-----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, QHeYgrpZnTQlNj9a+t9M67CBbUTcwyBl6KimBZusnVvGMyWNrkGnN3lN8ace5DEf +OFRGbOdxtKtqtxlqRcvzg== 0000950144-00-006010.txt : 20000509 0000950144-00-006010.hdr.sgml : 20000509 ACCESSION NUMBER: 0000950144-00-006010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000504 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000508 FILER: 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: 8-K SEC ACT: SEC FILE NUMBER: 001-12080 FILM NUMBER: 622235 BUSINESS ADDRESS: STREET 1: ONE RIVERSIDE STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 BUSINESS PHONE: 4048465000 MAIL ADDRESS: STREET 1: ONE RIVERSIDE STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POST APARTMENT HOMES LP CENTRAL INDEX KEY: 0001012271 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 582053632 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-28226 FILM NUMBER: 622236 BUSINESS ADDRESS: STREET 1: ONE RIVERSIDE 4401 NORTHSIDE PARKWAY STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 BUSINESS PHONE: 7708504400 MAIL ADDRESS: STREET 1: ONE RIVERSIDE 4401 NORTHSIDE PARKWAY STREET 2: SUITE 800 CITY: ATLANTA STATE: GA ZIP: 30327 8-K 1 POST PROPERTIES, INC. / POST APARTMENT HOMES, L.P. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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): May 4, 2000 -------------- 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) Registrant's telephone number, including area code: (404) 846-5000 --------------- Not applicable -------------- (Former Name or Former Address, if Changed Since Last Report) 2 Item 5. Other Events Post Properties, Inc. and Post Apartment Homes, L.P. are filing this Current Report on Form 8-K to file with the Securities and Exchange Commission certain items that are to be incorporated by reference in their Registration Statement on Form S-3 (Registration No. 333-36595). Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits 12.1 Statement Regarding Computation of Earnings to Fixed Charges 99.1 Supplemental Information 2 3 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. Date: May 8, 2000 POST PROPERTIES, INC. By: /s/ R. Gregory Fox ----------------------------------- R. Gregory Fox Executive Vice President and Chief Accounting Officer 3 4 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. Date: May 8, 2000 POST APARTMENT HOMES, L.P. By: Post GP Holdings, Inc., as General Partner By: /s/ R. Gregory Fox ------------------------------------- R. Gregory Fox Executive Vice President and Chief Accounting Officer 4 5 EXHIBIT INDEX
Exhibit - ------- 12.1 Statement Regarding Computation of Earnings to Fixed Charges 99.1 Supplemental Information
5 EX-12.1 2 STATEMENT RE: COMPUTATION OF EARNINGS 1 EXHIBIT 12.1 POST PROPERTIES, INC.(1) COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, ----------------------------------------------------------------------------------- 1999 1998 1997 1996 1995 ---------- ---------- ---------- ---------- ---------- Pre-tax income (loss) from continuing operations $ 104,975(2) $ 88,950 $ 54,947(2) $ 43,469(2) $ 29,988(2) Minority interest in the income of subsidiary with fixed charges 12,598 11,511 11,131 9,984 8,429 ---------- ---------- ---------- ---------- ---------- 117,573 100,461 66,078 53,453 38,417 ---------- ---------- ---------- ---------- ---------- Fixed Charges: Interest incurred and amortization of debt discount and premium on all indebtedness 56,105 48,189 35,205 27,916 29,714 Rentals - 33.34%(3) 2,385 2,220 1,686 939 405 ---------- ---------- ---------- ---------- ---------- Total fixed charges 58,490 50,409 36,891 28,855 30,119 ---------- ---------- ---------- ---------- ---------- Earnings before income taxes, minority interest and fixed charges 176,063 150,870 102,969 82,308 68,536 Adjustment for capitalized interest (21,417) (15,707) (9,567) (4,443) (5,653) ---------- ---------- ---------- ---------- ---------- Total earnings $ 154,646 $ 135,163 $ 93,402 $ 77,865 $ 62,883 ========== ========== ========== ========== ========== Ratio of Earnings to Fixed Charges 2.6 2.7 2.5 2.7 2.1 ========== ========== ========== ========== ==========
(1) The ratio of earnings to fixed charges is the same for Post Apartment Homes, L.P. (2) Included in the pre-tax income from continuing operations for 1999, 1997, 1996 and 1995 was a non-recurring (loss)/gain of ($1,522), $3,270, $854 and $1,746, respectively, relating to the sale of real estate assets as disclosed in the Company's consolidated financial statements. If such sales had not occurred, the ratio of earnings to fixed charges would have been 2.7, 2.5, 2.7 and 2.0 for 1999, 1997, 1996 and 1995, respectively. (3) The interest factor of rental expense is calculated as one-third of the rental expense which represents an appropriate interest factor. EX-99.1 3 SUPPLEMENTAL INFORMATION 1 EXHIBIT 99.1 SUPPLEMENTAL INFORMATION SELECTED FINANCIAL INFORMATION The following unaudited financial information of Post Apartment Homes, L. P. (the "Operating Partnership") as of and for the three month period, ended March 31, 2000 and 1999 has been prepared by the Operating Partnership's management in accordance with generally accepted accounting principles ("GAAP") for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three month period ended March 31, 2000 are not necessarily indicative of the results that may be expected for the full year. This financial information should be read in conjunction with the Operating Partnership's audited financial statements and notes thereto included in the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 1999.
Three months ended March 31, -------------------------- 2000 1999 ---------- ---------- (Dollars in thousands, except per unit data) (Unaudited) OPERATING DATA Revenue: Rental - owned properties ................................. $ 87,825 $ 75,585 Property management - third party ......................... 908 871 Landscape services - third party .......................... 2,102 1,730 Interest .................................................. 539 65 Other ..................................................... 4,069 2,641 ---------- ---------- Total revenue ..................................... 95,443 80,892 ---------- ---------- Property operating and maintenance expenses - owned properties ............................................... 30,651 26,369 Depreciation expense ......................................... 17,005 12,710 Property management expenses - third party ................... 788 719 Landscape services expenses - third party .................... 2,005 1,660 Interest expense ............................................. 10,701 7,217 Amortization of deferred loan costs .......................... 385 336 General and administrative expenses .......................... 2,497 2,383 Minority interest in consolidated property partnerships ...... (555) 92 ---------- ---------- 63,477 51,486 ---------- ---------- Net income before net gain (loss) on sale of assets and extraordinary item ....................................... 31,966 29,406 Net gain (loss) on sale of assets ............................ 687 (1,567) ---------- ---------- Net income before extraordinary item ......................... 32,653 27,839 Extraordinary item(1) ........................................ -- (521) ---------- ---------- Net income ...................................................... 32,653 27,318 Distribution to preferred unitholders ........................... (4,369) (2,969) ---------- ---------- Net income available to common unitholders ...................... $ 28,284 $ 24,349 ========== ========== Funds from operations(2) ..................................... $ 43,490 $ 38,754 ========== ========== PER COMMON UNIT DATA Net income before extraordinary item (net of preferred distribution) - basic ................. $ 0.64 $ 0.57 ========== ========== Net income available to common unitholders - basic ........... $ 0.64 $ 0.56 ========== ========== Net income before extraordinary item (net of preferred distribution) - diluted ............... $ 0.63 $ 0.57 ========== ========== Net income available to common unitholders - diluted ......... $ 0.63 $ 0.56 ========== ========== Dividends declared ........................................... $ 0.76 $ 0.70 ========== ==========
March 31, -------------------------- 2000 1999 ---------- ---------- (Dollars in thousands) (Unaudited) BALANCE SHEET DATA Real estate, before accumulated depreciation ................. $2,644,278 $2,327,270 Real estate, after accumulated depreciation .................. 2,328,141 2,068,117 Total assets ................................................. 2,419,931 2,141,868 Total debt ................................................... 1,046,847 869,881 Partners' equity ............................................. 1,255,375 1,172,259 KEY DEBT STATISTICS Total secured debt ........................................... $ 414,847 $ 331,881 Total unsecured debt ......................................... 632,000 538,000 Interest coverage ratio(3)(4) ................................ 5.6x 6.9x Fixed charge coverage ratio(3)(5) ............................ 4.0x 4.9x Total debt as a % of undepreciated real estate ............... 39.6% 37.4%
NOTES TO SELECTED FINANCIAL INFORMATION (1) - The extraordinary item for the three months ended March 31, 1999 resulted from the costs associated with the early extinguishment of indebtedness. (2) - The Operating Partnership uses the National Association of Real Estate Investment Trust ("NAREIT") definition of Funds from Operations ("FFO"), as described below. (3) - Calculated for the three months ended March 31, 2000 and 1999. (4) - Interest coverage ratio is defined as net income available for debt service divided by interest expense. For purposes of this calculation, net income available for debt service represents earnings before distributions to preferred unitholders, gain (loss) on sale of assets, interest expense, depreciation, amortization and extraordinary items. (5) - Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus distributions to preferred unitholders. For purposes of this calculation, net income available for debt service represents earnings before distributions to preferred unitholders, gain (loss) on sale of assets, interest expense, depreciation, amortization and extraordinary items. FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION The Operating Partnership believes FFO is a useful measure of performance of an equity real estate investment trust. The Operating Partnership uses the NAREIT definition of FFO, which for any period means the consolidated net income available to common unitholders of the Operating Partnership and its subsidiaries for such period excluding gains or losses from debt restructuring and sales of property, plus depreciation of real estate assets, and after adjustment for unconsolidated partnerships and joint ventures, all determined on a consistent basis in accordance with GAAP. NAREIT's definition of FFO historically excluded items classified by GAAP as extraordinary or unusual and significant non-recurring events that materially distort the comparative measurement of performance over time. Effective January 1, 2000 NAREIT amended its definition of FFO to include in FFO all non-recurring events, except for those that are defined as extraordinary items under GAAP and gains and losses from sales of property. The Operating Partnership adopted this amended definition effective January 1, 2000. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Operating Partnership's financial performance or to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Operating Partnership's liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Operating Partnership's needs. Cash available for distribution ("CAD") is defined as FFO less capital expenditures funded by operations and loan amortization payments. The Operating Partnership believes that in order to facilitate a clear understanding of the consolidated historical operating results of the Operating Partnership, FFO and CAD should be examined in conjunction with net income as presented in the consolidated financial statements included in the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 1999 and the selected financial information included elsewhere in this report. FFO and CAD for the three months ended March 31, 2000 and 1999 are summarized in the following table:
Three months ended March 31, ------------------------------- 2000 1999 ------------ ------------ (Dollars in thousands, except per unit data) NET INCOME AVAILABLE TO COMMON UNITHOLDERS ...................... $ 28,284 $ 24,349 Extraordinary item ......................................... -- 521 Net (gain) loss on sale of assets .......................... (687) 1,567 ------------ ------------ Adjusted net income ............................................. 27,597 26,437 Depreciation on real estate assets, net(1) ...................... 15,893 12,317 ------------ ------------ FUNDS FROM OPERATIONS ........................................... 43,490 38,754 Recurring capital expenditures(2) ............................... (1,938) (1,873) Non-recurring capital expenditures .............................. (830) (554) Loan amortization payments ...................................... (310) (20) ------------ ------------ CASH AVAILABLE FOR DISTRIBUTION ................................. $ 40,412 $ 36,307 ============ ============ Revenue generating capital expenditures(3) ...................... $ 576 $ 1,018 ============ ============
(1) - Depreciation on real estate assets is net of the minority interest portion of depreciation in consolidated partnerships. (2) - Since the Operating Partnership does not add back the depreciation of non-real estate assets in its calculation of FFO, capital expenditures of $912 and $955 for the three months ended March 31, 2000 and 1999, respectively, are excluded from the calculation of CAD. (3) - Primarily comprised of major renovations of communities. 2 CURRENT DEVELOPMENT ACTIVITY Certain information regarding the Operating Partnership's apartment communities under development or in initial lease-up as of April 29, 2000 is set forth in the following table:
ESTIMATED ESTIMATED ESTIMATED QUARTER OF QUARTER OF QUARTER OF CONSTRUCTION FIRST UNITS STABILIZED METROPOLITAN AREA START AVAILABLE OCCUPANCY - -------------------------------------------------------------------- ATLANTA, GA Post Stratford 2Q '99 1Q '00 1Q '01 Post Spring 3Q '99 2Q '00 3Q '01 CHARLOTTE, NC Post Uptown Place 3Q '98 1Q '00 3Q '00 Post Gateway Place 3Q '99 3Q '00 2Q '01 TAMPA, FL Post Harbour Place 4Q '98 2Q '00 1Q '01 DALLAS, TX Post Block 588 4Q '98 1Q '00 2Q '00 Legacy Town Center City Apa 3Q '99 3Q '00 4Q '01 Post Addison Circle III 3Q '99 3Q '00 2Q '01 Uptown Village by Post (II) 3Q '99 2Q '00 4Q '00 HOUSTON, TX Post Midtown Square II 1Q '00 1Q '01 4Q '01 DENVER, CO Post Uptown Square I 1Q '98 3Q '99 4Q '00 Post Uptown Square II 1Q '00 1Q '01 4Q '01 PHOENIX, AZ Post Roosevelt Square 4Q '98 1Q '00 1Q '01 ORLANDO, FL Post Parkside 1Q '99 2Q '99 3Q '00 WASHINGTON D. C. Post Pentagon Row 2Q '99 4Q '00 1Q '02 AUSTIN, TEXAS Post West Avenue Lofts 3Q '99 4Q '00 3Q '01 - --------------------------------------------------------------------
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