Post Properties Announces Third Quarter Earnings Investor/Analyst
Conference Call Scheduled for November 4, 2003 at 10:00 a.m. EST
ATLANTA, Nov. 3 /PRNewswire-FirstCall/ -- Post Properties, Inc.
announced today a net loss available to common shareholders of $4.5
million for the third quarter of 2003, compared to net income
available to common shareholders of $3.3 million for the third
quarter of 2002. On a diluted per share basis, the net loss
available to common shareholders was $0.12 for the third quarter of
2003, compared to net income available to common shareholders of
$0.09 for the third quarter of 2002. For the nine months ended
September 30, 2003, the net loss available to common shareholders
was $3.1 million, compared to net income available to common
shareholders of $39.6 million for the nine months ended September
30, 2002. On a diluted per share basis, the net loss available to
common shareholders was $0.08 for the first nine months of 2003,
compared to net income available to common shareholders of $1.07
for the same period of 2002. Excluding severance and proxy charges,
net income available to common shareholders totaled $20.7 million,
or $0.55 per diluted share, for the first nine months of 2003. A
reconciliation of net income available to common shareholders to
net income available to common shareholders excluding severance and
proxy charges is provided in Table 1. In October 2003, the National
Association of Real Estate Investment Trusts ("NAREIT") issued
additional guidance modifying the definition of funds from
operations ("FFO"). The first modification revised the treatment of
asset impairment losses and impairment losses incurred to
write-down assets to their fair value at the date assets are
classified as held for sale, to include such losses in FFO.
Previously such losses were excluded from FFO, consistent with the
treatment of gains on property sales. The second modification
clarified the treatment of original issue costs and premiums paid
on preferred stock redemptions to deduct such costs and premiums in
determining FFO available to common shareholders. This modification
was consistent with the recently clarified treatment of these costs
under GAAP. The company has adopted the modifications to the
definition of FFO effective with its reported results for the
period ended September 30, 2003. The modification of FFO related to
preferred stock redemption costs was not applicable for the company
for the periods presented. Prior period and prior year
presentations of FFO have been restated to conform with the revised
NAREIT definition of FFO. FFO is a supplemental non-GAAP financial
measure used by real estate investment trusts to measure and
compare operating performance. FFO for the third quarter of 2003
totaled $16.8 million, or $0.40 per diluted share, compared to
$25.3 million, or $0.60 per diluted share, for the third quarter of
2002. Excluding asset impairment charges, FFO for the third quarter
of 2003 totaled $20.1 million, or $0.48 per diluted share, compared
to $27.2 million, or $0.65 per diluted share, for the third quarter
of 2002. FFO excluding asset impairment charges was consistent with
management's previously issued guidance. FFO for the nine months
ended September 30, 2003 totaled $20.2 million, or $0.48 per
diluted share, compared to $75.2 million, or $1.79 per diluted
share, for the nine months ended September 30, 2002. Excluding
severance, proxy and asset impairment charges, FFO for the nine
months ended September 30, 2003 totaled $64.4 million, or $1.53 per
diluted share, compared to $84.7 million, or $2.01 per diluted
share, for the nine months ended September 30, 2002. A
reconciliation of FFO to GAAP net income is included in the
financial data (Table 2) accompanying this press release. Total
revenues from continuing operations were $73.5 million for the
third quarter of 2003, compared to $73.2 million for the third
quarter of 2002. For the nine months ended September 30, 2003,
total revenues from continuing operations were $217.5 million,
compared to $215.1 million for the same period in 2002. Mature
Community Data For the third quarter of 2003, average economic
occupancy at the company's 57 mature (same store) communities,
containing 19,646 apartment units, was 93.1%, compared to 93.0% for
the third quarter of 2002. For the nine months ended September 30,
2003, average economic occupancy for these mature communities was
91.5%, compared to 91.0% for the same period in 2002. Total
revenues for the mature communities decreased 3.5% during the third
quarter of 2003, compared to the third quarter of 2002, and
operating expenses increased 1.0%, resulting in a 6.0% decline in
same store net operating income (NOI), or $2.2 million ($0.05 per
diluted share). For the nine months ended September 30, 2003, total
revenues for the mature communities decreased 4.0% compared to the
same period in 2002, while operating expenses increased 0.8%,
resulting in a 6.5% decline in same store NOI, or $7.4 million
($0.18 per diluted share). On a sequential basis, total revenues
for the mature communities increased 1.5% during the third quarter
of 2003, compared to the second quarter of 2003, and operating
expenses increased 2.2%, resulting in a 1.1% increase in same store
NOI, or $0.4 million ($0.01 per diluted share). For the third
quarter of 2003, average economic occupancy was 93.1% compared to
91.4% for the second quarter of 2003. Same store NOI is a
supplemental non-GAAP financial measure. A reconciliation of same
store NOI to the comparable GAAP financial measure is included in
the financial data (Table 3) accompanying this press release. Asset
Sales and Capital Reinvestment Strategy For the nine months ended
September 30, 2003, the company's net proceeds from the sale of
three assets totaled approximately $170 million (including the
repayment of a joint venture loan). The company realized GAAP
accounting gains on the sale of these three properties of
approximately $42 million, and gains on gross book value (before
depreciation) of approximately $25 million. The company sold no
apartment communities during the third quarter of 2003. Consistent
with its previously announced strategy, the company is currently
marketing 11 additional properties, with 5,175 apartment units, for
sale over approximately the next six months. These properties,
which are being marketed by a number of third-party brokers,
consist of the company's only apartment community, with 403 units,
located in Phoenix, AZ, six apartment communities, with 2,728 units
and an average age of approximately 16 years, located in Atlanta,
GA, three apartment communities, with 1,304 units and an average
age of approximately 14 years, located in Dallas, TX, and one
approximately 15-year old, 740-unit apartment community, located in
Orlando, FL. These sales are part of the company's plans to focus
its operations in fewer key markets, maintain the low average age
and high quality of the portfolio, reduce the company's market
concentration in Atlanta, GA and Dallas, TX, take advantage of
strong asset pricing for apartments and enhance per share net asset
value. Total estimated gross proceeds from these sales are expected
to be approximately $340 million to $350 million -- up from the
previously announced $250 million to $300 million -- and would
bring the total gross proceeds from Post's asset sales over the
past four years to more than $1 billion. The estimated closing
dates of the 11 properties currently being marketed range from late
in the fourth quarter of 2003 to early in the second quarter of
2004. The company intends to use the proceeds of these sales for
various purposes, which may include common equity repurchases,
preferred equity redemptions, debt reduction, new development and
acquisitions that further the geographic diversification and
quality of the portfolio. In connection with the sale of six of the
properties discussed above (five in Atlanta, GA and one in Orlando,
FL), the company expects that the purchaser(s) will acquire those
properties subject to a combined total of approximately $119
million of tax- exempt mortgage debt. Merrill Lynch, the company's
financial advisor, as part of its ongoing review of strategies to
increase shareholder value, is assisting the company in evaluating
capital reinvestment alternatives. The planned asset sales
discussed above are expected to produce GAAP accounting gains
(before the effect of asset impairment charges) of approximately
$125 million to $135 million and gains in excess of gross book
value (before depreciation and write-downs for asset impairment
charges) of approximately $40 million to $50 million. Taxable
capital gains to the company from these sales are estimated to
total more than $100 million. The company expects to be able to use
its regular quarterly dividend of 45 cents per share, as well as
other tax planning strategies, to pay out or otherwise mitigate the
impact of these taxable capital gains, but may evaluate a special
dividend in 2004. Said David Stockert, Post's CEO and President,
"We continue to pursue an aggressive and successful program of
asset sales designed to achieve several important benefits. We are
taking advantage of high demand for apartment properties as a net
seller, and realizing the value of our assets, while shaping the
portfolio to produce over time a more diversified and stable cash
flow stream." One of the properties discussed above, a 166-unit
apartment community located in Atlanta, GA, is currently under
contract to be sold to an entity controlled by L. Barry Teague, a
unitholder who served as a director of Post from February 2003 to
September 2003. Mr. Teague was the high bidder for the asset in an
auction sales process conducted by a third-party broker. The
contract with Mr. Teague stipulates that approximately 40% of the
$13 million purchase price will consist of a redemption of a
portion of Mr. Teague's partnership units in Post Apartment Homes,
L.P., the operating partnership that owns substantially all of
Post's assets. Partnership units are convertible, on a one-for-one
basis, into shares of Post, or into cash at the company's option.
The redemption price per unit has been set at $24.83, which is a
discount of 10% to the average daily closing price of Post common
stock on the New York Stock Exchange for the twenty consecutive
trading days prior to the effective date of the contract.
Development Activity The company currently has two high-rise
apartment communities in lease-up. Post Toscana, located in New
York City, and Post Massachusetts Avenue, located in Washington,
D.C., are both complete and are expected to achieve stabilized
occupancy as scheduled. The company is continuing to pursue the
pre-development of its project located in the Carlyle
master-planned development in Alexandria, VA and expects to
commence construction in the late Spring of 2004. The project is to
comprise 353 high-rise and mid-rise luxury apartments and 20,000
square feet of retail space in phase one, with development costs
currently estimated at approximately $81 million. It is located
adjacent to the 2.4 million square foot campus of the U.S. Patent
and Trade Office (PTO) currently under construction and is within
walking distance of the King Street Metro station. The PTO is
expected to employ more than 7,000 employees at Carlyle and is
expected to begin taking occupancy by year-end 2003. Post also owns
land on which it ultimately expects to develop a second phase,
which includes an additional 325,000 square feet of residential
entitlements. Post's development partner, the New York State Common
Retirement Fund, is currently reviewing the opportunity to
participate in phase one of Post's Carlyle development. Refinancing
Activity Upon their maturity on October 1, 2003, the company repaid
$100 million of its 7.25% unsecured notes, using borrowings under
its unsecured line of credit. Compensation Package for Chairman of
the Board The company also announced today a compensation package
for its Chairman, Robert C. Goddard, III. As consideration for his
services as non-executive Chairman, Mr. Goddard will receive an
annual retainer of $100,000. In addition, Mr. Goddard received a
stock option grant to purchase 100,000 shares of common stock, at
the current market price on the date of the grant, and a grant of
shares of restricted stock equal to $200,000 in value, each such
grant vesting over five years. The company's compensation committee
also agreed that it would annually consider granting Mr. Goddard
additional stock options and restricted stock based on performance.
Mr. Stockert remarked, "Bob has provided valuable leadership since
his election as Chairman of the Board in February. The compensation
committee, acting with the assistance of independent compensation
consultants, put together a package to provide appropriate
incentives to drive shareholder value and recognize that Bob will
continue to spend significant time and energy in his role as
Chairman." Outlook The estimates presented below are
forward-looking and are based on current apartment market and
general economic conditions and other risks outlined below.
Management believes that the company's net income per diluted share
for the fourth quarter of 2003 will be in a range of $0.30 to
$0.31. Management is currently expecting to close the sale of two
assets in the fourth quarter of 2003. Management believes that the
company's FFO per share for the fourth quarter of 2003 will be in a
range of $0.47 to $0.48. Management's estimates of per share FFO
for the fourth quarter of 2003 are based on the following
assumptions: reduced interest expense resulting from the retirement
of $100 million of 7.25% senior unsecured notes with the proceeds
from short-term floating rate debt; seasonal decreases in same
store NOI, as compared to same store NOI for the third quarter of
2003; dilution from asset sales which are expected to be completed
in the fourth quarter of 2003, the proceeds of which will be used
primarily to pay down short-term floating rate debt; the impact of
reducing the amount of internal personnel costs capitalized to
development projects as those properties were completed and placed
in service; and increased general and administrative expenses. A
reconciliation of projected net income per diluted share to
projected FFO per diluted share for the fourth quarter of 2003 is
included in the financial data (Table 5) accompanying this press
release. Supplemental Financial Data The company also produces
Supplemental Financial Data that includes detailed information
regarding the company's operating results and balance sheet. This
Supplemental Financial Data is considered an integral part of this
earnings release and is available on the Company's website. The
Company's earnings release and the Supplemental Financial Data is
available through the company's web site at "
http://www.postproperties.com/posthome.nsf/ExtList/2003-3QFinancials
". The ability to access the attachments on the company's web site
requires the Adobe Acrobat 4.0 Reader, which may be downloaded at
http://www.adobe.com/products/acrobat/readstep.html . Non-GAAP
Financial Measures The company uses certain non-GAAP financial
measures in this earnings release and in its Supplemental Financial
Data available on the company's website. These non-GAAP financial
measures include FFO, net operating income, same store capital
expenditures, net income, FFO and FAD excluding certain accounting
charges, and certain debt statistics and ratios. The definitions of
these non-GAAP financial measures are summarized below and on page
21 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. 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 debt restructuring and sales
of property, plus depreciation of real estate assets, and after
adjustment for unconsolidated partnerships and joint ventures all
determined on a consistent basis in accordance with GAAP. In
October 2003, NAREIT issued additional guidance modifying the
definition of FFO. The first modification revised the treatment of
asset impairment losses and impairment losses incurred to write-
down assets to their fair value at the date assets are classified
as held for sale, to include such losses in FFO. Previously such
losses were excluded from FFO consistent with the treatment of
gains on property sales. The second modification clarified the
treatment of original issue costs and premiums paid on preferred
stock redemptions to deduct such costs and premiums in determining
FFO available to common shareholders. This modification was
consistent with the recently clarified treatment of these costs
under GAAP. The company has adopted the modifications to the
definition of FFO effective with its reported results for the
period ended September 30, 2003. Prior period and prior year
presentations of FFO have been restated to conform with the revised
definition of FFO. FFO presented in the company's earnings 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 company's 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 "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 company's results to those of other
equity REITs. The company believes that the line on its
consolidated statement of operations entitled "net income (loss)
available to common shareholders" is the most directly comparable
GAAP measure to FFO. The company also computes a dividend payout
ratio using dividends declared during the quarter divided by FFO
per diluted share in order to provide investors with one alternate
earnings measure to compare the relationship of FFO to the
company's quarterly dividends and distributions. Funds Available
for Distribution -- The company also uses funds available for
distribution ("FAD") as an operating measure. FAD is defined as FFO
less capital expenditures funded by operations. The company
believes that FAD is an important supplemental measure of operating
performance for an equity REIT because it provides investors with
an indication of the REIT's ability to fund its cash needs through
earnings, including debt service requirements, capital expenditures
and dividends and distributions. In addition, since most equity
REITs provide FAD information to the investment community, the
company believes that FAD 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 (loss) available to common shareholders" is the most
directly comparable GAAP measure to FAD. The company also computes
a dividend payout ratio using dividends declared during the quarter
divided by FAD per diluted share in order to provide investors with
one alternate earnings measure to compare the relationship of FAD
to the company's quarterly dividends and distributions. Property
Net Operating Income -- 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 REIT's
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 "income from continuing operations before equity in losses
of unconsolidated entities, gains on property sales and minority
interest" is the most directly comparable GAAP measure to NOI. Same
Store Capital Expenditures -- The company uses same store recurring
and non-recurring capital expenditures as cash flow measures. Same
store recurring and non-recurring capital expenditures are
supplemental non-GAAP financial measures. The company believes that
same store recurring and non- 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
company's other operating segments consisting of communities
stabilized in the prior year, lease-up communities, and sold
communities in addition to same store information. Therefore, the
company believes that the company's presentation of same store
recurring and non-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 recurring and non-recurring capital expenditures are the
lines on the company's consolidated statements of cash flows
entitled "recurring capital expenditures" and "non-recurring
capital expenditures." Net Income, FFO and FAD Excluding Certain
Charges -- The company uses net income, FFO and FAD excluding
one-time severance, proxy and impairment charges as operating
measures. The company reports net income, FFO and FAD excluding
certain one-time, non-cash charges as alternative financial
measures of core operating performance. The company believes net
income, FFO and FAD before one-time, non-cash charges are
informative measures for comparing operating performance between
periods and for comparing operating performance to other companies
that have not incurred such charges. The company further believes
that one-time, non-cash charges of the nature incurred in 2003 are
not necessarily repetitive in nature and that it is therefore
meaningful to compare operating performance using alternative,
non-GAAP measures. In addition, the company believes the investment
and analyst communities desire to understand the meaningful
components of the company's performance and that these non-GAAP
measures assist in providing such supplemental measures. The
company believes that the most directly comparable GAAP financial
measures to each of net income, FFO and FAD, excluding certain
one-time, non-cash charges, is the line on the company's
consolidated statements of operations entitled "net income (loss)
available to common shareholders." The company computes dividend
payout ratios using dividends declared during the quarter divided
by FFO and FAD per diluted share, excluding certain one-time,
non-cash charges in order to provide investors with alternate
earnings measures to compare the relationship of FFO and FAD,
excluding certain one-time, non-cash charges, to the company's
quarterly dividends and distributions. 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) an interest coverage ratio; (2) a fixed
charge coverage ratio; (3) total debt as a percentage of
undepreciated real estate (unadjusted and adjusted for joint
venture partners' share of debt); (4) a ratio of consolidated debt
to total assets; (5) a ratio of secured debt to total assets; (6) a
ratio of total unencumbered assets to unsecured debt; and (7) a
ratio of consolidated income available to debt service to annual
debt service charge. A number of these debt statistics and ratios
are derived from covenants found in the company's debt agreements,
including, among others, the company's revolving line of credit and
the company's senior unsecured notes. In addition, the company
presents these measures because the degree of leverage could affect
the company's 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 company's liquidity.
Conference Call Information The company will hold its quarterly
conference call on Tuesday, November 4, 2003, at 10 a.m. EST. The
telephone numbers are 1-800-256-8682 for domestic calls and
334-323-7224 for international callers. Callers should reference
"Post Properties' Third Quarter 2003 Earnings Call." The conference
call will be open to the public and can be listened to live on
Post's web site at http://www.postproperties.com/ under Corporate
Information/Investor Info. The replay will begin two hours after
the completion of the call and will be available until Monday,
November 17, at 11:59 p.m. EST. The telephone numbers for the
replay are 1-800-858-5309 for domestic callers and 334-323-7226 for
international callers. The access code for the replay is 40970. The
passcode for the replay is 38791. A replay of the call also will be
available through Tuesday, December 30, on Post's web site. The
financial and statistical information that will be discussed on the
call is contained in this press release and the Supplemental
Financial Data. Both documents will be available on the company's
website at "
http://www.postproperties.com/posthome.nsf/ExtList/2003-3QFinancials
" prior to the quarterly conference call. Post Properties, Inc., a
leading developer and operator of upscale apartment communities in
the United States, pioneered building and branding resort-style
garden apartments for more than 30 years. Post now also focuses on
the creation of high-quality, high-density, live-work-walk
neighborhoods in infill locations in major urban markets. The
company has been recognized locally, nationally and internationally
for building better neighborhoods and the preservation of historic
buildings. Operating as a self-administered and self-managed equity
real estate investment trust (REIT), the company's primary business
consists of developing and managing Post(R) brand-name apartment
communities. Nationwide, Post Properties owns approximately 28,917
apartment homes in 78 communities, including 468 units currently
under development and lease-up. Forward Looking Statement: 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 and
developments and the company's future performance, as well as
management's 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 include the company's anticipated asset sales during the
fourth quarter of 2003 and the first half of 2004 (including the
estimated proceeds and the use of proceeds from such sales) and the
company's projected net income per diluted share and projected FFO
per diluted share for the fourth quarter of 2003. 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 company's actual results to
differ materially from the expected results described in the
company's forward-looking statements: future local and national
economic conditions, including changes in job growth, interest
rates, the availability of financing and other factors; demand for
apartments in the company's markets and the effect on occupancy and
rental rates; the impact of competition on the company's business,
including competition for tenants and development locations; the
company's ability to obtain financing or self-fund the development
or acquisition of additional apartment communities; the
uncertainties associated with the company's current and planned
future real estate development, including actual costs exceeding
the company's budgets or development periods exceeding
expectations; uncertainties associated with the timing and amount
of asset sales and the resulting gains/losses associated with such
asset sales; conditions affecting ownership of residential real
estate and general conditions in the multi-family residential real
estate market; the effects of changes in accounting policies and
other regulatory matters detailed in the company's filings with the
Securities and Exchange Commission and uncertainties of litigation;
and the company's ability to continue to qualify as a real estate
investment trust under the Internal Revenue Code. Other important
risk factors regarding the company are included under the caption
"Risk Factors" in the company's Annual Report on Form 10-K for the
year ended December 31, 2002 and may be discussed in subsequent
filings with the SEC. The risk factors discussed in such Form 10-K
under the caption "Risk Factors" are specifically incorporated by
reference into this press release. Financial Highlights (Unaudited;
in thousands, except per share amounts) Three months ended Nine
months ended September 30, September 30, 2003 2002 2003 2002
OPERATING DATA Revenues $73,480 $73,246 $217,460 $215,074 Net
income (loss) available to common shareholders (4,514) 3,291
(3,135) 39,649 Net income (loss) available to common shareholders,
excluding severance and proxy charges (Table 1) (4,514) 3,291
20,693 39,649 Funds from operations available to common
shareholders (Table 2) 16,759 25,307 20,194 75,170 Funds from
operations available to common shareholders, excluding severance,
proxy and asset impairment charges (Table 2) 20,103 27,156 64,393
84,672 Weighted average shares outstanding - diluted 37,857,411
36,916,835 37,524,488 36,941,598 Weighted average shares and units
outstanding - diluted 42,206,352 42,035,723 42,103,916 42,060,486
PER COMMON SHARE DATA - DILUTED Net income (loss) available to
common shareholders $(0.12) $0.09 $(0.08) $1.07 Net income (loss)
available to common shareholders, excluding severance and proxy
charges (Table 1) $(0.12) $0.09 $0.55 $1.07 Funds from operations
available to common shareholders (Table 2) $0.40 $0.60 $0.48 $1.79
Funds from operations available to common shareholders, excluding
severance, proxy and asset impairment charges (Table 2) $0.48 $0.65
$1.53 $2.01 Dividends declared $0.45 $0.78 $1.35 $2.34 Table 1
Reconciliation of Net Income Available to Common Shareholders to
Net Income Available to Common Shareholders, Excluding Severance
and Proxy Charges (Unaudited; in thousands, except per share
amounts) Three months Nine months ended ended September 30,
September 30, 2003 2002 2003 2002 Net income (loss) available to
common shareholders $(4,514) $3,291 $(3,135) $39,649 Severance
charges - - 21,506 - Proxy and related costs - - 5,231 - Minority
interest impact of charges (1) - - (2,909) - Net income (loss)
available to common shareholders, excluding severance and proxy
charges $(4,514) $3,291 20,693 39,649 Weighted average shares
outstanding - diluted 37,857 36,917 37,524 36,942 Net income
available to common shareholders, excluding severance, proxy and
asset impairment charges - per diluted share $(0.12) $0.09 $0.55
$1.07 (1) Computed at 10.88% for the nine months ended September
30, 2003. Table 2 Reconciliation of Net Income Available to Common
Shareholders to Funds From Operations Available to Common
Shareholders (Unaudited; in thousands, except per share amounts)
Three months ended Nine months ended September 30, September 30,
2003 2002 2003 2002 Net income (loss) available to common
shareholders $(4,514) $3,291 $(3,135) $39,649 Minority interest of
common unitholders - continuing operations (457) 244 (3,160) 2,791
Minority interest in discontinued operations 11 211 2,783 2,699
Gains on property sales - continuing operations - - - (13,275)
Gains on property sales - unconsolidated entities - - (8,395) -
Losses (gains) on property sales - discontinued operations
(excluding asset impairment losses) (185) 321 (33,690) (18,065)
Depreciation on wholly-owned real estate assets, net 21,571 20,904
64,555 60,635 Depreciation on real estate assets held in
unconsolidated entities 333 336 1,236 736 Funds from operations
available to common shareholders (1) 16,759 25,307 20,194 75,170
Severance charges - - 21,506 - Proxy and related costs - - 5,231 -
Asset impairment charges 3,344 1,849 17,462 9,502 Funds from
operations available to common shareholders, excluding severance,
proxy and asset impairment charges $20,103 $27,156 $64,393 $84,672
Weighted average shares and units outstanding - diluted 42,206
42,036 42,104 42,060 Funds from operations - per diluted share
$0.40 $0.60 $0.48 $1.79 Funds from operations, excluding severance,
proxy and asset impairment charges - per diluted share $0.48 $0.65
$1.53 $2.01 (1) For the three and nine months ended September 30,
2002, FFO available to common shareholders has been restated from
the prior year presentation to reflect a reduction of $1,849 and
$9,502 for impairment losses on real estate assets resulting from
the NAREIT modification of the definition of FFO. For the nine
months ended September 30, 2003, FFO available to common
shareholders has been restated to reflect a reduction of $14,118
for impairment losses on real estate recognized in the first half
of 2003. Additionally for the nine months ended September 30, 2002,
FFO has been restated from the prior year presentation to reflect a
reduction of $136 for early debt extinguishment costs reclassified
from extraordinary items to operating expenses under SFAS No. 145.
Table 3 Reconciliation of Same Store Net Operating Income (NOI) to
Income from Continuing Operations before Equity in Income (Losses)
of Unconsolidated Entities, Gains on Property Sales and Minority
Interest (Dollars in thousands) Three months ended Nine months
ended September 30, September 30, 2003 2002 2003 2002 Total same
store NOI $35,247 $37,483 $105,980 $113,376 Property NOI from other
operating segments 6,763 5,452 19,424 13,771 Consolidated property
NOI 42,010 42,935 125,404 127,147 Add: Interest income 223 316 708
1,002 Minority interest in consolidated property partnerships 677
537 1,359 1,480 Less: Depreciation (21,553) (19,311) (62,097)
(55,637) Interest (17,122) (13,676) (48,992) (37,386) Amortization
of deferred loan costs (1,084) (588) (2,840) (1,711) General and
administrative (3,735) (3,495) (10,697) (10,980) Other expenses
(277) - (844) (136) Severance charges - - (21,506) - Proxy and
related charges - - (5,231) - Income (loss) from continuing
operations before equity in income (losses) of unconsolidated
entities, gains on property sales and minority interest $(861)
$6,718 $(24,736) $23,779 Table 4 Same Store Net Operating Income
(NOI) Summary by Market (Dollars in thousands) Three months ended
September 30, 2003 2002 % Change Rental and other revenues Atlanta
$32,740 $34,242 (4.40)% Dallas 12,200 12,591 (3.10)% Tampa 4,400
4,577 (3.90)% Other 6,634 6,597 0.60 % Total rental and other
revenues 55,974 58,007 (3.50)% Property operating and maintenance
expenses (excluding depreciation and amortization) Atlanta 11,727
11,247 4.30 % Dallas 4,941 5,236 (5.60)% Tampa 1,753 1,753 - Other
2,306 2,288 0.80 % Total property operating and maintenance
expenses (excluding depreciation and amortization) 20,727 20,524
1.00 % Net operating income Atlanta 21,013 22,995 (8.60)% Dallas
7,259 7,355 (1.30)% Tampa 2,647 2,824 (6.30)% Other 4,328 4,309
0.50 % Total same store NOI $35,247 $37,483 (6.00)% Nine months
ended September 30, 2003 2002 % Change Rental and other revenues
Atlanta $97,509 $102,398 (4.80)% Dallas 36,362 37,598 (3.30)% Tampa
13,051 13,829 (5.60)% Other 19,619 19,611 - Total rental and other
revenues 166,541 173,436 (4.00)% Property operating and maintenance
expenses (excluding depreciation and amortization) Atlanta 33,782
32,881 2.70 % Dallas 14,731 15,018 (1.90)% Tampa 5,146 5,233
(1.70)% Other 6,902 6,928 (0.40)% Total property operating and
maintenance expenses (excluding depreciation and amortization)
60,561 60,060 0.80 % Net operating income Atlanta 63,727 69,517
(8.30)% Dallas 21,631 22,580 (4.20)% Tampa 7,905 8,596 (8.00)%
Other 12,717 12,683 0.30 % Total same store NOI $105,980 $113,376
(6.50)% Table 5 Reconciliation of Forecasted Net Income Per Common
Share to Forecasted Funds From Operations Per Common Share Three
months ended December 31, 2003 Low Range High Range Forecasted net
income, per share $0.30 $0.31 Forecasted gains on property sales,
per share (0.30) (0.31) Forecasted real estate depreciation, per
share 0.47 0.48 Forecasted funds from operations, per share $0.47
$0.48 DATASOURCE: Post Properties, Inc. CONTACT: Janie Maddox of
Post Properties, Inc., +1-404-846-5056 Web site:
http://www.postproperties.com/
http://www.postproperties.com/posthome.nsf/ExtList/2003-3QFinancials
Copyright
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