8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 5, 2008

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On February 4, 2008, Post Properties, Inc. and Post Apartment Homes, L.P. (collectively referred to as the “Registrants”), issued an Earnings Release and Supplemental Financial Data announcing their financial results for the quarterly period ended December 31, 2007. The Earnings Release and Supplemental Financial Data contain information about the Registrants’ financial condition and results of operations for the quarterly period ended December 31, 2007. A copy of the Earnings Release is attached hereto as Exhibit 99.1 and is incorporated by reference herein in its entirety. A copy of the Supplemental Financial Data is attached hereto as Exhibit 99.2 and is incorporated by reference herein in its entirety.

Item 9.01. Financial Statements and Exhibits.

99.1	Earnings Release
99.2	Supplemental Financial Data

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     Dated: February 5, 2008

POST PROPERTIES, INC.
By:	/s/ David P. Stockert
	David P. Stockert
	President and
	Chief Executive Officer

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     Dated: February 5, 2008

POST APARTMENT HOMES, L.P.
By:	POST GP HOLDINGS, INC.,
	as General Partner
By:    /s/ David P. Stockert
	David P. Stockert
	President and
	Chief Executive Officer

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Earnings Release
99.2	Supplemental Financial Data

EX-99.1

Exhibit 99.1

Contact: Janie Maddox
Post Properties, Inc.
(404) 846-5056

Post Properties Announces Fourth Quarter 2007 Earnings
Investor/Analyst Conference Call Scheduled for February 5, 2008 at 10:00 a.m. ET

ATLANTA, February 4, 2008 – Post Properties, Inc. (NYSE: PPS) announced today net income available to common shareholders of $77.3 million for the fourth quarter of 2007, compared to $45.0 million for the fourth quarter of 2006. On a diluted per share basis, net income available to common shareholders was $1.76 for the fourth quarter of 2007, compared to $1.02 for the fourth quarter of 2006. Net income available to common shareholders was $171.1 million for the year ended December 31, 2007, compared to $93.8 million for the year ended December 31, 2006. On a diluted per share basis, net income available to common shareholders was $3.88 and $2.15 for the years ended December 31, 2007 and 2006, respectively. The Company’s reported net income for the fourth quarter and year ended December 31, 2007 included net gains on the sales of apartment communities of approximately $44.8 million and $61.5 million, respectively, as well as gains of approximately $26.0 million and $81.3 million, respectively, on the sale of 75% interests in three apartment communities converted to joint venture ownership.

The Company uses the National Association of Real Estate Investment Trusts (“NAREIT”) definition of Funds from Operations (“FFO”) as an operating measure of the Company’s financial performance. A reconciliation of FFO to GAAP net income is included in the financial data (Table 1) accompanying this press release.

FFO for the fourth quarter of 2007 totaled $22.7 million, or $0.51 per diluted share, compared to $20.3 million, or $0.45 per diluted share, for the fourth quarter of 2006. The Company’s reported FFO for the fourth quarter of 2007 included a net gain of approximately $1.2 million, or $0.03 per diluted share, on the sale of a land site in Dallas, Texas. FFO for the fourth quarters of 2007 and 2006 also included $0.1 million and $0.4 million, respectively, of non-cash losses on the early extinguishment of tax-exempt secured indebtedness and related interest rate cap arrangements in connection with asset sales.

FFO for the year ended December 31, 2007 totaled $89.4 million, or $2.00 per diluted share, compared to $83.2 million, or $1.87 per diluted share, for the year ended December 31, 2006. The Company’s reported FFO for the year ended December 31, 2007 included net gains of approximately $5.1 million, or $0.12 per diluted share, on the sale of land sites in Atlanta, Georgia and Dallas, Texas, offset partially by the $0.1 million non-cash loss on the early extinguishment of debt. The Company’s reported FFO for the year ended December 31, 2006 included approximately $3.1 million, or $0.07 per diluted share, of other income and gains related to the mark-to-market of an interest rate swap, gain on sales of technology and other investments and the sale of undeveloped land, offset by a $0.5 million, or $0.01 per diluted share, non-cash loss on early extinguishment of debt and related interest rate cap arrangements in connection with asset sales.

Mature (Same Store) Community Data

For the fourth quarter of 2007, average economic occupancy at the Company’s 43 mature (same store) communities, containing 16,308 apartment units, was 94.9%, compared to 93.5% for the fourth quarter of 2006.

Total revenues for the mature communities increased 4.2% during the fourth quarter of 2007, compared to the fourth quarter of 2006, and operating expenses increased 4.2%, producing a 4.3% increase in same store net operating income (“NOI”), or $1.6 million. The average monthly rental rate per unit increased 3.0% during the fourth quarter of 2007, compared to the fourth quarter of 2006. Property tax and insurance expenses accounted for a majority of the increase in operating expenses.

On a sequential basis, total revenues and operating expenses for the mature communities decreased 0.7% and 7.6%, respectively, producing a 3.7% increase in same store NOI for the fourth quarter of 2007, compared to the third quarter of 2007, or $1.4 million. On a sequential basis, the average monthly rental rate per unit increased 0.6%. Property tax, utility and maintenance expenses accounted for a majority of the sequential decrease in operating expenses. For the fourth quarter of 2007, average economic occupancy at the mature communities was 94.9%, compared to 95.4% for the third quarter of 2007.

For the years ended December 31, 2007 and 2006, average economic occupancy at the Company’s mature communities was unchanged at 94.7%.

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Total revenues for the mature communities increased 4.7% during the year ended December 31, 2007 compared to the year ended December 31, 2006, and operating expenses increased 4.6%, producing a 4.7% increase in same store NOI, or $6.9 million. The average monthly rental rate per unit increased 4.9% during the year ended December 31, 2007, compared to the year ended December 31, 2006.

Same store NOI is a supplemental non-GAAP financial measure. A reconciliation of same store NOI to the comparable GAAP financial measure is included in the financial data (Table 2) accompanying this press release. Same store NOI by geographic market is also included in the financial data (Table 3) accompanying this press release.

Development, Acquisitions, Dispositions and Other Investment Activity

Development and Acquisition Activity

The Company announced today that its Post Carlyle Square™ community, containing 205 luxury apartment units and located in Alexandria, Virginia, has achieved stabilized occupancy.

In October 2007, the Company announced the start of construction of Post Frisco Bridges™, a new mixed-use community in the Dallas suburb of Frisco, Texas. Located just off the Dallas North Tollway, the development will consist of 269 luxury apartments and approximately 29,000 square feet of retail space in its first phase. Post Frisco Bridges™ will be situated on an approximately 5-acre site within the master-planned Sierra Frisco development. The Company’s total investment in this project is currently expected to be approximately $41.3 million. The Company also owns an approximately 6-acre site for a second phase.

In November 2007, the Company acquired a site in Houston, Texas for a total investment of approximately $5.6 million. This approximately 2-acre site, located less than one mile from Houston’s Medical Center and Greenway Office Park with convenient access to downtown, is currently expected to be developed by the Company to include approximately 232 luxury apartment units.

In December 2007, the Company announced the start of construction on Post Park^®, a luxury residential community in the greater Washington D.C. metropolitan area. The community is expected to include 396 luxury rental units and 1,700 square feet of retail space, and is located in Prince George’s County, Maryland adjacent to the area’s largest regional shopping center. The Company’s total investment in this project is currently expected to be approximately $84.7 million.

The Company announced today the start of construction of Post West Austin™, a new apartment community in Austin, Texas consisting of 329 luxury apartment units. Post West Austin™ will be situated on an approximately 5-acre in-fill site located in close proximity to the Central Business District and the University of Texas. The Company’s total investment in this project is currently expected to be approximately $53.2 million.

The Company also announced today the start of construction of the Four Seasons Residences, an approximately 400,000 square-foot luxury residential tower located on an approximately 2-acre site adjacent to the Four Seasons Hotel in Austin, Texas. The 32-story Michael Graves-designed building will contain 168 luxury condominium homes situated on the shores of Lady Bird Lake. Residents will have access to the services of the Four Seasons Hotel. The Company has been actively pre-selling units and, as of January 28, 2008, had contracted to sell 54 units (32% of the total). The Company’s total investment in this project is currently expected to be approximately $133.5 million.

As of December 31, 2007, the Company’s aggregate pipeline of development projects under construction totaled approximately $585.6 million (including the Company’s share, net of joint venture partner interests, of $539.8 million). The Company also owns or has under contract land for which it is in pre-development with respect to approximately 3,312 rental apartment units and approximately 198,000 square feet of retail amenities. Total projected future development costs of this pre-development pipeline are estimated to be approximately $750 million. There can be no assurance that projects in pre-development will commence construction on the projected timeline or at all or that actual pre-development costs will approximate estimated costs.

Disposition Activity

The Company announced today that in November 2007 it closed the sale of an approximately 0.5-acre land site in Dallas, Texas and realized a net gain of approximately $1.2 million.

In December 2007, the Company announced the closing of the sale of its Post Ashford^® and Post Vinings^® apartment communities located in Atlanta, Georgia for a gross sales price of approximately $67.8 million, the net proceeds of which were

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held by an exchange intermediary at December 31, 2007. For the three months ended December 31, 2007, the Company realized a net gain on the sale of these communities of approximately $44.8 million. Post Ashford^® and Post Vinings^® are garden-style communities with a total of 625 apartment units, which were completed from 1987 to 1991. The Company also announced today the January 2008 closing of the sale of Post Wilson Building™ located in Dallas, Texas for a gross sales price of approximately $19.9 million. Post Wilson Building™ contained 143 apartment units and is an historical building located in downtown Dallas that the Company renovated in 1999. The Company sold each of these three communities as part of a Section 1031 tax-deferred exchange transaction in conjunction with its acquisition of Post Lake^® at Baldwin Park in Orlando, Florida in August 2007.

In December 2007, the Company also announced that it had added Post Lindbergh^®, a 396-unit garden-style apartment community located in Atlanta, Georgia to its existing joint venture with Crow Holdings Realty Partners IV, L.P., an affiliate of Crow Holdings of Dallas, Texas. Post has a 25% ownership interest in the venture. The sale of the 75% interest generated net proceeds of approximately $55.8 million (including secured debt financing obtained at the venture level). The Company realized a gain from continuing operations of approximately $26.0 million related to the sale.

In the first quarter of 2008, the Company expects to begin marketing for sale two apartment communities located in Atlanta, Georgia. The two garden style communities together comprise approximately 750 apartment units. Gross proceeds from the sales of these two communities are expected to be approximately $100 million. There can be no assurance that these sales will close. At December 31, 2007, the two communities discussed above were classified as mature (same-store) communities.

Apartment Community Renovation Program

During 2007, the Company made substantial renovations and improvements of two of its apartment communities, containing 890 units, located in Atlanta, Georgia and Dallas, Texas. The Company believes that the long-term value of these two communities has been and will be enhanced as a result of the renovations; however, operating results at these two communities were affected negatively by increased vacancy during the renovation period. As of December 31, 2007, the renovation of Post Worthington™ consisting of 332 units in Dallas, Texas was complete, and this property had reached stabilized occupancy by year-end. As of December 31, 2007, the Company had completed the renovation of 503 units (90% of the total) at Post Chastain^® in Atlanta, Georgia. The operating results of this community will continue to be affected negatively until the renovation is complete. The Company currently plans to renovate two additional communities, commencing in 2008 — Post Heights™, containing 368 units and located in Dallas, Texas, and Post Peachtree Hills^®, containing 300 units and located in Atlanta, Georgia.

Condominium Activity

During the fourth quarter of 2007, the Company was converting two apartment communities, initially consisting of 349 units, to condominiums through a taxable REIT subsidiary. For the three months ended December 31, 2007, the Company closed the sales of 11 units for aggregate gross sales revenues of approximately $2.4 million. In the aggregate, as of January 28, 2008, the Company has closed the sales of 229 (66% of the total) of the units in these two condominium conversions.

The Company currently has four condominium communities in various stages of the development and sales process, containing 535 units, located in the Washington D.C. metropolitan area, Dallas, Texas, Austin, Texas and Atlanta, Georgia. Of those units, as of January 28, 2008, six were under contract and 103 units (71% of the total) had closed at the Washington D.C. development, one unit was under contract and 29 units (34% of the total) had closed at the Dallas, Texas development, and 54 units were under contract at the Austin, Texas development. For the three months ended December 31, 2007, the Company closed the sales of 38 units at its Washington D.C. and Dallas, Texas communities for aggregate gross sales revenues of approximately $13.4 million.

There can be no assurance that condominium units under contract at any of the Company’s condominium conversion or development communities will close.

The Company recognized approximately $0.1 million of incremental gains on condominium sales, net of minority interest, in FFO during the fourth quarter of 2007, compared to net gains of approximately $0.3 million, or $0.01 per diluted share, during the fourth quarter of 2006. For the years ended December 31, 2007 and 2006, the Company recognized $5.5 million, or $0.12 per diluted share, and $1.5 million, or $0.03 per diluted share, respectively, of incremental gains on condominium sales, net of minority interest, in FFO.

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The Company reports condominium gains (losses) in its consolidated statement of operations in the captions titled gains (losses) on sales of real estate assets in continuing and discontinued operations and in equity in income of unconsolidated real estate entities.

Financing Activity

In November 2007, the Company amended its syndicated lines of credit to increase the borrowing capacity by $150 million to $600 million. The pricing terms and the maturity date of the syndicated line remain unchanged. The amended syndicated line continues to contain customary representations, covenants and events of default, certain of which were modified in conjunction with the expansion of the credit facility.

In December 2007, the Company retired approximately $9.9 million of low-floater, variable rate tax-exempt bonds in connection with the sale of Post Ashford^® discussed above.

In January 2008, the Company closed a 7-year (with an automatic 1-year extension), fixed-to-floating, $120 million secured mortgage loan with Freddie Mac. The loan has a fixed interest rate of 4.88% and matures on February 1, 2016, including the one-year floating rate extension option. The loan was priced at 168 basis points over the applicable Treasury rate. Net loan proceeds were used to repay outstanding borrowings on the Company’s unsecured, variable line of credit. This loan is secured by a mortgage on the Company’s Post Addison Circle™ community.

Total debt and preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) was 43.8% at December 31, 2007, and variable rate debt as a percentage of total debt was 24.3% as of that same date. As of December 31, 2007, the Company had outstanding borrowings of approximately $257.3 million on its combined $630 million unsecured lines of credit. After repayment of borrowings using asset sale and secured loan proceeds discussed above, the Company had outstanding borrowings of approximately $85 million on its combined lines of credit as of January 31, 2008, and its variable rate debt as a percentage of total debt declined to 8.4% as of that same date.

Computations of debt ratios and reconciliations of the ratios to the appropriate GAAP measures in the Company’s financial statements are included in the financial data (Table 4) accompanying this press release.

Board Authorization to Seek a Potential Sale of the Company

On January 23, 2008, the Company announced that its Board of Directors had authorized management, working with financial and legal advisors, to initiate a formal process to pursue a potential sale or other business combination and to seek proposals from potentially interested parties. The process commenced immediately after the announcement and is continuing.

The Company does not expect to disclose information regarding the status of the process until it has been completed. There can be no assurance that the process will result in a sale or other business combination.

As a result of the commencement of the process discussed above, the Company will not provide earnings or FFO guidance for 2008.

As a result of this announcement, both Standard and Poors and Moody’s rating agencies placed the Company’s credit rating outlook on “credit watch” or “developing,” pending the outcome of this process.

Supplemental Financial Data

The Company also produces Supplemental Financial Data that includes detailed information regarding the Company’s operating results and balance sheet. This Supplemental Financial Data is considered an integral part of this earnings release and is available on the Company’s website. The Company’s Earnings Release and the Supplemental Financial Data are available through the investor relations/financial reports/quarterly and other reports section of the Company’s website at www.postproperties.com.

The ability to access the attachments on the Company’s website requires the Adobe Acrobat 4.0 Reader, which may be downloaded at http://www.adobe.com/products /acrobat/readstep.html.

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Non-GAAP Financial Measures and Other Defined Terms

The Company uses certain non-GAAP financial measures and other defined terms in this press release and in its Supplemental Financial Data available on the Company’s website. The non-GAAP financial measures include FFO, Adjusted Funds from Operations (“AFFO”), net operating income, same store capital expenditures, and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below and on page 23 of the Supplemental Financial Data. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

Funds from Operations – The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (or losses) from extraordinary items and sales of depreciable operating property, plus depreciation and amortization of real estate assets, and after adjustment for unconsolidated partnerships and joint ventures all determined on a consistent basis in accordance with GAAP. FFO presented in the Company’s press release and Supplemental Financial Data is not necessarily comparable to FFO presented by other real estate companies because not all real estate companies use the same definition. The Company’s FFO is comparable to the FFO of real estate companies that use the current NAREIT definition.

Accounting for real estate assets using historical cost accounting under GAAP assumes that the value of real estate assets diminishes predictably over time. NAREIT stated in its April 2002 White Paper on Funds from Operations that “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” As a result, the concept of FFO was created by NAREIT for the REIT industry to provide an alternate measure. Since the Company agrees with the concept of FFO and appreciates the reasons surrounding its creation, the Company believes that FFO is an important supplemental measure of operating performance. In addition, since most equity REITs provide FFO information to the investment community, the Company believes that FFO is a useful supplemental measure for comparing the Company’s results to those of other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to FFO.

Adjusted Funds From Operations – The Company also uses adjusted funds from operations (“AFFO”) as an operating measure. AFFO is defined as FFO less operating capital expenditures and after adjusting for the non-cash impact of straight-line, long-term ground lease expense and other income related to the mark-to-market of an interest rate swap arrangement. The Company believes that AFFO is an important supplemental measure of operating performance for an equity REIT because it provides investors with an indication of the REIT’s ability to fund its operating capital expenditures through earnings. In addition, since most equity REITs provide AFFO information to the investment community, the Company believes that AFFO is a useful supplemental measure for comparing the Company to other equity REITs. The Company believes that the line on its consolidated statement of operations entitled “net income available to common shareholders” is the most directly comparable GAAP measure to AFFO.

Property Net Operating Income – The Company uses property NOI, including same store NOI and same store NOI by market, as an operating measure. NOI is defined as rental and other revenues from real estate operations less total property and maintenance expenses from real estate operations (exclusive of depreciation and amortization). The Company believes that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs and general and administrative expenses generally incurred at the corporate level. This measure is particularly useful, in the opinion of the Company, in evaluating the performance of geographic operations, same store groupings and individual properties. Additionally, the Company believes that NOI, as defined, is a widely accepted measure of comparative operating performance in the real estate investment community. The Company believes that the line on its consolidated statement of operations entitled “net income” is the most directly comparable GAAP measure to NOI.

Same Store Capital Expenditures – The Company uses same store annually recurring and periodically recurring capital expenditures as cash flow measures. Same store annually recurring and periodically recurring capital expenditures are supplemental non-GAAP financial measures. The Company believes that same store annually recurring and periodically recurring capital expenditures are important indicators of the costs incurred by the Company in maintaining its same store communities on an ongoing basis. The corresponding GAAP measures include information with respect to the Company’s other operating segments consisting of communities stabilized in the prior year, lease-up communities, rehabilitation

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properties, 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.”

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 assets (adjusted for joint venture partner’s share of debt); (4) total debt plus preferred equity as a percentage of undepreciated real estate assets (adjusted for joint venture partner’s share of debt); (5) a ratio of consolidated debt to total assets; (6) a ratio of secured debt to total assets; (7) a ratio of total unencumbered assets to unsecured debt; 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.

Conference Call Information

The Company will hold its quarterly conference call on Tuesday, February 5, at 10:00 a.m. ET. The telephone numbers are 888-668-1640 for US and Canada callers and 913-312-1489 for international callers. The access code is 9164515. The conference call will be open to the public and can be listened to live on Post’s website at www.postproperties.com under investor relations/event calendar. The replay will begin at 1:00 p.m. ET on February 5, and will be available until Monday, February 11, at 11:59 p.m. ET. The telephone numbers for the replay are 888-203-1112 for US and Canada callers and 719-457-0820 for international callers. The access code for the replay is 9164515. A replay of the call also will be archived on Post’s website under investor relations/audio archive. The financial and statistical information that will be discussed on the call is contained in this press release and the Supplemental Financial Data. Both documents will be available through the investor relations/financial reports/quarterly & other section of the Company’s website at www.postproperties.com.

Post Properties, founded more than 35 years ago, is one of the largest developers and operators of upscale multifamily communities in the United States. The Company’s mission is delivering superior satisfaction and value to its residents, associates, and investors, with a vision of being the first choice in quality multifamily living. Operating as a real estate investment trust (“REIT”), the Company focuses on developing and managing Post^® branded resort-style garden and high density urban apartments. In addition, the Company develops high-quality condominiums and converts existing apartments to for-sale multifamily communities. Post Properties is headquartered in Atlanta, Georgia, and has operations in ten markets across the country.

Post Properties owns 22,578 apartment homes in 63 communities, including 1,747 apartment units in five communities held in unconsolidated entities, 2,266 apartment units in seven communities (and the expansion of one community) currently under construction and/or in lease-up. The Company is also developing and selling 535 for-sale condominium homes in four communities (including 137 units in one community held in an unconsolidated entity) and is converting apartment units in two communities initially consisting of 349 units into for-sale condominium homes through a taxable REIT subsidiary.

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Forward Looking Statements

Certain statements made in this press release and other written or oral statements made by or on behalf of the Company, may constitute “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. Examples of such statements in this press release include the Company’s anticipated development and sales activities (including the projected costs for such activities), anticipated renovation projects and anticipated condominium conversion activity and sales. 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, 2006; 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 expansion into the condominium conversion and for-sale housing business; conditions affecting ownership of residential real estate and general conditions in the multifamily residential real estate market; uncertainties associated with environmental and other regulatory matters; the impact of our ongoing litigation with the Equal Rights Center regarding compliance with the Americans with Disabilities Act and the Fair Housing Act (including any award of compensatory or punitive damages or injunctive relief requiring us to retrofit apartments or public use areas or prohibiting the sale of apartment communities or condominium units) as well as the impact of other litigation; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code; and the progress and results of the Company’s formal process to pursue a potential sale or other business combination.  Other important risk factors regarding the Company are included under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K dated December 31, 2006 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this press release.

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Financial Highlights
(Unaudited; in thousands, except per share and unit amounts)

	Three months ended				Year Ended
	December 31,				December 31,
	2007		2006		2007		2006
OPERATING DATA
Revenues from continuing operations	$	78,106	$	74,530	$	307,542	$	291,545
Net income available to common shareholders	$	77,333	$	44,974	$	171,062	$	93,832
Funds from operations available to common shareholders and unitholders (Table 1)	$	22,713	$	20,292	$	89,382	$	83,222
Weighted average shares outstanding — diluted		44,006		44,175		44,129		43,594
Weighted average shares and units outstanding — diluted		44,541		44,880		44,738		44,427
PER COMMON SHARE DATA — DILUTED
Net income available to common shareholders	$	1.76	$	1.02	$	3.88	$	2.15
Funds from operations available to common shareholders and unitholders (Table 1)	$	0.51	$	0.45	$	2.00	$	1.87
Dividends declared	$	0.45	$	0.45	$	1.80	$	1.80

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Table 1
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations Available to Common Shareholders and Unitholders
(Unaudited; in thousands, except per share amounts)

	Three months ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Net income available to common shareholders	$	77,333		$	44,974		$	171,062		$	93,832
Minority interest of common unitholders - continuing operations		419			74			1,491			418
Minority interest in discontinued operations		606			741			903			1,399
Depreciation on wholly-owned real estate assets, net		16,241			16,645			65,560			66,574
Depreciation on real estate assets held in unconsolidated entities		320			227			1,143			906
Gains on sales of real estate assets		(72,588	)		(42,448	)		(157,620	)		(80,927	)
Incremental gains on condominium sales (1)		382			174			6,922			1,406
Gains on sales of real estate assets - unconsolidated entities		(16	)		(236	)		(186	)		(482	)
Incremental gains on condominium sales - unconsolidated entities (1)		16			141			107			96
Funds from operations available to common shareholders and unitholders	$	22,713		$	20,292		$	89,382		$	83,222
Funds from operations — per share and unit — diluted	$	0.51		$	0.45		$	2.00		$	1.87
Weighted average shares and units outstanding — diluted		44,541			44,880			44,738			44,427

(1) For condominium conversion projects, 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 and expenses, 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. For condominium development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP. See the table entitled “Summary of Condominium Projects” on page 17 of the Supplemental Financial Data for further detail.

-9-

Table 2
Reconciliation of Same Store Net Operating Income (NOI) to GAAP Net Income
(Unaudited; In thousands)

	Three months ended									Year ended
	December 31,			December 31,			September 30,			December 31,			December 31,
	2007			2006			2007			2007			2006
Total same store NOI	$	39,565		$	37,936		$	38,166		$	152,200		$	145,346
Property NOI from other operating segments		3,608			2,983			3,960			13,598			12,307
Consolidated property NOI		43,173			40,919			42,126			165,798			157,653
Add (subtract):
Interest income		170			279			189			822			1,261
Other revenues		186			202			171			602			402
Minority interest in consolidated property partnerships		(441	)		(80	)		(585	)		(1,857	)		(257	)
Depreciation		(16,461	)		(16,813	)		(16,638	)		(66,371	)		(65,687	)
Interest expense		(13,266	)		(12,801	)		(12,831	)		(52,116	)		(52,533	)
Amortization of deferred financing costs		(828	)		(875	)		(828	)		(3,297	)		(3,526	)
General and administrative		(5,169	)		(5,038	)		(4,761	)		(21,337	)		(18,502	)
Investment and development		(1,551	)		(1,924	)		(2,006	)		(7,063	)		(6,424	)
Gains on sales of real estate assets, net		28,509			2,356			5,061			100,015			12,881
Equity in income of unconsolidated real estate entities		340			562			402			1,556			1,813
Other income (expense)		(314	)		—			(262	)		(1,098	)		2,592
Minority interest of common unitholders		(419	)		(74	)		(91	)		(1,491	)		(418	)
Income from continuing operations		33,929			6,713			9,947			114,163			29,255
Income from discontinued operations		45,313			40,170			1,102			64,536			72,214
Net income	$	79,242		$	46,883		$	11,049		$	178,699		$	101,469

-10-

Table 3
Same Store Net Operating Income (NOI) Summary by Market
(In thousands)

	Three Months Ended						Q4 ’07			Q4 ’07			Q4 ’07
	December 31,		December 31,		September 30,		vs. Q4 ’06			vs. Q3 ’07			% Same
	2007		2006		2007		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	22,002	$	21,187	$	21,997		3.8	%		0.0	%
Dallas		11,273		10,584		11,393		6.5	%		(1.1	)%
Washington, D.C.		8,693		8,505		8,799		2.2	%		(1.2	)%
Tampa		7,198		7,171		7,395		0.4	%		(2.7	)%
Charlotte		4,835		4,578		4,909		5.6	%		(1.5	)%
New York		3,806		3,509		3,729		8.5	%		2.1	%
Houston		3,006		2,749		3,007		9.3	%		(0.0	)%
Orlando		1,007		1,017		1,033		(1.0	)%		(2.5	)%
Total rental and other revenues		61,820		59,300		62,262		4.2	%		(0.7	)%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		8,051		7,612		8,862		5.8	%		(9.2	)%
Dallas		4,665		4,459		4,980		4.6	%		(6.3	)%
Washington, D.C.		2,683		2,204		2,845		21.7	%		(5.7	)%
Tampa		2,858		3,095		3,116		(7.7	)%		(8.3	)%
Charlotte		1,298		1,515		1,597		(14.3	)%		(18.7	)%
New York		1,104		953		966		15.8	%		14.3	%
Houston		1,197		1,153		1,309		3.8	%		(8.6	)%
Orlando		399		373		421		7.0	%		(5.2	)%
Total		22,255		21,364		24,096		4.2	%		(7.6	)%
Net operating income
Atlanta		13,951		13,575		13,135		2.8	%		6.2	%		35.3	%
Dallas		6,608		6,125		6,413		7.9	%		3.0	%		16.7	%
Washington, D.C.		6,010		6,301		5,954		(4.6	)%		0.9	%		15.2	%
Tampa		4,340		4,076		4,279		6.5	%		1.4	%		11.0	%
Charlotte		3,537		3,063		3,312		15.5	%		6.8	%		8.9	%
New York		2,702		2,556		2,763		5.7	%		(2.2	)%		6.8	%
Houston		1,809		1,596		1,698		13.3	%		6.5	%		4.6	%
Orlando		608		644		612		(5.6	)%		(0.7	)%		1.5	%
Total same store NOI	$	39,565	$	37,936	$	38,166		4.3	%		3.7	%		100.0	%

-11-

Table 3 con’t
Same Store Net Operating Income (NOI) Summary by Market
(In thousands)

	Year ended
	December 31,		December 31,
	2007		2006		% Change
Rental and other revenues
Atlanta	$	86,606	$	83,252		4.0	%
Dallas		44,325		42,396		4.5	%
Washington, D.C.		34,574		33,584		2.9	%
Tampa		29,261		27,902		4.9	%
Charlotte		19,201		18,155		5.8	%
New York		14,694		13,509		8.8	%
Houston		11,751		10,848		8.3	%
Orlando		4,125		3,991		3.4	%
Total rental and other revenues		244,537		233,637		4.7	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		33,339		31,322		6.4	%
Dallas		19,002		18,883		0.6	%
Washington, D.C.		10,942		10,618		3.1	%
Tampa		11,872		10,839		9.5	%
Charlotte		6,109		6,128		(0.3	)%
New York		4,115		3,844		7.0	%
Houston		5,125		5,080		0.9	%
Orlando		1,833		1,577		16.2	%
Total		92,337		88,291		4.6	%
Net operating income
Atlanta		53,267		51,930		2.6	%
Dallas		25,323		23,513		7.7	%
Washington, D.C.		23,632		22,966		2.9	%
Tampa		17,389		17,063		1.9	%
Charlotte		13,092		12,027		8.9	%
New York		10,579		9,665		9.5	%
Houston		6,626		5,768		14.9	%
Orlando		2,292		2,414		(5.1	)%
Total same store NOI	$	152,200	$	145,346		4.7	%

-12-

Table 4
Computation of Debt Ratios
(In thousands)

	As of December 31,
	2007			2006
Total real estate assets per balance sheet	$	2,111,612		$	2,028,580
Plus:
Company share of real estate assets held in unconsolidated entities		91,085			41,344
Company share of accumulated depreciation — assets held in unconsolidated entities		5,149			3,864
Accumulated depreciation per balance sheet		562,226			547,477
Accumulated depreciation on assets held for sale		4,031			4,035
Total undepreciated real estate assets (A)	$	2,774,103		$	2,625,300
Total debt per balance sheet	$	1,059,066		$	1,033,779
Plus:
Company share of third party debt held in unconsolidated entities		60,959			23,449
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,120,025		$	1,048,678
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A)		40.4	%		39.9	%
Total debt per balance sheet	$	1,059,066		$	1,033,779
Plus:
Company share of third party debt held in unconsolidated entities		60,959			23,449
Preferred shares at liquidation value		95,000			95,000
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,215,025		$	1,143,678
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		43.8	%		43.6	%

-13-

EX-99.2

Exhibit 99.2

Fourth Quarter 2007

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	7
Consolidated Balance Sheets	10
Consolidated Debt Summary	11
Summary of Communities Under Construction	14
Summary of Future Projects in Pre-Development	15
Summary of Communities Under Rehabilitation	16
Summary of Condominium Projects	17
Community Acquisition and Disposition Summary	18
Capitalized Costs Summary	19
Investments in Unconsolidated Real Estate Entities	20
Net Asset Value Supplemental Information	21
Non-GAAP Financial Measures and Other Defined Terms	23

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, 2006; 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 the timing of estimated start and completion dates, actual costs exceeding the Company’s budgets or development periods exceeding expectations or the inability to attain estimated yields; 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; the impact of our ongoing litigation with the Equal Rights Center regarding compliance with the Americans with Disabilities Act and the Fair Housing Act (including any award of compensatory or punitive damages or injunctive relief requiring us to retrofit apartments or public use areas or prohibiting the sale of apartment communities or condominium units) as well as the impact of other litigation; the effects of changes in accounting policies and other regulatory matters detailed in the Company’s filings with the Securities and Exchange Commission; the Company’s ability to continue to qualify as a real estate investment trust under the Internal Revenue Code; and the progress and results of the Company’s formal process to pursue a potential sale or other business combination. Other important risk factors regarding the Company are included under the caption “Risk Factors” in the company’s Annual Report on Form 10-K, dated December 31, 2006 and may be discussed in subsequent filings with the SEC. The risk factors discussed in Form 10-K under the caption “Risk Factors” are specifically incorporated by reference into this document.

2

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

	Three months ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenues
Rental	$	74,141		$	70,376		$	290,975		$	274,731
Other property revenues		3,779			3,952			15,965			16,412
Other		186			202			602			402
Total revenues		78,106			74,530			307,542			291,545
Expenses
Property operating and maintenance (exclusive of items shown separately below)		34,747			33,409			141,142			133,490
Depreciation		16,461			16,813			66,371			65,687
General and administrative		5,169			5,038			21,337			18,502
Investment, development and other (1)		1,551			1,924			7,063			6,424
Total expenses		57,928			57,184			235,913			224,103
Operating income		20,178			17,346			71,629			67,442
Interest income		170			279			822			1,261
Interest expense		(13,266	)		(12,801	)		(52,116	)		(52,533	)
Amortization of deferred financing costs		(828	)		(875	)		(3,297	)		(3,526	)
Gains on sales of real estate assets, net (2)		28,509			2,356			100,015			12,881
Equity in income of unconsolidated real estate entities		340			562			1,556			1,813
Other income (expense) (3)		(314	)		—			(1,098	)		2,592
Minority interest in consolidated property partnerships		(441	)		(80	)		(1,857	)		(257	)
Minority interest of common unitholders		(419	)		(74	)		(1,491	)		(418	)
Income from continuing operations		33,929			6,713			114,163			29,255
Discontinued operations (4)
Income from discontinued property operations, net of minority interest		707			1,173			2,733			5,453
Gains on sales of real estate assets, net of minority interest		44,728			39,362			61,925			67,247
Loss on early extinguishment of indebtedness, net of minority interest		(122	)		(365	)		(122	)		(486	)
Income from discontinued operations		45,313			40,170			64,536			72,214
Net income		79,242			46,883			178,699			101,469
Dividends to preferred shareholders		(1,909	)		(1,909	)		(7,637	)		(7,637	)
Net income available to common shareholders	$	77,333		$	44,974		$	171,062		$	93,832
Per common share data — Basic (5)
Income from continuing operations (net of preferred dividends)	$	0.73		$	0.11		$	2.45		$	0.50
Income from discontinued operations		1.04			0.93			1.48			1.69
Net income available to common shareholders	$	1.77		$	1.04		$	3.93		$	2.19
Weighted average common shares outstanding — basic		43,616			43,392			43,491			42,812
Per common share data — Diluted (5)
Income from continuing operations (net of preferred dividends)	$	0.73		$	0.11		$	2.41		$	0.50
Income from discontinued operations		1.03			0.91			1.46			1.66
Net income available to common shareholders	$	1.76		$	1.02		$	3.88		$	2.15
Weighted average common shares outstanding — diluted		44,006			44,175			44,129			43,594

3

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

(1)	Investment, development and other expenses for the three months and year ended December 31, 2007 and 2006 included investment group expenses, development personnel and associated costs and land carry expenses not allocable to current development projects.
(2)	During the fourth quarter of 2007, the Company transferred an operating apartment community to an unconsolidated entity that was formed earlier in 2007. The Company has a 25% non-controlling interest in the unconsolidated entity and the transfer of this third community completed the joint venture arrangement. The Company realized aggregate proceeds and recognized gains on sales of real estate of approximately $45,571 and $25,968, respectively, for the three months ended December 31, 2007 from the transaction. For the year ended December 31, 2007, the Company realized aggregate proceeds and recognized gains on sales of real estate of approximately $134,922 and $81,268, respectively, from the transfer of three operating communities to this unconsolidated entity. Additionally, the unconsolidated entity obtained mortgage financing secured by the apartment communities totaling approximately $126,723, of which approximately $31,681 was distributed to the Company. For the three months and year ended December 31, 2007, gains on sales of real estate assets also included gains of $1,248 and $5,186 on the sale of land sites, respectively, including one site with an associated corporate facility. For the year ended December 31, 2006, gains on sales of real estate assets included a $503 gain on the sale of a land site.
	For the three months and year ended December 31, 2007 and 2006, income from continuing operations also included net gains from condominium sales activities at newly developed and condominium conversion projects representing portions of existing communities. In addition, condominium gains are net of certain expensed sales and marketing costs associated with pre-sale condominium communities and condominium communities under development totaling $409 and $208 for the three months and $868 and $605 for the years ended December 31, 2007 and 2006, respectively. Net gains (losses) from condominium sales activities at other consolidated community conversion projects are included in discontinued operations under generally accepted accounting principles (see (4) below). A summary of revenues and costs and expenses of condominium activities included in continuing operations for the three months and years ended December 31, 2007 and 2006 was as follows:

	Three months ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Condominium revenues	$	15,866		$	8,123		$	77,458		$	33,364
Condominium costs and expenses		(14,573	)		(5,767	)		(63,897	)		(20,986	)
Gains on sales of condominiums, net	$	1,293		$	2,356		$	13,561		$	12,378

(3)	For the year ended December 31, 2007, other expenses primarily included estimated state franchise and other income taxes. For the year ended December 31, 2006, other income included a gain on the sale of marketable securities of $573, an additional gain on sale of the Company’s prior investment in Rent.com of $325 and other income totaling $1,655 relating to the net increase in the market value of an ineffective interest rate derivative prior to its termination in April 2006.
(4)	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 year ended December 31, 2007, income from discontinued operations included the operating results of one apartment community, containing 143 units, held for sale at December 31, 2007, three apartment communities, containing 807 units, through their sale dates in 2007 and one condominium conversion community through its sell out date in February 2007. For the year ended December 31, 2006, income from discontinued operations included the results of operations of the apartment community held for sale at December 31, 2007, the apartment communities and condominium conversion community sold in 2007, and three apartment communities sold in 2006 through their sale dates.

4

The operating revenues and expenses of these communities for the three months and year ended December 31, 2007 and 2006 were as follows:

	Three months ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenues
Rental	$	1,881		$	3,854		$	8,572		$	20,065
Other property revenues		151			312			676			1,914
Total revenues		2,032			4,166			9,248			21,979
Expenses
Property operating and maintenance (exclusive of items shown separately below)		881			1,884			3,890			8,951
Depreciation		90			414			1,069			3,280
Interest		345			677			1,517			4,189
Total expenses		1,316			2,975			6,476			16,420
Income from discontinued property operations before minority interest		716			1,191			2,772			5,559
Minority interest		(9	)		(18	)		(39	)		(106	)
Income from discontinued property operations	$	707		$	1,173		$	2,733		$	5,453

For the three months ended December 31, 2007, the Company recognized net gains in discontinued operations of $45,433 ($44,832 net of minority interest), from the sale of two apartment communities, containing 625 units. These sales generated net proceeds of approximately $67,152, the majority of which was held by an exchange intermediary at December 31, 2007 (and classified as other assets on the consolidated balance sheet), pending the completion of a tax-deferred exchange. For the year ended December 31, 2007, the Company recognized net gains in discontinued operations of $62,407 ($61,546 net of minority interest), from the sale of three apartment communities, containing 807 units. These sales generated net proceeds of approximately $90,893, of which a portion was held by an exchange intermediary as previously discussed. For the three months ended December 31, 2006, the Company recognized net gains in discontinued operations of $40,204 ($39,471 net of minority interest), from the sale of two apartment communities, containing 644 units. For the year ended December 31, 2006, the Company recognized net gains in discontinued operations of $68,324 ($67,026 net of minority interest) from the sale of three apartment communities, containing 1,340 units.

For the year ended December 31, 2007 and 2006, gains on sales of real estate assets included in discontinued operations also included net gains from condominium sales activities at one condominium conversion community that sold out in 2007. A summary of revenues and costs and expenses of condominium activities included in discontinued operations for the three months and year ended December 31, 2007 and 2006 was as follows:

	Three months ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Condominium revenues	$	—		$	300		$	560		$	7,322
Condominium costs and expenses		(106	)		(412	)		(176	)		(7,097	)
Gains (losses) on condominium sales, before minority interest		(106	)		(112	)		384			225
Minority interest		2			3			(5	)		(4	)
Gains (losses) on condominium sales, net of minority interest	$	(104	)	$	(109	)	$	379		$	221

(5) 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 December 31, 2007, there were 44,295 units of the Operating Partnership outstanding, of which 43,825, or 98.9%, were owned by the Company.

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						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
Net income available to common shareholders	$	77,333		$	44,974		$	171,062		$	93,832
Minority interest of common unitholders - continuing operations		419			74			1,491			418
Minority interest in discontinued operations (1)		606			741			903			1,399
Depreciation on consolidated real estate assets (2)		16,241			16,645			65,560			66,574
Depreciation on real estate assets held in unconsolidated entities		320			227			1,143			906
Gains on sales of real estate assets		(72,588	)		(42,448	)		(157,620	)		(80,927	)
Incremental gains on condominium sales		382			174			6,922			1,406
Gains on sales of real estate assets — unconsolidated entities		(16	)		(236	)		(186	)		(482	)
Incremental gains on condominium sales - unconsolidated entities (3)		16			141			107			96
Funds from operations available to common shareholders and unitholders (A)	$	22,713		$	20,292		$	89,382		$	83,222
Funds from operations available to common shareholders and unitholders (A)	$	22,713		$	20,292		$	89,382		$	83,222
Annually recurring capital expenditures		(2,295	)		(2,002	)		(11,110	)		(11,145	)
Periodically recurring capital expenditures		(2,828	)		(1,518	)		(8,451	)		(5,964	)
Non-cash straight-line adjustment for ground lease expenses		255			322			1,193			1,248
Non-cash loss on early extinguishment of indebtedness associated with property sales		124			372			124			495
Non-cash income relating to mark-to-market of interest rate swap agreement		—			—			—			(1,655	)
Adjusted funds from operations available to common shareholders and unitholders (4) (B)	$	17,969		$	17,466		$	71,138		$	66,201
Per Common Share Data — Basic
Funds from operations per share or unit, as defined (A÷C)	$	0.51		$	0.46		$	2.03		$	1.91
Adjusted funds from operations per share or unit (4) (B÷C)	$	0.41		$	0.40		$	1.61		$	1.52
Dividends declared	$	0.45		$	0.45		$	1.80		$	1.80
Weighted average shares outstanding		43,616			43,392			43,491			42,812
Weighted average shares and units outstanding (C)		44,150			44,096			44,101			43,645
Per Common Share Data — Diluted
Funds from operations per share or unit, as defined (A÷D)	$	0.51		$	0.45		$	2.00		$	1.87
Adjusted funds from operations per share or unit (4) (B÷D)	$	0.40		$	0.39		$	1.59		$	1.49
Dividends declared	$	0.45		$	0.45		$	1.80		$	1.80
Weighted average shares outstanding		44,006			44,175			44,129			43,594
Weighted average shares and units outstanding (D)		44,541			44,880			44,738			44,427

(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)	For condominium conversion projects, 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. For condominium development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP. See the table entitled “Summary of Condominium Projects” on 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 $971 and $557 for the three months and $2,903 and $3,480 for the year ended December 31, 2007 and 2006, respectively, are excluded from the calculation of adjusted funds from operations available to common shareholders and unitholders.

6

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 and classified as held for sale, two communities under rehabilitation and three communities converted to joint venture ownership. Same store net operating income is a supplemental non-GAAP financial measure. See Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income. The operating performance and capital expenditures of the 43 communities containing 16,308 apartment units which were fully stabilized as of January 1, 2006, is summarized as follows:

	Three months ended							Year ended
	December 31,							December 31,
	2007		2006		% Change			2007		2006		% Change
Rental and other revenues	$	61,820	$	59,300		4.2	%	$	244,537	$	233,637		4.7	%
Property operating and maintenance expenses (excluding depreciation and amortization)		22,255		21,364		4.2	%		92,337		88,291		4.6	%
Same store net operating income	$	39,565	$	37,936		4.3	%	$	152,200	$	145,346		4.7	%
Capital expenditures (1)
Annually recurring:
Carpet	$	652	$	731		(10.8	)%	$	3,014	$	3,315		(9.1	)%
Other		1,135		825		37.6	%		5,259		5,239		0.4	%
Total annually recurring		1,787		1,556		14.8	%		8,273		8,554		(3.3	)%
Periodically recurring		2,141		952		124.9	%		4,543		2,633		72.5	%
Total capital expenditures (A)	$	3,928	$	2,508		56.6	%	$	12,816	$	11,187		14.6	%
Total capital expenditures per unit (A ÷ 16,308 units)	$	241	$	154		56.5	%	$	786	$	686		14.6	%
Average monthly rental rate per unit (2)	$	1,261	$	1,224		3.0	%	$	1,245	$	1,187		4.9	%

(1)	See Table 3 on page 28 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.

7

Same Store Operating Results by Market –
Comparison of 2007 to 2006
(Increase (decrease) from same period in prior year)

	Three months ended												Year ended
	December 31, 2007												December 31, 2007
										Average												Average
										Economic												Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy			Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		3.8	%		5.8	%		2.8	%		1.5	%		4.0	%		6.4	%		2.6	%		0.7	%
Dallas		6.5	%		4.6	%		7.9	%		3.7	%		4.5	%		0.6	%		7.7	%		1.7	%
Washington, DC		2.2	%		21.7	%		(4.6	)%		0.1	%		2.9	%		3.1	%		2.9	%		(2.1	)%
Tampa		0.4	%		(7.7	)%		6.5	%		(0.2	)%		4.9	%		9.5	%		1.9	%		(1.8	)%
Charlotte		5.6	%		(14.3	)%		15.5	%		0.7	%		5.8	%		(0.3	)%		8.9	%		(0.4	)%
New York		8.5	%		15.8	%		5.7	%		1.3	%		8.8	%		7.0	%		9.5	%		(0.3	)%
Houston		9.3	%		3.8	%		13.3	%		2.9	%		8.3	%		0.9	%		14.9	%		0.3	%
Orlando		(1.0	)%		7.0	%		(5.6	)%		(2.7	)%		3.4	%		16.2	%		(5.1	)%		(2.0	)%
Total		4.2	%		4.2	%		4.3	%		1.4	%		4.7	%		4.6	%		4.7	%		0.0	%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 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						Year ended						Occupancy
	Apartment		December 31,			December 31,						December 31,						at December 31,
Market	Units		2007			2007			2006			2007			2006			2007 (2)
Atlanta		6,457		35.3	%		96.0	%		94.5	%		95.0	%		94.3	%		94.6	%
Dallas		3,464		16.7	%		95.9	%		92.2	%		95.0	%		93.3	%		94.8	%
Washington, DC		1,703		15.2	%		94.5	%		94.4	%		94.5	%		96.6	%		92.5	%
Tampa		1,877		11.0	%		92.8	%		93.0	%		94.0	%		95.8	%		92.2	%
Charlotte		1,388		8.9	%		92.2	%		91.5	%		94.0	%		94.4	%		90.9	%
New York		337		6.8	%		96.8	%		95.5	%		95.8	%		96.1	%		95.0	%
Houston		837		4.6	%		93.5	%		90.6	%		93.4	%		93.1	%		94.3	%
Orlando		245		1.5	%		91.0	%		93.7	%		93.6	%		95.6	%		92.7	%
Total		16,308		100.0	%		94.9	%		93.5	%		94.7	%		94.7	%		93.8	%

(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 94.1% and 92.8% for the three months and 93.9% and 93.8% for the year ended December 31, 2007 and 2006, respectively. For the three months ended December 31, 2007 and 2006, net concessions were $324 and $300, respectively, and employee discounts were $188 and $201, respectively. For the year ended December 31, 2007 and 2006, net concessions were $1,150 and $1,337, respectively, and employee discounts were $781 and $733, respectively.

(2)

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

8

Same Store Sequential Comparison

	Three months ended
	December 31,			September 30,
	2007			2007			% Change
Rental and other revenues	$	61,820		$	62,262			(0.7	)%
Property operating and maintenance expenses (excluding depreciation and amortization)		22,255			24,096			(7.6	)%
Same store net operating income (1)	$	39,565		$	38,166			3.7	%
Average economic occupancy		94.9	%		95.4	%		(0.5	)%
Average monthly rental rate per unit	$	1,261		$	1,253			0.6	%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income.

Sequential Same Store Operating Results by Market –
Comparison of Fourth Quarter of 2007 to Third Quarter 2007
(Increase (decrease) between periods)

										Average
										Economic
Market	Revenues (1)			Expenses (1)			NOI (1)			Occupancy
Atlanta		0.0	%		(9.2	)%		6.2	%		0.5	%
Dallas		(1.1	)%		(6.3	)%		3.0	%		0.1	%
Washington, DC		(1.2	)%		(5.7	)%		0.9	%		(0.8	)%
Tampa		(2.7	)%		(8.3	)%		1.4	%		(1.9	)%
Charlotte		(1.5	)%		(18.7	)%		6.8	%		(3.1	)%
New York		2.1	%		14.3	%		(2.2	)%		0.2	%
Houston		(0.0	)%		(8.6	)%		6.5	%		(1.1	)%
Orlando		(2.5	)%		(5.2	)%		(0.7	)%		(2.2	)%
Total		(0.7	)%		(7.6	)%		3.7	%		(0.5	)%

(1) See Table 2 on page 26 for a reconciliation of these components of same store net operating income and Table 1 on page 25 for a reconciliation of same store net operating income to GAAP net income.

9

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

	December 31,			December 31,
	2007			2006
	(Unaudited)
Assets
Real estate assets
Land	$	276,680		$	278,448
Building and improvements		1,840,563			1,821,123
Furniture, fixtures and equipment		204,433			204,318
Construction in progress		120,062			135,428
Land held for future development		168,680			92,800
		2,610,418			2,532,117
Less: accumulated depreciation		(562,226	)		(547,477	)
For-sale condominiums		38,844			28,295
Assets held for sale, net of accumulated depreciation of $4,031 and $4,035 at December 31, 2007 and December 31, 2006, respectively		24,576			15,645
Total real estate assets		2,111,612			2,028,580
Investments in and advances to unconsolidated real estate entities		23,036			32,794
Cash and cash equivalents		11,557			3,663
Restricted cash		5,642			5,203
Deferred charges, net		10,538			12,400
Other assets		105,756			34,007
Total assets	$	2,268,141		$	2,116,647
Liabilities and shareholders’ equity
Indebtedness	$	1,059,066		$	1,033,779
Accounts payable and accrued expenses		100,215			75,403
Dividend and distribution payable		19,933			19,886
Accrued interest payable		4,388			4,885
Security deposits and prepaid rents		11,708			9,915
Total liabilities		1,195,310			1,143,868
Minority interest of common unitholders in Operating Partnership		10,354			14,057
Minority interests in consolidated real estate entities		3,972			2,268
Total minority interests		14,326			16,325
Commitments and contingencies
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:
43,825 and 43,603 shares issued, 43,825 and 43,486 shares outstanding at December 31, 2007 and December 31, 2006, respectively		438			436
Additional paid-in-capital		874,928			869,587
Accumulated earnings		189,985			97,567
Accumulated other comprehensive income (loss)		(3,962	)		(3,490	)
		1,061,418			964,129
Less common stock in treasury, at cost, 72 and 175 shares at December 31, 2007 and December 31, 2006, respectively		(2,913	)		(7,675	)
Total shareholders’ equity		1,058,505			956,454
Total liabilities and shareholders’ equity	$	2,268,141		$	2,116,647

10

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

Summary of Outstanding Debt at December 31, 2007

						Weighted Average Rate (1)
			Percentage			Three months ended December 31,
Type of Indebtedness	Balance		of Total			2007			2006
Unsecured fixed rate senior notes	$	535,000		50.5	%		6.4	%		6.4	%
Secured conventional fixed rate notes		266,791		25.2	%		5.8	%		6.2	%
Unsecured lines of credit		257,275		24.3	%		5.3	%		5.6	%
Secured tax exempt variable rate notes		—		0.0	%		3.5	%		3.6	%
	$	1,059,066		100.0	%		6.0	%		6.2	%

			Percentage			Weighted Average Maturity
	Balance		of Total Debt			of Total Debt (2)
Total fixed rate debt	$	801,791		75.7	%		5.9
Total variable rate debt		257,275		24.3	%		2.3
Total debt	$	1,059,066		100.0	%		5.0

Debt Maturities

				Weighted Average Rate
Aggregate debt maturities by year	Amount			on Debt Maturities (1)
2008	$	5,230			5.9	%
2009		76,618			5.5	%
2010		445,903	(3)		6.3	%
2011		141,431			5.4	%
2012		103,296			5.5	%
Thereafter		286,588			6.1	%
	$	1,059,066

Debt Statistics

	Year ended
	December 31,
	2007			2006
Interest coverage ratio (4)(5)		2.6x			2.6x
Fixed charge coverage ratio (4)(6)		2.3x			2.2x
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		40.4	%		39.9	%
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partner’s share of debt) (7)		43.8	%		43.6	%

(1)	Weighted average rate includes credit enhancements and other fees, where applicable. The weighted average rates for the three months ended December 31, 2006 are based on the debt outstanding for that period.
(2)	Weighted average maturity of total debt represents number of years to maturity based on the debt maturities schedule above.
(3)	Includes outstanding balances on lines of credit of $257,275 maturing in 2010.
(4)	Calculated for the year ended December 31, 2007 and 2006.
(5)	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 29.
(6)	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 29.
(7)	A computation of the debt ratios is included in Table 5 on page 30.

11

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)	December 31, 2007
Consolidated Debt to Total Assets cannot exceed 60%		38	%
Secured Debt to Total Assets cannot exceed 40%		9	%
Total Unencumbered Assets to Unsecured Debt must be at least 1.5/1		3.0	x
Consolidated Income Available for Debt Service Charge must be at least 1.5/1		2.6	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.

Ratio of Consolidated Debt to Total Assets

	As of
	December 31, 2007
Consolidated debt, per balance sheet (A)	$	1,059,066
Total assets, as defined (B) (Table A)	$	2,823,860
Computed ratio (A÷B)		38	%
Required ratio (cannot exceed)		60	%

Ratio of Secured Debt to Total Assets

Secured conventional fixed and variable rate notes	$	266,791
Secured tax exempt variable rate notes		—
Total secured debt (C)	$	266,791
Computed ratio (C÷B)		9	%
Required ratio (cannot exceed)		40	%

Ratio of Total Unencumbered Assets to Unsecured Debt

Consolidated debt, per balance sheet (A)	$	1,059,066
Total secured debt (C)		(266,791	)
Total unsecured debt (D)	$	792,275
Total unencumbered assets, as defined (E) (Table A)	$	2,376,984
Computed ratio (E÷D)		3.0	x
Required minimum ratio		1.5	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)	$	145,374
Annual Debt Service Charge, as defined (G) (Table B)	$	55,393
Computed ratio (F÷G)		2.6x
Required minimum ratio		1.5x

12

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
	December 31, 2007
Total real estate assets	$	2,111,612
Add:
Investments in and advances to unconsolidated real estate entities		23,036
Accumulated depreciation		562,226
Accumulated depreciation on assets held for sale		4,031
Other tangible assets		122,955
Total assets for public debt covenant computations		2,823,860
Less:
Encumbered real estate assets		(446,876	)
Total unencumbered assets for public debt covenant computations	$	2,376,984

Table B

Calculation of Consolidated Income Available for Debt Service and Annual Debt Service Change for Public Covenant Computations

	Year ended
	December 31, 2007
Consolidated income available for debt service
Net income	$	178,699
Add:
Minority interest of common unitholders		2,394
Income before minority interest and provision for income taxes		181,093
Add:
Depreciation		66,371
Depreciation (company share) of assets held in unconsolidated entities		1,143
Depreciation of discontinued operations		1,069
Amortization of deferred financing costs		3,297
Interest expense		52,116
Interest expense (company share) of assets held in unconsolidated entities		1,760
Interest expense of discontinued operations		1,517
Less:
Gains on sales of real estate assets, net — continuing operations		(100,015	)
Gains on sales of real estate assets — discontinued operations		(62,791	)
Gains on sales of real estate assets — unconsolidated entities		(186	)
Consolidated income available for debt service	$	145,374
Annual debt service charge
Consolidated interest expense	$	52,116
Interest expense (company share) of assets held in unconsolidated entities		1,760
Interest expense of discontinued operations		1,517
Annual debt service charge	$	55,393

13

Post Properties, Inc.
Summary Of Communities Under Construction
($ in millions)

														Costs						Estimated
												Company		Incurred		Quarter		Quarter of		Quarter of				Estimated		Units
		Number				Company			Estimated			Share of		as of		of Const.		First Units		Stabilized		Units		Quarter		Under		Units
Community	Location	of Units		Retail Sq. Ft.		Ownership			Cost			Est. Cost		12/31/07		Start		Available		Occupancy (1)		Leased (2)		Sell-out		Contract (3)		Closed (2)
														(Company
														Share)
Apartments (7):
Post Alexander™	Atlanta, GA		307		—		100	%	$	62.4		$	62.4	$	39.8		2Q 2006		1Q 2008		2Q 2009		—		N/A		N/A		N/A
Post Walk® at Citrus Park Village	Tampa, FL		296		—		100	%		41.6			41.6		8.6		1Q 2008		1Q 2009		1Q 2010		—		N/A		N/A		N/A
Post Eastside™	Dallas, TX		435		37,900		100	%		56.7			56.7		21.8		4Q 2006		2Q 2008		4Q 2009		—		N/A		N/A		N/A
Post Hyde Park® (expansion)	Tampa, FL		84		—		100	%		18.8	(4)		18.8		14.9		4Q 2006		4Q 2007		3Q 2008		21		N/A		N/A		N/A
Post Frisco Bridges™	Dallas, TX		269		29,000		100	%		41.3			41.3		7.8		3Q 2007		4Q 2008		2Q 2010		—		N/A		N/A		N/A
Post Park®	Wash. DC		396		1,700		100	%		84.7			84.7		14.1		4Q 2007		1Q 2009		2Q 2010				N/A		N/A		N/A
Post West Austin™	Austin, TX		329		—		100	%		53.2			53.2		13.8		4Q 2007		1Q 2009		3Q 2009		—		N/A		N/A		N/A
Total Apartments			2,116		68,600				$	358.7		$	358.7	$	120.8								21
Condominiums (6):
The Residences at 3630 Peachtree™ (5)	Atlanta, GA		137		—		50	%	$	93.4		$	47.6	$	11.1		3Q 2007		3Q 2009		N/A		N/A		4Q 2010		—		—
Four Seasons Residences	Austin, TX		168		8,000		100	%		133.5			133.5		18.9		1Q 2008		4Q 2009		N/A		N/A		4Q 2010		54		—
Total Condominiums			305		8,000				$	226.9		$	181.1	$	30.0												54		—

(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)	As of January 28, 2008.
(3)	As of January 28, 2008, represents the total number of units under contract for sale upon completion and delivery of the units. There can be no assurance that condominium units under contract will close.
(4)	Total estimated construction costs for the Post Hyde Park® expansion include the estimated replacement costs of six apartment units at the Company’s existing Hyde Park community that were demolished to accommodate the expansion.
(5)	The amounts reflected for this project represent the condominium portion of a mixed-use development currently being developed in an entity owned with other third-party developers. This condominium portion of the project is co-owned with an Atlanta-based condominium development partner.
(6)	Investments were generally underwritten to achieve targeted yields of approximately 6.00%-6.75% for apartment developments and approximately 20% pre-tax margins on estimated costs for condominium developments. Targeted yields for apartment developments represents the projected unlevered property net operating income (after adjustments for 3% management fee and $300 per unit capital reserves) as a percentage of total estimated construction costs. Targeted pre-tax margins for condominium developments represent projected pre-tax profits from condominium sales activities as a percentage of total estimated construction costs. There can be no assurance that these targets will be achieved.

14

Post Properties, Inc.
Summary of Future Projects In Pre-Development

The following are future projects for which the Company is currently in pre-development with the intent generally to begin construction in the next 12-18 months, subject to the availability of financing. The Company’s previous announcement about a possible business combination could impact the Company’s pre-development projects. The estimates and assumptions detailed below, including the timing of construction starts, the approximate number of units, the mix of unit types, approximate retail square footage and approximate total projected development costs, are forward-looking and are subject to risks outlined on page 2 of this supplemental financial data. There can be no assurance that projects in pre-development will commence construction on the projected timeline or at all, that the number of units, square footage or intended use of the product will not change in the future or that development costs will not differ materially from the estimates provided below. The Company assumes no obligation to update this outlook in the future.

		Estimated Units				Estimated Retail
Project	Metro Area	For Rent		For Sale		Square Feet
Allen Plaza I	Atlanta, GA		463		—		24,000
South Lamar	Austin, TX		302		—		10,000
Post Morningside™ (1)	Charlotte, NC		400		—		25,000
Post Plaza South™ (1)	Charlotte, NC		425		—		25,000
Post Midtown Square® III	Houston, TX		124		—		11,000
Post Richmond™	Houston, TX		232		—		—
Post Lake® at Baldwin Park	Orlando, FL		410		—		—
Wade I	Raleigh, NC		432		—		80,000	(2)
Post Soho Square™	Tampa, FL		192		—		17,000
Post Carlyle Square™ II	Washington, D.C.		332		—		6,000
			3,312		—		198,000

Approx. Projected Total
Development Costs ($ in millions) (3)
For Rent		For Sale
$	750		—

(1)	Site under contract to purchase. There can be no assurance that this land purchase will close.
(2)	The Company currently expects to develop the retail portion of this project in a partnership with a retail developer. The Company’s share of projected development costs is included in total projected development costs.
(3)	The projected project costs of proposed retail component are included in the total projected development costs of the for-rent and for sale components, as applicable. For rent component includes projected costs of other mixed-use components, as applicable.

15

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

								Average Monthly Rental				Property NOI		Property NOI						Number of Units
								Rate Per Sq. Ft. (1)				For the Fiscal		For the		Undepreciated		Projected		As of December 31, 2007
						Average		Actual		Projected		Year Preceding		Three Months		Book Value		Total
		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		December 31, 2007		Rehabilitation		Capital Cost (2)		Completed		of Service
Post Chastain®	Atlanta, GA		1990		558		867	$	1.09	$	1.29	$	3,693	$	772	$	48,133	$	16,300		503		55
Post Worthington™	Dallas, TX		1993		332		819	$	1.32	$	1.58	$	2,384	$	774		41,139		12,700		332		—
					890											$	89,272	$	29,000		835		55

	Rehabilitation Cost Incurred in												Projected
	The Three Months Ended						Rehabilitation Capital Cost Incurred						Remaining
	December 31, 2007						As of December 31, 2007						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®	$	2,385	$	—	$	2,385	$	13,983	$	457	$	14,440	$	1,860		2Q 2006		2Q 2008		4Q 2008
Post Worthington™		43		105		148		9,731		2,850		12,581		119		1Q 2006		3Q 2007		4Q 2007	(3)
	$	2,428	$	105	$	2,533	$	23,714	$	3,307	$	27,021	$	1,979

(1)	Average square footage information is based on approximate amounts and individual unit sizes may vary. There can be no assurance that the projected average monthly rental rates after the rehabilitation will be achieved.
(2)	Includes approximately $3,500 of projected non-revenue generating capital costs.
(3)	Post Worthington™ achieved stabilized occupancy by year-end and will be classified as a partially stabilized community effective January 1, 2008.

16

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

																		Units (4)
								# of Rental Units		Average				Transfer Price/Est.		Book Value
		Year		Sale		Total		Occupied as of		Unit		Project Transfer		Cost		as of						Under		Available
Project	Location	Completed		Start Date		Units		12/31/2007		Sq. Ft. (1)		Price/Est. Cost (2)		Per Unit		12/31/2007 (3)		Total		Closed		Contract		for Sale
Condominium Conversion Projects
588TM	Dallas, TX		2000		Q1 2005		127		—		1,470	$	20,274	$	160	$	—		127		127		—		—
The Peachtree ResidencesTM (5)	Atlanta, GA		2001		Q2 2005		121		—		1,340		30,190		250		—		121		121		—		—
Harbour Place City Homes™	Tampa, FL		1999		Q2 2006		206		—		1,036		37,000		180		4,608		206		153		1		52
RISETM	Houston, TX		2000		Q2 2006		143		48		1,407		26,250		184		11,820		143		76		2		65
Condominium Development Projects
The Condominiums at Carlyle Square™	Washington, DC		2007		2Q2007		145		N/A		855		46,200		319		11,568		145		103		6		36
Mercer Square™	Dallas, TX		2007		3Q2007		85		N/A		1,094		18,600		218		10,848		85		29		1		55
							827									$	38,844		827		609		10		208

Financial Summary — Aggregate Condominium Activity

	Three months ended							Three months ended							Year ended							Year ended							Cumulative through
	December 31, 2007							December 31, 2006							December 31, 2007							December 31, 2006							December 31, 2007
					FFO							FFO							FFO							FFO							FFO
					Incremental							Incremental							Incremental							Incremental							Incremental
	Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on			Units		Gross		Gain on
Project	Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)(7)			Closed		Revenues		Sale (6)
Condominium Conversion Projects
588TM		—	$	—	$	(106	)		1	$	300	$	(112	)		1	$	560	$	73			23	$	7,322	$	225			127	$	34,557	$	3,526
The Peachtree ResidencesTM (5)		—		—		16			13		5,344		141			12		4,592		107			64		21,857		96			121		41,547		562
Harbour Place City Homes™		4		881		(830	)		14		3,744		356			55		12,963		(2,220	)		97		24,772		1,674			152		37,745		(546	)
RISETM		7		1,567		(486	)		18		4,378		237			38		10,023		(861	)		35		8,520		141			73		18,544		(720	)
Condominium Development Projects
The Condominiums at Carlyle Square™		27		10,328		1,772			—		1		(130	)		101		46,252		8,673			—		72		(423	)		101		46,323		7,767
Mercer Square™		11		3,082		97			—		—		(68	)		28		8,212		285			—		—		(68	)		28		8,212		217
		49		15,858		463			46		13,767		424			235		82,602		6,057			219		62,543		1,635			602		186,928		10,806
Other		—		8		(401	)		—		—		(109	)		—		8		(548	)		—		—		(143	)		—		8		(638	)
Total		49	$	15,866	$	62			46	$	13,767	$	315			235	$	82,610	$	5,509			219	$	62,543	$	1,502			602	$	186,936	$	10,168

(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 at conversion projects 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 the Company’s share of total estimated construction costs of ground-up condominiums being developed and not yet in active sales (see page 14) of approximately $181.1 million and book value of unsold condominiums above, committed capital to the condominium business at December 31, 2007 totaled approximately $219.9 million.
(4)	Unit status is as of January 28, 2008. 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)	For conversion projects, 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 exceed the “transfer price” as described in note 2 above. For development projects, gains on condominium sales in FFO are equivalent to gains reported under GAAP.
(7)	For co-investment projects, amounts are net of minority interests of $336 and $1,520 for the three months and year ended December 31, 2007, respectively. Excludes the impact of income tax expense attributable to gains on condominium sales, as applicable. There was no income tax provision for the three months and year ended December 31, 2007 and 2006.

17

Post Properties, Inc.
Community Acquisition and Disposition Summary

						Gross Amount		Gross
Property Name/Period	Location	Units		Year Built		Per Unit		Amount
Acquisitions
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
Q3 2006
Post Fallsgrove	Washington D.C. Area		361		2003	$	227,465		82,115,000	(1)
Q4 2006
Post Bay at Rocky Point™	Tampa, FL		150		1997	$	155,000		23,250,000
2006 YTD Total								$	151,615,000
Average Cap Rate - Acquisitions - 2006									4.6	% (2)
Q3 2007
Post Lake® at Baldwin Park	Orlando, FL		350		2004 - 2007	$	211,429	$	74,000,000
2007 YTD Total								$	74,000,000
Average Cap Rate - Acquisitions - 2007									4.5%	(2)
Dispositions
Q3 2006
Post Uptown Square™	Denver, CO		696		1999-2001	$	169,540	$	118,000,000
Q4 2006
Post Summit®	Atlanta, GA		148		1990	$	107,365		15,890,000
Post Valley®	Atlanta, GA		496		1988	$	82,379		40,860,000
2006 YTD Total								$	174,750,000
Average Cap Rate - Dispositions - 2006									4.7	% (3)
Q1 2007
Post Oak™	Atlanta, GA		182		1993	$	131,868	$	24,000,000
Q2 2007
Post Collier Hills®	Atlanta, GA		396		1997	$	140,327		41,677,000	(4)
Post Crest®	Atlanta, GA		410		1996	$	158,125		48,623,000	(4)
Q4 2007
Post Ashford®	Atlanta, GA		222		1987	$	103,603		23,000,000
Post Lindbergh®	Atlanta, GA		396		1998	$	154,542		45,899,000	(4)
Post Vinings®	Atlanta, GA		403		1989-1991	$	111,166		44,800,000
2007 YTD Total								$	227,999,000
Average Cap Rate - Dispositions - 2007									5.0	% (3)

(1)	The Company may be required to pay additional purchase consideration of up to $6.6 million based on a share of the appreciation in the value of the community, if any, over the next four years.
(2)	Based on projected first twelve-month net operating income upon achievement of stabilized operations (as it relates to Post Bay at Rocky Point™ and the second phase of Post Lake® at Baldwin Park which are in lease-up) and after adjustment for management fee (3.0%) and capital reserves ($300/unit). Also assumes that the Company will initially spend up to $9.9 million (Post Barton Creek™/Park Mesa™ - $1.2 million, Post Fallsgrove — $3.3 million, Post Bay at Rocky Point™ — $2.5 million, Post Lake® at Baldwin Park — $2.9 million) relating to closing costs and other amounts it plans to spend to improve these communities.
(3)	Based on trailing twelve-month net operating income after adjustments for management fee (3.0%) and capital reserves ($300/unit).
(4)	The Company transferred these communities to a newly formed unconsolidated entity, in which the Company retained a 25% interest. These amounts reflect the portion of the gross transfer price effectively acquired by the institutional investor.

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, construction and rehabilitation of apartment and condominium 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 operating communities, unless those communities are under major rehabilitation.

The Company capitalizes interest, real estate taxes, and certain internal personnel and associated costs related to apartment and condominium communities under development, construction, and major rehabilitation. The internal personnel and associated costs are capitalized to the projects under development based upon the effort identifiable with such projects. The Company treats each unit in an apartment and condominium community separately for cost accumulation, capitalization and expense recognition purposes. Prior to the commencement of leasing and sales activities, interest and other construction costs are capitalized and are reflected on the balance sheet as construction in progress. The Company ceases the capitalization of such costs as the residential units in a community become substantially complete and available for occupancy. This results in a proration of these costs between amounts that are capitalized and expensed as the residential units in a development community become available for occupancy. In addition, prior to the completion of units, the Company expenses as incurred substantially all operating expenses (including pre-opening marketing and property management and leasing personnel expenses) of such communities.

A summary of community acquisition and development improvements and other capitalized expenditures for the three months and year ended December 31, 2007 and 2006 is detailed below.

	Three months ended				Year ended
	December 31,				December 31,
	2007		2006		2007		2006
Development and acquisition expenditures (1)	$	42,731	$	109,210	$	284,239	$	295,979
Periodically recurring capital expenditures
Community rehabilitation and other revenue generating improvements (2)		2,428		4,151		13,074		10,641
Other community additions and improvements (3)		2,828		1,518		8,451		5,964
Annually recurring capital expenditures
Carpet replacements and other community additions and improvements (4)		2,295		2,002		11,110		11,145
Corporate additions and improvements		971		557		2,903		3,480
	$	51,253	$	117,438	$	319,777	$	327,209
Other Data
Capitalized interest	$	3,143	$	2,881	$	11,801	$	9,942
Capitalized development and associated costs (5)	$	1,304	$	518	$	4,053	$	1,884

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

19

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

Apartments and Condominium Conversion/Development Communities

The Company holds investments in five limited liability companies (the “Property LLCs”) with institutional investors and accounts for its investments in these Property LLCs using the equity method of accounting. A summary of non-financial and financial information for the Property LLCs is as follows:

Non-Financial Data

		Property			Ownership
Joint Venture Property	Location	Type	# of Units		Interest
Post Collier Hills® (1)	Atlanta, GA	Apartments		396		25	%
Post Crest® (1)	Atlanta, GA	Apartments		410		25	%
Post Lindbergh® (1)	Atlanta, GA	Apartments		396		25	%
Post Biltmore™	Atlanta, GA	Apartments		276		35	%
Post Massachusetts Avenue™	Washington, D.C.	Apartments		269		35	%
The Peachtree Residences™	Atlanta, GA	Condominiums		121		35	%
The Residences at 3630 Peachtree™ (2)	Atlanta, GA	Condominiums		137		50	%

Financial Data

	As of										Three months ended						Year ended
	December 31, 2007										December 31, 2007						December 31, 2007
	Gross Investment		Mortgage/Construction			Entity		Company’s Equity			Entity			Company’s			Entity			Company’s
Joint Venture Property	in Real Estate (8)		Notes Payable			Equity		Investment			NOI			Equity in Earnings			NOI			Equity in Earnings
Post Collier Hills® (1)	$	54,388	$	39,565	(3)	$	14,806	$	(3,863	) (1)	$	763		$	19		$	1,845		$	28
Post Crest® (1)		63,601		46,159	(3)		17,288		(6,208	) (1)		769			(6	)		1,959			(10	)
Post Lindbergh® (1)		60,056		41,000	(4)		20,930		(3,617	) (1)		113			1			113			1
Post Biltmore™		36,167		17,000	(5)		14,571		7,008			633			101			2,564			405
Post Massachusetts Avenue™		69,028		49,997	(6)		10,955		7,139			1,468			230			5,709			943
The Peachtree Residences™		—		—			128		45			—			18			—			212
The Residences at 3630 Peachtree™ (2)		57,668		20,829	(7)		34,191		8,844			(149	)		(23	)		(149	)		(23	)
Total	$	340,908	$	214,550		$	112,869	$	9,348		$	3,597		$	340		$	12,041		$	1,556

(1)	In 2007, the Company’s investment in the 25% owned Property LLC resulted from the transfer of three previously owned apartment communities to the Property LLC co-owned with an institutional investor. The assets, liabilities and members’ equity of the Property LLC were recorded at fair value based on agreed-upon amounts contributed to the venture. The credit investments in the Company’s 25% owned Property LLC resulted from financing proceeds distributed in excess of the Company’s historical cost-basis investment. These credit investments are reflected in consolidated liabilities on the Company’s consolidated balance sheet.
(2)	This project commenced construction during the third quarter of 2007 and is expected to be completed in 2009. The development will consist of for-sale condominiums and class A office space. The Company only holds a 50% equity interest in the for-sale condominium portion of the project. Consequently, the Company’s share of gross real estate assets and mortgage/construction notes payable was $14,904 and $5,829, respectively. See page 14 for information regarding the for-sale condominium portion of the project.
(3)	These notes bear interest at a fixed rate of 5.63% and mature in 2017.
(4)	This note bears interest at a fixed rate of 5.71% and matures in 2017.
(5)	This note bears interest at a fixed rate of 4.04% and matures in 2008.
(6)	This note bears interest at a fixed rate of 4.13% and 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.
(7)	At December 31, 2007, $20,829 was outstanding under a $187,128 construction loan facility bearing interest at a variable rate of LIBOR plus 1.35%.
(8)	Represents GAAP basis net book value plus accumulated depreciation.

20

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 (“NOI”), which is a supplemental non-GAAP financial measure that the Company uses internally to calculate Net Asset Value (“NAV”). These measures, as adjusted, are also non-GAAP financial measures. With the exception of NOI, the most comparable GAAP measure for each of the non-GAAP measures presented below in the “As Adjusted” column is the corresponding number presented in the first column listed below.

The Company presents below NOI for the quarter ended December 31, 2007 for properties stabilized by October 1, 2007 so that a capitalization rate may be applied and an approximate value for the assets determined. Properties not stabilized by October 1, 2007 are presented at full undepreciated cost. Other tangible assets, total liabilities and the liquidation value of preferred shares are also presented.

Financial Data
(In thousands)

	Three months ended					As
Income Statement Data	December 31, 2007		Adjustments			Adjusted
Rental revenues	$	74,141	$	(7,017	) (1)	$	67,124
Other property revenues		3,779		(332	) (1)		3,447
Total rental and other revenues (A)		77,920		(7,349	)		70,571
Property operating & maintenance expenses (excluding depreciation and amortization) (B)		34,747		(9,508	) (1)		25,239
Property net operating income (Table 1) (A-B)	$	43,173	$	2,159		$	45,332
Assumed property management fee (calculated at 3% of revenues) (A x 3%)							(2,117	)
Assumed property capital expenditure reserve ($300 per unit per year based on 17,611 units)							(1,321	)
Adjusted property net operating income						$	41,894
Annualized property net operating income (C)						$	167,576
Apartment units represented		22,578		(4,967	) (1)		17,611

	As of					As
Other Asset Data	December 31, 2007		Adjustments			Adjusted
Cash & equivalents	$	11,557				$	11,557
Real estate assets under construction, lease-up, conversion or rehabilitation, at cost (2)		120,062		282,461	(2)		402,523
Land held for future development		168,680					168,680
For-sale condominiums and assets held for sale (3)		63,420		(17,003	) (3)		46,417
Investments in and advances to unconsolidated real estate entities (4)		23,036		(8,132	) (4)		14,904
Restricted cash and other assets		111,398					111,398
Cash & other assets of unconsolidated real estate entities (5)		7,255		(5,174	) (5)		2,081
Total (D)	$	505,408	$	252,152		$	757,560
Other Liability Data
Other notes payable	$	1,059,066				$	1,059,066
Other liabilities (6)		140,216		(26,183	) (6)		114,033
Total liabilities of unconsolidated real estate entities (7)		220,091		(157,388	) (7)		62,703
Total (E)	$	1,419,373	$	(183,571	)	$	1,235,802

21

Other Data

	As of December 31, 2007
	# Shares/Units		Stock Price		Implied Value
Liquidation value of preferred shares (F)					$	95,000
Common shares outstanding		43,825
Common units outstanding		470
Total (G)		44,295	$	35.12	$	1,555,640
Implied market value of Company gross real estate assets (H) = (E+F+G-D)					$	2,128,882
Implied Portfolio Capitalization Rate (C÷H)						7.9	%

(1) The following table summarizes the adjustments made to the components of property net operating income for the three months ended December 31, 2007 to adjust property net operating income to the Company’s share for fully stabilized communities:

	Rental Revenue			Other Revenue			Expenses			Units
Under construction, lease-up, conversion or rehabilitation	$	(5,714	)	$	(293	)	$	(2,621	)		(3,711	)
Corporate property management expenses		—			—			(4,582	)		—
Company share of unconsolidated entities		869			38			251			(1,256	)
Held for sale operating properties		557			29			293			—
Corporate apartments and other		(2,729	)		(106	)		(2,849	)		—
	$	(7,017	)	$	(332	)	$	(9,508	)		(4,967	)

(2)	The “As Adjusted” amount represents CIP balance per the Company’s balance sheet plus the costs of properties under construction and lease-up that have been transferred to operating real estate assets as apartment units are completed, plus the gross book value for communities under rehabilitation during the fourth quarter of 2007.
(3)	The adjustment reflects a reduction for the depreciated book value of one apartment community held for sale and included in discontinued operations at December 31, 2007, as the net property operating income of this community has been included in adjusted property net operating income reflected above (see note 1).
(4)	The adjustment reflects a reduction for the investments in unconsolidated entities for entities with operating real estate assets as the Company’s net operating income of such investments is included in the adjusted net operating income reflected above, plus an adjustment to increase the Company’s investment in The Residences at 3630 Peachtree™ to the Company’s proportionate share of the real estate assets of such entity. The “As Adjusted” amount represents the Company’s share of the total assets of The Residences at 3630 Peachtree™.
(5)	The “As of December 31, 2007” amount represents cash and other assets of unconsolidated apartment and condominium entities. The adjustment includes a reduction for the venture partners’ respective share of cash and other assets of the Company’s unconsolidated apartment and condominium entities. The “As Adjusted” amount represents the Company’s respective share of the cash and other assets of unconsolidated apartment and condominium entities.
(6)	The “As of December 31, 2007” amount consists of the sum of accrued interest payable, dividends and distributions payable, accounts payable and accrued expenses, security deposits and prepaid rents, credit investment balances of the Company’s investment in unconsolidated entities and minority interests in consolidated real estate entities 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 of $12,495 and for credit investment balances of the Company’s investment in three unconsolidated entities of $13,688.
(7)	The “As of December 31, 2007” amount represents total liabilities of unconsolidated apartment and condominium entities. The adjustment represents a reduction for the venture partner’s respective share of liabilities of unconsolidated apartment entities. The “As Adjusted” amount represents the Company’s respective share of liabilities of unconsolidated apartment and condominium entities.

22

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 and certain debt statistics and ratios. The definitions of these non-GAAP financial measures are summarized below. The Company believes that these measures are helpful to investors in measuring financial performance and/or liquidity and comparing such performance and/or liquidity to other REITs.

Funds from Operations — The Company uses FFO as an operating measure. The Company uses the NAREIT definition of FFO. FFO is defined by NAREIT to mean net income (loss) available to common shareholders determined in accordance with GAAP, excluding gains (losses) from extraordinary items and sales of depreciable operating property, plus depreciation and amortization of real estate assets, 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 after adjusting for the non-cash impact of straight-line long-term ground lease expense and other income related to mark-to-market of an interest rate swap arrangement. 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.

23

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.”

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.

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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									Year ended
	December 31,			December 31,			September 30,			December 31,			December 31,
	2007			2006			2007			2007			2006
Total same store NOI	$	39,565		$	37,936		$	38,166		$	152,200		$	145,346
Property NOI from other operating segments		3,608			2,983			3,960			13,598			12,307
Consolidated property NOI		43,173			40,919			42,126			165,798			157,653
Add (subtract):
Interest income		170			279			189			822			1,261
Other revenues		186			202			171			602			402
Minority interest in consolidated property partnerships		(441	)		(80	)		(585	)		(1,857	)		(257	)
Depreciation		(16,461	)		(16,813	)		(16,638	)		(66,371	)		(65,687	)
Interest expense		(13,266	)		(12,801	)		(12,831	)		(52,116	)		(52,533	)
Amortization of deferred financing costs		(828	)		(875	)		(828	)		(3,297	)		(3,526	)
General and administrative		(5,169	)		(5,038	)		(4,761	)		(21,337	)		(18,502	)
Investment and development		(1,551	)		(1,924	)		(2,006	)		(7,063	)		(6,424	)
Gains on sales of real estate assets, net		28,509			2,356			5,061			100,015			12,881
Equity in income of unconsolidated real estate entities		340			562			402			1,556			1,813
Other income (expense)		(314	)		—			(262	)		(1,098	)		2,592
Minority interest of common unitholders		(419	)		(74	)		(91	)		(1,491	)		(418	)
Income from continuing operations		33,929			6,713			9,947			114,163			29,255
Income from discontinued operations		45,313			40,170			1,102			64,536			72,214
Net income	$	79,242		$	46,883		$	11,049		$	178,699		$	101,469

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

	Three Months Ended						Q4 ’07			Q4 ’07			Q4 ’07
	December 31,		December 31,		September 30,		vs. Q4 ’06			vs. Q3 ’07			% Same
	2007		2006		2007		% Change			% Change			Store NOI
Rental and other revenues
Atlanta	$	22,002	$	21,187	$	21,997		3.8	%		0.0	%
Dallas		11,273		10,584		11,393		6.5	%		(1.1	)%
Washington, D.C.		8,693		8,505		8,799		2.2	%		(1.2	)%
Tampa		7,198		7,171		7,395		0.4	%		(2.7	)%
Charlotte		4,835		4,578		4,909		5.6	%		(1.5	)%
New York		3,806		3,509		3,729		8.5	%		2.1	%
Houston		3,006		2,749		3,007		9.3	%		(0.0	)%
Orlando		1,007		1,017		1,033		(1.0	)%		(2.5	)%
Total rental and other revenues		61,820		59,300		62,262		4.2	%		(0.7	)%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		8,051		7,612		8,862		5.8	%		(9.2	)%
Dallas		4,665		4,459		4,980		4.6	%		(6.3	)%
Washington, D.C.		2,683		2,204		2,845		21.7	%		(5.7	)%
Tampa		2,858		3,095		3,116		(7.7	)%		(8.3	)%
Charlotte		1,298		1,515		1,597		(14.3	)%		(18.7	)%
New York		1,104		953		966		15.8	%		14.3	%
Houston		1,197		1,153		1,309		3.8	%		(8.6	)%
Orlando		399		373		421		7.0	%		(5.2	)%
Total		22,255		21,364		24,096		4.2	%		(7.6	)%
Net operating income
Atlanta		13,951		13,575		13,135		2.8	%		6.2	%		35.3	%
Dallas		6,608		6,125		6,413		7.9	%		3.0	%		16.7	%
Washington, D.C.		6,010		6,301		5,954		(4.6	)%		0.9	%		15.2	%
Tampa		4,340		4,076		4,279		6.5	%		1.4	%		11.0	%
Charlotte		3,537		3,063		3,312		15.5	%		6.8	%		8.9	%
New York		2,702		2,556		2,763		5.7	%		(2.2	)%		6.8	%
Houston		1,809		1,596		1,698		13.3	%		6.5	%		4.6	%
Orlando		608		644		612		(5.6	)%		(0.7	)%		1.5	%
Total same store NOI	$	39,565	$	37,936	$	38,166		4.3	%		3.7	%		100.0	%

26

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

	Year ended
	December 31,		December 31,
	2007		2006		% Change
Rental and other revenues
Atlanta	$	86,606	$	83,252		4.0	%
Dallas		44,325		42,396		4.5	%
Washington, D.C.		34,574		33,584		2.9	%
Tampa		29,261		27,902		4.9	%
Charlotte		19,201		18,155		5.8	%
New York		14,694		13,509		8.8	%
Houston		11,751		10,848		8.3	%
Orlando		4,125		3,991		3.4	%
Total rental and other revenues		244,537		233,637		4.7	%
Property operating and maintenance expenses (exclusive of depreciation and amortization)
Atlanta		33,339		31,322		6.4	%
Dallas		19,002		18,883		0.6	%
Washington, D.C.		10,942		10,618		3.1	%
Tampa		11,872		10,839		9.5	%
Charlotte		6,109		6,128		(0.3	)%
New York		4,115		3,844		7.0	%
Houston		5,125		5,080		0.9	%
Orlando		1,833		1,577		16.2	%
Total		92,337		88,291		4.6	%
Net operating income
Atlanta		53,267		51,930		2.6	%
Dallas		25,323		23,513		7.7	%
Washington, D.C.		23,632		22,966		2.9	%
Tampa		17,389		17,063		1.9	%
Charlotte		13,092		12,027		8.9	%
New York		10,579		9,665		9.5	%
Houston		6,626		5,768		14.9	%
Orlando		2,292		2,414		(5.1	)%
Total same store NOI	$	152,200	$	145,346		4.7	%

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

	Three months ended				Year ended
	December 31,				December 31,
	2007		2006		2007		2006
Annually recurring capital expenditures by operating segment
Same store	$	1,787	$	1,556	$	8,273	$	8,554
Development, rehabilitation and lease-up		152		129		809		503
Condominium conversion and other		59		103		731		569
Acquired		178		60		519		213
Other segments		119		154		778		1,306
Total annually recurring capital expenditures per statements of cash flows	$	2,295	$	2,002	$	11,110	$	11,145
Periodically recurring capital expenditures by operating segment
Same store	$	2,141	$	952	$	4,543	$	2,633
Development, rehabilitation and lease-up		125		278		2,660		702
Condominium conversion and other		340		22		758		147
Acquired		11		1		21		5
Other segments		211		265		469		2,477
Total periodically recurring capital expenditures per statements of cash flows	$	2,828	$	1,518	$	8,451	$	5,964

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

	Year ended
	December 31,
	2007			2006
Income from continuing operations	$	114,163		$	29,255
Minority interest of common unitholders		1,491			418
Other income		—			(2,592	)
Gains on sales of real estate assets, net		(100,015	)		(12,881	)
Gains on sales of real estate assets — unconsolidated entities		(186	)		(482	)
Depreciation expense		66,371			65,687
Depreciation (company share) of assets held in unconsolidated entities		1,143			906
Interest expense		52,116			52,533
Interest expense (company share) of assets held in unconsolidated entities		1,760			986
Amortization of deferred financing costs		3,297			3,526
Income available for debt service (A)	$	140,140		$	137,356
Interest expense	$	52,116		$	52,533
Interest expense (company share) of assets held in unconsolidated entities		1,760			986
Interest expense for purposes of computation (B)		53,876			53,519
Dividends and distributions to preferred shareholders and unitholders		7,637			7,637
Fixed charges for purposes of computation (C)	$	61,513		$	61,156
Interest coverage ratio (A÷B)		2.6	x		2.6	x
Fixed charge coverage ratio (A÷C)		2.3	x		2.2	x

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Table 5
Computation of Debt Ratios
(Dollars in thousands)

	As of December 31,
	2007			2006
Total real estate assets per balance sheet	$	2,111,612		$	2,028,580
Plus:
Company share of real estate assets held in unconsolidated entities		91,085			41,344
Company share of accumulated depreciation — assets held in unconsolidated entities		5,149			3,864
Accumulated depreciation per balance sheet		562,226			547,477
Accumulated depreciation on assets held for sale		4,031			4,035
Total undepreciated real estate assets (A)	$	2,774,103		$	2,625,300
Total debt per balance sheet	$	1,059,066		$	1,033,779
Plus:
Company share of third party debt held in unconsolidated entities		60,959			23,449
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt (adjusted for joint venture partners’ share of debt) (B)	$	1,120,025		$	1,048,678
Total debt as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt (B÷A)		40.4	%		39.9	%
Total debt per balance sheet	$	1,059,066		$	1,033,779
Plus:
Company share of third party debt held in unconsolidated entities		60,959			23,449
Preferred shares at liquidation value		95,000			95,000
Less:
Joint venture partners’ share of mortgage debt of the company		—			(8,550	)
Total debt and preferred equity (adjusted for joint venture partners’ share of debt) (C)	$	1,215,025		$	1,143,678
Total debt and preferred equity as a % of undepreciated real estate assets (adjusted for joint venture partners’ share of debt) (C÷A)		43.8	%		43.6	%

30