EXHIBIT 99.2

Second Quarter 2006

Supplemental Financial Data

Table of Contents

	Page
Consolidated Statements of Operations		3
Calculation of Funds from Operations and Adjusted Funds From Operations		6
Same Store Results		8
Consolidated Balance Sheets		11
Consolidated Debt Summary		12
Summary of Communities Under Construction		15
Summary of Communities Under Rehabilitation		16
Summary of Condominium Conversion Projects		17
Community Acquisition and Disposition Summary		18
Capitalized Costs Summary		19
Investments in Unconsolidated Real Estate Entities		20
Net Asset Value Supplemental Information		22
Non-GAAP Financial Measures and Other Defined Terms		24

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 Company’s actual results to differ materially from the expected results 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 dated December 31, 2005, as amended; future local and national economic conditions, including changes in job growth, interest rates, the availability of financing and other factors; demand for apartments in the Company’s markets and the effect on occupancy and rental rates; the impact of competition on the Company’s business, including competition for tenants and development locations for its apartment communities and competing for-sale housing in the markets where the Company is completing condominium conversions or developing new condominiums; the Company’s ability to obtain financing or self-fund the development or acquisition of additional multifamily rental and for-sale housing; the uncertainties associated with the Company’s current and planned future real estate development, including actual costs exceeding the Company’s budgets or development periods exceeding expectations; uncertainties associated with the timing and amount of asset sales and the resulting gains/losses associated with such asset sales; uncertainties associated with the Company’s condominium conversion and for-sale housing business; conditions affecting ownership of residential real estate and general conditions in the multi-family residential real estate market; uncertainties associated with environmental and other regulatory matters, including the Americans with Disabilities Act and the Fair Housing Act; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission and uncertainties of litigation; and the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the company’s annual report on Form 10-K, as amended, dated December 31, 2005 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K, as amended, under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

Post Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share or unit data)
(Unaudited)

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenues
Rental	$	71,607		$	66,891		$	141,679		$	132,746
Other property revenues		4,604			4,093			8,659			7,653
Other		85			61			151			132
Total revenues		76,296			71,045			150,489			140,531
Expenses
Property operating and maintenance (exclusive of items shown separately below)		34,554			32,754			68,631			65,346
Depreciation		17,031			18,247			33,706			36,612
General and administrative (1)		4,632			4,558			9,058			8,949
Investment, development and other (2)		1,617			984			3,168			2,404
Total expenses		57,834			56,543			114,563			113,311
Operating Income		18,462			14,502			35,926			27,220
Interest income		118			189			238			354
Interest expense		(13,560	)		(14,612	)		(27,266	)		(29,609	)
Amortization of deferred financing costs		(834	)		(1,029	)		(1,769	)		(2,717	)
Gains (losses) on sales of condominiums, net (3)		8,569			(160	)		8,411			(269	)
Equity in income of unconsolidated real estate entities		411			553			724			701
Other income (4)		270			—			1,694			5,267
Minority interest in consolidated property partnerships		(63	)		64			(92	)		178
Minority interest of common unitholders		(247	)		138			(310	)		154
Income (loss) from continuing operations		13,126			(355	)		17,556			1,279
Discontinued operations (5)
Income from discontinued operations, net of minority interest		867			1,176			847			3,880
Gains (losses) on sales of real estate assets, net of minority interest and provision for income taxes		(10	)		58,918			382			59,258
Loss on early extinguishment of indebtedness, net of minority interest (6)		—			(1,296	)		—			(1,296	)
Income from discontinued operations		857			58,798			1,229			61,842
Net income		13,983			58,443			18,785			63,121
Dividends to preferred shareholders		(1,909	)		(1,909	)		(3,819	)		(3,819	)
Net income available to common shareholders	$	12,074		$	56,534		$	14,966		$	59,302
Per common share data — Basic (7)
Income (loss) from continuing operations (net of preferred dividends)	$	0.26		$	(0.06	)	$	0.32		$	(0.06	)
Income from discontinued operations		0.02			1.47			0.03			1.54
Net income available to common shareholders	$	0.28		$	1.42		$	0.35		$	1.48
Weighted average common shares outstanding – basic		42,817			39,930			42,351			40,048
Per common share data — Diluted (7)
Income (loss) from continuing operations (net of preferred dividends)	$	0.26		$	(0.06	)	$	0.32		$	(0.06	)
Income from discontinued operations		0.02			1.47			0.03			1.54
Net income available to common shareholders	$	0.28		$	1.42		$	0.35		$	1.48
Weighted average common shares outstanding – diluted		43,518			39,930			43,089			40,048
Dividends declared	$	0.45		$	0.45		$	0.90		$	0.90

3

Post Properties, Inc.
Notes to Consolidated
Statements of Operations
(In thousands, except per share or unit data)

(1)	Beginning in the fourth quarter of 2005, the Company reclassified certain expenses previously reported as general and administrative expenses to property operating and maintenance expenses and investment, development and other expenses on the accompanying statements of operations. Prior period amounts have been reclassified to conform to this presentation. The reclassified expenses primarily included certain investment group functions and long-term, stock-based compensation and benefits expenses associated with property management and investment and development group activities.
(2)	Investment, development and other expenses for the three and six months ended June 30, 2006 and 2005 include investment group expenses, development personnel and associated costs not allocable to current development projects.
(3)	In the three and six months ended June 30, 2006, income from continuing operations included net gains from condominium sales activities at condominium conversion projects representing portions of existing communities. In addition, condominium gains are net of certain expensed sales and marketing costs associated with new condominium communities under development totaling $167 and $160 for the three months and $289 and $269 for the six months ended June 30, 2006 and 2005, respectively. Net gains from condominium sales activities at other consolidated community conversion projects are included in discontinued operations under generally accepted accounting principles (see (5) below). A summary of revenues and costs and expenses of condominium activities included in continuing operations for the three and six months ended June 30, 2006 and 2005 was as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Condominium revenues	$	18,463		$	—		$	18,463		$	—
Condominium costs and expenses		(9,894	)		(160	)		(10,052	)		(269	)
Gains (losses) on sales of condominium, net	$	8,569		$	(160	)	$	8,411		$	(269	)

(4)	In the three months ended March 31, 2006, one of the Company’s derivative financial instruments, previously accounted for as a cash flow hedge, became ineffective under generally accepted accounting principles. As a result, the net increase in the market value of this derivative prior to its termination in April 2006 totaling $233 and $1,655, respectively, in the three and six months ended June 30, 2006 was recognized in the consolidated statements of operations as other income. In April 2006, the Company terminated the ineffective derivative instrument and entered into a new cash flow hedge which is expected to eliminate the future income statement volatility of the instrument. In the six months ended June 30, 2005, the Company sold its investment in Rent.com, a privately-held internet leasing company, and recognized a gain of $5,267.
(5)	Under SFAS No. 144, the operating results of real estate assets designated as held for sale are included in discontinued operations for all periods presented. Additionally, all subsequent gains or additional losses on the sale of these assets are included in discontinued operations.
	For the three and six months ended June 30, 2006, income from discontinued operations included the operating results of one apartment community, containing 696 units, and one condominium conversion community classified as held for sale at June 30, 2006. For the three and six months ended June 30, 2005, income from discontinued operations included the operating results of one apartment community and one condominium conversion community classified as held for sale at June 30, 2006, six communities sold in 2005 and one condominium conversion community through its sell-out date in 2005.

4

The operating revenues and expenses of these communities for the three and six months ended June 30, 2006 and 2005 were as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenues
Rental	$	1,932		$	6,708		$	3,866		$	15,564
Other property revenues		252			649			469			1,502
Total revenues		2,184			7,357			4,335			17,066
Expenses
Property operating and maintenance (exclusive of items shown separately below)		694			3,519			1,469			7,452
Depreciation		—			1,166			781			2,334
Interest		604			1,426			1,219			3,151
Minority interest in consolidated property partnerships		—			—			—			14
Total expenses		1,298			6,111			3,469			12,951
Income from discontinued operations before minority interest		886			1,246			866			4,115
Minority interest		(19	)		(70	)		(19	)		(235	)
Income from discontinued operations	$	867		$	1,176		$	847		$	3,880

For the three and six months ended June 30, 2006 and 2005, gains on sales of real estate assets included in discontinued operations represent net gains from condominium sales at two condominium conversion communities. A summary of revenues and costs and expenses of condominium activities included in discontinued operations for the three and six months ended June 30, 2006 and 2005 was as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Condominium revenues	$	3,522		$	34,600		$	6,518		$	38,106
Condominium costs and expenses		(3,532	)		(21,447	)		(6,127	)		(24,594	)
Gains (losses) on condominium sales, before minority interest and income taxes		(10	)		13,153			391			13,512
Minority interest		—			(728	)		(9	)		(748	)
Provision for income taxes		—			(383	)		—			(383	)
Gains (losses) on condominium sales, net of minority interest and income taxes	$	(10	)	$	12,042		$	382		$	12,381

	For the three and six months ended June 30, 2005, the Company recognized net gains in discontinued operations of $49,710 ($46,876 net of minority interest) from the sale of five communities, containing 1,309 units. The sales generated net proceeds of approximately $97,900, including $34,060 of tax-exempt secured indebtedness assumed by the purchasers.
(6)	For the three and six months ended June 30, 2005, the loss on early extinguishment of indebtedness includes the write-off of unamortized deferred costs of $966 ($911, net of minority interest) relating to tax-exempt indebtedness assumed in connection with the sale of two properties in May 2005, plus a loss of $408 ($385, net of minority interest) in connection with the termination of related interest rate cap agreements that were used as cash flow hedges of the assumed debt.
(7)	Post Properties, Inc. is structured as an UPREIT, or Umbrella Partnership Real Estate Investment Trust. Post GP Holdings, Inc., a wholly owned subsidiary of the Company, is the sole general partner and, together with Post LP Holdings, Inc., owns the controlling interest in Post Apartment Homes, L.P., the Operating Partnership through which the Company conducts its operations. As of June 30, 2006, there were 43,919 units of the Operating Partnership outstanding, of which 43,205, or 98.4%, were owned by the Company. For the three and six months ended June 30, 2005, the potential dilution from the Company’s outstanding stock options and awards of 250 and 236, respectively, was antidilutive to the continuing operations per share calculation. As such, these amounts were excluded from weighted average shares and units and the income (loss) per share calculations for the three and six months ended June 30, 2005.

5

Post Properties, Inc.
Calculation of Funds from Operations
and Adjusted Funds From Operations Available
to Common Shareholders and Unitholders
(In thousands, except per share or unit data)
(Unaudited)

A reconciliation of net income available to common shareholders to funds from operations available to common shareholders and unitholders and adjusted funds from operations available to common shareholders and unitholders is provided below.

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Net income available to common shareholders	$	12,074		$	56,534		$	14,966		$	59,302
Minority interest of common unitholders – continuing operations		247			(138	)		310			(154	)
Minority interest in discontinued operations (1)		19			3,554			28			3,737
Depreciation on wholly-owned real estate assets, net (2)		16,423			18,636			33,256			37,385
Depreciation on real estate assets held in unconsolidated entities		226			224			451			521
Gains on sales of real estate assets, net of provision for income taxes		(8,559	)		(62,320	)		(8,802	)		(62,570	)
Incremental gains on condominium sales, net of provision for income taxes (3)		1,809			5,811			2,052			6,061
Gains on sales of real estate assets – unconsolidated entities		(48	)		(201	)		(73	)		(201	)
Incremental gains (losses) on condominium sales – unconsolidated entities (3)		(43	)		35			(91	)		35
Funds from operations available to common shareholders and unitholders, as defined (A)		22,148			22,135			42,097			44,116
Gain on sale of technology investment		—			—			—			(5,267	)
Loss on early extinguishment of indebtedness associated with property sales		—			1,374			—			1,374
Funds from operations available to common shareholders and unitholders, excluding certain items and charges (B)	$	22,148		$	23,509		$	42,097		$	40,223
Funds from operations available to common shareholders and unitholders, as defined	$	22,148		$	22,135		$	42,097		$	44,116
Annually recurring capital expenditures		(3,860	)		(2,864	)		(5,914	)		(4,822	)
Periodically recurring capital expenditures		(1,599	)		(1,127	)		(2,322	)		(2,029	)
Straight-line adjustment for ground lease expenses		310			314			619			631
Adjusted funds from operations available to common shareholders and unitholders (4) (C)		16,999			18,458			34,480			37,896
Gain on sale of technology investment		—			—			—			(5,267	)
Loss on early extinguishment of indebtedness associated with property sales		—			1,374			—			1,374
Adjusted funds from operations available to common shareholders and unitholders, excluding certain items and charges (4) (D)	$	16,999		$	19,832		$	34,480		$	34,003
Per Common Share Data – Basic
Funds from operations per share or unit, as defined (A÷F)	$	0.51		$	0.52		$	0.97		$	1.04
Adjusted funds from operations per share or unit (4) (C÷F)	$	0.39		$	0.44		$	0.80		$	0.89
Funds from operations per share or unit, excluding certain items and charges (B÷F)	$	0.51		$	0.56		$	0.97		$	0.95
Adjusted funds from operations per share or unit, excluding certain items and charges (4) (D÷F)	$	0.39		$	0.47		$	0.80		$	0.80
Dividends declared (E)	$	0.45		$	0.45		$	0.90		$	0.90
Weighted average shares outstanding		42,817			39,930			42,351			40,048
Weighted average shares and units outstanding (F)		43,687			42,325			43,313			42,469

6

	Three months ended				Six months ended
	June 30,				June 30,
	2006		2005		2006		2005
Per Common Share Data – Diluted
Funds from operations per share or unit, as defined (A÷G)	$	0.50	$	0.52	$	0.96	$	1.03
Adjusted funds from operations per share or unit (4) (C÷G)	$	0.38	$	0.43	$	0.78	$	0.89
Funds from operations per share or unit, excluding certain items and charges (B÷G)	$	0.50	$	0.55	$	0.96	$	0.94
Adjusted funds from operations per share or unit, excluding certain items and charges (4) (D÷G)	$	0.38	$	0.47	$	0.78	$	0.80
Dividends declared (E)	$	0.45	$	0.45	$	0.90	$	0.90
Weighted average shares outstanding (5)		43,518		40,180		43,089		40,284
Weighted average shares and units outstanding (5) (G)		44,389		42,575		44,051		42,705

(1)	Represents the minority interest in earnings and gains on sales of real estate assets reported as discontinued operations for the periods presented.
(2)	Depreciation on wholly-owned real estate assets is net of the minority interest portion of depreciation in consolidated entities.
(3)	The Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeds the greater of their fair value or net book value as of the date the property is acquired by the Company’s taxable REIT subsidiary. See page 17 for further detail.
(4)	Since the Company does not add back the depreciation of non-real estate assets in its calculation of funds from operations, non-real estate related capital expenditures of $487 and $278 for the three months and $983 and $978 for the six months ended June 30, 2006 and 2005, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.
(5)	Diluted weighted average shares and units include 250 and 236 shares and units, respectively, for the three and six months ended June 30, 2005 that were antidilutive to the income (loss) per share computations under generally accepted accounting principles.

7

Post Properties, Inc.
Same Store Results
(In thousands, except per share or unit data)
(Unaudited)

Same Store Results

The Company defines fully stabilized or same store communities as those which have reached stabilization prior to the beginning of the previous calendar year, adjusted by communities sold, under rehabilitation and classified as held for sale. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 26 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 51 communities containing 18,787 apartment units which were fully stabilized as of January 1, 2005, is summarized as follows:

	Three months ended							Six months ended
	June 30,							June 30,
	2006		2005		% Change			2006		2005		% Change
Rental and other revenues	$	64,893	$	61,284		5.9	%	$	128,233	$	121,484		5.6	%
Property operating and maintenance expenses (excluding depreciation and amortization)		24,829		23,592		5.2	%		49,126		47,359		3.7	%
Same store net operating income	$	40,064	$	37,692		6.3	%	$	79,107	$	74,125		6.7	%
Capital expenditures (1)
Annually recurring:
Carpet	$	966	$	723		33.6	%	$	1,676	$	1,311		27.8	%
Other		2,402		1,512		58.9	%		3,647		2,413		51.1	%
Total annually recurring		3,368		2,235		50.7	%		5,323		3,724		42.9	%
Periodically recurring		859		605		42.0	%		1,272		1,086		17.1	%
Total capital expenditures (A)	$	4,227	$	2,840		48.8	%	$	6,595	$	4,810		37.1	%
Total capital expenditures per unit (A ÷ 18,787 units)	$	225	$	151		49.0	%	$	351	$	256		37.1	%
Average monthly rental rate per unit (2)	$	1,131	$	1,087		4.0	%	$	1,121	$	1,083		3.5	%

(1)

See Table 3 on page 29 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 on the consolidated cash flow statements prepared under GAAP.

(2)

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. Beginning in the fourth quarter of 2005, the Company adjusted its stated market rents at the majority of its communities to be more reflective of current market conditions. The impact of this change is estimated to have reduced the average monthly rental rate per unit by less than 1% for the three and six months ended June 30, 2006.

8

Same Store Operating Results by Market –
Comparison of 2006 to 2005
(Increase (decrease) from same period in prior year)

	Three months ended												Six months ended
	June 30, 2006												June 30, 2006
										Average												Average
										Economic												Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy			Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		3.5	%		7.2	%		1.3	%		1.4	%		3.3	%		4.3	%		2.6	%		1.4	%
Dallas		5.3	%		6.7	%		4.1	%		0.4	%		5.2	%		5.6	%		5.0	%		0.5	%
Tampa		9.6	%		0.2	%		16.0	%		1.2	%		9.0	%		(0.3	)%		15.2	%		1.4	%
Washington, DC		6.6	%		2.5	%		8.8	%		0.1	%		5.9	%		1.4	%		8.4	%		—
Charlotte		7.8	%		13.4	%		5.2	%		0.1	%		8.5	%		7.8	%		8.8	%		1.8	%
Houston		13.7	%		(0.4	)%		31.3	%		8.4	%		11.3	%		0.5	%		23.9	%		7.4	%
New York		9.8	%		(3.2	)%		15.5	%		0.9	%		9.6	%		7.4	%		10.7	%		1.0	%
Orlando		11.0	%		6.5	%		14.2	%		(3.6	)%		10.4	%		0.9	%		18.0	%		(0.9	)%
Total		5.9	%		5.2	%		6.3	%		1.3	%		5.6	%		3.7	%		6.7	%		1.3	%

(1) See Table 2 on page 27 for a reconciliation of these components of same store net operating income and Table 1 on page 26 for a reconciliation of same store net operating income to GAAP net income.

Same Store Occupancy by Market

						Average Economic						Average Economic
			% of NOI			Occupancy (1)						Occupancy (1)						Physical
			Three months ended			Three months ended						Six months ended						Occupancy
	Apartment		June 30,			June 30,						June 30,						at June 30,
Market	Units		2006			2006			2005			2006			2005			2006 (2)
Atlanta		9,110		42.8	%		94.2	%		92.8	%		94.1	%		92.7	%		94.9	%
Dallas		3,607		15.3	%		94.0	%		93.6	%		93.8	%		93.3	%		94.7	%
Tampa		1,883		10.9	%		97.4	%		96.2	%		98.3	%		96.9	%		96.5	%
Washington, DC		1,703		13.9	%		97.7	%		97.6	%		97.3	%		97.3	%		97.9	%
Charlotte		1,065		6.0	%		96.6	%		96.5	%		96.3	%		94.5	%		96.7	%
Houston		837		3.5	%		94.7	%		86.3	%		95.2	%		87.8	%		94.7	%
New York		337		6.1	%		96.5	%		95.6	%		96.4	%		95.4	%		95.8	%
Orlando		245		1.5	%		96.0	%		99.6	%		97.5	%		98.4	%		96.3	%
Total		18,787		100.0	%		95.3	%		94.0	%		95.2	%		93.9	%		95.4	%

(1)

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 94.5% and 93.0% for the three months ended June 30, 2006 and 2005, respectively, and 94.5% and 92.9% for the six months ended June 30, 2006 and 2005, respectively. For the three months ended June 30, 2006 and 2005, net concessions were $324 and $496, respectively, and employee discounts were $177 and $143, respectively. For the six months ended June 30, 2006 and 2005, net concessions were $611 and $952, respectively, and employee discounts were $348 and $287, respectively. Beginning in the fourth quarter of 2005, the Company adjusted its stated market rents at the majority of its communities to be more reflective of current market conditions. The impact of this change is estimated to have increased the computed average economic occupancy amounts by less than 1% for the three and six months ended June 30, 2006.

(2)

Physical occupancy is defined as the number of units occupied divided by total apartment units, expressed as a percentage.

9

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Same Store Sequential Comparison

	Three months ended			Three months ended
	June 30, 2006			March 31, 2006			% Change
Rental and other revenues	$	64,893		$	63,339			2.5	%
Property operating and maintenance expenses (excluding depreciation and amortization)		24,829			24,296			2.2	%
Same store net operating income (1)	$	40,064		$	39,043			2.6	%
Average economic occupancy		95.3	%		95.2	%		0.1	%
Average monthly rental rate per unit	$	1,131		$	1,111			1.8	%

(1) See Table 2 on page 27 for a reconciliation of these components of same store net operating income and Table 1 on page 26 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 2006 to First Quarter 2006
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		2.4	%		5.5	%		0.6	%		0.2	%
Dallas		2.8	%		1.4	%		4.0	%		0.4	%
Tampa		1.2	%		1.3	%		1.1	%		(1.7	)%
Washington, DC		3.3	%		0.4	%		4.9	%		0.7	%
Charlotte		3.3	%		8.6	%		0.8	%		0.6	%
Houston		1.8	%		2.2	%		1.5	%		(1.0	)%
New York		2.5	%		(21.5	)%		15.4	%		0.2	%
Orlando		(0.3	)%		(3.4	)%		1.9	%		(3.0	)%
Total		2.5	%		2.2	%		2.6	%		0.1	%

(1) See Table 2 on page 27 for a reconciliation of these components of same store net operating income and Table 1 on page 26 for a reconciliation of same store net operating income to GAAP net income.

10

Post Properties, Inc.
Consolidated Balance Sheets
(In thousands, except per share or unit data)

	June 30,			December 31,
	2006			2005
	(Unaudited)
Assets
Real estate assets
Land	$	266,323		$	266,914
Building and improvements		1,747,290			1,789,479
Furniture, fixtures and equipment		203,421			207,497
Construction in progress		83,818			47,005
Land held for future development		113,146			62,511
		2,413,998			2,373,406
Less: accumulated depreciation		(532,340	)		(516,954	)
For-sale condominiums (1)		34,151			38,338
Assets held for sale, net of accumulated depreciation of $18,109 and $0 at June 30, 2006 and December 31, 2005, respectively (2)		88,347			4,591
Total real estate assets		2,004,156			1,899,381
Investments in and advances to unconsolidated real estate entities		20,185			26,614
Cash and cash equivalents		10,543			6,410
Restricted cash		5,005			4,599
Deferred charges, net		13,750			11,624
Other assets		37,685			32,826
Total assets	$	2,091,324		$	1,981,454
Liabilities and shareholders’ equity
Indebtedness	$	1,054,804		$	980,615
Accounts payable and accrued expenses		59,308			53,429
Dividend and distribution payable		19,764			19,257
Accrued interest payable		5,501			5,478
Security deposits and prepaid rents		10,983			9,857
Total liabilities		1,150,360			1,068,636
Minority interest of common unitholders in Operating Partnership		13,587			26,764
Minority interests in consolidated real estate entities		15,374			5,045
Total minority interests		28,961			31,809
Shareholders’ equity
Preferred stock, $.01 par value, 20,000 authorized:
8 1/2 % Series A Cumulative Redeemable Shares, liquidation preference $50 per share, 900 shares issued and outstanding		9			9
7 5/8 % Series B Cumulative Redeemable Shares, liquidation preference $25 per share, 2,000 shares issued and outstanding		20			20
Common stock, $.01 par value, 100,000 authorized:
43,205 and 41,394 shares issued, 43,205 and 41,394 shares outstanding at June 30, 2006 and December 31, 2005, respectively		432			414
Additional paid-in capital		854,106			803,765
Accumulated earnings		62,541			86,315
Accumulated other comprehensive income (loss)		(3,057	)		(4,208	)
Deferred compensation		—			(3,625	)
		914,051			882,690
Less common stock in treasury, at cost, 52 and 44 shares at June 30, 2006 and December 31, 2005, respectively		(2,048	)		(1,681	)
Total shareholders’ equity		912,003			881,009
Total liabilities and shareholders’ equity	$	2,091,324		$	1,981,454

(1)	Consists of two communities, originally containing 349 units, being converted into for-sale condominiums through the Company’s taxable REIT subsidiaries.
(2)	Consists of one community, originally containing 127 units, reflected in discontinued operations, which is being converted into for-sale condominiums through the Company’s taxable REIT subsidiaries and one apartment community, containing 696 units, classified as held for sale during the first quarter of 2006.

11

Post Properties, Inc.
Consolidated Debt Summary
(Dollars in thousands, except per share or unit data)
(Unaudited)

Summary of Outstanding Debt at June 30, 2006

						Weighted Average Rate (1)
			Percentage			Three months ended June 30,
Type of Indebtedness	Balance		of Total			2006		2005
Unsecured fixed rate senior notes	$	585,000		55.5	%	6.4%			6.5%
Secured tax exempt variable rate notes (2)		28,495		2.7	%	4.2%			3.3%
Secured conventional fixed rate notes		363,376		34.4	%	6.3%			6.3%
Secured conventional variable rate note		40,000		3.8	%	6.2%			—
Lines of credit		37,933		3.6	%	5.5%			3.5%
	$	1,054,804		100.0	%		6.3%		5.8%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			Of Total Debt (3)
Total fixed rate debt	$	948,376		89.9	%	6.3
Total variable rate debt		106,428		10.1	%	7.1
Total debt	$	1,054,804		100.0	%	6.4

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
Remainder of 2006	$	28,904		7.4%
2007		158,193		6.4%
2008		44,557		6.2%
2009		75,901		5.5%
2010		226,200	(4)	7.3%
2011 and thereafter		521,049		5.8%
	$	1,054,804

Debt Statistics

	Six months ended
	June 30,
	2006			2005
Interest coverage ratio (5)(6)		2.6	x		2.2	x
Fixed charge coverage ratio (5)(7)		2.3	x		1.9	x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		41.5	%		44.1	%
Total debt and preferred equity as % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (8)		45.2	%		47.9	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended June 30, 2005 are based on the debt outstanding for that period.
(2)	The Company has an interest rate cap arrangement that limits the Company’s exposure to increases in the base rate to 5.00 percent.
(3)	Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.
(4)	Includes outstanding balances on lines of credit of $37,933 maturing in 2010.
(5)	Calculated for the six months ended June 30, 2006 and 2005.
(6)	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 income from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the interest coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and interest expense to consolidated interest expense is included in Table 4 on page 30.
(7)	Fixed charge coverage ratio is defined as net income available for debt service divided by interest expense plus dividends to preferred shareholders and distributions to preferred unitholders. For purposes of this calculation, net income available for debt service represents earnings from continuing operations, before preferred or common minority interest, gains on sales of real estate and investment sales, interest expense, depreciation and amortization. Net income available for debt service was also adjusted for the Company’s share of depreciation and interest expense from unconsolidated entities and interest expense used in the calculation was adjusted to include the Company’s share of interest expense from unconsolidated entities. The calculation of the fixed coverage ratio is a non-GAAP financial measure. A reconciliation of net income available for debt service to income from continuing operations and fixed charges to consolidated interest expense plus preferred dividends to shareholders and preferred distributions to unitholders is included in Table 4 on page 30.
(8)	A computation of the debt ratios is included in Table 5 on page 31.

12

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Financial Debt Covenants — Senior Unsecured Public Notes

	As of
Covenant requirement (1)	June 30, 2006
Consolidated Debt to Total Assets cannot exceed 60%		40	%
Secured Debt to Total Assets cannot exceed 40%		16	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.50/1		3.03	x
Consolidated Income Available for Debt Service Charge must be at least 1.50/1		2.56	x

(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 are detailed below.

	As of
	June 30, 2006
Ratio of Consolidated Debt to Total Assets
Consolidated debt, per balance sheet (A)	$	1,054,804
Total assets, as defined (B) (Table A)	$	2,628,023
Computed ratio (A÷B)		40	%
Required ratio (cannot exceed)		60	%
Ratio of Secured Debt to Total Assets
Secured conventional fixed and variable rate notes	$	403,376
Secured tax exempt variable rate notes		28,495
Total secured debt (C)	$	431,871
Computed ratio (C÷B)		16	%
Required ratio (cannot exceed)		40	%
Ratio of Total Unencumbered Assets to Unsecured Debt
Consolidated debt, per balance sheet (A)	$	1,054,804
Total secured debt (C)		(431,871	)
Total unsecured debt (D)	$	622,933
Total unencumbered assets, as defined (E) (Table A)	$	1,885,550
Computed ratio (E÷D)		3.03	x
Required minimum ratio		1.50	x
Ratio of Consolidated Income Available for Debt Service to Annual Debt Service Charge
Consolidated Income Available for Debt Service, as defined (F) (Table B)	$	148,502
Annual Debt Service Charge, as defined (G) (Table B)	$	57,980
Computed ratio (F÷G) (2)		2.56	x
Required minimum ratio		1.50	x

13

Post Properties, Inc.
Consolidated Debt Summary (cont.)
(Dollars in thousands, except per share or unit data)
(Unaudited)

Table A

Calculation of Total Assets and Total Unencumbered Assets for Public
Debt Covenant Computations

	As of
	June 30, 2006
Total real estate assets	$	2,004,156
Add:
Investments in unconsolidated real estate entities		20,185
Accumulated depreciation		532,340
Accumulated depreciation on assets held for sale		18,109
Other tangible assets		53,233
Total assets for public debt covenant computations		2,628,023
Less:
Encumbered real estate assets		(742,473	)
Total unencumbered assets for public debt covenant computations	$	1,885,550

Table B

Calculation of Consolidated Income Available for Debt Service and
Annual Debt Service Charge for Public Debt Covenant Computations (1)

	Six months ended
	June 30, 2006
Consolidated income available for debt service
Net income	$	18,785
Add:
Minority interests		338
Income before minority interest and provision for income taxes		19,123
Add:
Depreciation		33,706
Depreciation (company share) of assets held in unconsolidated entities		451
Depreciation of discontinued operations		781
Amortization of deferred financing costs		1,769
Interest expense		27,266
Interest expense (company share) of assets held in unconsolidated entities		505
Interest expense of discontinued operations		1,219
Less:
Gains on sales of condominiums, net — continuing operations		(8,411	)
Gains on sales of real estate assets — discontinued operations		(391	)
Gains on sales of real estate assets — unconsolidated entities		(73	)
Other income		(1,694	)
Consolidated income available for debt service	$	74,251
Consolidated income available for debt service (annualized)	$	148,502
Annual debt service charge
Consolidated interest expense	$	27,266
Interest expense (company share) of assets held in unconsolidated entities		505
Interest expense of discontinued operations		1,219
	$	28,990
Annual debt service charge (interest expense annualized)	$	57,980

(1) The actual calculation of these ratios requires the use of annual trailing financial data. These computations reflect annualized 2006 results for comparison and presentation purposes. The computations using annual trailing financial data also reflect compliance with the debt covenants.

14

Post Properties, Inc.
Summary Of Communities Under Construction

Estimated

Estimated

Costs Incurred

Quarter of

Quarter of

Quarter of

Estimated

Units

Number

Construction

as of

Construction

First Units

Stabilized

Units

Quarter

Under

Units

Community

Location

of Units

Cost

June 30, 2006

Start

Available

Occupancy (1)

Leased

Sell-out

Contract

Closed

($ in millions)

($ in millions)

Apartments:

Post Carlyle™

Washington, D.C. Area

205

$

56.5

$

41.7

4Q 2004

4Q 2006

4Q 2007

—

N/A

N/A

N/A

Post Alexander™

Atlanta, GA

307

62.0

10.0

2Q 2006

1Q 2008

1Q 2009

—

N/A

N/A

N/A

Total Apartments

512

$

118.5

$

51.7

—

Weighted average projected property net operating income as a % of total estimated construction cost (3)

6.25% - 6.75

%

Condominiums:

The Condominiums at Carlyle Square™ (2)

Washington, D.C. Area

145

$

43.2

$

28.3

4Q 2004

1Q 2007

N/A

N/A

4Q 2007

90

—

Mercer Square™

Dallas, TX

85

17.0

3.8

2Q 2006

3Q 2007

N/A

N/A

2Q 2008

—

—

Total Condominiums

230

$

60.2

$

32.1

90

—

Weighted average projected pre-tax profit as a % of total estimated construction cost (4)

> 20

%

(1)	The Company defines stabilized occupancy as the earlier to occur of (i) the attainment of 95% physical occupancy on the first day of any month or (ii) one year after completion of construction.
(2)	The condominium component of the project, consisting of 145 units, is being developed in a majority owned joint venture with a Washington D.C. based developer. As of July 24, 2006, the Company has 90 units under contract for sale upon completion and delivery of the units. There can be no assurance that condominium units under contract will close.
(3)	The calculation represents the aggregate projected unlevered property net operating income to be earned by the apartment communities in their first year of stabilized operations (after deducting a 3% management fee and a $300 per unit capital reserve) divided by aggregate estimated construction costs of the apartment communities. The Company uses property net operating income as a management tool to measure the operating performance of its apartment communities.
(4)	The Company defines “pre-tax profit” to equal projected net revenues from condominium activities less projected costs and expenses from condominium activities before the impact of income tax expense.

15

Post Properties, Inc.
Summary Of Communities Under Rehabilitation
(Dollars in thousands, except per square foot)

								Average Monthly Rental				Property NOI		Property NOI
								Rate Per Sq. Ft. (1)				For the Fiscal		For the		Undepreciated		Projected		Number of Units
						Average		Actual		Projected		Year Preceding		Three Months		Book Value		Total		As of June 30, 2006
		Year		Total		Sq. Ft.		Prior to		After		The Start of		Ended		Prior to		Rehabilitation				Out
Project	Location	Completed		Units		Per Unit (1)		Rehabilitation		Rehabilitation		Rehabilitation		June 30, 2006		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Chastain®	Atlanta, GA		1990		558		867	$	1.09	$	1.29	$	3,693	$	932	$	48,133	$	15,900		14		39
Post Worthington™	Dallas, TX		1993		332		819	$	1.32	$	1.58	$	2,384	$	371		41,139		9,500		26		80
					890											$	89,272	$	25,400		40		119

	Rehabilitation Cost Incurred in												Projected
	The Three Months Ended						Rehabilitation Capital Cost Incurred						Remaining
	June 30, 2006						As of June 30, 2006						Rehabilitation				Projected		Projected
	Revenue-		Non-Revenue-		Total		Revenue-		Non-Revenue-		Total		Capital Cost		Quarter of		Quarter of		Quarter of
	Generating		Generating		Capital		Generating		Generating		Capital		To be		Rehabilitation		Rehabilitation		Re-Stabilized
Project	Capital Cost		Capital Cost		Cost		Capital Cost		Capital Cost		Cost		Incurred		Start		Completion		Occupancy
Post Chastain®	$	639	$	—	$	639	$	741	$	—	$	741	$	15,159		2Q 2006		2Q 2008		3Q 2008
Post Worthington™		1,333		183		1,516		2,096		183		2,279		7,221		1Q 2006		2Q 2007		3Q 2007
	$	1,972	$	183	$	2,155	$	2,837	$	183	$	3,020	$	22,380

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary.
(2)	Includes approximately $2,600 of projected non-revenue generating capital costs.

16

Post Properties, Inc.
Summary Of Condominium Conversion Projects
(Dollars in thousands)

					# of Rental Units		Average							Units (4)
		Year	Sale	Total	Occupied as of		Unit		Project Transfer		Book Value as of									Available
Project	Location	Completed	Start Date	Units	June 30, 2006		Sq. Ft. (1)		Price (2)		June 30, 2006 (3)			Total		Closed		Under Contract		for Sale
588TM	Dallas, TX	2000	Q1 2005	127		—		1,470	$	20,274	$	824			127		124		1		2
The Peachtree ResidencesTM (5)	Atlanta, GA	2001	Q2 2005	121		—		1,340		30,190		4,746	(8)		121		79		12		30
Harbour Place City Homes™	Tampa, FL	1999	Q2 2006	206		35		1,036		37,000		11,612			206		70		10		126
RISETM	Houston, TX	2000	Q2 2006	143		79		1,407		26,250		22,539			143		7		7		129
Hyde Park WalkTM	Tampa, FL	1997	Q2 2005	134		—		890		16,755		—			134		134		—		—
											$	39,721			731		414		30		287

	Three months ended							Three months ended							Six months ended							Six months ended							Cumulative through
	June 30, 2006							June 30, 2005							June 30, 2006							June 30, 2005							June 30, 2006
					FFO							FFO							FFO							FFO							FFO
			Gross		Incremental					Gross		Incremental					Gross		Incremental					Gross		Incremental					Gross		Incremental
	Units		Sales		Gain on			Units		Sales		Gain on			Units		Sales		Gain on			Units		Sales		Gain on			Units		Sales		Gain on
Project	Closed		Price		Sale (6)(7)			Closed		Price		Sale (6)(7)			Closed		Price		Sale (6)(7)			Closed		Price		Sale (6)(7)			Closed		Price		Sale (6)
588TM		8	$	3,522	$	(10	)		35	$	7,934	$	823			20	$	6,518	$	391			53	$	11,440	$	1,182			123	$	33,165	$	3,619
The Peachtree Residences TM (5)		16		5,138		(43	)		12		4,422		35			29		9,224		(91	)		12		4,422		35			74		24,306		268
Harbour Place City Homes™		68		16,970		2,024			—		—		—			68		16,970		2,023			—		—		—			68		16,970		2,023
RISETM		7		1,493		(38	)		—		—		—			7		1,493		(73	)		—		—		—			7		1,493		(73	)
Hyde Park WalkTM		—		—		—			128		26,666		5,531			—		—		—			128		26,666		5,531			134		29,338		6,177
		99		27,123		1,933			175		39,022		6,389			124		34,205		2,250			193		42,528		6,748			406		105,272		12,014
Other expenses		—		—		(167	)		—		—		(160	)		—		—		(289	)		—		—		(269	)		—		—		(820	)
		99	$	27,123	$	1,766			175	$	39,022	$	6,229			124	$	34,205	$	1,961			193	$	42,528	$	6,479			406	$	105,272	$	11,194

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary.
(2)	Transfer price for purposes of computing incremental gains on condominium sales included in FFO reflects the greater of (1) the estimated fair value on the date the project was acquired by the Company’s taxable REIT subsidiary (as supported by independently-prepared, third-party appraisals) or (2) its net book value at that time.
(3)	Including total estimated construction costs of ground-up condominiums being developed (see page 15) of approximately $60.2 million and book value of unsold condominium conversions above, committed capital to the condominium business at June 30, 2006 totaled approximately $99.9 million.
(4)	Unit status is as of July 24, 2006. There can be no assurance that condominium units under contract will close.
(5)	The Peachtree ResidencesTM is owned in an unconsolidated entity, where the Company’s equity ownership is 35%. Amounts shown, except for incremental gains on condominium sales included in FFO, represents gross amounts at the unconsolidated entity level.
(6)	The Company recognizes incremental gains on condominium sales in FFO, net of provision for income taxes, to the extent that net sales proceeds, less costs of sales, from the sale of condominium units exceeds the “transfer price” as described in note 2 above.
(7)	Excludes the impact of income tax expense attributable to gains on condominium sales of $0 for the three and six months ended June 30, 2006, respectively, and $383 for the three and six months ended June 30, 2005, respectively.
(8)	Represents the Company’s 35% equity investment in an unconsolidated entity.

17

Post Properties, Inc.
Community Acquisition and Disposition Summary

						Gross Amount		Gross
Property Name/Period	Location	Units		Year Built		Per Unit		Amount
Acquisitions
Q2 2005
Post Ballantyne	Charlotte, NC		319		2004	$	116,771	$	37,250,000
2005 YTD Total								$	37,250,000
Weighted Average Cap Rate – Acquisitions – 2005									5.6	% (1)
Q1 2006
Post Barton Creek	Austin, TX		160		1998	$	166,875	$	26,700,000
Post Park Mesa	Austin, TX		148		1992	$	132,095		19,550,000
2006 YTD Total								$	46,250,000
Weighted Average Cap Rate – Acquisitions – 2006									4.5	% (2)
Dispositions
Q2 2005
Post American Beauty Mill™	Dallas, TX		80		1998	$	63,125
Post Bennie Dillon™	Nashville, TN		86		1999	$	119,767
Post Corners®	Atlanta, GA		460		1986	$	63,696
Post Walk®	Atlanta, GA		476		1984-1987	$	88,445
Post White Rock®	Dallas, TX		207		1988	$	59,420	$	99,050,000
Q3 2005
Post Village®	Atlanta, GA		1,738		1983-1988	$	76,237	$	132,500,000
2005 YTD Total								$	231,550,000
Weighted Average Cap Rate – Dispositions – 2005									5.9	% (3)

(1)	Based on projected first twelve-month net operating income after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $2 million relating to closing costs, reimbursement of a fee to terminate a loan commitment that the seller had previously entered into in connection with the community and other amounts it plans to spend to improve the community for total capitalized costs of approximately $39.3 million.
(2)	Based on projected first twelve-month net operating income after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $1.2 million to improve these communities for total capitalized costs of approximately $47.5 million.
(3)	Based on trailing twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit).

18

Post Properties, Inc.
Capitalized Costs Summary
(Dollars in thousands, except per share or unit data)
(Unaudited)

The Company has a policy of capitalizing those expenditures relating to the acquisition of new assets and the development and construction of new 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. Additionally, for new development communities, carpet, vinyl and blind replacements are expensed as incurred during the first five years (which corresponds to the estimated depreciable life of these assets) after construction completion. Thereafter, these replacements are capitalized. Further, the Company expenses as incurred the interior and exterior painting of communities.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment communities under development and construction. 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 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 development improvements and other capitalized expenditures for the three and six months ended June 30, 2006 and 2005 is detailed below.

	Three months ended				Six months ended
	June 30,				June 30,
	2006		2005		2006		2005
Development and acquisition expenditures	$	43,525	$	78,410	$	144,606	$	93,397
Periodically recurring capital expenditures
Community rehabilitations and other revenue generating improvements (1)		1,972		—		2,837		—
Other community additions and improvements (2)		1,599		1,127		2,322		2,029
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (3)		3,860		2,864		5,914		4,822
Corporate additions and improvements		487		278		983		978
	$	51,443	$	82,679	$	156,662	$	101,226
Other Data
Capitalized interest	$	2,306	$	416	$	4,138	$	783
Capitalized development costs and fees (4)	$	490	$	316	$	754	$	566

(1)	Represents expenditures for major community rehabilitations and other unit upgrade costs that enhance the rental value of such units (see page 16).
(2)	Represents community improvement expenditures (e.g. property upgrades) that generally occur less frequently than on an annual basis.
(3)	Represents community improvement expenditures (e.g. carpets, appliances) of a type that are expected to be incurred on an annual basis.
(4)	Reflects internal personnel and associated costs capitalized to construction and development activities.

19

Post Properties, Inc.
Investments in Unconsolidated Real Estate Entities
(Dollars in thousands, except per share or unit data)
(Unaudited)

The Company holds investments in three individual limited liability companies (the “Property LLCs”) with an institutional investor. Two of the Property LLCs own single apartment communities. The third Property LLC is converting its apartment community, originally containing 121 units, into for-sale condominiums. The Company holds a 35% equity interest in the Property LLCs.

The Company accounts for its investments in these Property LLCs using the equity method of accounting. The excess of the Company’s investment over its equity in the underlying net assets of the Property LLCs was approximately $5,810 at June 30, 2006. The excess investment related to Property LLCs holding apartment communities is being amortized as a reduction to earnings on a straight-line basis over the lives of the related assets. The excess investment of approximately $395 at June 30, 2006 related to the Property LLC holding the condominium conversion community will be recognized as additional cost of sales as the underlying condominiums are sold. The Company provides real estate services (development, construction and property management) to the Property LLCs for which it earns fees.

The operating results of the Company include its proportionate share of net income (loss) from the investments in the Property LLCs. A summary of financial information for the Property LLCs in the aggregate was as follows:

	June 30,		December 31,
Balance Sheet Data	2006		2005
Real estate assets, net of accumulated depreciation of $9,639 and $8,349, respectively	$	94,908	$	96,000
Assets held for sale, net (1)		11,606		17,715
Cash and other		2,734		1,770
Total assets	$	109,248	$	115,485
Mortgage notes payable	$	66,998	$	66,999
Mortgage notes payable to Company		—		5,967
Other liabilities		1,284		996
Total liabilities		68,282		73,962
Members’ equity		40,966		41,523
Total liabilities and members’ equity	$	109,248	$	115,485
Company’s equity investment	$	20,185	$	20,647

(1) Includes one community, originally containing 121 units, being converted into condominiums through a taxable REIT subsidiary.

	Three months ended					Six months ended
	June 30,					June 30,
Income Statement Data	2006			2005		2006			2005
Revenue
Rental	$	2,859		$	2,721	$	5,648		$	5,361
Other property revenues		244			230		478			415
Total revenues		3,103			2,951		6,126			5,776
Expenses
Property operating and maintenance		928			889		1,913			1,799
Depreciation and amortization		661			655		1,320			1,308
Interest		688			688		1,376			1,376
Total expenses		2,277			2,232		4,609			4,483
Income from continuing operations		826			719		1,517			1,293
Discontinued Operations
Gain (loss) from discontinued operations		(120	)		16		(283	)		(96	)
Gains on sales of real estate assets, net.		502			860		899			855
Loss on early extinguishment of debt		—			—		—			(273	)
Income from discontinued operations		382			876		616			486
Net income	$	1,208		$	1,595	$	2,133		$	1,779
Company’s share of net income	$	411		$	553	$	724		$	701

20

For the periods presented, gains on sales of real estate assets represent net gains from condominium sales at the condominium conversion community held by one of the Property LLCs. A summary of revenues and costs and expenses of condominium activities for the three and six months ended June 30, 2006 and 2005 was as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Condominium revenues	$	5,138		$	4,422		$	9,224		$	4,422
Condominium costs and expenses		(4,636	)		(3,562	)		(8,325	)		(3,567	)
Gains on condominium sales, net	$	502		$	860		$	899		$	855

At June 30, 2006, mortgage notes payable include a $49,998 mortgage note that bears interest at 4.13%, requires monthly interest payments and annual principal payments of $1 through 2009. Thereafter, the note requires monthly principal and interest payments based on a 25-year amortization schedule and matures in April 2034. The note is callable by the lender in May 2009 and on each successive fifth year anniversary of the note thereafter. The note is prepayable without penalty in May 2008. The additional mortgage note payable totaling $17,000 bears interest at a rate of 4.04% and matures in 2008.

In 2005, one of the Property LLCs elected to convert its apartment community into for-sale condominiums. As a result of its decision to sell the community through the condominium conversion process, the Property LLC prepaid its third party mortgage note payable of $16,392 through secured borrowings from the Company. The Property LLC incurred debt prepayment costs and expenses associated with the write-off of unamortized deferred financing costs totaling $273 in March 2005. The mortgage note payable to the Company had a fixed rate component ($16,392) bearing interest at 4.28% and a variable rate component bearing interest at LIBOR at 1.90%. In the three months ended June 30, 2006, the mortgage note payable was retired from the proceeds of condominium sales.

21

Post Properties, Inc.
Net Asset Value Supplemental Information
(Dollars in thousands, except per share or unit data)
(Unaudited)

This supplemental financial and other data provides adjustments to certain GAAP financial measures and Net Operating Income, which is a supplemental non-GAAP financial measure that the Company makes internally to calculate Net Asset Value (“NAV”). In addition, the Company believes that investors and analysts use similar measures in estimating the Company’s NAV. These measures, as adjusted, are supplemental non-GAAP financial measures. With the exception of Net Operating Income, 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. In the information below, the Company presents Net Operating Income for the quarter ended June 30, 2006 for properties stabilized by the beginning of the quarter ended June 30, 2006 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by the beginning of the quarter ended June 30, 2006 are presented at full undepreciated cost. Other tangible assets are also presented, as well as total liabilities and the liquidation value of preferred shares. The Company believes it is important to provide these measures to allow investors to easily develop their own calculations of NAV. The Company also believes that internal and external NAV estimates are a useful benchmark of the value of the Company’s assets over time and provide a useful measure for analyzing the Company’s trading price on the New York Stock Exchange.

Financial Data
(In thousands)

	Three months ended					As
	June 30, 2006		Adjustments			Adjusted
Income Statement Data
Rental revenues	$	71,607	$	(379	) (1)	$	71,228
Other property revenues		4,604		31	(1)		4,635
Total rental and other revenues (A)		76,211		(348	)		75,863
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		34,554		(5,651	) (1)		28,903
Property net operating income (Table 1) (A-B)	$	41,657	$	5,303	(2)	$	46,960
Apartment units represented		22,057		(866	) (3)		21,191

	As of					As
	June 30, 2006		Adjustments			Adjusted
Other Asset Data
Cash & equivalents	$	10,543	$	—		$	10,543
Construction in progress, at cost (4)		83,818		—			83,818
Land held for future development		113,146		—			113,146
For-sale condominiums and assets held for sale		122,498		(83,461	) (5)		39,037
Other assets (6)		42,690		—			42,690
Cash and other assets of unconsolidated real estate entities		2,734		(1,777	) (7)		957
	$	375,429	$	(85,238	)	$	290,191
Other Liability Data
Tax-exempt debt	$	28,495	$	—		$	28,495
Other notes payable		1,026,309		—			1,026,309
Other liabilities (8)		110,930		(1,870	) (8)		109,060
Total liabilities of unconsolidated real estate entities (9)		68,282		(44,383	) (9)		23,899
	$	1,234,016	$	(46,253	)	$	1,187,763
Other Data
Liquidation value of preferred shares		95,000		—			95,000
Common shares outstanding		43,205		—			43,205
Common units outstanding		714		—			714

(1)	The adjustments include additions for the Company’s 35% share of rental revenues ($1,001) and other property revenues ($85) and property operating and maintenance expenses (excluding depreciation and amortization) ($325) from Post Biltmore™ and Post Massachusetts Avenue™ (properties accounted for on the equity method of accounting). The adjustments include additions for rental revenues ($1,932) and other revenues ($252) and property operating and maintenance expenses ($694) from Post Uptown Square™, a community classified as held for sale and included in discontinued operations. In addition, the adjustments reflect a reduction of rental revenues ($709) and other revenues ($21) and property and operating maintenance expenses (excluding depreciation and amortization) ($460) generated by the Harbour Place City Homes™ and RISE™ units being converted to condominiums. Also, the adjustments reflect a reduction of rental revenues ($2,603) and other revenues ($285) and property operating and maintenance expenses (excluding depreciation and amortization) ($2,243) relating to the Company’s corporate apartment business. Lastly, the adjustment to operating and maintenance expenses (excluding depreciation and amortization) also includes a reduction for corporate property management expenses ($3,658) and the impact of straight-lining long-term ground lease expense ($309).
(2)	Property NOI, as adjusted, includes net operating income of Post Chastain® and Post Worthington™ which were being rehabilitated during the three months ended June 30, 2006. See page 16 for further information regarding rehabilitation activities and net operating income for these properties for the three months ended June 30, 2006.
(3)	The adjustment reflects a reduction for 512 units currently under construction at Post Carlyle™ and Post Alexander™, a reduction for 65% of the 545 units held in Post Biltmore™ and Post Massachusetts Avenue™ (two unconsolidated entities) (a 354 unit reduction) to adjust the units held in unconsolidated entities to the Company’s 35% share of the units.
(4)	The “As of June 30, 2006” amount represents the construction in progress balance per the Company’s balance sheet.

22

(5)	The adjustment reflects a reduction for the depreciated book value of Post Uptown Square™, a community classified as held for sale and included in discontinued operations and an increase for its 35% share of the book value of its unconsolidated condominium conversion asset (Post Peachtree™). The “As Adjusted” amount represents the book value of its wholly-owned condo conversion assets (588™, Harbour Place City Homes™ and RISE™) and its 35% share of the book value of its unconsolidated condominium conversion asset (Post Peachtree™).
(6)	These amounts consist of restricted cash and other assets, per the Company’s balance sheet.
(7)	The “As of June 30, 2006” amount represents cash and other assets of unconsolidated entities. The adjustment includes a reduction for the venture partners’ 65% share of cash and other assets ($1,777) of unconsolidated entities. The “As Adjusted” amount represents the Company’s 35% share of the cash and other assets of unconsolidated entities.
(8)	The “As of June 30, 2006” amount consists of the sum of accrued interest payable, dividends and distributions payable, minority interests of consolidated real estate entities, accounts payable and accrued expenses and security deposits and prepaid rents as reflected on the Company’s balance sheet. The adjustment represents a reduction for the non-cash liability associated with straight-line, long-term ground lease expense.
(9)	The “As of June 30, 2006” amount represents total liabilities of unconsolidated entities. The adjustment represents a reduction for the venture partner’s 65% share of liabilities of unconsolidated entities. The “As Adjusted” amount represents the Company’s 35% share of liabilities of unconsolidated entities.

Computation of Implied Portfolio Capitalization Rate
(In thousands)

	Three months ended
Calculation of Adjusted Property Net Operating Income	June 30, 2006
Total rental and other revenues	$	75,863	(a)
Property operating & maintenance expenses (excluding depreciation and amortization)		(28,903	) (a)
Property net operating income		46,960
Adjustments to property net operating income
Assumed property management fee (calculated at 3% of revenues)		(2,276	)
Assumed property capital expenditure reserve ($300 per unit per year based on 21,191 units)		(1,589	)
Property net operating income, adjusted for assumed management fee and assumed capital expenditures	$	43,095
Property net operating income, adjusted for assumed management fee and assumed capital expenditures (annualized) (A)	$	172,380

	As of
Calculation of Implied Market Value of Company Gross Real Estate Assets	June 30, 2006
Implied market value of common shares and units	$	1,991,287	(b)
Other assets, as adjusted		(290,191	) (a)
Other liabilities, as adjusted		1,187,763	(a)
Preferred stock, at liquidation value		95,000	(a)
Implied market value of Company gross real estate assets (B)	$	2,983,859
Implied Portfolio Capitalization Rate, based on Company’s stock price as of June 30, 2006 (A÷B)		5.8	%

(a)	Represents amounts in the “as adjusted” column from the Financial Data table reflected above.
(b)	Calculated as follows:

Common shares and units outstanding at June 30, 2006		43,919
Per share market value of common stock at June 30, 2006	$	45.34
Implied market value of common shares and units at June 30, 2006	$	1,991,287

23

Post Properties, Inc.
Non-GAAP Financial Measures and Other Defined Terms
(Dollars in thousands, except per share or unit data)
(Unaudited)

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 accompanying Supplemental Financial Data. These non-GAAP financial measures include FFO, AFFO, net operating income, same store capital expenditures, FFO and AFFO excluding certain accounting charges 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 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 (loss) 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. 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 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 (loss) 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 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.

24

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 communities stabilized in the prior year, lease-up communities, rehabilitation communities, sold properties 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 are the lines on the Company’s consolidated statements of cash flows entitled “annually recurring capital expenditures” and “periodically recurring capital expenditures.”

FFO and AFFO Excluding Certain Charges — The Company uses FFO and AFFO excluding certain items and charges, such as losses on early extinguishment of debt associated with asset sales and gains on the sale of technology investment as operating measures. The Company reports FFO and AFFO excluding certain items and charges as alternative financial measures of core operating performance. The Company believes FFO and AFFO before certain items and charges are informative measures for comparing operating performance between periods and for comparing operating performance to other companies that have not incurred such items and charges. The Company further believes that the losses recorded in 2005 for the early extinguishment of debt and the gains on sale of the technology investment recorded in 2005 were not necessarily repetitive in nature and that it is therefore meaningful to compare operating performance using alternative, non-GAAP measures. In addition to the foregoing, the Company believes the investment and analyst communities desire to understand the meaningful components of the Company’s performance and that these non-GAAP measures assist in providing such supplemental measures. The Company believes that the most directly comparable GAAP financial measures to each of FFO and AFFO, excluding certain items and charges, is the line on the Company’s consolidated statements of operations entitled “net income available to common shareholders.”

Debt Statistics and Debt Ratios — The Company uses a number of debt statistics and ratios as supplemental measures of liquidity. The numerator and/or the denominator of certain of these statistics and/or ratios include non-GAAP financial measures that have been reconciled to the most directly comparable GAAP financial measure. These debt statistics and ratios include: (1) an interest coverage ratio; (2) a fixed charge coverage ratio; (3) total debt as a percentage of undepreciated real estate (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate (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; and (8) a ratio of consolidated income available to debt service to annual debt service charge. A number of these debt statistics and ratios are derived from covenants found in the Company’s debt agreements, including, among others, the Company’s 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.

Average Economic Occupancy — The Company uses average economic occupancy as a statistical measure of 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.

25

Reconciliations of Supplemental Non-GAAP Financial Measures

Table 1
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Dollars in thousands)
(Unaudited)

	Three months ended									Six months ended
	June 30,			June 30,			March 31,			June 30,			June 30,
	2006			2005			2006			2006			2005
Total same store NOI	$	40,064		$	37,692		$	39,043		$	79,107		$	74,125
Property NOI from other operating segments		1,593			538			1,007			2,600			928
Consolidated property NOI		41,657			38,230			40,050			81,707			75,053
Add (subtract):
Other revenues		85			61			65			151			132
Interest income		118			189			120			238			354
Minority interest in consolidated property partnerships		(63	)		64			(29	)		(92	)		178
Depreciation		(17,031	)		(18,247	)		(16,675	)		(33,706	)		(36,612	)
Interest expense		(13,560	)		(14,612	)		(13,706	)		(27,266	)		(29,609	)
Amortization of deferred financing costs		(834	)		(1,029	)		(935	)		(1,769	)		(2,717	)
General and administrative		(4,632	)		(4,558	)		(4,426	)		(9,058	)		(8,949	)
Investment, development and other expenses		(1,617	)		(984	)		(1,550	)		(3,168	)		(2,404	)
Gains (losses) on sales of condominiums, net		8,569			(160	)		(158	)		8,411			(269	)
Equity in income of unconsolidated entities		411			553			312			724			701
Other income		270			—			1,424			1,694			5,267
Minority interest of common unitholders		(247	)		138			(63	)		(310	)		154
Income (loss) from continuing operations		13,126			(355	)		4,429			17,556			1,279
Income from discontinued operations		857			58,798			372			1,229			61,842
Net income	$	13,983		$	58,443		$	4,801		$	18,785		$	63,121

26

Table 2
Same Store Net Operating Income (NOI) Summary by Market
(Dollars in thousands)

	Three months ended,												2Q ’06
	June 30,		June 30,		March 31,		2Q ‘06			1Q ‘06			% Same
	2006		2005		2006		% change			% change			Store NOI
Rental and other revenues
Atlanta	$	27,888	$	26,940	$	27,233		3.5	%		2.4	%
Dallas		11,135		10,579		10,827		5.3	%		2.8	%
Tampa		6,897		6,294		6,816		9.6	%		1.2	%
Washington, DC		8,379		7,859		8,109		6.6	%		3.3	%
Charlotte		3,572		3,313		3,459		7.8	%		3.3	%
Houston		2,706		2,379		2,658		13.7	%		1.8	%
New York		3,328		3,030		3,246		9.8	%		2.5	%
Orlando		988		890		991		11.0	%		(0.3	)%
Total rental and other revenues		64,893		61,284		63,339		5.9	%		2.5	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		10,726		10,004		10,169		7.2	%		5.5	%
Dallas		4,993		4,680		4,924		6.7	%		1.4	%
Tampa		2,543		2,539		2,511		0.2	%		1.3	%
Washington, DC		2,792		2,724		2,782		2.5	%		0.4	%
Charlotte		1,182		1,042		1,088		13.4	%		8.6	%
Houston		1,314		1,319		1,286		(0.4	)%		2.2	%
New York		887		916		1,130		(3.2	)%		(21.5	)%
Orlando		392		368		406		6.5	%		(3.4	)%
Total		24,829		23,592		24,296		5.2	%		2.2	%
Net operating income
Atlanta		17,162		16,936		17,064		1.3	%		0.6	%		42.8	%
Dallas		6,142		5,899		5,903		4.1	%		4.0	%		15.3	%
Tampa		4,354		3,755		4,305		16.0	%		1.1	%		10.9	%
Washington, DC		5,587		5,135		5,327		8.8	%		4.9	%		13.9	%
Charlotte		2,390		2,271		2,371		5.2	%		0.8	%		6.0	%
Houston		1,392		1,060		1,372		31.3	%		1.5	%		3.5	%
New York		2,441		2,114		2,116		15.5	%		15.4	%		6.1	%
Orlando		596		522		585		14.2	%		1.9	%		1.5	%
Total same store NOI	$	40,064	$	37,692	$	39,043		6.3	%		2.6	%		100.0	%

27

Table 2 (con’t)
Same Store Net Operating Income (NOI) Summary by Market
(Dollars in thousands)

	Six months ended,
	June 30,		June 30,
	2006		2005		% change
Rental and other revenues
Atlanta	$	55,122	$	53,378		3.3	%
Dallas		21,961		20,868		5.2	%
Tampa		13,714		12,587		9.0	%
Washington, DC		16,487		15,562		5.9	%
Charlotte		7,031		6,481		8.5	%
Houston		5,365		4,820		11.3	%
New York		6,574		5,996		9.6	%
Orlando		1,979		1,792		10.4	%
Total rental and other revenues		128,233		121,484		5.6	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		20,895		20,033		4.3	%
Dallas		9,918		9,395		5.6	%
Tampa		5,054		5,069		(0.3	)%
Washington, DC		5,574		5,499		1.4	%
Charlotte		2,270		2,106		7.8	%
Houston		2,600		2,588		0.5	%
New York		2,017		1,878		7.4	%
Orlando		798		791		0.9	%
Total		49,126		47,359		3.7	%
Net operating income
Atlanta		34,227		33,345		2.6	%
Dallas		12,043		11,473		5.0	%
Tampa		8,660		7,518		15.2	%
Washington, DC		10,913		10,063		8.4	%
Charlotte		4,761		4,375		8.8	%
Houston		2,765		2,232		23.9	%
New York		4,557		4,118		10.7	%
Orlando		1,181		1,001		18.0	%
Total same store NOI	$	79,107	$	74,125		6.7	%

28

Table 3
Reconciliation of Segment Cash Flow Data to Statements of Cash Flows
(Dollars in thousands)

	Three months ended				Six months ended
	June 30,				June 30,
	2006		2005		2006		2005
Annually recurring capital expenditures by operating segment
Same store	$	3,368	$	2,235	$	5,323	$	3,724
Construction and lease-up		286		148		353		271
Condominium conversion communities		—		30		—		53
Acquired		56		15		59		15
Other segments		150		436		179		759
Total annually recurring capital expenditures per statements of cash flows	$	3,860	$	2,864	$	5,914	$	4,822
Periodically recurring capital expenditures by operating segment
Same store	$	859	$	605	$	1,272	$	1,086
Construction and lease-up		196		123		212		237
Condominium conversion communities		—		11		—		36
Acquired		3		5		8		5
Other segments		541		383		830		665
Total periodically recurring capital expenditures per statements of cash flows	$	1,599	$	1,127	$	2,322	$	2,029

29

Table 4
Computation of Interest and Fixed Charge Coverage Ratios
(Dollars in thousands)

	Six months ended
	June 30,
	2006			2005
Income from continuing operations	$	17,556		$	1,279
Minority interest of common unitholders		310			(154	)
Other income		(1,694	)		(5,267	)
Losses (gains) on sales of condominiums, net		(8,411	)		269
Gains on sales of real estate assets – unconsolidated entities		(73	)		(201	)
Depreciation expense		33,706			36,612
Depreciation (company share) of assets held in unconsolidated entities		451			521
Interest expense		27,266			29,609
Interest expense (company share) of assets held in unconsolidated entities		505			610
Amortization of deferred financing costs		1,769			2,717
Income available for debt service (A)	$	71,385		$	65,995
Interest expense	$	27,266		$	29,609
Interest expense (company share) of assets held in unconsolidated entities		505			610
Interest expense for purposes of computation (B)		27,771			30,219
Dividends and distributions to preferred shareholders and unitholders		3,819			3,819
Fixed charges for purposes of computation (C)	$	31,590		$	34,038
Interest coverage ratio (A÷B)		2.6	x		2.2	x
Fixed charge coverage ratio (A÷C)		2.3	x		1.9	x

30

Table 5
Computation of Debt Ratios
(In thousands)

	As of June 30,
	2006			2005
Total real estate assets per balance sheet	$	2,004,156		$	1,971,453
Plus:
Company share of real estate assets held in unconsolidated entities		37,280			42,390
Company share of accumulated depreciation – assets held in unconsolidated entities		3,374			2,473
Accumulated depreciation per balance sheet		532,340			489,812
Accumulated depreciation on assets held for sale		18,109			46,506
Total undepreciated real estate assets (A)	$	2,595,259		$	2,552,634
Total debt per balance sheet	$	1,054,804		$	1,111,936
Plus:
Company share of third party debt held in unconsolidated entities		23,449			23,450
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,880	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,078,253		$	1,126,506
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (B÷A)		41.5	%		44.1	%
Total debt per balance sheet	$	1,054,804		$	1,111,936
Plus:
Company share of third party debt held in unconsolidated entities		23,449			23,450
Preferred shares at liquidation value		95,000			95,000
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,880	)
Total debt and preferred equity (adjusted for joint venture partner’s share of debt) (C)	$	1,173,253		$	1,221,506
Total debt and preferred equity as a % of undepreciated assets (adjusted for joint venture partners’ share of debt) (C÷A)		45.2	%		47.9	%

31

Table 6
Calculation of Company Undepreciated Book Value Per Share
(In thousands)

	June 30,
	2006
Total shareholders’ equity, per balance sheet	$	912,003
Plus:
Accumulated depreciation, per balance sheet		532,340
Accumulated depreciation held for sale assets, per balance sheet		18,109
Minority interest of common unitholders in Operating Partnership, per balance sheet		13,587
Less:
Deferred charges, net, per balance sheet		(13,750	)
Preferred shares at liquidation value		(95,000	)
Total undepreciated book value (A)	$	1,367,289
Total common shares and units (B)		43,919
Company undepreciated book value per share (A÷B)	$	31.13

32