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): August 3, 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 August 3, 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 June 30, 2015. The Earnings Release and Supplemental Financial Data contain information about the Registrants
financial condition and results of operations for the quarterly period ended June 30, 2015. 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: August 3, 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: August 3, 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 Second Quarter 2015 Earnings
Increases Full-Year Guidance and Announces $100 Million Share Repurchase Program
Investor/Analyst Conference Call Scheduled for Tuesday, August 4 at 10:00 a.m. ET
ATLANTA, Monday, August 3, 2015 - Post Properties, Inc. (NYSE: PPS) announced today net income available to common shareholders of
$18.7 million, or $0.34 per diluted share, for the second quarter of 2015 compared to $46.8 million, or $0.86 per diluted share, for the second quarter of 2014.
Net income available to common shareholders for the six months ended June 30, 2015, was $37.7 million, or $0.69 per diluted share, compared to $60.1 million, or $1.10 per diluted share, for the six
months ended June 30, 2014.
Net income for the first six months of 2015 included a gain on the sale of real estate
assets of $1.5 million. Net income for the three and six months ended June 30, 2014, included gains on sales of real estate assets of $36.1 million and $36.9 million, respectively, offset by a loss of $4.3 million on the extinguishment of
indebtedness.
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 second quarter of 2015 was $40.4 million, or $0.74 per diluted share, compared to $31.7 million, or $0.58 per diluted share for the second quarter of 2014. FFO for the three months ended
June 30, 2014 included a net loss on extinguishment of indebtedness of $4.3 million, or $0.08 per diluted share.
FFO for
the six months ended June 30, 2015 was $78.9 million, or $1.44 per diluted share, compared to $66.8 million, or $1.22 per diluted share, for the six months ended June 30, 2014. FFO for the first half of 2015 included losses on
extinguishment of indebtedness of $0.2 million, or less than $0.01 per diluted share. FFO for the first half of 2014 included FFO from condominium activities of $0.8 million, or $0.01 per diluted share, as well as the net loss on extinguishment of
indebtedness of $4.3 million, or $0.08 per diluted share.
Said Dave Stockert, Posts CEO, In the second quarter we
posted another double-digit growth rate in earnings and cash flow, on solid apartment market conditions. As a result of the Companys performance in the first half, we are increasing full-year guidance. We are also setting aside $100 million of
capital to pursue share repurchases over roughly the next four quarters where we believe we can capture the difference between the share price and the underlying net asset value of the portfolio.
Same Store Community Data
Total revenues at the Companys 50 same store communities, containing 18,780 apartment units, increased 2.8% and total operating
expenses increased 2.6% during the second quarter of 2015, compared to the second quarter of 2014, producing a 2.9% increase in same store net operating income (NOI). The average monthly rental rate per unit increased 2.2% during the
second quarter of 2015, compared to the second quarter of 2014. Average economic occupancy was 96.0% in the second quarter of 2015, compared to 95.9% for the second quarter of 2014.
On a sequential basis, total revenues for the same store communities increased 2.1% and total operating expenses increased 3.3%,
resulting in a 1.3% increase in same store NOI for the second quarter of 2015, compared to the first quarter of 2015. On a sequential basis, the average monthly rental rate per unit increased 0.6%. For the second quarter of 2015, average economic
occupancy at the same store communities was 96.0%, compared to 94.9% for the first quarter of 2015.
-1-
Total revenues for the same store communities increased 2.6% and total operating expenses
increased 3.4% during the first half of 2015, compared to the first half of 2014, producing a 2.0% increase in same store NOI. The average monthly rental rate per unit increased 2.3% for the six months ended June 30, 2015, compared to the six
months ended June 30, 2014. For the six months ended June 30, 2015, average economic occupancy at the Companys same store communities was 95.5% compared to 95.6% for the six months ended June 30, 2014.
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 2) accompanying this press release. Information on same store NOI and average rental rate per unit by geographic market is also included in the financial data (Table 3) accompanying this press release.
Investment Activity
Development Activity
The Company announced today a modest expansion of its current development project at the Post Parkside at Wade, Phase II community to include 15 luxury townhomes with an average unit size of
approximately 1,893 square feet. These for-rent townhomes are expected to have a total estimated development cost of approximately $4.5 million and are expected to initially produce an estimated stabilized yield on cost of approximately 6.0%,
calculated on current market rents and after a 3% management fee and $300 per unit replacement reserve.
In the aggregate, the
Company has 1,834 units in five apartment communities, and approximately 5,800 square feet of retail space, under development with a total estimated cost of $369.9 million, and a remaining funding requirement of $228.6 million. The Company believes
it has adequate internal and external resources to fund its development commitments.
Share Repurchase Program
The Company announced today that it plans to allocate up to $100 million of capital, under its previously existing authorization, to
pursue a program of share repurchases over approximately the next 12 months. Such repurchases are expected to be conditioned on the trading price of the Companys common stock in relation to managements estimates of the net asset value of
the Companys portfolio, and on general economic and market conditions. There can be no assurance that any shares will be repurchased under this program.
Financing Activity
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 30.7% at June 30, 2015.
As of July 31, 2015, the Company had cash and cash
equivalents of $95 million. Additionally, the Company had no outstanding borrowings, and letters of credit totaling $0.1 million under its combined $330 million unsecured lines of credit. The Company has no principal debt maturities until 2017.
Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP measures in the Companys
financial statements are included in the financial data (Table 4) accompanying this press release.
2015 Outlook
The estimates and assumptions presented below are forward looking and are based on the Companys future view of the apartment markets
and of general economic conditions, as well as other risks outlined below under the caption Forward-Looking Statements. There can be no assurance that the Companys actual results will not differ materially from the estimates set
forth below. The Company assumes no obligation to update this guidance in the future.
-2-
Based on its current outlook, the Company anticipates that FFO and AFFO per diluted share
for the full year 2015 will be in the range set forth below. Adjusted Funds from Operations (AFFO) per share is defined as FFO per share less operating property capital expenditures after adjusting for the impact of non-cash
straight-line long-term ground lease expense and debt extinguishment losses.
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Current Outlook |
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Previously Issued Outlook |
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FFO |
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$ |
2.90 - $2.96 |
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$ |
2.85 - $2.95 |
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AFFO |
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$ |
2.44 - $2.52 |
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$ |
2.39 - $2.51 |
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There were no significant changes in the Companys previously disclosed same store NOI guidance or other
assumptions.
The Company anticipates that net income available to common shareholders will be in the range of $1.33 to $1.41
per diluted share, as compared to its previously issued outlook 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, and gains on sales of real estate assets of $0.03 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.
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.
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.
-3-
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.
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.
-4-
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 plus other
rental fees 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 Tuesday, August 4, at 10:00 a.m. ET. The telephone
numbers are 888-481-2877 for US and Canada callers and 719-325-2452 for international callers. The access code is 6661571. 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 Tuesday, August 4, and will be available until Tuesday, August 11, 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 6661571. 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. 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 23,365 apartment units in 59 communities, including 1,471 apartment units in four
communities held in unconsolidated entities and 1,834 apartment units in five communities currently under development.
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 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 apartment community sales and the use of proceeds
thereof, expectations regarding use of proceeds from unsecured bank credit facilities, expectations regarding share repurchases, 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.
-5-
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, 2014
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, 2014 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.
-6-
Financial Highlights
(Unaudited; in thousands, except per share and unit amounts)
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Three months ended June 30, |
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Six months ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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OPERATING DATA |
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Total revenues |
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$ |
95,431 |
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$ |
95,026 |
|
|
$ |
188,862 |
|
|
$ |
188,538 |
|
Net income available to common shareholders |
|
$ |
18,688 |
|
|
$ |
46,797 |
|
|
$ |
37,709 |
|
|
$ |
60,111 |
|
Funds from operations available to common shareholders and unitholders (Table 1) |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
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|
|
|
|
|
Weighted average shares outstanding - diluted |
|
|
54,469 |
|
|
|
54,335 |
|
|
|
54,467 |
|
|
|
54,314 |
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Weighted average shares and units outstanding - diluted |
|
|
54,590 |
|
|
|
54,470 |
|
|
|
54,588 |
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|
|
54,449 |
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PER COMMON SHARE DATA - DILUTED |
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Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.86 |
|
|
$ |
0.69 |
|
|
$ |
1.10 |
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|
|
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|
|
Funds from operations available to common shareholders and unitholders (Table 1) (1) |
|
$ |
0.74 |
|
|
$ |
0.58 |
|
|
$ |
1.44 |
|
|
$ |
1.22 |
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Dividends declared |
|
$ |
0.44 |
|
|
$ |
0.40 |
|
|
$ |
0.84 |
|
|
$ |
0.76 |
|
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 14 and 112 for the three months and 15 and 115 for the six months ended June 30, 2015 and 2014, respectively. Additionally, diluted weighted average shares and units included the impact of
non-vested shares and units totaling 138 and 130 for the three months and 128 and 121 for the six months ended June 30, 2015 and 2014, 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. |
-7-
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)
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Three months ended June 30, |
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Six months ended June 30, |
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|
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2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Net income available to common shareholders |
|
$ |
18,688 |
|
|
$ |
46,797 |
|
|
$ |
37,709 |
|
|
$ |
60,111 |
|
Noncontrolling interests - Operating Partnership |
|
|
41 |
|
|
|
118 |
|
|
|
83 |
|
|
|
151 |
|
Depreciation on consolidated real estate assets, net |
|
|
21,073 |
|
|
|
20,581 |
|
|
|
41,985 |
|
|
|
42,071 |
|
Depreciation on real estate assets held in unconsolidated entities |
|
|
300 |
|
|
|
294 |
|
|
|
599 |
|
|
|
586 |
|
Gains on sales of depreciable real estate assets |
|
|
298 |
|
|
|
(36,092 |
) |
|
|
(1,475 |
) |
|
|
(36,092 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders - core operations |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,017 |
|
Funds from operations available to common shareholders and unitholders - condominiums |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations - per share and unit - diluted (1) |
|
$ |
0.74 |
|
|
$ |
0.58 |
|
|
$ |
1.44 |
|
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per share and unit - core operations |
|
$ |
0.74 |
|
|
$ |
0.58 |
|
|
$ |
1.44 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units outstanding - diluted (1) |
|
|
54,728 |
|
|
|
54,600 |
|
|
|
54,716 |
|
|
|
54,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 14 and 112 for the three months and 15 and 115 for the
six months ended June 30, 2015 and 2014, respectively. Additionally, diluted weighted average shares and units included the impact of non-vested shares and units totaling 138 and 130 for the three months and 128 and 121 for the six months ended
June 30, 2015 and 2014, 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 2
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Unaudited; In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
|
March 31, 2015 |
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
Total same store NOI |
|
$ |
50,981 |
|
|
$ |
49,547 |
|
|
$ |
50,331 |
|
|
$ |
101,312 |
|
|
$ |
99,293 |
|
Property NOI from other operating segments |
|
|
2,664 |
|
|
|
3,461 |
|
|
|
2,664 |
|
|
|
5,328 |
|
|
|
6,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI |
|
|
53,645 |
|
|
|
53,008 |
|
|
|
52,995 |
|
|
|
106,640 |
|
|
|
105,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
43 |
|
|
|
4 |
|
|
|
81 |
|
|
|
124 |
|
|
|
16 |
|
Other revenues |
|
|
274 |
|
|
|
223 |
|
|
|
313 |
|
|
|
587 |
|
|
|
442 |
|
Depreciation |
|
|
(21,418 |
) |
|
|
(20,829 |
) |
|
|
(21,257 |
) |
|
|
(42,675 |
) |
|
|
(42,596 |
) |
Interest expense |
|
|
(7,753 |
) |
|
|
(10,433 |
) |
|
|
(8,093 |
) |
|
|
(15,846 |
) |
|
|
(21,677 |
) |
Amortization of deferred financing costs |
|
|
(433 |
) |
|
|
(620 |
) |
|
|
(449 |
) |
|
|
(882 |
) |
|
|
(1,265 |
) |
General and administrative |
|
|
(4,353 |
) |
|
|
(3,966 |
) |
|
|
(5,014 |
) |
|
|
(9,367 |
) |
|
|
(8,094 |
) |
Investment and development |
|
|
(275 |
) |
|
|
(794 |
) |
|
|
(235 |
) |
|
|
(510 |
) |
|
|
(1,605 |
) |
Other investment costs |
|
|
(154 |
) |
|
|
(210 |
) |
|
|
(134 |
) |
|
|
(288 |
) |
|
|
(483 |
) |
Other expenses |
|
|
- |
|
|
|
(502 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,409 |
) |
Equity in income of unconsolidated real estate entities, net |
|
|
568 |
|
|
|
501 |
|
|
|
397 |
|
|
|
965 |
|
|
|
986 |
|
Gains on sales of real estate assets, net |
|
|
(298 |
) |
|
|
36,092 |
|
|
|
1,773 |
|
|
|
1,475 |
|
|
|
36,902 |
|
Other income (expense), net |
|
|
(195 |
) |
|
|
(196 |
) |
|
|
(195 |
) |
|
|
(390 |
) |
|
|
(391 |
) |
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
(4,287 |
) |
|
|
(197 |
) |
|
|
(197 |
) |
|
|
(4,287 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,651 |
|
|
$ |
47,991 |
|
|
$ |
19,985 |
|
|
$ |
39,636 |
|
|
$ |
62,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-9-
Table 3
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Q2 15 vs.
Q2 14 % Change |
|
|
Q2
15 vs. Q1 15 % Change |
|
|
Q2 15 %
Same Store NOI |
|
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
|
March 31, 2015 |
|
|
|
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
22,411 |
|
|
$ |
21,305 |
|
|
$ |
21,942 |
|
|
|
5.2% |
|
|
|
2.1% |
|
|
|
|
|
Dallas |
|
|
18,555 |
|
|
|
17,970 |
|
|
|
18,314 |
|
|
|
3.3% |
|
|
|
1.3% |
|
|
|
|
|
Houston |
|
|
2,856 |
|
|
|
2,925 |
|
|
|
2,880 |
|
|
|
(2.4)% |
|
|
|
(0.8)% |
|
|
|
|
|
Austin |
|
|
4,395 |
|
|
|
4,387 |
|
|
|
4,290 |
|
|
|
0.2% |
|
|
|
2.4% |
|
|
|
|
|
Washington, D.C. |
|
|
15,520 |
|
|
|
15,385 |
|
|
|
14,955 |
|
|
|
0.9% |
|
|
|
3.8% |
|
|
|
|
|
Tampa |
|
|
9,643 |
|
|
|
9,350 |
|
|
|
9,501 |
|
|
|
3.1% |
|
|
|
1.5% |
|
|
|
|
|
Orlando |
|
|
4,092 |
|
|
|
4,007 |
|
|
|
4,059 |
|
|
|
2.1% |
|
|
|
0.8% |
|
|
|
|
|
Charlotte |
|
|
6,929 |
|
|
|
6,780 |
|
|
|
6,757 |
|
|
|
2.2% |
|
|
|
2.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
84,401 |
|
|
|
82,109 |
|
|
|
82,698 |
|
|
|
2.8% |
|
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
8,971 |
|
|
|
8,766 |
|
|
|
8,533 |
|
|
|
2.3% |
|
|
|
5.1% |
|
|
|
|
|
Dallas |
|
|
8,389 |
|
|
|
7,882 |
|
|
|
8,067 |
|
|
|
6.4% |
|
|
|
4.0% |
|
|
|
|
|
Houston |
|
|
1,148 |
|
|
|
1,257 |
|
|
|
1,277 |
|
|
|
(8.7)% |
|
|
|
(10.1)% |
|
|
|
|
|
Austin |
|
|
2,133 |
|
|
|
1,949 |
|
|
|
2,066 |
|
|
|
9.4% |
|
|
|
3.2% |
|
|
|
|
|
Washington, D.C. |
|
|
5,645 |
|
|
|
5,376 |
|
|
|
5,376 |
|
|
|
5.0% |
|
|
|
5.0% |
|
|
|
|
|
Tampa |
|
|
3,369 |
|
|
|
3,749 |
|
|
|
3,268 |
|
|
|
(10.1)% |
|
|
|
3.1% |
|
|
|
|
|
Orlando |
|
|
1,577 |
|
|
|
1,506 |
|
|
|
1,465 |
|
|
|
4.7% |
|
|
|
7.6% |
|
|
|
|
|
Charlotte |
|
|
2,188 |
|
|
|
2,077 |
|
|
|
2,315 |
|
|
|
5.3% |
|
|
|
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
33,420 |
|
|
|
32,562 |
|
|
|
32,367 |
|
|
|
2.6% |
|
|
|
3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
13,440 |
|
|
|
12,539 |
|
|
|
13,409 |
|
|
|
7.2% |
|
|
|
0.2% |
|
|
|
26.4% |
|
Dallas |
|
|
10,166 |
|
|
|
10,088 |
|
|
|
10,247 |
|
|
|
0.8% |
|
|
|
(0.8)% |
|
|
|
19.9% |
|
Houston |
|
|
1,708 |
|
|
|
1,668 |
|
|
|
1,603 |
|
|
|
2.4% |
|
|
|
6.6% |
|
|
|
3.4% |
|
Austin |
|
|
2,262 |
|
|
|
2,438 |
|
|
|
2,224 |
|
|
|
(7.2)% |
|
|
|
1.7% |
|
|
|
4.4% |
|
Washington, D.C. |
|
|
9,875 |
|
|
|
10,009 |
|
|
|
9,579 |
|
|
|
(1.3)% |
|
|
|
3.1% |
|
|
|
19.4% |
|
Tampa |
|
|
6,274 |
|
|
|
5,601 |
|
|
|
6,233 |
|
|
|
12.0% |
|
|
|
0.7% |
|
|
|
12.3% |
|
Orlando |
|
|
2,515 |
|
|
|
2,501 |
|
|
|
2,594 |
|
|
|
0.6% |
|
|
|
(3.0)% |
|
|
|
4.9% |
|
Charlotte |
|
|
4,741 |
|
|
|
4,703 |
|
|
|
4,442 |
|
|
|
0.8% |
|
|
|
6.7% |
|
|
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
50,981 |
|
|
$ |
49,547 |
|
|
$ |
50,331 |
|
|
|
2.9% |
|
|
|
1.3% |
|
|
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,391 |
|
|
$ |
1,323 |
|
|
$ |
1,374 |
|
|
|
5.1% |
|
|
|
1.2% |
|
|
|
|
|
Dallas |
|
|
1,275 |
|
|
|
1,240 |
|
|
|
1,263 |
|
|
|
2.8% |
|
|
|
1.0% |
|
|
|
|
|
Houston |
|
|
1,505 |
|
|
|
1,470 |
|
|
|
1,515 |
|
|
|
2.4% |
|
|
|
(0.6)% |
|
|
|
|
|
Austin |
|
|
1,571 |
|
|
|
1,581 |
|
|
|
1,569 |
|
|
|
(0.6)% |
|
|
|
0.1% |
|
|
|
|
|
Washington, D.C. |
|
|
1,893 |
|
|
|
1,943 |
|
|
|
1,913 |
|
|
|
(2.6)% |
|
|
|
(1.1)% |
|
|
|
|
|
Tampa |
|
|
1,458 |
|
|
|
1,418 |
|
|
|
1,439 |
|
|
|
2.8% |
|
|
|
1.3% |
|
|
|
|
|
Orlando |
|
|
1,462 |
|
|
|
1,432 |
|
|
|
1,451 |
|
|
|
2.1% |
|
|
|
0.7% |
|
|
|
|
|
Charlotte |
|
|
1,297 |
|
|
|
1,255 |
|
|
|
1,287 |
|
|
|
3.3% |
|
|
|
0.7% |
|
|
|
|
|
Total average rental rate per unit |
|
|
1,448 |
|
|
|
1,417 |
|
|
|
1,439 |
|
|
|
2.2% |
|
|
|
0.6% |
|
|
|
|
|
-10-
Table 3 (cont)
Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
June 30, 2015 |
|
|
June 30, 2014 |
|
|
% Change |
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
44,353 |
|
|
$ |
42,151 |
|
|
|
5.2% |
|
Dallas |
|
|
36,870 |
|
|
|
35,776 |
|
|
|
3.1% |
|
Houston |
|
|
5,735 |
|
|
|
5,798 |
|
|
|
(1.1)% |
|
Austin |
|
|
8,685 |
|
|
|
8,745 |
|
|
|
(0.7)% |
|
Washington, D.C. |
|
|
30,475 |
|
|
|
30,526 |
|
|
|
(0.2)% |
|
Tampa |
|
|
19,144 |
|
|
|
18,601 |
|
|
|
2.9% |
|
Orlando |
|
|
8,151 |
|
|
|
7,926 |
|
|
|
2.8% |
|
Charlotte |
|
|
13,685 |
|
|
|
13,376 |
|
|
|
2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
167,098 |
|
|
|
162,899 |
|
|
|
2.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
17,504 |
|
|
|
16,857 |
|
|
|
3.8% |
|
Dallas |
|
|
16,456 |
|
|
|
15,547 |
|
|
|
5.8% |
|
Houston |
|
|
2,425 |
|
|
|
2,394 |
|
|
|
1.3% |
|
Austin |
|
|
4,199 |
|
|
|
3,856 |
|
|
|
8.9% |
|
Washington, D.C. |
|
|
11,021 |
|
|
|
10,669 |
|
|
|
3.3% |
|
Tampa |
|
|
6,638 |
|
|
|
7,164 |
|
|
|
(7.3)% |
|
Orlando |
|
|
3,041 |
|
|
|
2,926 |
|
|
|
3.9% |
|
Charlotte |
|
|
4,502 |
|
|
|
4,193 |
|
|
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
65,786 |
|
|
|
63,606 |
|
|
|
3.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
26,849 |
|
|
|
25,294 |
|
|
|
6.1% |
|
Dallas |
|
|
20,414 |
|
|
|
20,229 |
|
|
|
0.9% |
|
Houston |
|
|
3,310 |
|
|
|
3,404 |
|
|
|
(2.8)% |
|
Austin |
|
|
4,486 |
|
|
|
4,889 |
|
|
|
(8.2)% |
|
Washington, D.C. |
|
|
19,454 |
|
|
|
19,857 |
|
|
|
(2.0)% |
|
Tampa |
|
|
12,506 |
|
|
|
11,437 |
|
|
|
9.3% |
|
Orlando |
|
|
5,110 |
|
|
|
5,000 |
|
|
|
2.2% |
|
Charlotte |
|
|
9,183 |
|
|
|
9,183 |
|
|
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
101,312 |
|
|
$ |
99,293 |
|
|
|
2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,382 |
|
|
$ |
1,312 |
|
|
|
5.3% |
|
Dallas |
|
|
1,269 |
|
|
|
1,236 |
|
|
|
2.7% |
|
Houston |
|
|
1,510 |
|
|
|
1,457 |
|
|
|
3.6% |
|
Austin |
|
|
1,570 |
|
|
|
1,576 |
|
|
|
(0.4)% |
|
Washington, D.C. |
|
|
1,903 |
|
|
|
1,941 |
|
|
|
(2.0)% |
|
Tampa |
|
|
1,448 |
|
|
|
1,410 |
|
|
|
2.7% |
|
Orlando |
|
|
1,457 |
|
|
|
1,428 |
|
|
|
2.0% |
|
Charlotte |
|
|
1,292 |
|
|
|
1,250 |
|
|
|
3.4% |
|
Total average rental rate per unit |
|
|
1,444 |
|
|
|
1,411 |
|
|
|
2.3% |
|
-11-
Table 4
Computation of Debt Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
As of June 30, |
|
|
|
2015 |
|
|
2014 |
|
Total real estate assets per balance sheet |
|
$ |
2,151,111 |
|
|
$ |
2,221,738 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,337 |
|
|
|
57,402 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
14,982 |
|
|
|
13,403 |
|
Accumulated depreciation per balance sheet |
|
|
979,505 |
|
|
|
895,723 |
|
Accumulated depreciation on assets held for sale |
|
|
- |
|
|
|
40,986 |
|
|
|
|
|
|
|
|
|
|
Total undepreciated real estate assets (A) |
|
$ |
3,202,935 |
|
|
$ |
3,229,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
891,004 |
|
|
$ |
976,760 |
|
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) |
|
$ |
940,535 |
|
|
$ |
1,026,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt)
(B÷A) |
|
|
29.4 |
% |
|
|
31.8 |
% |
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
891,004 |
|
|
$ |
976,760 |
|
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) |
|
$ |
983,927 |
|
|
$ |
1,069,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners share of
debt) (C÷A) |
|
|
30.7 |
% |
|
|
33.1 |
% |
|
|
|
|
|
|
|
|
|
-12-
Exhibit 99.2
Second Quarter 2015
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, 2014 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, 2014 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 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
89,368 |
|
|
$ |
89,414 |
|
|
$ |
177,029 |
|
|
$ |
177,442 |
|
Other property revenues |
|
|
5,789 |
|
|
|
5,389 |
|
|
|
11,246 |
|
|
|
10,654 |
|
Other |
|
|
274 |
|
|
|
223 |
|
|
|
587 |
|
|
|
442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
95,431 |
|
|
|
95,026 |
|
|
|
188,862 |
|
|
|
188,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance (exclusive of items shown separately below) |
|
|
41,512 |
|
|
|
41,795 |
|
|
|
81,635 |
|
|
|
82,391 |
|
Depreciation |
|
|
21,418 |
|
|
|
20,829 |
|
|
|
42,675 |
|
|
|
42,596 |
|
General and administrative |
|
|
4,353 |
|
|
|
3,966 |
|
|
|
9,367 |
|
|
|
8,094 |
|
Investment and development (1) |
|
|
275 |
|
|
|
794 |
|
|
|
510 |
|
|
|
1,605 |
|
Other investment costs (1) |
|
|
154 |
|
|
|
210 |
|
|
|
288 |
|
|
|
483 |
|
Other expenses (2) |
|
|
|
|
|
|
502 |
|
|
|
|
|
|
|
1,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses |
|
|
67,712 |
|
|
|
68,096 |
|
|
|
134,475 |
|
|
|
136,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
27,719 |
|
|
|
26,930 |
|
|
|
54,387 |
|
|
|
51,960 |
|
|
|
|
|
|
Interest income |
|
|
43 |
|
|
|
4 |
|
|
|
124 |
|
|
|
16 |
|
Interest expense |
|
|
(7,753) |
|
|
|
(10,433) |
|
|
|
(15,846) |
|
|
|
(21,677) |
|
Amortization of deferred financing costs |
|
|
(433) |
|
|
|
(620) |
|
|
|
(882) |
|
|
|
(1,265) |
|
Equity in income of unconsolidated real estate entities, net |
|
|
568 |
|
|
|
501 |
|
|
|
965 |
|
|
|
986 |
|
Gains on sales of real estate assets, net (3) |
|
|
(298) |
|
|
|
36,092 |
|
|
|
1,475 |
|
|
|
36,902 |
|
Other income (expense), net |
|
|
(195) |
|
|
|
(196) |
|
|
|
(390) |
|
|
|
(391) |
|
Net loss on extinguishment of indebtedness (4) |
|
|
|
|
|
|
(4,287) |
|
|
|
(197) |
|
|
|
(4,287) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
19,651 |
|
|
|
47,991 |
|
|
|
39,636 |
|
|
|
62,244 |
|
Noncontrolling interests - consolidated real estate entities |
|
|
|
|
|
|
(154) |
|
|
|
|
|
|
|
(138) |
|
Noncontrolling interests - Operating Partnership |
|
|
(41) |
|
|
|
(118) |
|
|
|
(83) |
|
|
|
(151) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to the Company |
|
|
19,610 |
|
|
|
47,719 |
|
|
|
39,553 |
|
|
|
61,955 |
|
Dividends to preferred shareholders |
|
|
(922) |
|
|
|
(922) |
|
|
|
(1,844) |
|
|
|
(1,844) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
18,688 |
|
|
$ |
46,797 |
|
|
$ |
37,709 |
|
|
$ |
60,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data - Basic (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.86 |
|
|
$ |
0.69 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
|
54,455 |
|
|
|
54,223 |
|
|
|
54,452 |
|
|
|
54,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data - Diluted (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
|
$ |
0.34 |
|
|
$ |
0.86 |
|
|
$ |
0.69 |
|
|
$ |
1.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted |
|
|
54,469 |
|
|
|
54,335 |
|
|
|
54,467 |
|
|
|
54,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Consolidated Financial Statements on page 6
|
|
|
Supplemental Financial Data |
|
3 | P a g e |
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 June 30, |
|
|
Six months ended June 30, |
|
Funds From Operations |
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Net income available to common shareholders |
|
$ |
18,688 |
|
|
$ |
46,797 |
|
|
$ |
37,709 |
|
|
$ |
60,111 |
|
Noncontrolling interests - Operating Partnership |
|
|
41 |
|
|
|
118 |
|
|
|
83 |
|
|
|
151 |
|
Depreciation on consolidated real estate assets, net (6) |
|
|
21,073 |
|
|
|
20,581 |
|
|
|
41,985 |
|
|
|
42,071 |
|
Depreciation on real estate assets held in unconsolidated entities |
|
|
300 |
|
|
|
294 |
|
|
|
599 |
|
|
|
586 |
|
Gains on sales of depreciable real estate assets |
|
|
298 |
|
|
|
(36,092) |
|
|
|
(1,475) |
|
|
|
(36,092) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (A) |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders - core operations (B) |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,017 |
|
Funds from operations available to common shareholders and unitholders - condominiums |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (A) |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Funds From Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations available to common shareholders and unitholders (A) |
|
$ |
40,400 |
|
|
$ |
31,698 |
|
|
$ |
78,901 |
|
|
$ |
66,827 |
|
Annually recurring capital expenditures |
|
|
(3,871) |
|
|
|
(3,795) |
|
|
|
(6,139) |
|
|
|
(6,216) |
|
Periodically recurring capital expenditures |
|
|
(1,824) |
|
|
|
(2,087) |
|
|
|
(2,522) |
|
|
|
(4,608) |
|
Non-cash straight-line adjustment for ground lease expenses |
|
|
112 |
|
|
|
115 |
|
|
|
227 |
|
|
|
234 |
|
Net loss on early extinguishment of indebtedness |
|
|
- |
|
|
|
4,287 |
|
|
|
197 |
|
|
|
4,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders (7) (C) |
|
$ |
34,817 |
|
|
$ |
30,218 |
|
|
$ |
70,664 |
|
|
$ |
60,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders - core operations (7) (D) |
|
$ |
34,817 |
|
|
$ |
30,218 |
|
|
$ |
70,664 |
|
|
$ |
59,714 |
|
Adjusted funds from operations available to common shareholders and unitholders - condominiums (7) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations available to common shareholders and unitholders (7) (C) |
|
$ |
34,817 |
|
|
$ |
30,218 |
|
|
$ |
70,664 |
|
|
$ |
60,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share Data - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations per share or unit, as defined (A÷E) |
|
$ |
0.74 |
|
|
$ |
0.58 |
|
|
$ |
1.44 |
|
|
$ |
1.22 |
|
Funds from operations per share or unit - core operations (B÷E) |
|
$ |
0.74 |
|
|
$ |
0.58 |
|
|
$ |
1.44 |
|
|
$ |
1.21 |
|
Adjusted funds from operations per share or unit, as defined (7) (C÷E) |
|
$ |
0.64 |
|
|
$ |
0.55 |
|
|
$ |
1.29 |
|
|
$ |
1.11 |
|
Adjusted funds from operations per share or unit - core operations (7) (D÷E) |
|
$ |
0.64 |
|
|
$ |
0.55 |
|
|
$ |
1.29 |
|
|
$ |
1.09 |
|
Dividends declared |
|
$ |
0.44 |
|
|
$ |
0.40 |
|
|
$ |
0.84 |
|
|
$ |
0.76 |
|
Weighted average shares outstanding (8) |
|
|
54,607 |
|
|
|
54,465 |
|
|
|
54,595 |
|
|
|
54,435 |
|
Weighted average shares and units outstanding (8) (E) |
|
|
54,728 |
|
|
|
54,600 |
|
|
|
54,716 |
|
|
|
54,570 |
|
See Notes to Funds from Operations and Adjusted Funds from Operations on page 6
|
|
|
Supplemental Financial Data |
|
4 | P a g e |
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
June 30,
2015 |
|
|
December 31, 2014 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Real estate assets |
|
|
|
|
|
|
|
|
Land |
|
$ |
319,401 |
|
|
$ |
317,077 |
|
Building and improvements |
|
|
2,357,576 |
|
|
|
2,323,626 |
|
Furniture, fixtures and equipment |
|
|
314,552 |
|
|
|
304,534 |
|
Construction in progress |
|
|
109,292 |
|
|
|
86,971 |
|
Land held for future investment |
|
|
29,795 |
|
|
|
33,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,130,616 |
|
|
|
3,065,405 |
|
Less: accumulated depreciation |
|
|
(979,505) |
|
|
|
(937,310) |
|
Assets held for sale, net of accumulated depreciation of $207 at December 31, 2014 |
|
|
- |
|
|
|
672 |
|
|
|
|
|
|
|
|
|
|
Total real estate assets |
|
|
2,151,111 |
|
|
|
2,128,767 |
|
Investments in and advances to unconsolidated real estate entities |
|
|
3,957 |
|
|
|
4,059 |
|
Cash and cash equivalents |
|
|
119,057 |
|
|
|
140,512 |
|
Restricted cash |
|
|
3,885 |
|
|
|
3,572 |
|
Deferred financing costs, net |
|
|
7,924 |
|
|
|
5,117 |
|
Other assets |
|
|
28,098 |
|
|
|
29,771 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,314,032 |
|
|
$ |
2,311,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, redeemable common units and equity |
|
|
|
|
|
|
|
|
Indebtedness |
|
$ |
891,004 |
|
|
$ |
892,459 |
|
Accounts payable, accrued expenses and other |
|
|
78,039 |
|
|
|
70,616 |
|
Investments in unconsolidated real estate entities |
|
|
16,437 |
|
|
|
16,624 |
|
Dividends and distributions payable |
|
|
24,074 |
|
|
|
21,852 |
|
Accrued interest payable |
|
|
4,003 |
|
|
|
4,229 |
|
Security deposits and prepaid rents |
|
|
13,684 |
|
|
|
12,972 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
1,027,241 |
|
|
|
1,018,752 |
|
|
|
|
|
|
|
|
|
|
Redeemable common units |
|
|
6,555 |
|
|
|
7,086 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
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 54,632 shares issued and 54,592 and 54,509 shares outstanding at June 30, 2015 and December 31, 2014,
respectively |
|
|
546 |
|
|
|
546 |
|
Additional paid-in-capital |
|
|
1,117,450 |
|
|
|
1,114,851 |
|
Accumulated earnings |
|
|
176,979 |
|
|
|
185,001 |
|
Accumulated other comprehensive income (loss) |
|
|
(4,468) |
|
|
|
(3,675) |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,290,516 |
|
|
|
1,296,732 |
|
Less common stock in treasury, at cost, 125 and 207 shares at June 30, 2015 and December 31, 2014, respectively |
|
|
(10,280) |
|
|
|
(10,772) |
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
1,280,236 |
|
|
|
1,285,960 |
|
|
|
|
|
|
|
|
|
|
Total liabilities, redeemable common units and equity |
|
$ |
2,314,032 |
|
|
$ |
2,311,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
5 | P a g e |
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. |
2) |
Other expenses for the three months and six months ended June 30, 2014 included $502 and $659, respectively, related to the upgrade of the
Companys operating and financial software systems. For the six months ended June 30, 2014, other expenses also include casualty losses of $750. |
3) |
In the six months ended June 30, 2015, the Company sold its remaining ground-floor retail space at its former condominium community in Austin,
Texas and recognized a gain of $1,773. Additionally in 2015, gains on sales of real estate assets included state tax expense of $298 related to an asset sale. In the three months ended June 30, 2014, the Company sold an apartment community and
recognized a gain of $36,092. For the six months ended June 30, 2014, gains on sales of real estate assets also included $810, resulting from the sale of the final residential condominium unit at the Companys former condominium community
in Atlanta, Georgia. |
In 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. The Company determined that these communities did not meet the criteria for discontinued operations reporting
and, accordingly, were included in continuing operations. These communities were sold in 2014, and the Company recognized gains on sales in the second and third quarters of 2014. The revenues, expenses and net income, including gains on sales of
real estate assets, associated with these three communities, for the three and six months ended June 30, 2014 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2014 |
|
|
Six months ended June 30, 2014 |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
4,769 |
|
|
$ |
10,540 |
|
|
|
|
|
|
|
|
|
Other property revenues |
|
|
51 |
|
|
|
149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
4,820 |
|
|
|
10,689 |
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses |
|
|
(2,246) |
|
|
|
(5,343) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
2,574 |
|
|
|
5,346 |
|
|
|
|
|
|
|
|
|
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
(1,239) |
|
|
|
|
|
|
|
|
|
Interest |
|
|
(1,251) |
|
|
|
(2,588) |
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs |
|
|
(59) |
|
|
|
(118) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expenses |
|
|
(1,310) |
|
|
|
(3,945) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains on sales of real estate assets |
|
|
36,092 |
|
|
|
36,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
37,356 |
|
|
$ |
37,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, net of noncontrolling interest |
|
$ |
37,202 |
|
|
$ |
37,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4) |
In January 2015, the Company refinanced its unsecured lines of credit and term loan facilities. In connection with the refinancing, the Company
recognized an extinguishment loss of $197 related to the write-off of a portion of unamortized deferred loan costs. In 2014, the Company recognized an extinguished loss of $4,287 related to prepayment premiums and the write off of unamortized loans
associated with the prepayment of secured mortgage indebtedness. |
|
|
|
Supplemental Financial Data |
|
6 | P a g e |
5) |
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 June 30, 2015, there were 54,713 Operating Partnership units outstanding, of which 54,592, or 99.8%, were owned by the Company.
|
6) |
Depreciation on consolidated real estate assets is net of the minority interest portion of depreciation on consolidated entities.
|
7) |
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 $336 and $1,559 for the three months and $542 and $1,687 for the six months ended June 30, 2015 and 2014, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and
unitholders. |
8) |
Diluted weighted average shares and units include the impact of dilutive securities totaling 14 and 112 for the three months and 15 and 115 for the
six months ended June 30, 2015 and 2014, respectively. Additionally, basic and diluted weighted average shares and units include the impact of non-vested shares and units totaling 138 and 130 for the three months and 128 and 121 for the six
months ended June 30, 2015 and 2014, 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 |
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. 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 50 communities containing 18,780 apartment units which were fully stabilized as of January 1, 2014, are summarized in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
|
|
|
Six months ended June 30, |
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
81,860 |
|
|
$ |
79,670 |
|
|
|
2.7% |
|
|
$ |
161,998 |
|
|
$ |
157,849 |
|
|
|
2.6% |
|
Utility reimbursements |
|
|
2,541 |
|
|
|
2,439 |
|
|
|
4.2% |
|
|
|
5,100 |
|
|
|
5,050 |
|
|
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
84,401 |
|
|
|
82,109 |
|
|
|
2.8% |
|
|
|
167,098 |
|
|
|
162,899 |
|
|
|
2.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
6,738 |
|
|
|
6,676 |
|
|
|
0.9% |
|
|
|
13,637 |
|
|
|
13,398 |
|
|
|
1.8% |
|
Utility expense |
|
|
3,961 |
|
|
|
3,650 |
|
|
|
8.5% |
|
|
|
8,125 |
|
|
|
7,980 |
|
|
|
1.8% |
|
Real estate taxes and fees |
|
|
13,599 |
|
|
|
12,928 |
|
|
|
5.2% |
|
|
|
27,382 |
|
|
|
25,749 |
|
|
|
6.3% |
|
Insurance expenses |
|
|
1,279 |
|
|
|
1,328 |
|
|
|
(3.7)% |
|
|
|
2,548 |
|
|
|
2,658 |
|
|
|
(4.1)% |
|
Building and grounds repairs and maintenance (1) |
|
|
5,402 |
|
|
|
5,779 |
|
|
|
(6.5)% |
|
|
|
9,390 |
|
|
|
9,537 |
|
|
|
(1.5)% |
|
Ground lease expense |
|
|
230 |
|
|
|
230 |
|
|
|
- |
|
|
|
460 |
|
|
|
460 |
|
|
|
- |
|
Other expenses |
|
|
2,211 |
|
|
|
1,971 |
|
|
|
12.2% |
|
|
|
4,244 |
|
|
|
3,824 |
|
|
|
11.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property operating and maintenance expenses (excluding depreciation and amortization) |
|
|
33,420 |
|
|
|
32,562 |
|
|
|
2.6% |
|
|
|
65,786 |
|
|
|
63,606 |
|
|
|
3.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income |
|
$ |
50,981 |
|
|
$ |
49,547 |
|
|
|
2.9% |
|
|
$ |
101,312 |
|
|
$ |
99,293 |
|
|
|
2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income margin |
|
|
60.4% |
|
|
|
60.3% |
|
|
|
0.1% |
|
|
|
60.6% |
|
|
|
61.0% |
|
|
|
(0.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annually recurring |
|
$ |
3,744 |
|
|
$ |
3,617 |
|
|
|
3.5% |
|
|
$ |
5,960 |
|
|
$ |
5,879 |
|
|
|
1.4% |
|
Periodically recurring |
|
|
1,534 |
|
|
|
986 |
|
|
|
55.6% |
|
|
|
2,089 |
|
|
|
2,310 |
|
|
|
(9.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures (A) |
|
$ |
5,278 |
|
|
$ |
4,603 |
|
|
|
14.7% |
|
|
$ |
8,049 |
|
|
$ |
8,189 |
|
|
|
(1.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures per unit (A ÷ 18,780 units) |
|
$ |
281 |
|
|
$ |
245 |
|
|
|
14.7% |
|
|
$ |
429 |
|
|
$ |
436 |
|
|
|
(1.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly rental rate per unit (3) |
|
$ |
1,448 |
|
|
$ |
1,417 |
|
|
|
2.2% |
|
|
$ |
1,444 |
|
|
$ |
1,411 |
|
|
|
2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross turnover (4) |
|
|
56.1% |
|
|
|
63.8% |
|
|
|
(7.7)% |
|
|
|
50.5% |
|
|
|
56.5% |
|
|
|
(6.0)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net turnover (5) |
|
|
51.8% |
|
|
|
56.7% |
|
|
|
(4.9)% |
|
|
|
46.0% |
|
|
|
49.3% |
|
|
|
(3.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage rent increase - new leases (6) |
|
|
2.0% |
|
|
|
2.0% |
|
|
|
0.0% |
|
|
|
2.0% |
|
|
|
2.1% |
|
|
|
(0.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage rent increase - renewed leases (6) |
|
|
4.7% |
|
|
|
4.9% |
|
|
|
(0.2)% |
|
|
|
4.8% |
|
|
|
4.7% |
|
|
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Building and ground repairs and maintenance includes $599 and $1,192 for the three months and $733 and $1,192 for the six months ended June 30,
2015 and 2014, 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 |
SAME STORE RESULTS
(CONT)
(In thousands, except per unit data) - (Unaudited)
Same Store Operating Results by Market - Comparison of Second Quarter 2015 to Second Quarter 2014
(Increase (decrease) between periods)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
Market |
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI |
|
|
(1) |
|
Average Economic Occupancy |
|
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI |
|
|
(1) |
|
Average Economic Occupancy |
|
Atlanta |
|
|
5.2% |
|
|
|
|
|
2.3% |
|
|
|
|
|
7.2% |
|
|
|
|
|
(0.4)% |
|
|
|
5.2% |
|
|
|
|
|
3.8% |
|
|
|
|
|
6.1% |
|
|
|
|
|
(0.2)% |
|
Dallas |
|
|
3.3% |
|
|
|
|
|
6.4% |
|
|
|
|
|
0.8% |
|
|
|
|
|
0.3% |
|
|
|
3.1% |
|
|
|
|
|
5.8% |
|
|
|
|
|
0.9% |
|
|
|
|
|
0.1% |
|
Houston |
|
|
(2.4)% |
|
|
|
|
|
(8.7)% |
|
|
|
|
|
2.4% |
|
|
|
|
|
(4.5)% |
|
|
|
(1.1)% |
|
|
|
|
|
1.3% |
|
|
|
|
|
(2.8)% |
|
|
|
|
|
(4.6)% |
|
Austin |
|
|
0.2% |
|
|
|
|
|
9.4% |
|
|
|
|
|
(7.2)% |
|
|
|
|
|
0.0% |
|
|
|
(0.7)% |
|
|
|
|
|
8.9% |
|
|
|
|
|
(8.2)% |
|
|
|
|
|
(1.2)% |
|
Washington, D.C. |
|
|
0.9% |
|
|
|
|
|
5.0% |
|
|
|
|
|
(1.3)% |
|
|
|
|
|
2.5% |
|
|
|
(0.2)% |
|
|
|
|
|
3.3% |
|
|
|
|
|
(2.0)% |
|
|
|
|
|
0.8% |
|
Tampa |
|
|
3.1% |
|
|
|
|
|
(10.1)% |
|
|
|
|
|
12.0% |
|
|
|
|
|
(0.1)% |
|
|
|
2.9% |
|
|
|
|
|
(7.3)% |
|
|
|
|
|
9.3% |
|
|
|
|
|
0.1% |
|
Orlando |
|
|
2.1% |
|
|
|
|
|
4.7% |
|
|
|
|
|
0.6% |
|
|
|
|
|
(0.6)% |
|
|
|
2.8% |
|
|
|
|
|
3.9% |
|
|
|
|
|
2.2% |
|
|
|
|
|
0.4% |
|
Charlotte |
|
|
2.2% |
|
|
|
|
|
5.3% |
|
|
|
|
|
0.8% |
|
|
|
|
|
(1.5)% |
|
|
|
2.3% |
|
|
|
|
|
7.4% |
|
|
|
|
|
0.0% |
|
|
|
|
|
(1.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
2.8% |
|
|
|
|
|
2.6% |
|
|
|
|
|
2.9% |
|
|
|
|
|
0.1% |
|
|
|
2.6% |
|
|
|
|
|
3.4% |
|
|
|
|
|
2.0% |
|
|
|
|
|
(0.1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Economic Occupancy (1) |
|
|
Average Economic Occupancy (1) |
|
|
Physical |
|
|
Avg. Rental Rate Per Unit Three Months |
|
|
|
Apartment |
|
|
% of NOI
Three months ended |
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
Occupancy
at June 30, |
|
|
Ended June 30, |
|
Market |
|
Units |
|
|
June 30, 2015 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 (2) |
|
|
2015 (3) |
|
Atlanta |
|
|
5,065 |
|
|
|
26.4% |
|
|
|
96.7% |
|
|
|
97.1% |
|
|
|
96.6% |
|
|
|
96.8% |
|
|
|
95.3% |
|
|
$ |
1,391 |
|
Dallas |
|
|
4,725 |
|
|
|
19.9% |
|
|
|
96.2% |
|
|
|
95.9% |
|
|
|
95.8% |
|
|
|
95.7% |
|
|
|
95.9% |
|
|
|
1,275 |
|
Houston |
|
|
653 |
|
|
|
3.4% |
|
|
|
91.6% |
|
|
|
96.1% |
|
|
|
91.9% |
|
|
|
96.5% |
|
|
|
91.7% |
|
|
|
1,505 |
|
Austin |
|
|
935 |
|
|
|
4.4% |
|
|
|
94.0% |
|
|
|
94.0% |
|
|
|
93.2% |
|
|
|
94.4% |
|
|
|
94.7% |
|
|
|
1,571 |
|
Washington, D.C. |
|
|
2,645 |
|
|
|
19.4% |
|
|
|
96.1% |
|
|
|
93.6% |
|
|
|
93.9% |
|
|
|
93.1% |
|
|
|
96.1% |
|
|
|
1,893 |
|
Tampa |
|
|
2,111 |
|
|
|
12.3% |
|
|
|
96.9% |
|
|
|
97.0% |
|
|
|
97.0% |
|
|
|
96.9% |
|
|
|
94.7% |
|
|
|
1,458 |
|
Orlando |
|
|
898 |
|
|
|
4.9% |
|
|
|
96.5% |
|
|
|
97.1% |
|
|
|
96.9% |
|
|
|
96.5% |
|
|
|
96.9% |
|
|
|
1,462 |
|
Charlotte |
|
|
1,748 |
|
|
|
9.3% |
|
|
|
95.4% |
|
|
|
96.9% |
|
|
|
94.8% |
|
|
|
95.9% |
|
|
|
96.1% |
|
|
|
1,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
18,780 |
|
|
|
100.0% |
|
|
|
96.0% |
|
|
|
95.9% |
|
|
|
95.5% |
|
|
|
95.6% |
|
|
|
95.5% |
|
|
$ |
1,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Average economic occupancy is defined as gross potential rent plus other rental fees 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 95.6% and 95.2% for the three months and 95.0% and 94.9% for the six months ended
June 30, 2015 and 2014, respectively. For the three months ended June 30, 2015 and 2014, net concessions were $228 and $384, respectively, and employee discounts were $155 and $165, respectively. For the six months ended June 30 30,
2015 and 2014, net concessions were $486 and $846, respectively, and employee discounts were $314 and $325, 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 |
SAME STORE RESULTS
(CONT)
(In thousands, except per unit data) - (Unaudited)
Sequential Same Store Operating Results - Comparison of Second Quarter of 2015 to First Quarter of 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
|
June 30, 2015 |
|
|
March 31, 2015 |
|
|
% Change |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Rental and other revenue |
|
$ |
81,860 |
|
|
$ |
80,139 |
|
|
|
2.1% |
|
Utility reimbursements |
|
|
2,541 |
|
|
|
2,559 |
|
|
|
(0.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
84,401 |
|
|
|
82,698 |
|
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses |
|
|
6,738 |
|
|
|
6,899 |
|
|
|
(2.3)% |
|
Utility expense |
|
|
3,961 |
|
|
|
4,164 |
|
|
|
(4.9)% |
|
Real estate taxes and fees |
|
|
13,599 |
|
|
|
13,784 |
|
|
|
(1.3)% |
|
Insurance expenses |
|
|
1,279 |
|
|
|
1,269 |
|
|
|
0.8% |
|
Building and grounds repairs and maintenance (1) |
|
|
5,402 |
|
|
|
3,989 |
|
|
|
35.4% |
|
Ground lease expense |
|
|
230 |
|
|
|
230 |
|
|
|
0.0% |
|
Other expenses |
|
|
2,211 |
|
|
|
2,032 |
|
|
|
8.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property operating and maintenance expenses (excluding depreciation and amortization) |
|
|
33,420 |
|
|
|
32,367 |
|
|
|
3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store net operating income (2) |
|
$ |
50,981 |
|
|
$ |
50,331 |
|
|
|
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average economic occupancy |
|
|
96.0% |
|
|
|
94.9% |
|
|
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly rental rate per unit |
|
$ |
1,448 |
|
|
$ |
1,439 |
|
|
|
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Building and grounds repairs and maintenance includes $599 and $134 for the three months ended June 30, 2015 and March 31, 2015,
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 Second
Quarter of 2015 to First Quarter of 2015
(Increase (decrease) between periods)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market |
|
Revenues |
|
|
(1) |
|
Expenses |
|
|
(1) |
|
NOI |
|
|
(1) |
|
Average Economic Occupancy |
|
Atlanta |
|
|
2.1% |
|
|
|
|
|
5.1% |
|
|
|
|
|
0.2% |
|
|
|
|
|
0.2% |
|
Dallas |
|
|
1.3% |
|
|
|
|
|
4.0% |
|
|
|
|
|
(0.8)% |
|
|
|
|
|
0.8% |
|
Houston |
|
|
(0.8)% |
|
|
|
|
|
(10.1)% |
|
|
|
|
|
6.6% |
|
|
|
|
|
(0.7)% |
|
Austin |
|
|
2.4% |
|
|
|
|
|
3.2% |
|
|
|
|
|
1.7% |
|
|
|
|
|
1.5% |
|
Washington, D.C. |
|
|
3.8% |
|
|
|
|
|
5.0% |
|
|
|
|
|
3.1% |
|
|
|
|
|
4.3% |
|
Tampa |
|
|
1.5% |
|
|
|
|
|
3.1% |
|
|
|
|
|
0.7% |
|
|
|
|
|
(0.2)% |
|
Orlando |
|
|
0.8% |
|
|
|
|
|
7.6% |
|
|
|
|
|
(3.0)% |
|
|
|
|
|
(0.7)% |
|
Charlotte |
|
|
2.5% |
|
|
|
|
|
(5.5)% |
|
|
|
|
|
6.7% |
|
|
|
|
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
2.1% |
|
|
|
|
|
3.3% |
|
|
|
|
|
1.3% |
|
|
|
|
|
1.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
DEBT SUMMARY
(In thousands) - (Unaudited)
Summary of Outstanding Debt
at June 30, 2015 - Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
Weighted Average |
|
Type of Indebtedness |
|
|
|
Balance |
|
|
of Total Debt |
|
|
Rate (1) |
|
Unsecured fixed rate senior notes |
|
|
|
$ |
400,000 |
|
|
|
44.9% |
|
|
|
3.9% |
|
Unsecured bank term loan |
|
|
|
|
300,000 |
|
|
|
33.7% |
|
|
|
2.7% |
|
Secured fixed rate notes |
|
|
|
|
191,004 |
|
|
|
21.4% |
|
|
|
6.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
891,004 |
|
|
|
100.0% |
|
|
|
3.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance |
|
|
Percentage of Total Debt |
|
|
Weighted Average Maturity (2) |
|
Total fixed rate debt |
|
|
|
$ |
891,004 |
|
|
|
100.0% |
|
|
|
4.8 |
|
Total variable rate debt - unhedged |
|
|
|
|
- |
|
|
|
0.0% |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt |
|
|
|
$ |
891,004 |
|
|
|
100.0% |
|
|
|
4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
Remainder of 2015 |
|
|
|
$ |
1,467 |
|
|
6.0% |
|
$ |
- |
|
|
$ |
- |
|
|
- |
2016 |
|
|
|
|
3,071 |
|
|
6.0% |
|
|
- |
|
|
|
- |
|
|
- |
2017 |
|
|
|
|
153,296 |
|
|
4.8% |
|
|
85,723 |
|
|
|
21,431 |
|
|
5.6% |
2018 |
|
|
|
|
3,502 |
|
|
6.0% |
|
|
41,000 |
|
|
|
10,250 |
|
|
5.7% |
2019 |
|
|
|
|
179,668 |
(3) |
|
6.0% |
|
|
51,000 |
|
|
|
17,850 |
|
|
3.5% |
Thereafter |
|
|
|
|
550,000 |
(4) |
|
3.0% |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
891,004 |
|
|
3.9% |
|
$ |
177,723 |
|
|
$ |
49,531 |
|
|
5.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Statistics
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
2015 |
|
2014 |
Interest coverage ratio (5)(6) |
|
6.0x |
|
4.3x |
Interest coverage ratio (including capitalized interest) (5)(6) |
|
5.4x |
|
4.1x |
|
|
|
Fixed charge coverage ratio (5)(7) |
|
5.5x |
|
4.0x |
Fixed charge coverage ratio (including capitalized interest) (5)(7) |
|
4.9x |
|
3.8x |
|
|
|
Total debt to annualized income available for debt service ratio (8) |
|
4.6x |
|
5.2x |
|
|
|
Total debt as a % of undepreciated real estate assets (adjusted for joint venture
partners share of debt) (9) |
|
29.4% |
|
31.8% |
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted
for joint venture partners share of debt) (9) |
|
30.7% |
|
33.1% |
1) |
Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates at June 30, 2015 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 June 30, 2015, 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. At June 30, 2015, the Companys lines of credit bear interest at LIBOR
plus 1.05% and mature in 2019 with a one year extension option. |
4) |
Includes an unsecured bank term loan that matures in January 2020. The blended effective interest rate, after considering the impact of interest
rate swap arrangements that hedge this debt is 2.69% through January 2018, the termination date of the interest rate swaps. Thereafter, the term loan bears interest at the stated rate of LIBOR plus 1.15%. |
5) |
Calculated for the six months ended June 30, 2015 and 2014. |
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 |
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 June 30, 2015 |
|
|
Consolidated Debt to Total Assets cannot exceed 60% |
|
27% |
Secured Debt to Total Assets cannot exceed 40% |
|
6% |
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1 |
|
4.4x |
Consolidated Income Available for Debt Service Charge must be at least 1.5/1 |
|
6.0x |
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 |
|
|
|
June 30, 2015 |
|
Consolidated debt, per balance sheet (A) |
|
$ |
891,004 |
|
|
|
|
|
|
Total assets, as defined (B) (Table A) |
|
$ |
3,279,892 |
|
|
|
|
|
|
Computed ratio (A÷B) |
|
|
27% |
|
|
|
|
|
|
Required ratio (cannot exceed) |
|
|
60% |
|
|
|
|
|
|
|
|
Ratio of Secured Debt to Total Assets |
|
|
|
|
|
|
Total secured debt (C) |
|
$ |
191,004 |
|
|
|
|
|
|
Computed ratio (C÷B) |
|
|
6% |
|
|
|
|
|
|
Required ratio (cannot exceed) |
|
|
40% |
|
|
|
|
|
|
|
|
Ratio of Total Unencumbered Assets to Unsecured Debt |
|
|
|
|
|
|
Consolidated debt, per balance sheet (A) |
|
$ |
891,004 |
|
Total secured debt (C) |
|
|
(191,004) |
|
|
|
|
|
|
Total unsecured debt (D) |
|
$ |
700,000 |
|
|
|
|
|
|
Total unencumbered assets, as defined (E) (Table A) |
|
$ |
3,065,808 |
|
|
|
|
|
|
Computed ratio (E÷D) |
|
|
4.4x |
|
|
|
|
|
|
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) |
|
$ |
206,366 |
|
|
|
|
|
|
Annual Debt Service Charge, as defined (G) (Table B) |
|
$ |
34,118 |
|
|
|
|
|
|
Computed ratio (F÷G) |
|
|
6.0x |
|
|
|
|
|
|
Required minimum ratio |
|
|
1.5x |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
12 | P a g e |
DEBT SUMMARY (CONT)
(In thousands) - (Unaudited)
Table A
Calculation of Total Assets and Total Unencumbered Assets for Public Debt Covenant Computations
|
|
|
|
|
|
|
As of |
|
|
|
June 30,
2015 |
|
Total real estate assets |
|
$ |
2,151,111 |
|
Add: |
|
|
|
|
Investments in and advances to unconsolidated real estate entities |
|
|
3,957 |
|
Accumulated depreciation |
|
|
979,505 |
|
Other tangible assets |
|
|
145,319 |
|
|
|
|
|
|
Total assets for public debt covenant computations |
|
|
3,279,892 |
|
Less: |
|
|
|
|
Encumbered real estate assets |
|
|
(210,127) |
|
Investments in and advances to unconsolidated real estate entities |
|
|
(3,957) |
|
|
|
|
|
|
Total unencumbered assets for public debt covenant computations |
|
$ |
3,065,808 |
|
|
|
|
|
|
Table B
Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Charge - Annualized (1)
|
|
|
|
|
|
|
Six months ended |
|
Consolidated income available for debt service |
|
June 30, 2015 |
|
Net income |
|
$ |
39,636 |
|
Add: |
|
|
|
|
Depreciation |
|
|
42,675 |
|
Depreciation and amortization (company share) - unconsolidated entities |
|
|
614 |
|
Amortization of deferred financing costs |
|
|
882 |
|
Interest expense |
|
|
15,846 |
|
Interest expense (company share) - unconsolidated entities |
|
|
1,213 |
|
Other non-cash (income) expense, net |
|
|
3,101 |
|
Income tax expense (benefit), net |
|
|
494 |
|
Net loss on extinguishment of indebtedness |
|
|
197 |
|
Less: |
|
|
|
|
Gains on sales of real estate assets, net |
|
|
(1,475) |
|
|
|
|
|
|
Consolidated income available for debt service |
|
$ |
103,183 |
|
|
|
|
|
|
Consolidated income available for debt service (annualized) |
|
$ |
206,366 |
|
|
|
|
|
|
|
|
Annual debt service charge |
|
|
|
|
Consolidated interest expense |
|
$ |
15,846 |
|
Interest expense (company share) - unconsolidated entities |
|
|
1,213 |
|
|
|
|
|
|
Debt service charge |
|
$ |
17,059 |
|
|
|
|
|
|
Debt service charge (annualized) |
|
$ |
34,118 |
|
|
|
|
|
|
1) |
The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2015 results for
comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants. |
|
|
|
Supplemental Financial Data |
|
13 | P a g e |
SUMMARY OF APARTMENT COMMUNITIES
UNDER DEVELOPMENT,
LAND HELD FOR FUTURE
INVESTMENT AND ACQUISITIONS/DISPOSITION ACTIVITY
(In millions, except
units, square footage and acreage) - (Unaudited)
Communities Under Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated |
|
|
|
|
|
|
|
|
Estimated |
|
|
Costs |
|
|
Quarter |
|
|
Estimated |
|
|
|
|
|
|
|
|
|
Number |
|
|
Average |
|
|
Estimated |
|
|
Estimated |
|
|
Total |
|
|
Incurred |
|
|
of First |
|
|
Quarter of |
|
|
|
|
|
|
|
|
|
of |
|
|
Unit Size |
|
|
Retail |
|
|
Total |
|
|
Cost Per |
|
|
as of |
|
|
Units |
|
|
Stabilized |
|
|
Percent |
|
Community |
|
Location |
|
|
Units |
|
|
Sq. Ft. (1) |
|
|
Sq. Ft. (1) |
|
|
Cost (2) |
|
|
Sq. Ft. (3) |
|
|
6/30/2015 |
|
|
Available |
|
|
Occup. (4) |
|
|
Leased (5) |
|
Under construction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The High Rise at Post Alexander |
|
|
Atlanta, GA |
|
|
|
340 |
|
|
|
830 |
|
|
|
- |
|
|
$ |
75.5 |
|
|
$ |
268 |
|
|
$ |
70.4 |
|
|
|
2Q 2015 |
|
|
|
4Q 2016 |
|
|
|
18.2 |
% |
Post Galleria |
|
|
Houston, TX |
|
|
|
388 |
|
|
|
867 |
|
|
|
- |
|
|
|
80.7 |
|
|
|
240 |
|
|
|
33.2 |
|
|
|
3Q 2016 |
|
|
|
4Q 2017 |
|
|
|
N/A |
|
Post Parkside at Wade, II |
|
|
Raleigh, NC |
|
|
|
406 |
|
|
|
910 |
|
|
|
- |
|
|
|
57.5 |
|
|
|
156 |
|
|
|
16.9 |
|
|
|
1Q 2016 |
|
|
|
2Q 2017 |
|
|
|
N/A |
|
Post South Lamar, II |
|
|
Austin, TX |
|
|
|
344 |
|
|
|
734 |
|
|
|
5,800 |
|
|
|
65.6 |
|
|
|
254 |
|
|
|
14.6 |
|
|
|
1Q 2017 |
|
|
|
2Q 2018 |
|
|
|
N/A |
|
Post Millennium Midtown |
|
|
Atlanta, GA |
|
|
|
356 |
|
|
|
864 |
|
|
|
- |
|
|
|
90.6 |
|
|
|
295 |
|
|
|
6.2 |
|
|
|
1Q 2017 |
|
|
|
2Q 2018 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
1,834 |
|
|
|
|
|
|
|
5,800 |
|
|
$ |
369.9 |
|
|
|
|
|
|
$ |
141.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 July 31, 2015. |
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Value |
|
|
Estimated |
|
|
|
|
|
at June 30, 2015 |
|
|
Usable |
|
Project |
|
Metro Area |
|
(in thousands) |
|
|
Acreage |
|
Centennial Park |
|
Atlanta, GA |
|
$ |
18,858 |
|
|
|
5.6 |
|
Frisco Bridges II |
|
Dallas, TX |
|
|
5,480 |
|
|
|
5.4 |
|
Wade |
|
Raleigh, NC |
|
|
2,670 |
|
|
|
6.5 |
|
Other land parcels |
|
Atlanta, GA |
|
|
2,787 |
|
|
|
10.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Land Held for Future Investment |
|
|
|
$ |
29,795 |
|
|
|
27.7 |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition/Disposition Activity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter |
|
|
|
Est. Avg. |
|
|
|
Year |
|
|
|
|
|
Est. Total |
|
|
|
|
|
|
|
Acquired / |
|
|
|
Unit Size |
|
Retail |
|
Completed/ |
|
|
Gross Price |
|
|
Price Per |
|
|
Cap |
Property Name |
|
Location |
|
Disposed |
|
Units |
|
Sq. Ft. (1) |
|
Sq. Ft. |
|
Renovated |
|
|
(thousands) (2) |
|
|
Sq. Ft. (3) |
|
|
Rate |
Acquisitions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
None |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dispositions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Rice Lofts |
|
Houston, TX |
|
Q2 2014 |
|
308 |
|
904 |
|
44,734 |
|
|
1913 / 1998 |
|
|
$ |
71,750 |
|
|
$ |
222 |
|
|
5.3%(4) |
Post Luminaria TM (5) |
|
New York, NY |
|
Q3 2014 |
|
138 |
|
721 |
|
9,386 |
|
|
2002 |
|
|
|
111,500 |
|
|
$ |
1,024 |
|
|
3.1%(4) |
Post Toscana TM |
|
New York, NY |
|
Q3 2014 |
|
199 |
|
817 |
|
11,700 |
|
|
2003 |
|
|
|
158,500 |
|
|
$ |
909 |
|
|
2.7%(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
341,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 trailing twelve-month net operating income after adjustments for management fee (3%) and capital reserves ($300/unit).
|
5) |
The Company owned 68% of Post Luminaria. |
|
|
|
Supplemental Financial Data |
|
14 | P a g e |
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 and six months ended June 30, 2015 and 2014 is provided below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
New community development and acquisition activity (1) |
|
$ |
23,739 |
|
|
$ |
18,734 |
|
|
$ |
51,907 |
|
|
$ |
33,647 |
|
Periodically recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community rehabilitation and other revenue generating improvements (2) |
|
|
2,314 |
|
|
|
2,052 |
|
|
|
3,946 |
|
|
|
3,338 |
|
Other community additions and improvements (3) |
|
|
1,824 |
|
|
|
2,087 |
|
|
|
2,522 |
|
|
|
4,608 |
|
Annually recurring capital expenditures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carpet replacements and other community additions and improvements (4) |
|
|
3,871 |
|
|
|
3,795 |
|
|
|
6,139 |
|
|
|
6,216 |
|
Corporate additions and improvements |
|
|
336 |
|
|
|
1,559 |
|
|
|
542 |
|
|
|
1,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
32,084 |
|
|
$ |
28,227 |
|
|
$ |
65,056 |
|
|
$ |
49,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized interest |
|
$ |
1,237 |
|
|
$ |
755 |
|
|
$ |
2,219 |
|
|
$ |
1,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized development and associated costs (5) |
|
$ |
1,213 |
|
|
$ |
512 |
|
|
$ |
2,348 |
|
|
$ |
1,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 |
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 |
|
|
|
|
Property |
|
|
|
Ownership |
Joint Venture Property |
|
Location |
|
Type |
|
# of Units |
|
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 |
|
|
|
June 30, 2015 |
|
|
|
Gross |
|
|
|
|
|
|
|
|
Companys |
|
|
|
Investment in |
|
|
Mortgage |
|
|
Entity |
|
|
Equity |
|
Joint Venture Property |
|
Real Estate (6) |
|
|
Notes Payable |
|
|
Equity |
|
|
Investment |
|
Post Collier Hills® (1) |
|
$ |
57,063 |
|
|
$ |
39,565 |
(2) |
|
$ |
8,074 |
|
|
$ |
(4,686) |
(1) |
Post Crest® (1) |
|
|
65,363 |
|
|
|
46,158 |
(2) |
|
|
7,835 |
|
|
|
(7,338) |
(1) |
Post Lindbergh® (1) |
|
|
63,679 |
|
|
|
41,000 |
(3) |
|
|
12,862 |
|
|
|
(4,413) |
(1) |
Post Massachusetts Avenue |
|
|
73,692 |
|
|
|
51,000 |
(4) |
|
|
3,831 |
|
|
|
3,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
259,797 |
|
|
$ |
177,723 |
|
|
$ |
32,602 |
|
|
$ |
(12,480) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, 2015 |
|
|
June 30, 2015 |
|
|
|
|
|
|
Companys |
|
|
Mgmt. |
|
|
|
|
|
Companys |
|
|
Mgmt. |
|
|
|
Entity |
|
|
Equity in |
|
|
Fees & |
|
|
Entity |
|
|
Equity in |
|
|
Fees & |
|
Joint Venture Property |
|
NOI |
|
|
Income (Loss) |
|
|
Other |
|
|
NOI |
|
|
Income (Loss) |
|
|
Other |
|
Post Collier Hills® (1) |
|
$ |
739 |
|
|
$ |
13 |
|
|
|
|
|
|
$ |
1,484 |
|
|
$ |
30 |
|
|
|
|
|
Post Crest® (1) |
|
|
910 |
|
|
|
31 |
|
|
|
|
|
|
|
1,806 |
|
|
|
60 |
|
|
|
|
|
Post Lindbergh® (1) |
|
|
851 |
|
|
|
28 |
|
|
|
|
|
|
|
1,638 |
|
|
|
42 |
|
|
|
|
|
Post Massachusetts Avenue |
|
|
1,845 |
|
|
|
496 |
|
|
|
|
|
|
|
3,549 |
|
|
|
833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
4,345 |
|
|
$ |
568 |
|
|
$ |
225 |
(5) |
|
$ |
8,477 |
|
|
$ |
965 |
|
|
$ |
447 |
(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 |
NET ASSET VALUE SUPPLEMENTAL
INFORMATION (1)
(In thousands, except unit data, commercial square feet and stock price) - (Unaudited)
Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
As |
|
Income Statement Data |
|
June 30, 2015 |
|
|
Adjustments |
|
|
Adjusted (3) |
|
Rental revenues |
|
$ |
89,368 |
|
|
$ |
607 |
(2) |
|
$ |
89,975 |
|
Other property revenues |
|
|
5,789 |
|
|
|
85 |
(2) |
|
|
5,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues (A) |
|
|
95,157 |
|
|
|
692 |
|
|
|
95,849 |
|
Property operating & maintenance expenses |
|
|
|
|
|
|
|
|
|
|
|
|
(excluding depreciation and amortization) (B) |
|
|
41,512 |
|
|
|
(4,008) |
(2) |
|
|
37,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property net operating income (Table 1) (A-B) |
|
$ |
53,645 |
|
|
$ |
4,700 |
|
|
$ |
58,345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumed property management fee |
|
|
|
|
|
|
|
|
|
|
|
|
(calculated at 3% of revenues) (A x 3%) |
|
|
|
|
|
|
|
|
|
|
(2,875) |
|
Assumed property capital expenditure reserve |
|
|
|
|
|
|
|
|
|
|
|
|
($300 per unit per year based on 20,454 units) |
|
|
|
|
|
|
|
|
|
|
(1,534) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted property net operating income |
|
|
|
|
|
|
|
|
|
$ |
53,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized property net operating income (C) |
|
|
|
|
|
|
|
|
|
$ |
215,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartment units represented (D) |
|
|
23,365 |
|
|
|
(2,911) |
(2) |
|
|
20,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Asset Data |
|
As of June 30, 2015 |
|
|
Adjustments |
|
|
As Adjusted |
|
Cash & equivalents |
|
$ |
119,057 |
|
|
$ |
- |
|
|
$ |
119,057 |
|
Real estate assets under construction, at cost (4) |
|
|
109,292 |
|
|
|
31,976 |
(4) |
|
|
141,268 |
|
Land held for future investment |
|
|
29,795 |
|
|
|
- |
|
|
|
29,795 |
|
Investments in and advances to unconsolidated real estate entities (5) |
|
|
3,957 |
|
|
|
(3,957) |
(5) |
|
|
- |
|
Restricted cash and other assets |
|
|
31,983 |
|
|
|
- |
|
|
|
31,983 |
|
Cash & other assets of unconsolidated apartment entities (6) |
|
|
7,262 |
|
|
|
(5,233) |
(6) |
|
|
2,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (E) |
|
$ |
301,346 |
|
|
$ |
22,786 |
|
|
$ |
324,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Liability Data |
|
|
|
|
|
|
|
|
|
Indebtedness |
|
$ |
891,004 |
|
|
$ |
- |
|
|
$ |
891,004 |
|
Investments in unconsolidated real estate entities (5) |
|
|
16,437 |
|
|
|
(16,437) |
(5) |
|
|
- |
|
Other liabilities (including noncontrolling interests) (7) |
|
|
119,800 |
|
|
|
(8,992) |
(7) |
|
|
110,808 |
|
Total liabilities of unconsolidated apartment entities (8) |
|
|
182,444 |
|
|
|
(131,612) |
(8) |
|
|
50,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (F) |
|
$ |
1,209,685 |
|
|
$ |
(157,041) |
|
|
$ |
1,052,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2015 |
|
|
|
# Shares/Units |
|
|
Stock Price |
|
|
Implied Value |
|
Liquidation value of preferred shares (G) |
|
|
|
|
|
|
|
|
|
$ |
43,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
|
54,592 |
|
|
|
|
|
|
|
|
|
Common units outstanding |
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (H) |
|
|
54,713 |
|
|
$ |
54.37 |
|
|
$ |
2,974,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied market value of Company gross real estate assets (I) = (F+G+H-E) |
|
|
|
|
|
|
|
|
|
$ |
3,746,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Implied Portfolio Capitalization Rate (C÷I) |
|
|
|
|
|
|
|
|
|
|
5.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 second quarter ended June 30, 2015, for properties stabilized as of April 1, 2015,
so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized as of April 1, 2015, 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 |
2) |
The following table summarizes the adjustments made to the components of property net operating income for the three months ended June 30,
2015, to adjust property net operating income to the Companys share for fully stabilized communities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Revenue |
|
|
Other Revenue |
|
|
Expenses |
|
|
Units |
|
Communities in lease-up / development |
|
$ |
(9) |
|
|
$ |
(14) |
|
|
$ |
(197) |
|
|
|
(1,834) |
|
Company share of unconsolidated entities |
|
|
1,974 |
|
|
|
150 |
|
|
|
768 |
|
|
|
(1,077) |
|
Corporate property management expenses |
|
|
- |
|
|
|
- |
|
|
|
(3,198) |
|
|
|
- |
|
Corporate apartments and other |
|
|
(1,358) |
|
|
|
(51) |
|
|
|
(1,381) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
607 |
|
|
$ |
85 |
|
|
$ |
(4,008) |
|
|
|
(2,911 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2015: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
$ |
23,569 |
|
|
$ |
9,334 |
|
|
$ |
14,235 |
|
|
|
24.3 |
% |
|
|
5,365 |
|
Dallas |
|
|
18,555 |
|
|
|
8,389 |
|
|
|
10,166 |
|
|
|
17.4 |
% |
|
|
4,725 |
|
Houston |
|
|
3,929 |
|
|
|
1,671 |
|
|
|
2,258 |
|
|
|
3.9 |
% |
|
|
895 |
|
Austin |
|
|
4,395 |
|
|
|
2,133 |
|
|
|
2,262 |
|
|
|
3.9 |
% |
|
|
935 |
|
Washington, D.C. |
|
|
16,485 |
|
|
|
5,936 |
|
|
|
10,549 |
|
|
|
18.1 |
% |
|
|
2,739 |
|
Tampa |
|
|
10,824 |
|
|
|
3,781 |
|
|
|
7,043 |
|
|
|
12.1 |
% |
|
|
2,342 |
|
Orlando |
|
|
5,943 |
|
|
|
2,250 |
|
|
|
3,693 |
|
|
|
6.3 |
% |
|
|
1,308 |
|
Charlotte |
|
|
6,929 |
|
|
|
2,188 |
|
|
|
4,741 |
|
|
|
8.1 |
% |
|
|
1,748 |
|
Raleigh |
|
|
1,228 |
|
|
|
492 |
|
|
|
736 |
|
|
|
1.3 |
% |
|
|
397 |
|
Commercial |
|
|
3,992 |
|
|
|
1,330 |
|
|
|
2,662 |
|
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
95,849 |
|
|
$ |
37,504 |
|
|
$ |
58,345 |
|
|
|
100.0 |
% |
|
|
20,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approximate commercial Sq. Ft. |
|
|
|
|
|
|
|
689,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4) |
The As Adjusted amount represents the CIP balance, adjusted for costs of completed apartment units, as follows: |
|
|
|
|
|
The High Rise at Post Alexander |
|
$ |
70,431 |
|
Post Parkside at Wade - Phase II |
|
|
16,909 |
|
Post Galleria |
|
|
33,191 |
|
Post South Lamar - Phase II |
|
|
14,581 |
|
Post Millennium Midtown |
|
|
6,156 |
|
|
|
|
|
|
|
|
$ |
141,268 |
|
|
|
|
|
|
5) |
The adjustments reflect reductions for investments in unconsolidated entities, as the net operating income of 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 June 30, 2015 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 June 30, 2015 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
$8,992. |
8) |
The As of June 30, 2015 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 |
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 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 (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 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 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 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 |
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.
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 (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 plus other rental fees 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 |
RECONCILIATIONS OF SUPPLEMENTAL
NON-GAAP FINANCIAL MEASURES
Table 1 - Reconciliation of Same Store Net Operating
Income (NOI) to GAAP Net Income
(In thousands) - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
Total same store NOI |
|
$ |
50,981 |
|
|
$ |
49,547 |
|
|
$ |
50,331 |
|
|
$ |
101,312 |
|
|
$ |
99,293 |
|
Property NOI from other operating segments |
|
|
2,664 |
|
|
|
3,461 |
|
|
|
2,664 |
|
|
|
5,328 |
|
|
|
6,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI |
|
|
53,645 |
|
|
|
53,008 |
|
|
|
52,995 |
|
|
|
106,640 |
|
|
|
105,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
43 |
|
|
|
4 |
|
|
|
81 |
|
|
|
124 |
|
|
|
16 |
|
Other revenues |
|
|
274 |
|
|
|
223 |
|
|
|
313 |
|
|
|
587 |
|
|
|
442 |
|
Depreciation |
|
|
(21,418) |
|
|
|
(20,829) |
|
|
|
(21,257) |
|
|
|
(42,675) |
|
|
|
(42,596) |
|
Interest expense |
|
|
(7,753) |
|
|
|
(10,433) |
|
|
|
(8,093) |
|
|
|
(15,846) |
|
|
|
(21,677) |
|
Amortization of deferred financing costs |
|
|
(433) |
|
|
|
(620) |
|
|
|
(449) |
|
|
|
(882) |
|
|
|
(1,265) |
|
General and administrative |
|
|
(4,353) |
|
|
|
(3,966) |
|
|
|
(5,014) |
|
|
|
(9,367) |
|
|
|
(8,094) |
|
Investment and development |
|
|
(275) |
|
|
|
(794) |
|
|
|
(235) |
|
|
|
(510) |
|
|
|
(1,605) |
|
Other investment costs |
|
|
(154) |
|
|
|
(210) |
|
|
|
(134) |
|
|
|
(288) |
|
|
|
(483) |
|
Other expenses |
|
|
- |
|
|
|
(502) |
|
|
|
- |
|
|
|
- |
|
|
|
(1,409) |
|
Equity in income of unconsolidated real estate entities, net |
|
|
568 |
|
|
|
501 |
|
|
|
397 |
|
|
|
965 |
|
|
|
986 |
|
Gains on sales of real estate assets, net |
|
|
(298) |
|
|
|
36,092 |
|
|
|
1,773 |
|
|
|
1,475 |
|
|
|
36,902 |
|
Other income (expense), net |
|
|
(195) |
|
|
|
(196) |
|
|
|
(195) |
|
|
|
(390) |
|
|
|
(391) |
|
Net loss on extinguishment of indebtedness |
|
|
- |
|
|
|
(4,287) |
|
|
|
(197) |
|
|
|
(197) |
|
|
|
(4,287) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
19,651 |
|
|
$ |
47,991 |
|
|
$ |
19,985 |
|
|
$ |
39,636 |
|
|
$ |
62,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
21 | P a g e |
Table 2 - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by Market
(In thousands, except average rental rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Q2 15 |
|
|
Q2 15 |
|
|
Q2 15 |
|
|
|
June 30, |
|
|
June 30, |
|
|
March 31, |
|
|
vs. Q2 14 |
|
|
vs. Q1 15 |
|
|
% Same |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
% Change |
|
|
% Change |
|
|
Store NOI |
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
22,411 |
|
|
$ |
21,305 |
|
|
$ |
21,942 |
|
|
|
5.2% |
|
|
|
2.1% |
|
|
|
|
|
Dallas |
|
|
18,555 |
|
|
|
17,970 |
|
|
|
18,314 |
|
|
|
3.3% |
|
|
|
1.3% |
|
|
|
|
|
Houston |
|
|
2,856 |
|
|
|
2,925 |
|
|
|
2,880 |
|
|
|
(2.4)% |
|
|
|
(0.8)% |
|
|
|
|
|
Austin |
|
|
4,395 |
|
|
|
4,387 |
|
|
|
4,290 |
|
|
|
0.2% |
|
|
|
2.4% |
|
|
|
|
|
Washington, D.C. |
|
|
15,520 |
|
|
|
15,385 |
|
|
|
14,955 |
|
|
|
0.9% |
|
|
|
3.8% |
|
|
|
|
|
Tampa |
|
|
9,643 |
|
|
|
9,350 |
|
|
|
9,501 |
|
|
|
3.1% |
|
|
|
1.5% |
|
|
|
|
|
Orlando |
|
|
4,092 |
|
|
|
4,007 |
|
|
|
4,059 |
|
|
|
2.1% |
|
|
|
0.8% |
|
|
|
|
|
Charlotte |
|
|
6,929 |
|
|
|
6,780 |
|
|
|
6,757 |
|
|
|
2.2% |
|
|
|
2.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
84,401 |
|
|
|
82,109 |
|
|
|
82,698 |
|
|
|
2.8% |
|
|
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
8,971 |
|
|
|
8,766 |
|
|
|
8,533 |
|
|
|
2.3% |
|
|
|
5.1% |
|
|
|
|
|
Dallas |
|
|
8,389 |
|
|
|
7,882 |
|
|
|
8,067 |
|
|
|
6.4% |
|
|
|
4.0% |
|
|
|
|
|
Houston |
|
|
1,148 |
|
|
|
1,257 |
|
|
|
1,277 |
|
|
|
(8.7)% |
|
|
|
(10.1)% |
|
|
|
|
|
Austin |
|
|
2,133 |
|
|
|
1,949 |
|
|
|
2,066 |
|
|
|
9.4% |
|
|
|
3.2% |
|
|
|
|
|
Washington, D.C. |
|
|
5,645 |
|
|
|
5,376 |
|
|
|
5,376 |
|
|
|
5.0% |
|
|
|
5.0% |
|
|
|
|
|
Tampa |
|
|
3,369 |
|
|
|
3,749 |
|
|
|
3,268 |
|
|
|
(10.1)% |
|
|
|
3.1% |
|
|
|
|
|
Orlando |
|
|
1,577 |
|
|
|
1,506 |
|
|
|
1,465 |
|
|
|
4.7% |
|
|
|
7.6% |
|
|
|
|
|
Charlotte |
|
|
2,188 |
|
|
|
2,077 |
|
|
|
2,315 |
|
|
|
5.3% |
|
|
|
(5.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
33,420 |
|
|
|
32,562 |
|
|
|
32,367 |
|
|
|
2.6% |
|
|
|
3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
13,440 |
|
|
|
12,539 |
|
|
|
13,409 |
|
|
|
7.2% |
|
|
|
0.2% |
|
|
|
26.4% |
|
Dallas |
|
|
10,166 |
|
|
|
10,088 |
|
|
|
10,247 |
|
|
|
0.8% |
|
|
|
(0.8)% |
|
|
|
19.9% |
|
Houston |
|
|
1,708 |
|
|
|
1,668 |
|
|
|
1,603 |
|
|
|
2.4% |
|
|
|
6.6% |
|
|
|
3.4% |
|
Austin |
|
|
2,262 |
|
|
|
2,438 |
|
|
|
2,224 |
|
|
|
(7.2)% |
|
|
|
1.7% |
|
|
|
4.4% |
|
Washington, D.C. |
|
|
9,875 |
|
|
|
10,009 |
|
|
|
9,579 |
|
|
|
(1.3)% |
|
|
|
3.1% |
|
|
|
19.4% |
|
Tampa |
|
|
6,274 |
|
|
|
5,601 |
|
|
|
6,233 |
|
|
|
12.0% |
|
|
|
0.7% |
|
|
|
12.3% |
|
Orlando |
|
|
2,515 |
|
|
|
2,501 |
|
|
|
2,594 |
|
|
|
0.6% |
|
|
|
(3.0)% |
|
|
|
4.9% |
|
Charlotte |
|
|
4,741 |
|
|
|
4,703 |
|
|
|
4,442 |
|
|
|
0.8% |
|
|
|
6.7% |
|
|
|
9.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
50,981 |
|
|
$ |
49,547 |
|
|
$ |
50,331 |
|
|
|
2.9% |
|
|
|
1.3% |
|
|
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,391 |
|
|
$ |
1,323 |
|
|
$ |
1,374 |
|
|
|
5.1% |
|
|
|
1.2% |
|
|
|
|
|
Dallas |
|
|
1,275 |
|
|
|
1,240 |
|
|
|
1,263 |
|
|
|
2.8% |
|
|
|
1.0% |
|
|
|
|
|
Houston |
|
|
1,505 |
|
|
|
1,470 |
|
|
|
1,515 |
|
|
|
2.4% |
|
|
|
(0.6)% |
|
|
|
|
|
Austin |
|
|
1,571 |
|
|
|
1,581 |
|
|
|
1,569 |
|
|
|
(0.6)% |
|
|
|
0.1% |
|
|
|
|
|
Washington, D.C. |
|
|
1,893 |
|
|
|
1,943 |
|
|
|
1,913 |
|
|
|
(2.6)% |
|
|
|
(1.1)% |
|
|
|
|
|
Tampa |
|
|
1,458 |
|
|
|
1,418 |
|
|
|
1,439 |
|
|
|
2.8% |
|
|
|
1.3% |
|
|
|
|
|
Orlando |
|
|
1,462 |
|
|
|
1,432 |
|
|
|
1,451 |
|
|
|
2.1% |
|
|
|
0.7% |
|
|
|
|
|
Charlotte |
|
|
1,297 |
|
|
|
1,255 |
|
|
|
1,287 |
|
|
|
3.3% |
|
|
|
0.7% |
|
|
|
|
|
Total average rental rate per unit |
|
|
1,448 |
|
|
|
1,417 |
|
|
|
1,439 |
|
|
|
2.2% |
|
|
|
0.6% |
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
22 | P a g e |
Table 2 (cont) - Same Store Net Operating Income (NOI) and Average Rental Rate per Unit by
Market
(In thousands, except average rental rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
% Change |
|
Rental and other revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
44,353 |
|
|
$ |
42,151 |
|
|
|
5.2% |
|
Dallas |
|
|
36,870 |
|
|
|
35,776 |
|
|
|
3.1% |
|
Houston |
|
|
5,735 |
|
|
|
5,798 |
|
|
|
(1.1)% |
|
Austin |
|
|
8,685 |
|
|
|
8,745 |
|
|
|
(0.7)% |
|
Washington, D.C. |
|
|
30,475 |
|
|
|
30,526 |
|
|
|
(0.2)% |
|
Tampa |
|
|
19,144 |
|
|
|
18,601 |
|
|
|
2.9% |
|
Orlando |
|
|
8,151 |
|
|
|
7,926 |
|
|
|
2.8% |
|
Charlotte |
|
|
13,685 |
|
|
|
13,376 |
|
|
|
2.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total rental and other revenues |
|
|
167,098 |
|
|
|
162,899 |
|
|
|
2.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property operating and maintenance expenses (exclusive of depreciation and amortization) |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
17,504 |
|
|
|
16,857 |
|
|
|
3.8% |
|
Dallas |
|
|
16,456 |
|
|
|
15,547 |
|
|
|
5.8% |
|
Houston |
|
|
2,425 |
|
|
|
2,394 |
|
|
|
1.3% |
|
Austin |
|
|
4,199 |
|
|
|
3,856 |
|
|
|
8.9% |
|
Washington, D.C. |
|
|
11,021 |
|
|
|
10,669 |
|
|
|
3.3% |
|
Tampa |
|
|
6,638 |
|
|
|
7,164 |
|
|
|
(7.3)% |
|
Orlando |
|
|
3,041 |
|
|
|
2,926 |
|
|
|
3.9% |
|
Charlotte |
|
|
4,502 |
|
|
|
4,193 |
|
|
|
7.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
65,786 |
|
|
|
63,606 |
|
|
|
3.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
|
26,849 |
|
|
|
25,294 |
|
|
|
6.1% |
|
Dallas |
|
|
20,414 |
|
|
|
20,229 |
|
|
|
0.9% |
|
Houston |
|
|
3,310 |
|
|
|
3,404 |
|
|
|
(2.8)% |
|
Austin |
|
|
4,486 |
|
|
|
4,889 |
|
|
|
(8.2)% |
|
Washington, D.C. |
|
|
19,454 |
|
|
|
19,857 |
|
|
|
(2.0)% |
|
Tampa |
|
|
12,506 |
|
|
|
11,437 |
|
|
|
9.3% |
|
Orlando |
|
|
5,110 |
|
|
|
5,000 |
|
|
|
2.2% |
|
Charlotte |
|
|
9,183 |
|
|
|
9,183 |
|
|
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total same store NOI |
|
$ |
101,312 |
|
|
$ |
99,293 |
|
|
|
2.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental rate per unit |
|
|
|
|
|
|
|
|
|
|
|
|
Atlanta |
|
$ |
1,382 |
|
|
$ |
1,312 |
|
|
|
5.3% |
|
Dallas |
|
|
1,269 |
|
|
|
1,236 |
|
|
|
2.7% |
|
Houston |
|
|
1,510 |
|
|
|
1,457 |
|
|
|
3.6% |
|
Austin |
|
|
1,570 |
|
|
|
1,576 |
|
|
|
(0.4)% |
|
Washington, D.C. |
|
|
1,903 |
|
|
|
1,941 |
|
|
|
(2.0)% |
|
Tampa |
|
|
1,448 |
|
|
|
1,410 |
|
|
|
2.7% |
|
Orlando |
|
|
1,457 |
|
|
|
1,428 |
|
|
|
2.0% |
|
Charlotte |
|
|
1,292 |
|
|
|
1,250 |
|
|
|
3.4% |
|
Total average rental rate per unit |
|
|
1,444 |
|
|
|
1,411 |
|
|
|
2.3% |
|
|
|
|
Supplemental Financial Data |
|
23 | P a g e |
Table 3 - Operating Community Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market /
Submarket /
Community |
|
Yr. Completed / Yr.
of Substantial Renovations |
|
No. of Units
|
|
|
Avg. Unit Size (Sq. Ft.) |
|
|
Q2 2015 Avg. Monthly Rent |
|
|
Q2 2015 Average Economic Occ. |
|
|
|
|
|
Per Unit |
|
|
Per Sq. Ft. |
|
|
Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buckhead / Brookhaven |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Alexander |
|
2008 |
|
|
307 |
|
|
|
1,015 |
|
|
$ |
1,818 |
|
|
$ |
1.79 |
|
|
|
98.5% |
|
The High Rise at Post Alexander (3) |
|
2015 |
|
|
340 |
|
|
|
830 |
|
|
|
2,017 |
|
|
|
2.43 |
|
|
|
0.6% |
|
Post Brookhaven® |
|
1990-1992 |
|
|
735 |
|
|
|
933 |
|
|
|
1,251 |
|
|
|
1.34 |
|
|
|
97.2% |
|
Post Chastain® |
|
1990, 2008 |
|
|
558 |
|
|
|
866 |
|
|
|
1,345 |
|
|
|
1.55 |
|
|
|
96.9% |
|
Post Collier Hills® (1)(2) |
|
1997 |
|
|
396 |
|
|
|
948 |
|
|
|
1,239 |
|
|
|
1.31 |
|
|
|
93.3% |
|
Post Gardens® |
|
1998 |
|
|
397 |
|
|
|
1,039 |
|
|
|
1,360 |
|
|
|
1.31 |
|
|
|
97.5% |
|
Post Glen® (2) |
|
1997 |
|
|
314 |
|
|
|
1,076 |
|
|
|
1,413 |
|
|
|
1.31 |
|
|
|
97.2% |
|
Post Lindbergh® (1)(2) |
|
1998 |
|
|
396 |
|
|
|
909 |
|
|
|
1,285 |
|
|
|
1.41 |
|
|
|
94.7% |
|
Post Peachtree Hills® |
|
1992-1994, 2009 |
|
|
300 |
|
|
|
978 |
|
|
|
1,477 |
|
|
|
1.51 |
|
|
|
96.1% |
|
Post StratfordTM |
|
2000 |
|
|
250 |
|
|
|
1,000 |
|
|
|
1,433 |
|
|
|
1.43 |
|
|
|
95.8% |
|
|
|
|
|
|
|
|
Dunwoody |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crossing® (2) |
|
1995 |
|
|
354 |
|
|
|
1,036 |
|
|
|
1,271 |
|
|
|
1.23 |
|
|
|
98.6% |
|
|
|
|
|
|
|
|
Emory Area |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post BriarcliffTM (2) |
|
1999 |
|
|
688 |
|
|
|
1,006 |
|
|
|
1,345 |
|
|
|
1.34 |
|
|
|
93.1% |
|
|
|
|
|
|
|
|
Midtown |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post ParksideTM |
|
2000 |
|
|
188 |
|
|
|
886 |
|
|
|
1,636 |
|
|
|
1.85 |
|
|
|
95.8% |
|
|
|
|
|
|
|
|
Northwest Atlanta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Crest® (1)(2) |
|
1996 |
|
|
410 |
|
|
|
1,033 |
|
|
|
1,181 |
|
|
|
1.14 |
|
|
|
98.5% |
|
Post Riverside® |
|
1998 |
|
|
522 |
|
|
|
1,059 |
|
|
|
1,624 |
|
|
|
1.53 |
|
|
|
97.4% |
|
Post SpringTM |
|
2000 |
|
|
452 |
|
|
|
977 |
|
|
|
1,105 |
|
|
|
1.13 |
|
|
|
97.1% |
|
|
|
|
|
|
|
|
Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Addison CircleTM |
|
1998-2000 |
|
|
1,334 |
|
|
|
846 |
|
|
|
1,133 |
|
|
|
1.34 |
|
|
|
95.9% |
|
Post EastsideTM |
|
2008 |
|
|
435 |
|
|
|
912 |
|
|
|
1,256 |
|
|
|
1.38 |
|
|
|
94.8% |
|
Post Legacy |
|
2000 |
|
|
384 |
|
|
|
810 |
|
|
|
1,139 |
|
|
|
1.41 |
|
|
|
96.5% |
|
Post Sierra at Frisco Bridges |
|
2009 |
|
|
268 |
|
|
|
896 |
|
|
|
1,183 |
|
|
|
1.32 |
|
|
|
96.0% |
|
|
|
|
|
|
|
|
Uptown Dallas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post AbbeyTM |
|
1996 |
|
|
34 |
|
|
|
1,223 |
|
|
|
2,084 |
|
|
|
1.70 |
|
|
|
96.8% |
|
Post Coles CornerTM |
|
1998 |
|
|
186 |
|
|
|
800 |
|
|
|
1,241 |
|
|
|
1.55 |
|
|
|
100.0% |
|
Post GalleryTM |
|
1999 |
|
|
34 |
|
|
|
2,307 |
|
|
|
2,980 |
|
|
|
1.29 |
|
|
|
91.5% |
|
Post HeightsTM |
|
1998-1999, 2009 |
|
|
368 |
|
|
|
845 |
|
|
|
1,385 |
|
|
|
1.64 |
|
|
|
96.2% |
|
Post Katy Trail |
|
2010 |
|
|
227 |
|
|
|
898 |
|
|
|
1,664 |
|
|
|
1.85 |
|
|
|
96.9% |
|
Post MeridianTM |
|
1991 |
|
|
133 |
|
|
|
780 |
|
|
|
1,451 |
|
|
|
1.86 |
|
|
|
93.3% |
|
Post SquareTM |
|
1996 |
|
|
216 |
|
|
|
856 |
|
|
|
1,408 |
|
|
|
1.64 |
|
|
|
94.3% |
|
Post Uptown VillageTM |
|
1995-2000 |
|
|
496 |
|
|
|
736 |
|
|
|
1,180 |
|
|
|
1.60 |
|
|
|
98.9% |
|
Post VineyardTM |
|
1996 |
|
|
116 |
|
|
|
733 |
|
|
|
1,203 |
|
|
|
1.64 |
|
|
|
96.7% |
|
Post VintageTM |
|
1993 |
|
|
160 |
|
|
|
750 |
|
|
|
1,275 |
|
|
|
1.70 |
|
|
|
96.8% |
|
Post WorthingtonTM |
|
1993, 2008 |
|
|
334 |
|
|
|
820 |
|
|
|
1,490 |
|
|
|
1.82 |
|
|
|
95.0% |
|
|
|
|
|
|
|
|
Houston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post 510 |
|
2014 |
|
|
242 |
|
|
|
857 |
|
|
|
1,607 |
|
|
|
1.88 |
|
|
|
95.4% |
|
Post Midtown Square® |
|
1999-2000, 2013 |
|
|
653 |
|
|
|
783 |
|
|
|
1,505 |
|
|
|
1.92 |
|
|
|
91.6% |
|
|
|
|
Supplemental Financial Data |
|
24 | P a g e |
Table 3 (cont) - Operating Community Table
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market /
Submarket /
Community |
|
Yr. Completed / Yr.
of Substantial Renovations |
|
|
|
|
Avg. Unit Size (Sq. Ft.) |
|
|
Q2 2015 Avg. Monthly Rent |
|
|
Q2 2015 Average Economic Occ. |
|
|
|
No. of Units |
|
|
|
Per Unit |
|
|
Per Sq. Ft. |
|
|
Austin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Barton Creek |
|
1998 |
|
|
160 |
|
|
|
1,162 |
|
|
$ |
1,814 |
|
|
$ |
1.56 |
|
|
|
96.5% |
|
Post Park Mesa |
|
1992 |
|
|
148 |
|
|
|
1,091 |
|
|
|
1,548 |
|
|
|
1.42 |
|
|
|
96.6% |
|
Post South Lamar |
|
2012 |
|
|
298 |
|
|
|
853 |
|
|
|
1,581 |
|
|
|
1.85 |
|
|
|
90.2% |
|
Post West Austin |
|
2009 |
|
|
329 |
|
|
|
889 |
|
|
|
1,453 |
|
|
|
1.63 |
|
|
|
94.9% |
|
|
|
|
|
|
|
|
Washington D.C. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maryland |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Fallsgrove |
|
2003 |
|
|
361 |
|
|
|
983 |
|
|
|
1,703 |
|
|
|
1.73 |
|
|
|
98.2% |
|
Post Park® |
|
2010 |
|
|
396 |
|
|
|
975 |
|
|
|
1,638 |
|
|
|
1.68 |
|
|
|
96.8% |
|
|
|
|
|
|
|
|
Virginia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Carlyle Square |
|
2006, 2013 |
|
|
549 |
|
|
|
890 |
|
|
|
2,288 |
|
|
|
2.57 |
|
|
|
93.8% |
|
Post Corners at Trinity Centre (2) |
|
1996 |
|
|
336 |
|
|
|
994 |
|
|
|
1,573 |
|
|
|
1.58 |
|
|
|
97.2% |
|
Post Pentagon Row TM |
|
2001 |
|
|
504 |
|
|
|
853 |
|
|
|
2,203 |
|
|
|
2.58 |
|
|
|
96.0% |
|
Post Tysons Corner TM |
|
1990 |
|
|
499 |
|
|
|
807 |
|
|
|
1,702 |
|
|
|
2.11 |
|
|
|
96.8% |
|
|
|
|
|
|
|
|
Washington D.C. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Massachusetts Avenue TM (1)(2) |
|
2002 |
|
|
269 |
|
|
|
883 |
|
|
|
3,285 |
|
|
|
3.72 |
|
|
|
94.6% |
|
|
|
|
|
|
|
|
Tampa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Bay at Rocky Point |
|
1997 |
|
|
150 |
|
|
|
1,012 |
|
|
|
1,464 |
|
|
|
1.45 |
|
|
|
98.8% |
|
Post Harbour PlaceTM |
|
1999-2002 |
|
|
578 |
|
|
|
920 |
|
|
|
1,577 |
|
|
|
1.71 |
|
|
|
97.0% |
|
Post Hyde Park® (2) |
|
1996, 2008 |
|
|
467 |
|
|
|
1,011 |
|
|
|
1,527 |
|
|
|
1.51 |
|
|
|
96.1% |
|
Post Rocky Point® |
|
1996-1998 |
|
|
916 |
|
|
|
1,031 |
|
|
|
1,346 |
|
|
|
1.31 |
|
|
|
97.0% |
|
Post Soho Square |
|
2014 |
|
|
231 |
|
|
|
880 |
|
|
|
1,647 |
|
|
|
1.87 |
|
|
|
100.0% |
|
|
|
|
|
|
|
|
Orlando |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Lake® at Baldwin Park |
|
2004-2007 |
|
|
350 |
|
|
|
1,013 |
|
|
|
1,487 |
|
|
|
1.47 |
|
|
|
97.0% |
|
Post Lake® at Baldwin Park - Phase III |
|
2013 |
|
|
410 |
|
|
|
960 |
|
|
|
1,539 |
|
|
|
1.60 |
|
|
|
94.7% |
|
Post Lakeside |
|
2013 |
|
|
300 |
|
|
|
1,070 |
|
|
|
1,382 |
|
|
|
1.29 |
|
|
|
95.9% |
|
Post ParksideTM |
|
1999 |
|
|
248 |
|
|
|
867 |
|
|
|
1,524 |
|
|
|
1.76 |
|
|
|
96.6% |
|
|
|
|
|
|
|
|
Charlotte |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Ballantyne |
|
2004 |
|
|
323 |
|
|
|
1,252 |
|
|
|
1,233 |
|
|
|
0.98 |
|
|
|
94.8% |
|
Post Gateway PlaceTM |
|
2000 |
|
|
436 |
|
|
|
804 |
|
|
|
1,161 |
|
|
|
1.44 |
|
|
|
96.1% |
|
Post Park at Phillips Place® |
|
1998 |
|
|
402 |
|
|
|
1,101 |
|
|
|
1,445 |
|
|
|
1.31 |
|
|
|
95.6% |
|
Post South End |
|
2009 |
|
|
360 |
|
|
|
847 |
|
|
|
1,398 |
|
|
|
1.65 |
|
|
|
94.5% |
|
Post Uptown PlaceTM |
|
2000 |
|
|
227 |
|
|
|
800 |
|
|
|
1,223 |
|
|
|
1.53 |
|
|
|
96.5% |
|
|
|
|
|
|
|
|
Raleigh |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Post Parkside at Wade - Phase I |
|
2013 |
|
|
397 |
|
|
|
875 |
|
|
|
1,071 |
|
|
|
1.22 |
|
|
|
93.0% |
|
1) |
Communities held in unconsolidated entities. |
2) |
Communities encumbered by secured mortgage indebtedness. |
3) |
During the period, this community, or portion thereof, was in lease-up. |
|
|
|
Supplemental Financial Data |
|
25 | P a g e |
Table 4 - Year-to-Date Margin Analysis
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2015 |
|
|
Rental and
Other Property
Revenues |
|
|
Property
Operating &
Maintenance
Expenses |
|
|
Net
Operating
Income
(NOI) |
|
|
NOI
Margin |
|
Expense
Margin |
Same store communities |
|
$ |
167,098 |
|
|
$ |
65,786 |
|
|
$ |
101,312 |
|
|
60.6% |
|
39.4% |
Newly stabilized communities |
|
|
8,419 |
|
|
|
3,129 |
|
|
|
5,290 |
|
|
62.8% |
|
37.2% |
Lease-up communities |
|
|
2,118 |
|
|
|
1,216 |
|
|
|
902 |
|
|
N/A |
|
N/A |
Other property segments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate apartments |
|
|
2,718 |
|
|
|
2,482 |
|
|
|
236 |
|
|
8.7% |
|
91.3% |
Commercial |
|
|
7,922 |
|
|
|
2,726 |
|
|
|
5,196 |
|
|
65.6% |
|
34.4% |
Corporate property management expenses (1) |
|
|
- |
|
|
|
6,296 |
|
|
|
(6,296) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
188,275 |
|
|
$ |
81,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated property NOI (2) |
|
|
|
|
|
|
|
|
|
$ |
106,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-party management fees |
|
|
|
|
|
|
|
|
|
$ |
447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
The following table summarizes the Companys net property management expense as a percentage of adjusted property revenues:
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
Corporate property management expenses |
|
$ |
6,296 |
|
|
|
Less: Third-party management fees |
|
|
(447) |
|
|
|
|
|
|
|
|
|
|
Net property management expenses |
|
$ |
5,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
Total rental and other property revenues |
|
$ |
188,275 |
|
|
|
Less: Corporate apartment revenues |
|
|
(2,718) |
|
|
|
|
|
|
|
|
|
|
Adjusted property revenues |
|
$ |
185,557 |
|
|
|
|
|
|
|
|
|
|
Net property management expenses as a percentage of adjusted property revenues |
|
|
3.2% |
|
|
|
|
|
|
|
|
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 |
Table 5 - Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Annually recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
3,744 |
|
|
$ |
3,617 |
|
|
$ |
5,960 |
|
|
$ |
5,879 |
|
Newly stabilized communities |
|
|
4 |
|
|
|
2 |
|
|
|
7 |
|
|
|
9 |
|
Lease-up communities |
|
|
2 |
|
|
|
1 |
|
|
|
3 |
|
|
|
4 |
|
Held for sale and sold communities |
|
|
- |
|
|
|
56 |
|
|
|
- |
|
|
|
141 |
|
Commercial and other segments |
|
|
121 |
|
|
|
119 |
|
|
|
169 |
|
|
|
183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total annually recurring capital expenditures |
|
$ |
3,871 |
|
|
$ |
3,795 |
|
|
$ |
6,139 |
|
|
$ |
6,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Periodically recurring capital expenditures by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same store communities |
|
$ |
1,534 |
|
|
$ |
986 |
|
|
$ |
2,089 |
|
|
$ |
2,310 |
|
Newly stabilized communities |
|
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
10 |
|
Held for sale and sold communities |
|
|
- |
|
|
|
182 |
|
|
|
- |
|
|
|
439 |
|
Commercial and other segments |
|
|
290 |
|
|
|
910 |
|
|
|
433 |
|
|
|
1,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total periodically recurring capital expenditures |
|
$ |
1,824 |
|
|
$ |
2,087 |
|
|
$ |
2,522 |
|
|
$ |
4,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue generating capital expenditures |
|
$ |
2,314 |
|
|
$ |
2,052 |
|
|
$ |
3,946 |
|
|
$ |
3,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in capital expenditure accruals |
|
$ |
226 |
|
|
$ |
445 |
|
|
$ |
(298) |
|
|
$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total property capital expenditures per statements of cash flows |
|
$ |
8,235 |
|
|
$ |
8,379 |
|
|
$ |
12,309 |
|
|
$ |
14,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 - Computation of Debt Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
As of June 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
Total real estate assets per balance sheet |
|
$ |
2,151,111 |
|
|
$ |
2,221,738 |
|
Plus: |
|
|
|
|
|
|
|
|
Company share of real estate assets held in unconsolidated entities |
|
|
57,337 |
|
|
|
57,402 |
|
Company share of accumulated depreciation - assets held in unconsolidated entities |
|
|
14,982 |
|
|
|
13,403 |
|
Accumulated depreciation per balance sheet |
|
|
979,505 |
|
|
|
895,723 |
|
Accumulated depreciation on assets held for sale |
|
|
- |
|
|
|
40,986 |
|
|
|
|
|
|
|
|
|
|
Total undepreciated real estate assets (A) |
|
$ |
3,202,935 |
|
|
$ |
3,229,252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
891,004 |
|
|
$ |
976,760 |
|
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) |
|
$ |
940,535 |
|
|
$ |
1,026,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt)
(B÷A) |
|
|
29.4% |
|
|
|
31.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt per balance sheet |
|
$ |
891,004 |
|
|
$ |
976,760 |
|
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) |
|
$ |
983,927 |
|
|
$ |
1,069,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners share of debt)
(C÷A) |
|
|
30.7% |
|
|
|
33.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
27 | P a g e |
Table 7 - Computation of Coverage Ratios
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, |
|
|
|
2015 |
|
|
2014 |
|
Net income |
|
$ |
39,636 |
|
|
$ |
62,244 |
|
Other non-cash (income) expense, net |
|
|
3,101 |
|
|
|
2,131 |
|
Income tax expense (benefit), net |
|
|
494 |
|
|
|
399 |
|
Gains on sales of real estate assets, net |
|
|
(1,475) |
|
|
|
(36,902) |
|
Net loss on extinguishment of indebtedness |
|
|
197 |
|
|
|
4,287 |
|
Depreciation expense |
|
|
42,675 |
|
|
|
42,596 |
|
Depreciation and amortization (company share) - unconsolidated entities |
|
|
614 |
|
|
|
601 |
|
Interest expense |
|
|
15,846 |
|
|
|
21,677 |
|
Interest expense (company share) - unconsolidated entities |
|
|
1,213 |
|
|
|
1,213 |
|
Amortization of deferred financing costs |
|
|
882 |
|
|
|
1,265 |
|
|
|
|
|
|
|
|
|
|
Income available for debt service (A) |
|
$ |
103,183 |
|
|
$ |
99,511 |
|
|
|
|
|
|
|
|
|
|
Annualized income available for debt service (B) |
|
$ |
206,366 |
|
|
$ |
199,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
15,846 |
|
|
$ |
21,677 |
|
Interest expense (company share) - unconsolidated entities |
|
|
1,213 |
|
|
|
1,213 |
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense (C) |
|
|
17,059 |
|
|
|
22,890 |
|
Capitalized interest |
|
|
2,219 |
|
|
|
1,601 |
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense (including capitalized interest) (D) |
|
$ |
19,278 |
|
|
$ |
24,491 |
|
|
|
|
|
|
|
|
|
|
Fixed charges for purposes of computation - |
|
|
|
|
|
|
|
|
Adjusted interest expense |
|
$ |
17,059 |
|
|
$ |
22,890 |
|
Dividends to preferred shareholders |
|
|
1,844 |
|
|
|
1,844 |
|
|
|
|
|
|
|
|
|
|
Fixed charges (E) |
|
|
18,903 |
|
|
|
24,734 |
|
Capitalized interest |
|
|
2,219 |
|
|
|
1,601 |
|
|
|
|
|
|
|
|
|
|
Fixed charges (including capitalized interest) (F) |
|
$ |
21,122 |
|
|
$ |
26,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt (adjusted for joint venture partners share of debt) (see Table 6) (G) |
|
$ |
940,535 |
|
|
$ |
1,026,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio (A÷C) |
|
|
6.0x |
|
|
|
4.3x |
|
|
|
|
|
|
|
|
|
|
Interest coverage ratio (including capitalized interest) (A÷D) |
|
|
5.4x |
|
|
|
4.1x |
|
|
|
|
|
|
|
|
|
|
Fixed charge coverage ratio (A÷E) |
|
|
5.5x |
|
|
|
4.0x |
|
|
|
|
|
|
|
|
|
|
Fixed charge coverage ratio (including capitalized interest) (A÷F) |
|
|
4.9x |
|
|
|
3.8x |
|
|
|
|
|
|
|
|
|
|
Total debt to income available for debt service ratio (G÷B) |
|
|
4.6x |
|
|
|
5.2x |
|
|
|
|
|
|
|
|
|
|
Table 8 - Calculation of Company Undepreciated Book Value Per Share
(In thousands, except per share data)
|
|
|
|
|
|
|
June 30, 2015 |
|
Total Company shareholders equity per balance sheet |
|
$ |
1,280,236 |
|
Plus: |
|
|
|
|
Accumulated depreciation, per balance sheet |
|
|
979,505 |
|
Noncontrolling interest of common unitholders - Operating Partnership |
|
|
6,555 |
|
Less: |
|
|
|
|
Deferred financing costs, net, per balance sheet |
|
|
(7,924) |
|
Preferred shares at liquidation value |
|
|
(43,392) |
|
|
|
|
|
|
Total undepreciated book value (A) |
|
$ |
2,214,980 |
|
|
|
|
|
|
|
|
Total common shares and units (B) |
|
|
54,713 |
|
|
|
|
|
|
|
|
Company undepreciated book value per share (A÷B) |
|
$ |
40.48 |
|
|
|
|
|
|
|
|
|
Supplemental Financial Data |
|
28 | P a g e |
Grafico Azioni Post Properties (NYSE:PPS)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Post Properties (NYSE:PPS)
Storico
Da Ott 2023 a Ott 2024