXHIBIT INDEX
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Exhibit Number |
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Description
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99.1 |
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Earnings Release |
99.2 |
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Supplemental Financial Data |
Exhibit 99.1
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Contact: |
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Chris Papa Post Properties, Inc. (404) 846-5028 |
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Post Properties Announces Fourth Quarter 2014 Earnings
Announces Development of Second Phase of Post South Lamar in Austin, Texas
Investor/Analyst Conference Call Scheduled for Friday, February 6, 2015 at 10:00 a.m. ET
ATLANTA, Thursday, February 5, 2015 Post Properties, Inc. (NYSE: PPS) announced today net income available to common
shareholders of $18.5 million, or $0.34 per diluted share, for the fourth quarter of 2014, compared to $42.8 million, or $0.79 per diluted share, for the fourth quarter of 2013.
Net income available to common shareholders for the year ended December 31, 2014, was $211.4 million, or $3.88 per diluted share,
compared to $106.8 million, or $1.96 per diluted share, for the year ended December 31, 2013.
Net income for the year
ended December 31, 2014, included gains on sales of apartment communities of $163.8 million, offset by losses on the extinguishment of indebtedness of $16.6 million, both net of noncontrolling interest. The Companys net income available
to common shareholders for the three months and year ended December 31, 2013 included a gain of $28.4 million on the sale of an apartment community.
Funds From Operations
The Company uses the National Association of Real
Estate Investment Trusts (NAREIT) definition of Funds from Operations (FFO) as an operating measure of the Companys financial performance. A reconciliation of FFO to GAAP net income is included in the financial data
(Table 1) accompanying this press release.
FFO for the fourth quarter of 2014 was $40.1 million, or $0.73 per diluted share,
compared to $36.4 million, or $0.67 per diluted share, for the fourth quarter of 2013. For the fourth quarter of 2014, Core FFO (excluding FFO from condominium activities) was $39.5 million, or $0.72 per diluted share, compared to $36.0 million, or
$0.66 per diluted share, for the fourth quarter of 2013.
FFO for the year ended December 31, 2014 was $133.1 million, or
$2.44 per diluted share, compared to $164.8 million, or $3.01 per diluted share, for the year ended December 31, 2013. For the year ended December 31, 2014, Core FFO (excluding FFO from condominium activities) was $130.9 million, or $2.40
per diluted share, compared to $136.8 million, or $2.50 per diluted share, for the year ended December 31, 2013.
FFO and
Core FFO included losses on extinguishment of indebtedness of $16.6 million, net of noncontrolling interest, or $0.30 per diluted share, for the year ended December 31, 2014.
Said Dave Stockert, the Companys CEO and President, 2014 was a terrific year for Post. We produced solid growth in revenue,
earnings and cash flow, created value in our development pipeline, and realized high prices for assets we sold. We made a strong balance sheet even stronger, creating capacity for future growth, installed an entirely new technology platform, raised
the dividend substantially and produced very attractive total returns to shareholders. Better still, the apartment market and our business are set up well for good results again in the coming year.
Same Store Community Data
Average economic occupancy at the Companys 48 same store communities, containing 17,714 apartment units, was 96.0% and 95.6% for the
fourth quarter of 2014 and 2013, respectively.
Total revenues for the same store communities increased 3.0% and total
operating expenses increased 2.2% during the fourth quarter of 2014, compared to the fourth quarter of 2013, producing a 3.4% increase in same store net operating income (NOI). The average monthly rental rate per unit increased 2.5%
during the fourth quarter of 2014, compared to the fourth quarter of 2013.
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On a sequential basis, total revenues for the same store communities decreased 0.8% and
total operating expenses decreased 4.3%, resulting in a 1.5% increase in same store NOI for the fourth quarter of 2014, compared to the third quarter of 2014. On a sequential basis, the average monthly rental rate per unit increased 0.3%. For the
fourth quarter of 2014, average economic occupancy at the same store communities was 96.0%, compared to 96.6% for the third quarter of 2014.
For the year ended December 31, 2014, average economic occupancy at the Companys same store communities was 96.1% compared to 95.7% for the year ended December 31, 2013.
Total revenues for the same store communities increased 2.7% and total operating expenses increased 4.2% for 2014, compared to 2013,
producing a 1.8% increase in same store NOI. The average monthly rental rate per unit increased 2.4% for 2014, compared to 2013.
Investment Activity
Development
Activity
The Company announced today the commencement of the development of the second phase at its Post South
Lamar apartment community located in Austin, Texas. Post South Lamar II is planned to consist of 344 luxury apartment units with an average unit size of approximately 734 square feet and 5,800 square feet of retail space. The second
phase is expected to have a total estimated development cost of approximately $65.6 million, and is expected to produce an estimated stabilized yield on cost of approximately 5.8%, calculated on current market rents and after a 3% management fee and
$300 per unit replacement reserve. The Company anticipates that first apartment unit deliveries will occur in the first quarter of 2017.
In the aggregate, the Company has 1,705 units in five apartment communities, and approximately 5,800 square feet of retail space, under development or in lease-up with a total estimated cost of $309.2
million, and a remaining funding requirement of $187.8 million. The Company believes it has adequate internal resources, as well as sufficient capacity on its unsecured lines of credit, to fund its development commitments.
Financing Activity
Line of Credit
and Term Loan Extension and Refinancing
On January 28, 2015, the Company closed the refinancing of its $300
million syndicated unsecured line of credit for an initial four-year term maturing in January 2019, with a one-year extension option. The refinancing reduced the current stated interest rate from London Interbank Offered Rate (LIBOR) plus 1.225%, to
LIBOR plus 1.05%. The current stated annual facility fee was also reduced from 0.225% to 0.20% of the aggregate loan commitments. The Company also closed the refinancing of its $30 million unsecured cash management line of credit including interest
rate, facility fees, and terms substantially consistent with the syndicated line of credit described above. The Company currently has no outstanding borrowings on its $330 million unsecured revolving lines of credit.
On that same date, the Company also closed the refinancing of its $300 million unsecured bank term loan facility which extends the
maturity date from January 2018 to January 2020. The refinanced term loan facility reduced the current stated interest rate from LIBOR plus 1.70% to LIBOR plus 1.15%. The Company maintains interest rate swap agreements that fix the variable interest
cost associated with this term loan facility through its prior maturity date in January 2018. The blended effective interest rate, after considering the impact of the interest rate swap arrangements, was reduced from 3.24% to 2.69% through January
2018, the termination date of the interest rate swap arrangements.
Leverage and Line of Credit Capacity
Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners share of
real estate assets and debt) was 31.4% at December 31, 2014.
As of January 30, 2015, the Company had cash and cash
equivalents of approximately $100 million. The Company had no outstanding borrowings and letters of credit totaling $0.1 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities until 2017.
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Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP
measures in the Companys financial statements are included in the financial data (Table 4) accompanying this press release.
At-the-Market Common Equity Activity
The Company has available an at-the-market (ATM) common equity program that provides for the sale of up to 4 million shares of common stock. As of December 31, 2014, and since its
inception, no shares have been issued under that program. Sales under this program are dependent upon a variety of factors, including, among others, market conditions, the trading price of the Companys common stock, the Companys
liquidity position and the potential use of proceeds.
Information Technology Systems Initiatives
The Company has completed the upgrade and replacement of its financial and property management information technology systems. As part of
this project, in addition to other system implementation costs capitalized, the Company was required to expense certain up-front implementation and training costs. These expensed system implementation costs totaled $0.1 million and $1.1 million for
the three months and year ended December 31, 2014, respectively.
2015 Outlook
The estimates and assumptions presented below are forward looking and are based on the Companys future view of its apartment markets
and of general economic conditions, as well as other risks outlined below under the caption Forward-Looking Statements. There can be no assurance that the Companys actual results will not differ materially from the estimates set
forth below. The Company assumes no obligation to update this guidance in the future.
Based on its current outlook, the
Company anticipates that FFO and AFFO per diluted share for the full year 2015 will be in the range set forth below. Adjusted Funds from Operations (AFFO) per share is defined as FFO per share less operating property capital expenditures
after adjusting for the impact of non-cash straight-line long-term ground lease expense and debt extinguishment losses.
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Current Outlook |
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FFO |
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AFFO |
Core FFO/AFFO |
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$2.85 - $2.95 |
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$2.39 - $2.51 |
NAREIT FFO/AFFO |
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$2.85 - $2.95 |
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$2.39 - $2.51 |
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Same Store Assumptions |
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Revenue |
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2.50% - 3.00% |
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Operating expenses |
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3.90% - 4.40% |
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Net operating income (NOI) |
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1.30% - 2.40% |
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The above estimates are also based on the following assumptions:
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Projected increase in same store operating expenses attributable, in large part, to an anticipated increase in property taxes which are forecasted
to rise roughly 6% in 2015, down from an 8% increase in 2014; |
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Projected net operating income from newly stabilized properties and lease up properties, net of operating deficits, expected to contribute
approximately $0.08 per diluted share at the mid-point of the estimated range of Core FFO; |
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Projected decrease in NOI attributable to apartment communities in New York and Houston sold in 2014, expected to be offset by a roughly equivalent
reduction in interest expense attributable to the early retirement of indebtedness in 2014, as well as the refinancing of the Companys unsecured term loan and revolving credit facilities in January 2015; |
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Projected increase in annually recurring and periodically recurring capital expenditures of approximately $3.0 million in 2015, as compared to 2014,
at the mid-point of the estimated range of Core AFFO; |
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Projected increase in revenue-generating capital expenditures of roughly $2.5 million in 2015, as compared to 2014; |
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In the aggregate, projected 3.4% - 3.8% increase in general and administrative expenses, corporate property management expenses, and investment and
development expenses (before amounts capitalized to development projects), driven, in large part, by increases in long-term incentive compensation and increased SaaS and information technology costs relating to the newly implemented financial
systems, offset by lower legal and professional fees; |
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Projected increase in capitalized interest and development overhead costs, expected to cause Core FFO to increase by approximately $0.06 per diluted
share at the mid-point of the estimated range; |
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Projected decrease in Severance, impairment and other expenses, as those costs incurred in 2014 are not forecasted to recur in 2015;
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Projected development expenditures of approximately $115 million to $125 million, including up to roughly $175 million of planned development starts
forecasted in 2015 (in addition to the start of the second phase of Post South Lamar discussed above), currently expected to be funded in 2015 with available cash and operating cash flow; |
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Projected non-cash debt extinguishment loss of approximately $0.2 million, or less than $0.01 per diluted share, in connection with the refinancing
of the Companys credit facilities in the first quarter of 2015; |
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Projected weighted average diluted shares of approximately 54.8 million for the full year 2015, with no share issuances under the
Companys ATM program required to fund the investment activity included in the earnings guidance above; and |
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Core FFO/AFFO excludes the impact of any gains or losses relating to the Companys previous investment in the condominium housing business.
However, no such gains or losses are currently forecasted for 2015. |
The Companys earnings guidance
above does not currently factor in any sales or acquisition activities during 2015. The Company plans, however, to opportunistically pursue acquisitions of apartment communities that are consistent with its core strategy of continuing to
geographically diversify its portfolio and cash flow. Any such acquisitions may be financed through the sales of older apartment communities and through available cash on hand as well as, if necessary, borrowings on the Companys unsecured
revolving credit facilities. There can be no assurance that any acquisitions or sales will occur in 2015.
The Company
anticipates that net income available to common shareholders will be in the range of $1.25 to $1.37 per diluted share for the full year 2015. The difference between net income available to common shareholders and FFO per diluted share is
depreciation on real estate assets, which is anticipated to be $1.58 to $1.60 per diluted share. The difference between FFO and AFFO per diluted share is operating property capital expenditures after adjusting for the impact of non-cash
straight-line long-term ground lease expense. Those operating property capital expenditures, net of the ground lease adjustment, are anticipated to total $0.44 to $0.46 per diluted share.
The Companys operating results in the first quarter of 2015 are expected to be impacted by typical seasonal factors, including the
resetting of annual accruals for property taxes and insurance, and the debt extinguishment charge discussed above. The Companys operating results in the first quarter of 2015 are also expected to be impacted by higher compensation expenses
resulting, in part, from the vesting of annual long-term compensation awards for certain officers who have reached the age of retirement under the Companys stock compensation plans. As a result, general and administrative expenses are
projected to be roughly $0.02 per diluted share higher in the first quarter, as compared to the remainder of 2015.
Supplemental Financial
Data
The Company also produces Supplemental Financial Data that includes detailed information regarding the Companys
operating results, investment activity, financing activity, balance sheet and properties. This Supplemental Financial Data is considered an integral part of this earnings release and is available on the Companys website. The Companys
Earnings Release and the Supplemental Financial Data are available through the Investors/Financial Reports/Quarterly and Other Reports section of the Companys website at www.postproperties.com.
The ability to access the attachments on the Companys website requires the Adobe Acrobat Reader, which may be downloaded at
http://get.adobe.com/reader/.
Non-GAAP Financial Measures and Other Defined Terms
The Company uses certain non-GAAP financial measures and other defined terms in this press release and in its Supplemental Financial Data
available on the Companys website. The non-GAAP financial measures include FFO, Adjusted Funds from Operations (AFFO), net operating income, same store capital expenditures, and certain debt statistics and ratios. The definitions
of these non-GAAP financial measures are listed below and on page 19 of the Supplemental Financial Data. 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.
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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 (or losses) from extraordinary items and sales of depreciable operating
property, plus depreciation and amortization of real estate assets, non-cash impairment charges on depreciable real estate, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance
with GAAP. FFO presented in the Companys 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
Companys 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 Companys
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 AFFO as an operating measure. AFFO is defined as FFO less operating capital
expenditures and after adjusting for the impact of non-cash straight-line long-term ground lease expense, non-cash impairment charges, debt extinguishment gains (losses) and preferred stock redemption costs. 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 REITs ability to fund its 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 available to common shareholders is the most directly comparable GAAP measure to AFFO.
Property Net Operating Income (NOI) - 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 REITs 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 annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The
Company believes that same store annually recurring and periodically 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 Companys other operating segments consisting of newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties in addition to same
store information. Therefore, the Company believes that the Companys presentation of same store annually recurring and periodically 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 annually recurring and periodically recurring capital expenditures is the line on the Companys consolidated statements of cash flows entitled property capital
expenditures, which also includes revenue generating capital expenditures.
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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) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate assets (adjusted for joint venture partners share of debt);
(4) total debt plus preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners 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; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized income available for debt service ratio. A
number of these debt statistics and ratios are derived from covenants found in the Companys debt agreements, including, among others, the Companys senior unsecured notes. In addition, the Company presents these measures because the
degree of leverage could affect the Companys 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 Companys liquidity.
The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for debt service is
defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a supplemental measure of
operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Companys calculation thereof may not be comparable to similar
measures reported by other companies, including EBITDA or Adjusted EBITDA.
Property Operating
Statistics - The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical measures of property 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. Gross turnover is defined as the percentage of leases expiring during the period
that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to a new apartment unit in the same community or in another Post® community. The percentage increases in rent for new and renewed leases are calculated using the respective new or
renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.
Conference Call
Information
The Company will hold its quarterly conference call on Friday, February 6, at 10:00 a.m. ET. The
telephone numbers are 888-397-5352 for US and Canada callers and 719-325-2472 for international callers. The access code is 3711171. The conference call will be open to the public and can be listened to live on Posts website at
www.postproperties.com. Click Investors in the top menu, then select either Investors Overview or Events Calendar. The replay will begin at 1:00 p.m. ET on Friday, February 6, and will be available until Friday, February 13, at 1:00
p.m. ET. The telephone numbers for the replay are 888-203-1112 for US and Canada callers and 719-457-0820 for international callers. The access code for the replay is 3711171. A replay of the call also will be archived on Posts website under
Investors/Audio Archives.
About Post
Post Properties, founded more than 40 years ago, is a leading developer and operator of upscale multifamily communities. The Companys mission is delivering superior satisfaction and value to its
residents, associates, and investors, with a vision of being the first choice in quality multifamily living. Operating as a real estate investment trust (REIT), the Company focuses on developing and managing Post® branded high density urban and resort-style garden apartments. Post Properties is headquartered in Atlanta, Georgia,
and has operations in nine markets across the country.
Post Properties has interests in 22,994 apartment units in 58
communities, including 1,471 apartment units in four communities held in unconsolidated entities and 1,705 apartment units in five communities currently under development or in lease-up.
Forward-Looking Statements
Certain statements made in this press release
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. Statements regarding future events
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and developments and the Companys future performance, as well as managements expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking
statements within the meaning of these laws. Examples of such statements in this press release and in the Companys outlook include, expectations regarding apartment market conditions, expectations regarding future operating conditions,
including the Companys current outlook as to expected funds from operations, adjusted funds from operations, revenue, operating expenses, net operating income, capital expenditures, depreciation, gains on sales and net income, anticipated
development activities (including projected construction expenditures and timing), expectations regarding use of proceeds from unsecured bank credit facilities, and expectations regarding offerings of the Companys common stock and the use of
proceeds thereof. 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 Companys actual results and its expectations to differ materially from those described in the Companys forward-looking statements: the success of the Companys business strategies discussed in its Annual
Report on Form 10-K for the year ended December 31, 2013 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties
associated with the Companys real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future
local and national economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Companys ability to generate sufficient cash flows to make required payments
associated with its debt financing; the effects of the Companys leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Companys securities; the effects of a default by the
Company or its subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Companys or its subsidiaries mortgage indebtedness
on operational flexibility and default risks; the Companys ability to maintain its current dividend level; uncertainties associated with the Companys condominium for-sale housing business, including warranty and related obligations; the
impact of any additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Companys business, including competition for residents in the
Companys apartment communities and for development locations; the Companys ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government
support for apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Companys acquired apartment communities; the Companys ability to succeed in new
markets; the costs associated with compliance with laws requiring access to the Companys properties by persons with disabilities; the impact of the Companys ongoing litigation with the U.S. Department of Justice regarding the Americans
with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the
costs associated with moisture infiltration and resulting mold remediation; the Companys ability to control joint ventures, properties in which it has joint ownership and corporations and limited partnership in which it has partial interests;
the Companys ability to renew leases or relet units as leases expire; the Companys ability to continue to qualify as a REIT under the Internal Revenue Code; the effects of changes in accounting policies and other regulatory matters
detailed in the Companys filings with the Securities and Exchange Commission; increased costs arising from health care reform; and any breach of the Companys privacy or information security systems. Other important risk factors regarding
the Company are included under the caption Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2013 and may be discussed in subsequent filings with the SEC. The risk factors discussed in the
Form 10-K under the caption Risk Factors are specifically incorporated by reference into this press release.
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Financial Highlights
(Unaudited; in thousands, except per share and unit amounts)
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year
ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
OPERATING DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
$ |
92,813 |
|
|
$ |
93,705 |
|
|
$ |
377,812 |
|
|
$ |
362,737 |
|
Net income available to common shareholders |
|
$ |
18,537 |
|
|
$ |
42,809 |
|
|
$ |
211,432 |
|
|
$ |
106,846 |
|
Funds from operations available to common shareholders and unitholders (Table 1) |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
|
|
|
|
|
Weighted average shares outstanding - diluted |
|
|
54,394 |
|
|
|
54,208 |
|
|
|
54,353 |
|
|
|
54,508 |
|
Weighted average shares and units outstanding - diluted |
|
|
54,515 |
|
|
|
54,346 |
|
|
|
54,483 |
|
|
|
54,650 |
|
|
|
|
|
|
PER COMMON SHARE DATA - DILUTED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.79 |
|
|
$ |
3.88 |
|
|
$ |
1.96 |
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (Table 1) (1) |
|
$ |
0.73 |
|
|
$ |
0.67 |
|
|
$ |
2.44 |
|
|
$ |
3.01 |
|
Dividends declared |
|
$ |
0.40 |
|
|
$ |
0.33 |
|
|
$ |
1.56 |
|
|
$ |
1.24 |
|
1) |
Funds from operations available to common shareholders and unitholders per share was computed using weighted average shares and units outstanding,
including the impact of dilutive securities totaling 46 and 133 for the three months and 91 and 172 for the years ended December 31, 2014 and 2013, respectively. Additionally, diluted weighted average shares and units included the impact of
non-vested shares and units totaling 128 and 120 for the three months and 125 and 120 for the years ended December 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the
income per share computations under GAAP using the two-class method. |
-8-
Table 1
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations Available
to Common Shareholders and Unitholders
(Unaudited; in thousands, except per share and unit amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year
ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Net income available to common shareholders |
|
$ |
18,537 |
|
|
$ |
42,809 |
|
|
$ |
211,432 |
|
|
$ |
106,846 |
|
Noncontrolling interests - Operating Partnership |
|
|
45 |
|
|
|
112 |
|
|
|
509 |
|
|
|
279 |
|
Depreciation on consolidated real estate assets, net |
|
|
20,804 |
|
|
|
21,616 |
|
|
|
83,599 |
|
|
|
84,841 |
|
Depreciation on real estate assets held in unconsolidated entities |
|
|
299 |
|
|
|
292 |
|
|
|
1,181 |
|
|
|
1,164 |
|
Gains on sales of depreciable real estate assets |
|
|
- |
|
|
|
(28,380 |
) |
|
|
(187,825 |
) |
|
|
(28,380 |
) |
Noncontrolling interest share of gains on sales of depreciable real estate assets |
|
|
- |
|
|
|
- |
|
|
|
24,074 |
|
|
|
- |
|
Gain on sale of retail condominium |
|
|
- |
|
|
|
- |
|
|
|
(281 |
) |
|
|
- |
|
Non-cash impairment charge on depreciable real estate |
|
|
450 |
|
|
|
- |
|
|
|
450 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders -core operations |
|
$ |
39,452 |
|
|
$ |
35,973 |
|
|
$ |
130,875 |
|
|
$ |
136,806 |
|
Funds from operations available to common shareholders and unitholders -condominiums |
|
|
683 |
|
|
|
476 |
|
|
|
2,264 |
|
|
|
27,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations - per share and unit - diluted (1) |
|
$ |
0.73 |
|
|
$ |
0.67 |
|
|
$ |
2.44 |
|
|
$ |
3.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per share and unit - core operations |
|
$ |
0.72 |
|
|
$ |
0.66 |
|
|
$ |
2.40 |
|
|
$ |
2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units outstanding - diluted (1) |
|
|
54,643 |
|
|
|
54,466 |
|
|
|
54,608 |
|
|
|
54,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 46 and 133 for the three months and 91 and 172 for the
years ended December 31, 2014 and 2013, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 128 and 120 for the three months and 125 and 120 for the years ended
December 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the two-class method.
|
-9-
Table 2
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Unaudited; In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
September 30, 2014 |
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
Total same store NOI |
|
$ |
48,187 |
|
|
$ |
46,586 |
|
|
$ |
47,472 |
|
|
$ |
188,064 |
|
|
$ |
184,712 |
|
Property NOI from held for sale and sold - residential |
|
|
- |
|
|
|
2,734 |
|
|
|
1,651 |
|
|
|
6,390 |
|
|
|
11,112 |
|
Property NOI from held for sale and sold - commercial |
|
|
- |
|
|
|
364 |
|
|
|
160 |
|
|
|
767 |
|
|
|
1,613 |
|
Property NOI from other operating segments |
|
|
5,417 |
|
|
|
4,279 |
|
|
|
5,269 |
|
|
|
18,640 |
|
|
|
9,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI |
|
|
53,604 |
|
|
|
53,963 |
|
|
|
54,552 |
|
|
|
213,861 |
|
|
|
206,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
41 |
|
|
|
10 |
|
|
|
78 |
|
|
|
135 |
|
|
|
77 |
|
Other revenues |
|
|
316 |
|
|
|
204 |
|
|
|
234 |
|
|
|
992 |
|
|
|
872 |
|
Depreciation |
|
|
(21,145 |
) |
|
|
(21,914 |
) |
|
|
(21,018 |
) |
|
|
(84,759 |
) |
|
|
(85,608 |
) |
Interest expense |
|
|
(8,751 |
) |
|
|
(11,424 |
) |
|
|
(9,858 |
) |
|
|
(40,286 |
) |
|
|
(44,704 |
) |
Amortization of deferred financing costs |
|
|
(429 |
) |
|
|
(658 |
) |
|
|
(588 |
) |
|
|
(2,282 |
) |
|
|
(2,573 |
) |
General and administrative |
|
|
(5,020 |
) |
|
|
(4,751 |
) |
|
|
(4,784 |
) |
|
|
(17,898 |
) |
|
|
(17,245 |
) |
Investment and development |
|
|
(206 |
) |
|
|
(307 |
) |
|
|
(555 |
) |
|
|
(2,366 |
) |
|
|
(1,755 |
) |
Other investment costs |
|
|
(61 |
) |
|
|
(85 |
) |
|
|
(224 |
) |
|
|
(768 |
) |
|
|
(1,324 |
) |
Severance, impairment and other |
|
|
(513 |
) |
|
|
(436 |
) |
|
|
(344 |
) |
|
|
(2,266 |
) |
|
|
(2,417 |
) |
Gains on condominium sales activities, net |
|
|
683 |
|
|
|
476 |
|
|
|
1,052 |
|
|
|
2,545 |
|
|
|
27,944 |
|
Equity in income of unconsolidated real estate entities, net |
|
|
380 |
|
|
|
479 |
|
|
|
422 |
|
|
|
1,788 |
|
|
|
2,090 |
|
Other income (expense), net |
|
|
605 |
|
|
|
(195 |
) |
|
|
(195 |
) |
|
|
19 |
|
|
|
(839 |
) |
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
(14,070 |
) |
|
|
(18,357 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before gains on sales of real estate assets |
|
|
19,504 |
|
|
|
15,362 |
|
|
|
4,702 |
|
|
|
50,358 |
|
|
|
81,122 |
|
Gains on sales of real estate assets |
|
|
- |
|
|
|
- |
|
|
|
151,733 |
|
|
|
187,825 |
|
|
|
- |
|
Income from discontinued operations |
|
|
- |
|
|
|
28,501 |
|
|
|
- |
|
|
|
- |
|
|
|
29,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,504 |
|
|
$ |
43,863 |
|
|
$ |
156,435 |
|
|
$ |
238,183 |
|
|
$ |
110,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-10-
Table 3
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Q4 14 vs. Q4 13 % Change |
|
|
Q4 14 vs. Q3 14 % Change |
|
|
Q4 14 % Same Store NOI |
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
September 30, 2014 |
|
|
|
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
21,807 |
|
|
$ |
20,682 |
|
|
$ |
21,762 |
|
|
|
5.4% |
|
|
|
0.2% |
|
|
|
|
|
Dallas |
|
|
18,205 |
|
|
|
17,604 |
|
|
|
18,297 |
|
|
|
3.4% |
|
|
|
(0.5)% |
|
|
|
|
|
Houston |
|
|
2,244 |
|
|
|
2,227 |
|
|
|
2,339 |
|
|
|
0.8% |
|
|
|
(4.1)% |
|
|
|
|
|
Austin |
|
|
3,018 |
|
|
|
2,990 |
|
|
|
3,052 |
|
|
|
0.9% |
|
|
|
(1.1)% |
|
|
|
|
|
Washington, D.C. |
|
|
12,836 |
|
|
|
12,990 |
|
|
|
13,156 |
|
|
|
(1.2)% |
|
|
|
(2.4)% |
|
|
|
|
|
Tampa |
|
|
9,416 |
|
|
|
9,100 |
|
|
|
9,448 |
|
|
|
3.5% |
|
|
|
(0.3)% |
|
|
|
|
|
Orlando |
|
|
2,777 |
|
|
|
2,747 |
|
|
|
2,770 |
|
|
|
1.1% |
|
|
|
0.3% |
|
|
|
|
|
Charlotte |
|
|
6,822 |
|
|
|
6,573 |
|
|
|
6,889 |
|
|
|
3.8% |
|
|
|
(1.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
77,125 |
|
|
|
74,913 |
|
|
|
77,713 |
|
|
|
3.0% |
|
|
|
(0.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
8,525 |
|
|
|
8,104 |
|
|
|
8,597 |
|
|
|
5.2% |
|
|
|
(0.8)% |
|
|
|
|
|
Dallas |
|
|
7,957 |
|
|
|
7,387 |
|
|
|
7,985 |
|
|
|
7.7% |
|
|
|
(0.4)% |
|
|
|
|
|
Houston |
|
|
929 |
|
|
|
857 |
|
|
|
950 |
|
|
|
8.4% |
|
|
|
(2.2)% |
|
|
|
|
|
Austin |
|
|
1,255 |
|
|
|
1,278 |
|
|
|
1,366 |
|
|
|
(1.8)% |
|
|
|
(8.1)% |
|
|
|
|
|
Washington, D.C. |
|
|
4,340 |
|
|
|
4,373 |
|
|
|
4,627 |
|
|
|
(0.8)% |
|
|
|
(6.2)% |
|
|
|
|
|
Tampa |
|
|
2,930 |
|
|
|
3,272 |
|
|
|
3,465 |
|
|
|
(10.5)% |
|
|
|
(15.4)% |
|
|
|
|
|
Orlando |
|
|
955 |
|
|
|
930 |
|
|
|
1,035 |
|
|
|
2.7% |
|
|
|
(7.7)% |
|
|
|
|
|
Charlotte |
|
|
2,047 |
|
|
|
2,126 |
|
|
|
2,216 |
|
|
|
(3.7)% |
|
|
|
(7.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
28,938 |
|
|
|
28,327 |
|
|
|
30,241 |
|
|
|
2.2% |
|
|
|
(4.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
13,282 |
|
|
|
12,578 |
|
|
|
13,165 |
|
|
|
5.6% |
|
|
|
0.9% |
|
|
|
27.5% |
|
Dallas |
|
|
10,248 |
|
|
|
10,217 |
|
|
|
10,312 |
|
|
|
0.3% |
|
|
|
(0.6)% |
|
|
|
21.3% |
|
Houston |
|
|
1,315 |
|
|
|
1,370 |
|
|
|
1,389 |
|
|
|
(4.0)% |
|
|
|
(5.3)% |
|
|
|
2.7% |
|
Austin |
|
|
1,763 |
|
|
|
1,712 |
|
|
|
1,686 |
|
|
|
3.0% |
|
|
|
4.6% |
|
|
|
3.7% |
|
Washington, D.C. |
|
|
8,496 |
|
|
|
8,617 |
|
|
|
8,529 |
|
|
|
(1.4)% |
|
|
|
(0.4)% |
|
|
|
17.6% |
|
Tampa |
|
|
6,486 |
|
|
|
5,828 |
|
|
|
5,983 |
|
|
|
11.3% |
|
|
|
8.4% |
|
|
|
13.5% |
|
Orlando |
|
|
1,822 |
|
|
|
1,817 |
|
|
|
1,735 |
|
|
|
0.3% |
|
|
|
5.0% |
|
|
|
3.8% |
|
Charlotte |
|
|
4,775 |
|
|
|
4,447 |
|
|
|
4,673 |
|
|
|
7.4% |
|
|
|
2.2% |
|
|
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
48,187 |
|
|
$ |
46,586 |
|
|
$ |
47,472 |
|
|
|
3.4% |
|
|
|
1.5% |
|
|
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,362 |
|
|
$ |
1,296 |
|
|
$ |
1,347 |
|
|
|
5.1% |
|
|
|
1.1% |
|
|
|
|
|
Dallas |
|
|
1,254 |
|
|
|
1,228 |
|
|
|
1,247 |
|
|
|
2.1% |
|
|
|
0.5% |
|
|
|
|
|
Houston |
|
|
1,438 |
|
|
|
1,364 |
|
|
|
1,432 |
|
|
|
5.4% |
|
|
|
0.4% |
|
|
|
|
|
Austin |
|
|
1,566 |
|
|
|
1,544 |
|
|
|
1,576 |
|
|
|
1.4% |
|
|
|
(0.6)% |
|
|
|
|
|
Washington, D.C. |
|
|
1,855 |
|
|
|
1,875 |
|
|
|
1,876 |
|
|
|
(1.1)% |
|
|
|
(1.1)% |
|
|
|
|
|
Tampa |
|
|
1,434 |
|
|
|
1,396 |
|
|
|
1,427 |
|
|
|
2.7% |
|
|
|
0.5% |
|
|
|
|
|
Orlando |
|
|
1,488 |
|
|
|
1,490 |
|
|
|
1,494 |
|
|
|
(0.1)% |
|
|
|
(0.4)% |
|
|
|
|
|
Charlotte |
|
|
1,277 |
|
|
|
1,243 |
|
|
|
1,267 |
|
|
|
2.7% |
|
|
|
0.8% |
|
|
|
|
|
Total average rental rate per unit |
|
|
1,411 |
|
|
|
1,377 |
|
|
|
1,407 |
|
|
|
2.5% |
|
|
|
0.3% |
|
|
|
|
|
-11-
Table 3 (cont)
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
% Change |
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
85,721 |
|
|
$ |
81,466 |
|
|
|
5.2% |
|
Dallas |
|
|
72,277 |
|
|
|
70,103 |
|
|
|
3.1% |
|
Houston |
|
|
9,132 |
|
|
|
8,780 |
|
|
|
4.0% |
|
Austin |
|
|
12,093 |
|
|
|
11,826 |
|
|
|
2.3% |
|
Washington, D.C. |
|
|
51,852 |
|
|
|
52,456 |
|
|
|
(1.2)% |
|
Tampa |
|
|
37,465 |
|
|
|
36,441 |
|
|
|
2.8% |
|
Orlando |
|
|
11,030 |
|
|
|
11,129 |
|
|
|
(0.9)% |
|
Charlotte |
|
|
27,087 |
|
|
|
26,377 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
306,657 |
|
|
|
298,578 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
33,979 |
|
|
|
32,598 |
|
|
|
4.2% |
|
Dallas |
|
|
31,487 |
|
|
|
29,676 |
|
|
|
6.1% |
|
Houston |
|
|
3,725 |
|
|
|
3,337 |
|
|
|
11.6% |
|
Austin |
|
|
5,294 |
|
|
|
5,056 |
|
|
|
4.7% |
|
Washington, D.C. |
|
|
18,095 |
|
|
|
17,373 |
|
|
|
4.2% |
|
Tampa |
|
|
13,560 |
|
|
|
13,333 |
|
|
|
1.7% |
|
Orlando |
|
|
3,996 |
|
|
|
3,901 |
|
|
|
2.4% |
|
Charlotte |
|
|
8,457 |
|
|
|
8,592 |
|
|
|
(1.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
118,593 |
|
|
|
113,866 |
|
|
|
4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
51,742 |
|
|
|
48,868 |
|
|
|
5.9% |
|
Dallas |
|
|
40,790 |
|
|
|
40,427 |
|
|
|
0.9% |
|
Houston |
|
|
5,407 |
|
|
|
5,443 |
|
|
|
(0.7)% |
|
Austin |
|
|
6,799 |
|
|
|
6,770 |
|
|
|
0.4% |
|
Washington, D.C. |
|
|
33,757 |
|
|
|
35,083 |
|
|
|
(3.8)% |
|
Tampa |
|
|
23,905 |
|
|
|
23,108 |
|
|
|
3.4% |
|
Orlando |
|
|
7,034 |
|
|
|
7,228 |
|
|
|
(2.7)% |
|
Charlotte |
|
|
18,630 |
|
|
|
17,785 |
|
|
|
4.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
188,064 |
|
|
$ |
184,712 |
|
|
|
1.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,333 |
|
|
$ |
1,271 |
|
|
|
4.9% |
|
Dallas |
|
|
1,243 |
|
|
|
1,216 |
|
|
|
2.2% |
|
Houston |
|
|
1,410 |
|
|
|
1,337 |
|
|
|
5.5% |
|
Austin |
|
|
1,565 |
|
|
|
1,519 |
|
|
|
3.0% |
|
Washington, D.C. |
|
|
1,868 |
|
|
|
1,889 |
|
|
|
(1.1)% |
|
Tampa |
|
|
1,420 |
|
|
|
1,388 |
|
|
|
2.3% |
|
Orlando |
|
|
1,490 |
|
|
|
1,508 |
|
|
|
(1.2)% |
|
Charlotte |
|
|
1,261 |
|
|
|
1,228 |
|
|
|
2.7% |
|
Total average rental rate per unit |
|
|
1,398 |
|
|
|
1,365 |
|
|
|
2.4% |
|
-12-
Table 4
Computation of Debt Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2014 |
|
|
2013 |
|
Total real estate assets per balance sheet |
|
$ |
2,128,767 |
|
|
$ |
2,251,139 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,554 |
|
|
|
57,680 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
14,183 |
|
|
|
12,645 |
|
Accumulated depreciation per balance sheet |
|
|
937,310 |
|
|
|
913,018 |
|
Accumulated depreciation on assets held for sale |
|
|
207 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total undepreciated real estate assets (A) |
|
$ |
3,138,021 |
|
|
$ |
3,234,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
892,459 |
|
|
$ |
1,098,734 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of third party debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
|
|
|
|
|
|
|
|
|
Total debt (adjusted for joint venture partners share of debt) (B) |
|
$ |
941,990 |
|
|
$ |
1,148,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt) (B÷A)
|
|
|
30.0 |
% |
|
|
35.5 |
% |
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
892,459 |
|
|
$ |
1,098,734 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of third party debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Preferred shares at liquidation value |
|
|
43,392 |
|
|
|
43,392 |
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity (adjusted for joint venture partners share of debt) (C) |
|
$ |
985,382 |
|
|
$ |
1,191,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners share of
debt) (C÷A) |
|
|
31.4 |
% |
|
|
36.8 |
% |
|
|
|
|
|
|
|
|
|
-13-
Exhibit 99.2
|
|
|
4th Quarter 2014 |
|
|
Fourth Quarter 2014
Supplemental Financial Data
Table of Contents
|
|
|
|
|
|
|
Page |
|
|
|
Consolidated Statements of Operations |
|
|
3 |
|
|
|
Funds from Operations and Adjusted Funds From Operations |
|
|
4 |
|
|
|
Consolidated Balance Sheets |
|
|
5 |
|
|
|
Same Store Results |
|
|
8 |
|
|
|
Debt Summary |
|
|
11 |
|
|
|
Summary of Apartment Communities Under Development, Land Held for Future
Investment and Acquisitions/Disposition Activity |
|
|
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 and Tables |
|
|
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
Companys actual results and its expectations to differ materially from those described in the Companys forward-looking statements: the success of the Companys business strategies discussed in its Annual Report on Form 10-K for the
year ended December 31, 2013 and in subsequent filings with the SEC; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with the
Companys real estate development and construction; uncertainties associated with the timing and amount of apartment community sales; exposure to economic and other competitive factors due to market concentration; future local and national
economic conditions, including changes in job growth, interest rates, the availability of mortgage and other financing and related factors; the Companys ability to generate sufficient cash flows to make required payments associated with its
debt financing; the effects of the Companys leverage on its risk of default and debt service requirements; the impact of a downgrade in the credit rating of the Companys securities; the effects of a default by the Company or its
subsidiaries on an obligation to repay outstanding indebtedness, including cross-defaults and cross-acceleration under other indebtedness; the effects of covenants of the Companys or its subsidiaries mortgage indebtedness on operational
flexibility and default risks; the Companys ability to maintain its current dividend level; uncertainties associated with the Companys condominium for-sale housing business, including warranty and related obligations; the impact of any
additional charges the Company may be required to record in the future related to any impairment in the carrying value of its assets; the impact of competition on the Companys business, including competition for residents in the Companys
apartment communities and for development locations; the Companys ability to compete for limited investment opportunities; the effects of any decision by the government to eliminate Fannie Mae or Freddie Mac or reduce government support for
apartment mortgage loans; the effects of changing interest rates and effectiveness of interest rate hedging contracts; the success of the Companys acquired apartment communities; uncertainties associated with the timing and amount of asset
sales, the market for asset sales and the resulting gains/losses associated with such asset sales; the Companys ability to succeed in new markets; the costs associated with compliance with laws requiring access to the Companys properties
by persons with disabilities; the impact of the Companys ongoing litigation with the U.S. Department of Justice regarding the Americans with Disabilities Act and the Fair Housing Act as well as the impact of other litigation; the effects of
losses from natural catastrophes in excess of insurance coverage; uncertainties associated with environmental and other regulatory matters; the costs associated with moisture infiltration and resulting mold remediation; the Companys ability to
control joint ventures, properties in which it has joint ownership and corporations and limited partnerships in which it has partial interests; the Companys ability to renew leases or relet units as leases expire; the Companys ability to
continue to qualify as a REIT under the Internal Revenue Code; and the effects of changes in accounting policies and other regulatory matters detailed in the Companys filings with the Securities and Exchange Commission; increased costs arising
from health care reform; or any breach of the Companys privacy or information security systems. Other important risk factors regarding the Company are included under the caption Risk Factors in the Companys Annual Report on
Form 10-K for the year ended December 31, 2013 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption Risk Factors are specifically incorporated by reference into this
document.
|
|
|
Supplemental Financial Data |
|
2 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year ended December 31, |
|
|
|
2014
|
|
|
2013
|
|
|
2014 |
|
|
2013
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
87,390 |
|
|
$ |
88,728 |
|
|
$ |
355,583 |
|
|
$ |
341,902 |
|
Other property revenues |
|
|
5,107 |
|
|
|
4,773 |
|
|
|
21,237 |
|
|
|
19,963 |
|
Other |
|
|
316 |
|
|
|
204 |
|
|
|
992 |
|
|
|
872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
92,813 |
|
|
|
93,705 |
|
|
|
377,812 |
|
|
|
362,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance (exclusive of items shown separately below) |
|
|
38,893 |
|
|
|
39,538 |
|
|
|
162,959 |
|
|
|
155,261 |
|
Depreciation |
|
|
21,145 |
|
|
|
21,914 |
|
|
|
84,759 |
|
|
|
85,608 |
|
General and administrative |
|
|
5,020 |
|
|
|
4,751 |
|
|
|
17,898 |
|
|
|
17,245 |
|
Investment and development (1) |
|
|
206 |
|
|
|
307 |
|
|
|
2,366 |
|
|
|
1,755 |
|
Other investment costs (1) |
|
|
61 |
|
|
|
85 |
|
|
|
768 |
|
|
|
1,324 |
|
Severance, impairment and other (2) |
|
|
513 |
|
|
|
436 |
|
|
|
2,266 |
|
|
|
2,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
65,838 |
|
|
|
67,031 |
|
|
|
271,016 |
|
|
|
263,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
26,975 |
|
|
|
26,674 |
|
|
|
106,796 |
|
|
|
99,127 |
|
Interest income |
|
|
41 |
|
|
|
10 |
|
|
|
135 |
|
|
|
77 |
|
Interest expense |
|
|
(8,751) |
|
|
|
(11,424) |
|
|
|
(40,286) |
|
|
|
(44,704) |
|
Amortization of deferred financing costs |
|
|
(429) |
|
|
|
(658) |
|
|
|
(2,282) |
|
|
|
(2,573) |
|
Net gains on condominium sales activities (3) |
|
|
683 |
|
|
|
476 |
|
|
|
2,545 |
|
|
|
27,944 |
|
Equity in income of unconsolidated real estate entities, net |
|
|
380 |
|
|
|
479 |
|
|
|
1,788 |
|
|
|
2,090 |
|
Other income (expense), net (4) |
|
|
605 |
|
|
|
(195) |
|
|
|
19 |
|
|
|
(839) |
|
Net loss on extinguishment of indebtedness (5) |
|
|
- |
|
|
|
- |
|
|
|
(18,357) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before gains on sales of real estate assets |
|
|
19,504 |
|
|
|
15,362 |
|
|
|
50,358 |
|
|
|
81,122 |
|
Gains on sales of real estate assets |
|
|
- |
|
|
|
- |
|
|
|
187,825 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
19,504 |
|
|
|
15,362 |
|
|
|
238,183 |
|
|
|
81,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued property operations |
|
|
- |
|
|
|
121 |
|
|
|
- |
|
|
|
1,418 |
|
Gains on sales of real estate assets |
|
|
- |
|
|
|
28,380 |
|
|
|
- |
|
|
|
28,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations |
|
|
- |
|
|
|
28,501 |
|
|
|
- |
|
|
|
29,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
19,504 |
|
|
|
43,863 |
|
|
|
238,183 |
|
|
|
110,920 |
|
Noncontrolling interests - consolidated real estate entities |
|
|
- |
|
|
|
(20) |
|
|
|
(22,554) |
|
|
|
(107) |
|
Noncontrolling interests - Operating Partnership |
|
|
(45) |
|
|
|
(112) |
|
|
|
(509) |
|
|
|
(279) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to the Company |
|
|
19,459 |
|
|
|
43,731 |
|
|
|
215,120 |
|
|
|
110,534 |
|
Dividends to preferred shareholders |
|
|
(922) |
|
|
|
(922) |
|
|
|
(3,688) |
|
|
|
(3,688) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
18,537 |
|
|
$ |
42,809 |
|
|
$ |
211,432 |
|
|
$ |
106,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data - Basic (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations (net of preferred dividends) |
|
$ |
0.34 |
|
|
$ |
0.27 |
|
|
$ |
3.89 |
|
|
$ |
1.42 |
|
Income from discontinued operations |
|
|
- |
|
|
|
0.52 |
|
|
|
- |
|
|
|
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.79 |
|
|
$ |
3.89 |
|
|
$ |
1.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
|
54,348 |
|
|
|
54,075 |
|
|
|
54,262 |
|
|
|
54,336 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data - Diluted (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations (net of preferred dividends) |
|
$ |
0.34 |
|
|
$ |
0.26 |
|
|
$ |
3.88 |
|
|
$ |
1.41 |
|
Income from discontinued operations |
|
|
- |
|
|
|
0.52 |
|
|
|
- |
|
|
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.79 |
|
|
$ |
3.88 |
|
|
$ |
1.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
|
54,394 |
|
|
|
54,208 |
|
|
|
54,353 |
|
|
|
54,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financial Statements on page 6
|
|
|
Supplemental Financial Data |
|
3 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
FUNDS FROM OPERATIONS AND
ADJUSTED FUNDS FROM OPERATIONS
(In thousands, except per share
data)(Unaudited)
A reconciliation of net income available to common shareholders to funds from operations and adjusted
funds from operations available to common shareholders and unitholders is provided below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year
ended December 31, |
|
Funds From Operations |
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net income available to common shareholders |
|
$ |
18,537 |
|
|
$ |
42,809 |
|
|
$ |
211,432 |
|
|
$ |
106,846 |
|
Noncontrolling interests - Operating Partnership |
|
|
45 |
|
|
|
112 |
|
|
|
509 |
|
|
|
279 |
|
Depreciation on consolidated real estate assets, net (7) |
|
|
20,804 |
|
|
|
21,616 |
|
|
|
83,599 |
|
|
|
84,841 |
|
Depreciation on real estate assets held in unconsolidated entities |
|
|
299 |
|
|
|
292 |
|
|
|
1,181 |
|
|
|
1,164 |
|
Gains on sales of depreciable real estate assets |
|
|
- |
|
|
|
(28,380) |
|
|
|
(187,825) |
|
|
|
(28,380) |
|
Noncontrolling interest share of gains on sales of depreciable real estate assets |
|
|
- |
|
|
|
- |
|
|
|
24,074 |
|
|
|
- |
|
Gain on sale of retail condominium |
|
|
- |
|
|
|
- |
|
|
|
(281) |
|
|
|
- |
|
Non-cash impairment charge on depreciable real estate |
|
|
450 |
|
|
|
- |
|
|
|
450 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (A) |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders - core operations (B) |
|
$ |
39,452 |
|
|
$ |
35,973 |
|
|
$ |
130,875 |
|
|
$ |
136,806 |
|
Funds from operations available to common shareholders and
unitholders - condominiums |
|
|
683 |
|
|
|
476 |
|
|
|
2,264 |
|
|
|
27,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (A) |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Funds From Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unit holders (A) |
|
$ |
40,135 |
|
|
$ |
36,449 |
|
|
$ |
133,139 |
|
|
$ |
164,750 |
|
Annually recurring capital expenditures |
|
|
(3,817) |
|
|
|
(3,180) |
|
|
|
(13,943) |
|
|
|
(14,673) |
|
Periodically recurring capital expenditures |
|
|
(2,085) |
|
|
|
(4,676) |
|
|
|
(8,137) |
|
|
|
(15,893) |
|
Non-cash straight-line adjustment for ground lease expenses |
|
|
115 |
|
|
|
118 |
|
|
|
464 |
|
|
|
476 |
|
Net loss on early extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
18,357 |
|
|
|
- |
|
Noncontrolling interest share of net loss on early extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
(1,737) |
|
|
|
- |
|
Non-cash impairment charge on land held for investment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders (8) (C) |
|
$ |
34,348 |
|
|
$ |
28,711 |
|
|
$ |
128,143 |
|
|
$ |
135,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders - core operations
(8) (D) |
|
$ |
33,665 |
|
|
$ |
28,235 |
|
|
$ |
125,879 |
|
|
$ |
107,116 |
|
Adjusted funds from operations available to common shareholders and unitholders - condominiums (8) |
|
|
683 |
|
|
|
476 |
|
|
|
2,264 |
|
|
|
27,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders (8) (C) |
|
$ |
34,348 |
|
|
$ |
28,711 |
|
|
$ |
128,143 |
|
|
$ |
135,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per share or unit, as defined (A÷E) |
|
$ |
0.73 |
|
|
$ |
0.67 |
|
|
$ |
2.44 |
|
|
$ |
3.01 |
|
Funds from operations per share or unit - core operations (B÷E) |
|
$ |
0.72 |
|
|
$ |
0.66 |
|
|
$ |
2.40 |
|
|
$ |
2.50 |
|
Adjusted funds from operations per share or unit, as defined (8) (C÷E) |
|
$ |
0.63 |
|
|
$ |
0.53 |
|
|
$ |
2.35 |
|
|
$ |
2.47 |
|
Adjusted funds from operations per share or unit - core operations (8) (D÷E) |
|
$ |
0.62 |
|
|
$ |
0.52 |
|
|
$ |
2.31 |
|
|
$ |
1.96 |
|
Dividends declared |
|
$ |
0.40 |
|
|
$ |
0.33 |
|
|
$ |
1.56 |
|
|
$ |
1.24 |
|
Weighted average shares outstanding (9) |
|
|
54,522 |
|
|
|
54,327 |
|
|
|
54,478 |
|
|
|
54,628 |
|
Weighted average shares and units outstanding (9) (E) |
|
|
54,643 |
|
|
|
54,466 |
|
|
|
54,608 |
|
|
|
54,770 |
|
See Notes to Funds from Operations and Adjusted Funds from Operations on page 6
|
|
|
Supplemental Financial Data |
|
4 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014 |
|
|
December 31,
2013 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate assets |
|
|
|
|
|
|
|
|
Land |
|
$ |
317,077 |
|
|
$ |
327,270 |
|
Building and improvements |
|
|
2,323,626 |
|
|
|
2,408,906 |
|
Furniture, fixtures and equipment |
|
|
304,534 |
|
|
|
291,027 |
|
Construction in progress |
|
|
86,971 |
|
|
|
74,064 |
|
Land held for future investment |
|
|
33,197 |
|
|
|
61,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,065,405 |
|
|
|
3,163,035 |
|
Less: accumulated depreciation |
|
|
(937,310) |
|
|
|
(913,018) |
|
Assets held for sale, net of accumulated depreciation of $207 at December 31, 2014 |
|
|
672 |
|
|
|
- |
|
For-sale condominiums |
|
|
- |
|
|
|
1,122 |
|
|
|
|
|
|
|
|
|
|
Total real estate assets |
|
|
2,128,767 |
|
|
|
2,251,139 |
|
Investments in and advances to unconsolidated real estate entities |
|
|
4,059 |
|
|
|
4,056 |
|
Cash and cash equivalents |
|
|
140,512 |
|
|
|
82,110 |
|
Restricted cash |
|
|
3,572 |
|
|
|
4,712 |
|
Deferred financing costs, net |
|
|
5,117 |
|
|
|
8,495 |
|
Other assets |
|
|
29,771 |
|
|
|
31,165 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,311,798 |
|
|
$ |
2,381,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Indebtedness |
|
$ |
892,459 |
|
|
$ |
1,098,734 |
|
Accounts payable, accrued expenses and other |
|
|
70,616 |
|
|
|
73,431 |
|
Investments in unconsolidated real estate entities |
|
|
16,624 |
|
|
|
16,687 |
|
Dividends and distributions payable |
|
|
21,852 |
|
|
|
17,928 |
|
Accrued interest payable |
|
|
4,229 |
|
|
|
5,157 |
|
Security deposits and prepaid rents |
|
|
12,972 |
|
|
|
10,888 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,018,752 |
|
|
|
1,222,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable common units |
|
|
7,086 |
|
|
|
6,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Company shareholders equity |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 20,000 authorized: |
|
|
|
|
|
|
|
|
8 1/2% Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 868 shares issued and
outstanding |
|
|
9 |
|
|
|
9 |
|
Common stock, $.01 par value, 100,000 authorized: |
|
|
|
|
|
|
|
|
54,632 and 54,629 shares issued and 54,509 and 54,191 shares outstanding at December 31, 2014 and 2013,
respectively |
|
|
546 |
|
|
|
546 |
|
Additional paid-in-capital |
|
|
1,114,851 |
|
|
|
1,111,861 |
|
Accumulated earnings |
|
|
185,001 |
|
|
|
66,138 |
|
Accumulated other comprehensive income (loss) |
|
|
(3,675) |
|
|
|
(3,419) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,296,732 |
|
|
|
1,175,135 |
|
Less common stock in treasury, at cost, 207 and 519 shares at December 31, 2014 and 2013, respectively |
|
|
(10,772) |
|
|
|
(22,188) |
|
|
|
|
|
|
|
|
|
|
Total Company shareholders equity |
|
|
1,285,960 |
|
|
|
1,152,947 |
|
Noncontrolling interests - consolidated property partnerships |
|
|
- |
|
|
|
(216) |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
1,285,960 |
|
|
|
1,152,731 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
2,311,798 |
|
|
$ |
2,381,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
5 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
AND RECONCILIATION OF FUNDS FROM
OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(In thousands)
1) |
Investment and development expenses include investment group expenses, development personnel and associated costs not allocable to development
projects. Other investment costs primarily include land carry costs, principally property taxes and assessments, as well as acquisition expenses of $320 for the year ended December 31, 2013. |
2) |
Severance, impairment and other expenses included $1,066 and $592 for the years ended December 31, 2014 and 2013, respectively, related to the
strategic initiative to upgrade the Companys operating and financial software systems. In 2014, severance, impairment and other expenses also included casualty losses of $750 related to extreme winter conditions in many of the Companys
markets and fire damage at one community, and non-cash impairment charges of $450 to write-down to fair value a commercial property. Severance, impairment and other in 2013 also included casualty losses of $236 related to fire damage at one
community, non-cash impairment charges of $400 to write-down to fair value a parcel of land held for future investment and severance charges of $1,189 related to the departure of an executive officer and other personnel.
|
3) |
A summary of revenues and costs and expenses of condominium activities for the three months and years ended December 31, 2014 and 2013 was as
follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31, |
|
|
Year ended
December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Condominium revenues |
|
$ |
- |
|
|
$ |
20 |
|
|
$ |
2,442 |
|
|
$ |
68,168 |
|
Condominium costs and expenses |
|
|
683 |
|
|
|
456 |
|
|
|
(178) |
|
|
|
(40,224) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on sales of residential condominiums |
|
|
683 |
|
|
|
476 |
|
|
|
2,264 |
|
|
|
27,944 |
|
Net gain on sale of retail condominium |
|
|
- |
|
|
|
- |
|
|
|
281 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains on sales of condominiums |
|
$ |
683 |
|
|
$ |
476 |
|
|
$ |
2,545 |
|
|
$ |
27,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months and year ended December 31, 2014, the Company recognized a
reduction to condominium warranty and related obligations of $683 and $1,454, respectively, associated with the anticipated resolution and final settlement of certain contingencies at the Companys Atlanta, Georgia and Austin, Texas condominium
projects. Additionally, in 2014, the Company sold a retail condominium representing a portion of the available retail space at the condominium community in Austin, Texas and recognized a net gain of $281. For the three months and year ended
December 31, 2013, the Company recognized a reduction to warranty and related obligations totaling $501 associated with the favorable settlement of certain warranty contingencies related to another condominium project sold out in prior years.
4) |
Other income (expense), net primarily includes state franchise taxes. For the three months and year ended December 31, 2014, other income
(expense) also included an income tax benefit of $797 related to the Companys taxable REIT subsidiaries. |
5) |
In periods prior to January 1, 2014, under ASC Topic 360, the operating results of real estate assets designated as held for sale or sold were
included in discontinued operations for all periods presented. Additionally, all gains or losses on the sale of these assets were included in discontinued operations. For the three months and year ended December 31, 2013, income from
discontinued operations included the operating results of one apartment community sold in October 2013, containing 342 units, as follows: |
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2013 |
|
|
Year ended
December 31, 2013 |
|
Revenues |
|
|
|
|
|
|
|
|
Rental |
|
$ |
285 |
|
|
$ |
3,557 |
|
Other property revenues |
|
|
29 |
|
|
|
356 |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
314 |
|
|
|
3,913 |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Property operating and maintenance |
|
|
170 |
|
|
|
1,679 |
|
Depreciation |
|
|
- |
|
|
|
527 |
|
Interest |
|
|
23 |
|
|
|
289 |
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
193 |
|
|
|
2,495 |
|
|
|
|
|
|
|
|
|
|
Income from discontinued property operations |
|
$ |
121 |
|
|
$ |
1,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
6 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Effective for the Company on January 1, 2014, the accounting and
disclosure requirements for reporting discontinued operations were amended under GAAP. The amended guidance requires the Company to report asset disposals as discontinued operations only if such disposals represent a strategic shift that would have
a major effect on the Companys operations and financial results. In the first quarter of 2014, the Company classified three communities, containing 645 units, as held for sale, including one community containing 308 units in Houston, Texas and
two communities containing 337 units in New York, New York. Under the amended accounting guidance, the Company determined that these communities did not meet the criteria for discontinued operations reporting. The aggregate gross proceeds from the
sale of the three apartment communities was $341,750 and the Company recognized gains on sales of $187,825, or $163,751 net of non-controlling interest, in 2014. The results of operations of these communities were included in continuing operations
through their sale dates.
The revenues, expenses and net income, including gains on sales of real estate
assets and losses on early extinguishment of indebtedness, associated with these three communities for the three months and years ended December 31, 2014 and 2013 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year ended December
31, |
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
- |
|
|
$ |
5,806 |
|
|
$ |
14,003 |
|
|
$ |
22,610 |
|
Other property revenues |
|
|
- |
|
|
|
96 |
|
|
|
165 |
|
|
|
415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
- |
|
|
|
5,902 |
|
|
|
14,168 |
|
|
|
23,025 |
|
Property operating and maintenance expenses |
|
|
- |
|
|
|
(2,804) |
|
|
|
(7,011) |
|
|
|
(10,300) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
- |
|
|
|
3,098 |
|
|
|
7,157 |
|
|
|
12,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
- |
|
|
|
(1,223) |
|
|
|
(1,239) |
|
|
|
(4,873) |
|
Interest |
|
|
- |
|
|
|
(1,228) |
|
|
|
(3,474) |
|
|
|
(4,898) |
|
Amortization of deferred financing costs |
|
|
- |
|
|
|
(59) |
|
|
|
(158) |
|
|
|
(237) |
|
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
(14,070) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expenses |
|
|
- |
|
|
|
(2,510) |
|
|
|
(18,941) |
|
|
|
(10,008) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on sales of real estate assets |
|
|
- |
|
|
|
- |
|
|
|
187,825 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
- |
|
|
$ |
588 |
|
|
$ |
176,041 |
|
|
$ |
2,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, net of noncontrolling interest |
|
$ |
- |
|
|
$ |
568 |
|
|
$ |
153,456 |
|
|
$ |
2,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In conjunction with the apartment community sales discussed above, the Company prepaid
$120,000 of secured mortgage indebtedness in May 2014 and $82,627 of secured mortgage indebtedness encumbering two of the properties sold in September 2014 using the sale proceeds and available cash. In conjunction with these prepayments, the
Company recognized extinguishment losses of $18,357, or $16,620 net of noncontrolling interests, related to prepayment premiums and the write off of unamortized deferred loan costs for the year ended December 31, 2014.
6) |
Post Properties, Inc., through its wholly-owned subsidiaries, is the sole general partner, a limited partner and owns a majority interest in Post
Apartment Homes, L.P., the Operating Partnership, through which the Company conducts its operations. As of December 31, 2014, there were 54,630 Operating Partnership units outstanding, of which 54,509, or 99.8%, were owned by the Company.
|
7) |
Depreciation on consolidated real estate assets is net of the minority interest portion of depreciation on consolidated entities.
|
8) |
Since the Company does not add back the depreciation of non-real estate assets in its calculation of FFO, non-real estate related capital
expenditures of $314 and $131 for the three months and $3,194 and $1,357 for the years ended December 31, 2014 and 2013, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and
unitholders. |
9) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 46 and 133 for the three months and 91 and 172 for
years ended December 31, 2014 and 2013, respectively. Additionally, basic and diluted weighted average shares and units include the impact of non-vested shares and units totaling 128 and 120 for the three months and 125 and 120 for the years
ended December 31, 2014 and 2013, respectively, for the computation of FFO per share. Such non-vested shares and units are considered in the income per share computations under GAAP using the two-class method.
|
|
|
|
Supplemental Financial Data |
|
7 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
SAME STORE RESULTS
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results
The Company defines same store
communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by four communities that were sold in 2014 and 2013. 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 and Table 4 on page 26 for a year-to-date margin analysis. The operating performance and capital expenditures of the 48 communities
containing 17,714 apartment units which were fully stabilized as of January 1, 2013, are summarized in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
|
|
|
Year ended December
31, |
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change |
|
|
2014
|
|
|
2013
|
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
74,614 |
|
|
$ |
72,570 |
|
|
|
2.8% |
|
|
$ |
296,845 |
|
|
$ |
289,188 |
|
|
|
2.6% |
|
Utility reimbursements |
|
|
2,511 |
|
|
|
2,343 |
|
|
|
7.2% |
|
|
|
9,812 |
|
|
|
9,390 |
|
|
|
4.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
77,125 |
|
|
|
74,913 |
|
|
|
3.0% |
|
|
|
306,657 |
|
|
|
298,578 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
6,126 |
|
|
|
5,800 |
|
|
|
5.6% |
|
|
|
24,999 |
|
|
|
23,962 |
|
|
|
4.3% |
|
Utility expense |
|
|
3,888 |
|
|
|
3,936 |
|
|
|
(1.2)% |
|
|
|
15,785 |
|
|
|
15,551 |
|
|
|
1.5% |
|
Real estate taxes and fees |
|
|
11,752 |
|
|
|
11,048 |
|
|
|
6.4% |
|
|
|
47,746 |
|
|
|
44,203 |
|
|
|
8.0% |
|
Insurance expenses |
|
|
1,103 |
|
|
|
1,292 |
|
|
|
(14.6)% |
|
|
|
4,782 |
|
|
|
4,860 |
|
|
|
(1.6)% |
|
Building and grounds repairs and maintenance (1) |
|
|
4,001 |
|
|
|
4,215 |
|
|
|
(5.1)% |
|
|
|
17,059 |
|
|
|
16,702 |
|
|
|
2.1% |
|
Ground lease expense |
|
|
230 |
|
|
|
230 |
|
|
|
- |
|
|
|
920 |
|
|
|
920 |
|
|
|
- |
|
Other expenses |
|
|
1,838 |
|
|
|
1,806 |
|
|
|
1.8% |
|
|
|
7,302 |
|
|
|
7,668 |
|
|
|
(4.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property operating and maintenance expenses (excluding depreciation and amortization) |
|
|
28,938 |
|
|
|
28,327 |
|
|
|
2.2% |
|
|
|
118,593 |
|
|
|
113,866 |
|
|
|
4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income |
|
$ |
48,187 |
|
|
$ |
46,586 |
|
|
|
3.4% |
|
|
$ |
188,064 |
|
|
$ |
184,712 |
|
|
|
1.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income margin |
|
|
62.5% |
|
|
|
62.2% |
|
|
|
0.3% |
|
|
|
61.3% |
|
|
|
61.9% |
|
|
|
(0.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annually recurring |
|
$ |
3,566 |
|
|
$ |
2,820 |
|
|
|
26.5% |
|
|
$ |
12,986 |
|
|
$ |
13,074 |
|
|
|
(0.7)% |
|
Periodically recurring |
|
|
1,452 |
|
|
|
2,601 |
|
|
|
(44.2)% |
|
|
|
4,571 |
|
|
|
10,197 |
|
|
|
(55.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures (A) |
|
$ |
5,018 |
|
|
$ |
5,421 |
|
|
|
(7.4)% |
|
|
$ |
17,557 |
|
|
$ |
23,271 |
|
|
|
(24.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures per unit (A ÷ 17,714 units) |
|
$ |
283 |
|
|
$ |
306 |
|
|
|
(7.5)% |
|
|
$ |
991 |
|
|
$ |
1,314 |
|
|
|
(24.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly rental rate per unit (3) |
|
$ |
1,411 |
|
|
$ |
1,377 |
|
|
|
2.5% |
|
|
$ |
1,398 |
|
|
$ |
1,365 |
|
|
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross turnover (4) |
|
|
44.6% |
|
|
|
52.1% |
|
|
|
(7.5)% |
|
|
|
55.2% |
|
|
|
60.1% |
|
|
|
(4.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net turnover (5) |
|
|
40.3% |
|
|
|
45.0% |
|
|
|
(4.7)% |
|
|
|
48.9% |
|
|
|
52.6% |
|
|
|
(3.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage rent increase - new leases (6) |
|
|
2.8% |
|
|
|
3.1% |
|
|
|
(0.3)% |
|
|
|
3.1% |
|
|
|
3.1% |
|
|
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage rent increase - renewed leases (6) |
|
|
5.3% |
|
|
|
4.9% |
|
|
|
0.4% |
|
|
|
4.9% |
|
|
|
5.0% |
|
|
|
(0.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Building and ground repairs and maintenance includes $152 and $363 for the three months and $1,351 and $644 for the year ended December 31,
2014 and 2013, respectively, related to painting of communities. |
2) |
See Table 5 on page 27 for a reconciliation of these segment components of property capital expenditures to total annually recurring capital
expenditures and total periodically recurring capital expenditures as presented in the consolidated cash flow statements prepared under GAAP. |
3) |
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. See Table 2 on page 22 and Table 3 on page 24 for further information. |
4) |
Gross turnover represents the percentage of leases expiring during the period that are not renewed by the existing resident(s).
|
5) |
Net turnover is gross turnover decreased by the percentage of expiring leases where the resident(s) transfer to a new apartment unit in the same
community or in another Post® community. |
6) |
Percentage change is calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental
rate on that same unit. Accordingly, these percentage changes may differ from the change in the average monthly rental rate per unit due to the timing of move-ins and/or the term of the respective leases. |
|
|
|
Supplemental Financial Data |
|
8 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
SAME STORE RESULTS
(CONT)
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results by Market - Comparison of Fourth Quarter 2014 to Fourth Quarter 2013
(Increase (decrease) between periods)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
Market |
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI |
|
|
(1) |
|
Average Economic Occupancy |
|
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI |
|
|
(1) |
|
Average Economic Occupancy |
|
Atlanta |
|
|
5.4% |
|
|
|
|
|
5.2% |
|
|
|
|
|
5.6% |
|
|
|
|
|
0.3% |
|
|
|
5.2% |
|
|
|
|
|
4.2% |
|
|
|
|
|
5.9% |
|
|
|
|
|
0.4% |
|
Dallas |
|
|
3.4% |
|
|
|
|
|
7.7% |
|
|
|
|
|
0.3% |
|
|
|
|
|
0.9% |
|
|
|
3.1% |
|
|
|
|
|
6.1% |
|
|
|
|
|
0.9% |
|
|
|
|
|
0.7% |
|
Houston |
|
|
0.8% |
|
|
|
|
|
8.4% |
|
|
|
|
|
(4.0)% |
|
|
|
|
|
(4.5)% |
|
|
|
4.0% |
|
|
|
|
|
11.6% |
|
|
|
|
|
(0.7)% |
|
|
|
|
|
(1.3)% |
|
Austin |
|
|
0.9% |
|
|
|
|
|
(1.8)% |
|
|
|
|
|
3.0% |
|
|
|
|
|
(1.0)% |
|
|
|
2.3% |
|
|
|
|
|
4.7% |
|
|
|
|
|
0.4% |
|
|
|
|
|
(0.8)% |
|
Washington, D.C. |
|
|
(1.2)% |
|
|
|
|
|
(0.8)% |
|
|
|
|
|
(1.4)% |
|
|
|
|
|
0.3% |
|
|
|
(1.2)% |
|
|
|
|
|
4.2% |
|
|
|
|
|
(3.8)% |
|
|
|
|
|
0.0% |
|
Tampa |
|
|
3.5% |
|
|
|
|
|
(10.5)% |
|
|
|
|
|
11.3% |
|
|
|
|
|
0.6% |
|
|
|
2.8% |
|
|
|
|
|
1.7% |
|
|
|
|
|
3.4% |
|
|
|
|
|
0.3% |
|
Orlando |
|
|
1.1% |
|
|
|
|
|
2.7% |
|
|
|
|
|
0.3% |
|
|
|
|
|
1.1% |
|
|
|
(0.9)% |
|
|
|
|
|
2.4% |
|
|
|
|
|
(2.7)% |
|
|
|
|
|
0.5% |
|
Charlotte |
|
|
3.8% |
|
|
|
|
|
(3.7)% |
|
|
|
|
|
7.4% |
|
|
|
|
|
0.5% |
|
|
|
2.7% |
|
|
|
|
|
(1.6)% |
|
|
|
|
|
4.8% |
|
|
|
|
|
0.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
3.0% |
|
|
|
|
|
2.2% |
|
|
|
|
|
3.4% |
|
|
|
|
|
0.4% |
|
|
|
2.7% |
|
|
|
|
|
4.2% |
|
|
|
|
|
1.8% |
|
|
|
|
|
0.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
Same Store Occupancy by Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment
Units |
|
|
% of NOI
Three months ended December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical Occupancy
at December 31, 2014 (2) |
|
|
Avg. Rental Rate Per Unit Three Months Ended December 31, 2014 (3) |
|
|
|
|
|
Average Economic |
|
|
Average Economic |
|
|
|
|
|
|
|
Occupancy (1) |
|
|
Occupancy (1) |
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
Market |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
Atlanta |
|
|
5,065 |
|
|
|
27.5% |
|
|
|
97.0% |
|
|
|
96.7% |
|
|
|
97.0% |
|
|
|
96.6% |
|
|
|
95.8% |
|
|
$ |
1,362 |
|
Dallas |
|
|
4,725 |
|
|
|
21.3% |
|
|
|
96.3% |
|
|
|
95.4% |
|
|
|
96.1% |
|
|
|
95.4% |
|
|
|
94.5% |
|
|
|
1,254 |
|
Houston |
|
|
529 |
|
|
|
2.7% |
|
|
|
92.2% |
|
|
|
96.7% |
|
|
|
95.7% |
|
|
|
97.0% |
|
|
|
93.2% |
|
|
|
1,438 |
|
Austin |
|
|
637 |
|
|
|
3.7% |
|
|
|
95.4% |
|
|
|
96.4% |
|
|
|
95.4% |
|
|
|
96.2% |
|
|
|
93.1% |
|
|
|
1,566 |
|
Washington, D.C. |
|
|
2,301 |
|
|
|
17.6% |
|
|
|
93.6% |
|
|
|
93.3% |
|
|
|
93.5% |
|
|
|
93.5% |
|
|
|
92.6% |
|
|
|
1,855 |
|
Tampa |
|
|
2,111 |
|
|
|
13.5% |
|
|
|
97.1% |
|
|
|
96.5% |
|
|
|
97.2% |
|
|
|
96.9% |
|
|
|
95.5% |
|
|
|
1,434 |
|
Orlando |
|
|
598 |
|
|
|
3.8% |
|
|
|
98.0% |
|
|
|
96.9% |
|
|
|
97.1% |
|
|
|
96.6% |
|
|
|
98.2% |
|
|
|
1,488 |
|
Charlotte |
|
|
1,748 |
|
|
|
9.9% |
|
|
|
96.0% |
|
|
|
95.5% |
|
|
|
96.4% |
|
|
|
96.2% |
|
|
|
95.1% |
|
|
|
1,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
17,714 |
|
|
|
100.0% |
|
|
|
96.0% |
|
|
|
95.6% |
|
|
|
96.1% |
|
|
|
95.7% |
|
|
|
94.8% |
|
|
$ |
1,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. Gross potential rent is defined as the sum of the gross actual rates for leased units and the anticipated rental rates for unoccupied units. 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 95.5% and 95.1% for the three months and 95.6% and 95.2% for the year ended December 31, 2014 and 2013,
respectively. For the three months ended December 31, 2014 and 2013, net concessions were $192 and $218, respectively, and employee discounts were $170 and $151, respectively. For the years ended December 31, 2014 and 2013, net concessions
were $796 and $955, respectively, and employee discounts were $633 and $596, respectively. |
2) |
Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage.
|
3) |
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. See Table 2 on page 22 and Table 3 on page 24 for further information. |
|
|
|
Supplemental Financial Data |
|
9 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
SAME STORE RESULTS
(CONT)
(In thousands, except per unit data) - (Unaudited)
Sequential Same Store Operating Results - Comparison of Fourth Quarter of 2014 to Third Quarter of
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
December 31, 2014 |
|
|
September 30,
2014 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
74,614 |
|
|
$ |
75,230 |
|
|
|
(0.8)% |
|
Utility reimbursements |
|
|
2,511 |
|
|
|
2,483 |
|
|
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
77,125 |
|
|
|
77,713 |
|
|
|
(0.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
6,126 |
|
|
|
6,359 |
|
|
|
(3.7)% |
|
Utility expense |
|
|
3,888 |
|
|
|
4,371 |
|
|
|
(11.1)% |
|
Real estate taxes and fees |
|
|
11,752 |
|
|
|
12,112 |
|
|
|
(3.0)% |
|
Insurance expenses |
|
|
1,103 |
|
|
|
1,225 |
|
|
|
(10.0)% |
|
Building and grounds repairs and maintenance (1) |
|
|
4,001 |
|
|
|
4,020 |
|
|
|
(0.5)% |
|
Ground lease expense |
|
|
230 |
|
|
|
230 |
|
|
|
0.0% |
|
Other expenses |
|
|
1,838 |
|
|
|
1,924 |
|
|
|
(4.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property operating and maintenance expenses (excluding depreciation and amortization) |
|
|
28,938 |
|
|
|
30,241 |
|
|
|
(4.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income (2) |
|
$ |
48,187 |
|
|
$ |
47,472 |
|
|
|
1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average economic occupancy |
|
|
96.0% |
|
|
|
96.6% |
|
|
|
(0.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly rental rate per unit |
|
$ |
1,411 |
|
|
$ |
1,407 |
|
|
|
0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Building and grounds repairs and maintenance includes $152 and $7 for the three months ended December 31, 2014 and September 30, 2014,
respectively, related to painting of communities. |
2) |
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. |
Sequential Same Store Operating Results by Market - Comparison of
Fourth Quarter of 2014 to Third Quarter of 2014
(Increase (decrease) between periods)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI
|
|
|
(1) |
|
Average Economic Occupancy |
|
Atlanta |
|
|
0.2% |
|
|
|
|
|
(0.8)% |
|
|
|
|
|
0.9% |
|
|
|
|
|
(0.4)% |
|
Dallas |
|
|
(0.5)% |
|
|
|
|
|
(0.4)% |
|
|
|
|
|
(0.6)% |
|
|
|
|
|
(0.5)% |
|
Houston |
|
|
(4.1)% |
|
|
|
|
|
(2.2)% |
|
|
|
|
|
(5.3)% |
|
|
|
|
|
(4.0)% |
|
Austin |
|
|
(1.1)% |
|
|
|
|
|
(8.1)% |
|
|
|
|
|
4.6% |
|
|
|
|
|
(0.6)% |
|
Washington, D.C. |
|
|
(2.4)% |
|
|
|
|
|
(6.2)% |
|
|
|
|
|
(0.4)% |
|
|
|
|
|
(0.7)% |
|
Tampa |
|
|
(0.3)% |
|
|
|
|
|
(15.4)% |
|
|
|
|
|
8.4% |
|
|
|
|
|
(0.6)% |
|
Orlando |
|
|
0.3% |
|
|
|
|
|
(7.7)% |
|
|
|
|
|
5.0% |
|
|
|
|
|
1.2% |
|
Charlotte |
|
|
(1.0)% |
|
|
|
|
|
(7.6)% |
|
|
|
|
|
2.2% |
|
|
|
|
|
(1.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
(0.8)% |
|
|
|
|
|
(4.3)% |
|
|
|
|
|
1.5% |
|
|
|
|
|
(0.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
Supplemental Financial Data |
|
10 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
DEBT SUMMARY
(In thousands) - (Unaudited)
Summary of
Outstanding Debt at December 31, 2014 - Consolidated
|
|
|
|
|
|
|
|
|
|
|
Type of Indebtedness |
|
|
|
Balance |
|
|
Percentage of Total Debt |
|
Weighted Average Rate (1) |
Unsecured fixed rate senior notes |
|
|
|
$ |
400,000 |
|
|
44.8% |
|
3.9% |
Unsecured bank term loan |
|
|
|
|
300,000 |
|
|
33.6% |
|
3.2% |
Secured fixed rate notes |
|
|
|
|
192,459 |
|
|
21.6% |
|
6.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
892,459 |
|
|
100.0% |
|
4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance |
|
|
Percentage of Total Debt |
|
Weighted Average Maturity (2) |
Total fixed rate debt |
|
|
|
$ |
892,459 |
|
|
100.0% |
|
4.6 |
Total variable rate debt - unhedged |
|
|
|
|
- |
|
|
0.0% |
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
$ |
892,459 |
|
|
100.0% |
|
4.6 |
|
|
|
|
|
|
|
|
|
|
|
Debt Maturities - Consolidated and Unconsolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
Unconsolidated Entities |
Aggregate debt maturities by year |
|
|
|
Amount |
|
|
|
|
Weighted Avg. Rate on Debt Maturities (1) |
|
Amount |
|
|
Company Share |
|
|
Weighted Avg. Rate on Debt Maturities (1) |
2015 |
|
|
|
$ |
2,922 |
|
|
|
|
6.0% |
|
$ |
- |
|
|
$ |
- |
|
|
- |
2016 |
|
|
|
|
3,071 |
|
|
|
|
6.0% |
|
|
- |
|
|
|
- |
|
|
- |
2017 |
|
|
|
|
153,296 |
|
|
(3) |
|
4.8% |
|
|
85,723 |
|
|
|
21,431 |
|
|
5.6% |
2018 |
|
|
|
|
303,502 |
|
|
(4) |
|
3.3% |
|
|
41,000 |
|
|
|
10,250 |
|
|
5.7% |
2019 |
|
|
|
|
179,668 |
|
|
|
|
6.0% |
|
|
51,000 |
|
|
|
17,850 |
|
|
3.5% |
Thereafter |
|
|
|
|
250,000 |
|
|
|
|
3.4% |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
892,459 |
|
|
|
|
4.1% |
|
$ |
177,723 |
|
|
$ |
49,531 |
|
|
5.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Statistics
|
|
|
|
|
|
|
Year ended
December 31, |
|
|
2014 |
|
2013 |
Interest coverage ratio (5)(6) |
|
4.7x |
|
4.2x |
Interest coverage ratio (including capitalized interest) (5)(6) |
|
4.4x |
|
3.9x |
|
|
|
Fixed charge coverage ratio (5)(7) |
|
4.3x |
|
3.9x |
Fixed charge coverage ratio (including capitalized interest) (5)(7) |
|
4.1x |
|
3.6x |
|
|
|
Total debt to annualized income available for debt service ratio (8) |
|
4.7x |
|
5.8x |
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt)
(9) |
|
30.0% |
|
35.5% |
|
|
|
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners share of
debt) (9) |
|
31.4% |
|
36.8% |
1) |
Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at December 31, 2014 are based
on the debt outstanding at that date. Weighted average interest rate of the unsecured bank term loan represents the effective fixed interest rate based on outstanding borrowings as of December 31, 2014, after considering the impact of interest
rate swap arrangements that hedge this debt. |
2) |
Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.
|
3) |
Includes $0 outstanding on unsecured revolving lines of credit maturing in 2016. At December 31, 2014, the Companys lines of credit bear
interest at LIBOR plus 1.225%. In January 2015, the lines of credit were refinanced and the maturity date was extended to January 2019, and includes a one-year extension option to January 2020. The interest rate on the amended lines of credit were
reduced to LIBOR plus 1.05%. |
4) |
In January 2015, the unsecured bank term loan was refinanced and the maturity date was extended to January 2020. The blended effective interest
rate, after considering the impact of interest rate swap arrangements that hedge this debt, was reduced from 3.24% to 2.69% through January 2018, the termination date of the interest rate swaps. Thereafter, the amended term loan bears interest at
the stated rate of LIBOR plus 1.15%. |
5) |
Calculated for the years ended December 31, 2014 and 2013. |
6) |
Interest coverage ratio is defined as net income available for debt service divided by interest expense. The calculation of the interest coverage
ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and interest expense to consolidated interest expense is included in Table 7 on page 28. |
7) |
Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred
shareholders. The calculation of the fixed charge coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to net income and fixed charges to consolidated interest expense plus dividends to preferred
shareholders is included in Table 7 on page 28. |
8) |
A computation of this ratio is included in Table 7 on page 28. |
9) |
A computation of these debt ratios is included in Table 6 on page 27. |
|
|
|
Supplemental Financial Data |
|
11 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
DEBT SUMMARY (CONT)
(In thousands) - (Unaudited)
Senior Unsecured Public Notes Debt Ratings
Moodys - Baa2 (stable)
Standard & Poors - BBB (stable)
Financial Debt Covenants - Senior Unsecured Public Notes
|
|
|
Covenant requirement (1) |
|
As of December 31, 2014 |
|
|
Consolidated Debt to Total Assets cannot exceed 60% |
|
28% |
Secured Debt to Total Assets cannot exceed 40% |
|
6% |
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1 |
|
4.3x |
Consolidated Income Available for Debt Service Charge must be at least 1.5/1 |
|
4.7x |
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 is detailed below. |
|
|
|
|
|
Ratio of Consolidated Debt to Total Assets |
|
|
|
|
|
|
As of December 31, 2014 |
|
Consolidated debt, per balance sheet (A) |
|
$ |
892,459 |
|
|
|
|
|
|
Total assets, as defined (B) (Table A) |
|
$ |
3,238,638 |
|
|
|
|
|
|
Computed ratio (A÷B) |
|
|
28% |
|
|
|
|
|
|
Required ratio (cannot exceed) |
|
|
60% |
|
|
|
|
|
|
|
|
Ratio of Secured Debt to Total Assets |
|
|
|
|
|
|
Total secured debt (C) |
|
$ |
192,459 |
|
|
|
|
|
|
Computed ratio (C÷B) |
|
|
6% |
|
|
|
|
|
|
Required ratio (cannot exceed) |
|
|
40% |
|
|
|
|
|
|
|
|
Ratio of Total Unencumbered Assets to Unsecured Debt |
|
|
|
|
|
|
Consolidated debt, per balance sheet (A) |
|
$ |
892,459 |
|
Total secured debt (C) |
|
|
(192,459) |
|
|
|
|
|
|
Total unsecured debt (D) |
|
$ |
700,000 |
|
|
|
|
|
|
Total unencumbered assets, as defined (E) (Table A) |
|
$ |
3,025,934 |
|
|
|
|
|
|
Computed ratio (E÷D) |
|
|
4.3x |
|
|
|
|
|
|
Required minimum ratio |
|
|
1.5x |
|
|
|
|
|
|
|
|
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge
(Annualized) |
|
|
|
|
|
|
Consolidated Income Available for Debt Service, as defined (F) (Table B) |
|
$ |
201,813 |
|
|
|
|
|
|
Annual Debt Service Charge, as defined (G) (Table B) |
|
$ |
42,727 |
|
|
|
|
|
|
Computed ratio (F÷G) |
|
|
4.7x |
|
|
|
|
|
|
Required minimum ratio |
|
|
1.5x |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
12 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
DEBT SUMMARY (CONT)
(In thousands) - (Unaudited)
Table A
Calculation of Total Assets and Total Unencumbered Assets for Public Debt Covenant Computations
|
|
|
|
|
|
|
As
of December 31, 2014 |
|
Total real estate assets |
|
$ |
2,128,767 |
|
Add: |
|
|
|
|
Investments in and advances to unconsolidated real estate entities |
|
|
4,059 |
|
Accumulated depreciation |
|
|
937,310 |
|
Accumulated depreciation on assets held for sale |
|
|
207 |
|
Other tangible assets |
|
|
168,295 |
|
|
|
|
|
|
Total assets for public debt covenant computations |
|
|
3,238,638 |
|
Less: |
|
|
|
|
Encumbered real estate assets |
|
|
(208,645) |
|
Investments in and advances to unconsolidated real estate entities |
|
|
(4,059) |
|
|
|
|
|
|
Total unencumbered assets for public debt covenant computations |
|
$ |
3,025,934 |
|
|
|
|
|
|
Table B
Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge
|
|
|
|
|
Consolidated income available for debt service |
|
Year ended December 31, 2014 |
|
Net income |
|
$ |
238,183 |
|
Add: |
|
|
|
|
Depreciation |
|
|
84,759 |
|
Depreciation and amortization (company share)unconsolidated entities |
|
|
1,211 |
|
Amortization of deferred financing costs |
|
|
2,282 |
|
Interest expense |
|
|
40,286 |
|
Interest expense (company share)unconsolidated entities |
|
|
2,441 |
|
Other non-cash (income) expense, net |
|
|
4,233 |
|
Non-cash impairment charge |
|
|
450 |
|
Income tax expense (benefit), net |
|
|
(19) |
|
Net loss on extinguishment of indebtedness |
|
|
18,357 |
|
Less: |
|
|
|
|
Gains on sales of apartment communities |
|
|
(187,825) |
|
Gains on condominium sales activities, net |
|
|
(2,545) |
|
|
|
|
|
|
Consolidated income available for debt service |
|
$ |
201,813 |
|
|
|
|
|
|
|
|
Annual debt service charge |
|
|
|
|
Consolidated interest expense |
|
$ |
40,286 |
|
Interest expense (company share) - unconsolidated entities |
|
|
2,441 |
|
|
|
|
|
|
Debt service charge |
|
$ |
42,727 |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
13 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
SUMMARY OF APARTMENT COMMUNITIES
UNDER DEVELOPMENT AND
LAND HELD FOR
FUTURE INVESTMENT
(In millions, except units, square footage and acreage) - (Unaudited)
Communities Under Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community |
|
Location |
|
Number of Units |
|
|
Estimated Average Unit Size Sq. Ft. (1) |
|
|
Estimated Retail Sq. Ft. (1) |
|
|
Estimated Total Cost (2) |
|
|
Estimated Total Cost Per Sq. Ft. (3) |
|
|
Costs Incurred as of 12/31/2014 |
|
|
Quarter of First Units Available |
|
Estimated Quarter of Stabilized Occup. (4) |
|
Percent Leased (5) |
Substantially complete, in lease-up |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post 510 |
|
Houston, TX |
|
|
242 |
|
|
|
857 |
|
|
|
- |
|
|
$ |
34.4 |
|
|
$ |
166 |
|
|
$ |
34.4 |
|
|
1Q 2014 |
|
1Q 2015 |
|
91.7% |
Under construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Alexander, II |
|
Atlanta, GA |
|
|
340 |
|
|
|
830 |
|
|
|
- |
|
|
|
75.5 |
|
|
|
268 |
|
|
|
46.3 |
|
|
2Q 2015 |
|
4Q 2016 |
|
N/A |
Post Galleria |
|
Houston, TX |
|
|
388 |
|
|
|
867 |
|
|
|
- |
|
|
|
80.7 |
|
|
|
240 |
|
|
|
19.9 |
|
|
3Q 2016 |
|
4Q 2017 |
|
N/A |
Post Parkside at Wade, II |
|
Raleigh, NC |
|
|
391 |
|
|
|
872 |
|
|
|
- |
|
|
|
53.0 |
|
|
|
155 |
|
|
|
10.5 |
|
|
1Q 2016 |
|
2Q 2017 |
|
N/A |
Post South Lamar, II |
|
Austin, TX |
|
|
344 |
|
|
|
734 |
|
|
|
5,800 |
|
|
|
65.6 |
|
|
|
254 |
|
|
|
10.3 |
|
|
1Q 2017 |
|
2Q 2018 |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
1,705 |
|
|
|
|
|
|
|
5,800 |
|
|
$ |
309.2 |
|
|
|
|
|
|
$ |
121.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communities stabilized (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Soho Square |
|
Tampa, FL |
|
|
231 |
|
|
|
880 |
|
|
|
10,556 |
|
|
$ |
39.3 |
|
|
|
184 |
|
|
$ |
38.1 |
|
|
2Q 2014 |
|
4Q 2014 |
|
100.0% |
1) |
Square footage amounts are approximate. Actual square footage may vary. |
2) |
To the extent that developments contain a retail component, total estimated cost includes estimated first generation tenant improvements and leasing
commissions. For stabilized apartment communities, remaining unfunded construction costs include first generation retail tenant improvements and leasing commissions. |
3) |
The estimated total cost per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage
amounts used are approximate. Actual amounts may vary. |
4) |
The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy or (ii) one year after
completion of construction. |
5) |
Represents unit status as of January 30, 2015. |
6) |
This community reached stabilized occupancy in the fourth quarter 2014. |
Land Held for Future Investment
The following are land positions
(including pre-development costs incurred to date) that the Company currently holds. There can be no assurance that projects held for future investment will be developed in the future or at all.
|
|
|
|
|
|
|
|
|
|
|
Project |
|
Metro Area
|
|
Carrying Value At December 31,
2014 (in thousands) |
|
|
Estimated Usable
Acreage |
|
Centennial Park |
|
Atlanta, GA |
|
$ |
18,858 |
|
|
|
5.6 |
|
Frisco Bridges II |
|
Dallas, TX |
|
|
5,480 |
|
|
|
5.4 |
|
Wade |
|
Raleigh, NC |
|
|
3,297 |
|
|
|
9.7 |
|
Midtown |
|
Atlanta, GA |
|
|
2,775 |
|
|
|
1.0 |
|
Other land parcels |
|
Atlanta, GA |
|
|
2,787 |
|
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Land Held for Future Investment |
|
|
|
$ |
33,197 |
|
|
|
31.9 |
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION/DISPOSITION ACTIVITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Name |
|
Location |
|
Quarter Acquired / Disposed |
|
Units |
|
Est. Avg. Unit
Size Sq. Ft. (1) |
|
Retail
Sq. Ft. |
|
Year Completed/ Renovated |
|
Gross Price (thousands) (2) |
|
Est. Total Price
Per Sq. Ft. (3) |
|
Cap Rate |
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Lakeside |
|
Orlando, FL |
|
Q2 2013 |
|
300 |
|
1,070 |
|
- |
|
2013 |
|
$ 48,500 |
|
$151 |
|
5.2%(4) |
Dispositions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Renaissance® |
|
Atlanta, GA |
|
Q4 2013 |
|
342 |
|
914 |
|
- |
|
1992-94 |
|
$ 47,500 |
|
$152 |
|
5.4%(5) |
Post Rice Lofts |
|
Houston, TX |
|
Q2 2014 |
|
308 |
|
904 |
|
44,734 |
|
1913 / 1998 |
|
71,750 |
|
$222 |
|
5.3%(5) |
Post Luminaria TM (6) |
|
New York, NY |
|
Q3 2014 |
|
138 |
|
721 |
|
9,386 |
|
2002 |
|
111,500 |
|
$1,024 |
|
3.1%(5) |
Post Toscana TM |
|
New York, NY |
|
Q3 2014 |
|
199 |
|
817 |
|
11,700 |
|
2003 |
|
158,500 |
|
$909 |
|
2.7%(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 389,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Square footage amounts are approximate. Actual square footage may vary. |
2) |
Excludes transaction costs and planned up front capital expenditures, if any. |
3) |
The estimated total price per square foot is calculated using net rentable residential and retail square feet, where applicable. Square footage
amounts used are approximate. Actual amounts may vary. |
4) |
Based on projected first twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit). Also
includes the impact of transaction costs and planned up front capital expenditures, if any. |
5) |
Based on trailing twelve-month net operating income after adjustments for management fee (3%) and capital reserves ($300/unit).
|
6) |
The Company owned 68% of Post Luminaria. |
|
|
|
Supplemental Financial Data |
|
14 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
CAPITALIZED COSTS SUMMARY
(In thousands) - (Unaudited)
The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development, construction
and rehabilitation of 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.
The Company capitalizes interest, real estate
taxes, and certain internal personnel and associated costs related to apartment communities under development, construction, and major rehabilitation. 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 and sales
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 acquisition and development improvements and other capitalized expenditures for the three months
and years ended December 31, 2014 and 2013 is provided below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
New community development and acquisition activity (1) |
|
$ |
22,136 |
|
|
$ |
18,127 |
|
|
$ |
71,104 |
|
|
$ |
165,286 |
|
Periodically recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community rehabilitation and other revenue generating improvements (2) |
|
|
2,116 |
|
|
|
1,752 |
|
|
|
7,677 |
|
|
|
5,965 |
|
Other community additions and improvements (3) |
|
|
2,085 |
|
|
|
4,676 |
|
|
|
8,137 |
|
|
|
15,893 |
|
Annually recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carpet replacements and other community additions and improvements (4) |
|
|
3,817 |
|
|
|
3,180 |
|
|
|
13,943 |
|
|
|
14,673 |
|
Corporate additions and improvements |
|
|
314 |
|
|
|
131 |
|
|
|
3,914 |
|
|
|
1,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
30,468 |
|
|
$ |
27,866 |
|
|
$ |
104,775 |
|
|
$ |
203,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized interest |
|
$ |
769 |
|
|
$ |
840 |
|
|
$ |
3,115 |
|
|
$ |
3,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized development and associated costs (5) |
|
$ |
1,009 |
|
|
$ |
737 |
|
|
$ |
2,794 |
|
|
$ |
2,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Reflects aggregate community acquisition and development costs, exclusive of the change in construction payables and assumed debt, if any, between
years. |
2) |
Represents expenditures for community rehabilitations and other unit upgrade costs that enhance the rental value of such units.
|
3) |
Represents community improvement expenditures (e.g. property upgrades) that generally occur less frequently than on an annual basis.
|
4) |
Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis.
|
5) |
Reflects internal personnel and associated costs capitalized to construction and development activities. |
|
|
|
Supplemental Financial Data |
|
15 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
INVESTMENTS IN UNCONSOLIDATED REAL
ESTATE ENTITIES
(In thousands) - (Unaudited)
The Company holds investments in limited liability companies (the Property LLCs) with institutional investors and accounts for
its investments in these Property LLCs using the equity method of accounting. A summary of non-financial and financial information for the Property LLCs is provided below.
|
|
|
|
|
|
|
|
|
Non-Financial Data |
Joint Venture Property |
|
Location |
|
Property
Type |
|
# of Units |
|
Ownership
Interest |
Post Collier Hills® (1) |
|
Atlanta, GA |
|
Apartments |
|
396 |
|
25% |
Post Crest® (1) |
|
Atlanta, GA |
|
Apartments |
|
410 |
|
25% |
Post Lindbergh® (1) |
|
Atlanta, GA |
|
Apartments |
|
396 |
|
25% |
Post Massachusetts Avenue |
|
Washington, D.C. |
|
Apartments |
|
269 |
|
35% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data |
|
|
|
As of December 31, 2014 |
|
|
Three months ended December 31, 2014 |
|
|
Year ended December 31,
2014 |
|
Joint Venture Property |
|
Gross Investment in Real Estate (6) |
|
|
Mortgage Notes
Payable |
|
|
Entity
Equity |
|
|
Companys Equity Investment |
|
|
Entity NOI |
|
|
Companys Equity in Income (Loss) |
|
|
Mgmt. Fees & Other |
|
|
Entity NOI |
|
|
Companys Equity in Income (Loss) |
|
|
Mgmt. Fees &
Other |
|
Post Collier Hills® (1) |
|
$ |
56,316 |
|
|
$ |
39,565 |
(2) |
|
$ |
7,889 |
|
|
$ |
(4,784) |
(1) |
|
$ |
630 |
|
|
$ |
(16) |
|
|
|
|
|
|
$ |
2,748 |
|
|
$ |
(3) |
|
|
|
|
|
Post Crest® (1) |
|
|
65,206 |
|
|
|
46,158 |
(2) |
|
|
8,244 |
|
|
|
(7,310) |
(1) |
|
|
876 |
|
|
|
19 |
|
|
|
|
|
|
|
3,363 |
|
|
|
49 |
|
|
|
|
|
Post Lindbergh® (1) |
|
|
62,870 |
|
|
|
41,000 |
(3) |
|
|
12,689 |
|
|
|
(4,530) |
(1) |
|
|
692 |
|
|
|
(14) |
|
|
|
|
|
|
|
2,889 |
|
|
|
(21) |
|
|
|
|
|
Post Massachusetts Avenue |
|
|
73,254 |
|
|
|
51,000 |
(4) |
|
|
3,993 |
|
|
|
4,059 |
|
|
|
1,739 |
|
|
|
391 |
|
|
|
|
|
|
|
7,420 |
|
|
|
1,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
257,646 |
|
|
$ |
177,723 |
|
|
$ |
32,815 |
|
|
$ |
(12,565) |
|
|
$ |
3,937 |
|
|
$ |
380 |
|
|
$ |
218 |
(5) |
|
$ |
16,420 |
|
|
$ |
1,788 |
|
|
$ |
866 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The Companys investment in the 25% owned Property LLC resulted from the transfer of three previously owned apartment communities to the
Property LLC co-owned with an institutional investor. The assets, liabilities and members equity of the Property LLC were recorded at fair value based on agreed-upon amounts contributed to the venture. The credit investments in the
Companys 25% owned Property LLC resulted from financing proceeds distributed in excess of the Companys historical cost-basis investment. These credit investments are reflected in consolidated liabilities on the Companys
consolidated balance sheet. |
2) |
These notes bear interest at a fixed rate of 5.63% and mature in June 2017. |
3) |
This note bears interest at a fixed rate of 5.71% and matures in January 2018, at which time it will be automatically extended for a one-year term
at a variable interest rate. |
4) |
This note bears interest at a fixed rate of 3.5% and matures in February 2019. The note is prepayable without penalty beginning in February 2017.
|
5) |
Amounts include net property and asset management fees to the Company included in Other Revenues in the Companys consolidated
statements of operations. |
6) |
Represents GAAP basis net book value plus accumulated depreciation. |
|
|
|
Supplemental Financial Data |
|
16 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
NET ASSET VALUE SUPPLEMENTAL
INFORMATION (1)
(In thousands, except unit data, commercial square feet and stock price) - (Unaudited)
Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data |
|
Three months ended December 31, 2014 |
|
|
Adjustments |
|
|
As Adjusted
(3) |
|
Rental revenues |
|
$ |
87,390 |
|
|
$ |
(904) |
(2) |
|
$ |
86,486 |
|
Other property revenues |
|
|
5,107 |
|
|
|
(12) |
(2) |
|
|
5,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues (A) |
|
|
92,497 |
|
|
|
(916) |
|
|
|
91,581 |
|
Property operating & maintenance expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(excluding depreciation and amortization) (B) |
|
|
38,893 |
|
|
|
(4,752) |
(2) |
|
|
34,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property net operating income (Table 1) (A-B) |
|
$ |
53,604 |
|
|
$ |
3,836 |
|
|
$ |
57,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed property management fee |
|
|
|
|
|
|
|
|
|
|
|
|
(calculated at 3% of revenues) (A x 3%) |
|
|
|
|
|
|
|
|
|
|
(2,747) |
|
Assumed property capital expenditure reserve |
|
|
|
|
|
|
|
|
|
|
|
|
($300 per unit per year based on 19,981 units) |
|
|
|
|
|
|
|
|
|
|
(1,499) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted property net operating income |
|
|
|
|
|
|
|
|
|
$ |
53,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized property net operating income (C) |
|
|
|
|
|
|
|
|
|
$ |
212,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment units represented (D) |
|
|
22,994 |
|
|
|
(3,013) |
(2) |
|
|
19,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asset Data |
|
As of December 31, 2014 |
|
|
Adjustments |
|
|
As Adjusted |
|
Cash & equivalents |
|
$ |
140,512 |
|
|
$ |
- |
|
|
$ |
140,512 |
|
Real estate assets under construction, at cost (4) |
|
|
86,971 |
|
|
|
72,503 |
(4) |
|
|
159,474 |
|
Land held for future investment |
|
|
33,197 |
|
|
|
- |
|
|
|
33,197 |
|
Assets held for sale (5) |
|
|
672 |
|
|
|
(672) |
(5) |
|
|
- |
|
Investments in and advances to unconsolidated real estate entities (5) |
|
|
4,059 |
|
|
|
(4,059) |
(5) |
|
|
- |
|
Restricted cash and other assets |
|
|
33,343 |
|
|
|
- |
|
|
|
33,343 |
|
Cash & other assets of unconsolidated apartment entities (6) |
|
|
5,490 |
|
|
|
(3,928) |
(6) |
|
|
1,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (E) |
|
$ |
304,244 |
|
|
$ |
63,844 |
|
|
$ |
368,088 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liability Data |
|
|
|
|
|
|
|
|
|
Indebtedness |
|
$ |
892,459 |
|
|
$ |
- |
|
|
$ |
892,459 |
|
Investments in unconsolidated real estate entities (5) |
|
|
16,624 |
|
|
|
(16,624) |
(5) |
|
|
- |
|
Other liabilities (including noncontrolling interests) (7) |
|
|
109,669 |
|
|
|
(8,777) |
(7) |
|
|
100,892 |
|
Total liabilities of unconsolidated apartment entities (8) |
|
|
181,168 |
|
|
|
(130,655) |
(8) |
|
|
50,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (F) |
|
$ |
1,199,920 |
|
|
$ |
(156,056) |
|
|
$ |
1,043,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2014 |
|
|
|
# Shares/Units |
|
|
Stock Price |
|
|
Implied Value |
|
Liquidation value of preferred shares (G) |
|
|
|
|
|
|
|
|
|
$ |
43,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
54,509 |
|
|
|
|
|
|
|
|
|
Common units outstanding |
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (H) |
|
|
54,630 |
|
|
$ |
58.77 |
|
|
$ |
3,210,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied market value of Company gross real estate assets (I) = (F+G+H-E) |
|
|
|
|
|
|
|
|
|
$ |
3,929,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied Portfolio Capitalization Rate (C÷I) |
|
|
|
|
|
|
|
|
|
|
5.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income (NOI), which
is a supplemental non-GAAP financial measure that the Company uses internally to calculate Net Asset Value (NAV). These measures, as adjusted, are also non-GAAP financial measures. With the exception of NOI, 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. |
The Company presents NOI for the fourth quarter ended December 31, 2014, for properties stabilized as of
October 1, 2014, so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of October 1, 2014, are presented at full undepreciated cost. Other tangible assets, total
liabilities and the liquidation value of preferred shares are also presented.
|
|
|
Supplemental Financial Data |
|
17 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
2) |
The following table summarizes the adjustments made to the components of property net operating income for the three months ended December 31,
2014, to adjust property net operating income to the Companys share for fully stabilized communities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Revenue |
|
|
Other Revenue |
|
|
Expenses |
|
|
Units |
|
Communities in lease-up |
|
$ |
(1,572) |
|
|
$ |
(91) |
|
|
$ |
(656) |
|
|
|
(1,936) |
|
Company share of unconsolidated entities |
|
|
1,923 |
|
|
|
124 |
|
|
|
805 |
|
|
|
(1,077) |
|
Corporate property management expenses |
|
|
- |
|
|
|
- |
|
|
|
(3,463) |
|
|
|
- |
|
Corporate apartments and other |
|
|
(1,255) |
|
|
|
(45) |
|
|
|
(1,438) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(904) |
|
|
$ |
(12) |
|
|
$ |
(4,752) |
|
|
|
(3,013) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3) |
The following table summarizes the Companys share of the As Adjusted components of property net operating income, apartment units
and commercial square feet by market for the three months ended December 31, 2014: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and Other Revenues |
|
|
Property Operating Maintenance Expenses (ex. Depr. and Amort.) |
|
|
Property
Net Operating Income (NOI) |
|
|
Percentage of Total NOI |
|
|
Apartment Units
/ Commercial Sq. Ft. |
|
Atlanta |
|
$ |
22,927 |
|
|
$ |
8,925 |
|
|
$ |
14,002 |
|
|
|
24.3% |
|
|
|
5,365 |
|
Dallas |
|
|
18,205 |
|
|
|
7,957 |
|
|
|
10,248 |
|
|
|
17.8% |
|
|
|
4,725 |
|
Houston |
|
|
2,881 |
|
|
|
1,123 |
|
|
|
1,758 |
|
|
|
3.1% |
|
|
|
653 |
|
Austin |
|
|
4,369 |
|
|
|
1,927 |
|
|
|
2,442 |
|
|
|
4.3% |
|
|
|
935 |
|
Washington, D.C. |
|
|
16,152 |
|
|
|
5,349 |
|
|
|
10,803 |
|
|
|
18.8% |
|
|
|
2,739 |
|
Tampa |
|
|
9,416 |
|
|
|
2,930 |
|
|
|
6,486 |
|
|
|
11.3% |
|
|
|
2,111 |
|
Orlando |
|
|
5,864 |
|
|
|
2,040 |
|
|
|
3,824 |
|
|
|
6.7% |
|
|
|
1,308 |
|
Charlotte |
|
|
6,822 |
|
|
|
2,047 |
|
|
|
4,775 |
|
|
|
8.3% |
|
|
|
1,748 |
|
Raleigh |
|
|
1,171 |
|
|
|
447 |
|
|
|
724 |
|
|
|
1.3% |
|
|
|
397 |
|
Commercial |
|
|
3,774 |
|
|
|
1,396 |
|
|
|
2,378 |
|
|
|
4.1% |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
91,581 |
|
|
$ |
34,141 |
|
|
$ |
57,440 |
|
|
|
100.0% |
|
|
|
19,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approximate commercial Sq. Ft. |
|
|
|
|
|
|
|
679,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4) |
The As Adjusted amount represents the CIP balance, adjusted for costs of completed apartment units, as follows:
|
|
|
|
|
|
|
|
|
|
Post 510 |
|
$ 34,381 |
|
|
Post Soho Square |
|
|
38,122 |
|
|
Post Alexander - Phase II |
|
|
46,260 |
|
|
Post Parkside at Wade - Phase II |
|
|
10,512 |
|
|
Post Galleria |
|
|
19,913 |
|
|
Post South Lamar - Phase II |
|
|
10,286 |
|
|
|
|
|
|
|
|
|
|
$ |
159,474 |
|
|
|
|
|
|
|
|
5) |
The adjustments reflect reductions for assets held for sale and the investments in unconsolidated entities, as the net operating income of the held
for sale assets and the Companys respective share of net operating income of such investments in unconsolidated entities is included in the adjusted net operating income reflected above. |
6) |
The As of December 31, 2014 amount represents cash and other assets of unconsolidated apartment entities. The adjustment includes a
reduction for the venture partners respective share of cash and other assets. The As Adjusted amount represents the Companys respective share of the cash and other assets of unconsolidated apartment entities.
|
7) |
The As of December 31, 2014 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 Companys balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense of
$8,777. |
8) |
The As of December 31, 2014 amount represents total liabilities of unconsolidated apartment entities. The adjustment represents a
reduction for the venture partners respective share of liabilities. The As Adjusted amount represents the Companys respective share of liabilities of unconsolidated apartment entities. |
|
|
|
Supplemental Financial Data |
|
18 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
NON-GAAP FINANCIAL MEASURES
AND OTHER DEFINED TERMS
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
Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures and certain debt statistics and ratios. 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 OperationsThe 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 operating property, plus
depreciation and amortization of real estate assets, non-cash impairment charges on depreciable real estate, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO
presented in the Companys 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 Companys 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 Companys 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 OperationsThe Company also uses adjusted funds from operations (AFFO)
as an operating measure. AFFO is defined as FFO less operating capital expenditures after adjusting for the impact of non-cash straight-line long-term ground lease expense, non-cash impairment charges, debt extinguishment gains (losses) and
preferred stock redemption costs. 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 REITs 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 available to common shareholders is the most directly comparable GAAP measure to AFFO.
Property Net Operating IncomeThe 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 REITs 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.
|
|
|
Supplemental Financial Data |
|
19 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Same Store Capital ExpendituresThe Company uses same
store annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The Company believes that
same store annually recurring and periodically 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 Companys other operating segments consisting of newly stabilized communities, lease-up communities, held for sale communities, sold communities and commercial properties in addition to same store information.
Therefore, the Company believes that the Companys presentation of same store annually recurring and periodically 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 annually recurring and periodically recurring capital expenditures is the line on the Companys consolidated statements of cash flows entitled property capital expenditures, which
also includes revenue generating capital expenditures.
Debt Statistics and Debt RatiosThe
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) interest coverage ratios; (2) fixed charge coverage ratios; (3) total debt as a percentage of undepreciated real estate (adjusted for joint
venture partners share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (adjusted for joint venture partners 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; (8) a ratio of consolidated income available for debt service to annual debt service charge; and (9) a debt to annualized
income available for debt service ratio. A number of these debt statistics and ratios are derived from covenants found in the Companys debt agreements, including, among others, the Companys senior unsecured notes. In addition, the
Company presents these measures because the degree of leverage could affect the Companys 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 Companys liquidity.
The Company uses income available for debt service to calculate certain debt ratios and statistics. Income available for
debt service is defined as net income (loss) before interest, taxes, depreciation, amortization, gains on sales of real estate assets, non-cash impairment charges and other non-cash income and expenses. Income available for debt service is a
supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operating activities as determined under GAAP, and the Companys calculation thereof may not be
comparable to similar measures reported by other companies, including EBITDA or Adjusted EBITDA.
Property Operating Statistics The Company uses average economic occupancy, gross turnover, net turnover and percentage increases in rent for new and renewed leases as statistical
measures of property 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.
Gross turnover is defined as the percentage of leases expiring during the period that are not renewed by the existing residents. Net turnover is defined as gross turnover decreased by the percentage of expiring leases where the residents transfer to
a new apartment unit in the same community or in another Post® community. The percentage increases in rent for
new and renewed leases are calculated using the respective new or renewed rental rate as of the date of a new lease, as compared with the previous rental rate on that same unit.
|
|
|
Supplemental Financial Data |
|
20 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
RECONCILIATIONS OF SUPPLEMENTAL
NON-GAAP FINANCIAL MEASURES
Table 1Reconciliation of Same Store
Net Operating Income (NOI) to GAAP Net Income
(In thousands) - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
Year ended |
|
|
|
December 31,
2014 |
|
|
December 31,
2013 |
|
|
September 30,
2014 |
|
|
|
|
December 31,
2014 |
|
|
December 31,
2013 |
|
Total same store NOI |
|
$ |
48,187 |
|
|
$ |
46,586 |
|
|
$ |
47,472 |
|
|
|
|
$ |
188,064 |
|
|
$ |
184,712 |
|
Property NOI from held for sale and soldresidential |
|
|
- |
|
|
|
2,734 |
|
|
|
1,651 |
|
|
|
|
|
6,390 |
|
|
|
11,112 |
|
Property NOI from held for sale and soldcommercial |
|
|
- |
|
|
|
364 |
|
|
|
160 |
|
|
|
|
|
767 |
|
|
|
1,613 |
|
Property NOI from other operating segments |
|
|
5,417 |
|
|
|
4,279 |
|
|
|
5,269 |
|
|
|
|
|
18,640 |
|
|
|
9,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI |
|
|
53,604 |
|
|
|
53,963 |
|
|
|
54,552 |
|
|
|
|
|
213,861 |
|
|
|
206,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
41 |
|
|
|
10 |
|
|
|
78 |
|
|
|
|
|
135 |
|
|
|
77 |
|
Other revenues |
|
|
316 |
|
|
|
204 |
|
|
|
234 |
|
|
|
|
|
992 |
|
|
|
872 |
|
Depreciation |
|
|
(21,145) |
|
|
|
(21,914) |
|
|
|
(21,018) |
|
|
|
|
|
(84,759) |
|
|
|
(85,608) |
|
Interest expense |
|
|
(8,751) |
|
|
|
(11,424) |
|
|
|
(9,858) |
|
|
|
|
|
(40,286) |
|
|
|
(44,704) |
|
Amortization of deferred financing costs |
|
|
(429) |
|
|
|
(658) |
|
|
|
(588) |
|
|
|
|
|
(2,282) |
|
|
|
(2,573) |
|
General and administrative |
|
|
(5,020) |
|
|
|
(4,751) |
|
|
|
(4,784) |
|
|
|
|
|
(17,898) |
|
|
|
(17,245) |
|
Investment and development |
|
|
(206) |
|
|
|
(307) |
|
|
|
(555) |
|
|
|
|
|
(2,366) |
|
|
|
(1,755) |
|
Other investment costs |
|
|
(61) |
|
|
|
(85) |
|
|
|
(224) |
|
|
|
|
|
(768) |
|
|
|
(1,324) |
|
Severance, impairment and other |
|
|
(513) |
|
|
|
(436) |
|
|
|
(344) |
|
|
|
|
|
(2,266) |
|
|
|
(2,417) |
|
Gains on condominium sales activities, net |
|
|
683 |
|
|
|
476 |
|
|
|
1,052 |
|
|
|
|
|
2,545 |
|
|
|
27,944 |
|
Equity in income of unconsolidated real estate entities, net |
|
|
380 |
|
|
|
479 |
|
|
|
422 |
|
|
|
|
|
1,788 |
|
|
|
2,090 |
|
Other income (expense), net |
|
|
605 |
|
|
|
(195) |
|
|
|
(195) |
|
|
|
|
|
19 |
|
|
|
(839) |
|
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
- |
|
|
|
(14,070) |
|
|
|
|
|
(18,357) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, before gains on sales of real estate assets |
|
|
19,504 |
|
|
|
15,362 |
|
|
|
4,702 |
|
|
|
|
|
50,358 |
|
|
|
81,122 |
|
Gains on sales of real estate assets |
|
|
- |
|
|
|
- |
|
|
|
151,733 |
|
|
|
|
|
187,825 |
|
|
|
- |
|
Income from discontinued operations |
|
|
- |
|
|
|
28,501 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
29,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,504 |
|
|
$ |
43,863 |
|
|
$ |
156,435 |
|
|
|
|
$ |
238,183 |
|
|
$ |
110,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
21 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 2Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Q4 14 vs. Q4
13 % Change |
|
|
Q4 14 vs. Q3
14 % Change |
|
|
Q4 14 %
Same Store NOI |
|
|
|
December 31, 2014 |
|
|
December 31, 2013 |
|
|
September 30, 2014 |
|
|
|
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
21,807 |
|
|
$ |
20,682 |
|
|
$ |
21,762 |
|
|
|
5.4% |
|
|
|
0.2% |
|
|
|
|
|
Dallas |
|
|
18,205 |
|
|
|
17,604 |
|
|
|
18,297 |
|
|
|
3.4% |
|
|
|
(0.5)% |
|
|
|
|
|
Houston |
|
|
2,244 |
|
|
|
2,227 |
|
|
|
2,339 |
|
|
|
0.8% |
|
|
|
(4.1)% |
|
|
|
|
|
Austin |
|
|
3,018 |
|
|
|
2,990 |
|
|
|
3,052 |
|
|
|
0.9% |
|
|
|
(1.1)% |
|
|
|
|
|
Washington, D.C. |
|
|
12,836 |
|
|
|
12,990 |
|
|
|
13,156 |
|
|
|
(1.2)% |
|
|
|
(2.4)% |
|
|
|
|
|
Tampa |
|
|
9,416 |
|
|
|
9,100 |
|
|
|
9,448 |
|
|
|
3.5% |
|
|
|
(0.3)% |
|
|
|
|
|
Orlando |
|
|
2,777 |
|
|
|
2,747 |
|
|
|
2,770 |
|
|
|
1.1% |
|
|
|
0.3% |
|
|
|
|
|
Charlotte |
|
|
6,822 |
|
|
|
6,573 |
|
|
|
6,889 |
|
|
|
3.8% |
|
|
|
(1.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
77,125 |
|
|
|
74,913 |
|
|
|
77,713 |
|
|
|
3.0% |
|
|
|
(0.8)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance
expenses (exclusive of depreciation
and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
8,525 |
|
|
|
8,104 |
|
|
|
8,597 |
|
|
|
5.2% |
|
|
|
(0.8)% |
|
|
|
|
|
Dallas |
|
|
7,957 |
|
|
|
7,387 |
|
|
|
7,985 |
|
|
|
7.7% |
|
|
|
(0.4)% |
|
|
|
|
|
Houston |
|
|
929 |
|
|
|
857 |
|
|
|
950 |
|
|
|
8.4% |
|
|
|
(2.2)% |
|
|
|
|
|
Austin |
|
|
1,255 |
|
|
|
1,278 |
|
|
|
1,366 |
|
|
|
(1.8)% |
|
|
|
(8.1)% |
|
|
|
|
|
Washington, D.C. |
|
|
4,340 |
|
|
|
4,373 |
|
|
|
4,627 |
|
|
|
(0.8)% |
|
|
|
(6.2)% |
|
|
|
|
|
Tampa |
|
|
2,930 |
|
|
|
3,272 |
|
|
|
3,465 |
|
|
|
(10.5)% |
|
|
|
(15.4)% |
|
|
|
|
|
Orlando |
|
|
955 |
|
|
|
930 |
|
|
|
1,035 |
|
|
|
2.7% |
|
|
|
(7.7)% |
|
|
|
|
|
Charlotte |
|
|
2,047 |
|
|
|
2,126 |
|
|
|
2,216 |
|
|
|
(3.7)% |
|
|
|
(7.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
28,938 |
|
|
|
28,327 |
|
|
|
30,241 |
|
|
|
2.2% |
|
|
|
(4.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
13,282 |
|
|
|
12,578 |
|
|
|
13,165 |
|
|
|
5.6% |
|
|
|
0.9% |
|
|
|
27.5% |
|
Dallas |
|
|
10,248 |
|
|
|
10,217 |
|
|
|
10,312 |
|
|
|
0.3% |
|
|
|
(0.6)% |
|
|
|
21.3% |
|
Houston |
|
|
1,315 |
|
|
|
1,370 |
|
|
|
1,389 |
|
|
|
(4.0)% |
|
|
|
(5.3)% |
|
|
|
2.7% |
|
Austin |
|
|
1,763 |
|
|
|
1,712 |
|
|
|
1,686 |
|
|
|
3.0% |
|
|
|
4.6% |
|
|
|
3.7% |
|
Washington, D.C. |
|
|
8,496 |
|
|
|
8,617 |
|
|
|
8,529 |
|
|
|
(1.4)% |
|
|
|
(0.4)% |
|
|
|
17.6% |
|
Tampa |
|
|
6,486 |
|
|
|
5,828 |
|
|
|
5,983 |
|
|
|
11.3% |
|
|
|
8.4% |
|
|
|
13.5% |
|
Orlando |
|
|
1,822 |
|
|
|
1,817 |
|
|
|
1,735 |
|
|
|
0.3% |
|
|
|
5.0% |
|
|
|
3.8% |
|
Charlotte |
|
|
4,775 |
|
|
|
4,447 |
|
|
|
4,673 |
|
|
|
7.4% |
|
|
|
2.2% |
|
|
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
48,187 |
|
|
$ |
46,586 |
|
|
$ |
47,472 |
|
|
|
3.4% |
|
|
|
1.5% |
|
|
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,362 |
|
|
$ |
1,296 |
|
|
$ |
1,347 |
|
|
|
5.1% |
|
|
|
1.1% |
|
|
|
|
|
Dallas |
|
|
1,254 |
|
|
|
1,228 |
|
|
|
1,247 |
|
|
|
2.1% |
|
|
|
0.5% |
|
|
|
|
|
Houston |
|
|
1,438 |
|
|
|
1,364 |
|
|
|
1,432 |
|
|
|
5.4% |
|
|
|
0.4% |
|
|
|
|
|
Austin |
|
|
1,566 |
|
|
|
1,544 |
|
|
|
1,576 |
|
|
|
1.4% |
|
|
|
(0.6)% |
|
|
|
|
|
Washington, D.C. |
|
|
1,855 |
|
|
|
1,875 |
|
|
|
1,876 |
|
|
|
(1.1)% |
|
|
|
(1.1)% |
|
|
|
|
|
Tampa |
|
|
1,434 |
|
|
|
1,396 |
|
|
|
1,427 |
|
|
|
2.7% |
|
|
|
0.5% |
|
|
|
|
|
Orlando |
|
|
1,488 |
|
|
|
1,490 |
|
|
|
1,494 |
|
|
|
(0.1)% |
|
|
|
(0.4)% |
|
|
|
|
|
Charlotte |
|
|
1,277 |
|
|
|
1,243 |
|
|
|
1,267 |
|
|
|
2.7% |
|
|
|
0.8% |
|
|
|
|
|
Total average rental rate per unit |
|
|
1,411 |
|
|
|
1,377 |
|
|
|
1,407 |
|
|
|
2.5% |
|
|
|
0.3% |
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
22 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 2 (cont) - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by
Market
(In thousands, except average rental rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended |
|
|
|
|
|
December 31,
2014 |
|
|
December 31,
2013 |
|
|
% Change |
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
85,721 |
|
|
$ |
81,466 |
|
|
|
5.2% |
|
Dallas |
|
|
72,277 |
|
|
|
70,103 |
|
|
|
3.1% |
|
Houston |
|
|
9,132 |
|
|
|
8,780 |
|
|
|
4.0% |
|
Austin |
|
|
12,093 |
|
|
|
11,826 |
|
|
|
2.3% |
|
Washington, D.C. |
|
|
51,852 |
|
|
|
52,456 |
|
|
|
(1.2)% |
|
Tampa |
|
|
37,465 |
|
|
|
36,441 |
|
|
|
2.8% |
|
Orlando |
|
|
11,030 |
|
|
|
11,129 |
|
|
|
(0.9)% |
|
Charlotte |
|
|
27,087 |
|
|
|
26,377 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
306,657 |
|
|
|
298,578 |
|
|
|
2.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
33,979 |
|
|
|
32,598 |
|
|
|
4.2% |
|
Dallas |
|
|
31,487 |
|
|
|
29,676 |
|
|
|
6.1% |
|
Houston |
|
|
3,725 |
|
|
|
3,337 |
|
|
|
11.6% |
|
Austin |
|
|
5,294 |
|
|
|
5,056 |
|
|
|
4.7% |
|
Washington, D.C. |
|
|
18,095 |
|
|
|
17,373 |
|
|
|
4.2% |
|
Tampa |
|
|
13,560 |
|
|
|
13,333 |
|
|
|
1.7% |
|
Orlando |
|
|
3,996 |
|
|
|
3,901 |
|
|
|
2.4% |
|
Charlotte |
|
|
8,457 |
|
|
|
8,592 |
|
|
|
(1.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
118,593 |
|
|
|
113,866 |
|
|
|
4.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
51,742 |
|
|
|
48,868 |
|
|
|
5.9% |
|
Dallas |
|
|
40,790 |
|
|
|
40,427 |
|
|
|
0.9% |
|
Houston |
|
|
5,407 |
|
|
|
5,443 |
|
|
|
(0.7)% |
|
Austin |
|
|
6,799 |
|
|
|
6,770 |
|
|
|
0.4% |
|
Washington, D.C. |
|
|
33,757 |
|
|
|
35,083 |
|
|
|
(3.8)% |
|
Tampa |
|
|
23,905 |
|
|
|
23,108 |
|
|
|
3.4% |
|
Orlando |
|
|
7,034 |
|
|
|
7,228 |
|
|
|
(2.7)% |
|
Charlotte |
|
|
18,630 |
|
|
|
17,785 |
|
|
|
4.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
188,064 |
|
|
$ |
184,712 |
|
|
|
1.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,333 |
|
|
$ |
1,271 |
|
|
|
4.9% |
|
Dallas |
|
|
1,243 |
|
|
|
1,216 |
|
|
|
2.2% |
|
Houston |
|
|
1,410 |
|
|
|
1,337 |
|
|
|
5.5% |
|
Austin |
|
|
1,565 |
|
|
|
1,519 |
|
|
|
3.0% |
|
Washington, D.C. |
|
|
1,868 |
|
|
|
1,889 |
|
|
|
(1.1)% |
|
Tampa |
|
|
1,420 |
|
|
|
1,388 |
|
|
|
2.3% |
|
Orlando |
|
|
1,490 |
|
|
|
1,508 |
|
|
|
(1.2)% |
|
Charlotte |
|
|
1,261 |
|
|
|
1,228 |
|
|
|
2.7% |
|
Total average rental rate per unit |
|
|
1,398 |
|
|
|
1,365 |
|
|
|
2.4% |
|
|
|
|
Supplemental Financial Data |
|
23 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 3 - Operating Community Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market /
Submarket /
Community |
|
Yr. Completed / Yr. of
Substantial Renovations
|
|
No.
of Units |
|
|
Avg. Unit Size (Sq. Ft.) |
|
|
Q4 2014 Avg. Monthly Rent |
|
|
Q4
2014 Average Economic Occ. |
|
|
|
|
|
Per Unit
|
|
|
Per Sq. Ft. |
|
|
Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buckhead / Brookhaven |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Alexander |
|
2008 |
|
|
307 |
|
|
|
1,015 |
|
|
$ |
1,783 |
|
|
$ |
1.76 |
|
|
|
96.4% |
|
Post Brookhaven® |
|
1990-1992 |
|
|
735 |
|
|
|
933 |
|
|
|
1,223 |
|
|
|
1.31 |
|
|
|
97.6% |
|
Post Chastain® |
|
1990/2008 |
|
|
558 |
|
|
|
866 |
|
|
|
1,326 |
|
|
|
1.53 |
|
|
|
97.4% |
|
Post Collier Hills®
(1)(2) |
|
1997 |
|
|
396 |
|
|
|
948 |
|
|
|
1,182 |
|
|
|
1.25 |
|
|
|
96.1% |
|
Post Gardens® |
|
1998 |
|
|
397 |
|
|
|
1,039 |
|
|
|
1,336 |
|
|
|
1.29 |
|
|
|
96.2% |
|
Post Glen® (2) |
|
1997 |
|
|
314 |
|
|
|
1,076 |
|
|
|
1,376 |
|
|
|
1.28 |
|
|
|
98.2% |
|
Post Lindbergh®
(1)(2) |
|
1998 |
|
|
396 |
|
|
|
909 |
|
|
|
1,236 |
|
|
|
1.36 |
|
|
|
96.8% |
|
Post Peachtree Hills® |
|
1992-1994/2009 |
|
|
300 |
|
|
|
978 |
|
|
|
1,442 |
|
|
|
1.47 |
|
|
|
97.3% |
|
Post StratfordTM |
|
2000 |
|
|
250 |
|
|
|
1,000 |
|
|
|
1,423 |
|
|
|
1.42 |
|
|
|
95.8% |
|
|
|
|
|
|
|
|
Dunwoody |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crossing® (2) |
|
1995 |
|
|
354 |
|
|
|
1,036 |
|
|
|
1,232 |
|
|
|
1.19 |
|
|
|
98.2% |
|
|
|
|
|
|
|
|
Emory Area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post BriarcliffTM (2) |
|
1999 |
|
|
688 |
|
|
|
1,006 |
|
|
|
1,313 |
|
|
|
1.31 |
|
|
|
98.0% |
|
|
|
|
|
|
|
|
Midtown |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post ParksideTM |
|
2000 |
|
|
188 |
|
|
|
886 |
|
|
|
1,623 |
|
|
|
1.83 |
|
|
|
95.5% |
|
|
|
|
|
|
|
|
Northwest Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crest® (1)(2) |
|
1996 |
|
|
410 |
|
|
|
1,033 |
|
|
|
1,148 |
|
|
|
1.11 |
|
|
|
97.5% |
|
Post Riverside® |
|
1998 |
|
|
522 |
|
|
|
1,059 |
|
|
|
1,587 |
|
|
|
1.50 |
|
|
|
95.6% |
|
Post SpringTM |
|
2000 |
|
|
452 |
|
|
|
977 |
|
|
|
1,080 |
|
|
|
1.11 |
|
|
|
96.3% |
|
|
|
|
|
|
|
|
Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Addison CircleTM |
|
1998-2000 |
|
|
1,334 |
|
|
|
846 |
|
|
|
1,108 |
|
|
|
1.31 |
|
|
|
97.0% |
|
Post EastsideTM |
|
2008 |
|
|
435 |
|
|
|
912 |
|
|
|
1,242 |
|
|
|
1.36 |
|
|
|
96.5% |
|
Post Legacy |
|
2000 |
|
|
384 |
|
|
|
810 |
|
|
|
1,116 |
|
|
|
1.38 |
|
|
|
96.3% |
|
Post Sierra at Frisco Bridges |
|
2009 |
|
|
268 |
|
|
|
896 |
|
|
|
1,153 |
|
|
|
1.29 |
|
|
|
94.1% |
|
|
|
|
|
|
|
|
Uptown Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post AbbeyTM |
|
1996 |
|
|
34 |
|
|
|
1,223 |
|
|
|
2,082 |
|
|
|
1.70 |
|
|
|
94.2% |
|
Post Coles CornerTM |
|
1998 |
|
|
186 |
|
|
|
800 |
|
|
|
1,201 |
|
|
|
1.50 |
|
|
|
98.4% |
|
Post GalleryTM |
|
1999 |
|
|
34 |
|
|
|
2,307 |
|
|
|
3,028 |
|
|
|
1.31 |
|
|
|
94.9% |
|
Post HeightsTM |
|
1998-1999/2009 |
|
|
368 |
|
|
|
845 |
|
|
|
1,369 |
|
|
|
1.62 |
|
|
|
95.2% |
|
Post Katy Trail |
|
2010 |
|
|
227 |
|
|
|
898 |
|
|
|
1,650 |
|
|
|
1.84 |
|
|
|
96.9% |
|
Post MeridianTM |
|
1991 |
|
|
133 |
|
|
|
780 |
|
|
|
1,389 |
|
|
|
1.78 |
|
|
|
94.1% |
|
Post SquareTM |
|
1996 |
|
|
216 |
|
|
|
856 |
|
|
|
1,387 |
|
|
|
1.62 |
|
|
|
95.1% |
|
Post Uptown VillageTM |
|
1995-2000 |
|
|
496 |
|
|
|
736 |
|
|
|
1,165 |
|
|
|
1.58 |
|
|
|
98.0% |
|
Post VineyardTM |
|
1996 |
|
|
116 |
|
|
|
733 |
|
|
|
1,189 |
|
|
|
1.62 |
|
|
|
96.5% |
|
Post VintageTM |
|
1993 |
|
|
160 |
|
|
|
750 |
|
|
|
1,259 |
|
|
|
1.68 |
|
|
|
97.2% |
|
Post WorthingtonTM |
|
1993/2008 |
|
|
334 |
|
|
|
820 |
|
|
|
1,478 |
|
|
|
1.80 |
|
|
|
94.6% |
|
|
|
|
|
|
|
|
Houston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post 510 (3) |
|
2014 |
|
|
242 |
|
|
|
857 |
|
|
|
1,616 |
|
|
|
1.89 |
|
|
|
75.1% |
|
Post Midtown Square® - Phases I &
II |
|
1999-2000 |
|
|
529 |
|
|
|
759 |
|
|
|
1,438 |
|
|
|
1.89 |
|
|
|
92.2% |
|
Post Midtown Square® - Phase
III |
|
2012 |
|
|
124 |
|
|
|
889 |
|
|
|
1,795 |
|
|
|
2.02 |
|
|
|
92.9% |
|
|
|
|
Supplemental Financial Data |
|
24 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 3 (cont) - Operating Community Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market /
Submarket /
Community |
|
Yr. Completed / Yr. of
Substantial Renovations
|
|
No.
of Units |
|
|
Avg.
Unit Size (Sq. Ft.) |
|
|
Q4 2014 Avg. Monthly
Rent |
|
|
Q4
2014 Average Economic Occ. |
|
|
|
|
|
Per Unit |
|
|
Per Sq. Ft. |
|
|
Austin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Barton Creek |
|
1998 |
|
|
160 |
|
|
|
1,162 |
|
|
$ |
1,812 |
|
|
$ |
1.56 |
|
|
|
94.9% |
|
Post Park Mesa |
|
1992 |
|
|
148 |
|
|
|
1,091 |
|
|
|
1,520 |
|
|
|
1.39 |
|
|
|
96.4% |
|
Post South Lamar |
|
2012 |
|
|
298 |
|
|
|
853 |
|
|
|
1,588 |
|
|
|
1.86 |
|
|
|
92.0% |
|
Post West Austin |
|
2009 |
|
|
329 |
|
|
|
889 |
|
|
|
1,467 |
|
|
|
1.65 |
|
|
|
95.2% |
|
Washington D.C. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Fallsgrove |
|
2003 |
|
|
361 |
|
|
|
983 |
|
|
|
1,716 |
|
|
|
1.75 |
|
|
|
96.1% |
|
Post Park® |
|
2010 |
|
|
396 |
|
|
|
975 |
|
|
|
1,651 |
|
|
|
1.69 |
|
|
|
95.4% |
|
Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Carlyle Square - Phase I |
|
2006 |
|
|
205 |
|
|
|
861 |
|
|
|
2,311 |
|
|
|
2.68 |
|
|
|
91.7% |
|
Post Carlyle Square - Phase II |
|
2012 |
|
|
344 |
|
|
|
906 |
|
|
|
2,418 |
|
|
|
2.67 |
|
|
|
91.1% |
|
Post Corners at Trinity Centre (2) |
|
1996 |
|
|
336 |
|
|
|
994 |
|
|
|
1,598 |
|
|
|
1.61 |
|
|
|
94.4% |
|
Post Pentagon Row TM |
|
2001 |
|
|
504 |
|
|
|
853 |
|
|
|
2,261 |
|
|
|
2.65 |
|
|
|
90.2% |
|
Post Tysons Corner TM |
|
1990 |
|
|
499 |
|
|
|
807 |
|
|
|
1,693 |
|
|
|
2.10 |
|
|
|
95.3% |
|
Washington D.C. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Massachusetts Avenue TM
(1)(2) |
|
2002 |
|
|
269 |
|
|
|
883 |
|
|
|
3,318 |
|
|
|
3.76 |
|
|
|
90.9% |
|
Tampa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Bay at Rocky Point |
|
1997 |
|
|
150 |
|
|
|
1,012 |
|
|
|
1,434 |
|
|
|
1.42 |
|
|
|
95.7% |
|
Post Harbour PlaceTM |
|
1999-2002 |
|
|
578 |
|
|
|
920 |
|
|
|
1,560 |
|
|
|
1.70 |
|
|
|
97.9% |
|
Post Hyde Park® (2) |
|
1996-2008 |
|
|
467 |
|
|
|
1,011 |
|
|
|
1,497 |
|
|
|
1.48 |
|
|
|
97.3% |
|
Post Rocky Point® |
|
1996-1998 |
|
|
916 |
|
|
|
1,031 |
|
|
|
1,323 |
|
|
|
1.28 |
|
|
|
96.7% |
|
Post Soho Square (3) |
|
2014 |
|
|
231 |
|
|
|
880 |
|
|
|
1,627 |
|
|
|
1.85 |
|
|
|
66.8% |
|
Orlando |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Lake® at Baldwin
Park |
|
2004-2007 |
|
|
350 |
|
|
|
1,013 |
|
|
|
1,476 |
|
|
|
1.46 |
|
|
|
99.5% |
|
Post Lake® at Baldwin Park - Phase
III |
|
2013 |
|
|
410 |
|
|
|
960 |
|
|
|
1,511 |
|
|
|
1.57 |
|
|
|
97.4% |
|
Post Lakeside |
|
2013 |
|
|
300 |
|
|
|
1,070 |
|
|
|
1,344 |
|
|
|
1.26 |
|
|
|
98.0% |
|
Post ParksideTM |
|
1999 |
|
|
248 |
|
|
|
867 |
|
|
|
1,506 |
|
|
|
1.74 |
|
|
|
95.8% |
|
Charlotte |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Ballantyne |
|
2004 |
|
|
323 |
|
|
|
1,252 |
|
|
|
1,205 |
|
|
|
0.96 |
|
|
|
94.2% |
|
Post Gateway PlaceTM |
|
2000 |
|
|
436 |
|
|
|
804 |
|
|
|
1,157 |
|
|
|
1.44 |
|
|
|
95.6% |
|
Post Park at Phillips
Place® |
|
1998 |
|
|
402 |
|
|
|
1,101 |
|
|
|
1,432 |
|
|
|
1.30 |
|
|
|
97.2% |
|
Post South End |
|
2009 |
|
|
360 |
|
|
|
847 |
|
|
|
1,356 |
|
|
|
1.60 |
|
|
|
97.0% |
|
Post Uptown PlaceTM |
|
2000 |
|
|
227 |
|
|
|
800 |
|
|
|
1,214 |
|
|
|
1.52 |
|
|
|
95.6% |
|
Raleigh |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Parkside at Wade - Phase I |
|
2013 |
|
|
397 |
|
|
|
875 |
|
|
|
1,035 |
|
|
|
1.18 |
|
|
|
95.8% |
|
1) |
Communities held in unconsolidated entities. |
2) |
Communities encumbered by secured mortgage indebtedness. |
3) |
During the period, these communities, or portions thereof, were in lease-up. |
|
|
|
Supplemental Financial Data |
|
25 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 4 - Year-to-Date Margin Analysis
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2014 |
|
|
|
Rental and
Other Property
Revenues |
|
|
Property
Operating &
Maintenance
Expenses |
|
|
Net
Operating
Income
(NOI) |
|
|
NOI
Margin |
|
|
Expense
Margin |
|
Same store communities |
|
$ |
306,657 |
|
|
$ |
118,593 |
|
|
$ |
188,064 |
|
|
|
61.3% |
|
|
|
38.7% |
|
Newly stabilized communities |
|
|
17,401 |
|
|
|
6,592 |
|
|
|
10,809 |
|
|
|
62.1% |
|
|
|
37.9% |
|
Lease-up communities |
|
|
13,012 |
|
|
|
6,359 |
|
|
|
6,653 |
|
|
|
N/A |
|
|
|
N/A |
|
Acquired communities |
|
|
4,978 |
|
|
|
1,889 |
|
|
|
3,089 |
|
|
|
62.1% |
|
|
|
37.9% |
|
Held for sale and sold communities |
|
|
14,168 |
|
|
|
7,011 |
|
|
|
7,157 |
|
|
|
50.5% |
|
|
|
49.5% |
|
Other property segments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate apartments |
|
|
5,958 |
|
|
|
5,098 |
|
|
|
860 |
|
|
|
14.4% |
|
|
|
85.6% |
|
Commercial |
|
|
14,646 |
|
|
|
5,135 |
|
|
|
9,511 |
|
|
|
64.9% |
|
|
|
35.1% |
|
Corporate property management expenses (1) |
|
|
- |
|
|
|
12,282 |
|
|
|
(12,282) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
376,820 |
|
|
$ |
162,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI (2) |
|
|
|
|
|
|
|
|
|
$ |
213,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party management fees |
|
|
|
|
|
|
|
|
|
$ |
866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The following table summarizes the Companys net property management expense as a percentage of adjusted property revenues:
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
Corporate property management expenses |
|
$ |
12,282 |
|
|
|
Less: Third-party management fees |
|
|
(866) |
|
|
|
|
|
|
|
|
|
|
Net property management expenses |
|
$ |
11,416 |
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Total rental and other property revenues |
|
$ |
376,820 |
|
|
|
Less: Corporate apartment revenues |
|
|
(5,958) |
|
|
|
|
|
|
|
|
|
|
Adjusted property revenues |
|
$ |
370,862 |
|
|
|
|
|
|
|
|
|
|
Net property management expenses as a percentage of adjusted property revenues |
|
|
3.1% |
|
|
|
|
|
|
|
|
2) |
Consolidated property NOI is a non-GAAP financial measure. See Table 1 on page 21 for a reconciliation of consolidated property NOI to GAAP net
income. |
|
|
|
Supplemental Financial Data |
|
26 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 5 - Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
Year
ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Annually recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
3,566 |
|
|
$ |
2,820 |
|
|
$ |
12,986 |
|
|
$ |
13,074 |
|
Newly stabilized communities |
|
|
- |
|
|
|
11 |
|
|
|
68 |
|
|
|
42 |
|
Lease-up communities |
|
|
15 |
|
|
|
2 |
|
|
|
68 |
|
|
|
16 |
|
Acquired communities |
|
|
37 |
|
|
|
30 |
|
|
|
102 |
|
|
|
85 |
|
Held for sale and sold communities |
|
|
1 |
|
|
|
137 |
|
|
|
276 |
|
|
|
908 |
|
Commercial and other segments |
|
|
198 |
|
|
|
180 |
|
|
|
443 |
|
|
|
548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total annually recurring capital expenditures |
|
$ |
3,817 |
|
|
$ |
3,180 |
|
|
$ |
13,943 |
|
|
$ |
14,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periodically recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
1,452 |
|
|
$ |
2,601 |
|
|
$ |
4,571 |
|
|
$ |
10,197 |
|
Newly stabilized communities |
|
|
- |
|
|
|
3 |
|
|
|
20 |
|
|
|
14 |
|
Lease-up communities |
|
|
3 |
|
|
|
3 |
|
|
|
13 |
|
|
|
12 |
|
Acquired communities |
|
|
- |
|
|
|
18 |
|
|
|
36 |
|
|
|
21 |
|
Held for sale and sold communities |
|
|
- |
|
|
|
809 |
|
|
|
614 |
|
|
|
3,201 |
|
Commercial and other segments |
|
|
630 |
|
|
|
1,242 |
|
|
|
2,883 |
|
|
|
2,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total periodically recurring capital expenditures |
|
$ |
2,085 |
|
|
$ |
4,676 |
|
|
$ |
8,137 |
|
|
$ |
15,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue generating capital expenditures |
|
$ |
2,116 |
|
|
$ |
1,752 |
|
|
$ |
7,677 |
|
|
$ |
5,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in capital expenditure accruals |
|
$ |
- |
|
|
$ |
547 |
|
|
$ |
295 |
|
|
$ |
(295) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property capital expenditures per statements of cash flows |
|
$ |
8,018 |
|
|
$ |
10,155 |
|
|
$ |
30,052 |
|
|
$ |
36,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 - Computation of Debt Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
|
2014 |
|
|
2013 |
|
|
|
|
Total real estate assets per balance sheet |
|
$ |
2,128,767 |
|
|
$ |
2,251,139 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,554 |
|
|
|
57,680 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
14,183 |
|
|
|
12,645 |
|
Accumulated depreciation per balance sheet |
|
|
937,310 |
|
|
|
913,018 |
|
Accumulated depreciation on assets held for sale |
|
|
207 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total undepreciated real estate assets (A) |
|
$ |
3,138,021 |
|
|
$ |
3,234,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
892,459 |
|
|
$ |
1,098,734 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of third party debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
|
|
|
|
|
|
|
|
|
Total debt (adjusted for joint venture partners share of debt) (B) |
|
$ |
941,990 |
|
|
$ |
1,148,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt) (B÷A)
|
|
|
30.0% |
|
|
|
35.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
892,459 |
|
|
$ |
1,098,734 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of third party debt held in unconsolidated entities |
|
|
49,531 |
|
|
|
49,531 |
|
Preferred shares at liquidation value |
|
|
43,392 |
|
|
|
43,392 |
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity (adjusted for joint venture partners share of debt) (C) |
|
$ |
985,382 |
|
|
$ |
1,191,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners share of
debt) (C÷A) |
|
|
31.4% |
|
|
|
36.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
27 | P a g e |
|
|
|
4th Quarter 2014 |
|
|
Table 7 - Computation of Coverage Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31, |
|
|
|
2014 |
|
|
2013 |
|
Net income |
|
$ |
238,183 |
|
|
$ |
110,920 |
|
Other non-cash (income) expense, net |
|
|
4,233 |
|
|
|
4,642 |
|
Income tax expense (benefit), net |
|
|
(19) |
|
|
|
982 |
|
Gains on condominium sales activities, net |
|
|
(2,545) |
|
|
|
(27,944) |
|
Gains on sales of apartment communities |
|
|
(187,825) |
|
|
|
(28,380) |
|
Net loss on extinguishment of indebtedness |
|
|
18,357 |
|
|
|
- |
|
Non-cash impairment charge |
|
|
450 |
|
|
|
400 |
|
Depreciation expense |
|
|
84,759 |
|
|
|
85,608 |
|
Depreciation expense - discontinued operations |
|
|
- |
|
|
|
527 |
|
Depreciation and amortization (company share) - unconsolidated entities |
|
|
1,211 |
|
|
|
1,194 |
|
Interest expense |
|
|
40,286 |
|
|
|
44,704 |
|
Interest expense - discontinued operations |
|
|
- |
|
|
|
289 |
|
Interest expense (company share) - unconsolidated entities |
|
|
2,441 |
|
|
|
2,441 |
|
Amortization of deferred financing costs |
|
|
2,282 |
|
|
|
2,573 |
|
|
|
|
|
|
|
|
|
|
Income available for debt service (A) |
|
$ |
201,813 |
|
|
$ |
197,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
40,286 |
|
|
$ |
44,704 |
|
|
|
|
Interest expense - discontinued operations |
|
|
- |
|
|
|
289 |
|
Interest expense (company share) - unconsolidated entities |
|
|
2,441 |
|
|
|
2,441 |
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense (C) |
|
|
42,727 |
|
|
|
47,434 |
|
Capitalized interest |
|
|
3,115 |
|
|
|
3,962 |
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense (including capitalized interest) (D) |
|
$ |
45,842 |
|
|
$ |
51,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense |
|
$ |
42,727 |
|
|
$ |
47,434 |
|
Dividends to preferred shareholders |
|
|
3,688 |
|
|
|
3,688 |
|
|
|
|
|
|
|
|
|
|
Fixed charges (E) |
|
|
46,415 |
|
|
|
51,122 |
|
Capitalized interest |
|
|
3,115 |
|
|
|
3,962 |
|
|
|
|
|
|
|
|
|
|
Fixed charges (including capitalized interest) (F) |
|
$ |
49,530 |
|
|
$ |
55,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt (adjusted for joint venture partners share of debt) (see Table 6) (G) |
|
$ |
941,990 |
|
|
$ |
1,148,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio (A÷C) |
|
|
4.7x |
|
|
|
4.2x |
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio (including capitalized interest) (A÷D) |
|
|
4.4x |
|
|
|
3.9x |
|
|
|
|
|
|
|
|
|
|
Fixed charge coverage ratio (A÷E) |
|
|
4.3x |
|
|
|
3.9x |
|
|
|
|
|
|
|
|
|
|
Fixed charge coverage ratio (including capitalized interest) (A÷F) |
|
|
4.1x |
|
|
|
3.6x |
|
|
|
|
|
|
|
|
|
|
Total debt to income available for debt service ratio (G÷A) |
|
|
4.7x |
|
|
|
5.8x |
|
|
|
|
|
|
|
|
|
|
Table 8 - Calculation of Company Undepreciated Book Value Per Share
(In thousands, except per share data)
|
|
|
|
|
|
|
December 31, 2014 |
|
Total Company shareholders equity per balance sheet |
|
$ |
1,285,960 |
|
Plus: |
|
|
|
|
Accumulated depreciation, per balance sheet |
|
|
937,310 |
|
Accumulated depreciation held for sale assets, per balance sheet |
|
|
207 |
|
Noncontrolling interest of common unitholders - Operating Partnership |
|
|
7,086 |
|
Less: |
|
|
|
|
Deferred financing costs, net, per balance sheet |
|
|
(5,117) |
|
Preferred shares at liquidation value |
|
|
(43,392) |
|
|
|
|
|
|
Total undepreciated book value (A) |
|
$ |
2,182,054 |
|
|
|
|
|
|
|
|
Total common shares and units (B) |
|
|
54,630 |
|
|
|
|
|
|
|
|
Company undepreciated book value per share (A÷B) |
|
$ |
39.94 |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
28 | P a g e |
Grafico Azioni Post Properties (NYSE:PPS)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Post Properties (NYSE:PPS)
Storico
Da Lug 2023 a Lug 2024