Company Website:
http://Postproperties.com
ATLANTA -- (Business Wire)
Post Properties, Inc. (NYSE: PPS) announced today net income available
to common shareholders of $13.3 million, or $0.24 per diluted share, for
the first quarter of 2014, compared to $19.4 million, or $0.35 per
diluted share, for the first quarter of 2013.
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 Company’s 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 first quarter of 2014 was $35.1 million, or $0.64 per
diluted share, compared to $40.5 million, or $0.74 per diluted share,
for the first quarter of 2013. Core FFO for the first quarter of 2014
(excluding FFO from condominium activities) was $34.3 million, or $0.63
per diluted share, compared to $32.3 million, or $0.59 per diluted
share, for the first quarter of 2013.
Said Dave Stockert, Post’s CEO, “The Company produced solid growth again
in the first quarter. Top-line revenue advanced 8% on a combination of
healthy apartment market fundamentals and the profitable contribution of
our value-creating development pipeline, with per share core funds from
operations growing by nearly 7%.”
Same Store Community Data
Average economic occupancy at the Company’s 48 same store communities,
containing 17,714 apartment units, was 95.4% for the first quarter of
2014 and 2013.
Total revenues for the same store communities increased 2.4% and total
operating expenses increased 3.7% during the first quarter of 2014,
compared to the first quarter of 2013, producing a 1.6% increase in same
store net operating income (“NOI”). The average monthly rental rate per
unit increased 2.3% during the first quarter of 2014, compared to the
first quarter of 2013.
On a sequential basis, total revenues for the same store communities
increased 0.5% and total operating expenses increased 2.2%, resulting in
a 0.6% decrease in same store NOI for the first quarter of 2014,
compared to the fourth quarter of 2013. On a sequential basis, the
average monthly rental rate per unit increased 0.2%. For the first
quarter of 2014, average economic occupancy at the same store
communities was 95.4%, compared to 95.7% for the fourth quarter of 2013.
Same Store Results Adjusted for Three Communities Held for Sale
As discussed below, the Company is currently marketing for sale three
communities. Total revenues for the same store communities, adjusted to
include the three communities classified as held for sale, increased
2.6% and total operating expenses increased 4.9% during the first
quarter of 2014, compared to the first quarter of 2013, producing a 1.1%
increase in same store NOI. On a sequential basis, total revenues for
the same store communities, again adjusted to include the three
communities classified as held for sale, increased 0.4% and total
operating expenses increased 2.7%, resulting in a 1.1% decrease in same
store NOI for the first quarter of 2014, compared to the fourth quarter
of 2013.
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
In the aggregate, the Company has 1,620 units in five apartment
communities, and approximately 25,464 square feet of retail space, under
development or in lease-up with a total estimated cost of $260.7
million, and a remaining funding requirement of $79.6 million. The
Company believes it has adequate internal resources to fund its
development commitments.
The Company is also actively planning five additional development
projects on land it already owns. These projects could total more than
1,800 apartment units with a total investment of more than $300 million.
There can be no assurance that any of these projects will commence.
Planned Asset Sales Activity
The Company is currently marketing for sale three apartment communities,
containing 645 apartment units and 65,900 square feet of retail space –
Post Rice Lofts™ in Houston, Texas, and Post Toscana™ and Post
Luminaria™, in New York, NY.
The Company is pursuing these sales in order to take advantage of strong
demand for high-quality apartment assets, to harvest value and to
enhance the Company’s capacity for future growth, particularly through
development.
The Company currently expects that gross proceeds from the sale of these
three assets may be $300 million or more, and is currently anticipating
closings as early as the second and third quarter. Proceeds, after
payment of transaction costs and a distribution to the Company’s partner
in one of the communities, are expected to be used, in combination with
a portion of cash on hand, as follows:
-
To prepay a $120.0 million, 4.88% mortgage loan secured by Post
Addison Circle™, and associated estimated prepayment premiums of
approximately $4.2 million;
-
To prepay a $49.7 million, 5.84% mortgage loan secured by Post
Toscana™, if that loan is not otherwise assumed by the buyer, and
associated estimated prepayment premiums of approximately $8.3 million
to $8.5 million;
-
To prepay a $33.5 million, 5.61% mortgage loan secured by Post
Luminaria™, if that loan is not otherwise assumed by the buyer, and
associated estimated prepayment premiums, the Company’s share of which
are expected to be approximately $3.8 million to $4.0 million;
-
To repurchase shares of common stock at least sufficient, when
combined with the interest savings from the loan prepayments discussed
above, to mitigate the dilution to recurring earnings and cash flow
from the sale of the three communities; and
-
To pay special dividends to common shareholders to the extent of
required capital gains distributions, after various tax planning
strategies have been employed.
There can be no assurance that the Company’s planned asset sales will be
completed, or that the proceeds will be sufficient or will be applied in
a manner consistent with the above.
The Company’s share of prepayment premiums discussed above and the
write-off of unamortized deferred financing costs are projected to
result in losses on early extinguishment of debt of $0.32 to $0.33 per
diluted share, which were not included in the Company’s previously
disclosed earnings guidance for 2014. There can be no assurance that the
estimated losses on early extinguishment of debt will not change due to
future changes in interest rates or otherwise.
Condominium Activity
In the first quarter of 2014, the Company closed the sale of its final
available unit at the Ritz-Carlton Residences, Atlanta Buckhead,
originally consisting of 126 units. At March 31, 2014, the Company had
no further investment in condominium assets. The Company recognized net
gains in FFO of $0.8 million, or $0.015 per diluted share, from
condominium sales activities during the first quarter of 2014, compared
to $8.2 million, or $0.15 per diluted share, during the first quarter of
2013.
Financing Activity
Leverage, Line and Term Loan 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 36.6% at March 31, 2014.
As of April 25, 2014, the Company had cash and cash equivalents of $57.2
million. Additionally, the Company had no outstanding borrowings, and
letters of credit totaling $0.4 million under its combined $330 million
unsecured lines of credit. The Company has no principal debt maturities
in 2014.
Computations of debt ratios and reconciliations of the ratios to the
appropriate GAAP measures in the Company’s financial statements are
included in the financial data (Table 4) accompanying this press release.
At-the-Market Common Equity Activity
The Company has available an at-the-market (“ATM”) common equity program
that provides for the sale of up to 4 million shares of common stock. As
of March 31, 2014 and since its inception, no shares have been issued
under that program. Sales under this program are dependent upon a
variety of factors, including, among others, market conditions, the
trading price of the Company’s common stock, the Company’s liquidity
position and the potential use of proceeds.
Information Technology Systems Initiatives
The Company is in the process of upgrading and replacing its financial
and property management information technology systems, which it expects
to be completed by the end of 2014. As part of this project, in addition
to other system implementation costs capitalized, the Company is
required to expense certain up-front implementation and training costs.
These expensed system implementation costs totaled $0.2 million in the
first quarter of 2014 and are currently projected to total approximately
$1.3 million throughout 2014.
Supplemental Financial Data
The Company also produces Supplemental Financial Data that includes
detailed information regarding the Company’s 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 Company’s website. The
Company’s Earnings Release and the Supplemental Financial Data are
available through the Investors/Financial Reports/Quarterly and Other
Reports section of the Company’s website at www.postproperties.com.
The ability to access the attachments on the Company’s 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 Company’s 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, and after
adjustment for unconsolidated partnerships and joint ventures all
determined on a consistent basis in accordance with GAAP. FFO presented
in the Company’s 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
Company’s FFO is comparable to the FFO of real estate companies that use
the current NAREIT definition.
Accounting for real estate assets using historical cost accounting under
GAAP assumes that the value of real estate assets diminishes predictably
over time. NAREIT stated in its April 2002 White Paper on Funds from
Operations 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 Company’s results to
those of other equity REITs. The Company believes that the line on its
consolidated statement of operations entitled “net income available to
common shareholders” is the most directly comparable GAAP measure to FFO.
Adjusted Funds From Operations – The Company also uses AFFO as an
operating measure. AFFO is defined as FFO less operating capital
expenditures and after adjusting for the impact of non-cash
straight-line long-term ground lease expense, non-cash impairment
charges, debt extinguishment gains (losses) and preferred stock
redemption costs. The Company believes that AFFO is an important
supplemental measure of operating performance for an equity REIT because
it provides investors with an indication of the REIT’s 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 REIT’s operating real estate because it
provides a measure of the core operations, rather than factoring in
depreciation and amortization, financing costs and general and
administrative expenses generally incurred at the corporate level. This
measure is particularly useful, in the opinion of the Company, in
evaluating the performance of geographic operations, same store
groupings and individual properties. Additionally, the Company believes
that NOI, as defined, is a widely accepted measure of comparative
operating performance in the real estate investment community. The
Company believes that the line on its consolidated statement of
operations entitled “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 Company’s 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 Company’s 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
Company’s 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 partner’s share of debt);
(4) total debt plus preferred equity as a percentage of undepreciated
real estate assets (adjusted for joint venture partner’s 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 Company’s
debt agreements, including, among others, the Company’s senior unsecured
notes. In addition, the Company presents these measures because the
degree of leverage could affect the Company’s ability to obtain
additional financing for working capital, capital expenditures,
acquisitions, development or other general corporate purposes. The
Company uses these measures internally as an indicator of liquidity, and
the Company believes that these measures are also utilized by the
investment and analyst communities to better understand the Company’s
liquidity.
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
Company’s calculation thereof may not be comparable to similar measures
reported by other companies, including EBITDA or Adjusted EBITDA.
Property Operating Statistics – The Company uses average economic
occupancy, gross turnover, net turnover and percentage increases in rent
for new and renewed leases as statistical measures of property operating
performance. The Company defines average economic occupancy as gross
potential rent less vacancy losses, model expenses and bad debt expenses
divided by gross potential rent for the period, expressed as a
percentage. Gross turnover is defined as the percentage of leases
expiring during the period that are not renewed by the existing
residents. Net turnover is defined as gross turnover decreased by the
percentage of expiring leases where the residents transfer to a new
apartment unit in the same community or in another Post® community. The
percentage increases in rent for new and renewed leases are calculated
using the respective new or renewed rental rate as of the date of a new
lease, as compared with the previous rental rate on that same unit.
Conference Call Information
The Company will hold its quarterly conference call on Tuesday, April
29, at 10:00 a.m. ET. The telephone numbers are 888-359-3627 for US and
Canada callers and 719-325-2494 for international callers. The access
code is 9720599. The conference call will be open to the public and can
be listened to live on Post’s website at www.postproperties.com.
Click Investors in the top menu, then select either Investor’s Overview
or Events Calendar. The replay will begin at 1:00 p.m. ET on Tuesday,
April 29, and will be available until Tuesday, May 6, 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 9720599. A replay of the call also will be archived on
Post’s website under Investors/Audio Archives.
About Post
Post Properties, founded more than 40 years ago, is a leading developer
and operator of upscale multifamily communities. The Company’s mission
is delivering superior satisfaction and value to its residents,
associates, and investors, with a vision of being the first choice in
quality multifamily living. Operating as a real estate investment trust
(“REIT”), the Company focuses on developing and managing Post® branded
high density urban and resort-style garden apartments. Post Properties
is headquartered in Atlanta, Georgia, and has operations in ten markets
across the country.
Post Properties has interests in 22,516 apartment units in 60
communities, including 1,471 apartment units in four communities held in
unconsolidated entities and 1,620 apartment units in five communities
currently under development or in lease-up.
Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the Company, may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Statements regarding future events and developments and
the Company’s future performance, as well as management’s expectations,
beliefs, plans, estimates or projections relating to the future, are
forward-looking statements within the meaning of these laws. Examples of
such statements in this press release and in the Company’s outlook
include, expectations regarding apartment market conditions,
expectations regarding future operating conditions, including the
Company’s 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 (including the
prepayment of indebtedness and prepayment penalties as well as the
possible repurchase of shares and special dividends to shareholders),
expectations regarding use of proceeds from unsecured bank credit
facilities, and expectations regarding offerings of the Company’s common
stock and the use of proceeds thereof. All forward-looking statements
are subject to certain risks and uncertainties that could cause actual
events to differ materially from those projected. Management believes
that these forward-looking statements are reasonable; however, you
should not place undue reliance on such statements. These statements are
based on current expectations and speak only as of the date of such
statements. The Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of future
events, new information or otherwise.
The following are some of the factors that could cause the Company’s
actual results and its expectations to differ materially from those
described in the Company’s forward-looking statements: the success of
the Company’s business strategies discussed in its Annual Report on Form
10-K for the year ended December 31, 2013 and in subsequent filings with
the SEC; conditions affecting ownership of residential real estate and
general conditions in the multi-family residential real estate market;
uncertainties associated with the Company’s 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
Company’s ability to generate sufficient cash flows to make required
payments associated with its debt financing; the effects of the
Company’s leverage on its risk of default and debt service requirements;
the impact of a downgrade in the credit rating of the Company’s
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 Company’s or its subsidiaries’ mortgage
indebtedness on operational flexibility and default risks; the Company’s
ability to maintain its current dividend level; uncertainties associated
with the Company’s 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 Company’s business, including competition for
residents in the Company’s apartment communities and for development
locations; the Company’s 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
Company’s acquired apartment communities; the Company’s ability to
succeed in new markets; the costs associated with compliance with laws
requiring access to the Company’s properties by persons with
disabilities; the impact of the Company’s 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 Company’s ability to control joint
ventures, properties in which it has joint ownership and corporations
and limited partnership in which it has partial interests; the Company’s
ability to renew leases or relet units as leases expire; the Company’s
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 Company’s filings with the Securities and
Exchange Commission; increased costs arising from health care reform;
and any breach of the Company’s privacy or information security systems.
Other important risk factors regarding the Company are included under
the caption “Risk Factors” in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2013 and may be discussed in subsequent
filings with the SEC. The risk factors discussed in the Form 10-K under
the caption “Risk Factors” are specifically incorporated by reference
into this press release.
Financial Highlights |
(Unaudited; in thousands, except per share and unit amounts)
|
|
|
|
|
| |
| | | | | Three months ended |
| | | | | March 31, |
| | | | | 2014 |
|
|
| 2013 |
OPERATING DATA
| | | | | | | | | |
Total revenues
| | | | |
$
|
93,512
| | | |
$
|
86,358
|
Net income available to common shareholders
| | | | |
$
|
13,314
| | | |
$
|
19,420
|
Funds from operations available to common
| | | | | | | | | |
shareholders and unitholders (Table 1)
| | | | |
$
|
35,129
| | | |
$
|
40,537
|
| | | | | | | | |
|
Weighted average shares outstanding - diluted
| | | | | |
54,291
| | | | |
54,639
|
Weighted average shares and units outstanding - diluted
| | | | | |
54,426
| | | | |
54,782
|
| | | | | | | | |
|
PER COMMON SHARE DATA - DILUTED
| | | | | | | | | |
Net income available to common shareholders
| | | | |
$
|
0.24
| | | |
$
|
0.35
|
| | | | | | | | |
|
Funds from operations available to common
| | | | | | | | | |
shareholders and unitholders (Table 1) (1)
| | | | |
$
|
0.64
| | | |
$
|
0.74
|
| | | | | | | | |
|
Dividends declared
| | | | |
$
|
0.36
| | | |
$
|
0.25
|
| | | | | | | | | | |
|
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
116 and 202 for the three months ended March 31, 2014 and 2013,
respectively. Additionally, diluted weighted average shares and units
included the impact of non-vested shares and units totaling 112 and 111
for the three months ended March 31, 2014 and 2013, respectively, for
the computation of FFO per share. Such non-vested shares and units are
considered in the income per share computations under GAAP using the
“two-class method.”
Table 1 |
Reconciliation of Net Income Available to Common Shareholders to
|
Funds From Operations Available to Common Shareholders and
Unitholders
|
(Unaudited; in thousands, except per share and unit amounts)
|
|
|
|
| |
| | | | Three months ended |
| | | | March 31, |
| | | | 2014 |
|
|
|
| 2013 |
Net income available to common shareholders | | | |
$
|
13,314
| | | | |
$
|
19,420
|
Noncontrolling interests - Operating Partnership
| | | | |
33
| | | | | |
51
|
Depreciation on consolidated real estate assets, net
| | | | |
21,489
| | | | | |
20,777
|
Depreciation on real estate assets held in
| | | | | | | | | |
unconsolidated entities
| | | |
|
293
| | | | |
|
289
|
Funds from operations available to common | | | | | | | | | |
shareholders and unitholders | | | |
$
|
35,129
| | | | |
$
|
40,537
|
| | | | | | | | |
|
Funds from operations available to common
| | | | | | | | | |
shareholders and unitholders - core operations
| | | |
$
|
34,319
| | | | |
$
|
32,343
|
Funds from operations available to common
| | | | | | | | | |
shareholders and unitholders - condominiums
| | | |
|
810
| | | | |
|
8,194
|
Funds from operations available to common | | | | | | | | | |
shareholders and unitholders | | | |
$
|
35,129
| | | | |
$
|
40,537
|
| | | | | | | | |
|
Funds from operations - per share and unit - diluted (1) | | | |
$
|
0.64
| | | | |
$
|
0.74
|
Funds from operations per share and unit - core operations | | | |
$
|
0.63
| | | | |
$
|
0.59
|
Weighted average shares and units outstanding - diluted (1) | | | |
|
54,538
| | | | |
|
54,893
|
| | | | | | | | | | |
|
1) Diluted weighted average shares and units include the impact of
dilutive securities totaling 116 and 202 for the three months ended
March 31, 2014 and 2013, respectively. Additionally, diluted weighted
average shares and units included the impact of non-vested shares and
units totaling 112 and 111 for the three months ended March 31, 2014 and
2013, respectively, for the computation of FFO per share. Such
non-vested shares and units are considered in the income per share
computations under GAAP using the “two-class method.”
Table 2 |
Reconciliation of Same Store Net Operating Income (NOI) to GAAP
Net Income
|
(Unaudited; In thousands)
|
|
|
|
| |
|
| |
| | | | Three months ended |
| | | | March 31, |
|
| March 31, | | | December 31, |
| | | | 2014 | | | 2013 | | | 2013 |
Total same store NOI
| | | |
$
|
46,318
| | | |
$
|
45,580
| | | |
$
|
46,586
| |
Property NOI from held for sale segment - residential
| | | | |
2,473
| | | | |
2,704
| | | | |
2,734
| |
Property NOI from held for sale segment- commercial
| | | | |
300
| | | | |
423
| | | | |
364
| |
Property NOI from other operating segments
| | | |
|
3,606
|
| | |
|
153
|
| | |
|
4,279
|
|
Consolidated property NOI
| | | |
|
52,697
|
| | |
|
48,860
|
| | |
|
53,963
|
|
Add (subtract):
| | | | | | | | | | |
Interest income
| | | | |
12
| | | | |
36
| | | | |
10
| |
Other revenues
| | | | |
219
| | | | |
214
| | | | |
204
| |
Depreciation
| | | | |
(21,767
|
)
| | | |
(20,944
|
)
| | | |
(21,914
|
)
|
Interest expense
| | | | |
(11,244
|
)
| | | |
(11,052
|
)
| | | |
(11,424
|
)
|
Amortization of deferred financing costs
| | | | |
(645
|
)
| | | |
(624
|
)
| | | |
(658
|
)
|
General and administrative
| | | | |
(4,128
|
)
| | | |
(4,245
|
)
| | | |
(4,751
|
)
|
Investment and development
| | | | |
(811
|
)
| | | |
(489
|
)
| | | |
(307
|
)
|
Other investment costs
| | | | |
(273
|
)
| | | |
(305
|
)
| | | |
(85
|
)
|
Other expenses
| | | | |
(907
|
)
| | | |
-
| | | | |
(436
|
)
|
Gains on condominium sales activities, net
| | | | |
810
| | | | |
8,194
| | | | |
476
| |
Equity in income of unconsolidated
| | | | | | | | | | |
real estate entities, net
| | | | |
485
| | | | |
478
| | | | |
479
| |
Other income (expense), net
| | | |
|
(195
|
)
| | |
|
(166
|
)
| | |
|
(195
|
)
|
| | | | | | | | | |
|
Income from continuing operations
| | | | |
14,253
| | | | |
19,957
| | | | |
15,362
| |
Income from discontinued operations
| | | |
|
-
|
| | |
|
433
|
| | |
|
28,501
|
|
| | | | | | | | | |
|
Net income
| | | |
$
|
14,253
|
| | |
$
|
20,390
|
| | |
$
|
43,863
|
|
| | | | | | | | | |
|
Table 3 |
Same Store Net Operating Income (NOI) and Average Rental Rate per
Unit by Market
|
(In thousands)
|
|
| | |
| |
| |
| |
| |
| | Three months ended | | Q1 '14 | | Q1 '14 | | Q1 '14 |
| | March 31, |
| March 31, | | December 31, | | vs. Q1 '13 | | vs. Q4 '13 | | % Same |
| | 2014 | | 2013 | | 2013 | | % Change | | % Change | | Store NOI |
Rental and other revenues
| | | | | | | | | | | | |
Atlanta
| |
$
|
20,846
| |
$
|
19,817
| |
$
|
20,682
| |
5.2
|
%
| |
0.8
|
%
| | |
Dallas
| | |
17,805
| | |
17,263
| | |
17,604
| |
3.1
|
%
| |
1.1
|
%
| | |
Houston
| | |
2,256
| | |
2,160
| | |
2,227
| |
4.4
|
%
| |
1.3
|
%
| | |
Austin
| | |
2,986
| | |
2,884
| | |
2,990
| |
3.5
|
%
| |
(0.1
|
)%
| | |
Washington, D.C.
| | |
12,823
| | |
13,040
| | |
12,990
| |
(1.7
|
)%
| |
(1.3
|
)%
| | |
Tampa
| | |
9,251
| | |
9,015
| | |
9,100
| |
2.6
|
%
| |
1.7
|
%
| | |
Orlando
| | |
2,709
| | |
2,785
| | |
2,747
| |
(2.7
|
)%
| |
(1.4
|
)%
| | |
Charlotte
| |
|
6,596
| |
|
6,548
| |
|
6,573
| |
0.7
|
%
| |
0.3
|
%
| | |
Total rental and other revenues
| |
|
75,272
| |
|
73,512
| |
|
74,913
| |
2.4
|
%
| |
0.5
|
%
| | |
| | | | | | | | | | | |
|
Property operating and maintenance
| | | | | | | | | | | |
expenses (exclusive of depreciation
| | | | | | | | | | | |
and amortization)
| | | | | | | | | | | | |
Atlanta
| | |
8,091
| | |
7,861
| | |
8,104
| |
2.9
|
%
| |
(0.2
|
)%
| | |
Dallas
| | |
7,664
| | |
7,191
| | |
7,387
| |
6.6
|
%
| |
3.7
|
%
| | |
Houston
| | |
870
| | |
820
| | |
857
| |
6.1
|
%
| |
1.5
|
%
| | |
Austin
| | |
1,345
| | |
1,226
| | |
1,278
| |
9.7
|
%
| |
5.2
|
%
| | |
Washington, D.C.
| | |
4,488
| | |
4,306
| | |
4,373
| |
4.2
|
%
| |
2.6
|
%
| | |
Tampa
| | |
3,416
| | |
3,321
| | |
3,272
| |
2.9
|
%
| |
4.4
|
%
| | |
Orlando
| | |
964
| | |
1,108
| | |
930
| |
(13.0
|
)%
| |
3.7
|
%
| | |
Charlotte
| |
|
2,116
| |
|
2,099
| |
|
2,126
| |
0.8
|
%
| |
(0.5
|
)%
| | |
Total
| |
|
28,954
| |
|
27,932
| |
|
28,327
| |
3.7
|
%
| |
2.2
|
%
| | |
| | | | | | | | | | | |
|
Net operating income
| | | | | | | | | | | | |
Atlanta
| | |
12,755
| | |
11,956
| | |
12,578
| |
6.7
|
%
| |
1.4
|
%
| |
27.5
|
%
|
Dallas
| | |
10,141
| | |
10,072
| | |
10,217
| |
0.7
|
%
| |
(0.7
|
)%
| |
21.9
|
%
|
Houston
| | |
1,386
| | |
1,340
| | |
1,370
| |
3.4
|
%
| |
1.2
|
%
| |
3.0
|
%
|
Austin
| | |
1,641
| | |
1,658
| | |
1,712
| |
(1.0
|
)%
| |
(4.1
|
)%
| |
3.5
|
%
|
Washington, D.C.
| | |
8,335
| | |
8,734
| | |
8,617
| |
(4.6
|
)%
| |
(3.3
|
)%
| |
18.0
|
%
|
Tampa
| | |
5,835
| | |
5,694
| | |
5,828
| |
2.5
|
%
| |
0.1
|
%
| |
12.6
|
%
|
Orlando
| | |
1,745
| | |
1,677
| | |
1,817
| |
4.1
|
%
| |
(4.0
|
)%
| |
3.8
|
%
|
Charlotte
| |
|
4,480
| |
|
4,449
| |
|
4,447
| |
0.7
|
%
| |
0.7
|
%
| |
9.7
|
%
|
Total same store NOI
| |
$
|
46,318
| |
$
|
45,580
| |
$
|
46,586
| |
1.6
|
%
| |
(0.6
|
)%
| |
100.0
|
%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
Average rental rate per unit
| | | | | | | | | | | | |
Atlanta
| |
$
|
1,301
| |
$
|
1,247
| |
$
|
1,296
| |
4.3
|
%
| |
0.4
|
%
| | |
Dallas
| | |
1,232
| | |
1,199
| | |
1,228
| |
2.8
|
%
| |
0.3
|
%
| | |
Houston
| | |
1,374
| | |
1,306
| | |
1,364
| |
5.2
|
%
| |
0.7
|
%
| | |
Austin
| | |
1,551
| | |
1,490
| | |
1,544
| |
4.1
|
%
| |
0.5
|
%
| | |
Washington, D.C.
| | |
1,868
| | |
1,889
| | |
1,875
| |
(1.1
|
)%
| |
(0.4
|
)%
| | |
Tampa
| | |
1,402
| | |
1,371
| | |
1,396
| |
2.3
|
%
| |
0.4
|
%
| | |
Orlando
| | |
1,484
| | |
1,512
| | |
1,490
| |
(1.9
|
)%
| |
(0.4
|
)%
| | |
Charlotte
| | |
1,245
| | |
1,213
| | |
1,243
| |
2.6
|
%
| |
0.2
|
%
| | |
Total average rental rate per unit
| | |
1,380
| | |
1,349
| | |
1,377
| |
2.3
|
%
| |
0.2
|
%
| | |
| | | | | | | | | | | |
|
Table 4 |
Computation of Debt Ratios
|
(In thousands)
|
|
| |
| | As of March 31, |
| | 2014 |
| 2013 |
Total real estate assets per balance sheet
| |
$
|
2,248,691
| | |
$
|
2,203,873
| |
Plus:
| | | | |
Company share of real estate assets held in unconsolidated entities
| | |
57,389
| | | |
58,448
| |
Company share of accumulated depreciation - assets held in
unconsolidated entities
| | |
13,022
| | | |
11,526
| |
Accumulated depreciation per balance sheet
| | |
875,069
| | | |
863,594
| |
Accumulated depreciation on assets held for sale
| |
|
59,163
|
| |
|
-
|
|
Total undepreciated real estate assets (A) | |
$
|
3,253,334
|
| |
$
|
3,137,441
|
|
| | | |
|
Total debt per balance sheet
| |
$
|
1,097,709
| | |
$
|
1,101,495
| |
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) | |
$
|
1,147,240
|
| |
$
|
1,151,026
|
|
| | | |
|
Total debt as a % of undepreciated real estate assets (adjusted for
joint venture
| | | | |
partners' share of debt) (B÷A) | |
|
35.3
|
%
| |
|
36.7
|
%
|
| | | |
|
Total debt per balance sheet
| |
$
|
1,097,709
| | |
$
|
1,101,495
| |
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) | |
$
|
1,190,632
|
| |
$
|
1,194,418
|
|
| | | |
|
Total debt and preferred equity as a % of undepreciated real estate
assets (adjusted
| | | | |
for joint venture partners' share of debt) (C÷A) | |
|
36.6
|
%
| |
|
38.1
|
%
|
| | | | | | | |
|
Contacts:
Post Properties, Inc.
Chris Papa, 404-846-5028
Source: Post Properties, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.