-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Of2hoO874bUwDQmt4EbV0pjE2W8DyPl3DcBqyJjHc/KIhUfd5RKZPXzXuJ/oz5FC q/pkwb7jpEqad1Q+J7Lw1A== 0000898822-03-000389.txt : 20030423 0000898822-03-000389.hdr.sgml : 20030423 20030423163651 ACCESSION NUMBER: 0000898822-03-000389 CONFORMED SUBMISSION TYPE: DFAN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20030423 EFFECTIVENESS DATE: 20030423 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: POST PROPERTIES INC CENTRAL INDEX KEY: 0000903127 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 581550675 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-12080 FILM NUMBER: 03660372 BUSINESS ADDRESS: STREET 1: 4401 NORTHSIDE PARKWAY STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 BUSINESS PHONE: 4048465000 MAIL ADDRESS: STREET 1: 4401 NORTHSIDE PARKWAY STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WILLIAMS JOHN A CENTRAL INDEX KEY: 0000940225 FILING VALUES: FORM TYPE: DFAN14A BUSINESS ADDRESS: STREET 1: 335O CUMBERLAND CIRCLE STREET 2: SUITE 2200 CITY: ATLANTA STATE: GA ZIP: 30339 BUSINESS PHONE: 4048504400 MAIL ADDRESS: STREET 1: 3350 CUMBERLAND CIRCLE STREET 2: SUITE 2200 CITY: ATLANTA STATE: GA ZIP: 30339 DFAN14A 1 april23powerpoint.txt APRIL 23, 2003 POWERPOINT PRESENTATION SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant |_| Filed by a Party other than the Registrant |X| Check the appropriate box: |_| Preliminary Proxy Statement |_| Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |_| Definitive Proxy Statement |_| Definitive Additional Materials |X| Soliciting Material Under Rule 14a-12 Post Properties, Inc. --------------------- (Name of Registrant as Specified in Its Charter) John A. Williams (Name of Person(s) Filing Proxy Statement, if Other than the Registrant) Payment of Filing Fee (Check the appropriate box): |X| No fee required. |_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. (1) Title of each class of securities to which transaction applies: - -------------------------------------------------------------------------------- (2) Aggregate number of securities to which transaction applies: - -------------------------------------------------------------------------------- (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): (4) Proposed maximum aggregate value of transaction: - -------------------------------------------------------------------------------- (5) Total fee paid: - -------------------------------------------------------------------------------- |_| Fee paid previously with preliminary materials: Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing. (1) Amount previously paid: - -------------------------------------------------------------------------------- (2) Form, Schedule or Registration Statement No.: - -------------------------------------------------------------------------------- (3) Filing Party: - -------------------------------------------------------------------------------- (4) Date Filed: - -------------------------------------------------------------------------------- RESTORING VALUE AND INVESTOR CONFIDENCE IN POST PROPERTIES APRIL 2003 IMPORTANT INFORMATION ================================================================================ On April 7, 2003, Mr. Williams filed a preliminary proxy statement with the Securities and Exchange Commission relating to his solicitation of proxies from shareholders of Post Properties, Inc. with respect to Post Properties' 2003 Annual Meeting scheduled for May 22, 2003, which was amended on April 21, 2003. Mr. Williams will file with the Commission, and will furnish to Post Properties shareholders, a definitive proxy statement regarding his solicitation of proxies from Post Properties shareholders with respect to the 2003 Annual Meeting. Mr. Williams may also file additional proxy solicitation materials. MR. WILLIAMS ADVISES ALL POST PROPERTIES SHAREHOLDERS TO READ THE DEFINITIVE PROXY STATEMENT AND ANY ADDITIONAL PROXY SOLICITATION MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Mr. Williams' preliminary proxy statement, as amended, is, and the definitive proxy statement and any additional proxy solicitation materials will be, available for free at the Securities and Exchange Commission's Internet web site at www.sec.gov. You may also obtain a free copy of Mr. Williams' definitive proxy statement, when it becomes available, and other relevant documents by writing to MacKenzie Partners, Inc. toll-free at (800) 322-2885 or (212) 929-5500 or by email at proxy@mackenziepartners.com. PARTICIPANT INFORMATION Mr. Williams and his nominees for election to the board of directors of Post Properties may be deemed to be participants in Mr. Williams' solicitation of proxies with respect to the 2003 Annual Meeting of Post Properties. These nominees are George R. Puskar, Roy E. Barnes, Francis L. Bryant, Jr., Paul J. Dolinoy, and Thomas J.A. Lavin. Mr. Williams and his nominees have interests in the solicitation of proxies with respect to the 2003 Annual Meeting of Post Properties arising from their beneficial ownership of the common stock of Post Properties. Mr. Williams also receives customary compensation from Post Properties in exchange for his services as a director and pursuant to his employment agreement with the Company. If elected, Mr. Williams would accept a base salary of $1 per year without any cash bonus or other cash payment in consideration of his services. If elected, Mr. Williams' nominees will also receive customary director fees for their services as directors. Additional information with respect to the beneficial ownership of shares of common stock of Post Properties by Mr. Williams and his nominees is as follows: other than Mr. Williams, who owns 2,887,815 shares (including currently exercisable options and partnership units convertible for common stock) and Mr. Puskar, who owns 3,000 shares, none of the other nominees currently own shares in Post Properties. 1 FORWARD LOOKING STATEMENT ================================================================================ Future plans and discussions on performance, and certain other matters discussed herein may be, deemed forward-looking statements within the meaning of the federal securities laws. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and it is possible that our actual results may differ materially from those indicated by these forward- looking statements due to a variety of risks and uncertainties. Those risks and uncertainties include, but are not limited to, the national, regional and local economic climate, competitive market forces, changes in market rental rates, trends in the multifamily industry or changes in market rates of interest. 2 TABLE OF CONTENTS ================================================================================ o Current Market Situation o Post Management's Response o Recent Operating Results and Shareholder Returns o Action Plan to Restore Value and Investor Confidence ---------------------------------------------------------------------------- | | | Sign the GOLD CARD & | | Restore Value and Investor Confidence | | | | | ---------------------------------------------------------------------------- 3 CURRENT MARKET SITUATION CURRENT MARKET SITUATION ================================================================================ o Struggling US economy and lack of visibility o Minimal job growth o Likelihood of jobless recovery o Continued high levels of supply in the multifamily sector o Low rates available for financing of single-family and condo home purchases o Severe pressure on rates and occupancy ---------------------------------------------------------------------------- | | | Difficult times require a management | | team with PROVEN experience | | | | | ---------------------------------------------------------------------------- 4 POST MANAGEMENT'S RESPONSE Inexperience and Failure to Enhance Shareholder Value FAILED TO PERSUE ALTERNATIVES TO ENHANCE SHAREHOLDER VALUE ================================================================================ - - Received bona fide offer from highly gualified, well financed, strategic buyer on March 14th - - Summary Terms: o $26.00 per share in cash o 12.9% premium to March 13th closing price o No financing contingency o Requested non-public due diligence information o Potential buyer expressed belief offer price could be increased following due diligence - - John Willliams' response o Urged Board to explore offer o Urged Board to form a special committee - - Board's response o Rejected recommendations to explore offer and form a special committee o Did not pursue discussions with strategic buyer o Failed to disclose offer to PPS shareholders until prompted by our actions o Failed to describe material terms of offer in recent press release 5 POORLY EXECUTED ASSET SALES ================================================================================ Inferior Strategy & Results - --------------------------- o We believe the wrong assets were being sold o Higher cap rates vs. peers (2001 and 2002) o 8.37% for Post vs. 7.72% for Gables o Inappropriate use of Proceeds - failed to repurchase stock Lack of Oversight - ----------------- o No Board oversight of sale process o No formal engagement letters between Post and brokers on a substantial number of transactions o No incentive fee arrangement with brokers 6 LOSS OF COMPETITIVE ADVANTAGE ================================================================================ o Excessive price discounting (beyond market requirement) o Deferred maintenance expenses o Neglected employee training and customer service o We believe there is a diminished reputation with customers o Foundation of Company's past success o Sacrificed in favor of short-sighted strategy o We believe that there has been no promotion of, or committment to, the Post Brand Name 7 FAILED TO RETAIN KEY EMPLOYEES ================================================================================ o We believe that employees hired to replace key personnel were unsuitable for their respective positions o Property Maintenance o Property Security o Employee Training o Negative management practices o Not promoting from within o Property managers defecting to competitors 8 FAILED TO IMPLEMENT EFFECTIVE YIELD MANAGEMENT PROGRAM ================================================================================ o Philosophy of delegating operating decisions to property level managers has been a failure o All decisions regarding occupancy, rate and marketing should be made at corporate level by senior management o Need to structure system of controls o No incentives to leasing personnel to strive for higher rents 9 G&A Expense - Excessive and Increasing ================================================================================ o Highest G&A expense margin among peers o Corporate headcount too high o We believe Post development team is unsuitable for current environment o Should be downsized o Re-tool development team ------> save $1.2 million per year o Dallas office unnecessary o Reducing presence in Dallas o Should be closed given lack of development activity o Estimated annual cost of $0.5 million 10 Board's INEFFECTIVE Strategic Planning Committee ================================================================================ o Responsible for meeting with CEO and other officers to o Develop a multi-year strategic plan o Review the strategic plan o Dismal fact pattern o Robert Goddard has no prior multifamily experience o Ronald de Waal lives in Belgium; travels to U.S. infrequently o Only met three times in 2002 o No plan was ever distributed to Board o We believe the Company lacks clear strategic direction and outlook o Arthur Blank recently resigned 11 Conclusions ================================================================================ o We believe Post's current Board is not committed to enhancing value for PPS Shareholders o We believe Post's current management team is not qualified to manage in the current environment o Current Chairman and CEO have inadequate multi-family REIT operating experience o No effective strategic plan o No effective operating plan o Repeatedly ignored John Williams' suggestions to improve operating performance and enhance shareholder value o Failed to take actions to benefit all PPS Shareholders o Post's poor 2002 results, combined with the Board's refusal to persue the recent offer, confirm the facts and support these conclusions 12 RECENT OPERATING RESULTS AND SHAREHOLDER RETURNS 2002 - POOR OPERATING RESULTS ================================================================================ [box with the word 'LAST' superimposed over each of the charts below]
Same Store Revenue Growth Same Store NOI Growth - ------------------------- --------------------- 1 Home Properties 4.1% 1 Home Properties 3.6% 2 Town and Country 2.7 2 Town and Country 0.3 3 United Dominion Realty (0.2) 3 United Dominion Realty (0.8) 4 Archstone-Smith (0.4) 4 Apartment Inv & Mgmt Co (1.6) 5 Mid-America Apartment (0.6) 5 Archstone-Smith (2.7) 6 Apartment Inv & Mgmt Co (0.7) 6 Mid-America Apartment (3.0) 7 Gables Residential (1.4) 7 Equity Residential (4.6) 8 Camden Property (2.6) 8 Camden Property (4.7) 9 Equity Residential (2.6) 9 Gables Residential (4.7) 10 BRE Properties (3.0) 10 BRE Properties (5.0) 11 Cornerstone Realty (3.4) 11 AMLI Residential Properties (6.9) 12 AMLI Residential Properties (4.3) 12 Essex Property (8.3) 13 Summit Properties (4.9) 13 Cornerstone Realty (8.7) 14 Essex Property (5.3) 14 Summit Properties (8.8) 15 AvalonBay Communities (6.1) 15 AvalonBay Communities (9.9) 16 POST PROPERTIES (6.8) 16 POST PROPERTIES (10.1) - ----------------------------------- ---------------------------------- Peer Group Average (1.9%) Peer Group Average (4.4%)
Note: Post Properties' peer group consists of all publicly traded multifamily REITs listed by the National Association of Real Estate Investment Trusts (NAREIT) with equity market capitalizations greater than $250 million. Source: Public filings. 13 2002 - POOR OPERATING RESULTS ================================================================================ [box with the words 'THIRD TO LAST' superimposed over the first chart and the word 'LAST' superimposed over the second chart below]
Same Store Occupancy G&A Expense Margin - ------------------------- --------------------- 1 Archstone-Smith 95.8% 1 Apartment Inv & Mgmt Co 1.3% 2 Essex Property 94.6 2 AvalonBay Communities 2.2 3 BRE Properties 94.3 3 Equity Residential 2.3 4 Gables Residential 93.7 4 Cornerstoen Realty 2.4 5 AvalonBay Communities 93.5 5 Mid-America Apartment 2.9 6 Equity Residential 93.5 6 Gables Residential 3.1 7 Summit Properties 93.4 7 Essex Property 3.1 8 Town and Country 93.4 8 Home Properties 3.2 9 United Dominion Realty 93.3 9 United Dominion Realty 3.2 10 Camden Property 92.2 10 BRE Properties 3.4 11 Home Properties 92.0 11 Camden Property 3.5 12 Mid-America Apartment 91.7 12 Summit Properties 3.8 13 Apartment Inv & Mgmt Co 91.1 13 Archstone-Smith 4.0 14 POST PROPERTIES 90.9 14 Town & Country 4.0 15 AMLI Residential Properties 90.8 15 AMLI Residential Properties 4.3 16 Cornerstone Realty 89.2 16 POST PROPERTIES 4.4 - ----------------------------------- ---------------------------------- Peer Group Average 92.8% Peer Group Average 3.1%
Note: Post Properties' peer group consists of all publicly traded multifamily REITs listed by the National Association of Real Estate Investment Trusts (NAREIT) with equity market capitalizations greater than $250 million. Source: Public filings. 14 2002 - POOR OPERATING RESULTS BY MARKET ================================================================================ [box with the words 'THIRD TO LAST' superimposed over the first chart, box with the words "THIRD TO LAST" superimposed on the second chart, and box with the word 'LAST' superimposed over the third chart below] Same Store Revenue Growth
Atlanta Dallas Tampa ------- ------ ----- 1 Summit Properties (5.3%) 1 Gables Residential (1.8%) 1 Apartment Inv & Mgmt Co 2.1% 2 Gables Residential (6.1) 2 Cornerstone Relaty (2.5) 2 Camden Property Trust 0.2 3 AMLI Residential Properties (7.2) 3 Summit Properties (2.6) 3 Equity Residential 0.2 4 United Dominion (7.2) 4 AMLI Residential Properties (2.9) 4 United Dominion (2.3) 5 Equity Residential (7.7) 5 Equity Residential (2.9) 5 POST PROPERTIES (2.5) 6 POST PROPERTIES (8.1) 6 United Dominion (2.9) 7 Cornerstone Realty (8.2) 7 POST PROPERTIES (4.3) 8 Apartment Inv & Mgmt Co (9.3) 8 Apartment Inv & Mgmt Co (5.9) 9 Camden Property Trust (7.4) - ------------------------------------ ---------------------------------- --------------------------------- Peer Group Average (7.3%) Peer Group Average (3.6%) Peer Group Average 0.1%
Source: Public filings. 15 DISMAL SHAREHOLDER RETURNS ================================================================================ 2002 Stock Price Performance [Bar graph depicting the declining stock price performances of the companies listed below} [box with the word 'LAST' superimposed over the chart below] United Dominion 12.7% Home Properties 8.7% Essex Property 3.1% BRE Properties 0.6% Town and Country 0.5% Mid-America Apartment (6.9%) Camden Property (9.5%) Archstone-Smith (10.3%) Equity Residential (14.5%) AMLI Residential (15.3%) Gables Properties (16.6%) AvalonBay (16.9%) Apartment Inv & Mgmt Co (17.4%) Summit Properties (29.2%) Cornerstone Realty (30.5%) Post Properties (32.8%) Source: Based on information published by Bloomberg L.P. 16 DISMAL SHAREHOLDER RETURNS ================================================================================ 2002 Total Returns [Bar graph depicting the declining stock price performances of the companies listed below} [box with the word 'LAST' superimposed over the chart below] United Dominion 21.4% Home Properties 16.8% Essex Property 9.4% Town and Country 8.8% BRE Properties 7.0% Mid-America Apartment 2.2% Camden Property (2.9%) Archstone-Smith (4.0%) AMLI Residential (8.1%) Equity Residential (8.8%) Gables Properties (9.2%) Apartment Inv & Mgmt Co (10.8%) AvalonBay (11.5%) Cornerstone Realty (22.2%) Summit Properties (22.9%) Post Properties (25.2%) Source: Based on information published by Bloomberg L.P. 17 ACTION PLAN TO RESTORE VALUE AND INVESTOR CONFIDENCE ACTION PLAN ================================================================================ o Elect a slate of independent, better qualified directors
Our Director Nominees Their Director Nominees* - ------------------------------------------------------------------------------------------------------------------------------------ Yrs.of Yrs. of Nominee RE Exp. Prior Experience Nominee RE Exp. Prior Experience - ------------------------------------------------------------------------------------------------------------------------------------ George R. 36 Chairman, Lend Lease Real Estate Robert C. 15 Chairman & CEO, Goddard Investment Puskar Chairman & CEO, Equitable Real Goddard Group Estate Investment Mgmt Chairman & CEO, NAI/Brannen Goddard Director Nominee, New Plan Excel Company Director, I-Star Financial NO PUBLIC COMPANY EXPERIENCE Director, CarrAmerica NO MULTIFAMILY EXPERIENCE Director, NRC, ICSC, NACREIF, ULI - ------------------------------------------------------------------------------------------------------------------------------------ Roy E. 25 Immediate Past Governor of Georgia Herschel 9 Partner, King & Spalding Barnes Former Georgia State Representative M. Bloom Director of Russell Corp. Founder, Efficiency Lodge Hotel Company K&S IS COMPANY COUNSEL Founder, Cobb Savings and Loan Assoc. - ------------------------------------------------------------------------------------------------------------------------------------ Francis L. 40 EVP Manufacturers Hanover Trust Company Ronald de 3 Chairman, We International b.v. Bryant, Jr. Officer-In-Charge of RE Division, Waal Director of Saks Inc, and The Body Shop Manufacturers Corporation LIVES IN BELGIUM RE Adv. Cmte., NY State Comm. Ret. NO MULTIFAMILY EXPERIENCE Fund (24 years) Founding Member, Wharton School RE Center Director, Pru. Realty Trust, RE Board of NY, ULI - ------------------------------------------------------------------------------------------------------------------------------------ Paul J. 31 President, Lend Lease Real Estate Investments Russell R. 10 General Partner, Moseley & Co. Dolinoy SVP, Equitable Real Estate French VENTURE CAPITALIST Chairman, JP Morgan US Real Estate Fund NO MULTIFAMILY EXPERIENCE Director, NYSTRS Real Estate Advisory Cmte. FORMER PARTNER, K&S - ------------------------------------------------------------------------------------------------------------------------------------ Thomas J.A. 30 Head of Mortgage Lending, MetLife David P. 8 EVP, Duke Realty Corp. Lavin Head of RE Debt Origination, Citicorp Stockert SVP & CFO, Weeks Corp. Securities FORMER INVESTMENT BANKER Head of Real Estate Investment Banking, Smith NO MULTIFAMILY EXPERIENCE Barney and First Boston - ------------------------------------------------------------------------------------------------------------------------------------ * Information derived from Post Properties' 2003 Proxy Statement.
18 ACTION PLAN ================================================================================ o Establish shareholder-friendly governance o Eliminate staggered board o Create a Special Committee of independent directors to OBJECTIVELY evaluate ALL strategic alternatives o Require shareholder approval for grant of options and restricted stock to CEO and any other directors o Prohibit the board from adopting a shareholder rights plan (poison pill) without receiving shareholder approval o Prohibit the board from opting into Georgia's anti-takeover statutes without prior shareholder approval o Modify the Company's certificate of incorporation to allow investors who meet certain criteria designed to preserve the Company's REIT status to accumulate larger stakes in Post o Explore ALL alternatives to enhance shareholder value 19 ACTION PLAN ================================================================================ o Replace senior management o Chairman: George Puskar vs. Robert Goddard o CEO: John Williams vs. David Stockert
OUR TEAM THEIR TEAM* ----------------------|-----------| --------------------------|---------| Puskar Williams | Total | Goddard Stockert | Total | ----------------------------------| -----------------------------------| Years of Real Estate Exp. 36 37 | 73 | 15 8 | 23 | | | | | Years of Multifamily Exp. 36 37 | 73 | 0 2 | 2 | | | | | Years of CEO/Pres. Exp. 16 32 | 48 | 15 1 | 16 | | | | | Other Public Company 3 3 | 6 | 0 0 | 0 | Directorships | | | | | | | | Ownership Interest (Shares) 3,000 2,887,815 | 2,890,815 | 26,141 141,116 | 167,257 | ----------- ---------
o REVIEW OF SENIOR OFFICERS ------------------------------------------------------------- | Whose interests are better aligned with shareholders? | | Which team is better equipped? | ------------------------------------------------------------- * Information derived from Post Properties' 2003 Proxy Statement. 20 ACTION PLAN ================================================================================ o Establish active Strategic Planning Committee o Will meet monthly until the Company's operating performance is acceptable o Proposed members include - George Puskar - John Williams - One additional director will be invited o Over 100 years of combined multifamily experience 21 ACTION PLAN ================================================================================ o Re-establish Post corporate culture and brand image o Highest and consistent level of training and on-site quality control o Promote from within o Uniform procedures o Commitment to customer satisfaction o Fix yield management problems o Rate o Occupancy o Expenses o Establish proper incentives 22 ACTION PLAN ================================================================================ o Establish improved criteria for asset sales and use of proceeds o Active Board oversight o Proper incentive fee arrangements with brokers o Repurchase stock on leverage neutral basis o Undertake appropriate G&A cuts ---------------------------------------------------------------------------- | | | Sign the GOLD CARD & | | Restore Value and Investor Confidence | | | | | ---------------------------------------------------------------------------- 23 -----END PRIVACY-ENHANCED MESSAGE-----